Everything an Entrepreneur Needs to Start a Successful Company—or Not

The following post is modified from a paper I wrote for a graduate-level course in business management. I'm posting it because it is directly relevant to the business of writing.

           If the world were a perfect place, entrepreneurs could take their wonderful ideas, turn them over to honest business professionals, and reap huge profits while pursuing the work they love. However, the world is not a perfect place, and business professionals are not always honest. Even ethical arrangements among honest parties sometimes fall short of expectations due to improper planning and lack of funding. As Schermerhorn (2013) points out, businesses go through three life-cycle stages—birth, breakthrough, and maturity; each stage generates its own challenges which can undermine chances for success. Having an initial business plan, being able to locate sources of funding, and establishing both short-term and long-term plans can help new companies stay on track; more, they can ensure the entrepreneur keeps her most valuable asset: control.

What the Heck Is a Business Plan, Anyway? 

            A business plan is defined by Schermerhorn (2013) as a document which describes the direction and financing of a new business. For some creative people—and what entrepreneur isn’t creative?—writing such a document can be akin to giving birth to Rosemary’s baby. However, if entrepreneurs want to avoid their companies turning into a devilish offspring over which they have little or no control, such as the namesake in the 1968 horror film, Rosemary’s Baby, a business plan can make sure there are no unexpected surprises. Drafting a business plan helps entrepreneurs study the market for their products, determine the sort of products and services the company will sell, and even forecast the types of employees needed to run the company (Schermerhorn, 2013).

            Business plans do not even have to be formally written down, unless one seeks funding from banks or other lending institutions. David Riordan, owner of OOP! an arts and crafts supply store in Providence, RI, said he formally creates only a budget while he and his wife discuss everything else (“Do You Have,” 2003). Even so, a business plan can be very specific in defining goals such as numbers of transactions, volume of business, and expected income (Huseman, 2014). With such clear goals in mind, entrepreneurs can know what they expect the business to accomplish and anticipate how hard they will have to work to meet those goals.

            Depending on the business, entrepreneurs might need to precede writing a business plan by conducting a feasibility study. Such a study helps the entrepreneur decide if a project is even worth pursuing (Hofstrand & Holz-Clause, 2013).  It can also help entrepreneurs narrow the focus of the business, understand how to position their products, and gauge the risks involved in starting the business (Hofstrand & Holz-Clause, 2013). There is no point in proceeding with a business plan if no market for the product or adequate sources of financing can be found.

Financing--How to Get Money for Your Project

            Financing is a major part of setting up and running a business. Schermerhorn (2013) lists several sources of financing available to entrepreneurs, such as debt and equity financing, venture capitalists, and crowd funding. The last of these, popularized by Internet firms such as Kickstarter, Inc., enables entrepreneurs to raise money by offering “backers” free goods and services in lieu of equity. One author, for example, has rewarded her backers who contribute small sums of money with downloadable “Epub” copies of her book and a mention of support on her website (Ellyn, 2012). Such arrangements have several advantages. They are relatively easy to set up. They can encourage many people to contribute small amounts of money for no other reward than “warm fuzzies” (“Feel-Good Crowd Funding,” 2014). They also help entrepreneurs raise money without having to go into debt or give up equity in their companies (“Feel-Good Crowd Funding,” 2014).

            Long- and short-term plans must also be considered by entrepreneurs. As with the initial start-up business plan, it may seem counterintuitive to guess where the business may be in one, five, or ten years; however, such a plan, if flexible, can be an asset to entrepreneurs. Thompson Lange, owner of Landscapes Carmel, a furniture store in California, had a three-year plan for his business to earn $1.5 million; however, he anticipated that a sluggish market might push that goal back to five years (“Do You Have,” 2003). Lange also envisioned having a second store as part of his five-year plan (“Do You Have,” 2003). Another entrepreneur, Patti Renner, used her long-range plans as a “learning tool” and enjoyed adjusting it to help her general merchandise business grow (“Do You Have,” 2003).

