PETER ECONOMY
"I'm successful because I deliver a SUPERIOR product, at a reasonable price,
when I say I’m going to deliver it."
Age: 47
Highest Education: "I have a bachelor's degree from Stanford University in Economics and Human Biology, and have been working on an master's at the Edinburgh Business School in Scotland for several years. I hope to finish it by 2005 and take the family to graduation ceremonies in Scotland."
Year Started Business: 1995
Type Of Business: Writing and book publishing
Market: There are several markets: the publishers that publish his business books and articles, the people for whom he ghostwrites books, and the many readers who read and buy his books.
Number Of Employees: One
Best Month (Gross Revenues): $23,500
Hours Worked Per Week During Start-Up: At least 50 hours plus 40 hours at a full-time job that provided a steady paycheck and benefits while Peter built up his own business
Hours Worked Per Week Now: 50 to 60
Favorite Business Magazines: Leader to Leader, Fortune, and Fast Company
Favorite Business Books Or Authors: Business books by Michael Lewis, Bob Nelson, and Jim Collins–"These are great books that really make a difference in people’s lives."
Relaxes By: Surfing the Internet, playing guitar, and hanging out with his wife and kids
Keeps In Shape By: Working for 45 minutes on the treadmill three times a week and taking weekend hikes with his kids
Favorite Part Of The Job: "I’m the boss! Now that I work for myself, I can’t imagine ever working for someone else again."
Least Favorite Part Of The Job: "Typing...It’s a pain. I’m looking forward to GREAT voice recognition software!"
Companies Admired: Stonyfield Farms, Federal Express, and Sturman Industries
Favorite Quotes: The only way to predict the future is to invent it. –Alan Kay–"I live by these words every day of the week."
The Person Who Most Influenced His Life: Mr. Reece Oliver Noble, his high school social studies teacher–"He was a very motivating person, and he helped me to see what I really could achieve if I was willing to push myself to do it. He also taught me that I was setting an example for others (and, therefore, to set a good example!)."
Heroes: His parents–"My father for his many years of distinguished military service and my mother for fighting (and beating) kidney cancer."
Special Accomplishments: Received a trophy for the “100,000 Copy Club” for his best-selling book, Managing For Dummies–"It’s now up to 350,000 copies worldwide and it has been translated into 17 different languages."
Months Before Achieving A Profit: Three months–"Writing is a very low-overhead business. Just my home office and a computer and me."
Any Books, Tapes, Or Reports Authored: More than 15 business books, including Why Aren’t You Your Own Boss? and Home-Based Business For Dummies; available online at http://www.petereconomy.com/
Contact
Peter At: (619) 218-7665 and info@petereconomy.com
GETTING
STARTED TIPS:
I'm starting a home business next month. I have a maximum of $3,000 in start-up
capital. Where should I invest it?
Peter: Aside from a table and chair, put your money ONLY into buying things
that will result in making you money. A computer, inventory, advertising, public
relations–start selling!
I've just started a home business. My spouse has given me six months to make
it work. Any advice?
Peter: Get to work–NOW!
They say it takes money to make money. Should I try to get a small business
loan for my startup capital or just try to get by with my own limited finances?
Peter: Get started now. Don’t let waiting for a business loan get in the
way of your dreams. Most home-based businesses actually require little or no
capital to start up!
TECHNOLOGY & TOOLS:
How quickly do you adopt new technology for your business?
Peter: I’m an early adopter when it makes me more efficient. I always
buy the fastest computers available and I was one of the first people in San
Diego to install a cable modem and buy one of those cell phones with a Palm
Pilot organizer built in.
Do you use a fax machine with a dedicated line?
Peter: Yes. It’s always on to receive faxes from clients, and I occasionally
use it to fax things out.
How do you use e-mail in your business?
Peter: As a way of communicating with people anytime of the day or night. I
also use the "signature" line at the bottom of my messages to advertise
my latest books.
How do you utilize the Internet?
Peter: Mostly for research for my business books and to keep up with the latest
world news. And I love eBay.
How many of your own Website(s) do you have?
Peter: I use http://www.petereconomy.com/ as my "virtual" business
card. It has lots of information about me and the books and articles I’ve
written, links to articles written about my books, and contact information.
If you use voice mail, what is your primary use for it?
Peter: It’s just an answering machine for me. What’s nice about
it is that I can pick up my messages no matter where I am.
Describe your computer system and how you use computers in your business.
Peter: A Dell 1.8 GHz Pentium 4 computer with two 40 GB hard drives, a Brother
laser printer, a scanner, and a RoadRunner cable modem.
What software do you consider in the "must-have" category?
Peter: Must-haves include Microsoft Office, Windows XP, and Internet Explorer;
ZoneAlarm Pro; and Norton Antivirus.
What other technology do you use in your business?
Peter: A Samsung I300 (combination cell phone/Palm Pilot organizer), a Sony
VAIO laptop (for when I’m on the road), and a home computer network.
Of all the technology you use, rank the top three.
Peter: (1) The desktop computer–the basis for everything I do; (2) the
RoadRunner cable modem–phone modems are WAY too slow and waste too much
time; (3) The Samsung I300 phone–it’s essential for when I’m
out of my office.
MARKETING/ADVERTISING:
How do you market on the Internet?
Peter: Through my Website and the signature line at the bottom of my e-mail
messages. My Website is my virtual business card.
Approximately what percentage of your sales originate from Internet marketing?
Peter: 10%.
How do you market in the print media?
Peter: I write books and magazine articles.
Approximately what percentage of your sales originate from marketing in the
print media?
