I decided to close this blog down and move on from the blogger platform. This was a great test for me in blogging, not only to see what post types work well, but just to gauge my general level of enjoyment. I always liked writing but wasn't sure how I would feel about an unknown audience reading my articles. Turns out I like it. Perhaps I'm just shouting into the abyss...but I'm okay with that.
Check out my new Young Entrepreneur Blog to keep up with my story.
Sunday, February 21, 2010
Tuesday, September 22, 2009
Sunk Costs - An Economic Concept for Everyday Life
In five years of college, I learned about a wide variety of topics including programming, digital design, microelectronics, and engineering methods. However, there is only one concept that I attempt to use in everyday life, Sunk Costs. A formal definition of sunk costs from the Economist.com states:
Ten minutes later, you've barely moved and the other line seems to be moving at about twice the pace. Most people will inexplicably stay in their current line, because of the time they've already put in to waiting there. With consideration for sunk costs, you should switch lines.
Why? The time you put in has already passed. You can't get it back regardless of your course of action. If the other line will get you out of the store faster, you should switch lines...always.
In case I didn't explain that well, consider this math breakdown:
x: amount of time you've already waited in line
y: projected amount of time you will still have to wait in current line
z: project amount of time you will have to wait in the other line
Total time in current line (if you stay) will be x+y
Total time if you switch lines will be x+z
Since you think z < y, it's a no-brainer to switch
So how and why do I apply this concept to everyday life (outside of the grocery store)? Anytime I see a better path than the one I'm on, I take it. No questions and no hesitation. If at anytime the new path turns worse than another (including the old one) I switch.
I apply this to everything I can. If I'm reading an article and it's boring, I quit reading it. If I rented a movie, but an opportunity comes along to hang out with friends instead, I ignore that I rented the movie. If I'm writing a cover letter for a job and see another job that I'm more likely to get or will give me more satisfaction, I'll write that cover letter instead. You can always go back to the article, movie, or cover letter later on, but you may miss out on the better opportunity if you don't take it when it arrives.
I'll admit that the rented movie is a bad example because at some time, the rental expires and it would cost you more money to rent it again. But I would easily trade that $1-3 for a fun night with good friends.
When what is done cannot be undone. Sunk costs are costs that have been incurred and cannot be reversedThe example used in class to help us conceptualize involves grocery store lines. Say you're in Wal-Mart and selecting a check out line. The only two lines open seem to be about the same length so you pick the one that you think is best.
Ten minutes later, you've barely moved and the other line seems to be moving at about twice the pace. Most people will inexplicably stay in their current line, because of the time they've already put in to waiting there. With consideration for sunk costs, you should switch lines.
Why? The time you put in has already passed. You can't get it back regardless of your course of action. If the other line will get you out of the store faster, you should switch lines...always.
In case I didn't explain that well, consider this math breakdown:
x: amount of time you've already waited in line
y: projected amount of time you will still have to wait in current line
z: project amount of time you will have to wait in the other line
Total time in current line (if you stay) will be x+y
Total time if you switch lines will be x+z
Since you think z < y, it's a no-brainer to switch
So how and why do I apply this concept to everyday life (outside of the grocery store)? Anytime I see a better path than the one I'm on, I take it. No questions and no hesitation. If at anytime the new path turns worse than another (including the old one) I switch.
I apply this to everything I can. If I'm reading an article and it's boring, I quit reading it. If I rented a movie, but an opportunity comes along to hang out with friends instead, I ignore that I rented the movie. If I'm writing a cover letter for a job and see another job that I'm more likely to get or will give me more satisfaction, I'll write that cover letter instead. You can always go back to the article, movie, or cover letter later on, but you may miss out on the better opportunity if you don't take it when it arrives.
I'll admit that the rented movie is a bad example because at some time, the rental expires and it would cost you more money to rent it again. But I would easily trade that $1-3 for a fun night with good friends.
Wednesday, July 1, 2009
Stepping Out of Your Box Required
The thing I've noticed most since really attempting a run at my business Hyrax Hype (which I guess I didn't formally announce on here like I said I would) is that I have to do things that I'm not entirely comfortable with. I don't mean that from an ethics standpoint, just things that are outside my typical character. I can see that I will really have to step outside my box to make this work.
