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I came to China for business because the abundant number of opportunities fueled my imagination. Since setting up my first company, I’ve tried to find mentors who could show me how to become a better entrepreneur. It soon became very clear to me that conventional business books and my previous business experience were only going to get me so far when it came to Chinese business relations. I needed help; so naturally, I looked to my Forum.
My Forum consisted of various ex-pats, and like me, they were grappling with life as an entrepreneur in the super-charged Shanghai business culture. By sharing our lessons learned, we were able to support one another and discuss how the business system works. One day, it dawned on me that other EO members probably held incredible lessons about conducting business in China, too. With that in mind, I did some research and talked to as many people as I could. I then wrote a book about EO members’ experiences in China, called Made it in China.
Made it in China is about the experiences of nine ex-pat, China-based EO entrepreneurs who have all built successful companies in China. Each entrepreneur takes a different theme and details how they built their businesses, what they learned and the mistakes they made. No lectures, just first-hand experience sharing, just like in Forum. The purpose of this book is to give back to others what EO gave to me: Direction and guidance in the form of peer-to-peer knowledge. Here are three lessons about conducting business in China that I’ve shared:
Thanks to the local and global support of EO, as well as to my Forum, I’m able to share valuable business experiences and help others learn and grow in the process. We all have great business stories to share, and the power of sharing them is enormously helpful for entrepreneurs and businesses around the world. When we share our lessons learned, we play an integral role in the continued success of our peers and this organization. This is why EO works.
Reducing Business BillsAs the CEO of Roys & Associates LLC, EO Los Angeles member Deam Roys allows his eight-person staff to telecommute on Mondays and Fridays. Employees get to spend more time with their families and reduce gasoline expenses. According to Deam, this decision has resulted in US$2-$3,000 in savings per month, equal to a 15-to-20-percent reduction in utility and landline bills.
Promoting Leadership in KidsMembers from EO Monterrey, EO Mexico City and EO Queretaro recently paid a special visit to former Mexican president Vicente Fox at Centro Fox in San Cristobal, Guanajuato, Mexico. Centro Fox is a center where students, businesses and people of the community unite to work on their leadership skills. The center is currently offering classes promoting community leadership in kids. The mission of the center is to promote and preserve democracy, freedom, leadership and development in Mexico and Latin America. The EOers visited to show their support and were treated to a private tour of the center, as well as lunch at Vicente’s childhood home.
Giving Back to the CommunityOn 23 May 2009, EO Toronto member and president of Right Sleeve Marketing, Inc. Mark Graham participated in a day-long fundraiser called “Marathon of Sport.” The objective of this fundraiser was to introduce the next generation of donors, volunteers and sponsors to the Special Olympics movement through integrated social and sporting events. All funds raised at the event were donated to the Special Olympics Canada Foundation. All in all, 18 teams collectively raised US$75,000 for the Special Olympics. Mark‘s team, the Right Sleeve Raiders, came in fourth place with a total of US$6,132 raised.
EO Bahrain Gets Colorful with EO’s ValuesOn 27 June 2009, members of EO Bahrain met for the “BIG BANG,” a fun-filled event interpreting the EO core values in art. The event was held in Al Riwaq Gallery at Al’Ali Mall in Bahrain. It was a unique opportunity for members to learn and play with colors by visualizing the core values of EO and painting them on a canvas. Teams of two were formed, with each team choosing a value and interpreting it from their point of view. The event was attended by well-known artist Abbas Al Mousawi, who appreciated the colorful side of the EO members’ business minds.
A good example of this is the Apple iPod. Today, you can buy the G3 iPod Touch. The G3 stands for third generation, which means two iPod versions have already been released. Why would Apple release these versions one at a time? They know that the more they update their products with small, incremental improvements, the more units they will sell.
I’ve learned to take the same approach when it comes to running my business. By always changing—or implementing generational change cycles—I can ensure I’ll always have people interested in my service. Check out the diagram I use at right that best describes this process. Each new cycle starts at the bottom of the circle.
