Archive for the ‘Start Up Mindset’ Category

Ask Russ Darrow, Financial Thriving is A Choice

Monday, February 23rd, 2009

While driving back from a business-build appointment last week, I heard about a Wisconsin auto group that is thriving in the face of projected doom. The Russ Darrow Group held a job fair last week to hire 55 new employees. This is a car dealership.  They sell GM cars. They had their best month on record in January.  WHAT??!!   They’re hiring?  How are they hiring?  All the headlines say that we are totally sunk!  Every headline I read says we are on the verge of complete catastrophe.   How can these guys be hiring? Or thriving?!!

Don’t worry, I am not about to advocate the purblind pollyanna approach to positive thinking that seems to be rampant among the social network entrepreneurs.  The harsh reality is that we are in a very bad spot right now. If you are not convinced of this, Marc Faber has now compared the US economic system to Zimbabwe (and yes I know he makes a living spouting catastrophic prophecies) .CNBC video.   This “spend our economy back to health” concept is a bad idea.   We may not end up in hyperinflation problems to the degree Faber predicts, but a potential 12 trillion of debt with a drastically shrinking tax revenue source is a bad thing for a national economy.  We are in trouble, but we are in trouble as a nation.  Each citizen still exists as an individual, and the individual can still thrive even against the slide of the masses.

Russ Darrow is an example of individuals who create their circumstances rather than be dictated by them.  He comments that “A good sales man is recession proof” on the NPR report.  I considered how the Darrow Group’s sales people were creating success in the face of the current auto-odds, and determined that they were probably light years ahead of the average car sales-person in networking.  Every time I walk onto an auto-lot I am  besieged with hungry sales-piranhas.  I bet the good sales people at the Darrow Group are never on the lot unless they are signing paperwork.  I bet they are constantly in the community, networking, making friendships, and helping other people.  There are still a lot of people buying cars out there, there are just too many auto-dealers operating like fly traps for all of them to enjoy success.

This is how business in America is going to be for the next ten years – competitive.  In my opinion, that is good.  I am a little bit of a darwinist, however (in business, not in creation).  I think the time is coming when the nation will no longer be able to borrow enough to create its prosperity illusion through welfare and subsidies.  At that point I want to have created my circumstances and not depend upon favorable winds of happenstance.  There are people who will become much poorer over the next ten years.  There are also a lot of people who will make a lot of money as the US shakes and gyrates itself to stability now that the debt-spend and inflated asset base to its economy has disappeared.   Think about it, the media moguls are making tons of money publishing fear right now.  I prefer creators like myself and other business builders to be the ones pulling in the dollars.  I have more confidence in the real-entrepreneur to philanthropically manage his or her wealth for the benefit of the poor once the welfare tap has run dry.  Thus, my appeal is to those thinking of starting a business, or who have started a business and times are tough – you can make it.  Ask Russ Darrow.  Even in a down economy, you are the master of your destiny.

Entrepreneurialism is 90% Mental; So Don't Trash Suze Orman

Thursday, February 19th, 2009

Lets be clear, I am not a Suze Orman fan. I have never been a Suze Orman fan. I cannot stand the collar on most of her shirts (which look more like pants that she has cut the crotch out of and is now wearing on her top) and she gets a little to “girlfriend” for my liking. But, she does understand that failure in personal finance woes for most people has little to do with where the money is being invested, and much more to do with the individual’s psyche.

I read this article on MSN.com two days ago: Stop Listening to Suze Orman. It is by James Scurlock from “The Big Money”. The problem with guys like James, is that they do not understand entrepreneurialism for 90% of Americans. Let me explain:

My father was a successful pediatrician, and I thought that getting a professional degree made you successful. Thus, in 2002 I went to law school. What I did not understand was that a professional degree, while it makes you generally a better thinker, boxes you into a mode of thinking that kills entrepreneurialism. About two years ago I finally shed all the fears and the “that won’t work” concepts that higher education jammed into me and buit STARTrightllc.com. What I learned was irreplaceable. My Father was a successful entrepreneur and that made him a successful pediatrician. From the very beginning, my Father realized that if he was subsumed by the HMO’s in the state he would struggle financially and his independent life would definitely change.

Guys like James speak from the “higher education” point of reference. He picks apart Suze’s financial advice and gives examples as to how there were better options. He thinks the base of her being a useful “guru” to many in society revolves around her ability to give the right stock tip, or the right career advice. It doesn’t. Suze’s usefulness, despite her wardrobe woes comes from her ability to jazz people up (also known in the non-skeptical world as inspiring) to make life changes. These people have lived above their means, and $30K in credit card debt. At that level, it does not matter what stocks are hot, you are screwed. If you get enough people to make a real life change, and they in-turn sign your praises, it doesn’t really matter what stock you are telling people to buy.