Every year I have a theme. Sometimes I repeat them, if I don’t get it quite right. For instance my themes for both 2006 and 2007 were Acceptance, as accepting people exactly as they are has been challenging for me. Now I’m getting pretty good at it!
2008’s theme was Connection, and I’m repeating it for 2009. Connection is the feeling that we are part of something that matters, something bigger than ourselves, something that gives our life meaning, direction and purpose.
For me, there’s nothing more wonderful (and humbling) than helping others to succeed and then hearing their gratitude for me. THIS is my wall of LOVE. Thank you cards from all over the world that keep me inspired and moving. (Thanks to everyone, by the way, for a great 2008, and good luck to everybody for a ROCKIN’ 2009!!!)
Okay, back to connecting… Where and How to Connect:
Edward (”Ned”) Hallowell says we need to connect to 12 areas of life:
Family of origin
Immediate family
Friends and community
Work and activities
Appreciation of beauty
History
Nature and special places
Pets and other animals
Ideas and information
Institutions and organizations
Greater truth and spiritual faith
Ourselves.
In the Cool Resources section of my book’s web site is the “Seeking Balance via Connection” worksheet. You’ll find it under Rule 9: Resign as the General Manager of the Universe. This worksheet will guide you through a series of questions to help gauge/improve your level of connection in all 12 areas.
My fave book on the topic is CONNECT: 12 Vital Ties That Open Your Heart, Lengthen Your Life, and Deepen Your Soul.
Why did I choose the theme of Connection? Because it’s VERY easy to get (or feel) disconnected – even for me. Last year, after a grueling 5 month book tour that took me to dozens of cities in 3 countries delivering over 100 speeches, I became robotic, irritable and exhausted – not much fun, that’s for sure. This year I’ve been reconnecting, along with vowing to never work that hard again.
Let’s Connect!
If we know one another then we’re probably already connected on LinkedIn. If we don’t know one another, find me there, or we can connect on Facebook. (Feel free to join my Facebook Group, Business Renegades – http://tinyurl.com/6xos94.) And if you want to connect in person, you can sign up for our free Rules for Renegades Summit, to be held this summer in
Seems to me that the greatest challenges, pain, crises, wars, outbursts of violence, (fill in the blank) are the direct result of dis-connection. Something to think about…
How connected are you? Take five minutes to hit my links and start connecting.
All the best, Christine Comaford
You know who you are. But do your customers? Are you who you were last year? If not, have you communicated how you’ve changed?Many emerging growth companies struggle with the positioning of their firms, and the communication of what they stand for. Without properly communicating your position, the market doesn’t know whether to buy from you, whether you have the know-how they seek, and whether you’ll follow through and meet their needs.
Positioning is the process of distinguishing yourself from competitors in specific ways in order to be the preferred provider for certain market segments. Positioning is the act of designing your company’s offer and image so it occupies a distinct and valued place in the targeted customer’s mind. The main benefit of clear positioning is that it controls how the market perceives you and helps make your products and/or services more attractive. Convinced? Let’s rock. Here are my five steps to clarifying your company’s positioning.1. Assess where you are right now. Start with this exercise. Ask a customer, competitor, and journalist for the three adjectives they would they use to describe your company, products, and overall image. Then ask yourself the following questions: What’s working with my current position? What isn’t? Do I want to change my position in order to increase sales? Secure a new or different customer profile? Revamp my product line?
2. Determine how you want to be perceived. This is an intentional act. When you determine the specific position you want to occupy in your target customer’s mind, you can then craft your products, marketing messages, and image to convey and reinforce it. What are the meaningful differences between you and your competition? Take the time to do this right, as significant expenses will result when you redesign your Web site, marketing collateral, product packaging, as well as if you overhaul your staff training process.3. Select your target customers. All too often companies tell me their target customers are anyone who’s willing to buy what they sell. But this approach conveys desperation and a lack of focus Craft a strategy that takes into account the following important questions: Will you benefit from making your image more exclusive and inaccessible or more of a commodity and more accessible? How does your target market define value? How do they choose among vendors
4. Factor in current trends. You’ve probably heard the expression that if you want to be a market leader, find a parade and jump in front of it. Countless companies are jumping in front of the environmental/sustainability movement with “green” products and services and touting socially-conscious business practices. What trends are on the way in with which you could identify your company? Which should you distance yourself from, since they are on the way out?? 5. Formulate your four levels. Your business objective drives your business strategy which drives your market strategy which drives your positioning strategy. For instance, if your business objective is to have fewer customers who spend more per sale, your business strategy needs to reflect this in the products or services you will be offering. Your market strategy will be how to find those new customers and how to communicate with them. Perhaps you’ll stop attending certain trade shows and start attending others where your new target client will be.. Your positioning strategy will determine the messages you communicate to your target customer to drive sales of your more costly product line.If you aren’t happy with your business, or you want to stretch to the next level of revenue or profile, you’re ready to reposition your company. Let’s examine the specifics of the positioning process. First, know that it will take you about two months if you are starting from scratch. The marketing team needs to own this process, and you can outsource a fair chunk of the research work. Here are the steps:
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Determine emerging trends you can capitalize upon. This will yield your vision viability assessment.
