Monday, September 21, 2020

5 Basic Ingredients For A Startup Recipe For Success

cooking-for-successI realized a while back that creating a new company for the first time is a lot like whipping up a great dinner entrée for the first time – you need a recipe, even though it may look simple. You know the basic ingredients, and you can visualize the results you want. Yet you may not be so sure where to start, and how to put it all together.

In all cases, don’t skip the basic training. Any startup coach or business advisor will tell you that, on your way to being a great chef, you don't start your journey by inventing the ultimate entre. First you work in the kitchen for a while, learning some tools of the trade, experiment with a few recipes, and test on willing clients. Finally you create and document your recipe (business plan).

There are two parts to every recipe – the specific ingredients, and the instruction steps for putting the ingredients together. For a new business, you can provide unique ingredients, but the preparation steps in your business plan must follow a tried and true recipe for startup success:

  1. Identify a market with a real need. This means find some hungry people who would love a good dinner, and be willing to pay for it. If you can’t identify customer interest, it doesn’t matter how good your product is. (not a solution looking for a problem)
  1. Be sure you have a great team. You need a good cook, good marketing, and first-class service. Domain knowledge and experience is a huge success factor. All the investment money in the world won’t make your company succeed, if you have the wrong team. (investors invest in people, not ideas)
  1. Effective and timely go-to-market. Don’t be afraid to test your ultimate entree on customers. Make them “feel the love.” Be adaptable to cultural tastes, trends in the market, and economic realities. But don’t practice too long. If your startup is over a year old, and your business isn’t yet ready, you have a problem. (time-to-market is critical)
  1. Viable financial model. Have you set the right price for your entree, and correctly included all costs? Have you projected sales and marketing costs, cash flow, and capital requirements? Show return on investment, growth rates, and market penetration. (validate your business model)
  1. Continuous improvement. Don’t stand still. Emeril Lagasse is always ready to “kick it up a notch!” Companies and cooks who rest on their laurels don’t last. Develop metrics with which to measure yourself and use these to incrementally expand and improve your offering as fast as the market and capital will allow. (scale up the business)

If you are already a chef, and you have your own money, you can skip the instructions. You can vary the ingredients, change the formula, or add an extra pinch of salt, and your pasta salad will still be great. If it’s your first time, don’t try to get creative on the “how to” side just yet.

If you are already a celebrity chef like Emeril, meaning you have a record of success using your creativity despite the odds, you don’t even need your own money, and you only need to scratch your business plan on the back of a napkin to get funded.

For the rest of us, the business plan must be the complete recipe, combining ingredients with process. If you don’t have one, your chances of success are low, even if you are an experienced chef. Now you know why professionals and experienced investors are quick to toss an incomplete plan.

Follow the “how to” instructions above for combining the ingredients, combined with you own “special sauce” (competitive edge), and I’m sure you will deliver a tasty dish, on time and with a profit. You can look forward to being a celebrity chef later. For now, get cooking!

Marty Zwilling

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Sunday, September 20, 2020

5 Business Relationships That Will Get You To The Top

Kathy_Ireland,_Warren_Buffett_and_Bill_GatesIn the world of entrepreneurs and startups, high level relationships are everything. You can’t start a business alone. You need partners, team members, investors, vendors, and customers. But people don’t realize that all relationships are not the same. There are people you only recognize on the street, business friends, and then close friends whom you can always count on to help.

Tommy Spaulding, in his classic book, “It’s Not Just Who You Know,” categorizes relationships into five levels, like floors of a building, and identifies the attributes of relationships at the different levels. More importantly, he talks about the actions required to build a network of contacts at the highest level. He also defines the five floors of relationships as follows:

  1. Meet and greet relationships (first floor). This is where most business relationships start and remain. You need something specific from the other person – a loan, or product order, or help solving a problem. After you get what you want, you move on, with no giving or commitment.
  1. Limited information sharing (second floor). But it’s very basic information, the type you dispense out of social obligation or because it’s a job requirement, not because you’re offering some insight into who we are. Many people call these “close” friends, but in reality there is no trust, feeling, or giving going on at this level.
  1. Emotional comfort level that goes beyond facts (third floor). You feel safe enough to voice opinions, discuss perspectives and share feelings in making decisions. In business, positional authority remains the primary guiding force at this level, and most business relationships stay at this level or below.
  1. Real same-page connection (fourth floor). This level allows for conflict and resolution with no hard feelings. Here you get the introduction of “netgiving” as well as networking. Friends to the end talk about what’s important to them and aren’t afraid to discuss private matters.
  1. Sharing the other person’s state of mind (top floor). They become confidants, advisers, and cheerleaders who understand each other’s needs and drives. Vulnerability, authenticity, trust, and loyalty are off the charts. It’s a relationship based more on giving than on getting. There’s only room for a few relationships at this level.

