I'll share my thoughts on the age-old saying, "Employees don't leave jobs; they leave managers," and why that doesn't always cover the full spectrum of reasons why people move on. Together, we'll explore the nuances of job satisfaction, the desire for new challenges, and the pursuit of career progression.

I've seen firsthand how flat organizational structures and career blockers can stagnate growth. In this episode, I'll offer some practical advice on how to navigate these challenges. We'll discuss lateral moves, realistic career discussions, and creating a culture that values each contribution.

Whether you're struggling with this issue or just preparing for the future, I'm here to walk you through it. And remember, if you're facing a tough business dilemma, feel free to reach out to me on my website, Jeremygraycfo.com, or my companion site, my3cc.com. I'm eager to hear from you and possibly help you find the solution you need.

So sit tight as we get right into the heart of retaining top talent. After all, isn't that a key part of building the business you truly desire?

Being an entrepreneur is an incredible journey, but it can also be lonely. Lack of support from family and friends and the overwhelming responsibility of managing various aspects of the business can leave entrepreneurs feeling isolated and disconnected.

But fear not, because I provide practical solutions to help you overcome loneliness and build a supportive network in this episode. Here are 3 key takeaways from the episode:

🤝 Seek Like-Minded Entrepreneurial Communities: Connect with other entrepreneurs who understand the challenges you face. Whether it's joining a co-working space, attending industry events, or participating in online forums, surrounding yourself with like-minded individuals can provide invaluable support and motivation.

👥 Hire Freelancers for Task Delegation: Don't try to handle everything yourself. Focus on your strengths and delegate tasks that can be outsourced. Platforms like Upwork provide access to talented freelancers who can help with various aspects of your business, saving you time and reducing overwhelm.

🥋 Embrace Self-Doubt as a Catalyst for Growth: Self-doubt is natural, especially when facing challenges or unfamiliar territory. Instead of letting it hold you back, use it as a catalyst for improvement. Critical self-assessment and approaching ideas from different angles can lead to stronger outcomes. Embrace the journey of growth and improvement.

Remember, you are not alone on this entrepreneurial path. Tune into the latest episode of Practical Solutions to Difficult Problems to gain insights, strategies, and practical advice to overcome loneliness and thrive as an entrepreneur.

1️⃣ Visionary, Hustler, and Hacker: The golden triangle of a successful founding team. Every startup needs a visionary to inspire, a hustler to motivate, and a hacker to turn the vision into a reality. Don't underestimate the importance of having these roles covered in your startup!

2️⃣ Importance of Hiring Right: Hiring the right team members is crucial to the success and growth of your business. Cutting corners on staff quality can have detrimental consequences, while investing in the right talent pays off. Take the time to identify necessary skill sets, consider outsourcing and creatively hiring within your budget.

3️⃣ Overcoming Isolation: Building a startup can be a lonely journey. In our next episode, we'll address the issue of isolation and loneliness that entrepreneurs often face. Stay tuned to find out practical ways to overcome this challenge and connect with like-minded individuals.

If you're an entrepreneur seeking practical solutions to difficult problems like these, this podcast is for you! Join me, Jeremy Gray, at "Practical Solutions to Difficult Problems" on iBGR Network, as we equip you with the tools and insights to overcome challenges and grow your business. Don't hesitate to reach out with your burning business questions!

1️⃣ Utilize unused warehouse space: With the growth of ecommerce sales and supply chain shortages, renting out excess warehouse space can be a great way to generate income. OnDemand warehousing platforms match individuals with extra capacity with companies needing storage. It's a win-win situation!

2️⃣ Cut smart, not deep: If reducing headcount becomes necessary, it's important to approach it strategically. Focus on preserving shareholder value rather than just slashing costs. Consider the impact of each cut on your small business and explore options like toll manufacturing to optimize resources.

3️⃣ Communicate and collaborate: In times of crisis, effective communication is vital. Keep all stakeholders well-informed about the situation and your action plan, including employees, customers, suppliers, and investors. Gather your top resources and consider hiring a facilitator to brainstorm ideas for business survival. Open and transparent dialogue is key! Tune in to the latest episode of our podcast and discover practical solutions to cash flow problems and headcount management. Remember, challenging times require innovative approaches! 💡

Key takeaways from this episode:

1️⃣ Plan, plan, plan: Developing a comprehensive plan is the first step in fixing cash flow problems. It's like ensuring your business has enough fuel to keep running. With the right plan, you can navigate through difficult financial situations and find the best solutions for your unique circumstances.

2️⃣ Alternative funding sources: Banks may not always be the answer when you need immediate cash. Consider approaching original backers, exploring crowdfunding platforms, or seeking other sources of funding. In this episode, we discuss the benefits and potential pitfalls of these alternative financing options.

3️⃣ Prioritize and communicate: When the cash crunch hits, it's important to prioritize payments to suppliers and maintain open lines of communication. Having multiple suppliers for key materials/services can provide flexibility, and working closely with preferred suppliers can keep your business afloat during challenging times.

Tune in to this episode of "Practical Solutions to Difficult Problems" and gain valuable insights on assessing the situation in your business and finding practical solutions to overcome financial hurdles. Don't let a cash flow problem hinder your success!

Listen now on your favorite podcast platform or visit my website for more information.

Here are the key takeaways from this episode:

1️⃣ Dynamic Pricing: Pricing should be dynamic, changing based on the marketplace and competitors. Avoid the common mistake of setting prices too low. Learn how to navigate the complexities of pricing structures and understand that the value of a product or service is determined by what customers are willing to pay.

2️⃣ Revenue Enhancement: Discover how improving revenue can enhance profitability. Explore the impact of production costs and overheads on your bottom line. Be sure to check out our previous episode on revenue improvement strategies to complement your learning.

3️⃣ Overcoming Challenges: Overcoming pricing mistakes can be challenging, but not impossible. Learn how to identify pricing errors and fix them by examining sales performance, considering various factors in pricing, and aligning with revenue goals. Gain insights into important pricing considerations such as brand positioning, broader demand, and marketing objectives.

Are you ready to master the art of pricing strategies and optimize your profitability? Tune in to this episode of "Practical Solutions to Difficult Problems" and gain valuable insights from industry experts!

💡 Here are 3 key takeaways for you:

1️⃣ Cash flow is king: Understand your burn rate and how it affects your financial health. By regularly monitoring your cash flow, you can identify potential profitability issues and take prompt action to avoid a dwindling bank account.

2️⃣ Smart cost reduction strategies: Instead of blindly cutting costs, be strategic in your approach. Evaluate areas where expenses can be trimmed, like terminating underperforming employees or reviewing expenses. However, making decisions based on facts and preserving talent within the organization is crucial.

3️⃣ Marketing within your means: Marketing is crucial for small businesses, but it can also be expensive. Design a marketing campaign that aligns with your budget and target audience. Utilize cost-effective channels like social media and optimize SEO to reach your target customers without breaking the bank.

Don't miss out on these practical solutions to control your overheads! Tune into our latest episode now for more insights and advice.

Here are three key takeaways from this episode:

1️⃣ Understanding your production costs is crucial: Whether you're manufacturing physical items, providing services, or selling software, it's essential to know the cost of production. This knowledge allows you to conduct a breakeven analysis and determine the number of units you need to sell to cover all costs.

2️⃣ Consider alternative manufacturing methods: Exploring options like white labeling and toll manufacturing can help reduce operational costs. While white labeling may be slightly more expensive than toll manufacturing, it offers cash flow benefits. However, maintaining quality control when using toll manufacturers is crucial, as you won't be their only customer.

3️⃣ Optimize your product offerings: Not all features add value to your products. Evaluate which features are essential and eliminate those that don't deliver enough value for their cost. Additionally, consider reducing the number of products offered to save costs and potentially increase profitability.

So if you're looking for practical solutions to reduce production costs and improve your bottom line, tune in to "S14 E14 Production Costs" on your favorite podcast platforms. And if you missed our previous episode on revenue improvement, it's still available for your listening pleasure.

1️⃣ Analyze your financials: Prompt access to up-to-date financial information is crucial for making effective decisions. By eliminating jargon and analyzing financial statements, you can gain valuable insights into your business's performance and identify trends and areas of weakness.

2️⃣ Focus on profitability: Remember, revenue is vanity, profit is sanity, and cash is reality. Falling profitability should raise a red flag, even if revenues are steady. Take control of production costs and overheads to improve profitability, and ensure your business is on a steady path towards growth.

3️⃣ Manage your working capital: Working capital is your lifeline, but it can tie up cash if not managed effectively. Negotiate better payment terms with suppliers, encourage prompt customer payments, and streamline your inventory management to keep your working capital in check.

Don't miss out on these practical solutions to improve your financial management skills. Tune in to the new episode now and gain valuable insights from industry expert Jeremy Grey at Jeremygraycfo.com. Your business success starts with understanding your financials!

Here are 3 key takeaways from this episode:

1️⃣ Customer Retention is Key: Many entrepreneurs focus on acquiring new customers, but neglect the existing ones. By focusing on customer retention, you can ensure a steady stream of revenue, build brand loyalty, and even acquire new customers through positive word-of-mouth marketing.

2️⃣ Fine-Tune your Pricing Strategies: Monitoring your competitors' prices and adjusting yours accordingly is essential in today's competitive market. However, simply matching prices is reactive. Instead, offer unique value to your customers that they are willing to pay for. Explore tailored discount programs, time-based discounts, and incentives to attract and retain customers.

3️⃣ Be Proactive with Pricing: Instead of solely relying on competitive pricing, aim for a value-based pricing strategy. This involves setting prices based on your customers' perceived value of your product or service. By understanding and delivering on your customers' needs and expectations, you can create a loyal customer base and stay one step ahead of the competition.

Don't miss out on these practical solutions! Tune in to our latest episode on customer retention and pricing strategies to gain valuable insights and enhance your business success.

Key Takeaways from this episode:

1️⃣ Focus on Creating Efficiencies: Instead of reducing prices, concentrate on internal improvements within your operation. Look for ways to enhance quality, streamline processes, and deliver exceptional value to your customers. This will help you maintain or even increase your prices without compromising customer satisfaction.

2️⃣ Adding Value is Key: Rather than engaging in a race to the bottom by lowering prices, consider differentiating your offerings by providing additional benefits. Think loyalty programs, exceptional customer service, or complementary products/services. Adding value allows you to attract and retain customers without resorting to price reductions.

3️⃣ Prioritize Profitable Growth: When pursuing growth, it's essential to prioritize profitability. Identify your most profitable customers or market segments and tailor your strategies accordingly. Understanding customer needs, conducting market research, and targeting the right demographics are critical components of achieving profitable sales growth.

Ready to unlock practical pricing insights? Tune in to the latest "Practical Solutions to Difficult Problems" episode now! 🎙️ And, if you're looking for expert advice on pricing strategies for your business, Jeremy Gray is here to help at Jeremygraycfo.com. 

In this episode, we discuss the importance of market share analysis, total addressable market (TAM), and the impact of market conditions. Here are three key takeaways for our listeners:

1️⃣ Comparing market share: Assessing your market share can provide valuable insights into your performance and help identify areas for improvement. By benchmarking yourself against competitors, you can stay competitive and adjust your strategy accordingly.

2️⃣ Total addressable market (TAM): Understanding the size of your potential market is crucial in planning marketing efforts, assessing demand, and determining pricing strategy. While achieving 100% market share may be challenging, estimating TAM can help you gauge your revenue opportunity.

3️⃣ Market conditions matter: It's essential to consider market conditions when analyzing a drop in sales. Factors like seasonality, economic trends, and consumer behavior can all contribute to fluctuations in revenue. Understanding these influences allows you to adapt your business strategies to thrive in changing circumstances.

If you're interested in learning more about these key insights or want practical solutions for your business challenges, make sure to tune in to the latest episode of Practical Solutions to Difficult Problems. 

In this episode of Practical Solutions to Difficult Problems, we dive into the art of presenting your pitch deck to venture capitalists and angel investors. Join us as we share practical tips and strategies to help you make a lasting impression and secure the funding you need for your startup.

Key takeaways from this episode include:

- Visual cues matter: VCs make snap judgments based on visual cues, so make sure your pitch deck is visually appealing and impactful.

- Passion speaks louder than words: Show your enthusiasm, engagement, and energy during your presentation to demonstrate your commitment to entrepreneurial success.

- Preparation is key: Practice your pitch in front of reviewers to get honest feedback, anticipate potential questions from investors, and have a well-thought-out slideshow that speaks to potential investors.

If you're looking to excel in the competitive world of startups, tune in to our latest episode on Practical Solutions to Difficult Problems. Don't miss out on the valuable insights that will help you present your pitch deck like a pro.

Here are 3 key takeaways from this episode:

1️⃣ Paint a vivid picture of the future and sell the dream: The key to effective storytelling and fundraising is to not only present data but also use artistry to convey your vision. Engage your audience's emotions and excitement by showing them the remarkable possibilities your idea holds.

2️⃣ Don't forget the executive summary: It may be challenging to include all necessary details in a pitch deck, but the executive summary is crucial. Separate it from the slide deck and provide a traditional textual summary or attach a one to three-page document. This ensures interested parties can easily access the summary and supplementary information.

3️⃣ Your business narrative matters: The 'why' of your business story is crucial in captivating and persuading others to join your journey. Share personal encounters and examples that resonate with investors. Craft engaging characters (team, co-founders, customers, and employees) to captivate attention and make your story unique.

4️⃣ Include a timeline and milestones: Investors need to understand the trajectory of your business. Rather than a traditional linear timeline, present it as an arc that reflects current progress and future aspirations. Highlight major milestones completed, key accomplishments, and upcoming events/goals.

5️⃣ Visualize your team: Introduce your core team membersRemember, stories are remembered 22 times more than facts alone. Don't miss the opportunity to create an engaging business narrative that sets you apart and turns potential investors into co-creators!,

Tune in to this episode of "Practical Solutions to Difficult Problems" with Jeremy Gray to learn more about how to make your pitch deck a compelling story that secures funding.

Key Takeaways:

1️⃣ Standalone Strength: A pitch deck must shine even in the absence of a presenter. We'll share tips on how to make your deck compelling and grab investors' attention.

2️⃣ Simplicity is Key: Keep it simple and utilize white space strategically. We'll show you how to craft a clean, engaging pitch deck that highlights your startup's unique solution.

3️⃣ Do's & Don'ts: From avoiding NDA requests to showcasing your team's strengths, we'll cover the crucial do's and don'ts of creating an effective pitch deck that investors will love.

Can't wait to hear more? Tune in to Season 14, Episode 6 of Practical Solutions to Difficult Problems to discover all the insider secrets of pitch deck success. Stay one step ahead in your fundraising journey!

Don't forget to join us for episode 7 as we discuss how to write an executive summary that tells a captivating story. A rock-solid executive summary is essential when presenting to busy individuals with limited time. Stay tuned for more practical solutions!

Remember, crafting a compelling pitch deck is crucial for securing funding and launching a successful business. So, utilize visuals, make those key slides impactful, and leave out unnecessary details. Let's make your pitch deck look professional and grab investors' attention!

To learn more about this and upcoming episodes, and to schedule a 30-minute phone call, head over to Jeremygraycfo.com. Get the expertise you need to navigate the funding landscape successfully and achieve your entrepreneurial dreams..

#iBGR #Podcast #PitchDeck #Funding #Entrepreneurship #Startups #PracticalSolutions #JeremyGrayCFO

1️⃣ Pitch decks are ideal for attracting angel investors and venture capitalists, as they review them quickly in just under 3 minutes on average. So make your pitch deck captivating from the start to grab their attention!

2️⃣ While pitch decks are great for securing funding, business plans are still considered the industry standard for presenting strategies, especially when seeking lending from a bank. Don't overlook the importance of having a solid business plan in your corner.

3️⃣ A pitch deck is not just for investors! It can also be a powerful tool to recruit early and key team members for your business. Demonstrate your seriousness, organization, and viable plan through a clean and compelling pitch deck to attract top talent.

We understand that creating the perfect pitch deck can be challenging and time-consuming. That's why we recommend utilizing all available resources, such as free templates from the internet or freelance platforms like Upwork, to save time and stress. Don't forget to focus on the content and leave the graphics to a skilled graphic designer if needed.

Whether you're an entrepreneur, investor, or simply interested in the world of business, this episode is a must-listen! And if you missed our previous episodes on creating a business plan, you can find them on your favorite podcast provider. Don't forget to subscribe if you enjoyed this episode and stay tuned for our upcoming episodes on creating effective pitch decks.

Remember, with creativity, planning, resources, and execution, you can create the perfect pitch deck that will make a difference between success and failure. If you need further guidance or want to delve into the fundamentals of financial work, feel free to reach out to Jeremy Gray at Jeremygraycfo.com. He's here to help you save money on your projects and ensure your pitch deck shines.

📝 Here are three key takeaways from this episode:

1️⃣ Craft an Engaging Executive Summary: The executive summary is a crucial part of your business plan. It should showcase your future plans, growth strategies, and market expansion opportunities. Think like Dropbox - initially targeting a niche market then expanding their customer base to increase sales. Spark curiosity about your goal to create a better everyday life for many people, just like Ikea.

2️⃣ Benefit from the Power of Mentors: Seek guidance from mentors who can offer perspective, honest feedback, and valuable insights from their own successes and failures. However, avoid relying on family and friends, as they may tend to tell you what you want to hear rather than what you need to hear. Remember, a strong team executing the plan is what investors want to see!

3️⃣ Master Your Marketing Strategy: Crafting a well-planned marketing strategy is crucial for business success. Identify your target audience and use digital marketing techniques on platforms like LinkedIn, Facebook, and YouTube to reach potential customers effectively. Remember to analyze and evaluate the effectiveness of each channel using analytical tools.

🎧 Tune in now to the full episode on our podcast, "Practical Solutions to Difficult Problems," to gain further insights and practical advice on writing an irresistible business plan to secure the funding you need! And remember, if you need any assistance or have any difficulties along the way, don't hesitate to reach out to the speaker, Jeremy Gray. He's available for a complimentary 30-minute consultation to help you overcome challenges.

Listen on your favorite podcast platform or reach out to Jeremy via his website, jeremygraycfo.com, or connect with him directly on LinkedIn (just mention you heard him on our podcast!). 💼💡

Let's ace that pitch and secure the funding your business deserves! 💪💰

Get ready to gain valuable insights that can make a significant difference in your business!

Here are 3 key takeaways from this episode:

🔹 Simplify the process: Make contingency planning easier by using templates or software, seeking guidance from consultants, or prioritizing critical operations.

🔹 Mitigate risks: Identify and prioritize risks based on their potential impact and probability. Develop a well-structured risk management plan and allocate necessary resources for each identified risk.

🔹 Maintain business continuity: Contingency planning is crucial for businesses of all sizes. It helps to protect your reputation, maintain relationships with customers and suppliers, and ensure quick recovery from unexpected events.

Don't miss this episode where we discuss how you can effectively plan for and navigate through potential setbacks with confidence and resilience.

In week's episode of "Practical Solutions to Difficult Problems," our speaker, Jeremy Gray, dives into the important topic of preparing a financial forecast.

Here are 3 key takeaways from this informative episode:

1️⃣ Importance of the Financial Forecast: A financial forecast plays a crucial role in the success of your business. Lenders use the forecast to assess your business's financial health and willingness to extend credit. Make sure to give this section the attention it deserves!

2️⃣ Metrics to Measure Cash Flow: Days on Hand (DOH), Days Sales Outstanding (DSO), and Days Payable Outstanding (DPO) are important metrics to measure inventory, accounts receivable, and accounts payable. Knowing and managing these metrics can have a significant impact on your cash flow.

3️⃣ Working Capital and Cash Focus: Working capital, consisting of inventory, accounts receivable, and accounts payable, ties up money that could be used for growth and investment. Managing working capital efficiently is key to demonstrating business efficiency and cash focus.

Catch this insightful episode on our podcast or radio station to gain valuable insights and practical tips from Jeremy Gray. You can also schedule a 30-minute phone call with Jeremy on Jeremygraycfo.com for additional information and guidance.

Remember, the objective of "Practical Solutions to Difficult Problems" is to empower individuals to do the work themselves and avoid hiring expensive professionals. Don't miss out on this opportunity to improve your financial forecasting skills and secure funds for your business growth! 💼💸

Stay tuned for the next episode on contingency planning in business. 🚀

#Podcast #BusinessFinances #FinancialForecast #BusinessTips #CashFlow #PracticalSolutions #Entrepreneurship

Here are 3 key takeaways from this episode:

1️⃣ Identify and fulfill your customers' needs: People buy for three main reasons - to save time, save money, or feel good about themselves. Your product or service should aim to fulfill one or more of these needs. Emphasize the benefits it offers to your ideal customers and how those benefits are delivered.