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Determine core competencies. This will yield your competitive threat assessment.
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Clarify the problem/pain you are solving. This will yield your target markets and analysis of them.
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Articulate the benefits/drivers/impacts of your products and services. This will clarify how your customers buy and who they listen to/are influenced by.
From the above analysis you’ll be able to synthesize your opportunities, plus understand the value chains in your target markets. The result of combining these two outcomes will yield your differentiating attributes, which forms your positioning strategy and positioning statement. You can determine the net-net of your positioning statement by filling in the blanks in the exercise below.“For ______________________[customer segment] (which was derived from your target markets), __________________ [product/service] (your vision and offering) is _____________________ [the two to three most important benefits and reasons to buy] (your incentive value chain and core competencies). Because compared to _________________ [primary competitor/alternative], ______________________ [key reasons for differentiation] (these are your differentiating attributes).
Here’s an example:For high profile Fortune 100 CEOs, our Super Security Service provides discreet 24 hour manned protection by former Secret Service agents. Compared to simply hiring a body guard, you will feel safer with experienced professionals who’ve protected American Presidents.
Positioning is best done with a blend of internal marketing staff, outsourced researchers, and an outside marketing consultant versed in positioning practices. It’s tricky to clearly see how we are perceived and what specifically we need to change. I’ll share more in future growth strategy columns as I go through the reinvention and re-positioning process in my own business.What are your positioning dilemmas?
Download our four free business-boosting podcasts at www.mightyventures.com/gift
Recession Buster: Getting money isn’t difficult, but getting the right money at the right time on the right terms is what matters. Here’s how to do it
By Christine Comaford, Business Accelerator and CEO of Mighty Ventures
Quick: What does CEO stand for? I say “Cash Extraction Officer.” Sure, you can get by for a little while by bootstrapping and running on a shoestring budget. But to achieve rapid and sustained growth, sooner or later you will probably have to attract financiers. (And it’s easier to learn and master than the Rubik’s Cube, I promise.)
Let’s suppose you’ve got a terrific business plan and you’ve honed your 20-minute financing pitch. You’ve built a great team too. Now all you need is cash. When taking outside funding-or when determining if you even want to-you will first have to develop a capital-acquisition strategy. To do so, ask yourself the following questions.
1. How Much Do You Need?
Rule No. 1: Take more than you think you need.
Rule No. 2: Only if it’s cheap.
Cash is cheap, equity is not. Once you sell a percentage of your company, recovering it is very, very difficult and very, very expensive. This is why multiple smaller financing rounds are a great idea, especially in the startup phase, when your company’s value is low.
Figure out how much money you have to raise to achieve some specific time-measured milestones, such as: launching your product, expanding your sales force, or implementing new manufacturing methods. Add that number to your overall operational costs. Now add a cushion of six to nine months of operational costs to that. This is roughly how much you need to raise. The point is to have enough money to both keep the company running and achieve specific milestones so you can demonstrate increased value before you’re out fundraising again.
2. When Do You Need It?
Rule No. 1: Raise money before you need it.
Rule No. 2: You always need it sooner than you think.
The financing process always takes longer than anticipated. For bank loans, expect two to three months. For Small Business Administration (SBA) loans, expect four to six months. For angel investment or venture capital, expect three to 12 months. For grants, expect a year. I’ve seen financings occur in less time, but you must be prepared for the long haul. Start raising money six to nine months before you’re either due to run out of cash or expect to need it for expansion.
