I was recently asked by a reporter to share three key pieces of advice in regard to how small business owners can best deal with failure like a new product that flopped or an employee that did not work out. The advice I shared is as follows
First, realize that failure is a critical part of the learning process. When you succeed, you tend to repeat your actions. You don't change. You don't think about it. You don't try to improve - you just do the same thing over and over. Failure allows us to improve. Failure forces us to think about what we did and to learn from that experience. Each failure has within it seeds allowing us the opportunity to become a better decision maker. All people need failure to improve. It is the way we learn.
Second, you must separate the failure of a project from failure as an individual. Just because the project or the employee was a failure, it does not mean that you are a failure. There must always be a separation between the event that did not work out and the personal sense of worth. The difference can be summarized in 'It Failed' verses 'I Failed'
Finally, realize that you cannot control everything. We constantly strive toward perfection. We want to be perfect. But the world does not work that way. We cannot control the lives and decisions of our employees just as we cannot control competition or the economy. It is important to remain humble in our approach to the world and realize that things will happen that are out of our control. All we can control is how we react.
Colin Powell probably said it best when he said - "There is no secret to success. It is the result of preparation, hard work, and learning from failure."
Have a great March.
Founder of The Educated Franchisee
| Another Improvement in The Franchise Business Index (FBI) |
WASHINGTON, Feb. 19- The Franchise Business Index (FBI), an index of the economic health of the franchising industry, which supports 18 million workers in 825,000 establishments across America, increased by 0.7 percent in January as nearly all components of the index showed improvement, the International Franchise Association announced today. The index rose to 109.7 (Jan 2000=100). Compared with January 2012, the index was up 2.1 percent.
"The uptick in January is reflective of the pent-up demand for growth felt by many franchisors and franchisees who held back on investments in the second half of 2012 because of the uncertainty surrounding the Fiscal Cliff," said IFA President & CEO Steve Caldeira. "With permanency in tax rates, albeit higher for some small business owners, and steadily improving credit conditions, combined with low interest rates and less expensive commercial real estate, we expect the franchise industry will add over 10,000 new establishments and 162,000 new jobs this year. Franchising could create even more new businesses and realize additional growth and job creation with pro-growth comprehensive tax reform and spending cuts."
Go to IFA, Click Here
Franchising Benefits From the Fiscal Cliff Deal
he fiscal cliff deal was good for franchises because it kept income tax rates from increasing for most Americans.
The fiscal cliff deal, which was reached Jan. 1, extended low tax rates for everyone except individuals making more than $400,000 and households making more than $450,000. Keeping income taxes on most Americans from going up appeared to have a positive impact on the franchise industry, even though some franchise owners were hit with a tax increase, and payroll taxes went up for consumers.
The franchising industry also is benefiting from "steadily improving credit conditions, combined with low interest rates and less expensive commercial real estate," Caldeira said.
IFA expects the franchising industry will add 10,000 new establishments this year to the 825,000 already in operation. Franchises are expected to create 162,000 new jobs in 2013 -- on top of the 18 million people they already employ.
Go to Washington Bureau, Click Here
| Business Loans Surging and Banks Aggressively Compete for Business.
Go to Wall Street Journal.com, Click Here
here is a renewed willingness by some banks to lend cheaply and on flexible terms.
So-called commercial and industrial loans were up 4.4% in the fourth quarter and 16% for all of 2012, according to data compiled by research firm SNL Financial of Charlottesville, Va.
The push comes at a time when many banks have been flooded with deposits as slow economic growth and low interest rates crimp investment. Domestic deposits since mid-2008 have surged 29% to $9.06 trillion, according to Federal Deposit Insurance Corp. data.
"Banks are loaded with liquidity and starving for growth," said Paul Miller, an analyst with FBR Capital Markets. ....
| Stories and Advice From 10 Entrepreneurial Couples
ight from the very beginning, we worked well together solving complex problems," Casiello said, and that's proved invaluable over the past 18 years as the couple built a relationship, then a marriage, and later a thriving dry cleaning business in western Maryland. The Casiellos now own four ZIPS Dry Cleaners locations in Prince Georges County, and Theresa has said she hopes to eventually take their business nationwide
So how have they managed to balance marriage and business in a single relationship?
The secret, they say, is playing to their respective strengths.
"We are very different individuals with our own unique set of skills," Theresa said. "We are equal partners, but from the beginning, we had a clear delineation of duties and management within our departments. Still, we understood we needed to work together as a team." ...
The Educated Franchisee
|The Franchisee Workbook|
There is a reality in life. Greater knowledge drives better decisions and better decisions reduce business risk. Franchising is all about risk reduction but not all franchises are low risk. Our books are designed to empower you. By following the advice and guidance presented in our books you will recognize high quality franchises and confidently pass over those that are not.