2️⃣ Conduct a competitive analysis: Researching and analyzing your competitors' offerings is crucial to understand the market landscape and identify gaps. Learn from their successful strategies and areas where they fall short. This will help you differentiate your company and tailor your product's benefits to meet the specific needs of your customers.

3️⃣ Craft a well-structured business plan: Your business plan should include information about your products or services, target market, financial projections, and competitive advantages. Testing assumptions and ensuring there is customer interest before preparing the plan is vital to avoid failure due to lack of demand.

Join us for this insightful episode and learn how to navigate the world of business plans to secure the funding you need. Listen now on your favorite podcast platform!

Don't forget to share your thoughts and experiences with us.. Your feedback is invaluable and helps us bring you the most practical solutions to difficult problems.

🔸 SWOT Analysis: Conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is crucial in evaluating your business. It identifies advantages over competitors, areas for improvement, potentials for success, and potential negative impacts. Alternative analyses like Advantages Disadvantages Chart and PESTLE can also provide valuable insights.

🔸 Mission and Vision Statements: Writing a mission and vision statement is essential for setting a successful strategic direction. It captures the overall purpose of the organization and outlines how targets will be achieved. A clear vision can motivate employees and guide decisions about resources, staffing, financial targets, and operations.

Strategic planning is not just a one-time exercise but an ongoing process that needs to be continuously evaluated and adjusted. If you're looking to quadruple your business and achieve financial independence, this episode is a must-listen.

In this episode, I will share tips that can help you achieve sustainable growth as an entrepreneur. I hope that these tips can inspire you to take your business to the next level, and make it successful in the long-term.

1️⃣ Carefully Choose Your Co-Founders: It's crucial to have a clear understanding of your co-founders' values, work ethic, and commitment to the business. Don't assume that personal relationships will automatically translate into a successful business partnership. Conduct honest conversations and involve significant others to avoid potential conflicts down the road.

2️⃣ Beware of Family Founded Companies: While launching a business with family members might seem like a great idea, it can raise concerns among potential investors and employees. The perception of favoritism and potential issues with decision-making can create tensions within the company. It's essential to be aware of these dynamics and address them proactively.

3️⃣ Loss of Control with Funding: As your startup attracts investors and secures funding, be prepared for the possibility of losing control of decision-making. Ownership percentages don't guarantee control if you fail to deliver on your commitments. Stay focused on fulfilling your promises and maintaining a strong grip on the direction of the business.

Listen to the full episode to gain more insights into building a successful startup team and avoiding common pitfalls. Link to the podcast in the comments below!

CB Insights a market intelligence platform analyzed why 110 Tech Companies failed. 

The second most common cause of failure was that there was no demand for the product or service.  

I cannot imagine anything more soul-destroying than finding there is no demand for your beloved product or service.

How can you avoid spending hours and money developing your business only to find that no one, or at least not enough people, wants your product or service? Lisen and find out,

Learn how you avoid getting outcompeted and how you get a vote in your competitor's strategy.

What does a flawed business model look like? Simply put, a flawed business plan does not allow you to make enough revenue to cover your costs and deliver a decent return on your investment. 

Learn how to be sure your business model will deliver the results you want. Understand the mistakes others have made from start-ups to major corporations to avoid making the same mistakes. Apply a simple test to be sure your business model makes sense,

Looking back Sunil could point to several reasons why Triangulate failed. His top two were choosing the wrong market and not talking to the right people. The choice of dating for Triangulate’s first target market, Sunil says was his biggest mistake. “I chose dating because I like pinpointing what makes people tick; and it’s often not what people say.

Not talking to the right people. Based on his experiences with Triangulate Sunil advises entrepreneurs “Do not listen to other entrepreneurs or VCs. Do not listen to your professors; talk to potential customers. What they have to say is worth 100 times more,” He says I didn’t spend enough time getting into customers’ heads to understand their needs around online dating.

By now the metrics for the site were mixed. The user base was growing at over 40% month on month but user engagement was low, with only 27% of new users in California, the site’s target market, returning in the second week after they signed up. Also, there were no signs of the viral growth Sunil had predicted. He had anticipated that each new user would bring another 0.8 users with them. In reality, it was only 0.03 new users.

The team developed plans to increase engagement, virality, and revenue. Excited by their plans they hired a Chief Technology Officer and Chief Marketing Officer. Sunil planned to raise funds from a Series A round. But his board had other ideas. An investor/advisor who had launched an online gaming company told Sunil “When virality hits, it happens within a few months and you have had a few months” 

2️⃣ Numbers Tell the Story: Understanding your finances is crucial for growth and success. In this episode, we explore Triangulate's revenue, costs, and the implications of their runway. Learn from fractional CFO, Jeremy Gray, as he emphasizes the importance of diving deep into the numbers to make informed decisions that can shape your venture's future.

3️⃣ Failure as a Stepping Stone: Triangulate may not have achieved the success they envisioned, but they gracefully shut down the business without damaging their reputation or contacts. This episode sheds light on the importance of recognizing when to pivot, seek alternative funding options, or even consider selling the company. Join us as we explore how to turn failure into valuable lessons for future business ventures.

If you're eager to learn from real-life business cases, avoid common pitfalls, and uncover practical solutions to difficult problems, this episode is a must-listen! Tune in now and get ready to gain valuable insights from the experiences of Triangulate and its founder, Sunil Nagaraj.

But there are times when a start-up is breaking new ground and the regulators are playing catch up to the new realities. And this can, in extreme cases, destroy an entire marketplace.

Learn how disruptive companies fell foul of government regulations.

Learn about the common pricing mistakes that start-ups make and how to control your burn rate.

Building the right team requires correctly identifying the skill sets you need in-house, and understanding which can be outsourced. Then you must find and hire them. All while working within your start-up’s budget.

Start-up hiring is different; learn how to build the right team.

The story so far.

Founded by two Harvard Business School MBA graduates Christina Wallace and Alex Nelson. Quincy Apparel was going to bridge the gap between companies that offered affordable women’s suits, which in the words of Quincy’s business plan, “gape and hang like ill-fitting boxes,” and high-end brands that offered more fashionable suits at higher prices. Quincy would offer the high-end brands better fitting and feeling clothes at lower prices.

Quincy Apparel would follow a business model pioneered by two vertically integrated start-ups. Bonobos, which sold men’s pants, and Warby Parker, which sold eyewear,  both were achieving success both in the marketplace and in attracting investor interest. Both companies demonstrated that the direct-to-customer model could work in the fashion industry.

Quincy Apparel developed a new size system that allowed better-fitting clothes and tested the concept at a series of trunk shows. The trunk shows had proven to be a success; with 50% of young professional women attending making purchases averaging $350. These were not token purchases but a vote of confidence in the product and the fledgling company.

The company was about to launch its first season.

For full details of Quincy Apparel’s early day please read Quincy Apparel Part One.

Preparing for a hard launch.

The co-founders of Quincy Apparel recognized that offering multiple sizing options for each garment would add complexity to the production process and therefore result in higher costs. But they felt that the direct-to-consumer model, eliminating the wholesaler and retailer, would enable them to be cost-competitive. The fact that inventory would be held at a single location rather than multiple retail outlets would be a further advantage. Inventory management would be a challenge, so a two-step production process was developed. Large-scale production that took the garments to 80% of completion would be outsourced to larger factories. These semi-finished items would be stored at Quincy’s rented warehouse. The warehouse would do multiple duty as a showroom, and an office. When a customer placed an order, the garments would be sent to a finishing unit for the final sewing to complete the production process. The finished garment would be returned to Quincy’s warehouse for despatch to the customer. As production was based on actual demand the founders hoped to avoid the end-of-season markdowns that often erode profitability in the fashion industry. To put this in context, in 2022 Boston Consulting Group stated “Retailers around the world invest more than $1 trillion in their in-season and end-of-season markdown programs”

This is a business that should not have failed, But it did. Over four episodes we will learn how the business started and why it got into trouble. In the fourth episode, the reasons for the business's failure and how you can avoid the same mistakes will be discussed

Henry Ford

CB Insights survey of 110 Tech firms that failed found that 8% of founders blamed a poor product as a cause of their business downfall.

If industrial giants launch poor products, think New Coke, Google Glasses, and the Segway scooter, it is maybe a little surprising that this cause of failure ranks only number 8 on the list.

We can learn from these high-profile failures so we can avoid launching a poor product. Let’s start with New Coke. Even Coca-Cola’s own website asks the question “New Coke: The Most Memorable Marketing Blunder Ever?”

I

CB Insights survey of 110 Tech company failures ranks team and/or investor disharmony as number 10 on the causes of failure with 7% of the companies surveyed listing it as a cause of their failure. Even if conflicts do not lead to failure, they can impede progress. I have read articles that cite numbers as high as 65% of companies do not achieve all they can due to internal conflict.

Listen to learn more about disharmony amongst startup teams and how to avoid or manage these issues,

It is quite likely that during your early stages you will have to execute a pivot. A pivot is when you make a fundamental change in your business’s direction. Not many entrepreneurs get their business 100% right the first time.

CB Insights ranks a pivot gone bad as the 11th most common reason for a business failure. This is a contributing factor in 6% of start-up closures.

Pivoting, in itself, is not a bad thing. There have been many examples of successful pivots. 

In this podcast, I look at successful and unsuccessful pivots to see what lessons we can learn from their examples.

But the evils of boredom and burnout are more widespread than just a cause of failure. Boredom and burnout will result in stagnation and a lack of enthusiasm in companies that continue to exist but fail to meet their full potential.

In this podcast I look at the causes of burnout/boredom and how you can avoid them.

In this episode we look at some of the "softer" criteria you should look at when deciding where is the ideal market for your company.

Even before you embark on the adventure you must assess whether your company is ready to operate overseas. And are you personally suited to doing business abroad?

There is a lot to consider when venturing into a foreign market. Getting it right can transform your business. Getting it wrong can be a costly mistake. By doing your research in advance you will greatly increase your chances of success.

Please join me each week to learn how you can grow your business in an overseas market

Unconventional thinkers have unprecedented access to knowledge, talents, capital and potential customers. Yet breakthrough products or services are hard to find, Gary Hamel, a recognized business thinker, notes that corporations are awash with ideas that full into one of two buckets. Incremental no brainers or flaky no hopers.

How to bring your breakthrough idea to life?

How to stand out from the crowd

It is estimated that globally there are 53,000 coaches and 700,000 consultants. I recall chatting with a colleague we were both thinking about a post retirement consulting business. I figured I had some unique characteristics that would make me stand out. I had lived on three continents, worked on four, I had extensive M&A, business startup, and business turnaround experience. He said, “You know Jeremy, there are thousands of people out there who are just like you and me” And of course he was right. Just hanging out your shingle is not going to get it done.

How to stand out from the crowdIt is estimated that globally there are 53,000 coaches and 700,000 consultants. I recall chatting with a colleague we were both thinking about a post retirement consulting business. I figured I had some unique characteristics that would make me stand out. I had lived on three continents, worked on four, I had extensive M&A, business startup, and business turnaround experience. He said, “You know Jeremy, there are thousands of people out there who are just like you and me” And of course he was right. Just hanging out your shingle is not going to get it done.

How will you find your breakthrough idea? Already within you have everything you need to develop your breakthrough idea. Your business experiences, life long learnings, passionate beliefs and values are unique. No one is the same as you. There maybe many like you but there is only one you. Teasing that breakthrough idea out of yourself, well that maybe a bit more challenging.

Please listen as I cover 10 things you should consider when about to launch your second career

As Elizabeth Queen of England, who is still active at the age of 95, says “If I stop, I will drop.”

In season 9 I will share with you my experiences running a consulting business that delivers the much targeted six figure income. I also invite you to join me, as I build my business plan to escape the tyranny of the clock which limits my earnings to the hours I work. Over the next five years I plan to build an income portfolio that will support my family into the future. Please join me as I plan that journey.

Many people in later life say they want to start their own business but only a small percentage actually do. Whether it is a belief they are too old, that they cannot master today’s technology or the risk of failure I do not know. For those who do not start these fears are real but they do not need to be. I have had so much fun since I left the corporate world, I feel it is my duty to share my experiences, and may be increase that percentage, even if only slightly, of folks who make the leap and launch their own business.

I believe there is a lack of support for the older entrepreneur out there. Witness the fact that I was able to obtain the domain name thegeriatricentreprenuer.com Dot com domain names are not so easy to find as they once were. In addition I use Canva for most of my images and I could not find a suitable graphic that delivered the message that retirement was not for me.

And for my younger listeners, do not let the name of my show have you reaching for the search key on your mobile phone. In forty years I have learned a few things. Although the way business is carried out today is very different than it was when I started; the fundamentals are still the same. You have to build a product or service that people want, you need to ensure that they know your product exists, customers need to be able to access your offering and you have to price it correctly, so you make a profit. I will address all these basic truths during the season. And as a plus, us older folks do not have as much time left, so we must move quickly and get it right first time. Not a bad concept for any entrepreneur. Also, we cannot risk too much of our capital, so if you are a cash strapped entrepreneur, my low investment strategies will be useful to you. As my tagline says Putting experience to work, suitable for all ages. Yes, this show carries a G rating.

Ideas from “Entrepreneurial You.” Dorie Clark “Monetize your expertise, create multiple income streams and thrive”

Affiliate Marketing

Following the various ideas we have covered in earlier episodes you may have been able to build a substantial following. Now is the time to consider affiliate marketing as a low-cost option to generating income.  This is particularly attractive if you do not yet have a product to sell.

What is affiliate marketing? It is an agreement where you agree to promote a product or service in return for a share in the income generated from your lead. If effect it is a fancy term for the historical, but still relevant, finder’s fee.

The most widely known affiliate program is the Amazon associate program where if someone clicks on your link you earn a commission on anything they buy in the next 24 hours, with some caveats. It is easy to set up your associate status, I did it in a few minutes. But there are a few things you should know, and I will share them in my new blog The Geriatric Entrepreneur launching to tie in the start of season 9 on IBGR next week. Although I will be focusing on the challenges of starting an entrepreneurial business later in life, as the tag line to my new site says “suitable for all ages” the content will be relevant to all.  Amazon is not going to make you rich a few hundred dollars a month is likely to be your maximum earnings. Some folks have made much more. If you have a good following and promote products that are relevant to your community you will achieve a level of success.

My earnings in the first week of being an Amazon Associate – zero dollars. I must build more of a following.

Lower cost options – Help all your followers.

You can cater to the rich, and I’ll take the rest; the good Lord made more of them.

Kemmons Wilson founder Holiday Inn

Not everyone can afford to spend a couple of thousands of dollars for a course. And it is likely that many of your followers fall into that category. They have been devouring your free content and would love to buy something from you. But $2000? That’s way beyond their budget. If you have built up a decent following it is possible to generate an attractive income from a $100 product or even a $10 product.

Jason Van Orden of Internet Business Mastery thinks of these varied product offerings as ascension ladder. He says it is foolish to only think of selling big ticket items. Instead, you must think about customer lifetime value. A customer spending $25 per month over five years is worth $1,500. And done right your marginal cost of serving this customer can be near zero. That $1,500 is pure profit.

And the folks who do buy your big-ticket items. will be interested in your lower cost options and they can certainly afford them.

In this episode we will look at some low-cost options you can consider. 

Leverage your platform by creating online courses

You have an expertise; you know others want to learn it because you have been building up your following. What can be more obvious than to develop an on-line course? The ultimate make it once, sell it many times. If only it was that easy. The truth is creating and launching a course is difficult.

That’s what Jared Kleinert found when he tried to launch a course called “Yourself with Wealth”. In a very transparent Forbes blog post he detailed his failure.

It started with three numbers $997, $11,000, $0. The first number $997 was the price that Jared intended to charge for his course. $11,000 was the amount he had spent preparing his course. $0 was the sales he achieved.

What went wrong? As Kleinert puts it; “As entrepreneurs we like to chase the next shiny object, like a cool online course. In my rush to make a quick buck, I missed a vital step. I never interviewed my potential customers” Jared has moved onto other things but his advice to others thinking about launching an online course is “You have to build up over time. You have to ask your customers what they want. You need to build something they want, that is of value to them. Then scale that over time.”

Build a Speaking Practice.

Last week we learned how you can start building your brand and then ways to use that brand to monetize your skills. We looked at the steps needed to build a consulting or coaching business. And then how to break away from the tyranny of the clock, which limits your earnings to the hours you can work. If you can command $300 per hour, and very few consultants are able to charge more, then earnings more than $250,000 per year are possible. But wouldn’t it be nice to earn that, or more, working fewer hours.  We learned lessons from folks who has developed as systemized approach and others who had the courage to offer a premium product that could be sold over and over again.

To some extent this week we start by returning to a paid by hour activity. Building your own speaking practice. The difference? Once you have established your credibility as a speaker your hourly rate will be very very attractive. Event organizers often have a generous budget speakers. And why not? You will be speaking to hundreds if not thousands of people, imparting to each of them some of your ideas, experiences, and wisdom.

How can you start building your speaking practice? 

He started with teleseminars, most internet connections at the time were not fast enough to support video conferences. The cost for a three-month program was $1,200 and demand was strong.

Then he tried a yearlong mentoring program for $8,000 per person which entitled his clients to several training calls per month and three, three-day retreats per year. His initial program had 40 participants. Even when he increased his price to $12,000 demand remained strong attracting between 150 and 250 clients each year. But his participants found travel to the retreats pricey, and Michael Port found executing large live events, costly and stressful.

Like all good entrepreneurs he took the time to re-evaluate his program, even though it was delivering an excellent income. He completely changed his business model. He eliminated the three live events and reduced the cost from $1,000 per month to $89 per month. For their money clients got access to 9 training calls per month, one conducted by Michael himself the rest by trained associates. The revised program brings in less income than the early more comprehensive program but requiring much less of Mr. Ports time and with significantly less stress. And maybe in time the lower price point will attract enough sign ups to make up the difference.

Tell your family, friends, contacts about your decision to launch a consulting business. Ask them for introductions to folks who are able to hire and who you may be able to help. If time permits you should do this with a personal call or e-mail. And be specific about the type of client you want to attract. I would love to work with anyone in the aviation industry, or do you know anyone in Google, they would be my dream client. Of course, this assumes that you have a clear idea of what type of coaching/consulting business you want to build.  

If it is not obvious to you where your skill set lies, or maybe you are a generalist, complete an assessment of your areas of expertise.  Some pointers from Bozi Dar who runs an online business as a side gig,

1.   Understand what you are well qualified to share. In her book Dori uses the phrase uniquely qualified, but as few of us are uniquely qualified, that is we are the only one in the whole world I have modified the term to well qualified. You can build a business based on the skills you have. What are you well qualified to share? Think about the questions people seek you out to ask. When would your work colleagues turn to you for advice?

2.   Do not quit your day job. Take the time to test your hypothesis of what type of work people are willing to pay you for. What’s the problem? Are people looking for a solution I can provide? Who and where are my potential customers? As you start to close deals and build a client base then you can take the plunge and become a full-time consultant. Check your employment contract with your current employer to ensure there are no clauses prohibiting you entering other part time employment. When I started my consulting work as a side business, I advised my company’s HR executive of my plans and obtained their approval. I felt that added a level of integrity to my business, I could tell clients that I was not working behind my employers back. And I avoided all conflicts of interest by only having clients in fields totally unrelated those of my full-time employer.

3.      Build your competencies. If you are employed full time and even if you are highly talented, you may not have all the skills required to be an entrepreneur. If you are a marketing exec, possibly your financial skills need improving. Consider taking courses, hiring a business coach, join a group focused on entrepreneurship. Re-invest the income you are earning in rounding out your skills, so you are ready when you break ties with your employer and launch out on your own.

How can you do this?

The first step is to understand the value you bring to others. Once you can do that you will feel comfortable charging appropriate or premium prices.

When you start out as a solopreneur you will probably undercharge rather than overcharge. You are anxious to get a few jobs under your belt. Dori tells a great story in his book which I will paraphrase. After pitching a proposal to an early client, the client asked the obvious question, how much? Dori was not prepared for this question and mumbled $60 per hour, which was a little less than her acupuncturist charged. The client instantly said yes, and Dori knew she had left money on the table. I made a similar mistake with my first client, although my rate was a little higher than Dori’s. It was also the first, and last time, I agreed to be paid by the hour. Full disclosure Dori now commands top end prices whereas my rate remains more modest. 