Have a strong banking relationship already established in the event that you need a bridge loan to tide you over during an extended financing process. Respectable jumps in your company’s value are expected between financing rounds. In the early stages, an increase in value of at least two to three times is expected.
You will have to be able to demonstrate evidence that you’ve hit some milestones, such as more customers, new products/services (or new versions of them), or increased market share. If you schedule your financing rounds for when you can show demonstrable success, you will garner higher valuations and keep your investors and staff happy.
3. From Whom Do You Want It?
Rule No. 1: Only take money from someone you like and respect.
Rule No. 2: I’m serious.
You will be with your investor for two to seven years. You will go through heaven and hell together. Make sure he will be good company in both situations. In addition, you need a partner who understands the industry sector your company serves.
Make a list of 10 financiers who understand your market or product and have worked with companies at the same stage as yours. If they have a stable of clients that could use your product or service, that’s a bonus. To find financiers, search the Internet for “venture capital,” “micro loans,” “business loans” or “angel investors (in your geographical area)”-I’m assuming you already know your local banks. Approach the top five on your list.
If you’ve done your homework and you get lucky, you will stop there. If not, approach the other five. Never tell prospective financiers about one another. If one decides they don’t want to invest, they may call the others and tank your deal.
If your company isn’t winning interest, make sure you locate the problem and are prepared to state your solution to it in a concise, compelling, and complete way. If it’s gaining interest, then pursue more investors.
Do you want “active” or “passive” money? Active money is from financiers who will work with you closely. They’ll add value by introducing you to sales prospects, influential people, and more. Passive money is just money-no connections, no additional value. If your company is seed or early stage, or if the financier has key contacts you should tap, take active money. If you already have enough active connections and just need cash, take passive. Investor relations can be time-consuming. Plan for this.
4. What Compromises Will You Accept?
Rule No. 1: Don’t be greedy.
Rule No. 2: But don’t be taken advantage of, either.
If you’re seeking equity financing, you will be selling pieces of your company repeatedly. As the pie gets bigger, the increased number of pieces get smaller. This is called dilution. If you start out by owning 50% of a company, pre-financing, don’t be surprised if you own 10% or less at the exit. In the beginning you will sell off big pieces, often 20% to 40% per financing. I personally don’t like selling more than 33%. I figure if you’re going to sell a big piece, sell it for a high price.
Loss of equity is one compromise, loss of control is another. Investors should comprise 20% to 40% of the board. More is trouble. I’ve seen way too many cases where the investors ran the company because they controlled the board. This rarely works out. I’ve also seen too many cases where the entrepreneur wanted a far higher valuation than he deserved, and either lost valuable time to market or lost the financing altogether by greedily stretching the deal.
And last, it’s worth taking a lower valuation to get a stronger group of investors. Strong, active investors can make all the difference-not only in helping build the company but in participating in future financing rounds and helping raise cash when the chips are down.
The higher your company’s valuation, the more favorable the financing terms. Always remember that a company’s valuation is emotional: It’s based on perception. Present your company with great passion, showcase your executive team, explain the realistic plan to make your vision a reality, and the results just might rock your world (see BusinessWeek.com, 3/2/06, “You: The Brand”).
I was recently on the gorgeous
- The Hawaiians say “Never turn your back on the ocean.” This means don’t turn your back to energy, don’t be arrogant and think you are more powerful than the sea. You aren’t. Likewise, don’t turn your back on your business, your loved ones, the forces that support, sustain and influence your life. Stay aware and engaged.
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Always use a leash. The leash tethers you to your surfboard. When you wipe out, which will happen, you don’t want to swim all over the place and wear yourself out searching for your board. Make sure you always have your foundation nearby. Whether your foundation is your team, your family, your friends, your advisory board—keep it nearby.
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When you get thrown, protect your head and search for the surface. In a wipe out surfers put one forearm on their head to prevent a concussion should their board hit them. They move the other arm back and forth in front of their face to find the surface. The lesson is protect your head in a tricky situation and find your way to the surface as quickly as possible.