Peter: 20%.
How do you market via broadcast advertising?
Peter: I do radio interviews whenever possible.
Approximately what percentage of your sales originate from broadcast advertising?
Peter: 20%.
What other kinds of marketing do you utilize?
Peter: Word of mouth (30% of business comes from this), and my literary agent
(20% of business comes from this).
Where do you market?
Peter: Internationally.
THE HOME OFFICE:
How should someone set up his/her home office to maximize its effectiveness?
Peter: Be sure to have a separate room for your office with a door that you
can close. Have a roomy desk and a comfortable chair. Be sure to have the other
essentials–pencils, pens, file cabinet, computer, printer, fax machine,
separate phone line dedicated to the home office, envelopes, stamps, etc. Just
like a real office!
What, if any, ground rules have you established for yourself and family in order
to operate a successful home business?
Peter: Treat your home office like a real business. Have regular office hours
and avoid allowing your home/family duties to interfere. Be sure to have a separate
business line in your home office that only you answer. Nothing spells "unprofessional"
like having your 5-year-old kid answer the phone when a client calls.
What are some of the advantages to working at home? What are some of the disadvantages?
Peter: On the plus side, you’re your own boss, you get to set your work
schedule, there’s no commute, and there are some great tax advantages
to taking the home office deduction. On the minus side, you’ve got to
be very organized and be a self-starter (if you don’t work, you don’t
get paid!), you’ll have more interruptions and distractions at home (kids,
TV, significant others, refrigerator, pets, etc.), and it can be lonely if you’re
working at home all alone.
MANAGEMENT STYLE:
What part(s) of your work do you farm out?
Peter: The only thing I ever farm out is transcribing interviews from tape–
I hate doing that!
What part(s) do you feel should never be farmed out?
Peter: Schmoozing clients–that’s something that I personally feel
I do best.
Do you encourage or discourage partnerships?
Peter: Encourage, so long as the partners complement each other. Partnerships
can be a living hell if they don’t work out, so they must be chosen VERY
carefully.
Do you encourage or discourage hiring family members?
Peter: Encourage. I like keeping the $$$ my business makes in the family, and
it’s a great way to teach children about work and business.
When legal issues arise, what’s your usual response?
Peter: I immediately look at my customer agreements to see where I stand. I’ve
worked with contracts for many years, and can–99% of the time–avoid
having to bring in a lawyer by solving the problem myself.
MONEY:
What are the advantages of earning a lot of money. What are some disadvantages?
Peter: I’ve had times in my life where I earned a lot of money, and times
when I didn’t. I enjoyed the times I earned a lot of money a LOT better!
Best general tax advice?
Peter: Form a home-based corporation, and run all your business income and expenses
through it!
Best general investment advice?
Peter: Invest in YOUR business, not in the stock of someone else’s business!
You're in business already, and you've just received a windfall of $20,000.
What would you do with it?
Peter: Put $10,000 in business savings account, use $10,000 for equipment/activities
that will bring me more business.
FILL IN THE BLANKS:
In five years I'll be...
Peter: Writing GREAT books.
In ten years I'll be...
Peter: Retired!
MISCELLANEOUS:
What was the motivating factor that drove you to start your own business?
Peter: An intense desire to be my own boss, to be self-reliant, and to be in
control of my own destiny. I achieved all of these the day I told my boss "I
quit!"
What role, if any, did your family play when you were getting your business
off the ground?
Peter: My wife supported my decisions and encouraged me to become self-employed.
What motivates you now to continue building your business?
Peter: I am building my retirement with my business. That is VERY motivating!
What’s the best thing about being self-employed?
Peter: Being your own boss.
How often do you read books and/or listen to or watch tapes for improving your
business skills or knowledge?
Peter: Because I’m a professional business writer, I’m ALWAYS reading
business books and articles. That’s what I do for a living.
The most underrated activity in business is...
Peter: Networking (absolutely essential!).
The most overrated activity in business is...
Peter: Writing business plans (rarely necessary!).
What was the biggest obstacle you had to face when you were launching your own
business?
Peter: I kept my career job for the first couple of years that I was building
my own business. In other words, I was essentially working two full-time jobs.
It was a very real challenge maintaining this pace until I was finally able
to quit my day job and work my own business by itself.
What’s your biggest obstacle now?
Peter: Keeping a steady flow of new business coming in. Publishing is a tough
industry in which to make a living and support a family of five. I’ve
always got to have new book deals on the horizon, but it’s a constant
challenge because some deals never pan out and others on contract sometimes
fall through due to customer cutbacks or other issues.
If you had to start your business all over again, what would you do differently?
Peter: I would have incorporated my business on Day One. This would have provided
me with many tax advantages that I missed out on for the three or four years
that I ran my business as a sole proprietorship.
What was your worst business decision?
Peter: Not incorporating sooner.
What was your best business decision?
Peter: Converting my business into a home-based corporation. There are MANY
advantages to doing this over having a standard, home-based sole proprietorship.
What do you consider to be the main keys of your success?
Peter: I’m smart, persistent, talented at what I do, get along well with
my clients, have a customer-centered orientation, and I LOVE doing what I do
for a living.
What's your success philosophy?
Peter: Invent your own future. I believe these words, and I live them every
day of the week.
What about you has changed the most since finding success in business?
Peter: I have the opportunity to put ALL my creativity to use. When I used to
work for someone else, I had to do what THEY wanted me to do. Now I do what
I want to do!
What is the legacy you hope to leave?
Peter: A lot of books that helped a LOT of business people do a better job and
make more money!