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The Top 10 Principles Of Business Development

by Guy Kawasaki

Everybody’s doing deals, and lots of them blow up. Here’s how to create partnerships that work for everyone involved.

1 Ensure that the middle and bottom like the deal. It’s not the high-profile, egomaniac CEOs that make a partnership successful; it’s the people on the ground who do the work. Make sure those people buy in.

2 Build for strength, not to cover weakness. Sometimes 2 + 2 = 3, like when deals are done to cover mutual holes rather than to make combined strengths even stronger.

3 Find a champion. You need an evangelist, a true-believer who drives this agreement to reality. And it’s not that egomaniac CEO, either.

4 Cut win/win deals. Even if you can get away with it in the negotiation, every win/lose deal blows up. Period.

5 Find a lawyer who wants to do business, not prevent it. They’re a rare bird because the natural inclination of lawyers is to stop things from happening.

6 Establish the right legal framework. Now that you’ve got the rare bird, never ask, “Can I do this?” The correct direction is, “Here’s what I want to do. Keep me out of jail.”

7 Put an “out” clause in the deal. You need a pressure valve. Our natural inclination is to lock things up over time, but an out actually makes it more likely a deal will ultimately be successful because both parties know they have to keep working at it.

8 Explain it to a woman. Forget the sexist, politically-correct rap. It doesn’t mean “your spouse,” it means a woman. Men think that making deals is the modern equivalent of killing a mastodon with a flint spear. They want to close the deal, but women have better judgement when it comes to picking mates.

9 Don’t expect people to do something you wouldn’t do. The biz dev equivalent of the golden rule.

10 Don’t form partnerships with people who have two or more of the following characteristics:

- drive a German car
- have a goatee
- use cologne
- wear Armani suits

“You think I’m kidding. You’re laughing,” said Kawasaki. “I know the difference between correlation and causation, and I’m telling you with 100% certainty there is a 100% correlation that it will not work.” Who can argue with the numbers?


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Developing Win-Win Joint Ventures

by Jay Abraham


I prefer to think of joint ventures in terms of what I call a host-beneficiary relationship. In essence, you serve as a "host" introducing someone else's complementary and appropriate products or services to your customers--preferably under your express endorsement.

You can do this in many different ways:

First, you could send out a letter offering the product or services to your customer or clients. Then you could follow that letter with a phone call. If you can't do this because you don't have the people, time or money, then get the company whose product you're endorsing to do it for you.

A second possibility: Let representatives from the beneficiary company set up a table, booth or desk in your office--or let them make sales rounds with your salespeople.

Or you could put out a promotional announcement or sales letter about the beneficiary's product or service in packages or statements you send out. Or you could allow the beneficiary company to share exhibition space with you at trade shows, or in ads.

Here are some examples you'll recognize: Allstate insurance booths at Sears stores. Offers for electronic goods and watches tucked in with your charge card bill. The FedEx logo and add-on shipping offer with catalog pages.

I promoted this newsletter through endorsements to different people's mailing lists. I can go on, but I'm sure you get the general idea.

You can set up a host-beneficiary deal in one of two ways--depending upon which role you're playing. We assume that you are the one who'd be introducing customers, clients or patients to someone else's product or service.

But, of course, the exact opposite works just as well. You can get tons of businesses and professional people to endorse you and your product/service to their clientele. It's easy.

Start by identifying the businesses with products or services most compatible and suitable to your customers. Next, contact the owner, president or general manager of the targeted enterprise. Introduce yourself, explain that you've spent X years and Y amount of money developing goodwill with your customers.

Then explain your assumption that the target company's product would bring great value to your customers. Ask enough questions to figure out whether or not the product or service is a "one shot" or has a back-end component. If it's a one shot, offer to split profits or sales (splitting gross sales is always preferred) with them. If it's got a good back end, try and get all of the front-end profit and even some of the back end.

