1. How Do YOU Manage Breakdowns?

    “Plan B? We don’t HAVE a Plan B!” I said, sounding exasperated to my business partners.  We were to have our big event in less than two weeks.

    You see we only had about 13 registered people for our Green Entrepreneur Summit:  Scaling Up Without Selling Out and we were concerned we would not fill the event, the first of it’s type in NYC.  What message would THAT send to the world that there were not enough Green Entrepreneurs interested in scaling up.

    Some of the members of our team wanted a Plan B in case our goal of 40 attendees did not happen.  And I could certainly understand why.  We’d invested a lot of time and energy and what if things did not turn out?  How to we manage the project?

    But more importantly, how do we manage our breakdown?  After all we had our venue, co-sponsors and speakers all lined up for the event.  It would be a real bummer, to say the least, if we only have 13 attendees.

    “And I don’t WANT a Plan B,” I continued with my partners.  “Because if we have one, that is the plan that will most likely end up happening.”

    And that is how we began managing our breakdown.  No Plan B.

    The Summit last week ended up being a success.  Even after getting a new venue double the size, we had about 30 people showing up the day of the Summit trying to get in because we sold out online the day before.  Security stopped letting people upstairs as our standing-room-only event was breaking fire code laws for the building.

    And that doesn’t include the 58 people watching the event live via our internet streaming video channel.

    How people manage breakdowns can be quite telling in how successful they end up being in business.

    Here is the cool thing about breakdowns:  they can often times lead to breakthroughs in how you are doing something.

    But it takes something from you to make that happen.

    Here are some ways people manage breakdowns:

    • Roll over and play dead—usually giving up and saying that is the best you can do.
    • Panic—everything is going to be ruined and you’re all doomed.
    • Collapse the situation—when one or two things are not working as planned or expected, and you say nothing is working.
    • Roll with it—as things happen and expectations are not met, you quickly address and reassess where you are before moving forward.  This takes focus and commitment to the outcome you most desire.

    Depending on which method you tend to use, there may be a better way.  The best people I’ve seen that manage breakdowns are those that use the following steps in managing breakdowns:

    1. Declare a Breakdown—this is quite powerful and gets you focused on what is really happening.  The admission of a breakdown allows you to hit the “reset” button.  More on this in a moment.
    2. Ask the Right Questions—most people do NOT ask powerful or appropriate questions when dealing with breakdowns.  For example, if you only have 13 registrations for your event, instead of asking, “What is Plan B?”, ask, “What is the quickest and fastest way to get at least another 40 registrations in 14 days?”
    3. Narrow Possible Solutions to Three—come up with as many answers to your “right question(s)” and then narrow the choices down in order to pick your strategy.
    4. Define “Go”/”No-Go” Point—while not having a Plan B works for some people, it is important to be UnReasonable and responsible.  Make sure you have metrics set up to monitor progress on your project.
    5. Don’t Look Back—once you decided to go forward with your adjusted strategy, don’t question yourself along the way.  Keep moving forward.  Use your metrics you defined in Step 4 to guide you.  Doubting your decision will derail you faster than you know.
    6. Play Full Out—Once you decide to go, make sure you put everything you have into your choice.  Otherwise, more-than-likely you’ll end up back in the same place you started.

    When we started by declaring our breakdown by only having 13 signups and we may not make it, we acknowledged our situation.  Kind of like the words, “Houston, we have a problem!”

    And once acknowledged, it creates a clean slate from which to operate.  That your current plan is not working and that you need to recreate a new one ASAP.

    Try it with your next breakdown.  Perhaps you’ll have standing room only results as well.

    Action Steps for the Week

    To get a clear understanding on how you tend to manage breakdowns, take a look at the last two or three you’ve had:

    • How did you manage them?  Which of the above-mentioned ways did you use?
    • What did you do well in the breakdown?
    • What can you do better next time?

    To drill down into this a bit deeper, take a look at one breakdown in your life that you handled really, really well.  What did you do differently than you normally do?

    Next, take a look at something in your business that is heading towards breakdown (or already there).

    What is the “what’s so” about the breakdown?  The facts, not emotions of what is going on.  Remove the emotions.

