Advice for startups: There’s always a better way

Advice for startups: There’s always a better way

“There’s a way to do it better – find it.” – Thomas Edison In recognition of National Small Business Week earlier in May, small business owners were celebrated for turning their innovative ideas and passion into successful business ventures.

It is richly deserved recognition. In fact, research by the U.S. Small Business Administration Office of Advocacy and others suggests small business owners outperform larger companies when it comes to driving innovation.

Specifically, considering patent issuance as a measure of innovation, it is estimated that small businesses produce sixteen times more patents per employee than large firms. While small firms’ cumulative patents account for only eight percent of total patents granted, they contribute a fourth of the patents in the top 100.

Patents, however, are only one aspect of innovation in small business activity and success. Management science guru Peter Drucker notes that innovation is the specific instrument of start-ups. The question becomes, what else is important for us to consider that drives innovation and transforms our start-ups into successful ventures?

Let’s examine three critical aspects of small business start-ups as each relates and applies to the role of innovation and entrepreneurship: 1) growth over time; 2) tThe critical path of innovation, and 3) small business in a global economy.

Growth over time. Innovation is not the exclusive providence of fastpaced scalable growth ventures. The eminent entrepreneurship scholar, Alan Carsrud, visiting research professor atbo Akademi University in Turku, Finland, recently spoke at the University of Cincinnati. He, along with co-authors Malin Brannback and Niklas Kiviluoto, note that while we tend to over focus on the “gazelles” that seek rapid, accelerated growth, the reality is that 97 percent of all firms are more accurately described as “mice” that seek slower, incremental growth over time.

For example, a local company, Cincy Tool Rental, personifies the value of steady state growth over time.

Founded in 1971, by retired 33-year veteran firefighter George Bruner, he spent the next 44 years innovating business practices, hiring employees, opening new locations and more. In talking recently with his daughter, Barbara, it is clear that his vision, insights, passion and drive were key factors in taking his ideas to practice and grow the business her two brothers now successfully run.

Innovation. While a complete treatment of innovation is beyond the scope of this column, Bruner typifies three critical dimensions of entrepreneurs: curiosity, creativity and connections.

Be curious always, both within and outside a given topic area. While it is often good to avoid distractions, sometimes our best learning occurs when we take a divergent path while pursing information in another area (e.g., making the leap from firefighting to tool rental). Innovators develop a sense of the value of creativity to facilitate change, break with the norm and challenge conventional wisdom.

Finally, look for and make connections. Nothing happens in a vacuum.
Small business in a global economy.
At its core, innovation is about new methods, ideas, products, and services that create value for people. Marshall McLuhan, the late professor and thought leader from the University of Toronto, notes that innovation in practice does four things: It enhances something. For example, Google, Apple, GoPro all enhance how we live, communicate, and capture memories.

It eliminates something. For example, smart phone applications make direct connections often eliminating once established connections.

It returns us to something from our past. What goes around comes around. Think Southwest Airlines, Starbucks, craft beer.

Over time, it reverts to its opposite. That is, innovation is specific to the situation that propels it to prominence, but it is then destroyed by it. Innovation in this sense is both transformative and relentless. For example, the telephone has not completely disappeared, but its transformation continues apace. In the words of the Austrian economist Josef Schumpeter: creative destruction. Innovation has a shelf life – who knew!

Our operations may be local, but our markets no longer need be. Moreover, our universe of knowledge that feeds curiosity and innovation is virtually limitless. Small business in a global economy is only limited by our imaginations.

Just like Bruner, innovators and entrepreneurs challenge traditional definitions of value and seek to solve market inefficiencies. Time to heed Edison’s advice: find it! Till next time, all the best for continued entrepreneurial success!

CHARLES H. MATTHEWS

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Independence doesn’t mean going it alone

Independence doesn't mean going it alone

You worked hard in your career.

You put in the long hours, missed family events, changed cities, and made sacrifices so that you could move up the corporate ladder. And it worked. You took on roles of increasing responsibility and achieved a lofty position with a Fortune 500 firm. Man, you were somebody who had it all. Then one day, it was all gone.

Perhaps you got “downsized.” Perhaps you were tired of all the sacrifices and then decided to chuck it all and not “work for the man anymore.”

OK, so now what?

There can be a sense of loss going from a big job to being your own boss.

