Entrepreneurs are builders. When most entrepreneurs start, their default mentality is that they will start small and become their own “craftsman.” We remain fiercely committed to building from the ground up. Imagine the day we have two employees, ten employees. One hundred employees. Even the term “startup” embodies the notion of building something from the ground up.
Look at competition and success from a different perspective. Take some of the time, effort and resources normally devoted to your product, and direct them to finding the right “playground”—one where you can maneuver and gain visibility that cuts through the noise. Imagine if your effort was not spent on Release #10 of your software or your ninth perfume bottle design, but on the distribution channels that will value Release #5 or bottle design #8, and the niche markets where that value has room to be unique. What is often inferior on one playground is superior on another. The uniqueness of your solution is important. It might be even more important to go to playgrounds where no one else is playing.
Advertising and information overload is the norm. Whether you’re battling to reach consumers inundated with an endless set of choices for virtually each product or service, or corporate buyers overwhelmed by the number of potential solutions they review, it is almost impossible to cut through the noise. Cutting through this clutter, even with something head-turning and new, can be difficult.
Whether it is bourbon, working out, yoga, meditation, spending time with your family or going to the movies alone, you need your release. When we are wrapped up in our own world, it is difficult to see beyond our four walls. When you break a sweat, or think about the sacrifice of others, or see a child smile, your brain takes a break. It stops focusing on all of the things on your plate (and all the things you are not getting to). Give your brain a well-deserved time out and it will really clear your head. This leads to new ideas, new ways of thinking and new, often more creative solutions to problems. Find your release and make it a part of your week.
You will be evaluating a consultant who seems to have a lot of experience and isn’t that expensive. He can also start right away. Our first thought is, “Wow, someone who we can afford and who is available?” Do you ask yourself, “If he is good, why is he cheap and why is he not working?” Of course not. We want to believe.
Think of yourself as part of the product or service you are delivering. If the diamond in your jewelry wasn’t holding, wouldn’t you change the setting? If your consulting services were too expensive, wouldn’t you change the price? If your wearable device didn’t transmit the right data, wouldn’t you change the technology? It is no different with you. Especially with the strain you are under and the constant presence of pressure, passion, pleasure and pain, you need to be better, faster and stronger. These rules will help you build a better product to serve customers, employees, investors and you.
Hitting the Pillow Means Sleep. When you put your head on the pillow at night, don’t waste time thinking about problems you can’t fix at that moment. When you are lying in bed, there is nothing you can do about your company’s issues. Once you decide to sleep, don’t think about the business. Find your version of counting sheep. I used to let my mind wander to a college baseball game or to a childhood memory. Regardless of your version of the strategy, make the commitment that once you put your head on the pillow, you are not going to waste time on things you can’t impact.
Identifying where your skills can be supplemented or complemented can quickly accelerate your company’s growth. Once you recognize these areas, you can plan accordingly. Look for a variety of resources whose experience balances yours. Find support from specialists or those with extensive experience in an area you are lacking. Their ease and efficiency will translate into your own effectiveness. Identifying where you need help; being candid with yourself and your constituents is not a weakness, it is a strength. Leaders who recognize their deficiencies and encourage others to do the same, gain respect, solve business issues more efficiently and set the foundation for well-run companies. There’s also a good chance your day will be much more enjoyable.
There are areas of the business that we could work at endlessly and never get tired - these parts of the business bring genuine enjoyment, fulfillment and your best ideas. There are other parts of the business that you dislike or even dread. These areas can be as draining and debilitating as others are energizing and enjoyable. Finally, there are parts of the business that need to be done, and while you are capable of the work, you’re just not cut out for it. Unfortunately, entrepreneurs often don’t realize their deficiencies in this area. If the company needs someone to set priorities, develop a sales plan, create an investment package or determine a sales approach, and you have little experience or capability in these areas, your insistence that you take the lead can set the company back. If the bottom line is seeing results, applying a good “college try” can actually hamper the ability of the business to get the resources it needs.
While each day can be different, the fundamental elements of any business are the same—sales, marketing, operations, finance, people, etc. Establishing processes to deal with the common issues of a business seems like a waste of time to most entrepreneurs. Process is the fuel that energizes progress, yet many entrepreneurs view process as a dirty word reserved for General Electric and Six Sigma classes.