Value and respect the real worth of your endorsement to your list. Keep control. Have the orders and even the money--if appropriate--go through you. Also, maintain quality control on the product, promotion and customers. Stipulate when going in that all resulting customers are your proprietary property and cannot be resolicited without your written approval.

Put all of this in writing. Once you've made the deal, don't do things too big. First, test small to make sure the hosted product sells. If it does, offer it to all your customers. If it doesn't sell, the problem could be the choice of product/service, or it could also be your execution on the endorsement. Find a different product or service and try it all over again.

If you don't succeed at first, it's no problem. Keep trying until you hit pay dirt. The first time you tap into your goodwill with your customers or clients by endorsing something--sales should shoot to the moon.

The Flip Side

When trying to become the product or service being endorsed, the opposite applies. Find a target company that already has your desired customers as its customers. Approach the company. Tell the owner/president/manager that you believe they have enormous untapped wealth stored in their goodwill with their customers, and just because they haven't fully tapped into it doesn't mean they shouldn't.

Then walk them through a deal that lets you keep from 50%-75% of the profits or gross--depending upon what you're able to negotiate.

Tell the targeted host company that you'll do everything, for them, but that they will retain 100% approval over what you do, how you do it and what you say. In essence, give them all of the control, none of the risk and up to half the rewards.

Here are a few of the profitable joint ventures that I have engineered over the years:

- I got one of the largest financial newsletters in the industry to
create a special bonus eight-page interview with me to promote my
Protege-Training Program. It produced two million dollars in
profit.

- I got a business-opportunity company to recommend my program to all of their unsold prospects. That sold $250,000.

- I got a famous best-selling author to endorse one of my client's
financial services. That sold $20 million.

- I got the largest magazine of its kind to endorse one of my other
client's financial investments.

A karate school owner persuaded a local gym to help him get started by letting him use their space for a fee. The only problem: the karate school was so successful, and grew so fast, that it had to move to larger space in a new location!

Please try to approach at least two host/beneficiary prospects as both beneficiary and as host. Let me hear from you once you set the deals up. We'll share a bunch of actual first-hand stories in a future issue.


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This resource is (c) 1996 by Jay Abraham, a renowned marketing expert, and is taken from the "Jay Abraham's Business Breakthroughs" newsletter. Find thousands of resources to help you in business, on the World Wide Web at Smartbiz.com, http://www.smartbiz.com and at
Jay Abraham's web site - www.abraham.com


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Here is a link to great articles on networking... Enjoy..!

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Develop Your Business Networking Skills


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One of the biggest reasons why many businesses are struggling today is simply because they DON'T Ask For The Business..!

Today, we have sourced a few articles that deal with this subject from different perspectives... Enjoy..!


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Let's Do Lunch

by Dave Mattson

In today's environment, the cost of acquiring new accounts has skyrocketed. Studies over the years have shown that selling additional products and services to an existing client base can be more cost effective than spending time in new client development. With existing accounts, we have already absorbed the cost of acquiring the business. Our existing client base would utilize more of our services if only we had the foresight to ask for the business. Yet, we seldom ask.

So, how should we bring up the subject? One of the most successful ways to do this is to take your client to lunch. This enables the buyer-seller relationship to change. Inside the office, your client has a role to play and many demands to meeting. Inside the restaurant, you can focus on selling the additional business.

Follow these suggestions for a successful business lunch with your client:

Thank your client for the existing business. Tell the client you appreciate them. Let them know they are an important part of your business, and you will strive to maintain the partnership.

Review the history of the account with your client. The Sandler Selling System teaches us to have the client do the review. Ask for input as follows:

- How long have you been doing business together?
- How satisfied is the client with your services?
- How does the client feel you could improve your service, and in what areas?
- How receptive would the client be to giving you a reference letter?

Most successful salespeople have a book of reference letters. Instead of extending the sales cycle by having a prospect call your existing client, you can pull out your reference book for immediate review. A reference letter enables your client to put their thoughts and feelings into concrete form. If your client has trouble putting thoughts and feelings into concrete form, it's helpful to go over the letter with them.

