Proof nanoeconomics works (ha ha)

See today's "Hagar the Horrible" strip...

Nano-economics

"I think there is a world market for maybe five computers."
-- Thomas Watson, chairman of IBM, 1943

A client recently asked me why I don't get them to do market studies and projections. This staple of "start your own small business" courses to me is a waste of time and money. Literally. Why?

The "science" of economics is divided into two worlds: macroeconomics, which deals with general economic trends, and microeconomics, which deals with the consumer-producer relationship.

Economics postulates the existence of a "market", an amorphous aggregate of consumers that is measurable both in size and in intent. Through market studies and analysis, you can apparently estimate the size of a market and the proportion of it that you can capture.

I believe there are several faults with this logic:

• first that you can estimate the size of demand with any kind of accuracy. Demand is rarely latent - is is generated when the means to satisfy it appear. When the first cell phone appeared, who would have figured that grade-schoolers would be toting them? Or remember that famous remark that the market could support five or six computers, that's all?

• second, that there is any loyalty between a provider and a market. I flunked economics (an engineering elective) in university because the element that was always missing for me was how to integrate the dimensions of quality of the offer, evolving technologies (various ways to satisfy the offer) and demand creation.

• third, as a solopreneur, measuring a potential market makes no sense. For example, in Quebec, studies put the number of self-employed at around 300000 (out of a total population of 7 million). The number is most certainly underestimated, but let's go with it for sake of argument. Even if I could service 300 clients in a year through my course, at $2000 a client (which is what my clients pay now), that is $600000 a year in income. For me right now 300 clients is huge (I don't have the infrastructure), yet it is not even 1/10 of 1% of the "market". And that's not counting the clients I want to serve through teleconferences and webinars across Canada, the US and elsewhere.

Therefore, as a solo or even a small business, even if I capture only an infinitesimal part of the "market", I have more than enough business to make me very prosperous.

"A cookie store is a bad idea. Besides, the market research reports say America likes crispy cookies, not soft and chewy cookies like you make."

-- Response to Debbi Fields' idea of starting Mrs. Fields' Cookies.

And at this nanoscopic level, the laws of supply and demand of microeconomics fall apart, because the strong link between myself and my client becomes that of trust.

That's why I talk about "nano-economics" - the economic relationship between individuals. There are three basic principles of nano-economics:

1. For every combination of passion and talent, there is someone, somewhere, who wants to experience it.

2. This person can be anywhere on the planet, to find him or her I have to broadcast a message that is specifically tuned to what they are looking for.

3. Once the connection is made, the bond of trust that is created generates a loyalty that connects me to others who want to experience what I offer.

Just as in physics, where at the subatomic level, the force of gravity is overtaken by other, special forces, then in economics, at the nano-economic level of individuals making offers to attract those who are looking for precisely that offer, the bonds of trust, loyalty and even love are stronger than simply price.

By thinking nano-economics, success as a solopreneur becomes a game of communication and trust rather than "domination", market share, and price comparison.

This is why the traditional business plan concept fails at helping the solopreneur in launching their business. What the solo has to do is to master communicating who they are and what their passion is, then the right people will show up.

Someone, somewhere, is waiting to hear from you. Are you calling out to them?

Stop hiding and show me the real you!

I received a call today from someone who wanted to let me know about a new investment club they're launching in my area. Of course, as she's talking to me, I google the name of the club and see the web site. Right away, my interest turns from lukewarm to cold.

Why? Because the web page is very impersonal. Actually, it reads like a sales pitch. Even though the nice lady wanted to create a connection with me, suggesting a personal meeting so she could explain what she offers, the first impression I had from the web site was that it was another dubious pitch. Whether that impression is deserved or not, that's what I got.

I assume as I talk to people on the phone, especially a cold call for the first time, that they are going to check out my site as we talk. So the feeling my site projects has to lead to building an initial level of trust between myself and my prospect.