After going through this entire cycle, I am back to Step 1 with a new idea for change. The key here is to make sure I always have new ideas, so that I can start to implement new change before I fully lose the effectiveness of the change effort taking place in the present cycle.
Ultimately, I am working on a minimum of two cycles at a time, and each cycle represents a new generation of change. By creating and introducing new changes in my business, my services will never be stagnant. I will always be moving forward.
The following represents the three key building blocks that we have seen help our clients survive and thrive in any market:
Key #1 – Set shareholder wages to a market wageThis may seem like an odd starting point, but this has proven time and again to be the most critical. Most entrepreneurs actually set their own salaries too low. Many business owners have fallen into the tax game of setting their personal salaries low in order to avoid payroll taxes; in turn, they take distributions to meet their living needs. The major problem with this approach is that it distorts the reality of business performance and sets the profit target too low. Once we get shareholders to set their own wages to reflect what they would pay someone else to do their job—the “market” wage—they invariably hit their profit target.
Key #2 – Get profitable with the current flow of salesThe one story I have heard over and over is: “I am not profitable right now! I need to hire one more key person and then we will be profitable.” Sounds like a good plan on paper, but in my experience, it has some serious flaws. If anyone has ever succeeded in doing this, it is because they got lucky, found the right person quickly and produced quick cash flow results. That is highly unlikely in business.
If a business owner is in need of new key talent, he or she must first eliminate other salaries to make room for the new hire. The same holds true for staff reductions in a downturn. The businesses who survive are the ones who make the cuts and adjustments early and do it to for profit, not just to break even.
Key #3 – Get cash flow priorities rightIf an entrepreneur is trying to take distributions out of the company while it still has debt, needs working capital and owes taxes, he or she is heading down a road of hard times. We tell clients that once they apply the first two keys for profit, their cash flow should flow as follows:
I know this is not the order most entrepreneurs want to hear, but of our clients who have fared well during the recent downturn all have followed this process. All in all, my experience has proven these concepts to be the most reliable building blocks for entrepreneurial success.
Whether you're starting a new venture or you're looking to enter new markets, developing a business plan is one of the most arduous tasks of entrepreneurship.
Luckily, there is an efficient way to create one: business plan software. One of the most important things this software offers is guidance on writing out a flawless plan. No longer will complex and elaborate financial forecasting activities be so difficult to do, especially since this type of software offers a step-by-step approach to simplifying plans.
With business plan programs, entrepreneurs can be aware of every influencing factor and stage of their plan. Good software will not just automate tasks; it will also analyze business ideas to help you choose how best to implement your plan. Here are some tips I discovered for choosing the right software:
Since implementing business plan software in my business, my goals have been more organized, my schedules are more secure and my objectives are clearer. I have eliminated the back-of-the-napkin planning that comes with running a business and set myself up for future success.
My wife and I welcomed our second son, Kallum, into the world on 4 May 2005. As expected, the first six months were full of stress; there was plenty of sleep deprivation and short tempers between partners. As the months passed, we saw no let up in the transition of having the second born. The late nights continued, the short tempers got shorter and sleep remained a luxury.
I wish I could say that was the least of our concerns. At three months of age, our Kallum looked more like a newborn than a healthy baby. His weight gain was minimal and his health continued to deteriorate. We needed answers, so we reached out to a child gastroenterologist.
We felt relieved knowing we had someone who could provide solutions to our son’s problems. However, after extensive endoscopies and other tests were performed, nothing appeared abnormal. By this time our son was eight months old, and he continued to lose weight. Our nightmare as parents continued to grow. We were desperate to find a definitive answer and course of treatment.
Around this time I was introduced to EO. I was told of the organization’s stellar member benefits, one of which was the Healthnetwork Foundation. I assumed this was only a US privilege, and that it surely couldn’t work in Australia. I contacted Healthnetwork with much trepidation, and I was surprised by the responsiveness of the service! Within 24 hours I was contacted by a medical coordinator. I was informed in more detail of what services were offered and instantly found out where the best pediatric hospitals were located.