What does it mean to have a plan? It comprises three components - strategic plan (which sets your strategy), financial plan (which sets your financial goals and performance) and operating plan ((that details how the company will align its efforts to achieve the financial plan and the overall objectives of the company.
Imagine that the date is five years from now. Where do you want to be? Will you be running a business that hasn't increased significantly in size? Will you command a rapidly growing empire? Will you have already cashed out and be relaxing on a beach somewhere, enjoying your hard-won gains? Answering these questions is an important part of building a successful plan.
Most entrepreneurs are in a state of chaos. Everything needs to be done at the same time. Financing, people, product, customers, business models, technology, operations, finance, cash and the list goes on. Entrepreneurs are in a constant state of hole plugging because you lack financial and human resources. That is the nature of the beast. But what you can change is how you manage the overlapping tasks that are demanding to get done.
Any well-run business will have clear and defined long term goals that set the direction of the company and short term objectives that drive those long term goals. These are important to the entrepreneur as they clarify the purpose of the business and help identify necessary actions. For entrepreneurs, your long-term goals must encompass not only the goals for the business but your personal long-term goals. So when reading this lecture, keep in mind that the long-term goals for the business should take your personal goals into consideration.
In the early stages of a business, you often have two simultaneous problems that affect the efficiency of your sales process. First, it is often the founder or management team that are the only ones that understand the nuances of your market. Second, because you are arguably providing a unique product or service, your target market or the use of your product or service may be undefined.
Your goal is to hit your revenue number - whether it is just you or a team. While you do that, there are a few key metrics that will identify trends related to your sales that provide insights into efforts.There are certain key metrics that are indicators that your sales process is on or off track. Keep an eye on these metrics and ask yourself the following questions as you look to improve your sales process.
You have to put in place the tools to manage your sales efforts. This consists of what is called either a "customer relationship management (CRM) tool" or a "pipeline management tool." It essentially is a single location that manages all your potential sales opportunities, Your pipeline is the sales process that consists of all the sales steps (called stages) you need to take to turn a person or business into a paying customer. It starts with them being a "lead" or "prospect" (someone who has shown interest in your product or service) and moving them through the sales stages to turn them into a customer.
Setting your sales goals is a fundamental step in being able to set up day to day efforts - whether it is just you or a team of people - to take actions that improve your chances of success. There is nothing more indicative of a well run - or poorly run - company than how it sets its goals and manages to these goals.
Every entrepreneur seems to believe that every consumer or business needs our product or service. As a result, when we look for new customers, called prospecting, we tend to spread our energy around without really focusing in on who is our unique customer and how to we find them.
When you are getting started, you know you need help but often don't have the money to pay employees. Every entrepreneur faces the question of how to pay employees during the startup stage when money is tight and the business has yet to prove itself.
Advisory boards can be an invaluable source of insight. Think of an advisory board as a collection of mentors that can provide individual expertise, provide you a sounding board for ideas, give you advice, introduce you to valuable contacts, and tell you when you’re potentially making a mistake.
Of course you want to limit your expenses in the beginning. That being said, you must know yourself and understand if working alone in your apartment or home office is going to make you productive. This also does not need to be an all or nothing decision - you can work from home some days and then have a part time office option on other days. When you read the options we have outlined here, keep in mind that keeping yourself focused and productive is just as important as the dollars.
Over 70 percent of U.S. businesses are owned and operated by sole proprietors or sole traders. But what does being a sole proprietor involve and is it the right structure for your small business? Here’s what you need to know about the advantages and disadvantages of being a sole proprietor.
Whether you want to open a bookstore in Texas or launch a Web design company in Oregon, it's possible to see exactly how existing companies have done it and truly plan for business in the real world. Here are a few principles to consider when planning your startup's finances:
Until you actually make the entrepreneurial leap, it is hard to completely prepare you for the journey. But we can go into it with some perspectives and tactics in mind that give us a better chance for success. Embracing the journey and the desire to improve as an entrepreneur will be critical to your success.
