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mistakes leaders avoid

3 Mistakes savvy leaders know how to avoid (the hot dog challenge)

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We all make mistakes but when mistakes happen to someone else, especially if we are responsible for their results, we tend to be controlling and unforgiving. Leading is also letting people make mistakes and learning from experience. The more we limit experience, the more we limit the potential of our employees.

mistakes leaders avoid

  1.  Give people a chance and they will amaze you

A few weeks ago my youngest, who LOVES to spend time with me at the BOLDFACE shop, offered to create a YouTube marketing video “to help me sell more backpacks to kids.”

Benjamin Franklin believed that the best way to train and lead someone is to put them in the driver’s seat and let them make the mistakes firsthand.

Instead of telling myself, “What does this kid know about producing a marketing video?” I reminded myself of the need we all have to try it ourselves and learn from the process. Success or failure, this was going to be a growth experience for her. I couldn’t deny her this experience.

Overnight my daughter put together a plan, including the necessary equipment, props and location. I took my direction from her and asked a friend with a nice camera to tape the production and asked another great friend if we could use his restaurant. Within less than an hour all the pieces came together and we had our shoot planned.

The morning of the taping my daughter had a storyboard sketched out and had recruited friends to guest with her on the video. Location. Check. Talent. Check. Props. Check.

The process took less than two hours. My daughter showed incredible organizational skills, confidence and composure despite it being her first time in front of the camera. I was truly amazed.

  1. If we want the best out of people, we must give them control

Jonah Lehrer wrote, “Every time you make a mistake or encounter something new, your brain cells are busy changing themselves.” Your brain recognizes mistakes and rewires itself to avoid making the same mistake the next time.

Whether it is a child or an employee, if we want the best out of people we must give them control. We must let them try, fail and try again.

Many of us have a difficult time giving up control and delegating. We make excuses to support our practices. But in the end, we do ourselves and our organizations a disservice. The more we limit experience, the more we limit the potential of our employees.

  1. Everyone makes mistakes on the path to mastery

It is part of the learning and growth process. Eventually, and after plenty of failures, the student becomes a master.

My challenge to you is to identify experiences that you are withholding from staff (or family). What experience can you provide that will create growth and improve the overall organization?

Let go and watch amazing things happen!

 

By the way, if you are interested in watching my daughter’s video you can view it by clicking the link that follows. If you do view it, please like, subscribe and feel free to leave her some feedback in the comment section. We all need feedback!

 

 

 

corporate social responsibility investors

Corporate social responsibility why investors don’t give a sh!# about it

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Today’s socially conscious businesses with corporate social responsibility programs  are not socialists nor hypocrites. We are entrepreneurs that believe that it is possible to be profitable while supporting the communities in which we operate.

corporate social responsibility investors

About three months ago my business partner and I met with a capital-raising expert to discuss our pitch deck for Boldface. We sought out Mr. Expert to get unbiased advice from someone who had successfully “been there and done that” on several occasions.

For the most part Mr. Expert LOVED our product, our business model and our team. In fact, other than some minor tweaks and rearrangement of pages, the pitch deck survived intact – with one major exception.

As he was reviewing the deck Mr. Expert came across a page that included our stakeholders. “Get rid of this section” he stated with authority. After looking at the section he crossed out I looked to my partner and noticed some apprehension. Mr. Expert wanted the portion of the pitch deck that stated that once profitable the company would make corporate social responsibility a core value.

“Investors don’t give a sh!# about social responsibility. Investors want to know how much you need, how long to break even and how before they get their return on investment,” said Mr. Expert.

We deferred to Mr. Expert and agreed to remove the statement from the pitch deck. But on our drive back to the office my business partner and I continued to debate the point. In Mr. Expert’s absence I played devil’s advocate and took Mr. Expert’s position.  I even brought Milton Friedman into the fold.

 

friedman_quote3

When I was in college I studied economics. During that time I learned about Milton Friedman and his highly controversial 1970 article for The New York Times, “The Social Responsibility of Business is to Increase its Profits.”

“There is one and only one social responsibility of business,” he wrote, “to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.” Friedman went so far as to label business executives with a corporate social-responsibility mission as socialists and hypocrites.

