If you want to achieve safe, exponential, geometric, well-hedged, highly certain future success…
Positioning for your business that the marketplace truly reveres…
Maximum, continuous, full-range, ethical advantage…
The most enriching, rewarding (financially and emotionally) lifestyle possible…
To make your life and business richer, more protected and fulfilling,
Consider these tips and things you should avoid:
- The idea that mistakes should be avoided at all costs. Instead, try new solutions and ideas.
- Flying blind (until it is too late). Gather intelligence fast and frequently.
- Linear thinking. Learn to view your business systematically, like a tree in a forest.
- Inefficiencies that severely limit your productivity. Invest in time savers.
- Being alone and lost in a networking world. Join a mastermind, invest in an advisor or mentor. (This is my kryptonite.)
- Customer constraints in your sales process. Make it easy to do business with you.
1. The idea that mistakes should be avoided at all costs. Instead, try new solutions and ideas.
- The Problem: A fear of mistakes can paralyze progress. If you’re constantly trying to avoid errors, you’ll likely avoid taking risks, experimenting, and innovating. This can lead to stagnation and missed opportunities. Perfectionism can be a significant obstacle to growth.
- The Solution: Embrace a “fail fast, learn faster” mentality. View mistakes not as failures, but as valuable learning experiences. Encourage experimentation and calculated risk-taking. The key is to analyze mistakes, extract lessons, and adapt quickly. Focus on progress over perfection. Think of Thomas Edison and the lightbulb – numerous “failures” before success.
- Practical Application: When faced with a challenge, brainstorm multiple solutions, even if some seem unconventional. Test these solutions in a controlled environment if possible. Document the results, both successes and failures. Share these learnings with your team to foster a culture of continuous improvement.
2. Flying blind (until it is too late). Gather intelligence fast and frequently.
- The Problem: Making decisions without adequate information is like driving blindfolded. You’re likely to veer off course or crash. Waiting until a crisis hits before gathering data is too late; the damage is already done.
- The Solution: Proactive intelligence gathering is crucial. This involves market research, competitor analysis, customer feedback, and tracking key performance indicators (KPIs). Establish systems for collecting and analyzing this data regularly. The faster you can gather and interpret information, the more agile and responsive you can be.
- Practical Application: Implement a CRM (Customer Relationship Management) system to track customer interactions and gather data. Conduct regular market research surveys. Monitor your competitors’ activities. Set up dashboards to visualize your KPIs and identify trends.
3. Linear thinking. Learn to view your business systematically, like a tree in a forest.
- The Problem: Linear thinking assumes a direct cause-and-effect relationship. In reality, businesses are complex systems with interconnected parts. A change in one area can have ripple effects throughout the entire organization. Linear thinking can lead to unintended consequences and a failure to see the bigger picture.
- The Solution: Adopt a systems thinking approach. Visualize your business as a network of interconnected elements, like a tree in a forest. Understand how each part contributes to the whole. Consider the long-term impact of your decisions on all areas of the business.
- Practical Application: Create a visual map of your business, showing the relationships between different departments and processes. Use “what-if” scenarios to explore the potential impact of changes. Encourage cross-functional collaboration to break down silos and foster a holistic view.
4. Inefficiencies that severely limit your productivity. Invest in time savers.
- The Problem: Wasted time and resources drain productivity and profitability. Small inefficiencies can compound over time, creating significant bottlenecks.
- The Solution: Identify and eliminate time-wasting activities. Invest in tools and technologies that automate repetitive tasks. Delegate tasks effectively. Prioritize high-impact activities. Regularly review your processes to identify areas for improvement.
- Practical Application: Conduct a time audit to track how you and your team spend your time. Identify the biggest time-wasters. Explore software solutions that can automate tasks like email marketing, data entry, or social media posting. Invest in training to improve efficiency.
5. Being alone and lost in a networking world. Join a mastermind, invest in an advisor or mentor.
- The Problem: Trying to build a business in isolation is challenging. You miss out on valuable insights, support, and connections.
- The Solution: Build a strong network of advisors, mentors, and peers. Join a mastermind group to share ideas and learn from others’ experiences. Invest in a coach or consultant who can provide expert guidance.
- Practical Application: Attend industry events and conferences. Join relevant online communities. Reach out to successful entrepreneurs and ask for advice. Look for mastermind groups in your area or online.
6. Customer constraints in your sales process. Make it easy to do business with you.
- The Problem: A complicated or cumbersome sales process can deter potential customers. Anything that makes it difficult for them to buy from you is a constraint.
- The Solution: Simplify your sales process. Make it easy for customers to find information, understand your offerings, and make a purchase. Reduce friction at every stage of the customer journey.
- Practical Application: Review your website and sales materials to ensure they are clear and concise. Offer multiple payment options. Streamline your order process. Provide excellent customer service. Solicit feedback from customers to identify areas for improvement.
As an entrepreneur, you are a strand, a fiber in the spine of the American Dream. Your business is the backbone of America, free enterprise and global development. You, and others just like you, are the primary source of innovation, economic growth and prosperity.
Entrepreneurs are the world’s leaders, benefactors, pioneers, inventors, trendsetters, visionaries, etc. In seeking your own best interests, you are helping others, contributing to society, fighting for the greater good, making ours a safer, more comfortable, enjoyable and abundant world. And you know what this means:
Sharing these tips hoping you become the proverbial rising tide lifting all boats: Innovating, optimizing, solving problems, creating opportunities, conjuring up wealth for yourself and others through your own ingenuity.
