Sauder & Stoltzfus Blog

Preface: “It has been my observation that the happiest of people, the vibrant doers of the world, are almost always those who are putting into play, calling upon, depending upon the greatest number of their God-given talents and capabilities.” See quotes from John Glenn.

“Walking to the Fields” on The “Michael Process” (Segment IX)

Credit: Donald J. Sauder, CPA, CVA

“You can learn wisdom (e.g. in this context the business tool of the Michael Process and its relevancy) by three methods. First, by reflection, which is noblest. Second, by imitation, which is the easiest; and third by being a doer; and in that school, it is either if-only or next time.” That is a paraphrase of sage words from Confucius.

For those who choose to be a doer, it pays to prepare appropriately. Even though business problems don’t compare to a figurative “Biblical Moment”, more than one entrepreneur with lofty ambitions would have had a less costly education with a $250,000 MBA and five years of preparation. But quote “we don’t know what we don’t know.” And between what there is to know, and what we know, is a big gap, for the majority of individual entrepreneurs. That’s why partnerships, collaboration, alliances, advisors, coaches, and mentors, are vital for successful and developing businesses.

“He continues on to say, “If you’re not guided by a clear sense of purpose, you’re likely to fritter away your time and energy on obtaining the most tangible, short-term signs of achievement, not what’s really important to you.

And just as a focus on marginal costs can cause bad corporate decisions, it can lead people astray. The marginal cost of doing something wrong “just this once” always seems alluringly low. You don’t see the end result to which that path leads”.

Clayton Christensen says God hires people who help others become better people. As a Harvard Business School professor, Christensen teaches aspiring MBAs how to apply management and innovation theories to build stronger companies. But he also believes that these models can help people lead better lives. Here are some of his questions. How can I be happy in my career? How can I be sure that my relationship with my family is an enduring source of happiness? And how can I live my life with integrity? It also helps to ask these questions early in life, i.e. during preparation.

He continues on to say, “If you’re not guided by a clear sense of purpose, you’re likely to fritter away your time and energy on obtaining the most tangible, short-term signs of achievement, not what’s really important to you. And just as a focus on marginal costs can cause bad corporate decisions, it can lead people astray. The marginal cost of doing something wrong “just this once” always seems alluringly low. You don’t see the end result to which that path leads”. The point is, the Life of Purpose, that Clayton encourages for his students, is noble and effective. It also aligns with the Michael Process. To quote from Segment I, “That is your [business] purpose – provide an effective solution to a marketplace problem that you’ve concisely defined, with a passion for the marketplace, i.e. customers or clients.”

“The largest gaps in entrepreneurship are between the dreaming doers and the dreaming talkers. You will observe that real doers rarely criticize other doers. They realize how much work is really required.”

Well said Michael. “Real entrepreneurs have a passion for what they’re doing, a problem to be solved, and a purpose that drives them forward” – quote from Michael Dell. Exuberant business successes can be simplified to adherence with the three step “Michael Process.” A) passion for a marketplace, B) a concisely defined problem(s) the marketplace needs (re)solved, and C) providing an effective solution to the marketplace problem(s) defined in step B.

 The “Michael Process” is designed to firstly, provide dreaming talkers an understandable and implementable process towards be entrepreneurial doers, and secondly, help the entrepreneurial doers be more effective.

“It has been my observation that the happiest of people, the vibrant doers of the world, are almost always those who are putting into play, calling upon, depending upon the greatest number of their God-given talents and capabilities.” This quote from John Glenn, is perfectly aligned with the “Michael Process” entrepreneurs.

The largest gaps in entrepreneurship are between the dreaming doers and the dreaming talkers. You will observe that real doers rarely criticize other doers. They realize how much work is really required. The “Michael Process” is designed to firstly, provide dreaming talkers an understandable and implementable process towards be entrepreneurial doers, and secondly, help the entrepreneurial doers be more effective.

Preface: Mattel is a leading global children’s entertainment company that specializes in design and production of quality toys and consumer products. The company creates innovative products and experiences that inspire, entertain and develop children through play…..

………..Ruth loved work over playing from day one; and while in high school she worked two jobs. First as a part-time secretary for her brother Joe a lawyer in Denver, and then double shift at the Greenwald Soda Fountain in the big indoor market in downtown.

The “Michael Process” with Fisher-Price (Segment VIII)

Credit: Donald J. Sauder, CPA, CVA

The American toy company Mattel, officially began in 1945. Headquartered today in El Segundo, California, Mattel has been a leader in American toys for decades. Mattel brands and products include Fisher-Price, Monster High, Barbie, Ever After High, Winx Club, Hot Wheels, Matchbox, Masters of the Universe, and American Girl. Today the company is international with a presence in 40 countries and selling products in 150 countries. Here’s what co-founder Ruth Handler says about the company’s beginning. “We didn’t know how to run a business, but we had dreams and talent.”