First let’s talk scale ... you are the entire staff, at least in the beginning.

You make the coffee and the travel arrangements. You are the senior (aka only) sales representative for your business and you are the marketing department as well. You don’t have anyone coming into your office asking you to fix a problem or give them career advice. Many of your work “friends” have already deleted your number from their contact list.

Your spouse helps with the back shop functions at night around the kitchen table. You are, in fact, alone.

You are no longer “the Big Cheese” and you’re dealing with the reality that you, in fact, are dispensable.

Even if you planned the exit from your last company, you can’t really prepare for what is coming as an independent business owner. You have to live it to appreciate it. But it isn’t gloom and doom.

Here’s the really cool thing. You will meet wonderful people out there who are all willing to help you succeed. For me, that has been one of the most gratifying aspects of owning my own business. Of course, growing your business into a successful enterprise is tops, but enjoying the ride along the way is so important.

There is this fantastic community of other independent business owners out there, fighting the same fight like you. They are your new friends and colleagues. Relationships are genuine because they don’t want your job.

They want you to succeed. And they will help.

It is very gratifying knowing that you had what it takes to build a sustainable business. Not everyone can do it. You also learn to measure happiness in life by the mark you leave, rather than the title on your door. The struggles make you appreciate the small successes like never before.

And you develop a sense of gratitude about life and things, learning to never take anything for granted.

Yes, moving from the corporate world to being your own boss can be a real slap in the face. But what you learn about yourself on the journey, and what you get from your success, makes it all worthwhile.

Take the plunge. It will be the best move you ever made.

By Mark Matthews, owner of NuVision Strategies, developed the first version of the STAR Process training program in 1992. 

Entrepreneurs, what are you waiting for?

Entrepreneurs, what are you waiting for?

I was a late bloomer. It took me 25 years to finally become an entrepreneur!

When I finally graduated from college after the war in ’73 (that’s 1973, not 1873), there was a recession going on and the only place that offered me a job was Kroger company unloading trucks, stocking shelves, ordering merchandise and running a checkout stand during busy hours.

Pretty glamorous, eh?

About four months of that grind was all I could take. Resigning quickly from Kroger was unheard of at the time and my friends thought I had lost my mind.

Then Levi Strauss & Company, one of the best then and now, hired me.

From Strauss I went to work for a smaller company in Indiana.

I had become an entrepreneur.

During my 7 years at the Indiana company, a large a success Medical Device company, I had been executive director over quality, regulatory and involved deeply in New Product Development.

Yet when, at the end of every year, as our company kept bringing in new business, making money and winning awards, at least one of the other companies would be losing business and money, thereby always reducing my bonuses and raises.

I finally decided that if I was going to truly benefit from my efforts, I might as well lose the training wheels, run my own show and take my own risks.

So, at age 52, I became an entrepreneur.

My only business plan for this new venture was knowing that I was going to succeed.

I picked up my first major client, five months after resigning from the previous company. And while the word “entrepreneur” conjures up swashbuckling, sexy, romantic images to many, to me it was always tough, sometimes lonely and never predictable.

I wouldn’t have traded it for anything else. For the first few months I was a one-man band working out of my small home office (it did have a window!). I worked long hours 5 days a week and spent the weekend doing what most people have an assistant to do.  The rest, as they say, is history – albeit a modest history of which I’m proud.

Tips from a conservative entrepreneur: 

•         Pace yourself. Take the long view. You’re building your future. 
•        Work hard and play harder. That’ll strengthen your perspective, which, of course, is your edge. 
•         Pay your  vendors before you pay yourself. 
•         If you have employees, make sure your employees feel that they work with you, not for you. 
•         Encourage your employees to become and think like entrepreneurs. 
•         I you have to start with debt, become debt free as soon as possible and stay debt-free.
•         When you hire or utilize associates, focus on a few people smarter and wiser than you are. 
•         Learn from others wisdom; don't be afraid to ask for help.
•         Always remember in the market place, you’re only as good as your last piece of work.
•         Believe in yourself, not your own press.
•         Whether it’s good, bad or ugly, don’t be inflated or deflated by what others have to say about you.
•         Just be who you are, but know yourself very well.
•         Manage your expectations to prevent what may feel like early failures.
•         It’s never about how big you are, it’s how good you are. That will draw people to you.
•         Size only matters when it comes to the magnitude of your ideas.
•         Be boldly responsible and accountable.  Never blame

Fear stands between you and being your own boss and a successful entrepreneur. Nothing is ever easy, especially those that bring huge self satisfaction and personal success. 