It’s often said, “it’s not what you know, it’s who you know.” In business, there is another dimension, the level of your relationship, and the level of trust and giving established. Of course, relationships seldom fit neatly into a given level. They’re far too dynamic, and may even move up and down floors like an elevator.

I recommend that you use the top floor as the reference point to think about your own business relationships. How many do you have at the top level, and what are you doing to actively develop more? Are your “close” business friends actually at the top floor, or merely at the second floor? Can you count on them for a real help or a big favor?

Tommy insists that building meaningful relationships, without sacrificing integrity or treating other people as a means to an end, will always help you achieve your goals and move beyond them, personally and professionally. These relationships must be based more on giving than on getting. That kind of giving gives you more than you could possibly imagine.

All relationships require hard work, patience, understanding, as well as tactics and strategies designed to make them blossom, just as you have tactics and strategies for marketing, selling, advertising, production, distribution, and customer service. Thus strong relationships are the basis for all the other keys to business success.

Marty Zwilling

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Saturday, September 19, 2020

How To Pull Customers To Your Website With Real Value

happy-customers-with-computersTraditional marketing says you have to “push” your message out to customers, over and over again, to get you remembered. A more effective approach in today’s Internet and interactive culture is to use “pull” technology to bring customers and clients to your story. You pull people in by providing new content with real value on your website at least every few days.

Guy Kawasaki, in his classic book “Enchantment: The Art of Changing Hearts, Minds, and Actions” provides some in-depth recommendations on the “how to” of pull technology. Here are some of his recommendations for web sites and blogs that I particularly recommend to entrepreneurs and startups:

  1. Provide good content. This may seem obvious, but how many websites have you reviewed that are static and just plain dull? A website or blog without appealing or entertaining content for your market segment is not enchanting.

  1. Refresh it often. Ideally, you should update content at least every two or three days. Good content that doesn’t change isn’t good for long, and customers or clients will not return to your website or blog if you don’t regularly provide something new.
  1. Skip the Flash videos. You may think it’s cool that a sixty-second video plays when people enter your site, or pop-ups occur with every interaction. Most people come with a purpose, and if you won’t let them get to it immediately they won’t come back.
  1. Make it fast. It’s a shame when anyone can get right to your home page, but then has to wait for it to load. With today’s technology, there’s no excuse for a website that takes more than a few seconds to load.
  1. Sprinkle graphics and pictures. Graphics, pictures, and videos make a website or blog more interesting and enchanting. If you’re going to err, use them too much rather than too little, except for a Flash front-end and popups.
  1. Provide a “Frequently Asked Questions (FAQ)” page. People love FAQs because these cut to the chase. Figure out what the most common questions might be and answer them in one place to minimize hassle.
  1. Craft an “About” page. Visitors should never have to wonder what your organization does and why you do what you do. Provide all this information in an About page. Confusion and ignorance are the enemies of enchantment.
  1. Help visitors navigate. Enable people to search your website or blog to find what they are looking for. Also, a site map helps people understand the topology of your website. Forcing paging to complete a single message (to expose more ads) is not enchanting.
  1. Introduce the team. Few people these days wants to deal with a nameless, faceless, and location-less organization. A good “Who Are We?” page solves this problem, and is necessary to establish trust and expertise.
  1. Optimize visits for various devices. No matter what device people are using, your website and blog should look good. These days, 20% or more of your audience will be using smart phones or iPads, and they’re probably the most relevant customers.
  1. Provide multiple methods of access. Some folks like websites and blogs, and others prefer RSS feeds, email lists, Facebook pages, and Twitter feeds. Provide multiple methods to engage people and make these options easy to find.