The underlying advice contained in Dorie Clark’s “Entrepreneurial You” is that most entrepreneurs in the coaching, consulting, speaking field fail to diversify themselves. Diversification can enable you to earn more and mitigate risk. Too many entrepreneurs focus on earning revenue from one or two activities, such as consulting and coaching. To stop being held a slave to the clock, trading hours for dollars you need to develop multiple streams of income. In his prologue to the book Dori states that her business model has seven distinct streams. Before you tune out at the thought of developing seven, yes seven, income streams, keep in mind that it has taken Dori over ten years to get to this stage. As she describes in her book “The Long View” it takes time to achieve great things. Not all potential income streams will be appropriate for you, select the ones that match your business goals. Your objective, and its mine since reading Dori’s book, should be to be earning money while you sleep.  And although I will focus on the solopreneur, much of the information shared in these episodes is applicable for the intrapreneur working within corporations with all the advantages that access to funds and talent that brings. Nor do you need to quit your job to follow Dori’s advice, a side gig can bring in useful additional income. Over the next few episodes, you can learn how to build your portfolio career.

Define your values early and often. Values are not generic two-word commandments that state the obvious. They should codify what you believe in place where everyone can see them and everyone can suggest changes.

Values should be an oral tradition. They should tell your employees how to behave in both normal and extreme situations. And they are effective because values stick in our brains, they are efficient and memorable.

Using Nordstrom as an example. For my listeners outside North America who may not be familiar with Nordstrom, it is a high-end department store noted for exceptional service. In an iconic story a customer brings a set of tires to a store to be returned, even though Nordstrom sells clothes, not tires. The store accepts the tires and fully refunds the customer. In another case a clerk being unable to find right pair of shoes for a customer recommends a competitor, Macy’s and pays for the additional shipping cost.

These stories tell you more about the service Nordstrom and their customers expect than a thousand-page manual on how to be a good salesclerk.

At this stage of our business cycle, you are profitable and growing organically. Maybe this is the end game for you, you are earning a nice living for you and your family. But many entrepreneurs want to continue to see their businesses grow. And to stand still means to go backwards in this every changing world. You do not need to grow like crazy, but you do not want to stagnate either.

As a minimalist entrepreneur you have a built a business that you enjoy working on, it’s a pleasure to go to the office every day. But sustained growth presents its own set of challenges.  One tool that may help you decide the best path for your business in the Ansoff matrix which I discussed in episode 29 of season 7. To listen to that podcast CTRL Click here

When a business fails, it is not usually due to a tide of unforeseeable events, its usually for a handful of reasons. The most common of which is running out of money. In his book Sahil talks about how to avoid these mistakes. 

Email is a peer-to-peer network giving you a direct line to your customers. This is not controlled by anyone but yourself, an algorithm or whether you spend money. The author’s position is that when someone gives you their e-mail address they are your friend, not a stranger. But it is very easy to lose that friendship. You would not spam your friends so you should not spam these contacts either. I have had some bad experiences recently. Look I get it, a business owner has spent time to develop a piece of useful content, or to produce a YouTube video. If I want more, then I buy the additional information such as an e-book, with my email address. And I know I will get some follow up e-mails and if they are not to frequent and add to my knowledge, provide inspiration, or entertain me that is fair enough. But sometimes I find I have opened myself up to a barrage of emails that are thinly disguised sales pitches. That’s not what I signed up for. I unsubscribe and no longer consider the sender my friend. Just as described in episode 41, for any type of content you produce, ensure your emails first educate, second inspire and finally entertain. And only send out an email when you have something useful to say. 

Congratulations, by following steps outlined in last week’s show which was part manifesto and part roadmap. you have built a community, a product and one hundred customers. You have achieved product market fit. Note the 100 customers is not a hard number, it will depend on your business. If you are a coach, consultant or other solopreneur this number maybe only 5 or even as low as 3. The point is that you have repeat customers.

This week we will look at the advice for the minimalist entrepreneur offered by Savil Lavingia on how to grow beyond 100 customers starting with marketing by being you. Sales got you to 100 customers, marketing will bring you thousands.

Writers are told, “Write what you know” for entrepreneurs it’s not quite that simple. When you are starting a business you are imaging something that has not been done before, or at least not in the way you are contemplating your business vision. This applies even if you are considering a consulting or coaching business, there may be many similar businesses out there but yours will be unique because you will bring your particular skill sets and unique personality to the table. Unfortunately this is when many aspiring solopreneurs decide that building a business is not for them. Although they have the passion they let self doubt set in. They convince themselves they do not have the hard skills they need to be successful.  Let me tell you a secret, every entrepreneur has doubts that their business with be successful. Even the most successful were not sure of success when they launched. Jeff Bezos of Amazon told his investors he thought that Amazon had about a 30% chance of succeeding.

You do not need a team, money or degree to start building your business. Remember you do not learn and then start, you start and then you learn. 

Sahil Lavinga starts this chapter with a story about entrepreneur Sol Orwell who, in 2009, was overweight and unhappy. He decided he needed to learn more about fitness and nutrition. He joined a Reddit community and the more he learned about the subject, the more he shared, he answered questions and posted about his personal journey of losing sixty pounds (27KG). Working with co “Redditor” Kurtis Frank, they built a community of 50,000 members. Kurtis and Sol noticed a common theme, many questions were raised around the subject of nutritional supplements. In 2011 together they launched Examine.com, they did not sell anything, just provided information. In 2013 they began to think about monetizing. By asking their audience Kurtis and Sahil identified a need for a single reliable source of information about supplements available in the market. They launched Research Digest a full four years after Sol started posting on Reddit. The launch exceeded their expectations, all built on reputation, trust, and word of mouth. As Sahil puts it, Sol is now healthy happy and wealthy all because he built a community, served its needs, and developed a business.

Introduction:

Sahil Lavingia started his career chasing unicorns. He joined Pinterest as employee number two but left before his stock invested to build his own billion company: Gumroad. A tool to help creators sell their products online. Simplicity was key, no complicated setup, no elaborate storefront. Just a link for customers to pay and you are in business. Fifty thousand people visited the site on the first day and Sahil felt he was on the cusp of something big.

Gumroad never did become a unicorn, after burning through $10 million of investor’s capital, growth plateaued, attempts to raise additional capital failed. Three quarters of the company’s staff were laid off including many of Sahil’s good friends. From the perspective of Silicon Valley, and in his own eyes, Mr. Lavinga was a failure.

A move from San Francisco to Provo Utah enabled Sahil to change his perspective. Gumroad was a sustainable business, thousands of creators were using Gumroad to build their own businesses. Real people in the real world were paying their mortgages, their kid’s college funds or simply making pin money selling stuff online. By most people’s estimations Gumroad and Sahil Lavinga were a success. By changing his environment from the white-hot environment of San Francisco to the much more conservative atmosphere of Provo Utah it became clear that many more entrepreneurs want to build a sustainable business that matched their values and gave them a lifestyle they found satisfying rather than chase the elusive unicorn.

That you cannot do it all at once is obvious, nor should you try if you are playing the long game. But do not fall into a trap that many professionals fall into. Which is finding an activity you are good at, and simply keep doing that forever. This leads to frustration as you begin to feel you have plateaued. Often this is because they have overplayed their strengths and ignored areas where they are weak, or they are afraid to take a chance on something new.

Heads Up, Heads Down.

Articulated by Jared Kleinert an Atlanta based entrepreneur. Heads Up, Heads Down provides guidance on how to avoid the shiny object syndrome, the difficulty many of us face in avoiding chasing the next big thing. There is no shame in trying other things, but only when you are in Heads Up mode, where you are looking for opportunities, But not when you should be Heads Down mode, the time when you are focused on execution, getting stuff done. Doubling down on what is working or investing time on a possibility you have not yet fully vetted its true potential.

A different approach to the same concept advocated in his book The Long Game is thinking in waves. Dorie Clark has identified four waves that can lead you to becoming a recognized expert in you field. They are Learning, Creating, Connecting and Reaping. By transitioning through these four phases, smoothly will keep you growing, developing and moving forward. Avoid hanging onto one wave for too long which will lead to frustration and lack of progress, Learning, as its name implies, is the phase when you are learning all you can about the topic you are interested in or focused on.

Learning your craft is an essential first step, but if you want to be recognized for the unique contribution you can make, you need to move onto the second wave creating. Take what you have learned, consider what seems right to you, and what seems to be wrong. By sorting and sifting the information through the lens of your experience and knowledge you will develop content that is unique to you. This could be in the form of a newsletter, a blog, or a podcast. Likely they will not attract a lot of attention at first, but if your content is compelling then your audience will grow.

Connecting. It’s not what you know, it’s who you know that’s important, is a well know phrase. Building a network is crucial for the solo entrepreneur. When you start out your initial enthusiasm to create content will sustain you for a while, but if after 3 or 6 months with little visible progress how do you keep going? Connections will help you discover new ideas, expose you to new communities, and provide general encouragement. Playing the long game will result in you building up more and more valuable connections over time. The fourth and final wave is Reaping. You have learned your craft, you have created content and made connections. It’s taken some time but now you are recognized as an expert in your field. Let the good times roll, you command higher fees, you are in demand and you making a good living. But are you as good as you can be? Reaping is not your final destination. What delivered success in the past will not deliver success in the future. It’s time to start the four waves from the beginning and to re-invent yourself. This is the long game, you are not ready for retirement just yet.

Tags: How to grow a business, achieve business success, employee individualism, self-assessment, motivation, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes; IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

When setting objectives for our careers whether entrepreneurial or corporate we often default to monetary objectives. That’s why business degrees are so popular, they appear to offer a more direct route to well-paid employment. But one of the best aspects of being an entrepreneur is that you can focus your activities on what interests you. Dorie Clark calls it optimize for interesting.

Do not be constrained by what is possible now. Think about where you want to be in the future.

Twenty percent time – find the time to experiment.

3M allowed its employees 15% of their time for experimentation, which famously led to the Post-it note. Google went one step further “We encourage our employees, in addition to their regular projects, to spend 20% of their time working on what they think will most benefit Google” Of course this became known as 120% time, as that 20% became additional to normal working hours.

You will have read the research that the human brain is not suited to multitasking. If you are on a Zoom call and writing e-mails at the same time you are not giving full attention to either. But there are some tasks that are complementary where multitasking can save you time. Such as eating lunch and listening to audio books. If you take public transport to work you can read a book that motivates you. If you drive another opportunity to listen to new ideas. Dorie Clark states that he has found an additional 29% of time this way.

Do not be afraid to think in decades. There is a well-known saying that we overestimate what we can achieve in day, but underestimate what can be achieved in a year. Think about where you could be ten years from now.

No one is going to hand you development opportunities on a plate. You need to seek them out proactively.

Consider devoting 20% of your time to explore new areas. That’s enough time to get a good sense of whether you will enjoy something and whether it has the potential to get you where you want to be. But not so much of an investment that it would ruin you if it did not work out.

The best time to start something new is when you are in a strong position. Do not wait until you are in trouble to look for the next thing – begin planning now. ​ Tags: How to grow a business, achieve business success, employee individualism, self-assessment, motivation, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes; IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

When Nancy Reagan, wife of then President Ronald Reagan was visiting a primary school in California she told the kids “Just say no” to drugs. This was later used as a slogan in the campaign against drugs in the US during the early 1980s. But as we know many people have difficulty saying no to drugs, and many entrepreneurs have difficulty saying no to requests for meetings, to speak at events, to write a guest blog, anything to raise their profile.

Why is it hard to say no? It is flattering to be asked to speak at a conference, even more flattering to be asked back again. We get a sense of pride from being asked to meet up with someone, to be in demand. And there is that nagging doubt if I turn down this invitation will I be missing out on a plum assignment or opportunity. FOMO: Fear of missing out.

You will have no problem turning down obvious time wasters, or saying yes to clear opportunities, would you like to speak at our conference? We will pay first class flights, five star hotel and $20,000 for the day. It’s in the middle that we can get into trouble. The offer to speak without pay at a high profile conference where potential clients may be present, doing a podcast for an internationally recognized company, doing a favor for a colleague who may be able to help you out later.

Knowing it is hard to say no to such requests, set some rules for yourself. Do not rearrange your schedule to accommodate the meeting, insist on a time and location that is convenient for you. If they are that anxious to meet you they will be to accept this arrangement Do not meet people just because they ask. Insist on knowing why they want to meet, what is their objective for the meeting. And then decide if it is worth your time. Asking for additional information will weed out a lot of requests, you will find once they have to do some work, i.e. take the time to explain the purpose of the meeting, a lot of folks lose interest. Unless you are wildly enthusiastic about a pro bono opportunity, asked to get paid. Your time is one of your most valuable assets, why give it away?

Choose what you are bad at.

As a startup or newbie solopreneur there is a strong temptation to be all things to all potential clients, this is the path to mediocracy. No one wants to admit they are bad at anything within their area of competency but by consciously choosing what you are bad at will, paradoxically increase your chances of success.

An example provided in Dorie Clark’s book is of a bank that decided to commit itself to be open at hours convenient to its customers. This is an expensive undertaking. How did the bank achieve its goal, it chose to be abysmal at paying interest on deposit accounts. If asked, would you like lousy returns on your investments, most investors would say no. But to the customer segment served by the bank, convenient hours more than outweighed the lack of return on their money.

Being focused is the key to success to any business or solo entrepreneur. Saying yes to everything means being average at everything. What are you going to chose to be bad at? What are you going to say no to?

Use a checklist

Check lists work, they are mandatory for pilots or doctors preparing for an operation. When evaluating whether to say no Dorie Clark suggest you ask the following four questions:

What is the total time commitment? What is the opportunity cost? What is the physical and emotional cost? Would I feel bad in a year if I did not do this? ​ Jeff Bezos had an excellent position and outstanding career prospects when he quit his job to found Amazon. He knew if he did not try to launch his business he would always regret it. Even though he only estimated his chances of success at 30%. But most opportunities you are offered, if you do not accept them, a year from now you will likely not even remember them.

5 Strategic Thinking Strategic thinking encompasses any skills that enable you to use critical thinking to solve complex problems and plan for the future. These skills are essential to accomplish business objectives, overcome obstacles, and address challenges—particularly if they’re projected to take weeks, months, or even years to achieve. Strategic thinking skills include:

• Analytical skills: To ideate a strategy that helps your organization reach its objectives, you must be capable of analyzing a variety of inputs—from financial statements and KPIs, to market conditions, emerging business trends, and internal resource allocation. • Communication skills: Putting a strategy into place for your company, regardless of its size, requires solid communication skills. The ability to communicate complex ideas, collaborate with internal and external stakeholders, build consensus, and ensure everyone is aligned and working toward shared goals are all central to strategic thinking. • Problem-solving skills: Strategic planning is often used to solve problems or address challenges, such as missed financial targets, inefficient workflows, or an emerging competitor. Implementing a strategy that addresses the central challenge you face requires you to first understand its scope and potential solutions. From there, you can craft a strategy that solves it. • Planning and management skills: Strategy isn’t just about thinking of a solution— it involves implementation, too. Once data has been analyzed, the problem is understood, and a solution has been identified, you need strong planning and management skills to bring everything together. The advantage of having a strategic mindset is learning how to think rather than what to think. Although you might not always have the right answers, strategic thinking skills can enable you to spot new opportunities, address emerging challenges, and plan for success. 6. Negotiation Building a company requires engaging in negotiation with potential investors, early employees, and prospective partners. As you work to get your business off the ground, it’s vital to know how to create value and overcome differences to form lasting partnerships.

The entrepreneurs behind Unshrinkit, a product that unshrinks wool garments, recount how they used negotiation skills to close a deal with their supplier Sourcentra. After reaching an oral agreement, Sourcentra sent Unshrinkit a written contract with modified terms because its CEO felt his company was assuming too much risk.

Instead of taking a contentious approach and bargaining over contractual obligations, Unshrinkit’s founders focused on the CEO’s motivations to salvage the deal. They emphasized how the partnership would allow them to grow their company, which spoke to the CEO’s entrepreneurial background and desire to help small business owners. By appealing to the CEO’s emotions, the team was able to convince him to proceed with the partnership and reach a favorable agreement.

How to Create Value in a Negotiation 1. Build Trust Trust is a foundational component of any effective negotiation strategy. Deal-making comes with an inherent level of risk, making it vital to build a rapport with the other party.

2. Find Uncommon Ground Value creation requires focusing on areas where you and the other party have different interests and perceptions, rather than commonalities.

“It’s not a matter necessarily of finding things you agree on but things that you disagree about,” says HBS Professor Mike Wheeler, who teaches Negotiation Mastery, in an HBS Online video. “That could be the value of something. You might treasure something you own, but somebody else is just nuts about it. You ought to be able to make a swap there.”

3. Be Agile Being a successful negotiator involves knowing how to think on your feet and be agile.

1. Is Now the Right Time to Start a Business? Your idea may never take off if you try to start your business at an inopportune time. Are you currently in a position to pursue entrepreneurship? Consider your relationships, financial well-being, and physical health.

On the flip side, perhaps you’ve recently been laid off from your role in corporate finance. This turn of events could spark an ambition that can be poured into starting your new venture, backed by your professional experience.

Also, consider if the timing is right in the broader economy and the specific market you want to enter. You should ensure your offering meets a current need.

2. Do You Have a Business Idea, and Is That Idea an Opportunity? When starting your business, you need to know what you plan to sell. If you haven’t fleshed out those details yet, brainstorm using the following prompts:

• Why does it take so long to? • Why does cost so much? • Can I deliver with a new business model? • What can I change about to improve it?

Your idea doesn’t need to be a new invention—it simply needs to fill an unmet need. If you have an idea for an original product, that’s great, but an improvement to an existing product’s cost, production, functionality, or accessibility can go a long way.

You should also determine whether your business idea is a viable opportunity. Opportunity is defined as “a proposed venture to sell a product or service for which customers are willing to pay more than the required investments and operating costs.”

To find out if your idea is an opportunity, first come up with a hypothesis. Next, test your hypothesis by conducting market research.

Sahlman recommends reaching out to strangers from your target market segment, rather than friends, family, and colleagues, who may sing false praises. The feedback you receive can inform if your hypothesis was correct or whether you need to test other ideas.

3. Are You Prepared to Pivot and Adapt? Entrepreneurship is an iterative process. If you know that absorbing new information and pivoting when ideas fall flat aren’t your strengths, develop those abilities before becoming an entrepreneur.

Say you produce pull-up bars, and 75 percent of the people you interview aren’t willing to pay $80 for your product. Given this information, you need to adapt.

You test further hypotheses and discover the majority of your target segment is willing to pay the original $80 if the equipment is both high-quality and easy to install. This leads you to develop a new prototype, reassess manufacturing costs, and conduct another round of testing.

Your ability to frequently adapt—especially in the early stages of your business—is essential. 4. Do You Have a Strong Team, or the Ability to Form One? No successful entrepreneur got to where they are by themselves. “All great companies, even those with iconic entrepreneurs, had many other people who were involved and, without whom, the company might not have made it so big,”.

Apple is used to illustrate the power a team can have when growing a business. Co-founder Steve Wozniak was the mind behind the company’s early products and, shortly after its incorporation, Mike Markkula and Mike Scott joined as seasoned executives who proved themselves essential to the company’s growth. Co-founder Steve Jobs, who had previously been forced out of the company, returned when it was on the verge of failure and revitalized its products. Without each of them, and countless others, Apple wouldn’t be where it is today.

Keep in mind that successful business owners know when to ask for help and delegate tasks. Whether that means starting your business with a partner or two, building a strong team as you grow, or simply accepting any help and advice you can, know that your potential success relies on the strength of the people around you.

We talked about four personalities that can be found in entrepreneurs.

The Driver, The Explorer, The Crusader, The Captain

The Driver is product focused. Identifies his own self with the products success The archetypical driver, the driver’s driver Steve Jobs. Obsessed on product design

The Explorer is focused on the problem or puzzle. Tend to be systems thinkers Attracted to complexity How to connect with friends at college was the problem facing Mark Zuckerberg

The Crusader thinks about the mission and a business builds up around the mission.

Ben Cohen and Jerry Greenfield, founders of Ben and Jerry ice cream founded their business in a disused gas station in Burlington Vermont. To engage their customers, they used to show free movies and hand out free ice creams.

The Captain is focused on the team. They see themselves as managing through we rather than me. Does not mean they are indecisive or do not have a clear vision on where they want to go When Jack Ma had the idea for Alibaba he gather 17 friends in his apartment to get their thoughts on his idea.

Whatever personality you have, you can be a successful entrepreneur. In this episode we will consider the characteristics that many entrepreneurs possess.

1. Curiosity Successful entrepreneurs have a sense of curiosity that leads them to continuously seek new opportunities. Rather than settling for what they think they know, curious entrepreneurs ask challenging questions and explore different avenues.

Entrepreneurship is described as a “process of discovery.” Without a drive to consistently ask questions and challenge the status quo, valuable discoveries can be overlooked.

2. Structured Experimentation With curiosity comes the need for structured experimentation. As new opportunities arise, an entrepreneur must conduct market research and run tests to determine whether they’re worth pursuing.