Can I really start my own business? 10 Signs you’re ready to launch Your Own Business

Can I really start my own business? 10 Signs you’re ready to launch Your Own Business

You probably know that starting a business can be an intimidating process necessitating a great deal of hard work. But the query has been lingering with you night and day. Maybe you are just not happy with your present position. Probably you have always imagined of launching your own consulting firm or shop.

Everyone isn’t equipped to be a business owner, but there is a great number of us who have the skills but do not recognize our own potential. Let’s go over 10 qualities that entrepreneurs typically have. (Hint: Most people have these)

The Creative Type

If you are fed up with having your creative concepts/ideas go to waste, then probably it is time to move out of that 9-5 and work for yourself.  Don’t waste your precious time and creative energy at jobs that wont supply you with the money you need to live the life that you want!

You’re Motivated

You do not need something or someone to get started simply because you have that inner drive to motivate yourself. You’ve vision, direction, and you’re passion about your idea is the only thing you need to get started doing whatever is you are doing(such as duties in your 9-5).

You’re Independent

This implies that you are a problem solver who’ll try to discover most issues on your own and solve them. You do not need anyone guiding you each and every step of the way. You’re smart enough to understand when you require help but independent enough to know not to depend on others to complete the job. These people who are independent can make exceptional business owners.

You are Passionate

If there is one business idea which stays with you that you have absolutely fallen in love with, most likely you can turn it into reality. Business owners and entrepreneurs are really passionate about what they actually do and will do anything possible to make their vision into a service or product for the rest of the planet to enjoy. You have a "Passion for business";  the common thread amongst entrepreneurs.

You’re Organized

Organizational skills are a must for running a business. You’ll need to organize your daily objectives, your finances & your employees(if you get any). You’ll eventually require a financial adviser for your taxes & an attorney for your legal records. Great organizational skills are crucial in building a profitable business and keeping the headaches away.

Helping People Is Your Specialty

Do you want to help others? You are able to design a business which is not just about generating money, it is about offering a service/product that makes someone's life better. Providing support & developing a community with a shared passion is also a great way to help people.

You Are an Expert

You have accumulated thousands of hours working on or with your craft; you’ve gotten to the point where you know more than the average person(it doesn’t take much) on a particular subject. This indicates you have a great level of understanding & experience to know what potential customers want to buy or want to know(you can sell knowledge too!). Operating your own business lets you bring your uniqueness and your interpretation of your craft to the table and give tremendous value to people.

You Are Brave

You aren’t afraid of failure…well we all are but some of us have a higher will to succeed than a fear of failure. You are possibly going to experience a failure at any moment as a business owner. If that does not scare you, then chalk that up as one more sign.

You’re a Born Leader..or at least can act like one

Having an excellent idea is a very important factor, but being capable to lead a profitable business is a real skill. If you’re an excellent leader, motivator, or just a person that can put everyone on the same page as you.. then the world of entrepreneurship is for you.

You Want to Prove Yourself

You have an idea and absolutely nothing drives you more than when individuals inform you that you cannot do that or it will not work. You will need to show them you are right. If establishing your own business from this concept and proving it can be done tickles your fancy..then you need to start your business today!

Do you’ve a business concept/idea that you’d probably enjoy launching & it has the possibilities to be successful or profitable? Do you have some of the above qualities? You don't have to have them all, because you know you are a quick learner. If so, now is the great time to make that start to success!

10 steps for achieving success in the Hidden Job Market

10 steps for achieving success in the Hidden Job Market

Step 1: Give Up the Job Seeker Label
Declare yourself to no longer be a job seeker and stop telling people you are looking for a job. This is perhaps the most difficult step, but it is the most important.

There may be a temporary vacuum caused by not knowing how to think and speak of yourself but not to worry, this gap will be replaced very quickly with a new, refreshing and empowering sense of professional identity, one that restores a sense of clarity, dignity and sense of personal power to your professional life.