Ruth loved work over playing from day one, and while in high school she worked two jobs. First as part-time secretary for her brother Joe a lawyer in Denver; and then double shift at the Greenwald Soda Fountain in the big indoor market in downtown. Cruising through downtown in her 1932 Ford coupe, 16 year old Ruth Mosko had to have a second look at her future husband, Elliot Handler. It took her two weeks to locate “Izzy”.

Ruth was from the prosperous east side of town, and attended a top tier high school in the nation. Izzy was a member of the friendly gang called the Gigolos. They were Jewish and Italian kids from the more dangerous west side. Soon the two began to date. Three years later during college break, Ruth went on vacation to Los Angeles. While dining with a friend from Paramount, she applied for a job at the company and was hired. Quickly enamored with the big city, “Izzy” Elliot had almost disappeared from her mind. One month late Elliot transferred his college studies to of all places the prestigious Art Center School of Design in Los Angeles too.

Then it the big moment, Ruth envisioned a sales calls to the exclusive Wilshire Boulevard shop called Zacho Imports.

Where’s the “Michael Process?” Let’s continue. As an artist by trade, Elliot became fascinated with designing Lucite lamps, picture frames, hand mirrors, and candelabra to decorate the couple’s apartment. Ruth was impressed, and certain that with the quality and passion in the design features she could sell the products as a business. With a credit card and $200 purchase of supplies at Sears, the couple became entrepreneurs in 1938.

Elliot was so surprised he had a most challenging time finding scrap paper and a pencil to write the order on. Elliot’s hands were shaking, and then Zacho was out the door.

Matt Matson and Elliot met in 1938 too, when Elliot designed and built an oven for Matt’s rental apartment. At that time, Elliot and Ruth called their business Elliot Handler Plastics. Then it the big moment, Ruth envisioned a sales calls to the exclusive Wilshire Boulevard shop called Zacho Imports.

When Ruth arrived for the sales call, Axel Zacho really liked what Elliot had designed, but he wanted to see the couples shop before ordering. Preparing for the worst, Ruth and Elliot met Mr. Zacho in their pitiful little workshop. When Axel agreed to a $500 order, Elliot was so surprised he had a most challenging time finding scrap paper and a pencil to write the order on. Elliot’s hands were shaking, and then Zacho was out the door.

Soon Ruth had the courage to made a sales call to Douglas Aircraft. The Douglas executive loved the Plexiglass clock Elliot had designed. His order was so large, Elliot’s brother Al had to fly out to help produce the gifts for Christmas, and Ruth had to borrow $1,500 for working capital to fill the order.

Then constant bickering in the business lead Matt to leave in 1944. Within one month, a new company developed Matt + El, or Mattel.

With a taste of success, Elliot continued enthusiastically with his designs and Ruth excelled with a love and thrill on the challenge of selling what Elliot crafted. Six years after the Sear purchase, annual sales of the Elliot’s products designs exceed $2m. Matt Matson’s business expertise had made a big contribution. Then constant bickering in the business lead Matt to leave in 1944. Within one month, a new company developed Matt + El, or Mattel.

Starting with picture frame sales, Mattel soon expanded to dollhouse furniture. In 1947 the company launched its first toy sensation, a ukulele called Uke-A-Doodle. Fifteen years after launching, the company went public on the NYSE.

With continued success, Mattel purchased Ringling Bros. and Barnum & Bailey Circus in 1971 for $40m from the Feld family. Two years later, despite the success of the circus division, Mattel sold the circus to support company vibrancy. After an investigation, Elliot and Ruth Handler were round guilty of issuing false financial reports on the company, and the company banned them from the board. It was Arthur S. Spear who turned the business around, and back to profitability in three years.

Is this “Michael Process” really the Chicken Dance Elmo heritage of the famous Fisher- Price? The answer is “yea”.

Preface:  If you can improve [customers] peoples lives, you have a business. People think, ‘well everything’s been thought of,’ but actually, all of the time, there are gaps in the market here and gaps in the market there.”  Richard Branson 30 Days of Genius.

The “Michael Process” – Yesterday, Today and Tomorrow (Segment VII)

Credit: Donald J. Sauder, CPA, CVA

Perusing back through the business landscape to the early 1900s, major business trends or industries applicable to “Michael Process” entrepreneurs included the development of the engine, the tractor, the automobile, oil production, and generation of electricity. Along with these business development enterprising entrepreneurs started car dealerships, farm machinery dealerships, and gas stations. Corresponding new occupations developed e.g. mechanics and electricians.

Organized in 1976 with a single mission to be the best electrical contractor in the Midwest, ProElectric in Kansas City, KS, has developed into a respected electrical contractor with annual sales volume surpassing $20 million. Employing up to 150 employees, the business provides outstanding electrical services to customers. Blossoming with an application of the “Michael Process” to a century stable industry, there’re an entrepreneurial business that is solving problems with a business purpose successfully for their community.

