Teaching Entrepreneurialism
Tuesday, March 13, 2007
I was just reading an interesting Wall Street Journal column by George Anders about successful entrepreneurs. One trait he calls out is the confidence these individuals have. "Successful entrepreneurs believe they can make a lot of money, even when they don't. But can that confidence be taught?"
The column discusses some of the different ways parents encourage their children and how that might affect their confidence later in life. He points out that pure intelligence is not the best indicator of success, since many of his smartest classmates chose safe careers. Others, who may not have been the brightest, had confidence to spare and a fearlessness about trying different things.
We all know these people. I remember one individual who was probably a genius, yet lived at home with his parents working at local restaurants into his late 30s (at least) because he didn't have great social skills nor confidence. Meanwhile, some of the biggest success stories I know involve individuals who barely finished high school, let alone college. They made up for their lack in traditional training received in schools with confidence, drive, and connecting with others (even if that is something they had to learn).
As a parent, I do try to push my children to excel in their studies. I think it's a waste if they're not tapping into the latent gifts they have. That said, I also believe it's important to make sure they're well-socialized, spending time developing and enjoying their friendships. My wife and I praise their successes. We try to find out what they think might be at the root of their less-than-stellar performances. In the end, I do think it is our goal for them to know who they are, find what they like, and be confident pursuing that. With a junior in high school, that's a particularly challenging task right now.
Anders' examples focus on lessons learned in childhood. But can that confidence be taught to adults? Sometimes. I think one of the greatest aspects of the various systems related to the Quixtar business is that they can help build confidence. They are intended to teach skills, to provide encouragement and motivation, and to recognize successes along the way. Nobody disagrees with the importance of these aspects of the systems. Many people would not succeed in the Quixtar business if it were not for the teachings and encouragement received from other IBOs through the business systems.
These "Lines of Affiliation" -- training organizations -- become targets for many because income is earned for the teaching tools they provide, including books, recordings, and meetings. That's just free enterprise. Should there be even more disclosure about that income? Possibly. I hear again and again from IBOs (not leaders), however, that they're completely aware that Diamonds and other IBO leaders earn substantial income from their training efforts. It's only fair, they say, that a Diamond who travels to talk to other IBOs on a weekly basis be compensated for sharing their experiences. These Diamonds don't necessarily benefit from the business growth they help generate through their speaking engagements, since they're often speaking (live or through recordings) to people who aren't even in their personal line of sponsorship.
Critics point out that the lifestyles often portrayed in IBOs' promotional materials aren't exclusively the result of those IBOs' Quixtar businesses, since they also earned system income. Well, it's a chicken/egg question, isn't it? They had to be successful at Quixtar before they could ever earn anything as a speaker. Nobody would pay to hear from the guy who didn't achieve in their business. IBO leaders will insist that "the business" is broader than what's encompassed in the Quixtar Independent Business Owners Compensation Plan alone. The business includes what the system can provide as well. Nobody can deny that this has indeed been their experience and could be that of others as well.
Quixtar's efforts are to bring greater clarity and consistency to this experience. We also hope to better inform the teachings about how to build a successful, profitable business, helping more IBOs earn more income earlier on through a balanced business approach that includes more retail sales to customers. Building a business organization is an important aspect of growth for an IBO, but doesn't necessarily generate a lot of income in the early stages of their business. Retail sales can help provide income for today that keeps newer IBOs around longer to enjoy the fruits of their business-building efforts later. Improved retention (based on those earlier successes), meanwhile, helps ALL IBOs in a line of sponsorship.
Rich DeVos talked at Achievers about confidence. For many people, they don't come into the business with an abundance of confidence (or social skills, for that matter). Early successes making a few retail sales help build the confidence of IBOs as they prepare for greater successes down the road. Rich talked about the sense of accomplishment an IBO feels making their first sale, and then another ... and then finding two more customers. Approaching potential customers, identifying needs in their life, and fulfilling those needs with product can provide great experience at working with individuals. As customers come to enjoy products, they also may become interested in the business opportunity as well.