Step 2: Adopt a New Empowering Identity
Declare yourself to be a problem solver, solution provider, fulfiller of unmet needs, consultant, adviser or mentor, whichever name appeals most to you. Choose a name you really like and one that you can identify with easily. 

If you cannot think of a good name, brainstorm with your friends or coach if you have one but most importantly stop talking about getting a job and being hired unless you like having doors slammed in your face. 

Labels are a form of branding or positioning which either open doors or close them. The employee label is a diminishing, self limiting label that often results in giving your power away. This is ultimately damaging to your self esteem and self respect. 

Step 3: Get to Know the New You
You will need to spend some time getting to know the new you, the person associated with the Real Me Hat. With support, you will find this to be a fun, exhilarating and immensely validating adventure. 

Your challenge is primarily in letting go of old outdated notions and beliefs that no longer serve you and which are simply no longer effective in the marketplace. The world has changed. It is time to wake up.

Acknowledging the truth about this to yourself may be difficult in light of the fact that so many advisors continue to tell you to revise your resume yet again and to do more networking.

Note: Networking is meaningless term unless you understand precisely what it means and have the tools and skills to bring about the end result. Without having all the tools, you are likely to get yourself more frustrated. The chain is only as strong as the weakest link.

Step 4: Translate Your Accomplishments into Solutions and Value
Most people are aware of their accomplishments but are often unclear on how their skills, talents and experiences translate into solutions and value to organizations. Since it is critical for you become clear and articulate about your unique value, it will be important to extract your special problem solving abilities from your accomplishments. 

The easiest way to do this is to start with one recent and important accomplishment. Go back in time to just before your accomplishment happened and take a visual snapshot in your mind of the state of affairs in the organization or environment in which you were working. Then ask yourself this key question: what were the chief problems or needs that existed? Write them down. 

Now fast forward to right after you completed your accomplishment and once again, take a snapshot of the situation and environment. Ask yourself these questions and write down your answers.

• What changed from one picture to the next?
• How did the change occur? 
• Utilizing a problem-solution framework, what were the solutions that made the critical difference? 
• What previously unmet needs got fulfilled?
• How did you personally create and implement these solutions? 

Instead of focusing on your talents and skills that you usually take for granted, focus instead on the value that you brought to the situation. Now continue this process with your remaining accomplishments. When you have done this exercise with all of them, take a step back and look for the dominant pattern of solutions and value that you repeatedly bring to each situation. If you look closely, you will find this pattern. This will then become the focal point in your letter of introduction in step 6 below.

Step 5: Stop Using a Resume
A resume is a fundamentally limiting tool because it promotes the label of you as a job seeker. The resume is also an ineffective marketing tool because the intrinsic expectations and formal rules of resumes prevent you from selling yourself on paper in a compelling and effective manner. Professional resume writers may disagree but their "improvements" are still limited to a defined context. 

If you decide to actively pursue the 30% of advertised positions, use a functional resume only and keep a chronological work history separate from this document. Only provide your chronological work history if requested in an interview but otherwise do not even speak about it. Why? 

Chronological resumes are NOT effective marketing tools no matter how well they are written. They will also tend to pigeon-hole you into a stifling corporate mindset. A good example is the familiar gap in your resume, used by interviewers all the time to disqualify you.

Do you really want to play this game? Do you insist on punishing yourself in this manner? Here is a good response to the question "what were you doing between job A and Job B?"; "I was living my life, how about you?"

Step 6: Develop and Use a Letter of Introduction
In the place of a resume you will learn to use an amazingly powerful document called The Letter of Introduction. The advantages and uses of this tool are vast. The longer you use it, the more you will marvel at its many applications and level of effectiveness. 

Even the act of writing this letter is transformational because it opens the door to a freely expressive channel in you which allows you to convey who you are, the greatest value you have to offer and what you are seeking. 

The letter of introduction works equally well as an prelude to a serious business conversation and a networking interaction which can put you in touch with key people very quickly. You may want to have a few versions of your letter for different purposes. Learning to write and utilize a letter of introduction begins to awaken you to the world of effective marketing, something significantly absent in most job seekers.

