A New Series on Business Startups — Part 6

A new study shows that a great deal of time is wasted at meetings, mainly through faulty procedures, but also because many are not necessary in the first place. Add on travel time and overnight stays and it becomes essential to control the number and length of meetings you attend.

Entrepreneurs setting up a new business will find themselves attending more meetings and interviews than they deem necessary for their purpose. Similarly, small business owners are frequently asked to attend, or even chair, formal meetings. A brief summary of the rules governing business meetings will be useful here.

The chairman, or chair, is the ruling authority at any meeting. It falls to him/her to make the initial arrangements and to draw up an agenda. The main considerations will be:

* Is the meeting absolutely necessary?
* Who needs to come?
* Are they all available on the proposed date?
* What is the precise subject to be discussed?
* What will it achieve?
* At what times will it start and finish?
* Where will it be held?
* What information is required in advance?
* Are any other facilities needed, i.e. projectors, lunch etc.

The next step is to draw up an agenda. This will consider any topics that the attendees wish to raise. It will also contain:

* Place, time and date of meeting.
* Subject, or subjects, to be considered.
* Subject order for discussion.
* Other points of interest.

The agenda should be distributed in advance to all the proposed attendees at the appropriate time, i.e. neither too early, nor too late. The ideal time for distribution is not so far in advance of the gathering that the people may forget, and yet giving them sufficient time to assimilate any brief and do all the necessary homework. At the meeting the chairman will:

* Start on time unless there are pressing reasons against it.
* Introduce newcomers.
* State the purpose and aims of the meeting.
* Follow the agenda as written.
* Let the meeting flow if progress is being made.
* Sum up the arguments if they are being lost.
* Pass on to the next item if the meeting is getting bogged down.
* Not allow drama queens to dominate the discussion.
* Conclude the meeting on time if possible.

Meetings are useful in that they get people together face to face. Prevarications can be quickly worn down. Misconceptions, or areas not well defined, can be discussed, and conclusions agreed there and then. On the other hand, a badly handled or mistimed meeting may just be a waste of everyone’s time and effort.

Location, location, location is said to be the mantra of real estate salesmen. Does the same apply to starting a business? Of course, but there are exceptions to every rule and sometimes the flipside becomes the upside.

How, for example, could you start a business in the middle of nowhere, miles from what we now call civilization?

It’s not easy, but something with computers and the Internet springs to mind, doesn’t it? But what if you’re a technophobe and hopeless with computers?

Well, all is not lost. Take the amazing story of John Fanuzzi who moved from Philadelphia to Montana in 1980 with everything he owned in the back of a pickup, including his two children of five and two years of age. He was a single father and had a lot on his plate.

He’d done a bit of project managing in the past and was a skilled carpenter. His business idea was to build a company in the unlikely field of massage tables.

Fanuzzi was in this situation because he had injured his back and a doctor said it couldn’t be treated. He was cured, however, by a single visit to a massage therapist. Who says alternative treatments don’t work?

The therapist had told him that it was impossible for him to source a portable massage table for the patients who couldn’t come to him. John was so grateful for his cure, he replied without thinking, “No problem, I’ll make you one.”

He began building it in his driveway, having spent $100 on materials and costs. It was so successful, the news got out and soon orders came flooding in. The problem was, John didn’t have enough to fork out $100 for each table while it was being made. He bridged the gap by asking for a deposit of $100 for each table, then charged $185 for the completed item. Classic bootstrapping methodology. Fanuzzi was in an ideal situation. He had no overheads and lots of customers.

After the move to Montana, he persuaded local teenagers to assemble his products for piece-rate wages and even shipped them on Greyhound buses.

Later, in the 1990s, Golden Ratio Woodworks, based in Emigrant, Montana, became an established and going concern. He was doing $200,000 of business a year. His debts were almost zero and customers paid in cash.

Then it took off in more sophisticated areas of the U.S, like California and the East coast, where buyers thought it “kinda folksy” to order from Montana.

In just a few years, John Fanuzzi had built a national business employing dozens of workers. He had done it with no capital and used basic cash-flow techniques to accomplish his personal American Dream.

A New Series on Business Startups — Part 5

From time to time in this series, we’ll slot in a case study to add a sense of reality to the often academic nature of the learning curve of starting a business. Here’s one from the UK.

While still a student at West of England University, Jamie Murray Wells used his student loan to start Glasses Direct from a disused stable block on his father’s estate. He negotiated deals with the spectacle-frame manufacturers which allowed him to undercut the high-street chains in the UK, like SpecSavers, by a substantial amount.

James Murray Wells, 23, now runs a multi-million pound internet company, which sells a pair of specs every eight minutes. He has netted sales of over £2.5 million ($4.8m) in less than two years

Jamie says: “It’s an exciting time. There’s an army of people wearing my glasses every day, and that’s an incredible feeling.”

Until this young entrepreneur turned his gaze on the industry, the £2.5 billion market was dominated by four giants: SpecSavers, Vision Express, Boots and Dollond & Aitchison. Needing a new pair of glasses while revising for his English finals, he was shocked at the price.

“I couldn’t believe there was nothing cheaper than £150 ($290) for what was essentially a piece of wire and two pieces of glass.”

He began contacting glazing labs to try to get a cheaper pair direct. He was told that the cost would be around £7 and that the process was done automatically in under 20 minutes.

“The mistake of high-street opticiancs,” he says, “is that they subsidize eye tests in the hope of clawing back margins on dispensing glasses.”

He used the last £1000 ($1,950) instalment of his student loan to develop his idea.

But time doesn’t stand still in the rarified air of this entrepreneurial eagle. Looking ahead a few years he sees himself as a billionaire buying himself an island.

“I didn’t grow up dreaming of being an optician, so it’s not going to be long before I move on and attack other industries — knock the bottom out of the property industry or pharmaceuticals, or whatever.”

Go to Part 6.

What happens when a successful startup goes wrong and the original founders are dispensed with for no apparent fault of their own?

This is the entrepreneur’s ultimate nightmare — to lose control of your creation in the expansion process then find yourself dumped by incomers.

And that’s the cautionary tale of JPG Magazine, an online and print business that morphed into 80/20 publishing and subsequent disaster for its founders.

The story is told at some length by Derek Powazek (pictured), who describes himself as a thinker, designer, and writer in San Francisco.

His conclusions from the experience are :

If it’s any help to other entrepreneurs, here’s what I’ve learned.

1. Make no assumptions when it comes to roles and responsibilities. Like my dad says: “Someone’s gotta call quittin’ time.”
2. Communication between partners is mandatory. And you cannot communicate with someone who is not communicating with you.
3. Decisions aren’t decisions if you have to keep making them. Set on the course and stick to it. If you keep talking about things that have already been decided, nothing will ever get done.
4. When someone says one thing, but acts in a contradictory way, you have a choice between believing their words or believing their deeds. Believe their deeds.
5. Never let anyone tell you what you want. When someone says, “You don’t want that,” what they really mean is, “I don’t want you to have that.”
6. Don’t stay where you’re not wanted, respected, or happy. Even if it’s your company.

Read the full story here.