Selling Ice to Eskimos?

I’ve heard it said that you can’t sell ice to an Eskimo and I must admit that it seems like a rather daunting task. You know…the whole supply and demand thing. I think the same could probably be said of Europeans, who for some strange reason insist on drinking their beverages at room temperature. Personally, I love the frozen stuff but I must admit that even I may give the “cold shoulder” to an ice salesman. After all, wouldn’t even we avid ice connoisseurs view it as an unnecessary luxury if we had to pay for on it a regular basis?

Consider the proverbial “wandering man in the desert.” During his journey across the hot, barren land he comes across a water salesman who just set up shop next to your ice selling business. At first, it seems like the perfect marriage, a win/win situation with both businesses servicing the needs of the other’s customer. The water salesman charges $1.00 per glass and you ask a relatively small $0.50 fee to top it off with some icy cool goodness. Our desert wanderer reaches into his pockets and finds his last $2.00, just enough to satisfy his craving for an icy cold glass of H20. However, to your overwhelming dissatisfaction, the thirsty man makes a decision that quickly turns your business model on its head. He opts to spend his money for 2 glasses of water, and passes on your frozen version of the same.

One would think that selling ice water to a man in the desert would be an extremely easy sale. But on closer examination, does this man really need the ice? The temperature at which he consumes the water is not nearly as important as drinking the water itself. After careful consideration, this man came to the logical conclusion that he was unlikely to pass too many water salesmen in the desert, and so he opted for an extra helping of hydration. Finding himself in a time of personal recession, with only $2.00 to his credit; our friend was forced to spend his money wisely.

During an economic downturn, individuals are forced to make extremely difficult decisions with the limited resources in their possession. Consumers eliminate flippant buying decisions, and begin to analyze each expense with a greater deal of caution. Therefore, it is extremely critical that entrepreneurs in these trying times make sure that their product or service is in fact filling a need in the marketplace, and not just a want or desire (think Starbucks).

Many times a recession lends itself to creating new needs in the marketplace, which opens up new opportunities for wealth and increase for those who can identify and meet those needs. Debt elimination, mortgage modification attorneys, and loss mitigation specialists have already begun to pop up to meet some of the obvious needs in the current marketplace. To one person, a recession and the accompanying corporate layoffs and high unemployment are a sign of doom and gloom, while to the opportunistic entrepreneur they are a path to unlimited riches.

I recently heard of a tremendous recession success story that was started in Silicon Valley, California. The company helps executives that have been fired from large corporations to write resumes, obtain additional training, and prepare to find a new job. They are hired by the HR department of the company making lay-offs, and their services are made a part of the terminated employee’s severance package. The company was started specifically to fill the need created by the economic downturn, and last year alone recorded over 3 million dollars in total sales. The entrepreneurs behind this company capitalized on an economy-specific opportunity, but oftentimes we also see location-specific opportunities present themselves during recessionary periods.

After the devastation of Hurricane Ike, and the great need for rebuilding in the area, a long-time friend of mine founded a construction business in Galveston, TX. As unemployment rates climb near 10%, and many small business owners are closing up shop, his business is expanding on a daily basis. He is just one of many who are finding needs in the current marketplace, as well as locations with a demand for their services, and are being rewarded handsomely for adequately meeting that need.

This same economic phenomenon is found in the Biblical story of Joseph. After accurately interpreting Pharaoh’s dream of anorexic bovine feeding on their obese counterparts, Joseph was given charge over the Egyptian leader’s entire kingdom. During the 7 years of abundant harvest, grain wasn’t such an easy commodity to sell (remember that whole Eskimo thing?) and Joseph did little more than preserve and maintain the wealth of the Kingdom. However, when the years of famine came, Joseph was well positioned to profit by selling his product to those who had a tremendous need for it. By being in the right place at the right time with the right product, Joseph’s business was able to thrive during a recession and accumulate untold wealth and possessions for Pharaoh.