 “Interestingly, the 110 story Sears Tower completed in 1974 is monument of the era. This landscape led to new occupational titles including machinist, truck driver, computer programmer, and shop foreman.”

During the 1960s the players on the business landscape comprised manufacturing, computers, telecommunications, automation and production customization, and more stores (and restaurants) to present all the products saturating the marketplace. Interestingly, the 110 story Sears Tower completed in 1974 is monument of the era. This landscape led to new occupational titles including machinist, truck driver, computer programmer, and shop foreman.

What about tomorrow’s “Michael Process” opportunities?

If you have faith like Peter in the Book of Matthew, do you need a “Michael Process?” Here’s how it worked. After they had returned home, Jesus went up to Peter and asked him, “Simon, what do you think? Do the kings of this earth collect taxes and fees from their own people or from foreigners?”

Peter answered, “From foreigners.” Jesus replied, “Then their own people don’t have to pay. But we don’t want to cause trouble. So go cast a line into the lake and pull out the first fish you hook. Open its mouth, and you will find a coin. Use it to pay your taxes and mine.”

“The not only do they [fruitful entrepreneurs] set realistic goals, and take accountability seriously; but they know they create their own success, i.e. they have faith they will achieve their business vision.”

Then there is the story of the daughter of a wealthy businessman who took her boyfriend who was studying to be a small-town pastor to meet her parents. After dinner, the father sat in his mahogany study with the young man, and started asking questions. “So how to do you plan to earn a living to support my daughter and a family if you’re interested in marriage?” The young man responded “God will provide.” The father followed up with “And as a pastor, how will you buy a nice house for my daughter and grandchildren to enjoy?” Again, the young man replied “God will provide.” Following up on the conversation later, the mother ask her husband how the conversation went with the young man. He replied, “….another Liberal and he thinks I’m God”.

Granted, we are not saying the “Michael Process” is an unfailing principle. It helps facilitate the faith necessary to succeed in business and research supports this. Dan Schawbel writes in his article 14 Things Every Successful Person Has In Common, not only do they [fruitful entrepreneurs] set realistic goals, and take accountability seriously; but they know they create their own success, i.e. they have faith they will achieve their business vision.

“Ponder that one moment. If you’re an entrepreneur, those gaps are your business opportunities and or threats. Successful businesses have satisfied customers, no exceptions.”

If you do not have faith like Peters yet, here is a timeless quote. “The best businesses come from [customers] bad personal experiences. If you just keep your eyes open, you’re going to find something that frustrates you, and then you think, well I could maybe do it better than it’s being done, and there you have a business. If you can improve [customers] peoples lives, you have a business. People think, ‘well everything’s been thought of,’ but actually, all of the time, there are gaps in the market here and gaps in the market there.”  Richard Branson 30 Days of Genius.

Ponder that one moment. If you’re an entrepreneur, those gaps are your business opportunities and or threats. Successful businesses have satisfied customers, no exceptions. In addition, entrepreneurship doesn’t require a great idea; you don’t need a genius invention for the “Michael Process” to work for you. You simply need the expertise to improve the lives of your future customers. That’s the pillar characteristic of the “Michael Process” case studies. Ray Kroc’s name is not McDonald; Alex Fourie did not invent the iPhone; Anna Phosa wasn’t the first farmer; And Michael Dell did not invent the PC. Yet they’re entrepreneurs who have solved problems [closed gaps] effectively with a passionate business purpose.

What if the business landscape of the future includes remote healthcare, autonomous vehicles, a sharing economy, artificial intelligence, renewable energy, smart cities, 3D printing, domestic robots, and commercial drones? The “Michael Process” will continue to be applicable in business as long as seed time and harvest remain.

Preface: “If you’re not passionate about what you do, it will reflect on your work and your performance, and eventually, stop you from achieving your full potential.” — Quote from Michael Dell of the “Michael Process”

The “Michael Process” – A Case Study (Segment VI)

Credit: Donald J. Sauder, CPA, CVA

His father was a stockbroker and an orthodontist; his mother was a money manager; the genius of the “Michael Process” yes, Michael Dell was ambitious from first grade. So where is the “Michael Process” right? At the early age of eight, Michael was already dreaming about his career in business. Attending Herod Elementary School in Houston, Texas, he made serious endeavors to earn his high school diploma by passing an equivalency exam from a testing company he persuaded to give him the opportunity.

It was four year until his business career began at the age of twelve, embarking on a mail order stamp and baseball cards trading business, he earned $2,000. Two year later, at fourteen, he obtained an Apple II and invested weeks learning how the computer worked. Following those early years, at the age of sixteen, Michael worked as a marketing executive for the Houston Post making cold calls. Creating a process of identifying top prospects who would purchase, he hired his high school buddies to leverage the department. That year he earned more than his school teacher with a taxable income of $18,000.