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Constantly adjust your position. When lying on your board and either paddling out to sea or in to shore to catch a wave, your position will determine your ride. When paddling out to sea, if you’re too far from the nose (tip of surfboard) a breaking wave will push the board up and you’ll lose your balance. When paddling to catch a wave, lying too close to the nose will push the board downward and you’ll lose your balance. When lying in a balanced position, with your feet near the tail of the board you’ll be able to stabilize yourself by grabbing the rails (sides of the board) when heading into and wave, and you’ll be positioned well to stand up and ride the wave if you want to catch it. Life and business are all about adjusting your position, or course-correcting. If you’re not getting the ride you want, or if the “waves” are resisting you, adjust your position.
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When a wave comes, ride it. Once you catch a wave and the ocean’s power is propelling you forward, it’s key to keep your balance and gradually stand up to ride it. This is a humbling experience—you’re being carried at high speeds on a force you cannot control, so the best option is to go with it. You adapt, surrender, follow where the wave wants to take you. You enjoy the ride. This is where fear comes up for most of us. We feel an exciting current, whether it’s a business opportunity, a new relationship, or a chance to move forward in our lives and we make a choice: ride it, try to control it, or let it pass by. Yes, sometimes it’s scary. When this happens I acknowledge the fear and generally chose to ride the wave, the opportunity. Because the vast majority of the time the ride is exhilarating and transformative—and worth it!
Christine is CEO of Mighty Ventures (www.MightyVentures.com), a business accelerator which helps businesses to massively increase sales, product offerings, and company value. She has built and sold 5 of her own businesses with an average 700% return on investment, served as a board director or in-the-trenches advisor to 36 startups, and has invested in over 200 startups as a venture capitalist or angel investor. Christine has consulted to the White House (Clinton and Bush), 700 of the Fortune 1000, and hundreds of small businesses. She has repeatedly identified and championed key trends and technologies years before market acceptance. Christine’s best selling book, Rules for Renegades, is available now on www.RulesForRenegades.com or wherever books are sold.
Join Christine on her monthly Q &A calls! Register and ask your question at www.AskChristineNow.com
Download our four free business-boosting podcasts at www.mightyventures.com/gift
Copyright 2007 Mighty Ventures, LLC. All Rights Reserved. Please print and reproduce at will. Content may not be altered in any way. Content may be quoted or referred to with reference to Mighty Ventures, LLC, Christine Comaford-Lynch, Rules for Renegades and all websites listed in above text.
A company is worth what a buyer perceives. Time-tested ways to increase the value of yours include adding new sales channels and locking in strategic alliances
Maybe you aren’t planning on raising financing, securing a credit line, being acquired, or one day going public. You still need to continually boost the value of your company. A higher-value company has more options. It gets the right partners, preferential terms, and often a more glorious future. There’s an art to value-boosting, and I am going to tell you how to do it. First, know the facts:
I’ve used some or all of the following seven value-boosters to quintuple the value of my clients’ companies and my own. These value-boosters have also worked for companies such as Google, Microsoft, YouTube, and many, many more.
2. A hot board of directors and/or advisory board (see BusinessWeek.com, 2/1/07, “Don’t Go It Alone: Create an Advisory Board”). 3. Specific strategic alliances. An LOI (Letter of Intent) with a partner ain’t gonna cut it. You need a binding contract spelling out exactly what the terms of your deal are. Clarify how many widgets they will buy/distribute/co-market, the time period, as well as what happens if they default on the agreement.
5. Product line extension. Let’s assume you sell a supercool widget. What’s next? Son of Widget? Platinum Widget? Widget Extraordinaire? Map out your future product lines so financiers, partners, and staff can see where you are headed and how you plan to get there.
Value is about potential. Potential today, potential tomorrow. The main reason you keep building value in your company, in tangible and intangible ways (and as I’ve shown you, the “intangible” ways often do have dollar values attached to them!), is because a high-value company gets the financing it wants on the terms it wants. It also gets multiple acquisition offers at fabulous terms. The high-value company gets the alliances, the staff, and the opportunities it wants, too.
Christine is CEO of Mighty Ventures (www.MightyVentures.com), a business accelerator which helps businesses to massively increase sales, product offerings, and company value. She has built and sold 5 of her own businesses with an average 700% return on investment, served as a board director or in-the-trenches advisor to 36 startups, and has invested in over 200 startups as a venture capitalist or angel investor. Christine has consulted to the White House (Clinton and Bush), 700 of the Fortune 1000, and hundreds of small businesses. She has repeatedly identified and championed key trends and technologies years before market acceptance. Christine’s best selling book, Rules for Renegades, is available now on www.RulesForRenegades.com or wherever books are sold.