It may seem counterintuitive to start a new business, or even expand an existing one, in the middle of what has been called, “The Greatest Financial Downturn since the Great Depression.” But a recession can actually be the perfect time for entrepreneurs to take action on their passions and ideas. There is certainly less competition during a recession, and many times during an economic slow down the prices for advertising, raw materials and other business essentials will drop significantly.

In fact, many of the nation’s most successful companies (General Electric, Southwest Airlines, & Microsoft, just to name a few) were started right in the middle of recessions. Why did these companies succeed, while most of their competitors were hemorrhaging cash, cutting production, and eliminating employees? It's because the visionaries that started these successful enterprises recognized a market need and then worked tirelessly to fill it. That union between the supply of a product or service combined with the market’s demand for it is the ultimate key to any thriving business, regardless of the economic climate in which it begins.

What opportunities are there in your area or market? What new needs have been created by recent events in your community, including the local impact of this current worldwide recession? How can your company fill those needs and capitalize on the growing demand in your specific niche? By opening up our minds and allowing God to reveal his ideas to us, we can see great prosperity in a time when the world is searching for answers. When the lost and suffering see our businesses thriving, we’ll begin to see the fulfillment of 1 Thessalonians 4:12, as our success begins to “win the respect of [the] outsiders.” It is then that we will see God’s entrepreneurial mandate begin to assist in the fulfillment of His higher priority, something affectionately known around Christian circles as “The Great Commission.”

Despise Not Small Beginnings

"Who despises the day of small things?” Zechariah 4:10, NIV

There is no such thing as an overnight success story. We all love to believe that they exist, if for no other reason than to leave us with the hope that one day success will also find its way to our doorstep. After all, we pay our tithes faithfully and even give offerings above and beyond to our local church and various missions organizations, as the Lord leads. Isn’t that supposed to swing wide the windows of heaven and pour down piles of money into our laps, so much so that we can’t contain it? This possibility, regardless of how remote, keeps us hanging on; shuffling our way through each day until that monumental moment happens to us…just like it happened to that nice young man we heard about from the evangelist on TV.

As hard as it may be for some people in the Church to grasp, financial freedom and economic prosperity does not simply fall in our laps. (My temptation is to write about how I don’t want my words here to burst anyone’s bubble, but that would be disingenuous of me, because that’s exactly what I want to do!) Until we “prepare [our] minds for action” (1 Peter 1:13), and then ACT, we will never see the success that we so fervently desire. It’s the mindset of waiting, watching, and hoping that has kept the Church at large destitute, ineffective, and unable to fulfill its earthly mission.

From the beginning of time until today, every successful business, invention, ministry, or organization has been built the exact same way; small step-by-small step, difficult decision after difficult decision. The reason why we think overnight success stories do exist in our society is because we’re not privy to the blood, sweat, and tears that goes on behind the scenes before that multi-million dollar company goes public, the famous actor gets his big break, or before the world renowned evangelist becomes, well…world renowned.

The other night my wife and I were flipping through the channels and came across a show called Gladiators 2000, a teenage spin-off of the mega-hit American Gladiators, originally filmed back in the 1990’s. As a student of all things successful, my interest was not necessarily peaked by the fast-paced, dramatic nature of the competition, but rather by the name of the 19-year old host of the program: Ryan Seacrest. For those of you who have not been sucked in by the reality singing competition known as “American Idol,” allow me to give you an update on pop culture. Ryan Seacrest is also the host of that particular program, which just so happens to be the #1 rated television show in America. Accompanying those high ratings is also an extremely high paycheck for one Mr. Seacrest (now 34), who made in excess of 20 million dollars last year, as well as landing some other high-profile gigs such as hosting the Emmy Awards, Dick Clark’s “New Years Rockin’ Eve,” and the American Top 40 radio program, just to name a few.

