Are You a Toilet Paper Entrepreneur?
Friday October 10, 2008
Have you ever gone to sit down on a public toilet, only to find out that there are just three sheets of toilet paper left? Entrepreneurship can be a lot like that sometimes. A new book, The Toilet Paper Entrepreneur, explores the phenomenon with tips for cleaning up your business plus dozens of stories from entrepreneurs (including yours truly) who have faced the end of the roll and lived to tell about it.
I sat down with the author, Mike Michalowicz, and had him share some of the key lessons from the book, as well as his own experience as a toilet paper entrepreneur:
The Toilet Paper Entrepeneur - An Interview with Mike Michalowicz
I also had one of my own entrepreneurial stories included in the book, which seems particularly appropriate in the current economic climate:
Know When to Say When - My Three-Sheet Story
What's your three-sheet story? Feel free to share in the comments below.
Comments
Thank you Scott & Mike Michalowicz, this article may have been a life saver for me. I’m a “TPE” with the hope of having enough sheets left on the roll to clean my you know what.
This is one of the best articles I’ve read lately which have added a little more “keep on pushing” power to my life. I’m nearing the door of starting my TPE business after being downsized in my field of expertise 7 years ago! I have the passion, skill, willingness to succeed, but no money. This is it, I have to WIN! My competition is different, Mike states “One key is that it must currently have 5 or less direct competitors to my startup.” My business has thousands of competitors and the key to my success would be to stand out in the crowd. What will make people buy my product or service over others. Would you ask Mike if this is right approach.
Wish me luck. I will keep you posted.
TPE
I am THRILLED to hear you are a TPE. I am energized by your approach, and will assure you that it will get you far with the Focus 5 Strategy.
The Focus 5 Strategy ($5M in 5 Years and less than 5 Competitors), points to the fact that you MUST stand out from the crowd, not just in marketing but in your actual delivery of your product or service. The example I like to use is the pizza business. If you were to open a pizza shop in your town, you will immediately have 10 or 15 direct competitors (aka other pizza shops), and 100 of indirects (aka all other resturants, frozen pizza, home cooking, etc.). So…. by default a pizza shop, even marketed well, is going to be hard to lead. But if the pizza shop built in a process that made it radically different then it could excel.
Some extreme examples may include… the pizza is delivered by beautiful models wearing just the jerseys of the local pro football team (trust me, word would get out AND every Sunday the guys getting together for football would be getting pizza)….. or what if the pizza was delivered within 10 minutes of ordering (this is not impossible by the way, a company started this and they drive in trucks with pizza ovens in them… when you order it they are driving AND cooking the pizza on the way)… or a million other things.
When you do this… now the direct competitors for “beautiful model” pizza or “instant delivery” pizza drops from 10 to 15 direct competitors to 0 or maybe 1. The next question is can it achieve $5M in revenue in 5 Years. This requires asking a lot of questions, and actually TRYING it out (prototyping). For example if you do the “beautiful model pizza” for football games, I would go to a lot of bars on saturdays and sundays and find out what those people do now for pizza. If they like pizza. The “secret sauce” to the business - the models, I would keep… secret for now. Then I would try the pizza delivery with models as a prototype… so instead of opening a pizza store, I would set up a phone line and let people order the pizza. I would then order it from another local shop, get the pie, transfer to a different box… and THEN have the model deliver it. I would watch this trend for 3 or 4 weeks to see how quickly the idea is spreading or not and what kind of viral call volume I am getting.
At that point, you should have adequate info for your Focus 5 Strategy, and can determine if you should go for it or tweak the idea.
Hope this helps… and tell me your thoughts on the book!
Be sure to keep us posted (on the blog) of your progress!
It’s hard for me to mix toilet paper with the catering business that I was in, but I definitely had an experience that was a turning point for us. I call it the lesson of the bag of ice, because what essentially happened was that learning the importance of a bag of ice (http://tinyurl.com/3s4t6v) doubled our catering sales in 1 year. Little things can indeed make a huge difference.