The one thing that stands out the most is that I'll probably have to ask people for things. I don't mind asking people for things when they're owed to me, but I really hate calling in favors. However, it seems that to score some early clients I'll probably have to go heavy on the networking route...especially since I don't have any money for traditional advertising methods. I suppose that this is the make or break point for most entrepreneurs; you are either willing to suck it up and do the tasks you don't want to...or you aren't.
For example, there is a local business that I would really like to approach to offer a heavily discounted price because they will be my first client. I think it would be a win win for both parties and yet I keep procrastinating and putting other tasks in the way. Unfortunately for me, networking and sales are two of the hats I will have to wear within this business (especially on the front end, but really as long as the business continues).
Part of the thrill and excitement of being an entrepreneur is getting to wear the multiple hats and deciding what to do when. But I think I've stumbled upon a critical realization; some things just need to be done whether you want to do it or not.
The one thing that stands out the most is that I'll probably have to ask people for things. I don't mind asking people for things when they're owed to me, but I really hate calling in favors. However, it seems that to score some early clients I'll probably have to go heavy on the networking route...especially since I don't have any money for traditional advertising methods. I suppose that this is the make or break point for most entrepreneurs; you are either willing to suck it up and do the tasks you don't want to...or you aren't.
For example, there is a local business that I would really like to approach to offer a heavily discounted price because they will be my first client. I think it would be a win win for both parties and yet I keep procrastinating and putting other tasks in the way. Unfortunately for me, networking and sales are two of the hats I will have to wear within this business (especially on the front end, but really as long as the business continues).
Part of the thrill and excitement of being an entrepreneur is getting to wear the multiple hats and deciding what to do when. But I think I've stumbled upon a critical realization; some things just need to be done whether you want to do it or not.
Thursday, June 25, 2009
Can't Find a Job After Graduation? Start a Business!
Entrepreneurship as a fallback plan probably isn't how most businesses are started. However, in today's economy I'm sure that it is looking like the most viable option for a lot of unemployed recent graduates and unemployed professionals. When you scour the internet for interesting articles about start ups and advice, you don't hear entrepreneurs exclaim, "I was unemployed, so this was really my last option!" Generally, they developed a good idea, gave it a test run, and proceeded to drop out of the cubicle workforce.
Most of these "trial-method" entrepreneurs are self-driven and motivated enough to propel themselves and their business to at least a quasi successful state. But I think we're about to see a new trend of entrepreneurs that just don't have a better option. Starting a business without a day job is historically seen as too risky and too unstable for professionals with families and responsibilities. However, it's a lot less risky when you are completely without income. The worst that happens is you give it a good run and end up where you started with some extra stories to talk about in your next interview.
I know all this because it is exactly the situation that I'm in. Although I'm currently living with my parents so I don't go into massive debt, I can't seem to get a job for the life of me (even part-time, temporary, or night shift). I've been through the interview process at several companies so far with pretty good odds of landing each of the positions, but there seem to be too many people more qualified than I am. A lot of times when I discuss this with people I get the "oh, just keep trying and the right job will find you eventually." Unfortunately, that just doesn't seem to be how it works anymore.
I read an article this morning called Where Do You Rate on the Entrepreneurial Scale. I've been pondering it ever since. I would put myself at a 7 on this particular scale, because I have the drive and know-how to really go at a business, but have never truly done it. However, you could apply the same scale to your job seeking skills. A 1 being you post your resume on a couple job sites and update it each month (it would almost be hard to qualify you as 'looking' for a job, because really you're just waiting for a job). A 10 would be researching companies you want to work for and picketing outside their offices until someone gives you an interview (You're on the edge of insanity. Some would call you pushy; others would call you motivated). Seeking out positions you qualify for, crafting a matching resume, and not generally following up your applications would probably put you around a 4 or 5.
I get a different score on this scale. I would honestly be hard pressed to give myself more than a four. Although I'll go out of my way occasionally to ring someone for a job that truly excites me, I pretty much don't follow up my applications whatsoever. I'm sure there is some correlation to this score and my ability to get a job, but that is not the point.
