Good Idea? Bad Idea?

16 05 2008

Last week I wrote a post about why you should share your ideas, with the bottom line being “If you’re scared you’re going to get screwed, you’re never going to get laid.”  In the comments Young and Frugal, and Brazen Careerist reader JRandom prompted me with a great question, which I will answer to the best of my ability.

So what happens after your ideas get a good listen and are rejected? Do you keep pushing them? Do you modify them in light of skeptical criticism? Do you take them elsewhere? Or what?

Throughout my entire senior year in college I poured my heart and soul into a business plan with three other people.  We knew our concept was amazing, and we all still believe it to be amazing.  I’ll even give you a three word pitch on it right now: Healthy Fast Food. 

We entered this plan into a few nationwide business plan competitions and everyone loved it, but we never won.  There are many valid reasons why we didn’t win, after all who wants to invest in a restaurant concept, with low margins, run by four college kids with no experience?  These flaws aside, the biggest thing I learned from this experience is that ideas (business plans in particular) are living, breathing, and growing things; they need constant attention and you can’t get ahead of yourself.  We met with investors and executives daily to pitch and pick their brains on our concept, which would lead to us re-writing our 30 page plan and reworking our powerpoint many many times.

For us, putting the plan aside was a matter of time and money.  We didn’t have the money to put into it, all of us would be jobless upon graduation, and 2 of us were getting married a month after graduation (my wife was on the team).

At the end of the day it all depends on how you feel about your idea.  Deep down, I think we all know whether our ideas are good or if they are crap.  The key is how much thought you have put into it’s execution.  How many people you have talked to about it, talking with other people gives you different perspectives.  Someone may find a fatal flaw in your plan, but if you have the passion for your concept you can work to find a solution. 

The bottom line is that we don’t possess our good ideas, they possess us.  Once you are possessed you have true passion to keep trying, when you are knocked down, you get up you take your passion to someone else to try again.

Howard Schultz was possessed by Starbucks.  He was possessed enough to pester them until they found a place for him in their company.  He was possessed enough to move from New York to Seattle.  And when he had the opportunity to buy and grow Starbucks, he was passionate enough to spend a year trying to raise $1.25 Million.  And it was his passion for his vision that led him to pitch the concept to potential investors 242 times, just to have 217 say no.  But in the end it didn’t matter that 217 said no, it mattered that about 30 said yes.  (Source)

What happens if you are possessed by a bad idea?  I don’t know, and sometimes people do just need to learn to give up, but next time you are in a plane, reach in the seatback in front of you and read the SkyMall magazine.  It’s full of them, and it goes to show that even some bad ideas can still make some money (assuming that people buy anything out of there).





Why You Shouldn’t Be Scared To Share Ideas

8 05 2008

 

A key trait of millennials is that we love to be entrepreneurial, we love to take on new tasks, but most of all, we need to know that our ideas are appreciated or at least given the time of day. Being a millennial, these traits are some of the main reasons why I started this blog.Jumping into the workforce where all of my co-workers and bosses are Gen-X and Boomers has been challenging. On one hand it really hasn’t been difficult to impress them, but on the other hand there is no free-flow of ideas. All the people around me seem to think that good ideas can’t come from the bottom of the corporation, and that they always come from the top. Needless to say, it has been a frustrating environment for a millennial to work in.

A couple weeks ago I had a Jerry McGuire moment at work and wrote somewhat of a manifesto for the company, and I must say that it felt great. And it felt even better when I shared it with my boss and I wasn’t fired, in fact he agreed with me! He then proceeded to fall into my generalization that good ideas only come from the top.

Never forget that the free-flow of ideas is something that millennials thrive on. We can build on each other, we can help each other, and maybe some people will start to listen!

All of this takes me back to a phrase that my entrepreneurship professor taught me (one that is impossible to forget):

If you’re scared you’re going to get screwed, you’re never going to get laid.

Vulgar, yes, but it’s also memorable and true. Say you have a business idea, but you’re too scared to share it with people. Then nothing will ever happen (unless you know every aspect…marketing, development, financing…). But say you start sharing it with people, maybe a rich old guy at Starbucks wants to invest, maybe your friend knows a few people who can help you out, or maybe someone helps you build on the idea. Either way, you’re ahead!