Ask what expectations your client has for the upcoming year. Ask how much business they have given you thus far. Then ask, "Based on where we are in the year and projects that you have going on internally, where do you think we will end up at the end of the year? What additional business would I be involved with?" Get that number. Use it to help forecast sales and check that reality with the number in your account plan.

Ask for a list of other upcoming projects or purchasing decisions happening. This will expand the scope of your business. Often, your client does not understand your full line of products and services. By having your clients explain what is going on internally, you can use your product knowledge to decide how to best apply it, and where.

Ask your client for the names of other people working in other departments within his/her company. Ask for the names of those in charge of purchases and projects within the scope of your expertise.

You will experience tremendous outcomes following these suggestions. The client will feel that they are an integral part of your business and are in partnership with you for the future. Asking for a reference letter from them makes them feel important, too. Furthermore, you will have a clear picture of what is ahead and a good roster of outside referrals.

Good luck, and bon appetit!

Al Simon is President of Business Development Improvement, Inc., an authorized licensee of the Sandler Sales Institute and a sales training, coaching and consulting group. 770-281-9090.

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The Sales Corner - Closing The Sale

by Tony Murray

The biggest mistake that I see in my travels with sales people is that they fail to ask for the order. I think this is because they are afraid of the rejection. They are frightened that they will reach the end of the road and no means no.

They could not be more wrong. When you ask for the business the right way whatever answer you get gives you the opportunity to find out where the sales person needs to strengthen their presentation. It actually opens up the presentation; it does not close it down, so let’s look at some ways to ask for the business.

The Alternative Close.

This is my favorite. It’s easy to use and it does not give the buyer the opportunity to say no. For example, “Will you use your 800 number or will you use ours?” It is difficult for them to say no to that question. You might get an answer like “If I go ahead with this I would use my own number.” Ok the buyer has not made up their mind yet and the sales person has the opportunity to find the hidden objection and continue the sale.

The Summary Close.

In this one the sales person summarizes the points that have been agreed during the presentation. For example,” We have agreed that you like the concept, and it will increase your sales. It is a cost effective way to improve your customer service and it will take the pressure off the in house phones, so shall we start to fill out these customer service forms?” If they say no to this, then the sales person should say “There is obviously something that I have not covered properly. What is it that you are you unsure about?”

Again in this presentation the “no” is to filling out the forms immediately leads into a continuation of the sale and a search for the hidden objections.

The Fear Close.

I don’t really like this one but is used particularly when there is a special timed offer coming to closing date. “I really have to sign you up today if you want to get the special discount.” Again if there is a negative answer then the good salesperson will use it as an indication that they have not covered all the benefits successfully and should try to uncover the hidden objection.

Assumptive Close.

This is commonly used by confident sales people like its name says the sales person assumes that the sale is made. For example, “I think I have covered all the points let us fill in this customer service form. Do you have call forwarding? Etc.”

You will see that all of these closes make it difficult for the buyer to say I am not going to buy or close the conversation. Generally they will open the door for further discussion and allow the salesperson to search for more hidden objections.

There are very few occasions that the buyer wants to ask for the product. It is the sales person’s responsibility to ask for the business. To hang around waiting for the buyer to say they want the proposition is both wishful thinking and time wasting.

One final word of advice: Once the buying decision is made and the order is received then do not do any more selling politely leave as soon as possible. Sales can be lost by innocent remarks made after the sale.


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Tony Murray has been involved in the communications service industry for the past 25 years. He has first-hand experience of all aspects of call center management and profitability. For the past 10 years as a consultant, he has worked for major corporate call centers as well as with the service industry. This year he is running a series of sales courses for the industry. Contact him if you would like one held in your area.