And while I agree that Friedman was an economics genius, I am not sure that his argument has withstood the test of time. With government funding of nonprofits strained, at best, and with public disgust over CEO pay and the one-percenters, it seems that companies with well-thought-out and sincere corporate social responsibility policies stand to gain as a result of their honest and transparent actions.

In the age of social media, access to information has been democratized and the consumer has been empowered. Through peer-to-peer reviews, instant video uploads and platforms such as WikiLeaks, businesses can no longer commit their resources entirely to the pursuit of profits.

Today’s consumer is not the consumer of the 1970s but is someone who expects more than just a product or service. He or she expects businesses to reinvest in the communities where they have earned a profit.

BoldFace nonprofits images corporate social responsibility

Consumers expect businesses to behave as good corporate citizens, hire from within the community, provide living wages and prevent environmental damage. Any business operating today under Friedman’s doctrine of profit maximization would be tarred, feathered, video recorded and ridiculed on Facebook, YouTube and Instagram.

We never put the statement back in the pitch deck. Despite our desire to use our company to benefit worthy organizations we moved forward with Mr. Expert’s advice to get the funding we needed to expand the company. That is not to say that my business partner and I were happy about it. But we understood.

But I am happy to report that earlier this month Boldface launched Boldface for Nonprofits. Through this program we partner with nonprofits, schools and sports clubs to create customized backpacks and we return 30% of the sale to the nonprofit. This program allows us to begin building longstanding relationships that will be mutually beneficial.

Mr. Friedman, today’s socially conscious businesses are not socialists nor hypocrites. We are entrepreneurs that believe that it is possible to be profitable while supporting the communities in which we operate. It’s a new world that requires a new business model…even if the pitch deck doesn’t say that much.

cash flow

Secrets to successful crowdfunding for your small business growth

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Field of Dreams (Photo by Madmaxmarchhare of English Wikipedia)

Field of Dreams (Photo by Madmaxmarchhare of English Wikipedia)

 (Book excerpt)

Ray Kinsella, a character in the movie Field of Dreams, hears a voice in his cornfield tell him, “If you build it, he will come.” The voice was telling Ray to sacrifice his time and money to build a baseball field in his corn field. Ray listened to the voice and built the baseball field despite being on the brink of financial disaster.

The advice worked for Ray, resulting in the arrival of Shoeless Joe Jackson and a team of forgotten baseball players from a bygone era. Luckily for Ray, the ball players that appeared in his corn field provided Ray with an attraction that generated the revenues necessary to keep his farm and his home.

In the business of crowdfunding, however, there is no Field of Dreams. In fact, listening to this type of advice when orchestrating a crowdfunding raise is the worst possible advice an entrepreneur can accept. Just because you create a campaign does not guarantee that anyone will take part. In most launching a crowdfunding campaign without first setting up the proper foundation will result in a complete failure.

In our conversations with entrepreneurs we find that too many of them have bought into the crowdfunding hype and believe that their success in raising the money needed to launch their business is dependent merely on setting up a crowdfunding account, telling a good story and creating a good video. In too many entrepreneurs’ minds that is all that it takes to get the money to begin flowing.

Through our radio show and on our Two Men In Your Business YouTube channel we had the opportunity to meet and interview a great number of entrepreneurs that used crowdfunding in an attempt to launch their businesses. Some were successful, others were not. Regardless of the outcome, the great takeaway we have acquired has been that it takes a lot of work to successfully close a crowdfunding raise. In fact, through our observation and inquiry it seems that assuming the Field of Dreams philosophy is a sure way to ensure failure.

Crowdfunding requires to cultivate and direct investors to your campaign.

Crowdfunding requires to cultivate and direct investors to your campaign.

The biggest fallacy is the expectation that the crowdfunding platform will find your investors. While it is true that  platforms have accumulated large lists of investors with whom they communicate on an ongoing basis about new and relevant investments, the reality is that the number of crowdfunding campaigns launched daily is so large that it all becomes noise. Investors must generally believe in you personally or your product. Most investors are not sitting around with an itch in their pocket and the need to empty out their wallets.

While an occasional investor may materialize through the crowdfunding site, successful entrepreneurs find, cultivate and direct investors to their specific campaign. Expecting the platform to do the work for you turns your crowdfunding campaign into one more investment opportunity that gets missed or ignored.