The Letter of Introduction has several main components which are as follows:

• Opening paragraph to establish rapport and your reason for writing
• A Second paragraph honing in quickly and powerfully on your major value to organizations
• A short bulleted list of examples where you implemented solutions validating your assertion
• A Third paragraph briefly summarizing the most ideal projects for you.
• Final paragraph expressing why a phone conversation would be beneficial to both of you. This is virtually always the intended outcome of the letter.
• Important: Never use the words job, employment, interview, getting hired or salary anywhere in your letter!

You will acquire in depth tools and support for writing and utilizing your letter of introduction.

Step 7: Use Social Media Strategies to Identify Matching Problems and Needs
Once you know your specialty as far as solving problems and satisfying needs, your next step is to use all online and offline resources to identify potential sources of these needs. A good way to start this process is by asking a series of marketing questions that will allow you to effectively hone in on your target market and speed up the process of locating key people that match your profile. Here are some sample questions to get you started:

• What is your major targeted industry?
• What is your ideal company or organization?
• What are the primary problems or needs you have identified to be your greatest strengths?
• What are the people within organizations most likely to have direct involvement with these needs or problems?

Once you have answered these questions you can then start your search and sorting process. You will want to concentrate on LinkedIn and Twitter to establish connections but another great resource will be industry specific networks and contacts.

Step 8: Begin Conversations With People Matching Your Profile
As soon as you locate people who appear to be connected to your target market or industry, it is important to be proactive, to reach out and make contact. If you have some inkling that a person has a need you can address, it is best to make contact right away but be sure to establish rapport and make a connection before diving into the specifics of the situation. 

The art of relationship building and relationship based selling is one of our most powerful courses at Growth Innovations.

You will also find that you can share your goal and directly ask people for referrals to people and organizations that match your profile. Sending them your letter of introduction is usually ideal at this juncture especially if they give any indication of interest or receptivity.

Be sure you have a clear plan on how you are going to present yourself and the best way to interact with new contacts. You can work out these details with your coach if you have one and if not, you can do some role plays with friends or family. The aim is to get comfortable and confident with your approach and get it refined to the point where you can carry the conversation forward to completing a deal if appropriate.

Step 9: Complete Profitable Agreements With Best Organization(s)
Once you have started a conversation and identified the need or problem which matches your area(s) of expertise, you are ready to move into negotiation and make something happen. 

This can be a very quick and straightforward process when you have really clicked and have what the person needs. In other situations it may take several meetings to complete the deal.

Either way, you will want to be clear on the entire conversation and sales process and also clear on how you will take the person through the important steps. This is a stage where having a buddy or a coach for brainstorming is important. Role playing is the perfect tool for gaining clarity, skill and confidence in presenting yourself. 

Step 10: Utilize an Effective Learning, Coaching System to Ensure and Accelerate Your Success
If you feel able and confident completing all these steps on your own, great. Go for it! On the other hand, if you would like some assistance, I'm available to help you. 

The ideal starting point is a phone consultation in which we will assess your personal situation and then devise a complete plan of action tailored to your personal needs.

Keep in mind that most significant growth and learning in life takes place in the context of supportive relationships. No matter what your circumstances may be, working in partnership with others will have profound impact and value.

Here are six tips to avoid being a startup casualty

Here are six tips to avoid being a casualty:

1. Declare how big you want to be in 24 months and use this revenue goal to develop your game plan. Why 24 months? Because if you are to survive for two years while others die, you need to keep your eye on execution and the short-term results of your efforts. It makes no sense to waste your time on a five-year plan, for example, since the latter years may not matter if your short-term efforts fail.

2. Choose who you intend to serve. Where will you generate your revenue? Choose customers who have the potential to deliver the growth you want and be specific in your selection. Look for discrete groups of people who you believe want the value you provide. I always guide people to go after the ‘fast and easy’ customers since survival depends on how fast you ramp up sales. You can’t afford a six-month selling cycle in a 24-month game plan.

3. Determine how you intend to compete and win by answering the killer question: “Why should I buy from you and not your competitor?” This is where most businesses choke. You need to be clear and specific on how you are different than your competition. If you can’t answer the question, you will be judged as essentially the same as everyone else and will be invisible to the customers you’re targeting. The only statement is the claim that will distinguish your business from the herd: “We’re the only ones who...”

4. Focus on the critical few, not the possible many. You don’t have unlimited bandwidth and resources to do it all. Pick three things that you believe will help you drive your game plan forward and do them quickly. Many entrepreneurs fail because they are mesmerized by possibilities and try to achieve too much. Keep your to-do list short and get stuff done.