    Does it make sense to declare a breakdown?  If not, why not?  Make sure you are clear on this.

    Otherwise hit the “reset” button and declare a breakdown.  Then ask yourself a powerful question on what is the fastest, easiest, most inexpensive, etc. way to get what you want as your desired goal.

    Lastly, monitor the results with your go/no-go metrics defined and in place.

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  2. Today I woke up to find we are way over capacity for our Green Entrepreneur Summit:  Scaling Up Without Selling Out for tomorrow, Thursday, July 22nd at 8:30AM Eastern.

    My partner on this event, Erica Griggs from Carbon Outreach, and I just now were trying to figure out how to tell 25+ people we have to put them on our waiting list.

    Good problem to have, but not easy to turn people away.

    So we decided to be UnReasonable and now you can watch us live, online via video streaming at http://www.ustream.tv/channel/green-entrepreneur-summit.

    What would you see? We’ll have a morning packed full of well-versed speakers with decades of experience answering questions around green Marketing & PR and  Finance strategies before creating Your ‘Scaling Up Without Selling Out’ strategy.

    In the background, there will be interviews of attending green entrepreneurs by Planet Forward for potential spots on PBS.  All this inside a LEED Gold certified space.

    We want you to ask your green entrepreneurial questions! You can do this via Twitter.com/greenENTsummit.  Please feel free to tweet questions using the #greenENT hashtag, which will be projected in the main conference room throughout the event.

    The Green Entrepreneur Summit is tailored to your needs and we’ve worked arduously to make sure you’ll be wowed!

    UnReasonably yours,

    Stefan

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  3. First Green Entrepreneur Summit

    Hey,

    Quick update on the results of your help:  we just learned that yesterday Planet Forward filmed the first documentary, featuring a really cool from your suggestions:  Tri-State Biodiesel.  Four more of your suggestions to go!

    And the best of them will be put on PBS and National Geographic specials.

    Check out Planet Forward’s Tri-State Biodiesel video: http://bit.ly/ck37u8

    And it gets better!  Planet Forward just asked to attend our July 22nd Green Entrepreneur Summit: Scaling Up Without Selling Out in Manhattan to meet, interview and possibly film more green entrepreneurs like you.

    Since the planet needs more thriving small green businesses like yours, we’re trying to make attending this event a no-brainer for you. We’ve just secured a larger venue for the extra people and you can now come with a guest for the price of one:  $79.

    Just use discount code GUEST01 on the website above.

    Looking forward to seeing you this coming Thursday, July 22nd!  Mention you came because of this announcement and I’ll introduce you to Jason from Planet Forward.

    UnReasonably yours,

    Stefan

    PS: If you attend on July 22nd’s Green Entrepreneur Summit, Planet Forward is looking to meet and film some of the following green companies:

    TECH— What technology are you developing that will improve how we generate or use energy?
    BUSINESS—How is your business going beyond the hype and going green in a real way?
    RESEARCH— What theory, behavior, or norm are you researching to improve how we generate or use energy?
    POLICY— What is, should, or could your town or state be doing to encourage better energy use?

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  4. We all know raising money can be really tough.  But some entrepreneurs make it look easy.   Ron and David are two of those people.

    We were chatting over the weekend as they are on my finance panel for next week’s Green Entrepreneur Summit.  Ron last month raised a whopping eight-figure sum in only six months!  David raised $2MM in one of the more creative ways I had heard before.

    How they did it can be helpful for any green/non-green entrepreneur looking for capital.

    Ron Bergamini, CEO of Action Environmental Services, one of the greenest carting companies in the country, is a very modest guy.  He would never let on to what it took to raise more money than any small business I have known.  That modesty showed up again today when I saw him speak on a panel with the founder of MeetUp.com and several other like-minded NYC entrepreneurs.

    All Ron said on today’s panel was “it was tough raising it.”

    What he didn’t mention is the banks put him through the ringer.  Big time.  What should have taken weeks took months.  They didn’t double-check his finances, they triple-checked them.  He told me, “Two years ago when you were just off on your projections, it was a simple call to the bank to explain things.  Now the banks call me as soon as the slightest thing goes awry.”