We immediately contacted our gastroenterologist and discussed our options. We then sat down with our doctor and built a strategy for a diagnosis. Encouraged by our own research and doctors, we felt we were close to discovering what was making Kallum sick. During this time, Healthnetwork also suggested their “Second Opinion” service through Johns Hopkins Hospital. We thought this the most appropriate choice, as it could work in tandem with our current doctor for a long-term treatment plan.
The rest, as they say, is history. We worked closely with all of our doctors and Healthnetwork on a rare diagnosis: Eosinophilic Esophagitis. This is primarily an allergic reaction to food. The trials aren’t over by a long shot, but with the coordination of Healthnetwork and our local doctors, we understand the condition and now it’s a matter of finding the solutions. Working closely with our doctors, a slow process of introducing certain foods will ensure a normal life for our son.
It’s been awhile since we called Healthnetwork, and our son is now four years old. Although he still takes elemental formula to gain the correct nutrients, he is eating five solid foods: chicken, rice, celery, lettuce and lamb. He is down to four medications (from eight), has put on weight, is above average in height and enjoys beating up his brother. His newest milestone goal is the day he can eat McDonald’s.
Everything is a baby step for us, but thanks to EO, we now have a way forward. We also have the security of knowing there is help and a second opinion just an e-mail away. All in all, I believe the services provided by Healthnetwork are a privilege, and I recommend it to anyone, anywhere.
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The following announcements about upcoming regional and multi-chapter events are open to all EO members. Go beyond local and tap into the resources available to you outside your home chapter!
Event title: EO Global Benefits WebinarsDates: 16 July 2009, 11 a.m. (EDT) and 16 July, 10 p.m. (EDT) Location: OnlineDescription: EO Global Benefits Director Pauline Lewis is leading a series of Globalcasts to introduce and refresh your knowledge of EO benefits. This combination conference call and webcast will guide you through the wide array of EO benefits. If you want to take full advantage of your EO membership, this is for you!
US Dial in: 1-800-377-8846 Canadian Dial in: 1-888-276-7715 International dial in information is below. Dial in passcode is: 14794159# Webcast log in is www.readyshow.com, same passcode (no #).
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Event Title: 2009 EO Candian ConferenceSponsored by: EO GlobalDate(s): 12-15 August 2009Location: Ottawa, Ontario, CanadaAbout: This August, we invite EO members from across Canada and around the world to join us in the grand city of Ottawa for the 2009 EO Canadian Conference. Nestled on the banks of the majestic Ottawa, Rideau and Gatineau Rivers, Ottawa is a beautiful city–– it's cosmopolitan, yet surprisingly intimate and serene.Contact Information: Events, or visit the event's Web site.
Event Title: EO ANZAC SummitSponsored by: EO MelbourneDate(s): 30-31 October 2009Location: EO Melbourne, followed by Flemington for the Spring CarnivalDescription: EO Melbourne will host a Regional ANZAC Learning Summit, followed by a Social Event at Derby Day on 31 October. The events will be open to spouses and guests. Please note that there will be a member and guest cost to be advised as soon as possible.Contact Information: Chris Jacka, (61) (3) 9670-8344.
Event Title: Global Student Entrepreneur Awards (GSEA)Sponsored by: EO GlobalDate(s): 18-20 November 2009Location: Kansas City, Missouri, USAAbout: EO's GSEA recognizes the leading undergraduate student entrepreneurs in the world. This year GSEA is opening 20 spots to high school students who either have a passion for entrepreneurship or are currently entrepreneurs. If your son, daughter, cousin or friend fits the criteria of being in high school and having their own company, please contact Dean Lindal - Global VP EO to get more information on the event.Contact Information: Dean Lindal, Global Vice President, or visit http://www.gsea.org.
If you have an event you'd like to see included in this section, please e-mail Nicholas Thomas, Publications Manager.