Successful entrepreneurs let potential investors learn about the players and the product well before a single dollar is contributed. Successful crowdfunding campaigns have built relationships with potential funders many months before the campaign goes live. Creating a relationship with potential funders ensures investment and encourages funders to share their experience and your product within their social network.

This chapter is focused on providing you with the information needed to set a proper foundation well before going live with a crowdfunding campaign. This chapter will guide you through the steps you should take to ensure that you give your raise the best chance of success. While there are no guarantees or silver bullets in crowdfunding, there are certain practices that improve the odds of success.

SIGN UP TO GET NOTIFIED WHEN Two Men In Your Business Guide to Crowdfunding is released in July 2015!

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Jesse Torres and Aaron M. Sanchez Two Men in your Business

Crowdfunding using social media to fund your startup

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crowdfunding money access to capital

Before crowdfunding became the ubiquitous start-up funding mechanism that it is today, most entrepreneurs were limited to reaching out to their friends and family when it came to raising money for a new venture or to grow an existing business. Thanks to the Internet, social media and the power and influence of the crowd, funding is more accessible to more people than at any time in the history of civilization. Welcome to the age of hyper-democratization of business creation.

Blogging for money Define your Product

Blogging for money: Find your product and who you are in social media

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Blogging for money Define your Product

You have been blogging for 2-3 years now and you are starting to feel the itch: Is this ever going to happen for me? Are you the top social media influencer you want to be? Is your phone ringing off the hook –yeah, outdated expression – because brands want you to represent them? In the end, are you making the money that helps to build the life you dreamt for yourself –and those you care about?

If any of your answers to these questions is NO, then you can start reading. We spoke about having an approach to build a business with your blogging ability instead of just blogging as a hobby or a way to express your passion.

Are you blogging for money or as a hobby? Let us know how we can help!

You can read:  Your blog a hobby or a business: Action plan to blogging for money

 

Let’s be clear: The first ingredient to be successful in social media is to have and show the passion

Influencers vs brand ambassadors - Courtesy of Zuberance and Convince & Convert

Influencers vs brand ambassadors – Courtesy of Zuberance and Convince & Convert

for the “thing” you do. I started LatinasinBusiness.us for one main reason: to leave my legacy as a Latina business owner to thousands of Latinas who are just at the gate, or struggling with their businesses, and help them avoid the obstacles, barriers and problems I encountered during my 25 years of being in the USA.

When I talk to someone just starting their business, or someone who is thinking of a business idea, so many suggestions come to mind that then –and only then- I realize I have come a long way.

It is not necessary that your passion make you money; however, if you want your passion to become your full-time activity and, unless you have won the lottery or belong to a wealthy family –yeah, I didn’t think so–, then you would like to have that income that rewards your passion coming in steadily. After all, we live in a society that leverages success with economic value. It is up to you to define what that equation means to you… but that is another story.

For now, let’s keep the focus on the topic today: defining who you are by defining your product.

If you are writing a blog, your first idea of product is your writing, right?

Well, let think a little: a product is, by definition, a tangible or intangible “thing” manufactured or refined for sale, meaning, someone has a need you are fulfilling with that “product.” So here are your options:

  1. What do you write about?

Writing about your morning, your dog, or the way rain is making you feel can be your passion but… yes, there’s always a but: if you want to make money out of it, then you need to “refine” the product. Maybe your “thing” is to write fiction –a novel, an essay, poetry or any other intangible that fulfills the intellectual or artistic pulse of your audience. Your task it then not only to become the best at what you do but also find someone who believes your product will make them money, and become your publisher. And voila, now you are a fiction writer and you defined your product.

  1. Is your knowledge your product?

You have been writing about a bunch of topics: lifestyle, fashion, education, Latino culture, makeup, a little here, a little there, bringing in followers, maybe local people who know you or your writing, but you are really aiming at having brands contact and hire you to represent them or speak on their behalf. However, is your writing really catering to someone’s need? The only way to find your niche is to become an expert at certain products you love and write about.
Stick to your point but… yes, again… with a strategy. Your expertise is your passion and your passion becomes your expertise. Is it makeup? Then aim at the products you really, really like! That eye shadow, or this moisturizer. Concentrate on a line of products, become a true expert and tell it like it is –followers or fans do not want to be lied to, they prefer the truth as the rest of us, mortals. Even brands like to hear about things they want to improve –if said in a friendly, expertly way.