Join Christine on her monthly Q &A calls! Register and ask your question at www.AskChristineNow.com
Copyright 2007 Mighty Ventures, LLC. All Rights Reserved. Please print and reproduce at will. Content may not be altered in any way. Content may be quoted or referred to with reference to Mighty Ventures, LLC,
When launching a new product or service, go for the value, not the flash. Value builds revenue, company growth, future funding. Flash is transitory.
Your public launch of a product or service will raise the profile of your company. It’s a marketing event - a kickoff party of sorts, so be prepared. What you need for a launch is a compelling product or service plus a handful of early customers providing gushing testimonials. I am frequently invited to “big hat, no cattle” flashy launch parties. The goal of these companies is to build buzz and visibility in hopes of getting press… but for what? For throwing an expensive party? It’s much better to have a launch when you already have some customers and some revenue and problems are being solved-now there’s a real story! Don’t spend money on a flashy launch party when you have no accomplishments to back it up. Spend your marketing budget on making the press and blogging community aware of your really cool product, PLUS the companies that are using it, PLUS the problems and pain your product is removing, and the specific benefits that have been the result.
Prepare for your launch by asking yourself the following questions:
Which companies are using our product/service?
What specific problems are being solved?
What associated pain is our product/service removing?
What have the tangible and quantifiable benefits been to our clients?
Your only goal is to craft a clear message of customer problems and pain, and the benefits your product/service have provided and will continue to provide. This is what the press should be made aware of when you launch a product or service. This is newsworthy.
From the above questions you’ll be able to formulate a few customer case studies which will illustrate the many benefits of using your product. Case studies are key to a rockin’ launch. Tell the story from the customer’s perspective. And if the press insists on calling a customer to ask about your product, rest assured they’ll spend less time doing so-the case study told the whole story already.
There’s no magic number of customers or amount of sales you need in order to execute a launch. If you’re a privately-held company you don’t have to disclose either to the press. You’ll launch when you are ready to gain traction and when you have the infrastructure set up to handle an increased number of inquiries and sales. Make sure you’re ready though-many startups sell their product for 6 months or more before they officially launch.
Pick a point person for the launch. This person will be internal or external, and have a blend of marketing and PR skills. They’ll spend a great deal of time on preparing marketing materials (web site updates, customer case studies, customer testimonials, press releases, product fact sheets, etc). They’ll also distribute press releases, pitch journalists and influential bloggers, answer frequently asked questions, book customer interviews, and a lot more. The pre- and post- launch activities take months of dedicated time. Doing it right is well worth it.
A Sample Launch Process
Back in the 1990’s I started a company while standing in line at Starbucks. In time we funded it with venture capital, built it up, and a few years later I sold my shares to Rupert Murdoch’s News Corporation. It might be helpful at this point to tell you more about the key steps from founding to sale to better understand how your launch process and timeline should look. The route I took ended up having 12 key steps. While your own launch process will be tailored to your specific industry and product or service, seeing how one of my companies progressed provides an interesting case study on startups.
- We wrote the business plan in order to clarify our vision. We wrote our funding pitch in a PowerPoint presentation and our first year’s budget in an Excel spreadsheet. We created a formula-based dynamic model so we could plug in numbers for different “what if” scenarios (what if our expenses were higher, what if our revenue were lower, etc.).
- We mocked up our web pages so others could visualize how our site would work and how consumers, retailers, manufacturers would interact with it. Always do this. Many people you’ll pitch to will be visual.
- We designed the architecture so others could visualize how we’d do certain product functions such as data analysis and data mining. Providing a schematic of the backend architecture helped boost our credibility with the potential client’s information technology teams that would have to interface with our backend.
- We got our first round of funding! We sold 33% percent of our company for 18 months’ worth of operational cash.
- We hired key staff: VP Engineering, VP Sales, and VP Marketing. This company was very engineering and sales intensive. We needed to have a solid architecture and we also needed to get started on the incredibly long sales cycle for retailers and manufacturers. Marketing worked on collateral — sales support material like brochures and data sheets — while the sales guys hung out with potential customers and asked for their suggestions on our product design. This helped get the potential customers more emotionally engaged in our success and also increased their likelihood of buying a system they had helped design. I love creating a “Customer Council.” It’s like an advisory board without compensation, as this would be a conflict of interest for the prospective customer.