Here are some tips to make your web page more friendly:

• Turn your web page into a personal conversation. Instead of "we" and "us", say "me" and "you". Talk to me. Start a conversation. Make it personal, because business is personal!
• Show me who you are. Lift the veil and show me the real people behind your project. Be proud. Of course I am going to google your name and do my due diligence on you personally before I go farther. If you're calling me, I want to see your picture as I talk to you, to create that personal connection.
• Make it easy to contact you. Webforms are okay, because of the problems of putting your real e-mail address out there, but please make it a bit customized. Include a contact name, phone number, and postal address so I can see it is a real business. (And yes I do Google map the postal address to see where it really is)
• Keep it fresh. Put some content with dates. Even better (and probably easier), have a link to a blog where I can read more about the real person that is you.

I expect impersonal websites from big corporations. From passion-driven entrepreneurs like you, I want to experience the "real you"!

Instead of filling a need, fulfill a desire

It's in all the Business 101 texts: to be successful in business, all you need to do is to find an urgent need and satisfy it.

That may seem logical, however the story continues from there. Because if all I'm doing is satisfying a "need", then what happens is that I'm engaged in a race to the bottom, a direction that leads to disaster.

Say you're very hungry and you're offered the choice of a Big Mac right away, or a freshly prepared, balanced and nutritious meal two hours from now, what do you think you'll choose? Many (most?) people choose the Big Mac, but why?

It goes back to the basic Maslow's hierarchy of needs: when physiological needs like food, shelter, sex are lacking, this creates stress. And people want to relieve that stress quickly, cheaply, with the least effort and investment.

So if I aim my product or service at meeting a need, then all I am doing is relieving stress, and I have to compete with other ways of relieving the stress that are cheap and quick. No wonder MickyD's business is booming, it's not about the taste or the quality, it's about that quick hit.

If I focus on the values at the top of Maslow's need pyramid, around self-actualization, then I attract people who are motivated to seek more. A person seeking self-actualization appreciates the experience of the home-cooked, balanced, nutritious meal: they want a fuller experience of taste, they recognize the long-term benefit of nutrition, they appreciate the time and care that goes into preparing the food.

By directing my offer to fulfiling desires, it may take longer to build my business, but it will be stronger and last longer, because then I can build in other values like loyalty, trust, even love...

Focus on filling needs, and you become a commodity, where you are judged on price alone, with the winner being the lowest cost option. If you choose this direction, take your money and run, because it is very difficult to create a lasting business because you will always be fighting against slim margins to eke out a profit.

Shift to fulfilling desires, and you attract those who want more and who are willing to commit (invest) more time, energy, patience and money in what you offer. You will have fewer clients, but they pay better and are much more fun to be with.

So if you're tired of being a slave to your customers, it is time to turn conventional biz wisdom on its head. Focus on igniting and fulfilling a compelling desire, and you will work less, make more and have much more fun with people who value who you are and what you offer.

Non-verbal communication

A great example of the differences in non-verbal communication between the sexes:
http://www.arcamax.com/zits/s-392530-675958

A thought about effort

A quote I included in a response to a client today:

"Opportunity is missed by most people because it is dressed in overalls and looks like work."
--Thomas A. Edison

A stranger is a customer that you have not yet met

"A stranger is a friend you have not yet met."
-- Jim Reeves (among others)

When planning strategies to find new customers or business associates, the usual reflex is to approach people we know well: friends, family, colleagues.

But this is probably the WORST source of good contacts. Why?

First, these people know you. They have a preconceived idea of who you are: brother, mother, employee, professional. And all of a sudden, you show up with a crazy idea that you are now Mister or Miss Businessman, and you want them to buy this fabulous opportunity you are selling, because all of a sudden you "believe"? Yeah, right ... Be too pushy, and you quickly become a member of the NFL club (exclusively for those who have no friends left).

Second, sooner or later (probably sooner), you will exhaust your list of contacts. And once someone tells you no, it's much harder to go back to ask for references (and even less to ask if they have "changed their mind")...

That is why you must go beyond your circle of known contacts. You must develop the habit of approaching strangers.

The advantage of introducing yourself to someone who does not know you, is that the person has no preconceived idea of who you are. It is much easier in this case to get "in character". They do not know that you are a beginner (or experienced) in business, or that you just endured ten "NO"s in a row. For them, you are someone new, with no reason to doubt your conviction and sincerity.

And if things don't click with the stranger you have just met, no problem, what are the chances that you'll ever see this person again?