    Makes it tough to run a company that way.  But now that he is very well capitalized, he is ready for his aggressive expansion plans.

    David Kistner, Founder of Green Apple Cleaners, one of the biggest and greenest “wet cleaning” (environmental dry cleaning) businesses in the US, had a completely different experience.  David raised about $2MM a couple of years ago in his second round of financing.  How he did it was one of the more creative ways I’ve heard.   He’ll be explaining this story next week at the event.

    Like Ron, David is a very laid back guy, who would never let on how difficult raising capital was for him.

    But the real lesson for him came after he raised his capital. He actually had to downsize from 10 locations to his current three.

    The reason why reminded me of what I went through ten years earlier with my green retail stores.

    He expanded too quickly.  In his case it was because he could not keep up with the demand and maintain quality with his state-of-the-art environmental cleaning process for clothing.

    This created serious log jams in his production, which in turn started to jeopardize Green Apple’s brand and image.

    But speaking with him all I heard was his excitement.  He now has a more grounded company with a solid infrastructure.  And is ready to expand again!

    Going through these experiences can make good entrepreneurs great, depending on how they handle the lessons.  Lessons that can never be learned in school.

    For both Ron and David, their experiences are helping them become environmental business leaders in their industries.

    Here are some of the key challenges to deal with when raising capital:

    1. Balancing Your Time— one of the biggest shocks to entrepreneurs when first raising capital is how much time it takes to write the business plan and then meetings and more meetings with prospective investors.  Each one wants different information and/or have it in a different way.  All this while you are trying to grow your business and expand your customer base.
    2. Enough is Not Enough—one of the hardest things to do is get a check from an investor and NOT spend it right away.  To put it in escrow until the right amount of money is raised.  If it IS raised, then spend it.  If it is NOT raised, then give it back.
    3. Valuating the Company—every entrepreneur wants to tell their investors their investment is now worth more.  But when raising money and you say your company is worth X, if that number is not accurate the next time you raise money, the company’s value may be lower than the previous round.  You risk upsetting your investors.
    4. Blue Skying—when raising money, investors want to know your growth potential.  How much you can scale up.  It is easy to say your market potential is far greater than reality.  When doing this, it can look great on paper, but when it comes to delivering, you may have a very hard time explaining your failings to your investors.
    5. Teaming Up—there is nothing more difficult than bringing on the wrong key management.  If they don’t “get” your vision (especially green businesses) or have a very different strategy of getting there, it will be a rocky road. And if you’re not careful, your investors may fire you because of it.  Remember when Steve Jobs was fired by Apple’s board in the 1980s?
    6. Good vs Bad Money—when someone is dangling a check in front of you, it can be VERY difficult to say, “No thank you!”  Yet if the check dangler is not in alignment with your company’s vision or strategy for growth, down the road it may come back to bite you in the you-know-what.  This is especially true for green companies who are often on a different growth trajectory than traditional companies.

    Ron and David are excited about what they are building and to teach it to us.  Along the other equally great finance and marketing experts, they will be sharing lessons learned and things to avoid next Thursday, July 22nd in Manhattan.

    If you have a green business and want to learn from these folks as well as meet other great entrepreneurs just like you, Be UnReasonable and come.

    And because you are a dedicated reader, just use special code SDPC01 for a massive discount (I’m embarrassed to say what it is!)

    Check out the Green Entrepreneur Summit:  Scaling Up Without Selling Out and use the discount code while we still have seats.

    Action Steps for the Week

    Raising capital are you?  How seriously have you crunched your numbers?  How prepared are you for being on the grill by experienced bankers/investors?

    Ready, well then, OK!  Start by making a list of what will most likely trip you up from the six Key Challenges above.

    Mostly likely you will have elements of all six.

    For each, create a strategy to keep your ambitions in check as you move forward.

    Almost like when you are trying to lose weight and you ask your partner to stop you from ordering that dessert at the restaurant, make sure you have something in place to keep you in check as things start to heat up.

    Most likely you’ll be glad you did.

