Six ways to keep your business alive

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NEW YORK (CNNMoney.com) -- Starting your own company is a big challenge, but staying positive could be an even bigger struggle.

No matter what kind of business you have, if you are not committed to a "failure is not an option" mindset, you are setting yourself up for failure, says Neil Anderson, president of The Courage Group, a consulting firm for entrepreneurs.

Indeed, only two-thirds of new small businesses survive at least two years, and just 44 percent survive at least four years, according to a study by the U.S. Small Business Association.

To avoid becoming another start-up casualty, the right mental state is crucial.

So when the bills begin to pile up, and clients or customers are few and far between, don't be tempted to throw in the towel. Instead, keep your mind and mission on track.

Anderson offers these tips to help stay out of the failure trap:

Go mental. One of the most important elements to starting a successful business is being mentally prepared. Of course, skills, actions and good old-fashioned luck are also important factors, but it all begins with the right frame of mind.

To that end, stay away from people who are negative and may try to bring you down. Anderson admits that he fired his own girlfriend in the early stages of building his business, because of her pessimistic attitude (the relationship didn't work out either).

She would say things like "you used to make so much more money working for someone else," Anderson explained.

People can be negative simply because they are jealous that you had the courage to follow your own dream, not just talk about it, Anderson asserts.

Virtual reality. Although there will be many ups and downs, a light does exist at the end of the tunnel, and it is bright. By visualizing success, your actions will become more confident. And increased confidence breeds success.

Anderson advises entrepreneurs to think about why they started a business in the first place. Perhaps going back to work for someone else is not an option. In that case, just reminding yourself of the alternatives: being at the mercy of others controlling your life, playing corporate politics or reporting to incompetent bosses should be sufficient motivation to keep your mind right.

It's all about sacrifice. A big component of the "failure is not an option" mindset is knowing that certain personal or financial sacrifices will need to be made along the way in order to achieve your dream. Entrepreneurs who have made sacrifices and prospered did so because they realized early on that starting and building a great company comes with a price.

Risk is not a four-letter word. Keep in mind that success comes to those who recognize risk, are unafraid of it, and will execute on their ideas. If you are risk-averse, your chances of business survival will probably be slim.

"I cashed in all my chips, my 401(k), whatever I could... I was willing to bet it all," Anderson said of his consultancy firm, which he got off the ground in 2001.

A hungry dog hunts better. "My father said that to me at the outset," Anderson said. When clients or customers are few and far between and money is tight or nonexistent, successful past and future entrepreneurs will always find a way to drum up another sale.

When times get tough financially, you really have only two choices: decrease your expenses or increase your revenues.

A roadmap will lead you to success. A business plan, which is a written description of what you are going to do and how you are going to do it, is the entrepreneur's roadmap. It forces you to think about the entire operation and come to terms with the businesses strengths and weaknesses. Entrepreneurs who do their homework increase their chances for business success.

"Don't look at it as a hassle or burden, look at it as an opportunity to survive," Anderson said.

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Immigrants big in tech startups

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SAN FRANCISCO — Foreign-born entrepreneurs were behind one in four U.S. technology startups over the past decade, according to a study being published today.

Duke University researchers estimated that 25 percent of technology and engineering companies started from 1995 to 2005 had at least one senior executive — a founder, chief executive, president or chief technology officer — born outside the United States.

Immigrant entrepreneurs' companies employed 450,000 workers and generated $52 billion in sales in 2005, according to the survey.

Their contributions to corporate coffers, employment and U.S. competitiveness in the global technology sector offer a counterpoint to the political debate over immigration and the economy, which largely centers on unskilled, illegal workers in low-wage jobs.

"It's one thing if your gardener gets deported," said the project's Delhi-born lead researcher, Vivek Wadhwa. "But if these entrepreneurs leave, we're really denting our intellectual-property creation."

Wadhwa, Duke's executive in residence and the founder of two tech startups in North Carolina's Research Triangle, said the country should make the most of its ability to "get the best and brightest from around the world."

The study comes nearly eight years after an influential report from the University of California, Berkeley, on the impact of foreign-born entrepreneurs.

AnnaLee Saxenian, now dean of the School of Information there, estimated immigrants founded about 25 percent of Silicon Valley tech companies in 1999. The Duke study found the percentage had more than doubled, to 52 percent in 2005.

California led the U.S., with immigrant entrepreneurs founding 39 percent of startups, though they make up only 25 percent of the state population.

In New Jersey, 38 percent of tech startups were founded by immigrants, followed by Michigan (33 percent), Georgia (30 percent), Virginia (29 percent) and Massachusetts (29 percent).

Washington had a relatively low rate of immigrant-founded startups (11 percent), the study found.

Saxenian, also co-author of the new study, said the research debunks the notion that immigrants who come to the U.S. take jobs from Americans.