Don't Shoot Me--I'm Just the Comic Book Writer

            Whatever business an entrepreneur seeks to establish—sole proprietorship, partnership, corporation, or LLC—one of the main concerns is control. A vivid example of what not to do can be found in the story of James Shooter, former editor-in-chief (1978-87) of Marvel Comics. Shooter went on to launch Voyager Communications, Inc., with two partners in 1989 (Berman, 1993). By the early 1990s, Voyager’s Valiant imprint had successfully launched several new comic book titles. But when conflicts of interest rose—in the forms of dating, marriage, and nepotism—Shooter found himself outvoted and ultimately ousted from the company into which he had poured his creative energies (Berman, 1993).

            Shooter likely had all of these things—a business plan, financing, and short- and long-term goals; his two partners, after all, were an entertainment lawyer and a veteran publisher, while Shooter himself had been involved in the comics industry as a writer and editor since the age of 13 (Berman, 1993).  However, such experience did not prevent one of the partners from dating a partner in the venture capitalist firm backing the company. Shooter later allowed that he should have walked away at that point; instead, he guided the company until it started to turn a profit—at which point he was forced out by his remaining partner’s new brother-in-law (Berman, 1993). Voyager became a successful company, but it did no good for the creative entrepreneur who launched it.

No Guarantees--But Plan Ahead Anyway

            The lesson from Shooter’s story is that even if an entrepreneur does everything right, things can still go wrong. However, proper planning can minimize the chances of entrepreneurs losing control of the company or at least be aware of “red flags” which signal a shift away from the company’s business and ethical goals. Writing a business plan, exploring suitable financing options, and establishing long- and short-term goals can help entrepreneurs retain control of their enterprises.

References

Berman. P. (1993, June 21). How not to start a company. Forbes, 151 (13), 54-55. Retrieved from Business Source Complete database.

Do you have a long-term business plan? (2003, December). Gifts & Decorative Accessories, 104 (12), 328. Retrieved from Business Source Complete database.

Ellyn, R. (2012). Hot flashes of life. Kickstarter. Retrieved from https://www.kickstarter.com/projects/1886729316/hot-flashes-of-life/posts

Feel-good crowd funding (2014, February). Kiplinger’s Personal Finance, 68 (2), 26. Retrieved from Business Source Complete database.

Hofstrand, D., & Holtz-Clause, M. (2013). What is a feasibility study? Iowa State University. Retrieved from http://www.extension.iastate.edu/agdm/wholefarm/html/c5-65.html

Huseman, J. (2014, September). Origination News, 23 (11), 1. Retrieved from Business Source Complete database.

Schermerhorn, J.S., Jr. (2013). Management (12^th ed.). Hoboken, NJ: John Wiley & Sons, Inc.

Do Your Characters Act Like Puppets?

My pleasure reading these days includes old Legion of Super-Heroes stories and reviewing them for the Legion World message board. It’s always risky to go back and re-read stories you grew up on.  They may not live up to the hype imposed by memory and childhood wonder.  

However, revisiting old stories can also produce insights for writers. We can learn from the choices previous writers made, both good and bad.

Two recent re-reads, for example, helped clarify in my mind the relationship between character and plot—specifically why plot should emerge from the characters instead of the other way around. 

In looking at these two stories, we can get a sense of how not to treat our characters like puppets of the plot.

“Target—21 Legionnaires” (Adventure Comics # 348, September 1966)

This story was written by Jim Shooter, who made comics history when he became the regular Legion writer at the age of 14. Shooter was roughly the same age as the Legionnaires he wrote and so he was able to bring a lot of realism to their personalities and dialogue. Shooter also created many of the Legion’s most memorable villains, including, in this issue, Dr. Regulus.

However, Shooter was still developing as a writer, and that explains why certain actions in this story are not wholly believable.

Dr. Regulus, a disgraced scientist who harnesses the power of gold, holds a vendetta against a particular Legionnaire, Sun Boy, and arranges for the latter to suffer from amnesia while Regulus steals the Legion’s clubhouse headquarters. However, the other Legionnaires track Regulus down and board his massive ship. 

Here’s where the plot forces the characters to do a puppet-like dance.

Copr. and TM DC Comics Inc.

As the Legionnaires separate to explore the ship, Colossal Boy enters a room that is tailor made for him—it’s giant-sized.  It also contains a giant robot that dukes it out with Colossal Boy and ultimately overpowers him.