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Marketing Professional Services

by J. Poznak

In this article, I’ll share with you my experiences in marketing my law practice along with some suggestions.
Rely On Yourself

Although I’ve been practicing law since 1979, I did not start to try to develop my own clientele until 1986. Before then, like many young lawyers, I worked for someone else and relied on that person to keep me busy. In late 1985, some of the partners at the firm where I worked left and took a lot of business with them. This event made me realize that my income and my future would be most secure if I could rely on my own clients for work, rather than on my boss. In other words, your future depends on you.

Ask For The Business

As my first step in seeking business, I went to the owner of one of the firm’s largest clients, for whom I had handled many matters. This client had already elected to give all of its business to the departing partners. However, figuring that I had nothing to lose, I asked the client if I could have some of its business. To my astonishment and delight, he said "sure." The entire meeting took less than five minutes. Since then, I have continuously handled work for that client. So remember, ask for the business.

Become Well Known

After my success in asking for the business, I soon realized that I could never be hired by people if they do not know that I exist. So, I decided to become visible. I joined the local chamber of commerce, where I became active in committees and worked hard. Through my contacts in the chamber, I met many potential clients and sources of referrals, some of whom offered me the opportunity to lecture at several community colleges. Over time, these contacts have generated significant amounts of new business. In other words, become well known.

Be Alert For Opportunities

You really never know when or where an opportunity will arise, so you always have to be on the lookout. For example, I am a contributing editor to a business publication called Svoboda’s Home and Business. I became involved with Svoboda’s after I saw an issue at a local office supply store. After reading the issue, I called Jill Svoboda and offered my services as a writer. It has been a rewarding experience, but I thought to call Jill because I try to always be on the lookout.

Be The Best At Whatever You Do

Of course, all the marketing in the world will fail if you are not the best at what you do. For example, several years ago, I realized that in order to be the best small-business attorney, I needed to know about the tax laws. So, I spent three years completing a graduate tax law program (while working full time), and I now spend several thousand dollars each year on a state-of-the-art computerized law library. I also realize that the little things, like prompt and attentive client communication, are so important. So remember, be the best at whatever you do.

Conclusion

Building and marketing a professional practice, or any business for that matter, takes patience and commitment. When I started marketing my practice in 1986 I had zero clients and zero contacts. Today, I have more than 330 clients, and my contact list exceeds 700 names. The security and self-esteem are well worth the effort. Good luck to all of you.

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Increase Your Business By 10% Or More

by Blaine S. Greenfield

How would you like to increase your business by 10% or more? Guaranteed! The first time I heard such an offer, many years ago, I was skeptical. But that was before I learned Murray Raphel's "Four-mula for Success."

It sounded logical, so I decided to give the approach a try. And the results have been phenomenal: in fact, my business has increased an average of over 16% for the last 9 years!

I am confident that your business, too, will have a similar increase in sales if you put Raphel's ideas to work. All you need to do is give me the time to read the rest of this column, then 15 minutes a day for the next year.

That's all. If your business does not increase the minimum of 10% that I guaranteed earlier, I'll give you a free one year subscription to any business magazine of your choice with no questions asked. Just drop me a note at the Mercer County Small Business Development Center.

However, I should tell you that I am not planning to give out very many subscriptions, as I don't think this will be necessary. Raphel's ideas work, as evidenced by the fact that he travels over 200,000 miles a year throughout the United States, Canada, Europe, and the Pacific Basin to both meet with clients and serve as a keynote speaker at international conventions.

What follows are the four things you need to do accompanied by examples that apply to almost any small business. You can do any one of them four times or you can do each one separately. The key is to make your daily total equal four.


1: Make four phone calls a day.

These four calls don't have to be of the "cold call' variety, either. It is a real pain to have to call people out of the clear blue sky, so don't bother. Instead, make these four calls to people you know.

If you are a DJ and have a regular job at a club, call the club owner to thank him or her for having used you over the years. Or if you just did photography for a wedding, call the couple a few weeks after they return from their honeymoon and ask them how their trip was. (Naturally, also thank them for hiring you; in addition; you can use this opportunity to get some feedback on how you did. And make sure you ask for some names of friends and relatives that you might contact about future jobs.)