But what if someone steals my good idea? Why do you care if someone steals your idea? If it’s your idea I hope that you will have more passion for it than someone else. Sure, greed is a motivator for some, but businesses that are looking to cash in from the start rarely do well. Remember, you can’t fake passion. Entrepreneurs with a passion and a vision are the one’s that surpass expectations. What do Google, Yahoo, Craigslist, Dell, and Starbucks have in common? They all started out with passion and visions, and all are still run by the people that put them on the map. Did other people try to steal their ideas? Yes, absolutely they did, but the people who conceptualized from the beginning have done better. Also, remember that imitation is just another form of flattery. Note: Howard Schultz was not the founder of Starbucks, but it was his vision that grew it from a few stores to what it is today.

 

 





Me?…Top 10!!??

21 04 2008

I’ve been writing a blog for about 3 months now and am very pleased and surprised to have seen my readership grow exponentially.  All of this has occurred organically by my reading and participating on other bloggers websites, and the grace of google (although someone found the site by searching for “how to ask out a married woman” today…which is somewhat bothersome and comical.  I hope he learns to haggle). 

I’d like to think I’m a decent writer, I know some of my connections may be a stretch sometimes, and my ideas don’t always flow, but I try.  Some of my posts have been much bigger hits than others, but that’s the way it goes!  I’m just thankful that people have actually found me!

Eventually Ryan Paugh of Employee Evolution found the site and invited me to be a somewhat of a syndicated blogger at his new start-up Brazen Careerist, which he co-founded with Penelope Trunk (Author of Brazen Careerist, the book) and Ryan Healy, also from Employee Evolution.  So that is what the large B on the right is for.  Brazen Careerist is an awesome site with tons of Gen-Y Bloggers covering everything from life, to money, to careers.

Now I am honored to say that I have been listed as a top 10 Gen-Y Blog by people I have never met, nor do I have any connection.  Their goal was to include marketing related Gen-Y blogs, which I am not…but according to them:

“While you are not are a marketing blog, we both feel that you are sharing something unique with the millennials, and God knows our generation needs all the financial advice we can get.” 

Amen.  They are kind of harsh to Y&F on their website though, but I must admit, I’ve been in denial, I now must own up since someone actually wrote it…my site is ugly and is hard to read (not an issue if you are subscribed to an an RSS Feed or E-mail Feed).  I will be revamping my site in the relatively near future, so keep your fingers crossed.  And if anyone is good at that type of thing and would like to help please contact me (daniel [at] this website dot com).

Regardless, I am honored to have been included on the list, and I sincerely thank Jess Neill and Ryan Stephens for including me!

Also, if you feel so inclined, I’d appreciate a vote on their site!  Or if you like one of the other blogs there, feel free to vote for someone else, Employee Evolution is on their, and I almost voted for them, but I figured a little self promoting couldn’t hurt :).





Setting An Example

9 03 2008

Everyone has a different meaning of wealth.  Some people would cite having friends and a loving family in their definition, and while most people do want this side of wealth, everyone would still love to have tons of money.  Some people publicly acknowledge it and others secretly dream about what they would do if money weren’t an issue.

Imagine this: you own a multi-billion dollar international corporation.  There really are no limits to what you can do. 

You don’t need to worry about retirement like the average person, you’ve set up a trust for college educations for your whole family, many generations down the line.  You’ve bought your beach house in California, your ski lodge in Aspen, your loft in New York City, your mansion in the Hamptons, all with matching cars of your choice, and the necessary Gulfstream to fly you to all of your residences.  Now what?  Jewelry?…eh, you’re over it.  More cars?…you can really only drive one at a time.

When does having tons of money become a burden?  When does it become a disease? You’ve done all the cool stuff that everyone dreams about, although I would really love to swim in a pile of gold like Scrooge McDuck in Duck Tails (a whoo-ooo!).

At this point you can really only do two things with your money.  1. Make more of it or 2. Be generous.  Most people (I hope) would turn to charitable causes.  I know I would probably start a foundation a la the Bill and Melinda Gates Foundation.  Yes, it’s shameless and self-promoting to name a foundation after yourself, but you’ve done well, I don’t think anyone would mind if you tooted your own horn a little bit, especially if you’ll be giving away billions of dollars.

Oh, by the way, have I mentioned that no one knows who you are?

