Turn Rejection Into Momentum

Don't allow the fear of rejection to stop you from taking risks.

written by Romanus Wolter

Entrepreneurs are trailblazers, risk takers. As such, they understand that rejection becomes part of any business routine. Even in good times. As the economy tightens, small-business owners are finding that negative responses are getting more frequent. But don’t let rejection keep you from moving forward; instead, use it as fuel to accomplish even more.

To succeed, you have to possess the confidence to embrace rejection as part of the give-and-take of your business strategies. When you are not the winning bid on a deal, investigate your business processes to improve your chances the next time. Do not let negative feelings associated with rejection affect your ability to manage and grow your business.

Developing a positive attitude in spite of rejection is a habit you must work on. The best way to start is to go for deals even if you feel you may not win them. Completing the bidding process helps you figure out new ways to present your products to different entities. Do not let the fear of rejection stall your initiative. Remember four important points about being rejected:

1. Rejection is not personal. Rejection hurts because of the meaning we assign to it. A negative response can indicate that you were selling to the wrong audience or not conveying the right message. Salespeople who take rejection personally lack perseverance, and they seldom make the sale. People can reject your idea, product or service for any number of reasons, but they are not rejecting you as a person.

2. Learn from failure. Every project you undertake provides numerous opportunities for feedback that can improve future prospects. Losing a deal is part of conducting business. Immediately take responsibility and identify what worked and what can be improved. Ask about their biggest reason for rejecting your proposal and how you can improve in future negotiations. Was the customer looking for different benefits? A more detailed pricing structure? Did requirements change? Then, work with your colleagues to design new methods to correct that issue.

3. Reframe rejection into a new opportunity. The passion to win deals is an important aspect of being an entrepreneur. If rejection occurs, go for what I call a double no. Circumstances and requirements constantly change, so treat any no as a maybe. Analyze your prospective customer’s responses, conduct more research and develop an innovative method to help him achieve his goals. For instance, you may specialize in a particular piece of the project. Develop a new proposal aimed directly at your area of expertise and resubmit it.

4. Be adaptable. No matter how mature your business is, there will be challenges. Be willing to adapt your proposals with new information you cull from your rejections and successes. Treat each rejection as practice for winning your next deal. Share what you learn with your colleagues. Doing so will inspire them to share even more ideas with you.

Do not allow the fear of rejection to stop you from taking risks. Tenacity and persistence always triumph over adversity. If rejection occurs, use it as a catalyst to gain momentum toward your future success.

Speaker and consultant Romanus Wolter, aka “The Kick Start Guy,” is the author of Kick Start Your Dream Business. Write to him at romanus@kickstartguy.com.

Retrieved on 2^nd November 2009 from http://www.entrepreneur.com/magazine/entrepreneursstartupsmagazine/2009/october/203552.html

Late Bloomers

Retrieved on 25th November 2009 from http://www.entrepreneur.com/slideshow/200236.html

Marketing Stunts Gone Wrong

Retrieved on 19th November 2009 from http://www.entrepreneur.com/slideshows/marketingblunders/index.html

EBay Millionaires

Retrieved on 17th November 2009 from http://www.entrepreneur.com/slideshow/ebaymillionaires/157668.html

Why Stop At Just One?

written by Joel Holland

Need money to grow? Try franchising.

It seems that no matter how hard college entrepreneurs work, they always encounter the same dilemma: Big plans for growth, and a short supply of time and money.

But Nick Friedman, co-founder of College Hunks Hauling Junk, hit on a brilliant solution: Franchise your business.

After just two years, Friedman’s junk-removal company employs more than 100 students and expects sales of $10 million this year. At the ripe age of 26, he holds the title of youngest franchisor in America, after successfully franchising the business he started at Pomona College in 2004.

“It would have probably cost us about $100,000 to open up in each of the different markets that we now operate in,” Friedman says. “But franchising actually gives us a capital injection each time somebody buys a franchise from us.”

Armed with a detailed franchise plan, a heaping dose of ambition and a partner (Omar Soliman, a friend and student at the University of Miami), Friedman launched 20 franchises across the country in less than two years. “Landing the first franchisee is extremely difficult, as they are essentially taking a leap of faith,” he says. “So to sell your concept, you need some type of credibility.”