This all might sound basic to some readers, but if it isn't for you, then try the idea. Just think: When was the last time somebody called you to say "thanks" for something you may have bought? I bet this hasn't happened very often.

To cite another example: I once had a tooth removed by a dentist, and he called me up that night to see how I was doing. I was in a lot of pain, but I still remember the call and how pleased I was with the fact that the dentist cared enough about me to give me a call. Needless to say, I'd never go to another dentist.

You might already be noticing that my examples involve lots of different situations. The reasoning behind my choices all involve some form of business when you think about it, and as I like to say, "Business is business." This is true whether we're talking about a musician, photographer, or even dentist, and it applies to situations in bother Mercer County and the rest of the country.


2: Write four letters a day.

Whenever I tell this to a seminar group, I hear many groans. Somebody then inevitably asks me, "Do you actually do this? And, if so, how do you find the time?"

Let me answer the second question first: Yes , I do this every day of my life. However, I don't write four letters a day. I usually write many more. As to how I manage to find the time, I can best answer that question with one of my own: How can anybody not manage to find the time? If the success of your business is not worth 15 minutes per day, then maybe you shouldn't be involved with a small business.

Incidentally, the letters I write are not formal masterpieces. Often, they aren't even typed. Sometimes, they are just a few lines I jot down on a postcard.

For example, I send out over 300 birthday cards a year -- including one to each of my clients. People like getting remembered on their birthdays and will often call be back, after they get their birthday greeting, to thank me. This works for me, and it will work for you.

I read a great deal, but even if I didn't, I would make sure that I at least read the local paper. A travel agent thus could read about clients (past, present, and even future) who have good things happen to them; for example, the birth of a baby or a job promotion. When you see such notices, clip them out and send them to your client with a handwritten note to the following effect: "Thought you'd like another copy of the attached for your scrapbook. Lots of luck." Make sure you also sign the note, as well as include your business card.

Or try this other suggestion that works for me: Be on the lookout for other items of interest for your clients. If you know that they like fishing, then clip out of some magazine an article about fishing that you think they might like to see. Or if you feel this article might be helpful, make a copy and send your client the original. (You, of course, will want to save the copy.) In addition, if I see a cartoon that I think clients might find amusing, I send or fax them a copy.

I'm often asked to give my opinion about newsletters. They can be acceptable, but what I'm suggesting is even better. In effect, you're creating a personalized newsletter for your clients. You care about them, and it shows. Your cost will be minimal in comparison to your return.


3: Give out your business card to four new people your meet.

Most small business owners I encounter have business cards, but what I find amazing is that they don't always have them in their possession. (I'm often told, "it is in the car" or another such place.) Starting today, carry your business cards with you at all times. Regardless of where you carry them, though, let me make a suggestion: Carry several in your wallet. What I do is to put an old one in both front and back of several new ones, so that the new ones always look fresh.

It is not enough just to carry your cards. You must give them out. Next time you go out to a restaurant, tip the waiter or waitress a generous amount, then clip your tip to your card with a brief note that might read as follows: "Enjoyed your service. By the way, if you're ever in need of a (fill in your type of business), give me a call."

Every time you take a bus or fly a plane, give your business card out to all you meet. Leave it in motel and hotel rooms. Some dry cleaners and office supply stores have racks to display business cards. Make sure your card is in such racks. And check them to make sure they are not in need of a refill. I like the one salesperson who uses his card as confetti at football games. It doesn't matter which team scores. What counts is that all those nearby will know that the salesperson was at the game.

Lastly, don't forget to use the back of your business cards. You can do this in either two ways. One approach is to give out your card, then just before it is accepted, ask for it back so you also can include your home number (on the back) just in case the person needs to reach you in an emergency.