"The advantage of entrepreneurs is that they're generally creating new opportunities and new wealth that didn't even exist before them," Saxenian said.

Researchers started with 28,766 companies classified as technology and engineering companies in Dun and Bradstreet's Million Dollar Database, which lists companies with more than $1 million in revenue and at least 20 employees.

They were able to reach senior executives to determine the backgrounds of key founders for 2,054 of the tech startups.

Immigrants were most likely to start companies in the semiconductor, communications and software niches, least likely in the defense sector.

One of the study's biggest surprises was the extent to which Indians led the entrepreneurial pack. Of an estimated 7,300 U.S. tech startups founded by immigrants, 26 percent have Indian founders, CEOs, presidents or head researchers, the study found.

Indian immigrants founded more tech startups from 1995 to 2005 than people from the four next biggest sources — United Kingdom, China, Taiwan and Japan — combined.

"People who come from India are laser-focused on technology," said Rosen Sharma, who immigrated from India in 1993 and is CEO of software company SolidCore Systems.

"They come here and they learn to tell a story and paint a vision. Once you have those two things, you're off to the races."

The Duke researchers also found that foreign-born inventors living in the U.S. without citizenship accounted for 24 percent of patent filings last year, compared with 7.3 percent in 1998.

Without permanent citizenship, inventors are more likely to take valuable intellectual property elsewhere — and U.S. companies would have to compete with them, Wadhwa said.

"The bottom line is: Why aren't these people citizens?" Wadhwa said.

"We're giving away the keys to the kingdom. This is a big, big deal once you figure out what this means for [our] competitiveness."

Copyright © 2007 The Seattle Times Company

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How To Be A Better Animal Or Is Capitalism JUST A SCAM?

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Man, it’s like deja vu all over again.

There are a ton of marketers making a ton of money, both online and offline right now… selling pure, uncut crap.

Nothing new about this. Back when the first caveman discovered the art of salesmanship while convincing another caveman to buy his old cave for a slab of mastadon meat… the next transaction to happen was probably a scam.

Like maybe trying to sell a fake cave. Or a cave with a bear sleeping in it. “Oh, didn’t I mention that bear? Sorry. And no, you can’t have your slab of meat back.”

The thing is, our capitalistic system allows for rapid financial reward regardless of whether you’re selling quality goods… or crap.

That’s why there’s never really been a truly “free” market. The moment someone with any power got scammed, laws were written and scofflaws were tossed into newly constructed hoosegows. (Did you know, by the way, that the early European settlers in New England didn’t have anything resembling a jail for over a century? One colony tried digging a pit, but the prisoner escaped. We’ve come a long way, now with more folks per capita behind bars than any other civilized nation on the planet. Just something to chew on…)

Anyway, when you’ve been around business as long as I have — and I’ve been around a loooooong damn time — then you start to notice certain things that keep happening.

Like, for example… the cyclical return of the predatory multi-level marketing monster.

I’m not gonna name the current MLM goop out there, cuz it’s irrelevant. If it wasn’t this particular recipe of selected tangy herbs and zombie-ized crap, they would have found something else.

I’ve lived through three or four of these cycles. Lots and lots of money is made by some folks, and the buzz on the goop gets so hot that eventually stories appear in all the major magazines. (The same stories, pretty much, too. “Is this stuff for real?” the writers ask, all agog at the money and perplexed about the claims. God forbid they do any actual research on the goop…)

During the last go-round — in the late ’80s — the company behind that particular goop even bought a huge skyscraper in Los Angeles, and was drawing up plans for world domination just before the roof caved in on them. (MLM health-goop crashes happen just like the Dot-Com bust seven years ago — suddenly, taking whole groups of people down in financial chaos… and later, when the dust settles, it all seemed so obviously dumb…)

So allow me to set you straight here, in case you’re a little unclear on the concept: When it comes to maximum health, there are just 3 factors.

1. Good genes.

2. Good living.

3. And good information.

I hate to bust your bubble… but there ain’t no magic concoction out there that will cure your ills and make you live forever. At best, you may be coaxed away from your bad lifestyle, and introduced to the fundamental nutrients you’ve been avoiding, which may help a lot. (Amazingly, leading an unhealthy lifestyle actually contributes to ill health!)

At worst, you will be engaging in the power of suggestion and placebo… which also can work wonders for someone who strongly believes in magic.

In the end, however, if what you desire is good health and long life, you need to get hip to your body’s schematic. For every uncle you had who lived to 101 guzzling whiskey and chain smoking, you’ve got to factor in the four other relatives who dropped dead at 40 from heart attacks. That’s infomation.

Good living can be defined however you like… but in the end, it has to translate to being a better animal. Exercise, eating well, indulging in a full life… we all slack off on the things we intuitively know can make us happier and healthier. So stop it.