But I have billions, I own an international company! How can no one know who I am?  I’m getting ready to start a foundation, how am I supposed to name a foundation after myself if no one knows who I am?

Because you’re smart.  You are Chuck Feeney.  You founded Duty Free Shoppers and you placed all bank accounts in your foreign wife’s name so you would avoid paying taxes.  As a result, no one knows who you are.

Fortunately for Mr. Feeney, his wife didn’t take him to the cleaners when they got divorced.  She only got $100 Million…and a few houses…and a plane.

What did he decide to do with the rest?  He gave it away, anonymously.  He founded Atlantic Philanthropies in Bermuda so he could avoid U.S. disclosure laws.  His foundation has donated to many schools and to many causes.  Upon the sale of his company, he had all of the proceeds ($8 Billion) put into Atlantic Philanthropies with orders that it all be spent by 2016.

He is now worth (personally) about a million dollars.  He takes public transportation, wears a watch with a rubber band, and lives a frugal working class lifestyle.  According to his friends he never really let the wealth get to him.

So, if he’s so anonymous, how do I know about Mr. Feeney?  Because he is allowing a friend to publish a book on him, and there is a great article on him in the Los Angeles Times.  Read it, it’s a great read.

I wanted to post this because I think many people think the goal of frugality is “live like no one now, and you can live like no one later.” While this is true to an extent you have to remember to stay grounded when you get wealthy. There is a point where money can’t buy you more happiness. Chuck Feeney has found this, Bill and Melinda Gates have found it out and Warren Buffet is the best example of this (more on him in a later post). Maybe being frugal is not just a phase in life but a way of looking at life.





The Curse of a Jack-of-All-Trades

5 03 2008

I’ve always been a jack-of-all-trades, never afraid trying to do something on my own, and always watching and learning how to do things.  I can’t help it, was raised this way. 

From a young age I pushed a toy lawn mower behind my dad as he mowed the lawn, in elementary school I spent afternoons with my grandfather who taught me about woodworking and tools as we built (yet never finished) a rocking chair, in junior high I hung out with carpenters and contractors everyday after school as they remodeled both my grandparents and my parents houses.  I was an early adopter of HGTV, yet This Old House remains my favorite home improvement show.  In high school I, like most teens, was infatuated with cars, and as a result I can, and have done just about everything on a car, short of body work.  Through all of this, I learned and did even more as I became an Eagle Scout.  I watched, I learned, I did.

I loved these aspects of my childhood, and these aspects built a foundation for me to know how to do an extreme variety of things, and as much as I love (and Mary loves) this about me, it’s a curse.

I constantly have internal struggles as three aspects of my life make it nearly impossible for me to make a decision on any variety of things.  These three things that alone are great, seem to deeply conflict each other.

  1. I’m a DIY type of guy, born and raised, for the sake of being constructive, and seeing a finished product that I created, saving money is just a bonus.
  2. I’m Frugal.
  3. I’m a perfectionist.

As the saying goes, “jack of all trades, master of none.”  I’m a perfectionist that can’t do any of the things I love to do perfectly, yet I hate the concept of paying someone when I can do it myself, but since I know how things should be done (even though I can’t do them perfectly) I monitor to make sure things are being done right.  As Fat Bastard in would say “It’s a vicious cycle.”

This internal struggle is one of the major reasons that Mary and I decided to build a new house instead of buying an older home and having projects.  We’d rather move into a house already done the way we want it than have to live with imperfect DIY project after project.

JD at Get Rich Slowly, posted an interview with Tim Ferriss, author of The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich.  I have not read the book, but in the interview the concept of a “low information diet” is brought up.  Tim explains that the people who excel with this type of lifestyle don’t overload on information.  Instead they outsource what they can, and don’t feel the need to stay caught up.  Tim calls them “selectively ignorant,” not really knowing more than they need to.  In other words, they are the opposite of me.

I am going to try being selectively ignorant because in many aspects of my life I feel that because I know how something is done, I should do it myself.  As a result I have a handful of half finished projects, and quite a few that would look much better if I would have paid someone else to do it.

What it comes down to is focusing on the things that you truly thrive in.  If you can focus on these things, and outsource/outchore the rest to others, in theory you’ll be doing quite well in your career and in your life.  This concept is one that was first brought to my attention in the book Strengthsfinder 2.0, which has the reader take a personality test and then tells you the 5 things that you thrive in, and what type of people to surround yourself with in order to be most successful.  It is a great test/book and I highly recommend it, as it was the first publication that I read which focused on strengths and not weaknesses.