The point, my very few readers, is if I get a better score on the entrepreneurship scale than the job seeker scale then shouldn't I be trying to start a business rather than going on an endless job search? Take this mental test and be honest with yourself. I know that when I really let the truth roll, starting a business is really where I want to be.
Most of these "trial-method" entrepreneurs are self-driven and motivated enough to propel themselves and their business to at least a quasi successful state. But I think we're about to see a new trend of entrepreneurs that just don't have a better option. Starting a business without a day job is historically seen as too risky and too unstable for professionals with families and responsibilities. However, it's a lot less risky when you are completely without income. The worst that happens is you give it a good run and end up where you started with some extra stories to talk about in your next interview.
I know all this because it is exactly the situation that I'm in. Although I'm currently living with my parents so I don't go into massive debt, I can't seem to get a job for the life of me (even part-time, temporary, or night shift). I've been through the interview process at several companies so far with pretty good odds of landing each of the positions, but there seem to be too many people more qualified than I am. A lot of times when I discuss this with people I get the "oh, just keep trying and the right job will find you eventually." Unfortunately, that just doesn't seem to be how it works anymore.
I read an article this morning called Where Do You Rate on the Entrepreneurial Scale. I've been pondering it ever since. I would put myself at a 7 on this particular scale, because I have the drive and know-how to really go at a business, but have never truly done it. However, you could apply the same scale to your job seeking skills. A 1 being you post your resume on a couple job sites and update it each month (it would almost be hard to qualify you as 'looking' for a job, because really you're just waiting for a job). A 10 would be researching companies you want to work for and picketing outside their offices until someone gives you an interview (You're on the edge of insanity. Some would call you pushy; others would call you motivated). Seeking out positions you qualify for, crafting a matching resume, and not generally following up your applications would probably put you around a 4 or 5.
I get a different score on this scale. I would honestly be hard pressed to give myself more than a four. Although I'll go out of my way occasionally to ring someone for a job that truly excites me, I pretty much don't follow up my applications whatsoever. I'm sure there is some correlation to this score and my ability to get a job, but that is not the point.
The point, my very few readers, is if I get a better score on the entrepreneurship scale than the job seeker scale then shouldn't I be trying to start a business rather than going on an endless job search? Take this mental test and be honest with yourself. I know that when I really let the truth roll, starting a business is really where I want to be.
Friday, June 19, 2009
Take an Idea and Run With It
Talk about a long lull in activity...it was interesting that I hit it the same time the guys at Corporatepreneur did. I guess my lack of activity was just caused by the recent turmoil in my life. Things have to be relatively settled before I can think well and clearly.
Anyway, I was going pretty hard at the job search. That may void the title of the blog for some people, but it was all according to plan. The idea was to get a solid career related job (preferably one where I could learn some new skills to help me with my future endeavors) to get me on my feet somewhere and then start a venture or two on the side with hopes that after a year or two I could step back from the cubicle before I got too entrenched.
As it turns out, the universe (but mostly the economy) has been plotting against me. I came close to scoring a job offer on several occasions, but nothing has worked out so far. Applying for jobs for 4-6 hours per day just wasn't giving me any satisfaction and really turning my outlook negative in a hurry. There was a day in the middle of this week when something really clicked--I'm here indefinitely, time to start getting on with life.
I usually can't understand why I don't get hired for a position. Many times it is out of our own control, but when you really feel like you're the perfect candidate to take the figurative dam and blast it wide open it is really discouraging when you find out the bad news. I've felt like this for two positions recently, where I just can't imagine a candidate who is a more perfect fit than I am.
Well, I realized that just means its time to use the 'potential' and 'drive' that I've always been told I have to (taking a semi-quote from 300) do what I was trained to do, what I was bred to do, what I was born to do! I've come up with an idea for a business that I think could be a real winner. Everything is under tight lock-down right now, but I'm really optimistic and excited about the idea and opportunity.
I'll let everyone in on the secret when the website is complete, posted, and functional (and when I get the name on all of the social networking sites). Anyway, I will probably relocate this blog to my own domain (allmendingerenterprises.com) which is just sitting empty right now. Redoing that site with this blog attached is on my to do list right after the business's website.