Business is ever-changing. It’s nearly impossible for entrepreneurs to be prepared for every scenario they encounter. They need to know how to evaluate situations and adapt so their business can keep moving forward when unexpected changes occur. 3. Adaptability Business is ever-changing. It’s nearly impossible for entrepreneurs to be prepared for every scenario they encounter. They need to know how to evaluate situations and adapt so their business can keep moving forward when unexpected changes occur.

4. Decisiveness An entrepreneur has to make difficult decisions and stand by them. They’re responsible for guiding the trajectory of their business, including every aspect from funding and strategy to resource allocation.

Being decisive doesn’t mean having all the answers; it means having the confidence to make challenging decisions and see them through. If the outcome turns out to be less than favorable, deciding to take corrective action is just as important.

5. Confidence Accomplished entrepreneurs exude confidence and are their business’s biggest advocates.

Whether pitching to investors, communicating with clients, or making conversation at an event, the way they talk about their business and its potential can influence how others see it, too. Showing a lack of confidence can deter investors or lead customers to question their buying decisions.

6. Team Building A great entrepreneur is aware of their strengths and weaknesses. Rather than allow shortcomings to hold them back, they build well-rounded teams that complement their abilities. In many cases, it’s the entrepreneurial team—rather than an individual—that drives a venture toward success.

7. Risk Tolerance Many things can go wrong when launching a venture, but many things can also go right.

We also looked at the disadvantages that come with a low investment approach. Primarily the risk of running out of cash, In the episode I will share the advantages of bootstrapping, an approach that I highly recommend. But there are times when bootstrapping is not the right approach and that is when you need to scale fast because of the business you are launching. We will take a look at businesses that should not be launched by your bootstraps.

Tags: How to grow a business, achieve business success, bootstrapping. bootstrap the successful entrepreneur, business common mistakes. small business start-up; avoid these common mistakes; IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

I am committed to helping entrepreneurs succeed. I can bring the experience of 30+ years of experience at the C-Suite level in an MNC from Europe, North America, and Asia. Combine this with eight years of helping a diverse range of businesses and I can provide you with practical solutions to any difficult problems you may be facing.

Please do not hesitate to contact me for chat via the following links: mailto:jeremy@business-in-asia.org

Or schedule time via Calendly: https://calendly.com/3-continents-consulting

My websites include: https://business-in-asia.org/

For expanded notes with links to relevant podcasts https://business-in-asia.org/thoughts-on-business/

My LinkedIn URL https://www.linkedin.com/in/jeremy-gray1

The noble art of bootstrapping. Taking an idea, using your talent and knowledge, and building a worthwhile business without the backing from investors and having little or no startup capital. Unless your fortuitously find yourself in the right place at the right time bootstrapping takes dedication, a strong work ethic and an unswerving eye on the costs.

There is a great sense of pride to be gained in starting from nothing and building a viable business. There are financial rewards too, you do not need to share the profits or the value of the business if you decide to sell with anyone else.

But there are risks among others, without access to funds you risk running out of cash and growth is likely to be slower.

Some of the largest companies in the world started out as bootstrapped businesses. Dell Computers, Meta (formerly Facebook) Apple, Microsoft to name just a few. So, bootstrapping does not limit how big you can grow. Although all these companies are now publicly owned and their founders no longer own 100% of the company. ​ Tags: How to grow a business, achieve business success, bootstrapping. bootstrap the successful entrepreneur, business common mistakes. small business start-up; avoid these common mistakes; IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

I am committed to helping entrepreneurs succeed. I can bring the experience of 30+ years of experience at the C-Suite level in an MNC from Europe, North America, and Asia. Combine this with eight years of helping a diverse range of businesses and I can provide you with practical solutions to any difficult problems you may be facing.

Please do not hesitate to contact me for chat via the following links: mailto:jeremy@business-in-asia.org

Or schedule time via Calendly: https://calendly.com/3-continents-consulting

My websites include: https://business-in-asia.org/

For expanded notes with links to relevant podcasts https://business-in-asia.org/thoughts-on-business/

​My LinkedIn URL https://www.linkedin.com/in/jeremy-gray1

We live and work in a time when people expect to ask questions and get rapid answers. Customers today expect more than just a transaction with suppliers, they want to be sure that the supplier’s values match their own. The range of questions customers ask is expanding, as are the channels available for asking them. Brands who develop an effective plan to provide information to consumers will earn trust and a competitive advantage.

Google was founded 24 years ago and now is the go-to website when folks have questions. We expect to be provided with answers to our questions instantly. As it gets easy to find answers people are asking more questions. The catch, as almost anyone can post almost anything on social media, their blog, their website people are beginning to increasingly doubt the answers they find.

Customers want to make informed purchasing decisions and that requires they trust what they are told. A recent survey found that 81% of shoppers say trust impacts their buying decisions, only a third trust the brand they buy from.

In the past consumers questions might have been limited to the product specification, the price and maybe payment options. Today’s customer’s emotional and moral perspectives make the process more complicated. Buyers want to focus on ethical and sustainability issues. Not sure that is true? Accenture reports that sustainably market products and services outperformed their conventional counterparts in many areas in 2020. Sustainable consumer packaged goods outgrew the total market. Add to this that we have seen the growth of organizations that calculate ethical consumption for people to access while shopping and you will begin to see that being seen to be an ethical company will bring advantages. Of course, this goes beyond sustainability, treatment of workers, animals, free trade and even disassociating your company from countries where human rights abuse is alleged.

Your brand is a bundle of promises to customers. Customers want more details about those promises. They expect you to deliver against each ethical commitment you make, it the right way at the right time.

Everlane, a fashion retailer, provides a lot of detail about each product on the product page. Information includes details and pictures of where the product was made, how much water it recycles, safe chemical information. It is right on the product page so interested customers can access the information without having to search for it elsewhere on site. Additional details can be found on a page detailing Everlane’s commitment to sustainable. Their promise? Radical Transparency.

We are all familiar with Chatbots that use AI to answer questions with mixed results. Voicebots are coming that will be capable of answering question and provide information in real time. A quick tip, if you are not yet tracking the questions your customers are asking – start now. Work with your product experts to develop answers that can later be incorporated into your voicebot when you are ready. Done properly you can develop a virtual personal assistant which knows nearly everything there is to know about your product and its uses.

Virtual consultations which have gained acceptance during the pandemic will develop further. Bobi Brown Cosmetics and Perfect Corp have partnered to provide personalized beauty consultations. It will not be long before consumers are demanding virtual fitting rooms where they can see how the article they are considering looks like on them. Buyers of furniture will want to be able to see how it fits in their homes. If you can enable your customers to virtually try before they buy and do this better than your competition you will have a significant advantage.

Peesapaty tried to influence agricultural policies by documenting the problem in government reports, to no avail. So, he looked instead for ways to boost demand for millet. He hit on the idea of turning it into “edible cutlery”—a solution that could attack not just the groundwater deficit but also the scourge of plastic waste. Peesapaty quit his job to pursue the project. A decade later, after a video he posted about the cutlery went viral, orders began pouring in. Two crowdfunding campaigns exceeded their targets by more than twelvefold, and the first corporate orders shipped in 2016.

This great story demonstrates that there are two potential routes to a solution of a problem. The first is conformity, Peesapaty tried to influence government policy. The second, originality, in the case edible cutlery.

Unconventional thinkers have unprecedented access to knowledge, talents, capital and potential customers. Yet breakthrough products or services are hard to find, Gary Hamel, a recognized business thinker, notes that corporations are awash with ideas that full into one of two buckets. Incremental no brainers or flaky no hopers. I wonder into which bucker he would put Elon Musk’s SpaceX, Branson’s Virgin Galactic or Jeff Bezzo’s Blue Origin.

Why should this be? The authors in talking with both entrepreneurs identified three related criticisms of existing innovation frameworks. The often-used stage-gate process is too linear to facilitate radical innovation. It works fine for incremental innovation but fails when it comes to breakthrough innovation that moves forwards, then goes backwards and then forwards again during the development process.

Innovation frameworks are incomplete. They do not allow for the way people act when developing new ideas. They focus on lean methodology (action and fast iteration) whereas Adam Grant of Wharton talks about strategic procrastination – time for deep reflection.

Finally traditional frameworks are misleading. They gloss over pitfalls and biases that limit creative thinking.

Even when leaders recognize this pitfalls and know they must break the paradigm during the creation stage, they fail in execution. Take the Sony Reader, never heard of it you say, I am not surprised. Technically brilliant but Sony did not enlist the book publishing industry as an ally, Amazon did not make this mistake when it launched a technically inferior but incredibly successful Kindle just over a year later. Sony engineered an elegant device; Amazon offered a solution.

The authors have developed a five element framework that is more accepting of the messiness of breakthrough innovation.

Look through a fresh lens. Our experiences tend to interfere with our ability to look at things with a fresh set of eyes. This may blind us, unconsciously, to radical insights. To combat this bias question what perspectives drive your focus and what you might be missing as a result. Nivea conducted an online analysis of discussions about deodorants on social media sites. Their findings, contrary to what they expected, it was not the fragrance, effectiveness or the development of anti-stain deodorants and the company’s most successful product launch in their 130 year history. `

How can you find good, innovative ideas that lead to business opportunities? Three exploration frameworks— changing what doesn’t work, making things easier for customers, and making things more affordable—can reduce the risk and uncertainty associated with new projects.

Start-up is a temporary status—a term for an organization whose vital objective is to launch a new business model or open up a new market. For such companies, the model that identifies four primary sources of innovation—product, process, business, and customer—is inappropriate, an obstacle to the development of truly transformational ideas. Start-ups look at innovation from a different angle. After considering the needs of a particular industry or market, they deploy a new plan to improve the industry (incremental innovation) or create an entirely new market (disruptive innovation).

Innovative ideas, by themselves, are not enough; they are just one element of the journey towards market domination. Just as a drug can cure one disease but not another, start-ups have to apply innovation in an intelligent way that actually solves their customers’ problems. This is the main difference between how start-ups and traditional companies approach innovation.

The concept of innovation encompasses three fundamental characteristics:

For the consumer, innovation must always result in something new. If you compare what existed before with the new creations, you should see a positive advance.

Innovation doesn’t always involve the incorporation of new technologies. Value can be created for customers in various non-technical ways: designing a special customer experience, applying the low-cost concept to other consumer services, or introducing an unusual distribution model.

Innovation must have commercial value; if it yields no benefits, it’s just an idea.

Innovative ideas, by themselves, are not enough; they are just one element of the journey towards market domination. Start-ups have to apply innovation in an intelligent way that actually solves their customers’ problems.

Three exploration frameworks

For innovative entrepreneurs, the process of solving the customer’s problems begins with observing people and keeping abreast of technological changes. The next step is to ask whether there are any business opportunities that solve existing problems or address existing needs, taking into account that the proposal must be relevant and valuable to customers.

By combining this reflection with the three fundamental elements of innovation, we can define three exploration frameworks that allow start-ups to generate ideas that are both innovative and aligned with the elusive taste of the customer.

Framework 1: Change what doesn’t work

In this framework, the idea is to innovate incrementally. Borrow an existing idea or well-known service, assess its problems, and figure out how to do it better. Many kinds of attributes can be improved; adding new functions to the product is not the only way forward. The most interesting approaches often have to do with reducing or eliminating inefficiencies related to time, cost, risk, or effort. To be clear, “doing better” means more than just a simple product update.

Framework 2: Make things easier for customers

Being disruptive is clearly more difficult, since it involves disregarding known problems and preconceived notions in order to see things in a new light. This framework requires a certain degree of abstraction; rather than improving a defined product, you’re finding a new way of doing something.

I enjoyed listening to Mr. Hoffman and today I will share with you the key points of his message,

Innovation = Risk. There is no innovation without risk. You can minimize the risk by minimizing the cost of innovation not being successful. You can try to develop a product or service in a way so that if it does not work as planned, it is still viable in another way. If you are trying to be innovative and do not see the risk in what you are doing you may not being innovative enough.

Identify Time Frames. There is much talk about the metaverse these days but be realistic. Are we all going to be walking around in body suits with a camera on our head? Not very likely. When you consider this, you realize that future is not near term. Instead look for patterns of innovation on what’s going to happen in the three, five or ten years. When are the platforms, AI, Cloud, Mobile technologies, going to change, when can you execute and where is the intersection of the two?

Be discerning. If you are not discarding some good ideas you are being discerning enough in selecting projects that move forward. I found a great use for this technology but it does not fit with our time frame so we need to do something else.

Conflict between legacy product and innovation. It takes leadership and courage to disrupt your own business. Your organization has been built around the legacy product. Your business may be focused on tuning efficiency, how can you put a dollar in and get two dollars out? Your legacy business can clearly deliver that. But innovative products raise questions such as: Are we abandoning our old product? Are we destroying ourselves? Will someone else do this if we do not? Better to ask: How would an innovator come after us? Can we own that challenge? Can we do it at a lower cost? You need to change your business model and that needs leadership from the top. Companies get into trouble when they do not take risks and make efforts to develop new products.

Never waste a good crisis. Covid has changed the way we work; this provides an opportunities for start ups to offer new services such as helping employers adapt to long term distributed working. Try to predict where the changes will lead and focus on that. Not business as it is today but where it will be.

Hoffman on the future of work. Historically we have gathered in cities, in company offices and there were good reasons for that. And many of those reasons still exist. Some people are more productive working from home. Some people, and probably the majority get energy from being in the same room and working together. Yes, we can work on Teams or Zoom but maybe not as effectively.

Allow people time to decide. Employees want to see that their leaders care about their health, workstyle, productivity, their happiness. Talk about the will return to the office. Maybe not every day as in the past but at least together sometime each week.

Use The Pull Factor. Consider events that are fun and attractive that you need to physically present to participate in. Pizza parties, team building activities. This create a pull that makes people want to be there. Help employees feel that they are part of a team, not a cog in the wheel.

The role of business in society. Employees, customers, even investors increasingly care about the impact your business has on society. This goes beyond, everyone is doing climate change, so we will do climate change, will be sustainable. Although this is important, the focus on what is my business really trying to do? How do I invest in that to make a big difference?

Notwithstanding the supply chain challenges your customers have been used to getting what they want, when they want it, at a price they can afford. Speed of delivery has been a cornerstone of Amazon’s strategy and it gives the company a key competitive advantage. Your brand’s reputation is at risk if you cannot meet your customer’s expectations. In the world of social media people will voice their dissatisfaction loudly and widely.

Although this is a challenging situation, handled well it has the potential to make your supply chain a value creator. How? Consider another trend that will continue to become more important in the next few years, sustainability. Consumers are saying that sustainability is important, some are already beginning to change their behaviors. Balancing affordability with sustainability may be a way to reposition your brand to your advantage with your customers.

Repairing modern equipment is often challenging, making it easier to by new. Not too surprisingly manufacturers have encouraged this idea. Governments and consumers are taking note, a “right to repair” movement is growing around the world. In the UK there are laws legally requiring manufacturers to make spare parts available to people buying electrical appliances. Think about the competitive advantage you could gain if your products had a reputation of being easy to repair. And the sale of spare parts can be very profitable.

It may be time to think again about your product’s lifecycle. Extending a product’s lifecycle will reduce costs significantly. New product development costs money.

Can you make the consumer’s desire for green a cost saver for you? I have always been amused by the hotel industry that encourages us not to change our towels each day, to only change bedsheets every week. Of course, this is what most of us do at home, so it is a perfectly reasonable request. The fact this reduces the hotel’s laundry costs is never mentioned.

Packaging is an area that is ripe for improvement. Plastic pollution in the oceans is a global disgrace and there is a worldwide movement against disposable plastic.

Keep an eye on customer attitudes towards sustainability and beyond to “nature positive” which focuses on enhancing the resilience of our plants to reverse nature loss. The trends towards protecting the world’s ecosystem will grow; if you can identify how you can contribute towards improving the environment and reducing your costs you will be onto a winner.

Tags: How to grow a business, achieve business success, scarcity, opportunity change business model the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes; IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

Please do not hesitate to contact me for chat via the following links: mailto:jeremy@business-in-asia.org

Or schedule time via Calendly: https://calendly.com/3-continents-consulting

Apologies for the poor sound quality due to technical problems

Vision without action is a daydream. Action without vision is a nightmare. Japanese Proverb.

No one individual can execute a strategic plan, it must be a team effort if success is to be achieved. Nathan Wiita, and Orla Leonard decided to look at how the most successful teams bridge the execution gap. The gap between what the strategic plan says what needs to be done, compared with what actually gets done. What differentiates teams that achieve success from teams that fail to execute? How do they spend their time? What critical behaviors do they engage in that enables them to attain their goals. The researchers found X behaviors that lead to success. Commit to an identity. The successful organizations were committed to a common identity which was achieved by a shared understanding of its value proposition and the distinctive capabilities. Translate the strategy into everyday processes and capabilities. This includes establishing financial and operational metrics so that goals are aligned with overall strategy. Resources are allocated appropriately; progress is measured and reviewed. Concentrate on unique cultural factors that fuel success. This is means building on your company’s strengths rather than trying drive change programs based on fixing gaps or weaknesses. To facilitate this, it is helpful to have a mission statement that serves as a guide to how resources may be allocated. Shape the future: Companies that excel at execution find the time for planning – setting a direction for their organization, working on their vision and, of course, their strategy. They are faster to respond the changes in the business environment. Based on HBR article “How the most successful teams bridge the strategy-execution gap. Nanthan Wiita and Orla Leonard, November 2017

Turning Strategy into Results – Simplicity and Flexibility are key.

Strategies can be complex but to be implement simple and flexible guidelines are needed. Guidelines that can be well understood by the majority of your employees.

The often-cited advice to leaders is to distill the companies into a few core ideas. The target customers, (the who), the value proposition (what) and how to deliver, sell and distribute the products or services (the how). Sounds great but probably only works in very focused companies. A low-cost regional airline would be an example – they provide only one type of service to a particular customer type.

But what if your business is more complicated? Serving multiple customers with a range of products with different distribution channels. Limit the number of strategic priorities to five or less. Focus on mid term objectives. Strategic priorities are a bridge between your company’s long-term goals and short term operating plans. Pull towards the future. Priorities should outline how your company will create and capture value in the future, not how it did it in the past. Make the hard calls. In an organization of any size there will be dozens or more competing and conflicting priorities. Ensure that the priorities provide concrete guidance. Too often priorities are so vague it is impossible to guess the industry the company is operating in, let alone the name of the company itself. Align the top team. It is only too common for there to be disagreement among the top execs on what are the companies most important strategies. Executing strategies requires working across company boundaries.

Executing strategies in not easy, that is why most strategic plans fail to meet their objectives. To achieve success your company needs the right culture, a culture of execution and clear easily understood communication of what is most important for success.

Episode 6 Six reasons why your strategic plan fails to deliver. The Hidden Barriers and how to identify them. Part 2 ​ Hidden Barrier #4 Poor Coordination, a lack of willingness.

Most companies work well within silos, but any project worthy of the name strategy will work across silos. Possibly across geographies. And this is where coordination often breaks down. Coordination is critical for the effective implementation of strategies and it always a challenge.

Hidden Barrier #5. Inadequate leadership development.

Leaders do not learn leadership through training courses but by being challenged by difficult assignments or difficult decisions. To achieve this managers, need to be willing to release their best employees for work on projects that will develop their skills. They need to make a sacrifice for the greater good of the organization as a whole.

Hidden Barrier #6. Inadequate vertical communication.

Let’s be a bit more specific, inadequate honest vertical communication is the problem here. Leaders do not take enough time to communicate the company’s strategic direction and values with folks lower in the organization. They use the trickledown effect where each manager explains the strategy to his direct reports and so on. At each stage the message gets less clear.

Tags: How to grow a business, achieve business success, strategic plan, execution, barriers to success, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes; IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

With apologies for the poor sound quality - microphone problems

Based on HBR article by Michael Beer “6 Reasons Your Strategy Isn’t Working”. Published June 2020

Some or all these hidden barriers may exist in your organization. They may go unrecognized; they are often not discussed for fear of the consequences because they address failings in the organization.

Even good strategies will fail if these barriers are present in your organization; because your team cannot execute until these barriers are removed.

Hidden Barrier #1 Unclear Values and Conflicting Priorities.

This occurs when a strategy is developed without sufficient consultation with the employees at the coal face.

Hidden Barrier #2 An Ineffective Senior Team.

You may not like it, but your employees may consider you ineffective at strategy. Research in the Harvard Business Review shows that 71 percent of employees in companies with weak execution believe strategic decisions are second-guessed, as opposed to 45 percent of employees from companies with strong execution.

Hidden Barrier #3 Ineffective Leadership Style.

This refers to individual leadership. There are two, contrasting leadership styles that can derail the implementation of strategies. Firstly, the top down approach that does not involve team members sufficiently to build their commitment to the project in hand. Secondly the laissez faire non-confrontational style that does not encourage buy in as the impression created is that the project is not that important. 