Larry Genkin
Pastrami To Publishing Blog
http://blog.pastramitopublishing.com
I am a TPE!!
I started a t-shirt business as a hobby a little over a year ago with no money, one design and both a myspace and facebook account. With these tools I have started not only a t-shirt line,that now has many designs, and an official website but also a movement. I call it the BAGAWIYA REVOLUTION to be exact.It is relatively simple; it states that life is like a -bag-of-wire, you can either go with the flow, unwind, straighten it out, or don’t get it twisted. The point is that life will come with many obstacles and you decide the outcome. The Jamaican people are embracing this concept and word is spreading to other parts of the Caribbean as well. Such islands include Barbados and St. Lucia.
This is truly what differentiates my product from the rest, as all designs have some meaning behind it that people can relate to.
We can all achieve greatness, just don’t let anyone or anything hold us back. That is my message…..join the BAGAWIYA REVOLUTION!
I had no idea that I too am being called a Toilet Paper Entrepreneur, but after reading the article, I am curiously excited about reading the book.
I began a company called Monkey-Toes almost 6 years ago while staying at home with my two young daughters. With no business experience, just the fire in my belly and a small loan from my parents, it began. Entrepreneurship has totally been the ride of my life. The turning point of my story was last year (my year of dark days), I risked everything after going through a divorce, lay off and what was so closely in reach of losing everything (home (foreclosure), business (misuse of cash flow), time with my kids (having to go back to work)). I saw how important this dream/passion of mine is and my mantra became “eh, so what, the what’s the worst that could happen - no one is going to die!”. I have no idea where it comes from (nature or nurture - I lean more toward the nature side), the drive, the energy and the ideas, but they are there, they are real and, THANKFULLY, they are working.
In response to the media glorifying the success of larege companies (absolutely, they do deserve the attention, as I will experience it when I am that big!), not failures experienced within the MDE’s, which creates the persona that ANYONE can do it. I don’t believe just anyone can do it, you just have to be wired.
Thank you for writing this book! This past year has taught me a ton about myself and my passion. I am waaaaay more resourceful when I have a lack of financial resources. I imagine what I could do with million dollar budgets and I look forward to that chapter in this business/life.
Good Luck to all of you out there. Entrepreneurship is something “normal 8-5, 5 days a week” people don’t understand.
God bless, Jenny Ford - Monkey-Toes
Michelle -
Nice post about your T-Shirt company. I wrote an article about Jamaica (I think you may have commented on it) and how I believe the Jamaican entrepreneur is the bright spot in the local economy.
Recently the news out of Jamaica is more overwhelming debt. To the tune of $1T (T - as in trillion). That is $350K for every man, woman and child. More than ever, the success of Jamaica entrepreneur is critical.
Jenny -
You are a Monkey Toes Toilet Paper Entrepreneur! Wow that is a mouthful!
Keep up the great work. Sounds like an amazing journey you have been on.
- Mike
I’m also a Toilet Paper Entrepreneur…and TPE Evangelist
I changed industries after 15 years, left my established industry cellular and wirelss and pioneered my new industry & company Youth & Teen Entrepreneurship (working pro bono). The coolest part of the story is I started my company weeks after meeting Mr. TPE and my ‘working angel’ Mr. Mike Michalowicz. Within 5 months I have developed a niche concept; written a book; gotten paid speaking opps; landed a local govt contract related to what I do; been invited into potential joint-ventures; have people from all over the states writing to me offering to help and sit on Advisory Board; gotten media plugs on local and national outlets; launched a blog with repeat visitors & commenters
and who knows what next?
Sometimes instead of chasing things you just have to let them come to you.
Good fortune to you all. Please let me know if there is anything I can do to help you in your entrepreneurial endeavors.
Cheers.