Many clients tend to be impressed by this. Another approach, the one I use, is to use the back of my card for other useful information. It could be the guarantee that you offer. Or in my case, I include several important phone numbers including those of Bill Clinton, Boris Yeltsin, and Blaine Greenfield.


4: AFTO--Ask For the Order.

When you meet people, they will often say what kind of business they are in, but for some reason, they are reluctant to ask for the business. Don't be shy, you have nothing to lose.

For instance, if you ever take a course or attend a seminar, make sure you introduce both yourself and your business. Then give a brief commercial plug and say something like this if you are in the desktop publishing business: "In addition, we make up great menus for restaurants. If anybody is looking for somebody to do this, see me at break, and I'll tell you about a special offer we are making this week."

Or how about this situation: Have you ever made a proposal or given a price quote, only to never hear again from the person? If that has happened to you, then I contend you are at fault. If you want the business, it is your job to call back the person. Then keep calling until you have an answer.

(Once, I called back seven separate times for a job that I really wanted. I got the job. Other people might think that pushy, yet I felt that I had nothing to lose. Even if you don't get the job, the process can be worthwhile, as you then should ask: What can I do to improve my chances in the future?)

Let's see. We've talked about four contacts a day. Multiply that times 250 days (giving you some time off for vacations) and that comes out to 1,000 contacts that you are most probably not make now.

This "Four-mula for Success" works. All you have to do is begin using it--like now. Isn't there somebody you could call or write before you do anything else?


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Fundamentals Of Building A Business

With over 50% of all new businesses failing, there’s got to be a better way. Building a successful business is certainly difficult. It’s fraught with problems over sales, capitalization, and poor management, says Charles F. Goetz, adjunct professor of organization and management and a distinguished lecturer in entrepreneurship at Emory University’s Goizueta Business School. Goetz is a successful serial entrepreneur, and he, along with Michael E. Axelrod, a small business investor and guest lecturer at Goizueta, have penned a new book titled The Great Entrepreneurial Divide: The Winning Tactics of Successful Entrepreneurs & Why Everyone Else Fails.

In their new book, the pair explains to business owners what it is that successful entrepreneurs do that their less successful siblings don’t. In a recent interview with Knowledge@Emory, Goetz discussed the many pitfalls that entrepreneurs face and the ways to spur long-term growth in the midst of the day-to-day chaos inherent in running a business.

Knowledge@Emory: You’ve been an entrepreneur. What industries have you worked in and why? Does the industry stand out or the customer need?

Goetz: I’ve had nine separate ventures—in the technology and service industries, specifically in the financial industry, sports market, employment classifieds, and health care. The one key to all of them was that I identified a significant problem in each of these markets, and then I went about to solve that problem using a combination of market research and creativity.

Knowledge@Emory: Do you think there is a personality that’s better attuned to being an entrepreneur?

Goetz: While there is never a rule about anything, there are certainly people who are better at being “serial entrepreneurs.” Interestingly, every year I bring in a number of successful entrepreneurs into my classes at Goizueta to present to my students, and almost all of them have one thing in common—the ability to do a number of things at one time well. Successful entrepreneurs frequently are not experts in any one thing, but they are capable of being the chief, chef and bottle washer all in one. Interestingly, they frequently are not the ones who got the A’s in all their classes, but as a rule, they’re the most creative ones.

Knowledge@Emory: Your book reminds entrepreneurs to never underestimate the importance emotions play in building a successful business. Can you elaborate?

Goetz: There are many studies and research on this end, certainly. But entrepreneurs don’t always understand how to deal with these things. People simply do not understand that psychology is more important than financial analysis and accounting in building a successful new business. Building and running a successful business requires both business acumen and an in depth understanding of what drives customers, employees, and themselves. It’s about the right combination of forces working together. With employees, for instance, there’s often this “us vs. them” mentality. But your company is only as good as your weakest link, and less successful entrepreneurs don’t understand the importance emotions play in every part of a successful business.