Pot-bellied grouches die early. Smart, fit, upbeat people have a better shot at becoming Rip Van Winkle.

Finally, if you need a little magic to make sense of the world, then by all means go for it.

Whatever floats your boat.

But please — don’t fall for the scams.

Right now, the money flowing into that huge multi-level marketing monster roaming the country is just shocking.

So listen carefully: This type of magic elixir comes around like clockwork every generation.

And here’s how it works:

The goop is irrelevant. It could be (and sometimes has been) pureed compost heap. (The term “snake oil” comes from the common mid-18th century potions made from fermented rattlesnake heads and alcohol. Yummy.)

The ingredients do not matter.

What does matter… is the pitch…

…and the choice of marketing organization.

The easiest way to generate a lot of money, fast, is to use the multi-level organization. I swear to you that many of these guys set the organization up first… and THEN go looking for some goop to plausibly fill the minor role of “product”. (They stay with herbs and “natural” ingredients to avoid the wrath of the FDA.)

MLM success is based not on actually selling the product… but on convincing others to sell it for you. So you sit at the top of your own private pyramid, doing nothing but cashing checks, while your minions scurry about below either hawking the goop… or creating their own little pyramids of sub-sellers.

And you get a piece of all the action filtering up through your seat on the pyramid.

Most level-headed people, upon hearing of how the MLM scheme plays out, pause.

The organization seems to defy a basic law of the marketplace — if the goop is really as good as the pitch says it is… then why is the emphasis not on selling it, but rather on getting other people to sell it for you?

To go into the logical curli-ques of the MLM pitch would take many pages.

Because, after the organizational set-up, the next most important part of the scheme is the pitch.

And, when done right, that pitch will exhaust your brain, murder your intuition, and leave you believing that black is white. Reality and fact be damned.

It’s only job is to generate enthusiasm. Enthusiasm for all the money you’ll make, so fast and easy, coupled with your new ability to live forever by guzzling this delicious new goop.

Whatever the goop is.

Doesn’t matter.

MLM is all about the suspension of belief… so, in your fevered excitement, you begin to believe that YOU — yes, YOU, among all the people who have sought it from the dawn of time — have been chosen to be among the blessed few to finally — FINALLY — discover the Fountain of Youth.

And you deserve to made rich for doing so.

You may as well join a cult. Because the brainwashing will never cease, and you are in for a ride that will not end until you are forced to face reality again.

Some people will get rich. That’s a given — it’s the reason the “snake oil” miracle remedy has been part of civilization since cockroaches decided to partner up with us.

We all want that simple, easy answer to our problems.

We all want magic in our lives again.

We really, really, really want it.

And we’ll PAY for it, by golly.

MLM schemes have a half-life of many years. Unless they are careless — and a good organization will avoid saying anything in their pitch exposing them to easy prosecution — they will not be brought down by any legal action. You can’t legislate the yearning for magic.

Mostly, they just peter out. Some hang around in the shadows for generations.

Hell, some even have some half-way decent product to sell.

But if you’re paying someone, who’s paying someone else, who’s paying someone else, etc., for the right to sell your share of this wondrous goop to friends and family… then you’re not the rebel marketer you believe you are.

You’re just part of an MLM organization.

Hey, for some people, it’s a way to dip their toes into the business world, I suppose. Maybe a way to make a few extra bucks. (Though studies confirm that the average MLMer never makes back their initial investment.) (Which they probably paid to a relative, or someone at work.)

The thing is… you gotta get clear on how you define “success”.

If all you care about is making money, then go smuggle drugs. Tons of cash in that line of work.

If you want to have a legitimate biz, then strive to make it a good one. And watch who you’re learning from.

Just know this: There are mobs of marketers out there earning boatloads of money… selling crap. Not just the MLMer’s, either.

If your chosen mentor or teacher bases his pitch to you on the idea that he has made a lot of money, then do a little digging. Especially now, with the globalized reach of the online business world, it’s EASY to make a bundle selling shoddy, screwed up goods and services.

Because, again, the product often doesn’t matter. The pitch hits your hot buttons… and the organization attaches an umbilical cord to your wallet and starts siphoning up money.

Look for quality. Look for honesty, integrity, and a product that does what the pitch promised.

You can admire an organization’s ability to round up a herd of prospects, and a pitch’s masterful way of harnessing cash.

But you don’t have to admire the people behind it all when they’re selling crap.

We live in a world filled with illusion and greed and clever thieves.

Watch your ass. And skip the goop. Go buy a blender and some cheap but good protein powder, eat more fruits and veggies, and get off your butt more and go do stuff that makes you sweat.

No one’s gonna live forever.

And if you truly desire to get rich, you can do it with your head held high, selling quality products and offering damn good services.

I shouldn’t have to keep reminding you of this, you know…

Stay frosty,

John Carlton, http://www.marketingrebelrant.com/

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