Given that hourly employees are looking for something different than salaried employee, your retention strategies should be tailored to meet their needs. Rather than imposing strategies that seem to work for salaried employees. When developing your engagement program for hourly employees keep in mind what is important to them. Remember that they will have commitments outside of work, they maybe parents, they may be students, some will have second jobs, especially if they are not full-time employees. Put yourself in their shoes when developing retention strategies. Here are some ideas to kick off your thinking: Predictability: As much as possible give your hourly workers a set schedule of hours when they will be working. There maybe rotating shifts but these should be known in advance. Accommodate their needs, if you operate a rotating shift pattern but an employee prefers to work nights, because their spouse works days, and they have childcare to worry about. See if you can make this happen. Flexibility: People get sick, unexpected events happen in their lives, be understanding when an employee needs to take sometime off. Fear of losing their job should not force employees to come into work when they are ill. There are reports of employees coming to work when they had been exposed to Covid 19 as they felt their jobs were at risk if they did not turn up for work. Predictability and flexibility may sound like impossible goals, but companies have managed to deliver this for their employees. Ideas can include cross training so employees are capable of covering for others, scheduling enough employees to cover for these unexpected absences. Review on average how many employees are unable to come to work on any given day and use that in your scheduling plans. Offer professional development programs. These can range from literacy training for employees who cannot read or write, to degree sponsorships. Many hourly employees aspire to improve themselves. Talk to them, understand what they want, see if some of your employees are willing to train their colleagues. If they are, pay them for their time.

4. The fundamentals of a financial plan. Often referred a three statement financial plan i. Profit and Loss ii. Balance Sheet iii. Cash flow

b. All three are inter-related and all three show a different picture of your business. All three are needed for a complete picture of the financial status of your business.

c. Established companies tend to focus on the P&L and the most easily managed aspects of the balance sheet which are the elements of working capital. Business management usually pay scant regard to the balance sheet

d. As I start up I recommend you make your cash flow statement your highest priority with the P&L a close second. The balance sheet should be reviewed occasionally but as time will be at a premium this need not be your focus. Your cash flow will cover the important element of the balance sheet – your working capital.

Key performance indicators of KPIs are an excellent tool for assessing your financial plan and for tracking your business’s performance. Some KPIs are common to most businesses, some will be more focused on your industry and some maybe specific to your business. These are the crucial metrics for your business. Potential investors will be interested to understand how you will measure progress. KPIs also help your employees know what is critical for your business.

4. Although KPIs will be different for each business some can really help you understand your business value proposition.

a. Customer conversion rate. The number of customers who sign up or buy your product divided by the number of customers who have expressed an interest. If this number is low, potential customers are not seeing the value in your product or service versus the cost. Re-evaluate your pricing model or your offering design.

b. Customer Retention Rate or Churn Rate. These are opposite sides of the same coin. Customer retention rate is the percentage of customers who remain with you. It is often looked at over a year or more. How many customers who bought from you last year are still buying from you this year? Churn rate is the number of customers lost in a given period. Which is appropriate for you depends on your industry. If you are a B2B business retention rate may be more the most useful. Churn rate is maybe more relevant to B2C or SaaS companies. Identify the KPIs that are most important to you. Use them to confirm your financial plan makes sense.

a. If you think your customer conversion rate will be 1 in 10 and your sales cycle will be 3 weeks and you plan on 2 salespeople, then it is unlikely you will have 100 customers at the end of month two after launch.

i. Can be used in reverse to calculate the number of salespeople you need to achieve X number of customers by Y month.

b. Use KPIs as benchmarks against your competitors. Sales per employee for example. If your financial plan shows $500,000 per customer and the industry average is $400,000 it could be that you are being over optimistic.

Tags: How to start a business, inflation, supply chain, procurement, cost control, contract negotiations, achieve start up success The successful entrepreneur; business common mistakes; small business startup; avoid these common mistakes of business; mistakes in business; IBGR.network; Jeremy Gray; Practical Solutions to Difficult Problems

It starts with having a hiring plan. By having a plan you will give yourself time to find the right candidate. If you know you will need a CMO six months after starting, you can develop a timeline that will enable you to have the right person in place at the right time

A start up is different because often you are hiring your executive team first. Unlike an established business that hires to replace gaps or to expand. Take a look at your co-founders, assess your teams’ skills and identify gaps that must be filled before launch. Be honest – you cannot do it all yourself.

Then make a plan on when you will need to hire in outside talent. You may need a full time CMO to drive your business but its unlikely you will need a full time CFO until some time after launch. For skills such as these consider hiring part time professionals. If you bring part time skills such as CHRO, CFO into the business early you can get access to the skills you need at a fraction of the cost. They will learn the business and guide you until you reach the stage that you need full time help.

We have learned that lack of industry knowledge can be a real problem. If this is not available in your team you need to hire it in house. But finding the experience combined with a startup mindset can be challenging.

Startups are hard work. You need folks who are willing to pitch in and do whatever is necessary to get the business off the grounds. Corporate executives who have the knowledge you need may be willing to work hard, but they have been used to having a support network. As a result, they may not feel comfortable working beyond their area of expertise. Assess their willingness to pitch in by offering a lower base plus incentives based on the business success. Consider people embarking on a second career

Sell your business to candidates. Tell them of your business plan, vision, values, and culture. Show your enthusiasm for your business. Bring them along with you. If they have the right mindset they will buy into your vision and be excited to join you.

Do not forget you will need essential workers to produce the goods or services you plan to offer, production staff, programmers, waiters, what ever your business needs. Take the time to understand the availability of these types of workers in your market. Plan your hiring accordingly.

As you grow your team, consider how you will ensure they stay with you. Unwanted attrition is expensive because the loss of knowledge and the hiring of replacements is expensive. One survey I read estimates the cost of hiring an hourly employee in the United States at $1500. The cost of replacing a technical or middle management employee can be up to 1.5 times their salary. Hiring a C-Suite executive can be more that 2X the salary.

Employees leave when they do not feel valued. Whether that is valued by their boss or valued by the organization.

Retention starts with recruitment.

The interview stage is as much about them liking you as it is about you liking them. It’s also about sharing realistic expectations of what the role entails and having a mutual understanding of what both parties bring to the table.

Consider the future: The candidate might be a perfect fit now but what about in two or five years’ time? You’re looking for loyalty and longevity to reduce the likelihood of the right person leaving sooner than you’d like.

And ultimately, whether the individual fits your company culture and will work well with the rest of the team. Are they familiar with startup culture? After all, a startup is a very different beast to a large corp.

The second most common cause of failure was that there was no demand for the product or service.

How can you avoid spending hours and money developing your business only to find that no one, or at least not enough people, wants your product or service?

To test and validate your business idea ask three questions:

What problem do my potential customers have?

What is the solution to that problem?

Why should people pay money for my product?

Behind these questions are further questions. Who are my potential customers? Will my solution appeal to my potential customers? How much are my potential customers willing to pay?

Are people searching for a solution that matches your product offering?

People searching for solutions often use Google. Make a list of the terms you think people will use when searching for a solution for the problem you are trying to solve.

Use Google’s Keyword planner or Moz’s Keyword Planner to find out how many people search for specific words or phrases.

It is to be hoped that many people are already searching for your solution. If not; then maybe it’s back to the drawing board.

Identify potential competitors using the same key words. Analyse their value proposition. Can you do better? Can you see a gap in the market?

Is room in the marketplace for a new entrant?

Explore the internet Join appropriate forums where your potential customers may be found. Ask about their problems and current solutions related to your business idea. Are people suggesting work around solutions?

Develop your minimum viable product. A MVP is the first working version of a product, with just enough features to satisfy potential clients and collect & analyse their feedback for the next product version, with minimum effort and resources required. The next, complete product version is developed after elaborating on the initial user feedback.

A minimum viable product is not an MVP until it sells. Consider a virtual MVP.

Build a landing page – test advertising to direct traffic to your site. Include a price and a buy now button. This does not go to check out but to a page that explains the situation and suggests the view leaves an e-mail address

Validates that people are willing to part with their cash to acquire your product.

No money to build an MVP or pay for advertising? Consider content marketing. Write a blog with content that your target market might find interesting. Using the knowledge of learned about where your customers hang out – post messages etc directing folks to your blog. There is no substitute for research. It can be frustrating when you just want to get up and running.

But more haste less speed. The steps covered in this series Is there a demand for my product can help you avoid the second leading cause of failure for start-ups; No one wants your product.

When studying serious accidents or incidents it is noted that there is a chain of events that lead up to the ultimate tragedy. After spending hours looking at startups that have failed, I found was firms that went under usually had at least three or more of the following characteristics.

· They scaled up too fast · They entered an industry which was new to them · They changed their business model too often · Their systems were not suited for their growing business. · They hired the wrong people · They continued down the path towards failure, even when the writing was on the wall. · They ran out of money

These were all companies that had initial success but went out of business within one to four years from launch.

Let’s look at some real cases to see what we can learn from other’s mistakes.

Our first example is Quincy Apparel that identified an unmet need for young professional women to be able to find affordable stylish work clothes that fit them well. They identified a solution and developed a minimum viable product, that is a product that is the simplest that will provide reliable customer feedback. The minimum viable product was well received, based on this success the founders quit their jobs, raised nearly $1 million, recruited a team and launched. Initial sales were strong and nearly 40% of customers placed repeat orders. High sales meant high inventories which drained their cash. In addition, production problems meant garments did not fit well and this resulted in higher rate of returns. The company trimmed its product line with the aim of simplifying operations and improving efficiency. But there was not enough cash to see the change though and the business closed 12 months after its launch. Which mistakes did the founders commit?

1. They entered an industry in which they had no previous experience. They did try to find a co-founder with fashion industry experience but without success. 2. They hired the wrong people. The founders did hire some industry veterans. These folks were used to the high level of specialization within the garment industry and were not willing to help beyond their area of expertise. In a startup you need people who are willing to do what is needed to keep the business going 3. I may be being harsh here, but the founders continued to launch the business even when they fell short of their funding targets. They had correctly estimated they need $1.5M to get started but they only raised $950K. As a result, they 4. Ran out of money.

Let’s look at Baroo a pet care business that launched in Boston in 2014. The original concept was to provide pet care services in an office setting, allowing people to bring their pets to work and see them during the day. Baroo’s owners did limited testing of their idea and decided that it would not be viable. So they adjusted their plan to provide pet care services in apartment buildings. The initial launch in Boston was a success and they quickly expanded to Chicago. After raising more capital, they moved into the Washington DC market which proved to be quite different than Boston, apartments were more spread out which increased travel times for Baroo’s staff.

Operating in 3 cities began to put strains on the management team, and the off the shelf scheduling app they used was unable to cope with the demand. The financial performance was not great, in the first six months of 2017 the business lost $800,000. It was time to raise more capital or sell the business. The founder was unable to do either and the business closed in February 2018. What lessons can we learn.

As Mr. Ostberg explains rapid scaling requires delegating authority, promoting accountability, and executing business efforts quickly. Today, ten years after its launch, Delivery Hero is a $22 billion corporation handling 8 million orders a day, with 43,000 employees. Ten year from now Mr. Ostberg believes it could be $300 Billion Plus. To do this Delivery Hero will need to retain the start up qualities that got it to where it is today. Mr. Ostberg explains how the organization continues to experiment and expand.

Believe in your business When critics asked “Will this company ever be profitable?” it provided the motivation to prove them wrong. Success feels better when no one believes in you.

When things are going badly Maybe your competitors are strong in a marketplace, maybe your spend rate is higher than expected, or the product is not evolving. In tough times it is important to stay calm.

Rather than ask what is going wrong? Ask what specifically can I do? Eat an elephant one mouthful at a time

When you have a monster problem and do not know where to start; make a list and solve the problem one step at a time. As you make progress confidence will build.

Balancing competing goals – stock market expectations, high growth and covid

Mr. Ostberg admits that when things were not going well, he used to keep this to himself, not tell anyone the true status.

Be open with your team ‘Here is the good and the bad, here are my weaknesses and here is our current status. People were supportive. Stand by and fight alongside. Being open kills stress as you share the challenge with others

Niklas is still highly involved in hiring. Looking for fit – passion, capability and to execute. Important to have people who can be open and honest when things are not going well. Provides resilience and time to breathe

Learn to let go. Niklas used to do everything himself, even when he had hired people to do the work. But eventually that level of involvement was not possible.

Dedicating 1% of time to every topic is much less effective than spending 100% of your time on one thing

As leader focus on vision, values, strategy and structure takes more time as the company grows. Do the things that you and only you can do.

Continue to look at numbers – to frame questions – Why does this market work? Why is this market not working? Why are we not growing as fast in this area or region? Asking questions help your team to focus and infuses energy into their efforts.

Support and Protect New Projects. As businesses grow some bureaucracy is bound to creep in, although he believes that Delivery Helper has very little bureaucracy, Niklas shields new ideas from the organization to protect them from being killed. Trust the person you discuss the idea with. Hire people with expertise. Provide context and information, ensure resources are available and the let them do the work. If it is a success it will be integrated into the company, if not it will be killed off.

Build an empowered organization. Give your team the authority to make decisions. This provides ownership, people with ownership fight hard to make things work. Your team can focus on the project, not second guessing what the boss wants, or how to present the idea to him. Avoid steering committees, these drive a different mindset around ownership and accountability.

Do you want to boost your margins and competitiveness? Of course, you do. The authors claim that value-based selling (VBS) can deliver that boost but you need to move beyond the one size fits all approach commonly used today.

In today’s business environment where customers are seeking to reduce costs, competitors are digitally enhancing or servitizing their products, VBS has become critical in B2B markets. Traditional VBS leads to confusion about the actual value salespeople are supposed to sell.

Research shows vendors should adopt either a product-centric, customer process centric or performance-centric approach to VBS. Today we will look at characteristics, requirements challenges of each and help you choose the one that is right for you.

Value based selling is based on focusing on the customer, showing the value of the product or service being offered, the benefits the customer receives in return for the price to be paid. This is a powerful argument because B2B customers buy to reduce their costs or boost their revenues.

Traditional VBS faces challenges as the vendor has to a) Understand the customer’s business model to identify the drivers of profitability for the customer, b) Vendors must deliver a value proposition that is compelling compared with the customers best alternative, c) this must be clearly communicated and d) vendors need to prove the value has been delivered. Just deciding to use VBS is not enough to effectively implement the methodology.

A more granular approach is needed to choose a strategy that focuses on the product, customer process or performance.

The product centric approach is the often the easiest way for companies to start VBS. This builds on your greatest and best understood asset – your product. But the sales pitch is modified away from features to benefits. Using their knowledge of the customers need and expertise in their own product vendors can see ways to improve their offerings that unlock cost reduction or revenue generating opportunities for their customers. By being able to show that the benefits from the product outweigh the costs the vendor is able to move into premium pricing territory. A product that enables a retail store to open faster, or a product the demonstrably has a longer life and lower service requirement are examples.

Switching costs must be considered, the new product should not require major changes in the customer’s processes. It requires that the customer can consider the total cost of ownership. This maybe a challenge if the procurement team are focused on price. Getting other stake holders with a broader prospective involved is often needed.

Customer Process Centric VBS. Focuses on facilitating improvements in your customer’s business that are valuable and produce measurable financial benefits. Seeks to educate customers on how to apply your solutions more effectively to their value creation processes. This is a joint effort as vendors need input from the customers about their business and value drivers. To be able to deliver customer process centric VBS requires that you have strong process expertise and a consultative sales force that know how to apply that expertise to the customer’s business. As this model relies on joint application of expertise there is good potential for sustained competitive advantage. As well as continually improving the service the seller should find a way to keep some of the expertise in house. Sharing everything may lead to the customer deciding to go it alone. Examples of this approach are Caterpillar’s fleet analysis and management programs, or Kemppi’s diagnostic tools for welding processes, their tag line, We are committed to boosting the quality and productivity of welding.

Why should this be? Because many organizations have forgotten why performance appraisals were introduced in the first place. The laudable original intent was to help employees get better, to grow to their potential. Unfortunately, reviews became linked to pay and bonuses and thus became a high stakes game.

Telling people where they are going wrong is not the same are helping them to improve. In fact, the complete opposite. Employees given poor reviews disengage and often deny the problem.

Positive appraisals don’t help fix weaknesses that may be getting in the way of your employee achieving their best.

So if feedback isn’t helping, what does? The authors recommend a four step strategy. Shift from critic to ally No one wants to talk to a critic, but everyone want to talk with an ally Display caring, confidence and commitment towards them This allows them to drop shame and defensiveness – opens them up to hearing how to become better Empathize, if they are struggling show you understand how difficult it is for them Express confidence, show that you know they can handle the challenge Ask their permission to help. Identify the future they want to create. One that is bigger than their problem Allow them to describe the outcome they are hoping for Find a positive clear objective Discover a hidden opportunity What might the outcome facilitate? The ability to learn a new leadership skill? The potential to fix an underlying problem Create a level 10 plan Develop a plan of action which measured on a scale of 1-10 is 10. That is the employee is confident that the plan can be executed It’s not critical that the plan succeeds, just the employee follows through, assesses the results and moves forward.

Feedback well delivered can be a way that people can see their weaknesses and identify opportunities for growth. But only when it is part of a true culture of employee development.

This approach was highly successful at a large investment bank. Their unwanted attrition rate dropped to 3% and the performance review completion rate went from 50% to 95%

But maybe you should kill off performance appraisals totally, many big corporations already have. Why? What are they using instead? It is well known that both managers and staff hate performance appraisals. They can be difficult conversations – the type that most people either avoid or handle badly. Forced ranking and management interference can lead to unfair rankings It is almost impossible to avoid bias. The halo effect surrounding folks identified as top performers. Reducing a person’s performance to a number on a scale from 1 to 5 is dehumanizing. Taking a year to tell an employee that he/she is not performing is too long. It’s expensive and does not add much value. One Deloitte manager estimated the review process to 1.8 million hours across the company.

Given that is still a need to identify top and poor performers how can this be done without a formal appraisal process? Let’s start with rewarding top performers. Managers know who their best people are without an annual performance appraisal. They have no difficulty allocating merit based pay using qualitive data rather than quantitative data.

GE Announcement If you read business articles from the 1990’s to early 2000’s it is likely they will cite GE as an example of a highly successful, well managed business. Yet today, slightly more than decade later it is a shadow of its former self and soon will cease to exist. What went wrong? What can we learn for the rise and fall of this American business icon?

Too understand more I turned to two articles on from HBR and the other from Chicago Booth.

https://hbr.org/2018/06/ges-fall-has-been-accelerated-by-two-problems-most-other-big-companies-face-them-too

https://www.chicagobooth.edu/review/three-strategy-lessons-ge-s-decline

Starting with the HBR article written Roger Martin (Former dean Rotman School of Management at the University of Management) Mr. Martin argues that GE’s downfall was due to two effects that are common through out today’s corporate world. Clueless but deep pocket activist investors and mergers and acquisition folks masquerading as strategists.

On October 25, 2015, activist hedge fun Trian announced an $2.5 billion equity stake in GE. Trian claimed that with Trian’s “help” GE stock could be expected to rise from just over $25 to the $40 to $50 dollar arrange by 2017. Trian insisted that to avoid a proxy fight GE should appoint the founder Ed Garten to the boards. In June 2017 GE’s then CEO Jeff Immelt resigned and was replaced by John Flannery, In October Ed Garten joined the board. From this point it was downhill all the way. Mergers acquisitions and divestments became GE turnround strategy tool. – Historic GE businesses were divested – Light bulbs, appliances and locomotive engines. Juggling the corporate portfolio is common in large companies. Strategy heads often have a belief that if a company is in trouble the solution is to buy or sell something. Its not that MA&D cannot help strategy – used in context of the longer-term business strategy it can work. Google buying Android, Facebook buying Instagram. But for a business that is struggling they are a distraction when the focus should be on fixing the customer value equation. The MA&D activity plus cost cutting did not improve GE’s performance GE announced the divestment of GE Healthcare and Baker Hughes. Two giants of GE. Plus of course some more cost cutting What did Trian get out of the deal. At the time this article Ed Garten was no longer on the board and Trian’s investment had been devalued by about one third.

What can we take away from this? Although it is unlikely your business will be the target from an activist hedge fund, if you have backers – they may want to influence how your business is run. If they are knowledgeable this can be a blessing, if they are not – who knows where this might lead. Choosing your backers is critical, as a startup you may not have a lot of choice in selecting your investors but where possible partner with people who share your dream and can bring some knowledge to the table. M&A is a part of your strategy toolbox which can help you achieve your long-term goals. It is not a strategy in itself. Before you buy or sell a company check with yourself, how does this purchase or sale move me towards my goals.