Ted Rubin

Ted Rubin, social media guru, father of the concept Return on Relationships

Product reviewers can make a nice living by concentrating on a line of product or a series of related products. Cars, technology, shoes, knock-off purses, the devil is in the details: the more you know, the more you will become the sought-after expert in that particular type of product line. You have now become an “influencer,” as your opinion counts towards that knowledge people are looking for.
Build a relationship between the products you prefer and the brands that manufacture them, while building trust among your customers. Open yourself to questions and pledge to always tell the truth –even if that is not glamorous; become their best adviser/social media friend. As Ted Rubin says, success is now all about Return on Relationships (ROR).

  1. What is a brand you cannot live without?

You are a recent mom and you have discovered that only certain brand of products work for your baby’s sensitive skin; or your child has special needs and you want to tell the world about an organization that has helped you through these tough times. Any place you go, any person you talk to knows about your passion for that particular brand. You have now become a “brand ambassador” without even knowing it.
While influencers are people whose opinion count towards the knowledge or expertise they have about a certain product, service or line of products, brand ambassadors are those who engage customers and turn them into potential customers. Some people are both influencers and brand ambassadors, or go from one to the other, however, you can have influence over your target audience who follow you for your opinion but not necessarily buy the brands you suggest. Keep that in mind when you approach a brand.

Lorraine C. Ladish at Hispana Leadership Institute Conference in Dallas, TX

Lorraine C. Ladish, top Latina influencer, at Hispana Leadership Institute Conference in Dallas, TX

  1. Do you have tangible products to sell?
    What about selling your own product? Do you have a talent for the arts and crafts? Do you manufacture something of your invention? Or can turn some product you buy wholesale into a retail business?
    Many small businesses have started on E-Bay and many people just make a nice extra income by re-selling products on the side. Blogging about your product, your art, your interest can help you tremendously to turn those followers into buyers. Blog about the use and duration of the product, how you found the product and decided to manufacture or sell it. Tell stories about your family, friends or acquaintances and their experiences using the products. People not only like to know who you are but also get ideas on the products you build or sell that might help them make a decision about their own needs.
    We used to go to the store for shoes and have someone fit our shoes, tell us about the quality of the leather, have a nice, personal conversation about the shoes and how that color or this shape will go with this or that outfit. Have this same type of conversation with your customers online. In a world where everything tends to be impersonal, having a friend talking frankly about their needs and how to cater to them can go a long way.

 

Kathy Cano Murillo_summer_2009_crafty_chica1

Kathy Cano-Murillo, Craftychica.com

Keep thinking how to define your product, the basic starting point to then delineate your elevator pitch, and the rest of your business. Tangible or intangible, knowledge or expertise, you product needs to take your potential customer’s pain away. Defining your product would also help you know your role in the social media world, and devise a strategy to get there. We’ll talk about writing your elevator pitch next time.

Let me know if this article was helpful! We will keep posting on the blogging for money topic, just let us know what your questions or concerns are!

Exit strategy for Selling your business

Start today your exit strategy to sell your business successfully

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Exit strategy for Selling your business

 

In his book,  The Seven Habits of Highly Effective People,  Stephen Covey said, “Begin with the end in mind.” Covey worked to facilitate the achievement of personal and professional goals through a systematic approach that resulted in the creation of a step-by-step guide.

By beginning with “the end in mind,” Covey tasked his students with establishing and envisioning a goal and then working backwards from that goal, one step at a time. The result of the exercise was the creation of a road map that provided the necessary elements to successful goal achievement.

Most business owners envision an exit for their business. For some, the goal is to own a business that provides a comfortable living and that can one day be passed down the family tree. For many, however, the goal is more straight-forward: build a business, sell it, make a reasonable return, and do it again.

Now that the economy appears to have stabilized…somewhat, many longtime business owners that survived The Great Recession are giving thought to cashing out. Unfortunately, many of these entrepreneurs are finding themselves depressed as they discover that their companies are not worth what they thought.

On May 14, 2014, I had the opportunity to interview Matthew Winefield, President of Winefield & Associates. Matthew joined me on my//  NBC radio show to share his experiences as a consultant to business owners seeking to sell their companies.