Let’s face it, static websites are dead. You need a blog and social media interaction to keep your content fresh and responsive to the market. Interaction and repeated visits due to the pull of enchanting content will transform a potential customer transaction into a relationship. Everyone remembers a relationship.

Marty Zwilling

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Friday, September 18, 2020

7 Keys To Being Willing To Risk Your Neck In Business

balance-risk-courage-riskyWillingness to take a risk is the hallmark of a serious entrepreneur. That’s why one of the first questions that potential investors ask is “How much of your own money, and friends and family, have you put into the new business?” If you won’t risk yours, you won’t get investors to risk theirs.

A few years ago I was impressed with the classic book “When Turtles Fly” by Nikki Stone, an Olympic champion, which explains this well. She provides many examples of success stories from entrepreneurs to Olympians. She proclaims that if you want to be successful, you need to be soft on the inside, have a hard shell, and willing to stick your neck out (“Turtle Effect”).

She goes on to outline seven basic lessons that are key to mastering the Turtle Effect, and I believe that you need to relate to every one of these before you can dare to even call yourself an entrepreneur:

  1. Find your passion. Entrepreneurs, like Olympians, tend to put a competitive spin on anything they find a passion for, and once they are snagged, they have to win. This passion, while it is your soft inside, is probably the single most important factor in achieving business success.
  1. Make sure you are focused. This is where many entrepreneurs fail. If you try to do too many things at once, you probably won’t do any of them well. All successes are best achieved from a root focal point, one step at a time, through focus on the questions and focus on the process.
  1. Get committed. No one truly understands how much they can accomplish until they develop their hard shell of commitment to a goal you really want. The commitment has to not be one day, or someday, but today. Nothing good comes without hard work. In business, that means first put it in writing with a business plan.
  1. Overcome your adversities. Adversities are the norm, not the exception. We all face them, and a few overcome them. Today it is the economy, tomorrow it could be your health. Successful people bounce back, plan for the unexpected, stop the downward spiral, and enjoy the rewards of a comeback.
  1. Believe in yourself. Confidence is not something that we are born with. It’s something we develop. Peter T. Mcintyre said, “Confidence comes not from always being right, but from not fearing to be wrong.” Focus on your own strengths. Pick a positive future goal, and visualize success. Then go for it.
  1. Take some risks. Be willing to stick your neck out. The best entrepreneurs always believe their startups will thrive despite the odds. Don’t worry if you feel some fear. Fear is a natural emotion, and fears can actually help us to be alert. Especially, you must not fear failure. People learn more from failure than from success.
  1. Use teamwork. No one in business gets to the top alone. The real genius is in recognizing where and when you need support. Finding support is the easy part. Using someone else for support may even allow you time to turn your attention toward more important issues.

Remember that there is no business without sticking your neck out, and no approach that will eliminate risk entirely, so learn to live with it and manage it. Most experts agree that entrepreneurship is more about reducing risk and managing failures, than it is about pure willingness to take risks.

So if you want to be an entrepreneur, you need to learn the secrets of successful people who know how to stick their neck out, but maintain a hard shell. Practice the seven lessons outlined above, and enjoy rather than suffer through the entrepreneurial adventure of a lifetime.

Marty Zwilling

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Wednesday, September 16, 2020

6 Ways To Make Customers Remember You As Exceptional

ecstatic-customersFor decades, efforts to satisfy customers have been built around demographics – capitalizing on race, ethnicity, gender, income, and other attributes. Today, in this age of pervasive social media and two-way communication, the focus needs to get beyond demographics into personalities. Customer personalities define customer experience, and sets what they love, and what they hate.

Even businesses with highly specialized market segments will find it more effective and simpler to focus on who customers are as people, rather than the “what” of their demographic attributes. Customers today expect highly personalized and exceptional experiences to stay loyal and become advocates, rather than just conventionally “satisfied.” Satisfied is far from memorable.

The challenge for every entrepreneur and every business is to understand the pragmatics of identifying and reacting to what their customers love and what they hate. I found some excellent guidance on the specifics in the classic book, “What Customers Crave,” by Nicholas J. Webb. As a popular strategist in the areas of customer experience design and innovation, Webb knows.