I have to say, sorry to toot my own horn, but the website I'm making for this business looks well beyond my normal capability level, almost as if a graphic designer has swooped down and taken hold of my mouse! If you can't tell, I'm excited about this to the highest degree. Hopefully that will translate to success.
Anyway, I was going pretty hard at the job search. That may void the title of the blog for some people, but it was all according to plan. The idea was to get a solid career related job (preferably one where I could learn some new skills to help me with my future endeavors) to get me on my feet somewhere and then start a venture or two on the side with hopes that after a year or two I could step back from the cubicle before I got too entrenched.
As it turns out, the universe (but mostly the economy) has been plotting against me. I came close to scoring a job offer on several occasions, but nothing has worked out so far. Applying for jobs for 4-6 hours per day just wasn't giving me any satisfaction and really turning my outlook negative in a hurry. There was a day in the middle of this week when something really clicked--I'm here indefinitely, time to start getting on with life.
I usually can't understand why I don't get hired for a position. Many times it is out of our own control, but when you really feel like you're the perfect candidate to take the figurative dam and blast it wide open it is really discouraging when you find out the bad news. I've felt like this for two positions recently, where I just can't imagine a candidate who is a more perfect fit than I am.
Well, I realized that just means its time to use the 'potential' and 'drive' that I've always been told I have to (taking a semi-quote from 300) do what I was trained to do, what I was bred to do, what I was born to do! I've come up with an idea for a business that I think could be a real winner. Everything is under tight lock-down right now, but I'm really optimistic and excited about the idea and opportunity.
I'll let everyone in on the secret when the website is complete, posted, and functional (and when I get the name on all of the social networking sites). Anyway, I will probably relocate this blog to my own domain (allmendingerenterprises.com) which is just sitting empty right now. Redoing that site with this blog attached is on my to do list right after the business's website.
I have to say, sorry to toot my own horn, but the website I'm making for this business looks well beyond my normal capability level, almost as if a graphic designer has swooped down and taken hold of my mouse! If you can't tell, I'm excited about this to the highest degree. Hopefully that will translate to success.
Tuesday, April 14, 2009
SEEFAD #1 Results
This post is a followup to SEEFAD: Self Employed Experience For A Day.
I had a great time during the course of the day. I woke up earlier than I would on a normal day because I was excited to get started. I did some brainstorming over hot chocolate on my balcony and drew up a plan for the new site I've been scheming about. I uncovered a mindblowing realization that if I throw in a handful of 'user centric' pages on this site, then I could hope for a bunch more visitors that I hadn't initially anticipated. I did a good amount of keyword research and then I wrote ZERO articles to get the site started.
Unfortunately, the plan was to spend most of the 'working day' writing articles to not only jump start my progress on the site, but also to gauge how quickly I can produce these articles so I can use it as a planning benchmark. I got a lot accomplished, but article writing wasn't one of them.
Everything was well on track until about 10:30am when I received a call from a recruiter about a job I'm actually interested in (normally I get calls about embedded systems and other crap I don't like). I don't yet know if it will amount to anything, but I spent the next hour or so researching the area the job is located in. Of course this had to include checking cost of living prices, especially rent, and looking up some activities in such a small town.
At the end of these shenanigans, it was time for lunch. I took a break and watched an episode of 'That 70's Show' from one of my box sets and then attempted to get back to work. Basically from this point on I was all over the place, checking various websites, reading, and occasionally doing some work.
I reworked some of the SEO characteristics of my power inverter website to try to help it get a ranking. I found some strange problems with it and thought of another potential problem this morning. The most interesting problems were that none of the pages linked back to the index page and there were H2 tags on every page, but not H1 tags...
Clearly this was a different version of myself when I created this site two years ago ;) I wouldn't do things like this now. Anyway, I changed the H2's to H1's and setup the linking structure (which is still slightly faulty) to better accomodate the world. These could have been the major issues holding the site back from a good ranking (it was back at like 100 for 'power inverter', which is wildly absurd because there isn't too much competition and it's the site's sole focus).
I think the day was pretty positive but obviously I didn't accomplish the tasks I intended to.