Let’s turn to James E Schrager’s article in Chicago Booth’s Report. Although written a year later than the HBR article Mr. Schrager argues that GE troubles started much earlier. Jack Welch failed to plan for the end of history, what happens when the existing strategy no longer delivers?

Mr. Welch took over a sleepy company in 1981. He stripped out layers of bureaucracy, pushed decision making down to the field. Set up management education programs that matched that of topflight business schools.

If you are not embarrassed by the first version of your product, you’ve launched too late.” – Reid Garrett Hoffman

It can take a long time from initial concept to final product. Most truly novel ideas either stall out during the development phase or lose their originality along the way.

Product development is rarely a straight line. Development loops back on itself causing delays. Each of these loop backs can result in the more novel aspects of the product being removed, so a more mundane product can move forward.

How can this be prevented? The journey from concept to final product has four stages: Idea generation Concept elaboration Internal promotion Implementation Each stage requires a different set of collaborators Idea Generation Expose creators to a people with a range of perspectives Does not need to in depth, even brief encounters with different opinions can help connect the dots Weaker ties are better than stronger ties. Friends are more likely to agree One on One interactions are better – allowing more ideas to flourish Elaboration Phase – includes activities such as lab testing and prototyping. Now innovators need support and encouragement The novel idea likely has flaw that the creator cannot see but are clear to others Detailed criticism can set the idea back Creator may take them personally May abandon the idea Not share novel ideas in future Creator needs support to have the courage to persist. Close friends can provide this support Listen with an open mind Provide encouraging advice and feedback that can give a project staying power. Managers are not ideal as they tend to look at ideas though the lens of prior experience Seeking promotion – selling the idea internally and getting approval to move forward to producing the final product Creator needs support from an influence or net worker broker Someone who is connected throughout the organization Can secure buy-in and resources from the needed part of the organization. Have the ability to explain the idea in a way that is understandable and resonates with others Streamlining implementation – where the prototype is developed and actions for building the final product are developed. Sourcing of materials, logistics, manufacturing capacity. Requires a shared vision that motivates the team Trust, cooperation, social cohesion. Confident about other’s intentions, committed to the group and its work. Group think can be an issue, but this is implementation – a focus on getting things done. Changing collaborative behaviors We tend to consult the same people regardless of where we are on our product development journey. Create spaces for independent thinking Allow folks to come up with their own ideas – often working alone If a team event, consider silent brainstorming. (Brain writing) Do not rush to conclusions (48-hour delay) Review with strangers – Board of advisors

There’s a way to do it better; find it Thomas Edison

Innovators can be their own worst enemies. Confidence optimism, traits that are important for innovation can derail a project when taken to excess. Emotions such as fear, doubt, regret and frustration which are often associated with doing something new can stall or destroy an effort. Why Kodak did not successfully develop a digital camera. The fear of getting started – moving from thinking to doing. Doing incurs risk. Jeff Bezos told his boss at a hedge fund that he was thinking of selling books online. His boss replied ‘I think that would be better for someone who didn’t already have a good job” When faced with fear consider: Consulting your future self: We are hard wired to avoid risky behaviors Consider future regrets – how would you feel in the future if you did not take this chance. Don’t focus on the pain of failure, imagine how you would feel if you played it safe and shelved your idea. Let fear be teacher Its natural to question your new idea Ignoring this fear can be a mistake. Fear can be a teacher, a warning that maybe you are underequipped or underinformed. Find the cause of your unease and address it Learn from setbacks. Learning from failure is not automatic. It requires effort and discipline. Dissect your failure. Failure often generate negative emotions that do not help learning Analysis your setback – What exactly went wrong? Why? Which assumptions proved true? Which assumptions proved to be incorrect. Face your grief head on – a three step process Acknowledge your feelings – discuss them with friends and family. Accept the facts Let go of the loss and move on Reframe Rejection – James Dyson pitched his bagless cleaner to leading vacuum brands and was rejected. Dyson reframed rejections by focusing on what the companies had not said. They offered no rationale for turning him down. Can there be an excess of creativity? Your belief in a new idea can override the need to stay on course. You may get drawn down a new path and lose sight of your original purpose. Ask the fundamental question – how does this fit with my strategy? If you are struggling with your base business, the new idea could lure you off track. The moment of greatest peril comes when switching from thinking to doing. Do not allow yourself to be distracted. Elon Musk talking about SpaceX and Tesla “Prioritizing has usually been out of desperation not choice” Set limits on your involvement at testing and implementation stages. Enlist a counter weight – a partner who can curb your enthusiasm How to make the most of your tenacity. Identify what is most important and let other things go Take breaks – relentlessly pursuing a goal can alienate your support network. Ask for feedback.

Your creativity is what got you into business in the first place. If you manage it, it will be one of your greatest assets. Let it manage you and you could be heading for trouble. Do not be afraid to change your plans. “When the facts change, I change my opinion. What do you do Sir?” Attributed to Keynes but more likely spoken by Paul Samuelson.

Link to article https://hbr.org/2021/11/agility-hacks

Speed Agility and Responsiveness are the keys to future success Anita Roddick

Some business processes are well suited to structure and bureaucratic systems. Although the word bureaucracy has negative connotations it sometimes is the best way of getting things done. Payroll processing maybe a good example. If your employees are going to get paid the right amount and on time, there is not a lot of room for flexibility.

Approving sales contracts often follow a rigid structure that ensures that the company will not lose money on a deal, or that they will get the value they expect. But such processes do not adapt quickly to changing circumstances. So at times businesses should bypass their standard procedures to deliver speed flexibility and experimentation.

This is when Agility Hacks make sense if you have the courage to use them.

Agility hacks – the use of temporary teams to carry out time sensitive projects quickly. Shortcuts or novel methods that increase responsiveness or productivity May not use formal agile methods but work within the principles and values. Hack was originally a quick effective, if inelegant solution to a problem. Often used to capture new opportunities or to respond to major challenges by implementing workarounds to respond more rapidly GE adopted a change in reporting structure to focus on winning an order from Indian Railways PepsiCo UK had two years of declining revenues and faced a third. Realizing that PepisCo’s entrenched systems would impede rapid novel solutions, UK GM formed a SLAM team. (Self-organizing, Lean, Autonomous, Multidisciplinary) Best when the goals are seen as important for the company, this minimizes push back from parties who usually maintained standard operating procedures. Enables team members and others whose support is needed to see the value in the project By definition Agility Hacks fail if they do not deviate from the conventional way of doing things. Extraordinary times require extraordinary responses Teams need to be given permission and resources to try new things – quickly without delay. Hacks should not be a chaotic free for all but follow a disciplined process of rapid trial an error Execution as learning – a structured approach to getting projects done while playing close attention to what works and changing course as required. The GE Story 2012 Indian Railways announces a $2.5 billion to revamp its entire fleet of diesel locomotives. Bids to be submitted within 6 months Processes and distance from HQ limited the likelihood that GE could submit a bid within the deadline. It seemed likely that the specifications may change during the bidding process High risk deal. Bid too high lose the contract, bid too low – potential to lose a lot of money. Resistance from others – in the past Indian Railway had pulled the bidding process But huge potential if successful – important to GE as a company. Required a cross functional team: manufacturing, sourcing, finance, legal and knowledge of government bids in India By passed organizational layers to report directly to the CEO of GE India and the CEO of GE Transportation What happened? GE won the contract and delivered the first locomotive in 2015. In 2017 Indian Railways decided electrification was the way to go. There was a penalty of US$325 million for breaking the contract. I could not find out how this was settled. It was reported in Business Standard of India in November this year that the electrification project was due to be completed by 2023. Agility Hacks are short term solutions that do not address underlying problems – but they can be effective in tackling immediate challenges quickly.

We know that most initiatives fail, and that failure is commonly a failure of execution. The steps needed to execute are well known, yet companies, individuals, charitable institutions, governments often fail at the execution stage. Why should that be? Some ideas: We fail to face up the subject of prioritization. Prioritization leads to winners and losers Leaders tend to avoid these discussions Clear decision-making responsibility is not spelled out and is not appropriately delegated. Information does not flow freely throughout an organization and particularly to the top. Good execution requires a systematic way of exposing reality and act upon it. Most companies do not face up to reality well. There is no culture of execution. Presentations are too long Meetings focus on successes not examining failures There is a reluctance to challenge others conclusions and statements Goals are vague and timelines flexible There is a lack of accountability Managers fail to create the right atmosphere. Insufficient resources are allocated to a project. In an article in Sloan Management review published in 2017 that surveyed 300 organizations – only 10% of respondents felt that all their company’s initiatives had the funds, people and management support needed to achieve success. Why should capable managers launch initiatives without providing the resources needed? This must go beyond just a failure to face up to the need to fund projects correctly. An article published this month in HBR may provide an insight. Researchers surveyed 4 Fortune 500 companies and found: On average managers either did not know or remember 60% of the work their teams did One manager could only recall 4% of his teams’ activities Managers were shocked when they learned of the gaps in their knowledge This underestimates an employee’s productivity and how busy they are. And therefore, their capability to take on more.

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I am committed to helping entrepreneurs succeed. I can bring the experience of 30+ years of experience at the C-Suite level in an MNC from Europe, North America, and Asia. Combine this with seven years of helping a diverse range of businesses and I can provide you with practical solutions to any difficult problems you may be facing.

Please do not hesitate to contact me for chat via the following links:

mailto:jeremy@business-in-asia.org

Working longer hours in not a practical solution for most of us. Here are four sustainable ways to improve your execution skills. ​ Be clear and methodical Avoid the temptation to jump into activities and get started before you get organized, create a plan, or make sure what you are doing is aligned with the company strategy Instead organize people, assemble your resources, then generate a plan. The plan should be one that people can commit to, without there will be poor or no execution Make it clear who is doing what. When people are collectively responsible no one is responsible Understand how your plan aligns with company’s strategy Set goals and deadlines Goals help a team achieve their objectives and encourages engagements – milestones help to measure progress and celebrate wins. Pair goals with deadlines – our behavior changes when faced with deadlines. Goals and objectives give you a head start on meeting our objectives Ask what it would take to complete this project two weeks earlier. But too not push too hard – this can erode trust Provide feedback – especially positive feedback Positive feedback provides motivation and motivation improves execution. Become skilled at giving feedback Concentrate on the behavior not the person – describe the behavior, how you feel about it and what you want to have happen Use the sandwich approach – comment on positives, before the negatives and end with a positive Be specific – use examples to illustrate your point Be realistic – focus on what can be changed Own the feedback – use I rather than they or one. Feedback is your opinion Be timely. Be prepared Offer support Give recognition Resolve conflict and build team unity Identify and resolve conflicts within the team Problems arise from differences of opinion. Eliminate where possible conflicting objectives, if these cannot be eliminated then ensure they are recognized. Encourage positive conflict not destructive and personal conflict More ways to improve execution: Focus on what is most important. When it comes to execution complexity kills Clearly state the priorities – Avoid vague terms such as best in the industry. Avoid buzz words – sustainable, agile etc. Describe the steppingstones to success Identify your critical vulnerable – elements that must be implemented to achieve success yet are the most likely to fail If I was a competitor, how would I attack my company? Tie the project to a vision of the futures 3 to 5 years from now.

As the old saying goes – when the going gets tough, the tough get going. There will be times when executing your business plans seems an insurmountable challenge. It’s not but it can seem that way sometimes. Remember setbacks are inevitable, defeat is not.

You need to be proactive, keep the mood positive, calm your team when needed, remained poised to do not panic. Easier to say than to do when your dream is at stake. But by setting the right tone you can improve your chances of success. Let’s consider some ideas for success. Stay focused – execute the plan. Focus on moving forward. Do not allow noise or distractions to disrupt the cadence of execution Remain flexible in the face of change or unforeseen circumstances Allow team members to focus on what they love to do. When they execute with passion, they will have the endurance to overcome setbacks. Make accountability a culture Top performers and support players are equally important Make the accountable to themselves and each other. The expectations of peers is a powerful motivator Ensure they know their roles and responsibilities Ensure the work is fairly distributed. Team members who feel they are taking on too much of the burden can become isolated. Show that the team is greater than the individual players Develop trust – like a family An atmosphere where teams trust and value the contributions of each other. They have each other’s backs. Form strong bonds Identify and eliminate hidden agendas Encourage a sense of humility -this in not all about the top performers. Encourage diversity of thought Diversity of thought is underestimated in the development of teams. Diversity of thought broadens perspectives – deepens the pool of knowledge. Identifies new opportunities, expands creativity, improves dialogue and problem solving Align the team’s expectations Know what to expect from each other Align to people’s strengths, correcting continually Do not become complacent. Find ways to improve and sharpen the ability to execute The leader’s role Live the culture and identity of what you want the team to believe in and how they should behave. Your values and vision. 100% focused on the team (The servant leader)

Your team will take their cues from you. And this is much more about the way you act rather than the words you say. Avoid the “do as I say not what I do “syndrome. By staying calm and aligning the team to their strengths, making responsibilities clear you will improve your team execution. ​

Some elements of a financial plan should be obvious to every entrepreneur. Sales, Costs of production, Gross Margin, Overheads etc. But some cash intensive demands are often overlooked, especially by first time entrepreneurs who do not have a finance background. The objectives of your financial plan are many but one that is important to you is you are seeking funding is get an estimate of what your business will be worth. What is its valuation? ​ Working Capital – the money you need to run your business. A necessary evil. For this discussion I will define working capital as Inventory and Accounts Receivable which can thought of a the negative aspect of Working Capital. Accounts Payable – the positive side of working capital, as this is in effect money being lent to you by your suppliers. And finally, the cash balances your must maintain to ensure you can pay your bills as they come due. One of the most important of which is your employee’s salaries. Investors will look at your ability to manage working capital as a measure of how efficiently your business is being run. Good control of working capital shows that you are focused on what is important – that is cash. Common measures of working capital: For Accounts Receivable – Days Sales Outstanding DSO. If your customers are slow to pay your DSO will increase. For Accounts Payable – Days Payable Outstanding DPO. This reflects how quickly you pay your suppliers. The longer you delay payment the higher your DPO. Just paying late is not the most effective way to manage DPO. Inventory – Days on Hand (DOH) – the more money have tied up in inventory the higher your DOH. AR and Inventory are negative to cash, so you want DSO and DOH to be as low as possible. AP is positive to cash. so you want DPO to be as high as possible. Startup expenses – even before you open your doors you will be incurring expenses: Incorporation costs, business licenses, logo design, website creation, company secretarial fees Essential equipment – computers, phones, printers, desks, chairs, staff amenities Taxes Taxes on profits are obvious – but check out new business incentives. In early years tax losses may be incurred, this can usually be offset against future income. Sales taxes, VAT and GST. These become payable based on invoice date, not when your customer pays you. Understand the regulations in your country and estimate how much of this tax burden your may have to finance out of your funds. Depreciation Although it is a non-cash item it is on your P&L as a deduction from profits The rate of depreciation varies on the type of asset. Computers are often depreciated over 3 years, buildings over 40 years. Land is typically not depreciated. Valuation Many entrepreneurs would like to dispense with a financial forecast if it wasn’t that banks and other investors require a plan. The good news is that having prepared a financial plan you have a basis for valuing your business It’s not uncommon for businesses to be seeking funding before they launch. Your financial forecast is all you have as a basis of negotiation with your investors. How much of your company do you need to give up for X dollars of funding? Document and be able to justify your assumptions. The more reliable third party facts, figures, reports the better. Discounted Cash Flow (DCF) is a common method of determining a businesses value. After all the value of a company is its future cash flow. At this early stage you have no track record of your ability to forecast your business’s results so expect investors to challenge or discount your assumptions. Discounted cash flow requires a discount rate. This is often tied to the cost of borrowing.

Key performance indicators of KPIs are an excellent tool for assessing your financial plan and for tracking your business’s performance. Some KPIs are common to most businesses, some will be more focused on your industry and some maybe specific to your business.

These are the crucial metrics for your business. Potential investors will be interested to understand how you will measure progress. KPIs also help your employees know what is critical for your business. ​ KPIs fall into two types – Leading KPIs that will tell what is going to happen and lagging KPIs that tell you what has happened. Both have there uses. Sales per salesperson is a lagging KPI. It can only be calculated after a sale has taken place. Initial customer contacts per salesperson is a leading KPI. More contacts now will, hopefully, lead to more sales in the future Investors will expect to see at least the most common KPIs. Revenue growth rate Gross Margin Profit – Earnings, EBIT, EBITDA Cash flow – burn rate per month, Runway remaining etc. Consider what is important for your business. Failure to track and understand the performance indicators can lead to business closure LayerVault provided a version control service to developers. It was very popular with its users but failed to gain enough traction to attract future investors and ran out of funds. CEO Kelly Sutton said “I think one of our biggest mistakes as not checking our KPIs regularly enough. They would have greatly helped us identify problem points in our business. Although KPIs will be different for each business some can really help you understand your business value proposition. Customer conversion rate. The number of customers who sign up or buy your product divided by the number of customers who have expressed an interest. If this number is low, potential customers are not seeing the value in your product or service versus the cost. Re-evaluate your pricing model or your offering design. Customer Retention Rate or Churn Rate. These are opposite sides of the same coin. Customer retention rate is the percentage of customers who remain with you. It is often looked at over a year or more. How many customers who bought from you last year are still buying from you this year? Churn rate is the number of customers lost in a given period. Which is appropriate for you depends on your industry. If you are a B2B business retention rate may be more the most useful. Churn rate is maybe more relevant to B2C or SaaS companies. High retention or low churn rate indicates that your current customers are happy and believe you are solving their problems and are delivering value. Low retention or high churn could mean that your pricing is too high for the value offered, or there is something missing from your product offering that your customers need. Length of your sales cycle. This is the time taken from initial contact with a potential customer to making that first sale. This KPI can help in several ways. If you measure it by sales person you can identify who closes the deal most rapidly. This is a learning opportunity to teach others on what to do and what not to do. If you track the sales cycle through its stages you can learn where the roadblocks are in your selling process If the sales cycle is increasing overtime it could mean you have exhausted the customers who are early adopters and your ideal fit and are now having to attract less enthusiastic customers. Your Customer Acquisition Cost (CAC) may be increasing. There are many other KPIs that could be relevant to your start up. If number of users is important to your business, you will need to consider Daily Active Users or Monthly Active Users as a metric. Identify the KPIs that are most important to you. Use them to confirm your financial plan makes sense.

If you have been following me during this season you are well on your way developing a financial plan that can be summarized in your pitch deck. A financial plan that will stand the scrutiny of seasoned investors. In earlier episodes I have discussed: Demand Validation – you have confirmed that there is a demand for your product, people will buy what you are selling Assessing your competitions strengths and weaknesses and how you will outcompete them. As part of this assessment you understand what resources are needed to win the battle in the marketplace. You have estimated what it is going to cost you to produce your offering, and looked at ways to keep those costs to a minimum. Your pricing strategy has been reviewed and you have a good understanding on what you are going to charge for your goods or services. You have even considered an early customer loyalty program. A hiring plan has been developed, you understand who you will need to hire, when you need to hire them and what they are going to cost. The operating costs needed to start up and maintain your business have been evaluated. You have considered trading off lower initial profits against maintaining your cash flow. You know your burn rate and have estimated the cash you need to get started. You know the market size and have confirmed that a reasonable market share will deliver the sales needed to sustain your business. Its been hard work but now you can start to bring it all together and be sure that your business makes financial success. Avoid massaging the numbers to get to the answer you want. If the numbers are not adding up, go back to your assumptions to double check them. Maybe you missed something, is there a product feature you can eliminate that will save costs, do you really need a full time CMO, CFO, CHRO in the first years of operation – can you make do with part time? Can employees work from home rather than renting an office. The fundamentals of a financial plan. Often referred a three statement financial plan Profit and Loss Balance Sheet Cash flow All three are inter-related and all three show a different picture of your business. All three are needed for a complete picture of the financial status of your business. Established companies tend to focus on the P&L and the most easily managed aspects of the balance sheet which are the elements of working capital. Business management usually pay scant regard to the balance sheet As I start up I recommend you make your cash flow statement your highest priority with the P&L a close second. The balance sheet should be reviewed occasionally but as time will be at a premium this need not be your focus. Your cash flow will cover the important element of the balance sheet – your working capital. This can be an issue if you are outsourcing your accounting. Most services focus on P&L and Balance Sheet. Not your number 1 priority Speed is of the essence – financial statements produced 3 to 6 weeks after a month has closed are not very helpful. I have digressed slightly to emphasize the importance of cash flow but today we are talking about preparing a financial plan not your reporting mechanisms. I am not going to go into the mechanics of producing a three statement cash flow. There are many free templates available to help you prepare your P&L, Balance Sheet and Cash flow.