For Friedman, an economics major, that credibility came from winning a college business plan competition. “That was our main marketing angle,” he says. “When we pitched the franchise, we would leverage the credibility of being the 2004 Rothschild Entrepreneurship Competition winner.”

Then Friedman took advantage of the army of business experts at hand--also known as professors and students.

“Instead of paying a consultant to evaluate your model to determine if it is franchisable, you can meet with a knowledgeable professor,” he says. “For marketing materials, computer programming or PR, look to students taking applicable classes who will work for a fraction of the cost that companies would charge.”

When it comes time to land initial franchisees, Friedman again started right on campus: It was another student who bought the first $35,000 College Hunks outpost.

“Find fellow students who have an interest in business but don’t want to start something from scratch,” he says. “I think now, more that ever, parents are more supportive and willing to give funding to help launch a franchise.”

Retrieved on 5^th October 2009 from http://www.entrepreneur.com/magazine/entrepreneur/2009/september/203098.html

Five Ways You Will Fumble Your Pitch

written by Lorraine Howell

I've coached Forbes Boost Your Business finalists on their presentations for the last three years. Usually they send me their Power Point decks about a week before they get in front of the judging panel. We talk on the phone a bit (I live in Seattle) and I get a sense of their businesses and what they aim to do with the prize money. Later, in New York, I spend about 90 minutes face-to-face with each of them, offering suggestions, sharpening their messages and so forth. It's a rewarding experience, especially because investment capital remains so hard to come by and entrepreneurs need all the help they can get. It’s also a familiar experience at this point because I see a lot of the same common mistakes---all easily corrected. Here are the five biggest:

Starting off with a whimper. Presenters often start with their name, the name of the company, and a little history of how it started. But the panel can’t evaluate a business idea unless they grasp what the business is all about. Get to the meat of the matter quickly and grab the audience's attention. Start with a quick summary (1-2 sentences) about the problem or issue your business addresses. Or, start with a bold statement or vision, i.e. "Imagine if you could do ______. That's what our product/service will enable you to do!" Or, when applicable, tell a quick story (2-3 sentences) that explains where/how the business idea was generated. Give your audience a reason to keep listening.

Lack of focus. Young companies can't be all things to all people. If your message is too diffuse, investors may not believe you can deliver on any of those promises. Establish your ability to be successful in one area, then map out a path for growth in others--or just leave that pie-in-the-sky stuff for the Question-and-Answer session.

Data dumping. Even when they have all of 10 minutes to present, enthusiastic entrepreneurs often want to explain every last detail of their product or service. I have news for you: Investors don't care--they want to hear about results. Hence the old lament: "I asked you what time it is, don't tell me how the watch works!" Put yourself in shoes of the judges, keep it moving and stay focused on the results. (There are exceptions here. If your business is about changing an established process or inventing a new one, then by all means talk about the process. But don't drone on about every detail. Capture what you do differently, give a clear example, and move on.)

Crowded slides. People love to load up their Power Point slides, put every detail up on the screen and then read the screen verbatim. This is the road to perdition. When it comes to slides, less is more. Slides should be used to complement or reinforce your message; they should not be your primary information-delivery mechanism. You want the communication to be between you and your audience, not between your audience and the screen. Venture capitalist Guy Kawasaki has a "10, 20, 30" rule about slides: 10 slides, 20 minutes, 30-point font. Those are great guidelines.

Lack of practice. Believe it or not, plenty of entrepreneurs feel they do a better job and have better energy when they wing it. Practice saps spontaneity, they say. Hogwash. When you know your material inside and out, you have the confidence to be spontaneous and respond authentically to any curve balls from investors or a judging panel. As with Broadway performances or stand-up comedy routines, every detail of a presentation should be timed and crafted for a purpose. Practice makes perfect--it also helps you raise those precious dollars to keep fighting another day.

Best of luck to the finalists in this year's competition. I am proud of you all!

---Lorraine Howell, founder of Media Skills Training
Retrieved on 9^th October 2009 from http://blogs.forbes.com/boost_your_business/

Forward Thinkers

Retrieved on 2nd November 2009 from http://www.entrepreneur.com/goforward/forwardthinkers/slideshow/index.html