“In the next seven years, Dells business venture climbed at a dizzying rocket pace to list his company among the Fortune 500. Dell was the youngest CEO every to achieve the accomplishment.“

After graduating from high school, at eighteen, Michael started his career in computers, working from his dorm room at University of Texas. Declaring he wanted to compete with IBM, his passion for business drove him to dream big. The market data indicates IBM and IBM clones sold in 1983 exceeded 1.3M units. Registering the name “PC’s Limited” with his cash trove from marketing he was insightfully prepared for the market opportunity. A year later (without a college degree) he departed University of Texas to work at his new business “Dell Computer” full-time.

With his developed marketing acumen, Dell sold his computers with one year of free service and a warranty. Soon he had hundreds of happy customers. In the next seven years, Dells business venture climbed at a dizzying rocket pace to list his company among the Fortune 500. Dell was the youngest CEO every to achieve the accomplishment. Dell is quoted as saying “If you’re not passionate about what you do, it will reflect on your work and your performance, and eventually, stop you from achieving your full potential.”

“In twenty-five years after its IPO, Dell Computer stock soared 87,000 percent, creating 2,700 millionaires including secretaries and executives when Michael Dell led the $24.4B sale of his company, that started with a dream to compete with IBM.”

Years after endeavoring to complete high school at the age of eight, Dell said “One of things I benefited from when I started this business was that I didn’t know anything. It was instinct with no preconceived notions. This enabled me to learn and change quick without having to worry about the status quo, like some of my bigger competitors.” [Author’s note; I’d say he must have simply blazed his own path very successfully to reach the Fortune 500 listing.] Built with top talent from Harvard and Stanford with an eighteen-hour work day culture, Dell Computers culture and business management were demanding and bottom-line oriented.

“When you wake up [each day], are you pumped about your day, or are you hitting the snooze button every ten minutes? Tiny as it may seem that mean all difference between failure and success.”

In twenty-five years after its IPO, Dell Computer stock soared 87,000 percent, creating 2,700 millionaires including secretaries and executives when Michael Dell led the $24.4B sale of his company. It all started with a big dream to compete with IBM.

Along with the “Michael Process”, Dell encourages entrepreneurs to dream big, and do it with integrity, character and love. “When you wake up [each day], are you pumped about your day, or are you hitting the snooze button every ten minutes? Tiny as it may seem that mean all difference between failure and success.” Dell may not be richest tech entrepreneur, but his journey his rich with business experience and learnings; and in addition to the history of the “Michael Process” a great story for any ambitious entrepreneur(s).

Preface: Alex soared to success, with a business built around solving iPhone problems quickly. His business promises and guarantees to fix customer iPhones in one hour. Just like “Big Brother”, his customers need their phones working too, and they’re willing to pay.

The “Michael Process” – A Case Study (Segment V)

Credit: Donald J. Sauder, CPA, CVA

 Let’s consider for a moment the “Michael Process” on the last frontier of business in the world – Africa. Entrepreneurial endeavors and opportunity abound in Africa. Looking beyond the market shops and newsboys, the Africa of 2018 needs every industry as it develops, e.g. food, technology, apparel, etc.

The next generation of business leaders on the continent will also adhere to the “Michael Process” just like their older siblings, and will have the opportunity to support a deeper purpose, as they continue to  learn from them how to create vibrant entrepreneurial ventures. As the continent emerges from a “wild west” marketplace, it will present huge business opportunities for those entrepreneurs who have both the patience and perseverance. Here’s two African entrepreneurs who are following the “Michael Process” today, towards respectable and fantastic business success.

“Working long hours from his dorm room, he has built his business into a chain of eight stores in South Africa, employing 85 people.”

Alex Fourie is driven and ambitious. Having endeavored sincerely on several business ventures that never reached the runway as a college student, he is soaring with iFix. When he was told his trusty iPhone could not be repaired, his creative mind lead him to browse onto uTube to discover a solution. After watching some helpful videos, followed up with his successful repair of his iPhone snafu, he quickly advertised his expertise in the local newspaper.

“This level of problem solving and entrepreneurial ambition lead Alex to be featured in Forbes Magazine in 2014 as “one of the 30 Most Promising Young Entrepreneurs in Africa.”

Working long hours from his dorm room, he has built his business into a chain of eight stores in South Africa, employing 85 people. His entrepreneurial success is built around solving iPhone problems quickly. His business promises and guarantees eash customers iPhones fixed in one hour. His customers need their phones working, just like everyone else, and they’re willing to pay. This level of problem solving and entrepreneurial ambition lead Alex to be featured in Forbes Magazine in 2014 as “one of the 30 Most Promising Young Entrepreneurs in Africa.”

Since that time Alex has launched RiCharge, a packaged mobile phone accessories and charging devices manufacturer, selling products in 12 countries. His next plan is develop a solar powered charger for the mobile phone industry.