There are many ways to value a company. There is the Asset Valuation Approach (what are the assets worth). There is the Liquidation Value Approach (how much can I get in a fire sale). There is the Market Value Approach (how much did similar companies get). There is the Income Capitalization Approach (how much is the company expected to earn in the future). And there is the Income Multiplier Approach (how much does the company make multiplied by some industry factor). While each approach is logical and can produce a rational value, by and large, the most common approach to valuing a company is the Income Multiplier Approach.

The Income Multiplier Approach takes the business’ net income, adjusted for owners benefit (add back owner’s salary, owner’s benefits, interest payments, depreciation and deduct capital expenditures) and multiplies it by an industry factor. The factor, usually expressed as a range (e.g., 3 – 5 times), is multiplied by the adjusted net income number to arrive at the value.Exit strategy for Selling your business

According to Winefield, the process is far from precise. Many factors may affect the multiplier. For example, lower sales can lower the multiplier along the range. Niche businesses can raise the multiplier along the range. And other similar factors can have an effect. An experienced consultant with strong familiarity of the particular industry can provide a business owner with a realistic sense of the multiplier.

Business owners that seek to exit their business some day through a sale should begin the valuation process as early as possible. Winefield stated that many times he must deliver an unexpected wake-up call to business owners when they realize that the valuation of their company is nowhere close to what they thought.

Winefield stated that business owners should conduct valuations early in their business’ life to find out where they fall relative to their exit “goal.” This tactic can provide the time to implement a strategy to achieve their goal. An early valuation analysis will provide the business owner with the metrics (e.g., sales, net income, etc.) that must be acheived to bring in the desired sales price.

At the end of the day, a business is ultimately worth what someone else is willing to pay for it. But given the general acceptance of certain valuation methodologies, a seller is always best served by being aware of the values derived through these methods.

Embrace life even when it sucks

How to embrace life even when it sucks

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Embrace life even when it sucks

 

“Life is difficult. This is a great truth, one of the greatest truths. It is a great truth because once we truly see this truth, we transcend it,” wrote M. Scott Peck in his book The Road Less Traveled. “Once we truly know that life is difficult – once we truly understand and accept it then life is no longer difficult.”

I recently ran across an old professional acquaintance. I originally met this person around 15 years ago. At the time he was on a professional trajectory that I figured would get him to retirement by 40. To be completely honest, I was a little jealous of him at the time and I recall frequently comparing myself to him to find out what made him so much more successful.

I lost touch with him for many years as he moved onward and upward. Several years ago we reconnected on Facebook. Unlike me, he is not a social media freak. As such, I didn’t learn too much about his personal life other than information gleaned from the occasional post – usually made by someone else.

Read:    10 Inspirational tips from successful people

After a networking event not too long ago I bumped into him and we decided to grab a drink. I wasn’t planning on sticking around after the event but I figured I would wait out Los Angeles rush hour traffic with a glass of cabernet.

In speaking with Joseph (not his real name) I learned that he had in fact done very well in the 10 years or so after I lost touch. He became a “player” in his area of expertise. He made a lot of money and was a known entity.

Unfortunately, like so many, he became a victim of the Great Recession. His business was flattened and after so many years he found himself standing on the ground with the rest of us.

It had been a few years and Joseph had not recovered his mojo. After hearing his story and the manner in which he conveyed it I could tell that the recession affected not only his business portfolio, but also how he viewed himself. His entire self-worth was tied into his business success. This was probably because all he had experienced was one success after another.

At this point I would be lying if I didn’t say that the conversation was making me completely uncomfortable. Sitting in rush hour traffic was sounding better and better. I was not Joseph’s close friend. I don’t consider myself the “touchy feely” type that likes this kind of stuff. All I could think about was my wife’s words of wisdom to me when she has a similar moment – “I don’t want you to solve my problem. I just want you to listen and acknowledge me.” So I did.

After Joseph was done sharing some fairly heavy stuff he asked for my advice. I really wasn’t prepared – nor trained to give advice. I was actually a bit shell shocked. But I managed to offer the two bits of advice:

  1. Life Is Difficult. One of the few memories I have of my high school theology class was a book by M. Scott Peck.

“Life is difficult. This is a great truth, one of the greatest truths. It is a great truth because once we truly see this truth, we transcend it,” wrote Peck in this book The Road Less Traveled. “Once we truly know that life is difficult – once we truly understand and accept it then life is no longer difficult.”Something Wonderful Is About To Happen

I’ve had some pretty high highs and some pretty low lows. At times I have equated my life to a roller coaster. The one thing that has kept me from going insane, and what I thought Joseph needed to recognize is that Life IS difficult.