But what if Colossal Boy had entered some other room? Are we to believe every room on the ship is giant-sized just to trap him? What if Colossal Boy hadn’t been part of the Legion team that went after Regulus?  The latter would have gone to all that planning for nothing.

A few pages later, Cosmic Boy, whose power is magnetism, becomes distracted by a noise and backs into a wall. Bad move, Cos. Gold bands emerge from the wall and ensnare him, his power useless against gold. 

What if Cos had backed against a different wall (we’re not shown similar traps on other walls) or hadn’t touched a wall at all? 

Meanwhile, the amnesiac Sun Boy wanders into a nuclear power plant, where he falls asleep. Not to worry, though. Atomic radiation (the source of his solar powers) restores his memory—and just in time, too, for he’s able to come to the rescue of his teammates aboard the ship.

I’m willing to grant the comic book logic that atomic radiation can restore the memory of a character whose power was created by atomic radiation. But I find it less plausible that, of all the places Sun Boy could have snoozed, he happened to find an unguarded nuclear power plant with an energy source that has been carelessly left open.

There are more examples of coincidence ruling the plot. And it’s a shame because “Target—21 Legionnaires” is an otherwise exciting story with several positive qualities (the realistic dialogue and personalities of the Legionnaires and a formidable villain being at the top of the list).

But because Shooter needed certain things to happen in the story—the Legionnaires get captured, Sun Boy arrives to save the day—he has the characters do things that fit the needs of the plot rather than behaving in credible ways. 

Perhaps we should give Shooter a pass for being so young when he wrote the story (and, indeed, his talents as a writer are well evident here); however, Shooter had an adult editor, Mort Weisinger, who should have known better.

In my next post, we’ll talk about the other story, published a mere few months earlier, in which the writer gets the balance between character and plot just right.

How To Avoid Writing a “Travesty”: What Avengers # 200 Can Teach You

Image via Wikipedia

Characters and Images © and ™ Marvel

What can a “travesty” of a story teach you about writing?

A lot, actually.

That word has been used to describe “The Child Is Father To . . .?” from Avengers # 200 (October 1980).

Fans throw words like “travesty” around all the time, but this condemnation comes from one of the story’s alleged co-writers, Jim Shooter.

Shooter (who was also then editor-in-chief of Marvel Comics) disavows any memory of working on or approving the story, but he agrees with fan opinion that the “The Child Is Father To . . . ?“ is both a "travesty" and “heinous”. 

And with good reason: the story features the kidnapping and seduction of a super-heroine, who is forced to give birth to her own abuser and then runs off to spend all eternity with him in limbo.

As someone once said, “Eeeew!”

But our disgust factor doesn’t begin to do the story justice.  When a sequel was published a year later, in Avengers Annual # 10, we learned just how flawed our heroes can be, how they took the villain’s account of things at face value, and how they unthinkingly betrayed one of their own.

Yet for all those reasons, Avengers # 200 can teach you to look at your own stories in a different way.

Earth’s Dumbest Heroes?

The story and its sequel are discussed in depth here.  A brief recap: The Avengers, billed as “Earth’s Mightiest Heroes,” is a team that includes three of the Marvel Universe’s most popular heroes, Captain America, Thor, and Iron Man, along with fan favorites such as The Vision, The Scarlet Witch, Hawkeye, The Beast (who graduated from the X-Men),  and . . . Ms. Marvel.

Never heard of Ms. Marvel?  Originally a supporting character named Carol Danvers, she was given powers and her own series in the 1970s to capitalize on the Women’s Liberation movement and the popularity of “Ms.” as a form of address.

But in 1980, with the Reagan Revolution just around the corner and the country starting to swing toward Conservativism, “Ms.” seemed like an antiquated title.  One article I read years ago theorized that this was the reason she had to be removed from The Avengers.

And removed she was.  In Avengers # 198, she discovers she’s pregnant in spite of insisting there can be no father (apparently, the word “virgin” was taboo in comics in those days).  In three days, she carries the baby full term and gives birth in Avengers # 200.