Alex, a passionate entrepreneur, followed his on path, lifted with a successful definition of a problem, i.e. keeping his customer connected to the works with their iPhones, and the effective solution, i.e. one-hour iPhone repairs.

“All within six years, Anna had a fortuitous opportunity with her successful venture – a business contract for 100 pigs per week. When she endorsed that deal, is was worth north of $2.5m US dollars.”

Starting in 2004, Anna Phosa invested $100 in her business, an agricultural pig farm venture in Soweto, South Africa. Her business started adhering to the “Michael Process” with purchases of four pigs, after a close friend guided her decision towards pig farming. [The UN Food and Agricultural Organization estimates the annual growth rate of meat consumption on the continent to surpass every other region of the globe. It is estimated to increase 145% in the next decades.]

Within a few years, Pick ‘n Pay, a South African supermarket, say similar to US based Food Lion, contacted her to supply 10 pigs per week for their local store. Then, with successful supply chain service, that contract soon increased to 20 pigs per week. All within six years, Anna had a fortuitous opportunity with her successful venture – a business contract for 100 pigs per week. When she endorsed the 100 deal, is was worth north of $2.5m US dollars.

Although Anna didn’t have the land for the 100 pigs per week contract, as an experienced entrepreneur she obtained a loan from ABSA Bank and USAID, to acquire 350 hectares with 4,000 pigs. With 20 employees to manage today, Anna is certainly flourishing, supplying the developing continent  with the proteins of bacon and pork chops.

As Africa’s fast rising middle-class adopts a Western works eating habit, Anna happily and effectively applies the “Michel Process” supplying food for the developing continents menu.

Preface: The day Ray Kroc watched the “Michael Process” at a level unparalleled in all his years of visiting customers as a salesman, (two industrious restaurant entrepreneurs from New Hampshire, who thought they could strike it big in California,) he could see plainly his “Michael Process” opportunity too.

The “Michael Process” – A Case Study (Segment IV)

Credit: Donald J. Sauder, CPA, CVA

Simple, effective and powerful, now for an analysis case study of the three step “Michael Process” A) passion for a marketplace, B) a concisely defined problem(s) the marketplace needs (re)solved, and C) providing an effective solution to the marketplace problem(s) defined in step B.

Ray Kroc watched the “Michael Process” firsthand in 1954. In preparation for his big day, he also invested decades of effort and work before he became an entrepreneur. As a fifty-two year old milk shake machine salesmen, Ray was performing his duties earning a fading yet comfortable $12,000 a year working as a Multimixer salesman, in an industry heading towards obsolesces from heavy competition.

“That evening Ray Kroc, a connoisseur of restaurant kitchens, saw the business potential…… he felt the McDonald brother’s business model was uniquely designed to succeed beyond their wildest dreams”.

One month he took a business trip to meet his biggest clients. One of those clients was a restaurant in San Bernardino, CA, that needed 8 Prince Castle Multimixers to churn out 40 milkshakes at a time. As Ray stood looking at his client Richard and Maurice McDonald’s restaurant, with lines of customers waiting to order from the low priced nine item menu, with the two golden arches lighting up the night sky, he envisioned the future career possibilities. As he watched “Michael Process” lifting those two local entrepreneurs, his saw opportunity to apply the process too.

That evening Ray Kroc, a connoisseur of restaurant kitchens, saw the business potential. When compared to all the market data he had on the restaurant industry from his real-time experience as a salesman, he felt the McDonald brother’s business model was uniquely designed to succeed beyond their wildest dreams. But the McDonald brothers were not interested. The next day, endeavoring with his top sales persuasion, he finally negotiated to sell McDonald franchises for a 1.4% of sales, and payback payment to the brothers of 0.5%. He told the brothers if the venture failed, he had no place to go.

Within four years, Kroc sold 79 restaurant franchises. The restaurants franchises developed quickly just like Kroc had envisioned when he saw the golden arches. Yet when they surpassed $75,000,000 in sale volume, McDonald’s net income was less than $170,000 – for the entire first 6 years. With his business idea under duress, Kroc granted 30% of the business to his key officers. In addition, he transferred a 22% stake of stock to insurance companies for a $1,500,000 loan to keep the doors open.

“Thanks to Harry Sonneborn, Kroc’s idea is now a global business. Sonneborn advised Kroc he profit from leasing or buying potential franchise locations, and then leasing to then selling the franchises for those locations.”

Soon Kroc was additionally stressed about the McDonald brother’s willingness to meet his expectations in the business, he rightly realized he need to buy them out. He knew well that “Kroc” burgers would flame out quick. Acting on his business acumen, he quickly took a high-risk loan for $2,700,000 to solve that problem.