He outlines six key steps in your journey from yesterday’s customer service to today’s required delivery of exceptional customer experiences:

  1. Define the whole customer experience versus service. Traditional customer service, focused on fixing bad transactions, is too little, too late. The total customer experience includes identifying with your company culture, the shopping experience, the customer-facing team and social media interaction, as well as resolution of any transaction glitches.
  1. Add the extra mile to make the experience exceptional. There is no one set of exceptional experiences that will work for all customers. That’s where you must know the personalities of your customers, to know what they love and what they hate. Ideally, you need to convince each customer that you have personalized the experience just for them.
  1. Display real customer value feedback versus value claims. Customers react poorly when they hear your value claims for them, and see more value to you (bottled water in your hotel room at a high price as a “convenience” to you). Customer value statements must come from customer feedback to other customers, rather than from your marketing.
  1. Build blended digital and non-digital experiences. Some businesses excel in customer-facing people, but have poor digital interfaces for feedback, shopping, or communication. Others have delivery silos, where one fragmented deficiency can override all other positives. Integrate and blend all elements of your customer experience.
  1. Train customer-facing team to collaborate with customers. Internal training and policies are not adequate to create great customer experiences. Employees must learn to develop relationships with real customers, and engage these customers to understand what each customer expects, and how to get customers to engage other customers.
  1. Assure exceptional commitment within your customer-facing team. Commitment means signing up willingly, showing up mentally, standing up for the customer, and never ever giving up. To get this, you need to find the best people for each role, give them the latitude to do their job, and reward them publicly and privately for achieving results.

Many business leaders still believe that exceptional experiences cost too much, and reduce profit margins and growth. In fact, just the opposite is true today, since more and more customers expect good feedback from others before they consider you, and decline to return if they don’t get a great first experience. The result is that an average business can spiral quickly into the ground.

If you are looking for a lasting competitive advantage, I recommend that you follow the steps outlined here to create experiences that your customers crave. It’s not only good for your business, but it will add meaning and joy to your customers, and will also enhance your personal satisfaction and well-being. That’s a win-win-win opportunity you can’t afford to miss.

Marty Zwilling

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Monday, September 14, 2020

7 Types Of People Who Get Results With Minimal Motion

results-with-minimal-motionIsn’t it amazing that some people you know always seem to be working hard, but never seem to get anything done? As an entrepreneur, you need to avoid partnering with these people, or hiring them into your startup. The challenge is to find people who get things done, as well as work hard. LinkedIn profiles and resumes still focus too much on responsibilities rather than results.

The best entrepreneurs never confuse motion with results. It’s easy to find people in every organization rushing around from one meeting to the next, often working overtime to generate more work for themselves and other people, but rarely taking the action to close an issue or contract. We all need more people around us who make every motion mean something.

So how do you recognize those few people on your team who are getting things done, or even recognize ahead of time those who have that potential? Such people are different, but are not necessarily the smartest or the most skilled. But they do seem to have some common characteristics and approaches that you can look for:

  1. Possess street smarts, as well as skills and experience. People like this quickly figure out how businesses really work, and how to resolve the challenges in their business. They have a special ability to cut through the confusion, dodge any head-on collisions, and negotiate compromises leading to required actions and resolution.
  1. Able to avoid or navigate the politics of the organization. Understanding politics is not the same as being a politician, or using political clout. People who get things done don’t worry about building their own image, but they are politically astute enough to find alternate routes around the political and power bastions.
  1. Recognize what it takes to get power leverage, but don’t blatantly use it. The key is to be open and listen to recommendations from those who have to be moved, and find a way to create win-win situations, rather than win-lose. They get things done by using their power to get recognition for key players, rather than for themselves.
  1. Maintain a laser focus on narrowing the scope, rather than expanding it. This means effective negotiating to eliminate sidetracks, combat opinions with facts, and finding the glass half-full, not half-empty. It requires being able to accurately assess the position of others, find some common ground, and snapping people back to reality.
  1. Able to negotiate agreements without committing to future paybacks. People who get things done are driven by an insatiable desire to make progress and help others. They are not looking to build a cache of favors or special attention, and are not willing to make deals that compromise the solutions and can come back to haunt them.
  1. See every problem as an opportunity to innovate, rather than a chance to fail. Obstacles are seen as innovative and creative challenges, not barriers. All the reasons something can’t be done are replaced by better ways to get it done, quicker and at less cost. Nothing is immutable, even the culture of the organization or the business.
  1. Able to balance the paradoxes of highly effective leaders. People who know how to get things done can be analytical as well as intuitive, aggressive or patient as required, and confident and humble at the same time. They instinctively know when and how to escalate issues to the right level, without stubbornly entrenching their position.