Life is not supposed to be a linear upward ride of success and good times. It just doesn’t work that way. Some people, like Joseph, have great extended periods of success. Others have more typical ebbs and flows. Regardless, if we are to remain sane in business, and in life, we must acknowledge that system is made to challenge us.

Once you understand how the game of life works then setbacks are not viewed so much as failures but instead they are just a part of the game. And while setbacks may not be fun, they are normal – even with the most successful business person. So long as you are upright and in the game you have another shot at success and scoring another point.

  1. It’s Another Day in Paradise. If you have ever worked with me or met me somewhere and asked me, “how are you?” chances are 99.9% that you have heard the following response from me: “Another day in paradise!”

I’m not sure at what point I picked up this habit. But I have become known as the Paradise Guy. Every day that we wake up we have a choice. We can make it a good day or we can make it a crappy day. Which would you prefer?

Back in May 2014 I wrote about the importance of smiling when making sales calls, whether in person or on the phone. The concept of emotional contagion generally states that good vibes create more sales. As such, the key to a day of productive sales calls begins with the right attitude. On top of having more sales or a more productive day, who doesn’t prefer good vibes over bad vibes?

Today, regardless of how tired I am, how much stress I am under, how well or how horrible the day’s events have gone, it’s just Another Day in Paradise. And that seems to help.

 

At LatinasInBusiness.us we thank you for your support!

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2015 HH

We are rapidly approaching the end of 2014, another amazing year of new dreams and a great realization: Our LatinasInBusiness.us made it to you screen!

We never expected the support and the following was going to be as overwhelming as it is!

So we wanted to thank you, all our followers, our readers, the organizations that have become or will become our strategic partners, the Madrinas and Padrinos of our Editorial Advisory Board, and all who have done their part in helping this project take shape.

A special thank you to:

Luis O De la Hoz

Luis O De la Hoz

Pat Munoz

Pat Munoz

Patricia E. Munoz for her unconditional support and friendship. Without her, our photo galleries and videos would not be possible.

Luis O. De la Hoz, for his constant support, knowledge and advice, that helps us grow in every way possible.

Lorraine C. Ladish, for sharing her knowledge and becoming my mentor in social media.

Jesse Torres

Jesse Torres

Lorraine C Ladish

Lorraine C Ladish

Jesse Torres. our also unconditional contributor who tolerates my copyediting with so much grace.

 To the Statewide Hispanic Chamber of Commerce of New Jersey for their continuous support to our labor.

To all the chambers of commerce that have participated this year sharing their announcements with our readers.

To OUR LIBIZUS, for sharing their stories and their business information with our followers, and for sharing the joy in social media.

And to all of you who have supported this effort, this “penny project” that just continues to grow at a staggering rate. We are ready to hit 4000 followers before the end of the year. Watch out, 2015, here we come!

SusanaThank you, thank you, thank you!

Susana G Baumann
Editor-in-Chief
LatinasInBusiness.us

 

Ten Thirty One on raising 2 million in Shark Tank money

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Today Show resident Halloween expert and Ten Thirty One Productions (TTO) CEO Melissa Carbone on set before joining Kathie Lee and Hoda.

Today Show resident Halloween expert and Ten Thirty One Productions (TTO) CEO Melissa Carbone on set before joining Kathie Lee and Hoda.

By Jesse Torres

The last scariest news in zombie fads, zombie walks, zombie videogames, zombie movies, and zombie-you-name-it has landed on Melissa Carbone, owner of Ten Thirty One Productions, who walked out of the Shark Tank program with Dallas Mavericks owner Mark Cuban’s $2 million in exchange for a 20 percent equity stake in her entertainment company.

The latest obsession in escaping reality, zombies, has gained public interest in different parts of the country while generating profits to the Hollywood and Wall Street fat cats’ pockets worth around 5 billion dollars in DVD sales, video games, comic books, novels, costumes, merchandise, conventions and even zombie art, NBC News reports.