5. Cut the crap. Your game plan is as much about stopping things as it is about starting things. You can’t afford to continue activities that are not directly related to executing your game plan. Take an inventory of all the tasks you have on the go. Create a cut list of all the things you are now doing that should be stopped, and a keep list of the things you should continue to do as strong game plan contributors.

6. Plan on the run. Stay loose on your game plan – it’s not carved in stone. Be open to tweaking it based on what you discover and learn through execution. No plan ever turns out the way you intended; there are too many unforeseen variables at play. Plan, execute, learn, adjust, execute, learn, adjust is the planning model that works in a volatile world.

Final word: don’t get mesmerized by your long-term potential. Focus on the next 24 months; earn the right to stay in business longer.

Nine Reasons Startups Fail

Nine Reasons Startups Fail

“I’ll never forget my first startup. The story is as old as the hills of Silicon Valley: It was a great ride … until it flopped. Our primary business was crushed by an 800-pound gorilla and we didn’t have the wherewithal to pick up the pieces and make a go of it. C’est la vie.”

I’ve always been a big fan of learning from failure, so while most of my peers like to talk up their successes, I try to help startups avoid catastrophic failure and get to the next stage. I say “try” because, while some make it, most don’t. That’s the nature of the beast.

In any case, I have a pretty unique perspective on what tends to trip up founders. Here are nine ways I’ve seen startups fail time and again.

Their entrepreneurs live in a vacuum. It’s easy for entrepreneurs to become so focused, so wrapped up in their own vision, that they lose perspective. That’s actually one of the key benefits to seeking input from those old grey haired people that know your target market: they give you feedback and validate your strategy.

Their idea doesn’t uniquely solve a big problem. Contrary to the old line, “Everything that can be invented has been invented,” the more complex the world becomes, the more problems there are to solve. That said, it’s got to be a big problem and a way better solution than what’s already out there. Even better your “idea” must be a game changer!

They run out of cash. For every founder that manages to bootstrap a startup, there are dozens, maybe hundreds that run out of cash for any number of reasons before the business reaches financial equilibrium: they don’t want to give up a piece of the pie, they don’t budget properly, they don’t plan for how long it will take to hit breakeven much less profitability, their burn rate is too high, or some combination thereof.

They invent concepts, not complete products. Ideas and inventions are fascinating, but consumers and businesses generally buy products they can actually use. There is a world of difference.

There are big gaps in the strategy. There’s an old cartoon of two scientists at a blackboard filled with equations. Right smack in the middle it says, “Then a miracle occurs …” Some gaps are to be expected, but oftentimes, what startups leave to be fleshed out later – little things like low-cost materials, availability of components and infrastructure – end up becoming showstoppers.

The person/team does not have what it takes. Some founders just can’t get along. Others fall apart when the initial strategy fails, as it often does. Still others are out to make a quick buck and aren’t committed to working day and night over the long haul. Any VC will tell you, a big part of what they invest in is the management team.

Competitors with existing solutions don’t give up so easily. From disk drives and CMOS chip technology to pencils and paper, there are barriers to topple the status quo and, sometimes, old-school solutions that are tried and true and the powerful companies that market them hang in there far longer than anyone would expect. They simply wait you out until you run out of money! Do not underestimate the competitive landscape.

The market moves on them, or moves in an unexpected way. Markets are a complex phenomenon with lots of moving parts that are difficult to predict. Moreover, some entrepreneurs simply don’t think ahead. As the great Wayne Gretsky once opined, “I skate to where the puck is going to be, not where it has been.” Or better said for business, your plan puts you where the puck was!

They listen to bad advice from the wrong people. With all the hype over entrepreneurship, the quantity of information has gone way up while the quality has gone way down. That means entrepreneurs are getting lots of bad advice from unqualified sources. The worst thing about it is, when they actually get good advice that conflicts with what they’ve been told, they don’t recognize it for what it is. Sad but true.

Perhaps the most important advice I can give you is this: If your startup fails, it’s worth spending time to understand what went wrong. That’s the only way you’re going to improve the odds of making it next time. And, yes, there will be a next time if entrepreneurship is in your blood.  Hopefully this list will help you avoid a different pitfall.