- We secured our first customers (both retailers and manufacturers) and web site strategic alliances. We raised our profile with trade associations, and distributed a white paper we had written which illustrated the future of online, targeted promotions. We positioned ourselves as the experts. This is like declaring victory as you’re stepping onto the battlefield. Do it!
- We launched a 90-day beta test.
- We got our first consumers using the beta system. We did zillions of speeches to manufacturers and retailers. Then we cranked up the PR engine and started getting press.
- As a result of the above, we got more funding.
- We demonstrated our product’s data analysis capabilities to customers. They were wowed and we were able to up-sell them to a more premium (read: expensive) service.
- We expanded our customer base. We released a complete Version 1 of the system. We did zillions more speeches. Whew! That was a lot of talking for me and my executive staff! And we got more press.
- And yep, you guessed it. We got more funding.
So you see, the launch process is cyclical. Each time there is a progression and growth associated with the interaction with the customers and the press more funding follows. You must repeatedly demonstrate growth with each step of the launch process.
Also, you don’t need to pay a market research company big bucks to write a report on you. Gartner Group, Jupiter, Aberdeen, there are many reputable, influential-and expensive–groups that can raise the profile of your company. I prefer gaining credibility from customer case studies, from showing specifically how you are solving problems as opposed to paying someone to write about you. You’ll be written up once you’ve gained traction. So hunker down and get to work! That said, you may need the credibility boost of a research report from a third party if you are selling a 6 digit product to enormous enterprises and your executive team doesn’t have fabulous accomplishments in their past.
So that’s the high level net-net on how to launch your company’s product or service to gain maximum effectiveness with the press and the market. Are you preparing to launch? When and of what? If you have questions regarding the process, I’d be happy to answer them.
Christine is CEO of Mighty Ventures (http://www.mightyventures.com/), a business accelerator which helps businesses to massively increase sales, product offerings, and company value. She has built and sold 5 of her own businesses with an average 700% return on investment, served as a board director or in-the-trenches advisor to 36 startups, and has invested in over 200 startups as a venture capitalist or angel investor. Christine has consulted to the White House (Clinton and Bush), 700 of the Fortune 1000, and hundreds of small businesses. She has repeatedly identified and championed key trends and technologies years before market acceptance. Christine’s best selling book, Rules for Renegades, is available now on http://www.rulesforrenegades.com/ or wherever books are sold.
Join Christine on her monthly Q &A calls! Register and ask your question at http://www.askchristinenow.com/
Download our four free business-boosting podcasts at www.mightyventures.com/gift
Copyright 2007 Mighty Ventures, LLC. All Rights Reserved. Please print and reproduce at will. Content may not be altered in any way. Content may be quoted or referred to with reference to Mighty Ventures, LLC, Christine Comaford, Rules for Renegades and all websites listed in above text.
By Christine Comaford
Here’s the reality: companies make mistakes all the time. In an economic downturn, however, avoiding the big slip ups becomes all the more crucial. Small business owners tend to react impulsively at times, and while this may earn them some points for courage, in a rough economy they should definitely take the long view and pace themselves.
To get funded, stay funded, and even out stretch your day-to-day cash flow, you’ll need to avoid some key mistakes. If you’ve made them already, it’s time for a strong course-correction.
Here are my top five blunders to absolutely avoid during a downturn.
#1 Hasty Hiring. Result? Bad hires who are costly and time consuming. It’s better to try out new staff members as independent contractors first. Then, after you’re confident that they work well with your team and within your organization, bring them on as permanent hires.
When you’re overwhelmed and overworked, it’s easy to make hiring mistakes. That’s why relying on contractors is a great policy. Check out sites like http://www.asksunday.com/ for administrative help. They have great buzz and a wide variety of hourly rates to work with (in some cases $12 per hour). For marketing, bookkeeping and other help, try out http://www.workaholicsforhire.com/ or similar marketplaces.
And don’t make the mistake of staffing up fully, only to discover that your business operates in waves. Have a lean team, and hire extra hands for the heavier times. Remember, try out your team members before making them permanent!
#2 Expenses Before Revenue. Result? Financial pressure and personally funding your business. It’s definitely better to live below your means and grow more slowly.