Most people are familiar with the fame, success, and glamour that surround stars like Ryan, but few people know of their tireless work ethic and undying commitment to their craft that is typical of successful people in any industry. Those close to Ryan tell stories of his passion for radio, and how he had crafted a smooth presentation early in his teen years. After a few years as a DJ in his native Georgia, Ryan moved to L.A. and began hosting a radio show for just $15 an hour (which in Southern California has you living well below the poverty line). However, Ryan didn’t despise his small beginnings, and kept pushing towards the success that he knew could be his if he stayed committed to the process. This same story can be found in countless successful businesses, even those that were started in the middle of recessionary periods of our country’s history.

The oil crisis of 1973 sparked the largest recession in our nation since World War II. The high gas prices would have deterred nearly any entrepreneur from starting a business that relied heavily on transportation. Apparently nobody told that to Frederick W. Smith, founder of the mega-shipping giant, FedEx Corp (or perhaps they did tell him, and he just wasn’t listening). Beginning its operations on April 17, 1973 as Federal Express, the company delivered a mere 186 packages to 25 cities on its first night of operations. Not exactly an overnight success story (no pun intended). However, with a strong business plan and an even stronger work ethic, FedEx grew into the financial juggernaut that it is today, now managing more than 7.5 million shipments everyday worldwide.

Our fast food, microwave-ready, instant coffee society has conditioned us to expect immediate gratification, but in business things don’t always work that way. Successful enterprises are built the same way in recessions as they are during times of abundance, and that’s through hard work and dedication. As you begin to pursue your entrepreneurial dreams, don’t become discouraged if things don’t happen for you right away. The day of small beginnings should not be despised, but rather embraced as a time of trial & error, learning, growing, and developing a master plan that will launch you into success in the years to come. As more people succumb to the fear and dread being propagated by the news media, the greater the opportunity becomes for those who have the drive and commitment to take action and make things happen. Being an entrepreneur is not always a bed of roses at first, but over time it can create a wonderful life for you, your family, and those you choose to bless with your wealth and financial increase. Stay committed to the process, even in times of recession, and you will certainly see amazing results!

Recession Success Stories

It is often in the midst of economic turmoil that enormous fortunes are lost. Today’s recession is certainly no different. As credit tightens, and consumer confidence wanes, many of the mighty titans of Wall Street are left waiting around for their “stimulus package” to come riding in on a white stallion to save their ailing balance sheets. However, as we have seen with the previous installments of stimuli, throwing bad money at bad businesses with bad management will not produce good results. Those businesses that don’t adjust fast enough to a changing economy will surely fail. It is a simple free market principle, and today we are all witnesses of that fact.

However, at the same time that fortunes are being lost by some, great wealth is also being amassed by others. Those who possess the entrepreneurial spirit are finding unique niches within the marketplace and are positioning themselves to profit from the present economic conditions. These individuals continue to succeed because they are always looking forward, staying adaptable, and rising to meet the challenges of a changing economy. They focus on creating new customers, while searching for new opportunities to meet the needs of their current customers, and for this effort they are being handsomely rewarded.

I guess you might call me a bit of a contrarian, but I truly believe that now is one of the best times to be an entrepreneur, and for many of the same reasons it’s a great time to buy real estate. It may sound a little counterintuitive, if not absolutely insane, to start a business in the middle of one of the worst recessions in decades. However, if you look back at the history of business in the United States, some of our greatest success stories were either started, or substantially grew, during seasons of economic contraction.

From General Electric’s start in the panic of 1873 to Microsoft’s humble beginnings during the recession of 1975 (and many in between), some of the world’s largest and most profitable companies were started when most people would have never considered beginning a new venture. But then again, Thomas Edison and Bill Gates were not “most people” and neither should you be.

Over the next few weeks, I will be analyzing some of the most successful recession start-ups of the past 150 years, and sharing with you some powerful business lessons. My hope and prayer is that these stories will inspire you to reach higher, and to believe God to bless you even in the midst of famine, as he did for Isaac in Genesis 26. Now is not the time for you to take your business aspirations and put them up on a shelf for a “better time”. This in fact may be the perfect time for you to tap into your God-given potential and watch Him come along side of you to help bring to fruition your entrepreneurial dreams.