At that time, all that kept him going was his adherence to the “Michael Process.” Deep in debt and no profits in sight, his passion for the industry, along with a purposeful solution of providing fast-food to a hungry America, lifted him to continue with the work. Thanks to Harry Sonneborn, Kroc’s idea is now a global business. Sonneborn advised Kroc he profit from leasing or buying potential franchise locations, and then leasing to then selling the franchises for those locations. With Sonneborn’s guidance, the business stabilized and Kroc arduously set to work professionalizing his franchises with a uniform look, feel, and taste from Bangor, Maine to Butte, Montana.

In the thirty years following Kroc’s “summer visit” to Richard and Maurice’s restaurant, Sonneborn’s idea for real estate surpassed a $4.0 billion dollar portfolio valuation. Kroc’s envisioned “Michael Process” with a fast-food opportunity placed him among the titans of American business.

“Likely thousands of customers had visited Richard and Maurice’s restaurant before Kroc. Yet Ray Kroc was the only one to visit, envision, and then act on the brother’s opportunities to succeed beyond their wildest dreams”.

Kroc’s adherence to the “Michael Process” was foremost his passion for restaurant kitchens. He invested thirty years preparing for his business opportunity. In addition, he was very well-aware of the fast-food industry opportunity, i.e. milk shake marketplace, in a developing nation, and the business opportunities with that. He had visited countless of those businesses in his career.

Likely thousands of customers had visited Richard and Maurice’s restaurant before Kroc. Yet Ray Kroc was the only one to visit, envision, and then act on the brother’s opportunities to succeed beyond their wildest dreams.

The day Ray Kroc watched the “Michael Process” at a level unparalleled in all his years of visiting customers, (two industrious entrepreneurs from New Hampshire, who thought they could strike it big in California,) he could see plainly his “Michael Process” opportunity too.

 

 

 

 

The “Michael Process” (Segment III)

Preface:  When strategizing with the “Michael Process” the greater the number of marketplace participants who will benefit from the (re)solution your business provides, the greater the latitude of your entrepreneurial endeavors potential platinum success.

The Concisely Defined Problem(s) the Marketplace Needs (Re)Solved

Credit: Donald J. Sauder, CPA, CVA

 What is the value of a problem solved? Truly, the greater a problem, the greater the value of a (re)solution. Yet more importantly, you need an awareness that there is [a] problem requiring a (re)solution, before the problem can be (re)solved.

That is the “Michel Process” purpose, to encourage (increased) business value creation through a simple process of concisely analyzing and understanding an industry problem, and then effectively (re)solving the problem with a business motive.

“Two business examples: Grocery stores help solve the universal problem of hunger, generally; and residential construction companies help solve the continuing problem of living with changing weather conditions, etc”.

That is how entrepreneurs succeed — when marketplace problems that are clearly defined, analyzed, and understood as applicable business value drivers, are (re)solved, in an industry (marketplace) thee entrepreneur is passionate to serve, with a business purpose. Two business examples: Grocery stores help solve the universal problem of hunger, generally; and residential construction companies help solve the continuing problem of living with changing weather conditions, etc.

One of the most significant and historical globally documented problems solved, according to Biblical records, involved Noah and his family’s construction of the Ark. Supposedly tsunami rains had never occurred prior to the Flood. The “Michael Process” applied to the Ark exemplified as a business, (was Noah an entrepreneur), involved a solution to a future problem, e.g. build an Ark, the problem was clearly defined, e.g. a flood, for a marketplace. Like the MasterCard ads say, the Ark was “Priceless” …..and for everything else, there is a MasterCard.

So, what business problem was being resolved with a construction project encompassing such a large ship in middle of a wheat field say? If nothing else, your [business] opportunities today are now possible. For purposes of Noah’s investment of time and resources into the project, it was likely most eccentric, certainly. If Noah hadn’t acted proactively on his belief of a potential developing problem, with the [eccentric] creation of a solution, the globes history may well have ended Millenniums ago?

“Noah prepared a business like solution to a problem, that had not yet occurred, and at the time in history, a problem that held zero historic precedent”.

Now, that example may be a little far from some entrepreneurial endeavors.

1. First point is, Noah prepared a business like solution to a problem, that had not yet occurred, and at the time in history, a problem that held zero historic precedent, i.e. how many shekels do you think that project required, and employees?
2. Secondly, from an entrepreneurial standpoint, what was the marketplace value of the Ark the moment the flood began? What is one day, or one hour, and Noah was the most successful [social entrepreneurial] problem solver of that year? Ok.
3. Third point being, let us be very careful about some entrepreneurial endeavors, because we may not be aware, or understand the logic of what the true purposes are that motivate the entrepreneur.

Like Albert Einstein is quoted saying “If I were given one hour to save the planet, I would spend 59 minutes defining the problem, and one minute resolving it.”

In order for a (re)solution to have a [entrepreneurial] value, there must be a need for the (re)solution. The greater the number of marketplace participants who will benefit from the (re)solution your business provides, the greater the latitude of your entrepreneurial endeavors potential platinum success, (e.g. what is the marketplace latitude for birthday cakes?)