A compelling example of this common mistake is a clothing retailer who recently contacted me, desperate for a quick $200,000 loan. She had never built up the credit rating for her 15-year-old business. She had simply been too busy spotting the latest fashion trends, and in turn, buying inventory on her personal credit cards. Sure, she had racked up zillions of frequent flier miles, but her company wasn’t the least bit creditworthy. Ultimately, when she hit tough economic times, she had to scramble for a personal loan. To top it off, her personal credit score had been damaged significantly over just a few missed payments on her six-digit balance. Ouch.
#3 Skipping the Six-Month Plan. Result? “Strategy of the Second” - and very little accomplished. It’s better to map out the next six months, and if a new project comes up, swap it out with one of equal complexity that is already on your plan. Entrepreneurs can be excessive idea generators. I know I am. With a six-month plan, you will have mapped out the projects for the immediate, foreseeable future and can skillfully avoid manic distractions with poor results.
Consider the perils of one company, with the painful “strategy of the second” plan. Each time its mercurial CEO returned from a conference, he’d have a new idea. Were they good ones? Often. But his already stretched staff had no spare energy. Since they had not learned to communicate clearly with one another, they would take on the project, but all sorts of key tasks would, of course, get dropped or delayed, and no one was happy.
Ultimately, you need a gatekeeper for the six-month plan if you want your company to run efficiently. This is someone who will ensure the new projects are either scheduled for later or replace existing project(s) of equal size. Someone who will constantly see the big picture, tackle the small details, and facilitate real results every step of the way.
By the way, once the CEO in question put a six-month plan in place, his staff was happier, fewer tasks were dropped, and the revenue came rolling in.
#4 Pointless Partnerships. Result? Time-consuming meetings and planning sessions that do not result in revenue. It is much better to only take on partners for a specific purpose - one that can be monetized within the next 90 days.
Partnerships are not about press releases, they are about massive marketing benefits that will lead to revenue or direct revenue generation - right now. I can’t emphasize the now part enough. You can waste a tremendous amount of time on irrelevant partnerships that may have a long-term, glorious future, but for right now, they simply are not worth your time and energy. In difficult times, stay focused. Partner for benefits that you can expect within 90 days or less. Push the longer term deals off your plate; you’ll get to them later, in more stable times.
#5 Chasing All Sales Leads. Result? Wasting time on prospects will not become clients.
A CEO complained recently that she had chased a key account for four months. Four months! She finally lost hope that they would ever become a client. When asked if she had a disqualification process, she clearly was confused. Here’s the net-net: you only want to spend time with real prospects. Create a disqualification process so you can quickly remove contacts from your sales pipeline that will most likely never buy your product or service. In tough economic times especially, you must focus your energies on productive revenue streams.
Finally, hang in there and stay hopeful! We have all made mistakes in business. You will definitely get better at rebounding and reducing the amount of time before a lucrative exit. The point is to course-correct constantly. Spot a mistake and take action to correct it. I’d like to hear about mistakes you’re grappling with or biggies I didn’t mention. Feel free to send your toughest questions to http://www.askchristinenow.com/ to be highlighted in our next Q&A teleconference.
About Christine: Christine is CEO of Mighty Ventures (http://www.mightyventures.com/), a business accelerator which helps businesses to massively increase sales, product offerings, and company value. She has built and sold 5 of her own businesses with an average 700% return on investment, served as a board director or in-the-trenches advisor to 36 startups, and has invested in over 200 startups as a venture capitalist or angel investor. Christine has consulted to the White House (Clinton and Bush), 700 of the Fortune 1000, and hundreds of small businesses. She has repeatedly identified and championed key trends and technologies years before market acceptance. Christine’s mega-best selling book, Rules for Renegades, is available now on http://www.rulesforrenegades.com/ or wherever books are sold. Join Christine on her monthly Q&A calls! Register and ask your question at http://www.askchristinenow.com/
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Hey Everyone,
I’ve been thinking about power a lot lately. And here’s what I’ve come up with. Many people currently:
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Feel a sense of powerlessness in their business or life
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Are in overwhelm–and if they aren’t, they remember a recent time when they were!
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Keep looking for the “next thing” to return them to power.