Shonika
http://www.teenentrepreneurblog.com
What starts with three sheets can go on for rolls and rolls. At GRiPPiES (http://www.grippiesonline.com) we’re hoarding TP — ASKING a ton of questions, LISTENING intently to the answers, and HELPING anyone we can through our own experiences. The less you have to start with, the more inventive you need to be. No question. It’s so exciting to have an idea for a product that not only solves a problem for ourselves, but turns out to solve a common problem for our market!
Being a TPE keeps me young, hungry and inventive. Whatever financial success we can glean from our product and growth of our company will be amazing for our families, but no matter what we earn, we will always know what it REALLY takes to start a business.
Every day is a Monday!
–Corrie Wilder
Managing Partner, GRiPPiES LLC
Toilet Paper Evangelist (that’s a real title! Ask Scott!)
I’m totally a TPE. Just back out on my own again as a writer who does b-to-b PR for professional svcs firms — and this time I’m staying that way. Out on my own, that is. Currently trying to figure out how to get implement the Focus 5 strategy, but I’ll get there. The book tells me how.
Additional TPE qualification: After 16 years in Chicago,I pulled up stakes and moved to in-law apt in my sister’s home in SW Ohio. (Even cheaper than the retirement community, Mike!) Would I rather be living in a loft condo with a door man? You bet. Am I gonna go there? Nope. Would be soooo un-TPE. I think we need our own T-Shirt: WWATPED?
Anyway, the info in the book is spot on. If you’re looking for no-bs advice on how to think properly about business, and you can afford only one book - pony up.
Best,
Helena B.
@Helena - Moved in with the in-law? Yowser, now that is T…P….freaking….E!!!!!
- Mike
I discovered Mike Michalowicz and the TPE concept from the HARO emails.
My name is Sarah Radford and I am a TPE.
Here’s my story:
http://www.toiletpaperentrepreneur.com/blog/guest-post-from-sales-rep-to-fashion-designer-a-story-about-making-lifes-lemons-into-lemonade-by-sarah-radford-of-chic-gems
Now here’s a story of how to make lemons into lemonade (hence the picture Sarah Radford submitted)
I always knew that one day I would own my own business. I started my company, Chic Gems, etc. jewelry, as a side project in 2002 while working as a top medical sales representative. I have always enjoyed fashion, beginning at a very early age. I enjoyed owning Chic Gems for the obvious reason of designing my own creations and I used my sales bonuses to finance the company - everything from jewelry bead stock to filing fees for the incorporation. I am thankful that I took life into my own hands when I did because in October of 2006 I was laid off from my sales job due to a company buy out. Chic Gems, etc. became full time from that moment on.
Here are a few things I have learned along the way:
1.It will cost at least twice as much as you think to build and run your business.
2.You can finance your business with credit cards if you do it wisely - I have 6 business credit cards. Remember to keep your balances at half your limit!
3.Hire a good accountant. The tax benefits of owning your own business are great.
4.Get a web site and a blog. They are valuable tools to promote your business.
5.You are going to have to step out of your comfort zone. I began cold calling and attending networking events. Not everything about owning your own business is glamorous.
6.You will most likely work harder and longer than you did at “your regular job.” Get over it! I can tell you that being an entrepreneur is not easy, but it sure is fun.
My biggest tips to being a successful entrepreneur:
1.Discuss your idea with people you trust who are successful in business.
2.Read a lot of business books - particularly those from other entrepreneurs. My favorites are Richard Branson and Donald Trump.
3.Trust yourself - if you don’t, no one else will either. Go with your gut instincts. If it feels wrong, it probably is!
4.Set up your business structure - Establishing a corporation protects you legally and allows for tax benefits.
“I believe that anything you can dream can be your reality with hard work and a little bit of luck.”
Drop me a line anytime. I enjoy helping other entrepreneurs live their dreams!
Sarah@ChicGemsEtc.com
www.ChicGemsEtc.com
www.bestprofessionaldesignerfashionjewelry.com
Great post. To be honest i think the majority of entrepreneurs out there are TPE’s. Just ask your average small business owner if they started with all the necessary resources to make a success of it. I’ll warrent the majority of answers will be no.