“Every business increases probabilities of vibrant and sustainable success when they are adhering to the “Michael Process.”

Example: Mikayla’s lemonade stand, while a substantial community success, may have certain scalable limits. A). It is not a four seasons business, and B). It likely serves only a certain geographical marketplace constituency. That’s not to say, it cannot be very successfully in its locality. Since Makayla isn’t endeavoring to net $200,000 for her college fund, those certain limits are likely not a problem.

Every business increases probabilities of vibrant and sustainable success when they are adhering to the “Michael Process.” That is purposefully and effectively (re)solving a [need] problem that holds an intrinsic value to a marketplace, that is well understood, with a platinum passion for the industry.

Your businesses connection(s) (i.e. education, partners, consultants, advisors) to harness the necessary platinum resources to concisely define, analyze and understand a problem(s), and then (re)solve the problem(s) effectively for thee marketplace, are the horsepower that creates, develops, and perpetuates an encouraging entrepreneurial endeavors vibrancy and success. Plainly, that is the heartbeat of the simple, effective, and powerful “Michael Process.”

 

Preface: A passion for the business marketplace in entrepreneurship ultimately creates a golden advantage with navigating an intrinsic vessel from the persistent “heartbeat” to continuously leverage with improved skills and expertise, keep focused, and gain and develop key resources that the competition lacks, or is lethargically skipping.

The “Michael Process” (Segment II)

Credit: Donald J. Sauder, CPA, CVA

A Passion for the Marketplace

Talk with any entrepreneur who has built a business working banker hours, or without adhering to the “Michael Process”– they’re few and far between.

You need to ultimately be passionate about your business marketplace to truly succeed in entrepreneurship with the necessary purposeful ambition and tireless motivation required to persistently invest the necessary hours and effort. This is the effort to initially keep the bills paid, be resilient with business challenges, and then ambitiously and eventually soar through business ceilings. You need a “heartbeat” to play successfully.

A great example of marketplace passion in business is the history of Milton Hershey — fired from an apprenticeship, continued on to incorporate three candy business startups that all unfortunately became defunct; then persisted passionately onto “sweet” success with the Lancaster Carmel Company. After earning enough to retire with LCC, he sold the venture, and invested the proceeds to incorporate the Hershey Company.

“Throughout all the trials and tribulations, entrepreneurs reward themselves internally by realizing that they’re on a mission for the greater good” – John Rampton.

“For those uninitiated, entrepreneurs are not in it for the money. While there have been some icons who have made more cash than most of us we’ll dream of, think Bill Gates or Steve Jobs, the reality is that most entrepreneurs work an insane amount of hours for little or nothing. Why would they put themselves through this? Because they are driven to either solve a problem or make [it] easier.

Throughout all the trials and tribulations, entrepreneurs reward themselves internally by realizing that they’re on a mission for the greater good. No matter how bad it gets, it’s their passion that motivates them between paydays and during all the times when everyone else tells them to quit”. Excerpt from 5 Personality Traits of an Entrepreneur, contributed from columnist John Rampton.

How Important Is Passion When Starting A Business –  contributed from columnist Ken Sundheim, provides a second perspective on the vibrancy of marketplace passion in entrepreneurship.

“….. I personally don’t know anyone who wakes up every day for their job with a compelling enthusiasm. After all, work is work. Some days are good and passion comes naturally. Others are tiring.

Moreover, use of the word gives people who are not experienced in their career or who are down on their luck the thought that because they don’t love every day, their chances are zero.

You can be passionate about painting, but if you don’t have the resiliency, curiosity, appreciation for what skill and opportunities you have and ability to control your inner monologue, that passion quickly turns into frustration.

Therefore, being “passionate” and successful are mutually exclusive. Passion alone doesn’t put food on the table.

Where you direct passion is more important. For instance, if you are passionate about improving your skills, and about acquiring the emotional reasoning to keep your chin up during the downs, then you have a shot at loving your job, because winning is fun.

Passion fuels resilience and provides you with the ambition to learn and strive to become more competent at what you do. Most importantly than anything else, it affords you the ability to focus.

In anything, focus allows you to achieve complex tasks. When you can achieve complex tasks, you:

1. Become more indispensable as an employee.
2. Become more respected around the office.
3. Become able to negotiate higher pay for your services.

zShops sound familiar? An online auction site, zShops was one of Jeff Bezos’ early endeavors towards entrepreneurship. A real-time entrepreneurial genius, Mr. Bezos was purposefully passionately about his marketplace; and today we now have the Amazon Marketplace.

“Entrepreneurs who adhere to the “Michael Process” are more likely to own businesses that are less susceptible to market and economic pressures, more respected in the community, and can sell products or services at premium prices in the marketplace”.