Knowledge@Emory: Today, metrics are an important part of starting a business and understanding the consumer. How do you ferret through all of this data? Can’t it be overwhelming?

Goetz: Most successful entrepreneurs get to a point where they feel comfortable enough with the information they have that they are able to make a decision. That’s usually all it takes. Because big companies usually take two to three times as long, at a minimum, to make the same decision a small business can, the small venture can start their business and make their first sales before even the big business competitor has made up its’ mind to go into the market or not. You certainly have to do the homework though, especially as it relates to generating sales. Contrary to common belief, the number one reason most new businesses fail isn’t because they ran out of money, it’s because they were unable to generate the sales numbers they projected. You have to figure out how to pare down the information to understand what really drives your customers and the market. You can’t know everything. You will have to stop, at some point, all of the analyzing, and just start doing. After all, it’s the doing that makes the money. It amazes me how many entrepreneurs lose track of this. Making things happen is the name of the game for new businesses. That’s why successful entrepreneurs are doers.

Knowledge@Emory: Isn’t there often ego involved for the businesses that fail? You mention the blind spot on buying and selling—when the entrepreneur falls in love with their own product and their customers simply don’t.

Goetz: You have to understand why people buy. I am just amazed by how often I see first time entrepreneurs who have failed, blaming their customers for their failure. “They just didn’t get it. If I only had more money, I am sure I could get them to understand.” It’s a mystery to me why people build businesses and don’t even take the necessary time to make sure that customers are going to buy their product before they build their company and open their doors. Sure, some of it’s ego, but I believe most of it is due to not knowing better in the first place. After all, that’s one of the reasons why we wrote the book.

Knowledge@Emory: So how much does marketing play into all of this? Certainly, marketing is key today.

Goetz: Most entrepreneurs, or what I like to call “serial entrepreneurs,” are often people who happen to have strong marketing and/or sales backgrounds. Consequently, these are people attuned to the marketplace.

Knowledge@Emory: Your book reminds would-be entrepreneurs not to get mired in the day-to-day problems in the office or on the manufacturing floor, in order to grow the business long-term. Why is this often a problem, considering people are taught to develop business plans, vision statements, and long-term initiatives?

Goetz: Yes, it’s commonsense. But there are ways to do things, and there are ways in business to make things work better. It seems so simple, but people start the business and then they simply don’t understand why things aren’t selling. That’s where having an entrepreneur who can move in a number of directions is valuable.

Knowledge@Emory: It seems the figures on business failure remains high. What are the failure rates like these days?

Goetz: The statistics are horrible on failure—higher than 50%. Then there are those people who “sort of go into business”—those people who are working from home and who aren’t counted in that first number, and then we’re talking about an 80% failure rate if you factor in these more informal at-home businesses into the figures.

Knowledge@Emory: So what would you tell business owners to focus on? You bring up core concepts of priority and value. Can you elaborate on those ideas?

Goetz: I would definitely tell entrepreneurs to focus on the concepts that we mention in the book, like priority and value. For example, one of the most important things that we mention is that new businesses are much more likely to be successful with a mediocre product that satisfies a high priority market need than they would be with a top of the line product that only satisfies a mediocre market priority. It’s hard enough to sell to customers. A high priority solution is vital to making this as easy as possible. Also, value is the relationship between a product’s benefits and its price to customers. Usually when there is a high priority need for a product, there is a lot of competition. The way you beat competition out is through value—if your customer perceives your product delivers more value than your competitors do for them, they will buy it, and if not they won’t. If they buy, you’re on your way, and if they don’t, it’s closing time and lights out.

Knowledge@Emory: Some of the examples in the book you mention are successful products that build on this idea—for example, the iPod from Apple. While it’s a lovely invention, you note that it’s a simple little invention at the end of the day, correct?

Goetz: Absolutely! The iPod wasn’t that different from what was already out there. But Apple made incremental changes, making it more user-friendly. You don’t have to change the world to be very successful. Often, you just have to do it a little bit better.

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