Carbone, who is the winner of the largest Shark Tank deal in the show’s history, shared with me the key characteristic of a true entrepreneur during a KCAA Money Talk interview last week.

“The biggest bridge between those that succeed and those that don’t is simply activation; people who activate win,” Carbone said.

“Everyone on the planet has ideas,” she continued. “Everyone has an idea for something. A lot of people have amazing ideas, million dollar ideas. But if you don’t activate on them, they go nowhere. They become nothing. And it does not even matter that you had an idea.”

Consultant Rasmus Lindgren echoed a similar sentiment on his blog, “You need to take action and do stuff. Nothing ever happened from just thinking or talking about it.”

“Two traits most commonly identified across successful entrepreneurs are innovation and motivation,” Kara Finnegan wrote on Big Think. “Innovators bridge the gap between ideas and action.”

But as Robert Kiyosaki points out on the Rich Dad blog, success requires more than action for action’s sake. “Lots of people take action and the result is that 9 out of 10 new businesses fail. There is more than just action required to make you an entrepreneur.”

Kiyosaki urged entrepreneurs to have a clear vision of what they aim to achieve and a strong mindset so that they won’t be deterred by the first sign of trouble.

MelissaCarbone_MelissaMeyer

Ten Thirty One Productions CEO, Melissa Carbone and Creative Director, Melissa Meyer.

Fear and deterrents prompt some prospective entrepreneurs to view activation as too risky. Fear of failure scares them from acting on their billion dollar idea.

“Making a mistake is not a bad thing,” entrepreneur Neil Patel declared on the Quick Sprout blog. “You actually learn from those mistakes, which helps you make better decisions down the road.”

Indeed, as author Bruce McDaniel explained in Entrepreneurship and Innovation: An Economic Approach, “entrepreneur” was used in France in the 18th century to describe the very act of risk taking.

“Entrepreneurs do what they do because they want to, because they believe they need to, because they feel something must change, because they know their actions are required to make that change,” Larry Robertson stated in A Deliberate Pause: Entrepreneurship and Its Moment in Human Progress. “They believe they simply have no choice. Their conclusion is ‘if not me, who?’”

The following three tips can help you take action on your ideas and overcome the fear that may be holding you back.

  1. Do the right amount of research.

“The larger knowledge you have about the specific topic related to your action, the larger self-confidence you will have,” consultant Dragan Sutevski wrote on the Entrepreneurship in a Box blog. “If the knowledge for the specific problem that needs to be solved with your entrepreneurial activities is larger, the solution will be much more easier.”

Shark Tank contestant Carbone founded a horror-based immersive entertainment company after receiving a jaw-dropping number of trick-or-treaters at her horror-themed home one Halloween. If she could get hundreds of visitors to her home with some creativity, how much traffic could she drive if she put in professional time and effort?

According to Carbone, she spent several days researching the concept and within a very short time frame launched an enterprise that yielded a $2 million investment from Shark Tank’s Mark Cuban.

“To succeed as an entrepreneur, remember to guard against making critical decisions based solely on emotion without considering relevant information,” Entrepreneurship.org has advised. “Analyze the situation, make the decision, and take action with confidence in your decision-making and planning abilities.”

  1. Don’t fear failure.

“Brains are overrated when it comes to achieving great results,” Lindgren wrote. “Focus on doing and building things of value. Most mistakes and changes are more often than not easily fixed.”

Successful entrepreneurs know that success doesn’t necessarily reward the smartest or most intelligent. Success comes to the action taker. Successful entrepreneurs are smart enough to know a good idea when they think of one and sharp enough to put together a strategy that works.

They may not qualify as brain surgeons or rocket scientists but they know how to execute plans, get things done and beat Einstein to the punch.

Carbone encouraged risk taking, saying, “Don’t be afraid to fail as long as after the failure you reflect and try again.”

  1. Act promptly.

“Activate when you have the idea because if you have the idea today and you do not activate today, I guarantee somebody else is going to have that idea tomorrow and maybe that person will activate,” Carbone said.

Have you ever watched an ad or found a product at the store and said, “Hey! I thought of that!” OK, so you did think of it. But so did someone else. In the world of entrepreneurship, having a great idea only gets you so far. You must act on it or lose to the competition.