(Avengers # 200, by the way, lists four writers: David Michelinie as the main writer, and Shooter, George Pérez, Bob Layton, and Michelinie as co-plotters.  Art is by Pérez and Dan Green.  If you’re going to create a travesty, it’s a good idea to spread the blame around.)

 

The child grows at an accelerated rate and reveals himself to be Marcus Immortus, a resident of the dimension known as limbo.  Marcus says he kidnapped Ms. Marvel from our world, impregnated her with his own essence, and returned her to earth so he could be born on earth and leave limbo forever.

However, Marcus’s presence on earth disrupts “the local time stream,” causing dinosaurs and medieval knights to appear in the present day.  When it becomes clear that Marcus cannot remain on earth, he tearfully agrees to return to limbo, alone.  But wait!  Ms. Marvel says.

Dim feelings from their brief “relationship” in limbo and the fact that she’s given birth to him have caused her to “feel closer” to Marcus than anyone in a long time.  Deciding this is “a relationship worth pursuing,” she abandons her life on earth and returns to limbo with him. 

Though puzzled by her decision, the Avengers go along with it.  Thor even provides the “happy couple” transportation back to limbo.

The article linked to above analyzes the problems with this story. 

But what can you as a writer take from it?  Five things . . .

1. Examine your own assumptions.  The writers of Avengers # 200 apparently did not do this.  They treat Ms. Marvel as a stereotypical female comics character of those days:  She makes a life-changing decision based on feelings of the moment and a need to "feel close" to someone.  She leaves behind her career and her friends to be with her man  –  a man who kidnapped and impregnated her without her knowledge. 

Did the writers intend to write a story that justifies rape?  Probably not.  More likely, they didn’t examine their own assumptions regarding women. 

Most writers find it difficult to write characters who are not like them – whether the character is of a different sex, race, religion, or whatever.   This can result in stereotypical, flat, and demeaning characters.

This difficulty is perfectly normal and human.  That’s why writers do research.

2. Look beyond the surface of your story.  In the sequel, Carol sharply criticizes the Avengers for taking everything Marcus said at face value.  Unfortunately, many writers do the same with their own stories.  They finish the first draft and think it’s brilliant.

Drill deeper.  Write multiple drafts.  You may be surprised what you uncover.

3. Heroes (and writers) have feet of clay.  This point seems less shocking today than it did 30 years ago.  The media is all over our political leaders and celebrities every time they screw up.  In some ways, we’ve gone to the opposite extreme by seeing heroes as imperfect specimens whose flaws are just waiting to be exposed.

Even so, it’s worth noting that The Scarlet Witch comes to realize that she not only failed her friend, but that she is capable of such a failure.

All writers are capable of writing a “travesty”.  Don’t delude yourself into thinking otherwise.

4. Own up to your mistakes.  The Avengers walk away in the sequel with egg on their faces.  It’s not a very heroic depiction, but it is necessary for them to face “harsh truths” about themselves so they can “emerge stronger” the next time a challenge presents itself.

Likewise, facing up to your own weaknesses may be the hardest thing you'll ever do.  But it's necessary if you want to grow as a writer.

5. Life is not fair, and our actions have consequences for others.  The sequel, written by Chris Claremont, brilliantly depicts this, as the former Ms. Marvel confronts the Avengers over how their actions have led to her present circumstances.  Yet despite losing everything  –  including her powers and memories  –  Carol Danvers is determined to carry on.

As writers, we may think our stories are meant merely to entertain the reader.  But stories have much deeper effects on readers – particularly young readers.   A wonderful essay entitled “Lucy, You Have Some ‘Splainin’ To Do” by Nicole Benbow examines the depictions of working women in the 1950s sitcom I Love Lucy and how they – unintentionally, perhaps – reinforce the notion that women are not cut out to hold jobs.

Your stories convey messages to readers whether you intend them to or not.

You cannot control what messages the reader takes away from your story.  But you can control what messages you send.

Work Cited:

Benbow, Nicole.  “Lucy, You Have Some ‘Splainin’ to Do.”  The Writer’s Way by Jack Rawlins and  

     Stephen Metzger, 7^th ed.  Boston: Houghton Mifflin, 2009. 336-41. Print.