I have to begin accepting that just because I can do something myself, it doesn’t mean I should. I am excited that I won’t have any large or highly visible projects once we move, and I’m looking forward to being able to focus more on what I’m good at (like looking towards the future, advising, and teamwork), and getting better at a select few things I truly enjoy but am not great at (like writing). 





2 Week Anniversary Update

9 02 2008

Young and Frugal is officially 2 weeks old today, and I haven’t provided an update, so here it goes in a very random and unorganized fashion… 

First off, I would also like to thank you for stopping by, it’s been two weeks, and I have had over 250 page views! OK, I really don’t know if that’s good or not, but celebrating this little milestone makes me feel good! I’ve also gotten a few nods on some websites from people who apparently like what they see, which is very exciting for me.

I have changed the tag-line to add business to the blog, because business is a passion of mine, and I don’t know how I could not incorporate it when writing about personal finance. Most of my business related posts will also be entrepreneurial to help keep it more interesting.

We haven’t earned any extra income that I spoke about in my first post.  But we have thrown around some great ideas that I know we will be pursuing.  I might give tutoring a whirl, and Mary and I are both going to get certified to be personal trainers, though she will make a much better one than I will.  (If anyone knows of any good personal training certification programs, please leave a note in the comments or send me an e-mail through the contact section.) 

I’ve also toyed with writing a business and personal finance column for a community newspaper, it’s something I think I’d be good at, they are my two passions, and I really enjoy writing, plus I could use it to promote Y&F. 

Another idea is my pet product that I want to develop a prototype of this weekend.  If it works for Lexi (our 2 year old Lab) I would love to see how far I can take that!  

Between writing posts, running, and working my day job, I have been able to stay very busy, which has proved to be a blessing to me.  Before I started the blog, and before I was running and working out 4+ times a week, in my spare time I would watch TV and surf (shop) the internet.  Now that I’m busy, I’d be willing to say I have definitely cut down my spending, and my mind doesn’t feel as numb! 

-Daniel 





Lessons From a Peer

9 02 2008

In college I became good friends with a guy named Garett, he was the first peer I remember looking up to, and he taught me a lot about life.  Garett was the type of person that wherever he went people would flock around him because he was such a genuine person and he was full of passion.  Through my years of being friends with him, he has taught me two very important things. 

The first is that you can’t fake passion.  You can fake any number of other things, but you can always tell when someone is truly passionate because regardless of who they are, or what their personality normally is, they will begin to talk with their hands, and they will leap out of their seat with excitement when you hit a subject they are passionate about.  Passion is just as important, if not more important, than being smart or having good business sense.  People with passion get stuff done.  They are great motivators, others want to work with them, and because they believe and are emotionally invested in something they will work harder, learn from others, and will get right back up after being knocked down.   

Passion is key in any life venture. If I weren’t passionate about my love and my life with Mary, I might still be in college, because she kept me grounded and motivated me to do well in school.  If I weren’t passionate about business, personal finance, and helping people, you wouldn’t be reading this.  And if I weren’t passionate about my need and ability to be entrepreneurial and do something on my own, I wouldn’t be planning ahead to start a business with Mary.  

The second thing that Garett taught me is to keep a notebook beside your bed, which is actually why I’m writing this post at 6 am on a Saturday (I’m definitely not up because I was out all night).  I didn’t have a notebook by my bed, I had a computer, so why not?  Keeping a notebook by your bed is brilliant because I can’t tell you how many times I have had what I believe to be a brilliant idea in my dreams only to forget it within 5 seconds of waking up.  Having the notebook means you can write down your idea and go back to sleep without having to worry about forgetting it.  So far I have two failed ventures because of this, which is better than not having any at all! 

I have had an idea for a pet product for a few months now, and I have not acted on it, for various reasons, but, after seeing something that my sister-in-law made last night, it all clicked while I was half-way conscious this morning.  Now I know how to at least get a prototype for this product developed for very minimal cost, and I could even get it done today.  That is truly the reason why I am up, and if I didn’t have a computer by my bed I can promise you that I would have already forgotten it.