The important thing is to approach the people you meet for the first time with no other intention than simply to introduce yourself and your project. That's all. The decision to go further becomes theirs, and you've done your duty to make yourself known.

I have personally experienced the need to approach strangers. My professional and financial survival depended on it. During my last move to my present home, more than 3000 kms from where I lived my adult life up to that point, to a new city where I had no job, no contacts, no friends, no family except my old mother, necessity dictated that I start somewhere to rebuild a customer base. So I hitched up my courage to the engine of bold action, and I plunged into the adventure of meeting new people. Fortunately, the process was much easier than I thought because I could just be myself and thus attract people who were really interested to connect with me and even participate in my project.

Now my best customers and business partners, and even my best friends, all these are people I did not know before.

Banish your discomfort and step outside the circle of people you know. Go meet new people, simply for the pleasure of meeting them. Be visible, real, open, honest, enthusiastic. You will see that it is possible and fun to create an entire network of contacts who appreciate who you are and what you have to offer.

Because your best customer, and even your new business partner, is most likely someone that you have not met yet!

The speed of freedom

There is an essential dimension to the success of any business plan, and that is speed.

And it takes momentum to create this speed.

Think of a tsunami. A sudden, powerful, instantaneous change in the Earth's crust creates a wave that can travel thousands of kilometers, increasing in size, generating speed and creating consequences far in time and distance of the event that triggered the process. That's the power of momentum.

Once you have speed, building and guiding your business requires less effort. Is it not true that it's much easier to ride your bike once you have huffed and puffed and sweated your way to the top of the hill?

When your project has momentum, all obstacles or disadvantages become smaller. If you do not have good momentum, each "no" or hiccup or disappointment becomes an obstacle that grows increasingly large, undermining your progress and eventually stopping you from reaching your goal.

Building quickly is much easier than building slowly.

What is the masssive action that you need to do now? It is approaching as many people as possible in the next thirty (30) days. Approaching people not to sell them or convince them, but to simply inform them of your project and your goals. Whether they agree or not is their choice. The important thing is they know what you are doing.

And your next thirty days beginning with your activity this week. The only mass action that you must aim for is to contact at least ten people per day for the next five days - it will be 50 contacts all grouped together in a short period of time.

Speaking with fifty people in your project this week will give a quantum boost to your confidence and will break through the discomfort and hesitation that is keeping you back from the results you want. What you do now, right now, will result in sales, contracts, income and profits within 90 days or less.

The key to this strategy is the concentration of your efforts. Instead of just planning, take action. Be bold, be a little crazy, but be in motion. Banish from your vocabulary the question "how?" and remind yourself of your who, what and why.

Yes, it will require time and effort on your part. But the investment you make now, NOW!, is a good measure of your probability of success in 90 days. Because, like a farmer who wants sweet, juicy corn, you have to plant the seeds of opportunity now to be able to reap later.

To create the results you want, you must start with a big, even a massive, push to overcome the inertia of the present moment. If your effort is not sufficient, you fall back into your zone of daily results, and you always get what you've always got.

What differentiates those who succeed from those who fail in business, as in life, is the will to act boldly.

The speed of your results depends on two factors: the intensity of your work and velocity of your actions.

A rocket, to take off and reach the Earth's orbit, needs to accelerate to a speed of 11.2 km / s or 40320 km / h. If this escape velocity is not reached, everything is for nothing, the rocket will not reach its orbit and crash back to Earth.

And to achieve this speed, a rocket like the Space Shuttle needs nineteen times more mass in fuel than the empty weight of the vehicle. Half of this fuel is to lift this weight so that it rises above the launch tower. Talk about intense!

So to achieve the objectives you have set for yourself in 90 days, you must take massive action now. Consider your goal for this week and double it - and even quadruple it. Massive, intense, rapid action - that is what is needed so you can reach the speed of freedom!

What bold, massive action are you willing to take right now so that you can create the future you want?

My interview with Coach Terri Z on Coachville Caffeine

The interview with Coach Terri Z on the daily Coachville Caffeine internet radio show last Monday was a great success!

I shared with Coach Terri how business has been booming this summer for me, and conclude with two principles to attract the clients who value what you have to offer and are ready to join in!

Listen here on BlogTalkRadio
or download the podcast by clicking here