That we are seeing inflation is no surprise. Shortages of labor and materials, partially triggered by Covid 19 are pushing up prices. Freight rates have skyrocketed, and oil is trading at near recent highs. Governments have been printing money for fund covid relief initiatives and combined with quantitative easing measures there is a lot of money in the world economies. I have been predicting that inflation was bound to be a consequence of these actions, I am only surprised it has taken this long.

As a SME you may be less able to pass on price increases to your customers, if the major players in your market are only passing on a fraction of the true cost increases you may have to accept lower margins for a time. Some belt tightening may be required.

To maintain profitability all parts of your company need to be ready to respond. Responding to inflation is a change in business practices and like any change initiative it is important to bring your staff along with you. Explain the situation. Instill a cost-conscious culture. Do not create panic – this is not a burning platform. Reinvigorate or set up your sustaining engineering activities. Use sustaining engineering to reduce the cost of the products to improve profitability, match competitors pricings or drive volume. Do further research to identify lower cost sources or alternative materials which are less expensive. Look at all costs – an alternative form of packaging could deliver savings. Look at value engineering – is there an element of your product that is little used that can be eliminated? Reduce portion sizes but be careful look what happened to Nestle when they removed the walnut from their Walnut Whip Never really been a walnut girl but I feel removing them from the walnut whip truly is the beginning of the end for society as we know it But its procurement who have to step up their game in dealing with suppliers Contract Management Procurement organizations must be aware of the risks in their agreements and make plans to mitigate those risks. on in itself. Contract design can be adapted to mitigate the impact of inflation. All contractual levers should be assessed, including duration/term, indexing, periodic limits to price escalations and frequency of price adjustments. Risk potential during inflationary times should be evaluated and contract terms adjusted. It is important to also work closely with the finance, sales and marketing functions to ensure that, where possible, indexes in supplier contracts are symmetrical with those used in commercial contracts. This allows cost inflation to be passed on effectively. Contract negotiations will be needed to enact changes and should be managed carefully. Prioritize negotiation targets by supplier as well as by commodity. For each negotiation, define a customized strategy, objectives and level of aggressiveness. Consider the unique context and leverage position for each negotiation — if there are no alternative suppliers with lower rates, it will impact the approach. Set clear rules, roles and responsibilities for the team ahead of negotiations and ensure compliance.

Steve Jobs

If you’re looking to start or expand your business, you need to have a firm understanding of how to enter and grow within your chosen market. This requires you to take what you’ve learned during your market analysis to develop a market penetration strategy for your business. For your business is the key word. Many online articles talk about achieving market dominance, cite examples like Apple or Coca Cola. Certainly, dreaming big is often thought of an important attribute that leads to success. Dream big and plan with realism.

The fundamental 4 Ps of marketing: ​ Product – Keep it simple. Avoid the next shiny feature trap Understand the impact of every new added capability Kill off new ideas before they kill your product. Price – often thought of as the most important of the 4Ps. At the start of your business, you will not be able to be a price leader. The market will dictate what you can charge but: If you plan to be a premium product do not undercut the market If your funds are limited – a higher price that gives a better margin in exchange for slower growth maybe right for you. But do not get too much above market. Give something in return – more attractive packaging etc. Too low a price can make people suspicious. Particularly if you are selling online – test price points. Use pricing to control demand. Promotion. Covers all the activities you use to market your product or service to your target customers Often very expensive so consider how you can track your ROI Manage you’re the cost of customer acquisition versus the lifetime value. (Margin $ not Sales $) Know where your customers go for information. This does vary by generation Do not dismiss influencers. Consider Micro or Nano influencers. Social media – Pinterest, Instagram, Tiktok Place – chose your distribution channels carefully. Make it easy for your customers to buy But ensure the channel is aligned with your objectives Multiple channels are fine – just do not get drawn too thin Online – consider your own site if niche – use a platform if more generic. SEO People – the fifth P refers to your customers and your staff Understand your customers needs, aspirations, desires. Are there gaps you can bridge Ensure your staff are motivated, well trained and focused on customer satisfaction. Does your marketing strategy reflect your values and mission? Beyond the 5Ps – create a barrier to entry. What do you do better than your competition? Identify your core competence? What can make it difficult for your competitors to match you? Company culture can be a very effective barrier to entry. Connect market penetration to your overall business strategy Keep in mind that market penetration should not be conducted in a bubble. Any strategies you develop or steps you take should connect to your broader business strategy and help you reach specific milestones. One way to keep this top of mind is to incorporate a review of your market penetration rate and any ongoing strategies into your monthly plan review.

This will encourage you to look at financial forecasts, milestones, and current tactics all at once. If you find that a current penetration strategy doesn’t support your larger goals, it may be wise to back off or reallocate resources until it becomes relevant. Or it may present an opportunity to adjust your business plan to fit the opportunity you’ve found. But without reviewing it alongside your plan and financials, you’d never know for sure.

Tags: How to start a business, achieve start up success, Ansoff matrix, business growth, market penetration, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

The Red Queen – Alice in Wonderland – Lewis Carroll Published 1865 Every entrepreneur starting out has visions of her/his baby growing into a successful business. They may not be dreaming of becoming a unicorn, maybe $1 Million turnover is their goal. But at some point, in the business lifecycle they will need to reinvigorate their business. Like any project business expansion is a balance of risk versus reward. Let’s examine a couple of tools that may help you decide how to expand your business.

The Ansoff Matrix was developed by Igor Ansoff and published in the HBR in 1957 under the title Strategies for Diversification. Ansoff argues there are only four strategies for growth: Market penetration – Increasing sales of existing products into an existing market Product Development – Introducing new products to an existing market Market Development – focuses on entering a new market using existing products Diversification – Entering a new market with the introduction of new products. Ansoff also evaluated the risk associated with the four strategies and plotted this on a 2X2 Matrix. The lowest risk was assigned to Market Penetration The highest risk was assessed to be Diversification. How can a matrix developed nearly 65 years ago be relevant to entrepreneurs today? If you are pitching to investors, you can almost 100% someone is going to ask you “How are you going to scale?” It’s true that Ansoff research was focused on later stage businesses, but he did focus on growth. And growth is what startups are all about, so Ansoff remains relevant. The relationship between markets and products provides a framework for how your company can grow. Markets are not necessarily based on your customers characteristics, such as geography but more based on their objectives. People do not buy drill bits, people buy holes – the concept of jobs to be done. – Clayton Christensen Use the matrix and “jobs to be done” concept to map out your scale up. The lowest risk path to growth is market penetration. Selling more of your products into the existing market. If you have a multi-generational product strategy that will keep you ahead of your competition and allow increased market shar this may be all you need, for now. But without innovation your company will eventually stagnate. Existing customers are the easiest to sell to. Identify “jobs” that need to be done that are not done well or not being done at all. What work arounds have your customers invented? What tasks do people want to avoid? What surprising uses have customers invented for existing products. This can lead to entering new markets. Diversification is probably not applicable at this stage of your company’s development. It has the highest risk Backers will question your business concept. Why are you launching with one idea and planning to move into another business concept? The Ansoff matrix is easy to understand. Plot your expansion plans on the matrix to help investors grasp your scale up concept. I recommend the article Know Your Customers’ Jobs to be Done published by HBR. Link below:

https://hbr.org/2016/09/know-your-customers-jobs-to-be-done

Tags: How to start a business, achieve start up success, Ansoff matrix, business growth, market penetration, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

Tags: How to start a business, achieve start up success, burn rate, cash management, expense control, working capital, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

Tags: How to start a business, Achieve start up success, burn rate, cash management, expense control, working capital, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

Felix Dennis English publisher, poet, spoken-word performer and philanthropist. The day you run out of money is the day your business closes. Time to break even will likely take longer than you thought There is always the unexpected Until then you will have a negative burn rate – money is going out of your bank account faster than it is going in. The smaller you can make this difference the longer you can keep going to overcome obstacles, modify your objectives and improve your business proposition. Set the right culture from day one rather than wait until you are facing a brick wall. Walmart – a winning strategy Control your expenses better than your competition. This is where you can always find the competitive advantage. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you're too inefficient. Make sure this is ingrained into your business Check your assumptions about what is needed. Colin’s story – Setting up his own investment company he believed he needed a prestigious office to attract wealthy clients. In fact, the opulent surrounding turned clients off. Do not allow others to convince you to spend money. It’s your dollar. Know your budget and stick to it. It’s too easy to convince yourself that the next addition will pay off eventually You may go out of business before eventually arrives. Consider how others may see your spending. Impact on potential clients The reaction of your employees Is it clear that spending is for the long-term benefit of the business? Focus spending on strengthening your company’s core competence Walk the talk Make sure that your actions reflect your spending strategy Avoid vanity projects

​Link to article with photo of Jeff Bezos starting out. There is no luxury there!

https://www.indiatoday.in/technology/features/story/jeff-bezos-delivered-books-in-his-car-when-he-started-amazon-now-he-is-retiring-as-ceo-1765399-2021-02-03

Tags: How to start a business, achieve start up success, burn rate, cash management, expense control, working capital, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

Tags: How to start a business; Achieve start up success, Signs of startup failure, Business on thin ice, Watch for these signs, The successful entrepreneur; business common mistakes; small business startup; avoid these common mistakes of business; mistakes in business; IBGR.network; Jeremy Gray; Practical Solutions to Difficult Problems

Link to Forbes Article https://www.forbes.com/sites/georgedeeb/2021/05/03/top-10-warning-signs-your-startup-will-fail/?sh=65175ebb3549

If the viability of your start up is in question its time to take action. Do not wait, the earlier the treatment the easier the cure Staff costs are a major cost and there is a temptation to cut drastically. Cut Fast Cut Deep is often quoted, Reflecting on the failure of his start up Fab’s Jason Goldberg regretted imposing massive layoffs in Europe and reducing the US team from four hundred to eighty five employees. He criticizes himself for being too quick to focus on slashing costs and narrowing scope versus taking a step back and devising a plan that could preserve value for the shareholders. Communicate openly with your staff about the situation Often concerns that if you tell employees that the business needs corrective action that they will leave More likely to leave if you take action without explaining why. Give them a voice. If you have hired right and focused on retention, they may be willing to accept changes in their employment Overtime: A good place to start is to look at overtime. Overtime can quickly become institutionalized. Employees can quickly get used to their overtime pay and become to rely on it. So, they slow down on the job so they can put another couple of hours on the clock before they leave. Or rather then finishing some work on a Friday they come in over the weekend to get the job done. Determine the main cause of overtime hours in your workplace and think about how you can reduce it. It could be as simple as optimizing staff schedules or reevaluating an outdated process. Alternatively, if the overtime is both necessary and temporary, consider waiting it out instead of hiring a new full-time employee. Sometimes overtime costs are temporary based on deadlines or quirks of the workflow but hiring a new staff member is a longer — and more costly — commitment. Improve Workflows Bottlenecks, disorganization, and lack of structure cause inefficiency that can waste time and money. Simply reviewing your business’s processes and workflows could save you a significant amount of money and foster more productive and effective employees. Eliminate unnecessary work. Its likely that some work is being done that does not deliver a lot of value. Free up employees to do more productive added value work. Outsource low value added but essential routine work Particularly useful in you are in high wage economy Many free lancers are available at a low cost to do this type of work Be ready to go through a number of candidates before you find a reliable quality worker Offer flexible hours, remote working, shorter working weeks Employees may be willing to trade a better work/life balance for a lower salary The improved engagement can lead to same work being done in less time. Restructuring fixed salaries sounds more ominous than it really is. Instead of simply reducing your employees’ salaries, which will cause disengagement, demotivation, and even turnover, consider offering performance bonuses and commissions instead. This ensures staff members are only paid additional amounts when your company is profitable. For example, let’s say you have a salesperson who has a base salary as well as a 5% commission on the sales they make. Ask them if they’re willing to take a lower base salary in exchange for a higher commission, like 10%. That way, you’re paying them more when they bring money into the company, instead of all the time. Alternatively, introduce performance bonuses to other full-time employees in lieu of salary increases or in exchange for a lower salary. Set goals for them to meet that are based on the profitability of their role or department, whether it’s reducing costs or increasing sales, and reward them based on whether they meet their goals. This way, you’re rewarding staff for a job well done when the company is doing well. If you must cut, Who?

Staff expenses are likely to a major cost to your P&L. In labor intensive industries they can be as high as 70% of your total costs. The term labor intensive conjures up a vision of old-fashioned manual labor but in the service sector most of your costs will be labor. A business such as SaaS will be labor intensive, Often, they are less but they will be significant so they will be an important component of your cash flow forecast so you need to plan what positions you will hire, when you expect to hire them and at what cost. Costs go beyond salaries, you may incur payroll taxes, statutory benefits and industry standard benefits. Also, you need to assess holiday pay, sick pay and possibly overtime. These can add 30% to the salary number. You may need to supply tools such as computers, screens, workspace etc. A start up is different because often you are hiring your executive team first. Unlike an established business that hires to replace gaps or to expand. Assess your skills and identify gaps that must be filled before launch. Be honest – you cannot do it all yourself. Industry knowledge should be acquired if needed. Assess when the skills will be needed and factor in hiring time. Hire talent but manage the costs. Start ups are hard work. You need folks who are willing to pitch in and do whatever is necessary to get the business off the grounds Beware of corporate types who have been used to having a support network. Pay for the talent you need but get creative in packages. Base plus incentive. Consider people embarking on a second career Sell your business to candidates. Tell them of your business plan, vision, values, and culture. Show your enthusiasm for your business. Work backwards to establish your executive payroll and when costs will be incurred. Identify essential workers – production staff, programmers, waiters. This will vary by the type of business Research costs for your market and availability. These roles often have market rate As a start up the future is uncertain – you may have to pay a premium to encourage staff to join you. Especially if skills are in high demand. Incentive plans may be appropriate Your hiring plan should reflect your planned organizational structure. Does it fit? Quantify your employee costs and timing. Essential part of your cash flow. Tags: How to start a business, Achieve start up success, Hiring, Organizational structure, employee costs, The successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

You can cater to the rich, and I’ll take the rest; the good Lord made more of them. Kemmons Wilson founder Holiday Inn

People only buy from you for three reasons: You save them time You save them money You make them feel good Understanding the reasons people are, or will be, buying from you will be invaluable in setting your pricing strategy. You may be able to deliver two out of the three. You could save people time and make them feel good. Know your customer’s reasons for buying from you.

Tags: How to start a business; Achieve start up success, Pricing Strategy, Pricing for profitability, Pricing objectives, The successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

Somethings to consider when designing your customer loyalty program: What incentive are you going to offer? Points? Cash back? Gifts? Starbucks uses points that can be redeemed for free drinks, food, discounts – provides flexible options. Surprise gifts can be a great builder of loyalty. What behaviors are you trying to drive? If you want customers to interact via an App, reward them for using the App. Regular purchases? Consider a higher reward for those customers who repeat a purchase within a certain time frame. Think of your ideal customer and personalize your loyalty program for them. Sephora’s loyalty program has a three-tier program. You can join for free and as you get more points you progress up the tiers you get access to better rewards. Give back to the community in a way that is meaningful to your customers. Patagonia, the outdoor clothing company, gives 1% of its sales to environmental causes. If you are selling books you could give to literacy charities.

Until you understand your cost of production you cannot be sure your business will be profitable. 

Tags: How to start a business; Achieve start up success; How to assess your competition; The successful entrepreneur; business common mistakes; small business startup; avoid these common mistakes of business; mistakes in business; IBGR.network Jeremy Gray; Practical Solutions to Difficult Problems

I am committed to helping entrepreneurs succeed. I can bring the experience of 30+ years of experience at the C-Suite level in an MNC from Europe, North America, and Asia. Combine this with seven years of helping a diverse range of businesses and I can provide you with practical solutions to any difficult problems you may be facing.

Please do not hesitate to contact me for chat via the following links: mailto:jeremy@business-in-asia.org

Or schedule time via Calendly: https://calendly.com/3-continents-consulting

​My websites include: https://business-in-asia.org/ https://thedentistscfo.com/

My LinkedIn URL https://www.linkedin.com/in/jeremy-gray1

​Tags: How to start a business; Achieve start up success; How to assess your competition; The successful entrepreneur; business common mistakes; small business startup; avoid these common mistakes of business; mistakes in business; IBGR.network; Jeremy Gray; Practical Solutions to Difficult Problems

What are your core competencies? The concept of core competency was developed by Gary Hamel and C. K. Prahalad in 1990 and discussed in their book “Competing for the future”. A core competence is something that your business has or can do strategically well. Understand your competitors’ sales and marketing strategies Talk to their customers to learn of any gaps in the product offering Is the market high service high cost or low service low price. Or a combination of both? Is there room for an outlier? What can you do better? Will you compete on price? On benefits? On convenience? Something else People buy for three reasons: You save them money; you save them time; or you make them feel good. Which can you do better than your competitors?

​Tags: How to start a business; Achieve start up success; How to assess your competition; The successful entrepreneur; business common mistakes; small business startup; avoid these common mistakes of business; mistakes in business; Jeremy Gray; Practical Solutions to Difficult Problems

Tags: How to start a business; Achieve start up success; How to assess your competition; The successful entrepreneur; business common mistakes; small business startup; avoid these common mistakes of business; mistakes in business; IBGR.network; Jeremy Gray; Practical Solutions to Difficult Problems

Can be thought of as internal research or desk top research. Use sources that are available to you to start to refine your ideas.

Use the three questions you asked yourself in Episode 5 to begin your demand validation.

Objective is to confirm that your potential customers really have the problem you think they have, and they would be interested in your solution.

Avoid confirmation bias.

People searching for solutions often use Google. Find out what people are using Google for.

Use Google’s Keyword planner or Moz’s Keyword Planner to find out how many people search for specific words or phrases.

Make a list of the terms you think people will use when searching for a solution for the problem you are trying to solve.

It is to be hoped that many people are already searching for your solution. If not; then its back to the drawing board.

Identify potential competitors using the same key words. Analyse their value proposition. Can you do better? Can you see a gap in the market? Take FedEx’s classic USP:

“When it absolutely, positively has to be there overnight.” The boldness of its claim makes it memorable. FedEx is promising that they can deliver a parcel the next day; It’s tangible because FedEx has the network and infrastructure to get a package to its destination on time, and; It’s customer focussed. FedEx has found a unique part of its service that customers value.

Canva is an online design and publishing platform aimed at making it easy for anyone to create and share vector graphics. Its USP reflects this:

“Empowering the world to design”

It’s a nod to the simplicity of Canva’s tools. It also separates the platform from competitors like Adobe PhotoShop and Illustrator, and ProCreate, whose products are aimed towards experienced artists.

While rival tools offer more advanced editing features, they come with a steeper learning curve. Canva’s drag-and-drop shapes and elements let complete novices design a professional image, flyer, or document in minutes.

By understanding its place in the market, they’ve been able to unearth a competitive advantage. It’s a lesson in how to turn what could be seen as a weakness into a strength.

Online Conversations.

Join appropriate forums where your potential customers maybe found. Ask about their problems and current solutions related to your business idea. Are people suggesting work around solutions?

Consider the marketplace: Is the market growing or contracting? How quickly? How many potential customers are there? What barriers to entry exist? What is the intensity of the competition? Is there a threat of new entrants or an established player entering your market?

Tags: how to launch a product, launching your product, product launch plan, product launch, product launch formula, marketing strategy, IBGR,network, Jeremy Gray, Practical Solutions to Difficult Problems

Entrepreneurship is exciting and enjoyable but it is not easy

In the final segment you will hear about how entrepreneurs face the heartbreaking decision to close down their companies. There are a lot of emotions at play when facing the question, Do I soldier on? Or call it a day? Exiting gracefully can position to pick yourself up and start again.

Scaling up is a challenge so in the last 12 minutes you can learn from James Bilefield who helped Skype become a leading communications company. Hear his advice on what a company must do to scale up successfully

Entrepreneurs need to present their businesses in the best light. This can lead to exaggeration of the truth, even deception. Is this acceptable if the ends justify the means?

How do feel about bending the truth if it gets your business through hard times?

Case study 1: Two friends, with complementary talents, an identified unmet need and a clear solution to the problem in an industry that was not familiar to them Enough cash to last one year at launch,

Case study 2:

A solid idea, an outstanding leader and top flight team able to attract funds from a leading VC. Proponents of Lean Start Ups and excited to get going.

What went wrong? Listen and find out.

The next topic may seem a strange choice for a radio show that focuses on helping entrepreneurs. It comes from McKinsey’s Public and Social Sector Practices. It is called Moving teams from campaign to transition: Five things to get right. But when I read the article. I saw it contained a lot of useful advice for us small business folks.

We will stay with McKinsey for the final article. Getting real about mitigating price inflation.

Do have a skills gap or a capacity gap in your company? In our final article for today from MIT Sloan the authors, Tracy Anderson and Peter Cappelli explain why hiring an outside on a short term contract maybe the ideal solution.