Lessons Learned:
I had a great time during the course of the day. I woke up earlier than I would on a normal day because I was excited to get started. I did some brainstorming over hot chocolate on my balcony and drew up a plan for the new site I've been scheming about. I uncovered a mindblowing realization that if I throw in a handful of 'user centric' pages on this site, then I could hope for a bunch more visitors that I hadn't initially anticipated. I did a good amount of keyword research and then I wrote ZERO articles to get the site started.
Unfortunately, the plan was to spend most of the 'working day' writing articles to not only jump start my progress on the site, but also to gauge how quickly I can produce these articles so I can use it as a planning benchmark. I got a lot accomplished, but article writing wasn't one of them.
Everything was well on track until about 10:30am when I received a call from a recruiter about a job I'm actually interested in (normally I get calls about embedded systems and other crap I don't like). I don't yet know if it will amount to anything, but I spent the next hour or so researching the area the job is located in. Of course this had to include checking cost of living prices, especially rent, and looking up some activities in such a small town.
At the end of these shenanigans, it was time for lunch. I took a break and watched an episode of 'That 70's Show' from one of my box sets and then attempted to get back to work. Basically from this point on I was all over the place, checking various websites, reading, and occasionally doing some work.
I reworked some of the SEO characteristics of my power inverter website to try to help it get a ranking. I found some strange problems with it and thought of another potential problem this morning. The most interesting problems were that none of the pages linked back to the index page and there were H2 tags on every page, but not H1 tags...
Clearly this was a different version of myself when I created this site two years ago ;) I wouldn't do things like this now. Anyway, I changed the H2's to H1's and setup the linking structure (which is still slightly faulty) to better accomodate the world. These could have been the major issues holding the site back from a good ranking (it was back at like 100 for 'power inverter', which is wildly absurd because there isn't too much competition and it's the site's sole focus).
I think the day was pretty positive but obviously I didn't accomplish the tasks I intended to.
Lessons Learned:
- Treat the day more like you're at a job
- Focus on task items, but allow for short timed breaks to pursue tangents
- Attempt a fixed schedule next time...
Sunday, April 12, 2009
SEEFAD: Self Employed Experience For A Day Preparation
Tomorrow I try a SEEFAD, a concept I borrowed from the Corporatepreneur blog. SEEFAD stands for Self Employed Experience For A Day and will allow me to experience a taste of being by own boss and doing things solely because I want to. Here is what the Corporatepreneur guys said about it:
In addition to observing the self-employed experience, I'm also using the day to measure my potential level of productivity building/writing content for websites. Then I plan to use the new 'data' as a benchmark to schedule a post graduation site building schedule.
Unfortunately I do have some commitments (including studying for a test thats on Tuesday) tomorrow, but they are minor and commitments will always exist even in a self employed world. I'm hoping to get in 6 to 8 hours of work in addition to a trip to the bookstore and a morning exercise/meditation session. I'll report back tomorrow night or Tuesday to review my experience and accomplishments.
"What we do is take a vacation day or use one of the many holiday days off to mimic a "a day in the life of working for ourselves." And the experience is amazing. It's like fast-forwarding into the future when you can control what you do and when you do it. And all of your productivity benefits you directly.I'm going to do some preliminary research tonight so that I can hit the ground running tomorrow morning. I've always found that accomplishing things early inspires me to be more productive the rest of the day so I want to make sure I have a plan for the first couple hours.
SEEFAD doesn't mean that we spend that entire day working a 9 to 5 for our own job. Some of us wake up late - hit the gym (because we always said we'd get in shape if we had more time) and then work leisurely from home. Other times a small group of 2-3 of us meet at a coffee shop with Wi-Fi and build our own businesses with great drinks and great company. Nothing is more motivating than being around others who are entrepreneurs (or have the entrepreneurial spirit) as well."
In addition to observing the self-employed experience, I'm also using the day to measure my potential level of productivity building/writing content for websites. Then I plan to use the new 'data' as a benchmark to schedule a post graduation site building schedule.
Unfortunately I do have some commitments (including studying for a test thats on Tuesday) tomorrow, but they are minor and commitments will always exist even in a self employed world. I'm hoping to get in 6 to 8 hours of work in addition to a trip to the bookstore and a morning exercise/meditation session. I'll report back tomorrow night or Tuesday to review my experience and accomplishments.
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