On Thursday, 2 July 2009, EO New York member David Rosenberg had a once-in-a-lifetime opportunity to talk with US president Barack Obama. As the owner of Hycrete, a concrete solutions company built on a foundation of corporate and environmental responsibility, David is leading the design and growth of his community.
David was one of eight CEOs of leading cleantech-focused companies that spent an hour and half with President Obama. The session, which was held at the White House, consisted of a roundtable discussion with the president and his senior staff. During this memorable event, David and his peers discussed their companies, how they were innovating and growing, and what the federal government could do to help.
One of the most valuable lessons David gained from this thrilling experience was how to get his message across in a short amount of time.
“When you’re talking to the president and his senior staff, you have to know what message you want to get across and do it concisely,” said David. “Even in a roundtable discussion, one has limited opportunities, so you have to make sure you make the most of it.”
David was able to make the most out of this opportunity by preparing in advance and sticking to his communication plans. Here are a few things David did to ensure his message came across clear and quick:
Understand the AudienceOne of the biggest things David did before attending the event was educate himself about the audience, as well as what the president and his senior staff hoped to get out of the discussion. By doing his homework, he was able to deliver his message with precision.
Prep the MessageTo adequately convey his input, David had to deliver the Hycrete message clearly so everyone in attendance could easily understand. He decided to focus on his company’s value proposition, how they are innovative and how they are able to scale given the current macro-economical environment. By being specific about his messaging, he could better get his points across.
Hit the HighlightsWhen it was his time to talk, David focused on the highlights. David knew he only had a few minutes, so he discussed his focal points and concluded with specific actions of his company; e.g. his company’s environmental benefits, examples of large projects they have completed, how they are growing domestically and internationally, and how they invest in training. By providing the audience with key messages about his business, David didn’t have to worry about sending mixed messages.
Within the past few months, the owner of Home Instead Senior Care secured holiday accommodations in Paris, France, and a new vehicle with the help of this special service. M2Mx provides confidential business, personal and/or health advice, recommendations and solutions to some 25,000 YPO, WPO, CEO and EO members for free as part of their member benefits package.
The first M2Mx “win” for Charlie was when he queried the system to help find an apartment in Paris for a special vacation. Charlie and his wife, Tara, were going to celebrate their 10-year anniversary, and Charlie wanted to surprise her with a romantic getaway in the “City of Lights.” Instead of an ordinary hotel room, he was hoping to rent an authentic Parisian flat. With the help of M2Mx, Charlie was able to find a wonderful apartment, centrally located in the heart of the city within walking distance of key sites.
“It was great! Thanks to M2Mx our first visit to Europe and our anniversary were very special. It’s absolutely amazing to be able to tap into something like M2Mx and have access to experts worldwide for free,” said Charlie.
Charlie’s second M2Mx success was purchasing a 2008 Toyota Land Cruiser for US$2,000 off the sticker price. Discouraged after a local dealership reneged on its promise to sell the new SUV on time and at a reasonable price, Charlie turned to M2Mx to locate the vehicle he wanted for his business.
Through M2Mx, he connected with a YPOer who owns two of the largest Toyota dealerships in Iowa, USA. In order to get Charlie his car, the YPOer had Charlie fly in to secure the limited-edition vehicle.
“The YPOer went above and beyond and made all of the arrangements. They picked me up at the airport, got my bags and drove me to the hotel!” said Charlie. “The next day, they picked me up at the hotel and sold me my fully loaded car for a discount. I was blown away. This could have only happened through M2Mx!”
To learn more about M2Mx, visit www.m2mx.com or call +1.972.587.1615.
Another successful year at EO is behind us, and what a year it was! In FY2008/2009, EO hosted several record-breaking events, introduced new Web platforms, delivered stellar learning programs and expanded our global presence by welcoming several new chapters. Now more than ever, EO is primed for continued growth and success.
What does that mean for you? As an EO member, you get to experience the best in peer-to-peer networking, once-in-a-lifetime events and member benefits. You also get VIP access to all of the amazing learning and technology tools we’re offering this year. Here are five other ways you can maximize your membership this year:
