We as entrepreneurs love the feeling of being able to conquer our field of expertise, the industry and ultimately the world. At the same time this love and enthusiasm are usually short lived because we often try to fly before we learn to crawl. It is natural for us to come up with multiple “unique ideas” as soon as we decide to “start a business”. As Robert Herjavec quotes “Don’t start a business. Find a problem, solve a problem, the business comes second.” The key word is “a problem”, not multiple problems, not multiple initiatives. In short, do not try to solve “world hunger” all in one go.
If you are someone who already has a startup, a business or a problem you are trying to solve or in the process of setting targets for this year, here are some helpful tips that will help you stay on track and give you a feeling of accomplishment. This will also help move the needle in your business – Maybe not as fast as you dreamt, but it will move your business forward at a steady pace.
1. Do your research. Focus on Adding Value
Part of the problem with most of us is that we rush into “starting a business”, spend a lot on marketing ads, create social media pages, business cards, websites without putting in the work to prove our concept. Once the excitement of marketing is done, we still have to put in the work and make a sale to prove the concept and then put in the work again to grow and sustain the business. I have made the exact same mistakes in a few of my start ups at a very young age. Hence taking the time to do research for a few months or even a year is very critical in the planning stages of the business. Make sure the business you are trying to start is really a problem that exists in today’s world. Research can be conducted online, through brainstorming, surveys, webinars, 1 on 1 interviews, debates in several forums etc. This will help build the foundation of your solution, your business and eventually cash will follow.
2. Understand the financial requirements.
Do not jump into a business without putting together a full cost model. You need to know what your start up will cost as a business and also the cost of your solutions, products or services. Understand where the funds are going to come from. Funds can come through family, friends, investors, loans. The best form of start up fund is your own cash to help prove your concept, followed by friends and families. Do not take on massive loans without proving your concept and understanding the value it adds to the general mass. I’m personally in the service industry providing financial and real estate services. It is my goal to run the business with “zero” borrowed funds.
3. Use a business strategy model to scope your plan.
This is one place we all go wrong. Even with a great business at hand or a brilliant solution that solves one of the world’s impending problems, we do not move the needle in our business because we do not have a properly written down strategy that keeps us focused on the priorities for the year and the vision of the company. It is normal to fall into “idea diarrhea” in the initial stages, which makes all of us have scattered brain. This causes all of us to work on multiple initiatives at once. We need to focus on one solution at a time. I have historically used the Hoshin Kanri or the X-Matrix to lay out my business strategy. I have used it in the corporate world and use it for my business. It is important to write down the priorities and the initiatives that will help make your priorities a success in any given year. This will also help us reflect on our strategies and adjust our initiatives as needed with the ever-moving market.
4. Breakdown the strategy into Targets to Improve (TTI)
A strategy is only as good as the targets set to improve that will help meet the strategic initiatives. Without breaking them down into achievable targets it is impossible to measure the direction of the business. Targets to improve must be achievable, must have an owner, a team and a timeline to complete the initiatives. It is like making a regular visit to the doctor to ensure that our body is performing at its level best to keep us moving forward. These checkups are scheduled, and we are held accountable to eat healthy and take medicines if needed. Running a business is similar in many ways. Our business is our body and our “Targets to Improve” provide the necessary ingredients to drive it forward. We as business owners are the doctors to ensure accountability.
5. Have Key Performance Indicators (KPI) to measure DAILY progress of the Targets to Improve (TTI)
A target to improve is only as good as the Key Performance Indicators used to measure daily progress. Different business can have different daily metrics. Daily accountability through key metrics is also known as Lean Daily Management. It is like the gauges in a vehicle that shows just enough measures on the performance of the vehicle as it continues to operate. In business operations we use a tiered accountability structure or the daily GEMBA. Each daily metric will have an owner and a respective team to ensure progress is made. This keeps our resources at different levels in the organization accountable to drive the organization forward. KPIs are used by managers to keep themselves and their team members accountable daily.
6. Embrace social media marketing.
Let’s face it. Social Media runs businesses these days. In one form or the other we are marketing ourselves, our brand and our business. We must learn to network, continue to build relationships, post value added content on social media and continue to promote our business daily. Our posts may not get any responses in the beginning. It is common to see that. Do not be discouraged. Continue to embrace social media, building the networks, making that 1 on 1 connection as it will build the pipeline and the foundation for future growth and success.
7. Keep up with current events.
No matter what business we are in, time and tide wait for no man. Markets are changing, our customers’ needs are changing, and our competitors are finding newer ways to get closer to our customers. Our goal as business professionals are to ensure that we continue to provide the best value to our customers pain points by keeping an eye on the market, by working on getting closer to our customers and most importantly by keeping an eye on our competitors to understand their trends. If we don’t take care of our customers, our competitors will.
8. Hire the Right People
Steve Jobs once said, “it doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.” We also do not need an army of employees to get the job done. Focus on quality over quantity. One efficient employee or a partner will provide much more value to our customers and business than a team of inefficient employees or partners. Therefore, hire smart and give them the autonomy to innovate for our customers.
9. Improve your leadership skills.
Notice how I said leadership and not managerial. It is important to be more of a leader than a manager. Leading your team members or employees are much more important than the metrics used to measure the performance of your business. If you treat your people right, they will take care of your business and your customers. It is important for every person to understand their leadership style, the gaps in their leadership and pick one area to improve every year. Practice makes perfect. Keep closing the gaps in your leadership style and you will develop into an empathetic and powerful leader.
10. Continue to be a student.
As you master the art of your business or areas of expertise, always find gaps in your knowledge that are critical to your business. Always look ahead 5 to 10 years when picking a subject to learn because that is what will keep you relevant and competitive in ever changing market. You can learn different topics online or register for classes in local universities to help adding to your skillset. When team members watch their leader being a lifelong student, it will motivate them to learn more, which is not only beneficial for them but also for our businesses.
11. Give your health more importance than your wealth.
Health is better than wealth. Take care of your health first, which is the first step in ensuring that the last 10 points discussed can be taken care of. If you are not sure what to do, consult a dietician and a fitness specialist as a starter. There are simple YouTube videos you can follow for regular exercises and healthy foods. I personally wake up between 5AM to 5:30AM everyday to start my day early and to get an hour and half of exercise in. I have personally noticed that my mind works sharper when I start my day with a workout. Without good health, it will be difficult to run the daily operation of our businesses. Promote health related events within your team. Leaders that value the health of their team, shows that the foundation of the business are our team members who takes care of our customers and will eventually determine the success or failure of our businesses.
I hope these 11 points are beneficial for each one of you reading this article. It has been beneficial for me and all of them were lessons learned from my career as an entrepreneur and a business professional. I have been able to put together a process and like one of my mentors say “Stay the course” which has helped me to understand the value provided by my business to the general mass, the daily progress of my metrics and the eventual financial gains I can enjoy as I continue to deploy the process. I’d like to hear the thoughts of all the entrepreneurs and business owners out there. Give me your views on how you operate your businesses.
Varghese Thomas
Zindak Investments
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