To get things done more effectively, people need to really think about each element of their work before they make a move. By culture and habit, many of us expect most of our daily work and personal activities to be pre-defined, and we just go through the paces (the way it’s always been done). We need to practice overt thinking about desired outcomes, to make them a reality.

If your desired outcome is to move up in the organization, or just to get more satisfaction from your daily efforts, now is the time focus on the attributes listed above, and emulate the people on your team who get things done. If you are the entrepreneur or executive in the organization, make sure you are the role model in execution and in hiring. That’s the only way to win in the long run.

Marty Zwilling

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Sunday, September 13, 2020

A Fearless Leader’s Mindset Will Conquer Any Obstacle

car-in-space-muskThe cost of entry to the entrepreneur lifestyle is at an all-time low, but the challenge of winning and success is at an all-time high. Anyone can build a new web site, or publish a smartphone app for a few thousand dollars, but getting market penetration requires a lot more. Customers have come to expect disruptive change, so yet another social network is not the way to get traction.

As an angel investor, I quickly look behind the idea or solution, to gauge the mindset and the leadership capabilities of the entrepreneur. That’s why the classic book, “The Leader’s Mindset: How to Win In The Age Of Disruption,” resonated strongly with me. It was written by Terence Mauri, who has worked extensively with Sir Richard Branson and the London Business School.

Mauri offers some practical, actionable advice for entrepreneurs who want to develop a leader’s mindset, on how to spread the right message to potential customers, as well as investors. He outlines three shortcuts for simplifying how we think, how we act, and ultimately how we lead, which I have paraphrased and amplified here:

  1. Expand your mindset to think better by a factor of ten. Most entrepreneurs think about how they can improve cost or usability by ten or twenty percent. When was the last time you set a challenge for your team that pushed all of you to deliver more than you thought was humanly possible? People who shape the future, like Steve Jobs, did this.
  1. Push your mindset to tackle the seemingly insurmountable. A bold mindset excels at speed, creativity, and decisive action. Entrepreneurs in this category are real risk takers, such as Elon Musk. He recommends imagining creative solutions to a problem to “cut through the noise and focus on the signal.” Take a hard look at SpaceX or HyperLoop.
  1. Develop a learn-fast mindset to seek the latest and the future. Those who proactively seek knowledge and learn fast build knowledge pools and tap into the wisdom of mentors and industry leaders to raise their game. For them, adapting and stretching their limits is the norm. They learn from their mistakes, and collaborate with well-connected people.

Leadership on ideas is a start, but entrepreneurial leadership requires the ability to deliver on the new reality as well. The best entrepreneurs relish the opportunity to overcome the personal and team obstacles that challenge every team contemplating disruptive change, including the following:

  • Fear of failure, fear of the unknown, procrastination, and doubt. All these fears can cause flight or fight, freeze behaviors, or a hasty retreat from dreams, goals, and plans for disruptive change. Fear keeps your mindset locked in a state of helplessness and will stop you from reaching your goals.
  • Constrained by talent shortages and lack of commitment. A key requirement for every disruptive entrepreneur is to fuel the organization’s growth by attracting and nurturing the best and most committed talent. The best leaders find a team and every individual unique strength to do great work and make a difference beyond chasing profit.
  • Dragged down by excuses, inertia, and negative energy. A top priority of all entrepreneur leaders is to avoid falling victim to “somebody else’s problem (SEP).” Lack of accountability is a mindset that is diametrically opposed to the required leader’s mindset. Don’t let this contamination infect you, your team, or your disruptive venture.

Overall, the leader’s mindset begins with zero compromise on purpose. It demands that you believe in what you are doing from the heart, and that your contribution is essential to the future world you envision. This must be matched with the intellectual courage to change business models multiple times to remain viable, based on real-time feedback from the market.

Becoming an entrepreneur is easy, but winning is still tough. Do you have the leader’s mindset required to compete and win?

Marty Zwilling

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