My apologies for the technical glitch in the first segment of the show

Then we turn to McKinsey Digital “Building e-commerce ecosystems on Amazon. A conversation with Rainforest’s JJ Chai” a cofounder of the Singapore based e-commerce aggregator. By looking at what Mr. Chai looks for a potential acquisition you can learn where you should focus your efforts and maybe achieve that big payday as you exit your business.

After that it is time for some self-refection. From the Harvard Business Review – How susceptible are you to the sunk cost fallacy? Have you continued a project too long after you should have abandoned it? Dragged yourself to an event in miserable weather just because you already bought a ticket with your hard-earned cash. These are examples of the sunk cost effect. Later in the show I will let you know what the author, David Ronayne has to say on the topic. Also, how you can assess your own susceptibility to the sunken cost, or continuation, bias.

Finally from Gartner Business Quarterly we can learn why do executives move forward with Strategic initiatives when they see pitfalls ahead. The author Marc Kelly says its due to overconfidence and in most cases their confidence is not justified.

No one can be sure what the post covid pandemic world will look like. What we can be sure of is that companies that react faster to the changes in the post covid world will fare better than companies that are slow to adapt. To prepare for the future the authors say businesses need to ask and answer five questions in the next five months. Listen to learn what are these five imperatives.

An article from Sloan suggests you should think through how changes have impacted your staff and how you prepare them for the skill sets they will need in the future. The authors define pivoting people as retraining employees so that they can fill the roles that are aligned with you company’s changing needs. Thinking what is needed, and preparing your employees, prevents employees needing to adapt on the fly, or even worse fail. Hear what they have to suggest.

Measuring your company's power to change.

It may seem impracticable to measure something as intangible as the power to change but the authors believe they have found traits or factors that can identify the ability of your company to change. They have found that most company’s fit into one of four types. Their suggestion is that you identify which category your company is in and then they have ideas of how to develop your capability to respond and adapt.

The four categories are:

·     In search of focus

·     Stuck and Skeptical

·     Aligned but constrained.

·  Struggling to keep up

Which category does your company fit into? Find out and take action.

Net Zero is likely to replace Covid as the top concern so learn from the World Economic Forum and their publication Aligning to Net Zero, How CEOs can get on board with the transition.

In a survey where 75% of participants said the most stressful aspect of their job was their immediate boss. That’s 3 in 4 folks who say their boss is causing them stress. And not too surprisingly, those reporting very bad or quite bad relationships with management reported substantially lower job satisfaction compared to those who had a good relationship with their boss. What can you do to improve this situation in your company?

As seniority often comes with age, connecting with the next generation has always been a challenge for business. But connecting with Generation Z, which are those born between the mid to late 1990’s through to early 2010’s the challenge is unprecedented. How can you market to Gen Z avoiding the cringe factor?

Firstly the article from McKinsey

How Tech will revolutionize retail. McKinsey & Company. John Straw, a senior advisor to McKinsey based in London, a serial entrepreneur and technology expert.

In this McKinsey article John Straw is focused on larger corporations but there is much in what he says that is applicable to entrepreneurs and not only in the retail sector.

For our next topic we turn to the Harvard Business Review and an article from their latest magazine Why Do So Many Strategies Fail? By David J Collins an adjunct professor of business administration at Harvard Business School.

This is an excellent article that looks at strategy from both the perspective of the disruptor start up and also the incumbent needing to defend its business as it faces new competitors.

Finally an interesting topic, again from the latest edition of the Harvard Business Review

CEOs with unusual names pursue unusual strategies by Amy Meeker HBR.

Can it be true that your name can influence the strategies you implement as CEO? Professor David Zhu of Arizona State University thinks so, and he has the research to back up his claims.

More information is available on the full length podcast on your favorite platform.

My show notes have full contact details or you can contact me directly on jeremy@business-in-asia.org.

Now you have a good idea about what your business is going to look like, what are the options you need to consider when deciding on the best legal structure. For obvious reasons today’s show, like all shows, cannot be country specific. I have no idea which countries may be of interest to my listeners but will cover the most common options open to you, but do get specific advice from a local expert before taking any action.

In this show we cover the items you need to consider in deciding if building a plant makes sense for you.

Your ideal site is the one that minimizes the cost to serve your customers. There are many factors to consider and many are conflicting. Trade offs will be necessary.

Note - my apologies there is a break at about the 36 minute mark due to a technical breakdown. I hope this does not impact your listening pleasure too much. Regards Jeremy

Distribution challenges may be different in an overseas market from your home country. 

It is easy to make mistakes when entering new markets. Even major multinational companies can fall foul of language and cultural differences. 

When it comes to distribution strategy your objective should be to meet a simple criteria. To deliver the right product to the right place and the right time at the right price.

Getting your distribution strategy right is essential to customer retention. Your customers will not be happy if they cannot get the product they want, where they want it when they want it. Failing to meet these needs may result in your customer trying an alternative and possibly finding it fits their needs better.

To improve your chances of success there are three fundamentals you must focus on:

1. Is the target company a good fit in terms of size, industry and culture?
2. Getting the valuation right
3. Planning and implementing a solid integration strategy.

Of these the first and third are most important. If you overpay it will not wreck the deal, but selecting the wrong target and a poorly prepared and/or poorly implemented integration plan will put the future success of your deal in jeopardy.

In today’s show we will consider whether you should go it alone, or use an agent or distributor.

In any overseas market you enter there will always be local competition and may be some international companies that got there before you.

What are their strengths and weaknesses? From this you can:

• Understand your source of competitive advantage.
• How will you compete?
• Why will you win?
• What is your market entry strategy?

This week I cover why strategic plans fail. How to make your strategic plan actionable, ensuring your plan is relevant to your employees, how a strat plan can provide guidance to decision making and finally what needs to be done to keep your strat plan relevant. 

🔑 Key Takeaways:

1️⃣ Effective email marketing is the backbone of any successful marketing approach. Building a strong email list, creating valuable content, and segmenting your emails are vital steps.

2️⃣ Relying solely on social media platforms for marketing can be risky. They can change their algorithms or even shut down your account. Use social media strategically, but remember that email gives you control.

3️⃣ Combining social media advertising with email marketing can be a powerful strategy. Running ads to promote email signups helps grow your list and nurture leads toward making a purchase.

So, if you're eager to learn practical strategies to boost your business through social media and email marketing, this episode is for you! Tune in now!

Constraints lead to Creativity.

If you are a minimalist entrepreneur the early stages of launching your business is all about constraints. You need to focus on doing one thing well and avoiding the temptation to try to do everything at once. Scope creep where a project or product launch becomes unwieldy due adding just one more feature, and wouldn’t be nice if we could do this. Sahal Lavinga uses this check list to keep things manageable.

·     Can I ship it in a weekend? Most prototypes of a product offering should be capable of being developed in 2 to 3 days

·     Will it make my customers lives a little better?

·     Is it likely a customer will be willing to pay me for this solution?

·     Can I get feedback quickly?

This first product does not need to be pretty. Maybe the best example of a popular but not pretty solution is Craigslist. It’s never been pretty but it has always worked. So not being pretty has been no impediment to growth. An unpretty but effective solution will sell. A pretty but ineffective solution will not.

Rejection is part of every entrepreneur’s life. The proposal that is not accepted, the call that is not returned, the blog does not instantly go viral, the client who terminates a contract. But if you believe social media, stories in the press, courses that offer instant income, you could feel that everyone else has the secret to success figured out and only you are struggling to gain traction.

Maybe you tell yourself that you need to work harder, put in longer hours, expand your social media presence, start podcasting, writing a blog. These take time, as it is likely you are hustling as hard and as fast as you possibly can. You do not have time to breathe let alone think. Even though you know it's not right you focus on execution and the short term.

What can you do about it? Dorie Clark suggests you adopt strategic patience. Strategic patience is the ability to do the work without any guarantee of success, to toil without accolades, or recognition. To accept that things will take longer than you expect. It is writing that blog when no one reads it, to test your ideas and eventually develop a following. You will not be able to see progress on a weekly, monthly, or maybe even on a yearly basis. Big goals are not achievable in the short term. But most things can be achieved in the long term and your efforts will not be incremental, eventually they will be exponential.

The first step is clear the decks and create White Space for yourself.

Ask yourself Why am I doing this task at all? Can someone else do it? Or should it be done at all? Where should I focus my effort to get the greatest return? If I was starting fresh today, would I choose to continue to invest my time in this project?

David Allen, author of the well-recognized productivity guide, “Getting Things Done” says “You do not need time to have a good idea, you need space. And you cannot think appropriately if you do not have space in your head” ​ Tags: How to grow a business, achieve business success, employee individualism, self-assessment, motivation, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes; IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

1. Basic Financial Skills Financial skills, such as budgeting and financial statement analysis, are necessary for running a business. Creating a reasonable budget and sticking to it can be the difference between your venture’s success and failure. By learning this skill, you can avoid overspending and appropriately allocate your company’s resources.

It’s also imperative to know how to read and prepare financial statements. Aside from being required for reporting and tax purposes, these documents help you track performance, make future projections, and manage expenses. They can also be useful to investors and banks considering funding your startup because they show your business’s financial progress.

2. Networking Your network is one of your greatest assets. Networking can enable you to not only meet like-minded professionals but build your future team and keep a finger on the pulse of your industry. Your professional network can consist of:

• Co-workers • Alumni from educational institutions • Professors and teachers • Industry leaders and speakers • Clients • Friends and family members • Business professionals in your geographic area • Others in your industry with similar interests, responsibilities, and goals

Identify and reach out to people who can guide you in your entrepreneurial journey and inform your decision-making. Ask them about their business, how long they’ve been in their industry, and lessons they’ve learned from successes and failures. Perhaps they’ve started several companies and can offer valuable advice about raising funds, developing products, and building a client base. They may even be able to connect you to professionals in their networks whose work aligns with yours.

In addition to leveraging your network, expand it. You can do so by signing up for networking events or using LinkedIn to find professionals with whom you have shared connections, similar interests, and job titles.

3. The Ability to Accept and Act on Feedback To succeed as an entrepreneur, you need to be eager to receive and act on feedback. This skill requires you to stay humble and accept that your idea of the perfect version of your product may not resonate with potential customers.

One way to gather feedback is by conducting interviews with potential customers from your target market segment. These interviews

can validate your business idea and provide constructive criticism regarding your product, proposed business model, or assumptions you’ve made about users.

You may also receive feedback from investors, more experienced entrepreneurs, and friends and family. Some of it may be unsolicited. You’re not required to implement all of their advice, but it’s beneficial to consider it. Would their suggestion increase the quality, value, or user experience of your product? If the answer is yes, take steps to make those improvements.

Don’t Fool Yourself John Osher, a serial entrepreneur behind the SpinBrush toothbrush and other successful consumer products, asserts that the most important thing you can do is find and listen to the truth, no matter how hard it may be.

He points out that willful blindness to customers’ negative feedback can lead to costly mistakes.

“If an entrepreneur puts truth first, they’ll always find a way to solve the problem,” Osher says. “Putting your personal feelings and passion for the product ahead of the truth is a recipe for failure.” 4. Pattern Recognition Pattern recognition—in data, market trends, and user behavior—is an often overlooked skill for entrepreneurs. Identifying patterns in cash flow statements, for example, can enable you to make predictions about future cash flows. When observing market sales data, you can identify seasonality or other time-related trends that inform your long-term goals.

Nothing happens without people and unless you are a solo practitioner you will be working with others as you launch your business. Your partners, employees, backers are not perfect, and it is your role as the leader of your business to keep the team together and provide an environment where they can perform at their best. ​ An article in HBR published in 2016 cited some remarkable results when companies focused on their employee’s strengths: 10%-19% increase in sales 14%-29% increase in profit 3%-7% increase in customer engagement 9%-15% increase in engaged employees 6- to 16-point decrease in turnover (in low-turnover organizations) 26- to 72-point decrease in turnover (in high-turnover organizations) 22%-59% decrease in safety incidents A Gallup survey found that the more hours in a day that an employee used their strengths the more likely they were to report feeling energized, happy, learning and being treated with respect. Further people who used their strengths everyday were 3X more likely to report having an excellent quality of life and 6X more likely to be engaged at work. How can you have happy team members and deliver impressive business results? First, of course you need to identify your employees’ strengths. Look for broad areas of talent. You probably already have a good idea of their areas of expertise. This can be refined, look to where they naturally gravitate. What do they do quickly and efficiently? When do they procrastinate? Talk to them about where they see their skill set. Leadership As the leader of your organization you need to set the tone were focusing on employee strengths is part of the culture. All senior managers must embrace this concept if it is to be effective. Employees should believe in the statement: My manager focuses on my strengths Generate awareness and enthusiasm for a strengths-based leadership style. One company displayed the employee’s top five strengths in their office or cubicle. Identify and publicize when employees use their strengths to be successful Keep strengths in mind when developing project teams. Assemble teams where team members can play to their strengths and support each other As your company grows build a network of strengths advocates who support all employees using what they are good at to their best advantage.

Now, let’s be honest: employees can’t completely avoid their weaknesses. That just isn’t possible in the real world. But instead of having people waste too much time trying to improve in areas where they’re unlikely to succeed, managers can form strategic partnerships and thoughtful processes that help them work around their weaknesses. Data suggest that focusing energy on improving in areas that come most naturally to people reaps high returns, as employees and organizations that incorporate strengths as a strategy tend to realize significantly positive business results.

The best-laid plans of mice and men often go awry Robert Burns

Your plan is finalized, as you have used a financial planning software the numbers should tick and tie. You are ready to present to potential investors who will be blown away by your financial skills. Maybe not so fast. The plan can do more for you, if you take a little extra time. ​ Take the time to create different versions of your plan based on different assumptions. You are entrepreneur, you are naturally optimistic, you are enthusiastic about your product – how can anyone fail to see the value in what you are offering. Unfortunately, expectations and reality do not always match up. The best laid plans……… Success does not always come as early planned and sales do match up with your projections. Costs are higher than anticipated. Good staff is hard to find. Your base plan that you have prepared is your best estimate, your base case. But it is worth developing some less success scenarios. Model if sales are 5% lower, 10% lower. Your first sale is three months later than planned. Costs are higher. Maybe model cases to a level where you agree (with yourself) that the business will not be viable. This will give you an idea of how much cushion you have between your base case and going out of business. Look at your funding requirements. How much extra time could, say, an additional $100,000 in investment buy you? Do not let this exercise be just look at the downside. Model some upside cases. You maybe surprised by how much better your business looks if sales are just 10% higher than forecast. Once your overheads are covered then the margin on those additional sales drops straight to the bottom line. It can be great fun to model upsides and may motivate you to go that extra mile to get those additional sales. Dream about that house, boat, car whatever you want, that those extra sales can deliver. Hope for the best and plan for the worst is a common expression. But as an entrepreneur you work towards the best and prepare for the worst. Take some time to perform a sanity check on your financial model. Does it really make sense? There can be nothing worse than have a potential investor point our a flaw or inconsistency in your plan. Take a look for the following: Does your financial model tie to your business plan? Are they consistent? Can you support your revenue projections if challenged? And you will be challenged. Are all funding needs adequately explained? If you are planning to buy equipment have some quotes to back up numbers, similar of leasing offices etc. Is the basis for all your assumptions clearly articulated and supported? Do you staffing levels make sense? $10 million in revenue with 3 sales personnel may not seem credible. Do you have the ability to hire, train and manage the staff needed? If growing rapidly this can be challenging Missing costs. Spotting a negative or something missing can be difficult. Scrutinize your costs assumptions to ensure everything has been included. Do not forget working capital. Your plan gives you the credibility to seek funding should you finance with debt or by investors. Debt has several advantages You retain 100% control of your company Interest is tax deductible Encourages discipline on the management team as those repayments have to be made on time. But bank financing can be difficult to obtain without a track record and collateral. Some suppliers for high cost items may provide funding towards the purchase. Equity financing is more common but You will need to give away part of your company Investors may want a say in the way the business is run. And it may not match your plans. You could ousted from your own company. It has happened. On the positive side there are no loan repayments to be made, and if your successful additional funding could be available faster than going back to your bank.

The Minimum Viable Product evolves from the Lean Start Up Theory.

Which espouses the fail early philosophy.

MVP is the first working version of a product, with just enough features to satisfy potential clients and collect & analyse their feedback for the next product version, with minimum effort and resources required. The next, complete product version is developed after elaborating on the initial user feedback.

A minimum viable product is not an MVP until it sells.

Example of an MVP – Amazon;

Most people know that Amazon began as an online bookstore. You may be unaware, though, that Jeff Bezos started out by buying books from distributors and shipping them to customers every time his online store received an order. The high book sales meant it made sense to keep adding more products to the store, then acquire warehouses, and finally provide each user with a personalized experience on the website.

The virtual MVP.

Build a landing page – test advertising to direct traffic to your site. Include a price and a buy now button. This does not go to check out but to a page that explains the situation and suggests the view leaves an e-mail address

Validates that people are willing to part with their cash to acquire your product.

No money to build an MVP or pay for advertising? Consider content marketing. Write a blog with content that your target market might find interesting. Using the knowledge of learned about where your customers hang out – post messages etc directing folks to your blog. There is no substitute for research. It can be frustrating when you just want to get up and running.

But more haste less speed. The steps covered in this series Is there a demand for my product can help you avoid the second leading cause of failure for startups; No one wants your product

Tags: how to launch a product, launching your product, product launch plan, product launch, product launch formula, marketing strategy, IBGR,network, Jeremy Gray, Practical Solutions to Difficult Problems

I am committed to helping entrepreneurs succeed. I can bring the experience of 30+ years of experience at the C-Suite level in an MNC from Europe, North America, and Asia. Combine this with seven years of helping a diverse range of businesses and I can provide you with practical solutions to any difficult problems you may be facing.

Please do not hesitate to contact me for chat via the following links: mailto:jeremy@business-in-asia.org

Or schedule time via Calendly: https://calendly.com/3-continents-consulting

My websites include: https://business-in-asia.org/ https://thedentistscfo.com/

​My LinkedIn URL https://www.linkedin.com/in/jeremy-gray1

If the results of the research covered in episode 6 has shown that there are potential customers for your product you need to learn more about them.

Zoom down from the 30,000-foot view to get real answers to questions such as:

Are people willing to pay for your product? How much? How do they solve their problem currently? What do they think of your idea?

The more specific the better. Facebook, LinkedIn are too broad. Focus in on your likely potential customers. Bloggers Influencers Podcasters who comment on your chosen field.

Identify your ideal customer, where will they be found? How do they make their buying decisions?

Identify at least 10 sources, the more the better.

Get specific – identify individuals you want to talk to. Ensure they represent the range of potential customers.

Reach out, personalize, do not sell.

Analyse the responses. Take a look at the response rate – this could be indicative of the level of interest.

Based on the three questions you asked yourself from Episode 5 – propose your solution to interested parties. Include a price point. The price point should be at a level that will sustain your business. High is better than low at this stage. ​ Tags: how to launch a product, launching your product, product launch plan, product launch, product launch formula, marketing strategy, IBGR,network, Jeremy Gray, Practical Solutions to Difficult Problems

The second most common cause of failure was that there was no demand for the product or service.

How can you avoid spending hours and money developing your business only to find that no one, or at least not enough people, wants your product or service?

Before you start your business do your research and make sure that customers are interested in buying your product. You believe in your product but in reality, it’s probably not perfect. That’s why you need demand validation.

To test and validate your business idea ask three questions: What problem do my potential customers have? What is the solution to that problem? Why should people pay money for my product?

Behind these questions are further questions. Who are my potential customers? Will my solution appeal to my potential customers? How much are my potential customers willing to pay?

Using your best thoughts on the answer to these questions start to sketch out your value proposition or unique selling proposition. A unique selling proposition, which defines your company’s unique position in the marketplace, is an important part of creating pricing power and a business that customers genuinely love.

A strong unique selling proposition lets you to stand apart from competitors and actively focus your energy on creating things that cater to your ideal group of customers.

As Seth Godin put it: Instead of working so hard to prove the skeptics wrong, it makes a lot more sense to delight the true believers. They deserve it, after all, and they’re the ones that are going to spread the word for you.”

Why You Need a Unique Selling Proposition

It’s likely that many of your prospective customers have difficulty deciding which option in your industry is the one that deserves their time, money and trust.

This selection can be a daunting process for customers that don’t have the experience to know what separates one competitor from another.

That’s why it is your job to assist them by making your unique selling proposition obvious, different and memorable enough that they can see exactly what your business has to offer that the other guys do not. At this stage you only have ideas, guesses, hypothesises that need to be confirmed or refuted. How this can be achieved will be covered in the next Segment – Demand Validation – First Steps – Your initial research.

Tags: how to launch a product, launching your product, product launch plan, product launch, product launch formula, marketing strategy, IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

Get your team pulling in the same direction to ensure your business success.