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  5. Last week I was invited to a very special roundtable discussion.  The topic was Sustainable Mobility, initiated by Jeffrey Sachs, Executive Director of the Earth Institute at Columbia University. Along with Sachs, there were two dozen senior people from energy, government, automobile manufacturing, technology, urban planning, community development, and economics.

    And I was representing green entrepreneurism.

    We were trying to figure out what it would take to make mobility of people and goods and services a sustainable endeavor.  Super cool ideas were flying around the room about how to recreate entire transportation systems within cities and regions around the world.

    Towards the end of the day I mentioned to the group that the best and fastest way to implement our ideas was to show people how to make money doing it.

    The room fell silent.

    Soon after, the politicians and energy and automobile executives protested saying that policy must drive this initiative.

    I said, “Policy can’t and won’t drive this.  If we wait for that to happen, we’ll go nowhere fast.  It is far easier to set the entrepreneurs loose on solving this once we give them direction, inspiration and tools.”  Several people agreed and several rolled their eyes.

    And that is when I realized if only about half the room was sold on such a crucial strategic component on launching sustainable mobility, imagine how difficult it will be to sell a city or country.

    The key to selling… selling anything, is really just two basic components.  And depending on what you are selling, these two components need to be managed accordingly, depending on if you are selling someone to go on a date with you vs. selling yourself as the next president of the United States.

    Two parts to selling (almost) anything:

    1. Energy—deliver your passion for what you are selling.  Get them engaged and interested.  If nothing else, get them to get your interest and passion for it.  “The key is, you have to make people believe you believe.  Like a sermon, you have to let it flow out.  And then let it come back to you from the audience.”  John Deal, On the Road With A Supersalesman, by David Freeman, Inc Magazine, April, 2010.
    2. Action—once the energy is there, request the next step with them.  Whether it be to go on a date with you, vote for you, or buy your widget.  Remember the key here is they must be energized before they will act.  If not, it will come across like pressure.

    While these two steps in selling are straight forward, they can be difficult and take practice to implement successfully, depending on what you are selling.

    Here are some tips to successfully implement and pitfalls to avoid:

    • Get them emotionally committed.  During the “energy” stage, start the conversation by making it about them.  What is their challenge or problem they need solved.
    • Have them want it to work.  The key to energy is they see the possibility of what you are selling as being great for them.  Make sure you deliver this to them.
    • Make sure they are controlling the conversation.  Be sure it’s their idea, not yours.  Make sure they buy into it because they thought of it.  Guide them in this direction.  If you’re speaking more than 10%, that is too much!
    • Have a sales pitch you can adjust quickly and easily.  Listen to what they want to share with you and guide them down the path towards your solution.  If you use a standard pitch, you’ll fail most of the time.
    • Make sure you bring up pricing early on, if possible.  Feel comfortable with why you charge what you charge.  Be ready for objections and have powerful explanations.
    • Speak to their skepticism before it speaks to you!  If you’re not the fastest, least expensive, most state-of-the-art, etc. bring that up early on.  If not, they’ll find out eventually and it will likely bite you in the you-know-what.
    • Do not move to “Action” until the “Energy” is there.  Just stay focused on the other person.  If you go to Action too early, apologize for your enthusiasm and go back to the emotional (Energy) component.  How you know they are energized is when you are energized.

    So armed with this list information, selling becomes easy, fun and effortless.  Especially when you are selling something you love and believe in.

    This coming October, I will most certainly use it at next roundtable discussion at Columbia and expect to “convert” most of the listeners this time around.

    Action Steps for the Week

    Whether you realize it or not, you are ALWAYS selling.  If you wear makeup, or professional clothing, those are forms of selling.

    Once you get used to the fact that selling is just a daily activity, you can examine those areas you are most wanting to improve.  Break it into the energy and action components.

    In “energy”, what can you share to get them going in a direction you would like to lead them?  A personal story, a current event in the news, what?

    Make sure you listen more than you speak.  Your job is to guide them.  Let them ask questions and share what they want to share, while taking them down a path.

    When it is time, take them to “action” and ask them to do something that is a logical next step.

    And if you do this correctly, 50% of the time they will be taking YOU to action and asking things like, “so how can you help me?”

    Most importantly, remember to have fun when selling your widget.

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