A passion for the marketplace with the “Michael Process” revolves around an deep intrinsic interest and motivation ; that keeps you (and your business) inspired at work day after day, month after month, and year after year. When you talk to entrepreneurs who have achieved great entrepreneurial accomplishments, you will discover the importance of a business passion, (the uniqueness of people, and people versus computers) “the heartbeat” they have for what they do. And then, you too, will understand value of the concept in step A of the “Michael Process.”

Entrepreneurs who adhere to the “Michael Process” are more likely to own businesses that are less susceptible to market and economic pressures, more respected in the community, and can sell products or services at premium prices in the marketplace. Why? Because their passion for the marketplace creates a real-time advantage from the  persistent “heartbeat” to continuously improve skills and expertise, keep focused, and gain and develop key resources that other competing businesses lack, or are lethargically skipping.

Accountability Drives Results. 

Are you a business owner or a senior level executive who wants to see your business consistently run better and grow faster? Join us for an insightful, reflective, and collaborative workshop that teaches you the simple formula and practical system to gain true accountability in your business.

 Brian’s interactive style and experience-based real-world insights make this an eye-opening event for growth-oriented business leaders.

Learn more about the September 25th The Traction E.O.S. Accountability Workshop

 

 

Preface: The “Michael Process“ is powerful, effective, and simple; it is an element of the DNA link to entrepreneurial success. If you’re an entrepreneur today, you’re advised to ponder strategically how your business adheres to the “Michael Process.” 

The “Michael Process”

Credit: Donald J. Sauder, CPA, CVA

Well said Michael. “Real entrepreneurs have a passion for what they’re doing, a problem to be solved, and a purpose that drives them forward” – quote from Michael Dell. Exuberant business successes can be simplified to adherence with the three step “Michael Process.” A) passion for a marketplace, B) a concisely defined problem(s) the marketplace needs (re)solved, and C) providing an effective solution to the marketplace problem(s) defined in step B.

Your business purpose must fit the third step in the “Michael Process” to generate relevant and powerful business achievements, socially, and, or financially.

Entrepreneurial accomplishment in business is a derivative of effectively following either strategically or intuitively, the “Michael Process.” Your business purpose must fit the third step in this process to generate relevant and powerful business achievements, socially, financially, or both. That is your business purpose – provide an effective solution to a marketplace problem that you’ve concisely defined, with a passion for the marketplace, i.e. customers or clients. Say:

“More people fail through lack of purpose than lack of talent” — quote from Billy Sunday.

Let’s consider for a moment, a recent business case study from gofundme.com, that demonstrates simply and effectively the “Michael Process”.

Ever since she was a toddler, Mikayla Rydzeski dreamed of running her own lemonade stand. And last year, on the hottest day of summer, her dream finally came true. In just a few hours, she made over $1,000. But rather than keep the money for herself, she gave every single penny she earned to kids in her community who couldn’t afford school supplies. This year, Mikayla is back at it—and she’s aiming even higher.

 The day the lemonade stand was scheduled to take place ended up being the hottest day of the summer. But that didn’t stop Mikayla. She mixed up batches of plain and strawberry lemonade, decorated her stand, and posted up by the street to wait for customers.

In just five hours, Mikayla’s lemonade stand raised over $1,000—enough to provide 36 local kids with back-to-school supplies. She also became the youngest large donor in the nonprofit’s history.

“I was so happy because people were giving over the amount they had to pay for, and not a single person asked for cash back,” says Mikayla. “It was just the best thing in my life to help others. Once that happened, I knew I was going to get over my goal.”

 This aspiring entrepreneur unknowingly scored very high on adherence to the three-step “Michael Process”. 

First, Mikayla had a real passion for the marketplace. For years, she dreamed of running her own lemonade stand, but just never got the chance. She also had a compatible passion for helping other people who didn’t have as much stuff as everyone else.

Secondly, Mikayla was serving a marketplace that had a real-world problem, of vital importance– they needed something to cool their tongue in the hot summer weather.

Step three in the “Michael Process”, Mikayla had formulated a very effective solution – purchase from her business, some cooling and thirst quenching drink(s).

This aspiring entrepreneur followed the three-step “Michael Process” with likely minimal business planning. Yet, importantly, you can see easily how the process was effectively applied intuitively, and you too can see the success it generated. Her customers patronized her business happily, and even paid above market rates for solving a simple problem. With net income of $200+ per hour on average, from a likely modest profit margin. This summer her goal is $7,000.

The “Michael Process“ is powerful, effective, and simple; it is an element of the DNA link to entrepreneurial success. If you’re an entrepreneur today, you’re advised to ponder how your business adheres to the powerful, effective and simple “Michael Process.”

The “Michael Process“ is strategically powerful, effective, and simple; it is an element of the DNA link to entrepreneurial success. If you’re an entrepreneur today, you’re advised to ponder how your business adheres to the “Michael Process.” If your entrepreneurial endeavors are like Mikayla’s, and based upon the “Michael Process” either strategically or intuitively, your business is likely very successful too.