But here’s the rub: there isn’t anything you can get or buy or acquire to bring you power. Sure, having a peaceful and supportive relationship with yourself and others help. Sure, having a wise and commited mentor will help your business. Sure, having a friend or coach to hold you accountable helps. But really, where does power come from?
You.
Isn’t that awesome? Don’t you love it? Let’s take a second to drink that in, and listen to my current favorite song about reclaiming your power… Click on the link below to listen to Temba Spirits up-beat rap entitled “Reclaim Your Power.”
http://www.thepassiontest.com/utility/showArticle/?objectID=2728
Alright. Pumped up? Feeling good? Did you remember that what you need is inside? Here are 3 ways to reclaim your power RIGHT NOW.
1) Get still. Whether you need to go for a walk, repeat the word “peace” to help stop your thoughts, read a page of an uplifting book or poem, listen to a few minutes of your favorite music.
2) Connect with nature. Nature doesn’t get stressed out. Nature knows everything needs to run its course.
3) Stop needing. This is my favorite. Listen to how often you say you “need” something. Yikes. A lot, eh? What’s the energy of needing? It is desperate, overwhelmed, attempted control, lack of trust. Ok, now let’s consider replacing needing with wanting. Wanting is choice, intention, applied energy to a desired outcome. Wanting has power. Needing doesn’t.
How are you feeling about your power level? What are you doing to increase it?
Happy Independence Day, everyone!
July 4th is my second favorite holiday (Thanksgiving is first). Each year on this day I reflect on freedom and what it means to me.
Freedom = Choice
Choice to build a business that SERVES YOU, not that YOU SERVE. Think about it. There’s a huge difference between the two. When your business serves you, you choose the life you want and build your business around it. When your business serves you, you experience a level of happiness, inner peace, fulfillment and FUN that few people ever equate with work.
I also reflect on how I want to live, every single day, on this gorgeous planet populated by fascinating human beings. George Bernard Shaw perfectly sums up my philosophy:
“This is the true joy in life, the being used for a purpose recognized by yourself as a mighty one; the being a force of nature instead of a feverish, selfish little clod of ailments and grievances, complaining that the world will not devote itself to making you happy.
That says it all.
- The Hawaiians say “Never turn your back on the ocean.” This means don’t turn your back to energy, don’t be arrogant and think you are more powerful than the sea. You aren’t. Likewise, don’t turn your back on your business, your loved ones, the forces that support, sustain and influence your life. Stay aware and engaged.
- Always use a leash. The leash tethers you to your surfboard. When you wipe out, which will happen, you don’t want to swim all over the place and wear yourself out searching for your board. Make sure you always have your foundation nearby. Whether your foundation is your team, your family, your friends, your advisory board-keep it nearby.
- When you get thrown, protect your head and search for the surface. In a wipe out surfers put one forearm on their head to prevent a concussion should their board hit them. They move the other arm back and forth in front of their face to find the surface. The lesson is protect your head in a tricky situation and find your way to the surface as quickly as possible.
- Constantly adjust your position. When lying on your board and either paddling out to sea or in to shore to catch a wave, your position will determine your ride. When paddling out to sea, if you’re too far from the nose (tip of surfboard) a breaking wave will push the board up and you’ll lose your balance. When paddling to catch a wave, lying too close to the nose will push the board downward and you’ll lose your balance. When lying in a balanced position, with your feet near the tail of the board you’ll be able to stabilize yourself by grabbing the rails (sides of the board) when heading into and wave, and you’ll be positioned well to stand up and ride the wave if you want to catch it. Life and business are all about adjusting your position, or course-correcting. If you’re not getting the ride you want, or if the “waves” are resisting you, adjust your position.
- When a wave comes, ride it. Once you catch a wave and the ocean’s power is propelling you forward, it’s key to keep your balance and gradually stand up to ride it. This is a humbling experience-you’re being carried at high speeds on a force you cannot control, so the best option is to go with it. You adapt, surrender, follow where the wave wants to take you. You enjoy the ride. This is where fear comes up for most of us. We feel an exciting current, whether it’s a business opportunity, a new relationship, or a chance to move forward in our lives and we make a choice: ride it, try to control it, or let it pass by. Yes, sometimes it’s scary. When this happens I acknowledge the fear and generally chose to ride the wave, the opportunity. Because the vast majority of the time the ride is exhilarating and transformative-and worth it!