When people ask: What you do for a living?
Do you identify with your designated IRS title? Or,
Do you have something worth sharing? Instead of calling yourself an accountant, brick mason, shop owner, etc…
At least call yourself an Entrepreneur (not to be confused with a Proprietor).
Two Points:
When answering the number one question that people love asking (what do you do for a living):
Differentiate yourself. Have something to say.
What business are you really in?
I challenge you to think beyond your product or service and consider the deeper value you provide.
Surface Level:
Most businesses define themselves by what they sell. “We sell shoes.” “We offer consulting services.” “We make software.” This is a product/service-centric view.
The Deeper Level
- Focus on the Customer’s Needs: You are not really in the shoe business, you are in the business of helping people feel confident and stylish. You are not really in the consulting business, you re in the business of helping companies solve problems and achieve their goals. You are not really in the software business, you are in the business of making people’s lives easier and more efficient.
- Emotional Benefits: What emotional needs are you fulfilling for your customers? Are you providing security, convenience, status, connection, joy, or something else? Understanding these Deeper Motivations is key.
- Transformation: What transformation do your customers experience as a result of your product or service? How are their lives better? What problems are solved?
Why This Matters: (First Impressions!)
- Innovation: When you focus on the core need, you can innovate in ways that go beyond your current product or service. You might find new and better ways to meet that need.
- Marketing: Marketing becomes more effective when you speak to the customer’s deeper desires and the transformation they seek.
- Differentiation: In a crowded marketplace, focusing on the “real” business can help you stand out. You are not just selling a product, you are offering a solution and an experience.
Examples:
- Nike: They are not just selling shoes; they are selling athletic achievement, inspiration, and a sense of belonging.
- Starbucks: They are not just selling coffee; they are selling a “third place,” a comfortable and welcoming environment for people to connect and work.
- Apple: They are not just selling electronics; they are selling a lifestyle, a seamless user experience, and a connection to a creative community.
In essence, this question encourages you to:
- Go beyond the obvious: Look past the surface level of your business.
- Understand your customer deeply: What are your clients real needs and desires?
- Focus on the value you provide: What type of transformation do you really offer?
By answering this question, I hope you can gain a deeper understanding of your business and unlock new opportunities for growth and success.
What business are you really in? To turn out a good product or service is not enough. What product or service will help your customers even more? Keep asking yourself: What are you going to be making 5-10 years from now?
Proprietor vs Entrepreneur:
The way I see it: You are either sucking up oxygen or providing real value and unique experience.
Peter Drucker, a renowned management consultant and author, made a clear distinction between an entrepreneur and a proprietor.
While both may be involved in a business, their approaches, mindsets, and goals differ significantly.
Here is a breakdown of Drucker’s distinction:
Proprietor:
- Focus: Primarily concerned with maintaining the existing business, ensuring its smooth operation, and generating steady income.
- Mindset: Often focused on efficiency, cost control, and incremental improvements. They prioritize stability and predictability.
- Goals: Typically centered around personal income, lifestyle, and maintaining the status quo. They may be content with the current size and scope of their business.
- Approach: May be more reactive, responding to market changes rather than proactively seeking them out. They might be less inclined to take significant risks.
Entrepreneur:
- Focus: Driven by innovation, growth, and creating something new. They are opportunity-oriented and seek to disrupt or transform markets.
- Mindset: Embraces change, experimentation, and risk-taking. T hey are proactive and constantly looking for new ways to create value.
- Goals: Often include building a large and impactful organization, achieving significant market share, or creating a lasting legacy. Financial rewards are often a byproduct of achieving these larger goals.
- Approach: Proactively seeks out opportunities, challenges existing assumptions, and is willing to take calculated risks to pursue their vision.
Key Differences Summarized:
| Feature | Proprietor | Entrepreneur |
|---|---|---|
| Primary Focus | Maintaining the existing business | Innovation and growth |
| Mindset | Efficiency, stability, incremental improvement | Change, experimentation, risk-taking |
| Goals | Personal income, lifestyle, status quo | Building a significant organization, market impact, legacy |
| Approach | Reactive, cost-conscious | Proactive, opportunity-oriented |
Why This Distinction Matters:
- Understanding Your Role: Recognizing whether you are primarily a proprietor or an entrepreneur can help you make better decisions about your business. It clarifies your priorities and guides your actions.
- Strategic Planning: This distinction influences how you approach strategic planning. A proprietor might focus on optimizing current operations, while an entrepreneur would prioritize exploring new markets or developing new products.
- Resource Allocation: It affects how you allocate resources. A proprietor might invest in maintaining existing equipment, while an entrepreneur might invest in research and development or marketing to drive growth.
Important Note:
It is not uncommon for individuals to have a blend of both proprietor and entrepreneurial traits. Some may start as proprietors and gradually develop more entrepreneurial characteristics as their business grows. Others may be entrepreneurial in some aspects of their business while being more proprietor-oriented in others.
Drucker’s distinction provides a valuable framework for understanding the different roles and mindsets in the business world, helping individuals clarify their own approach and make more informed decisions.
Picture it as if you were a delicatessen:
Imagine you own a deli. Most deli owners focus on the basics:
- Good food: High-quality ingredients, tasty sandwiches.
- Fair prices: Competitive pricing.
- Clean environment: A pleasant place to eat.
These are all important. They are not enough to truly maximize your deli’s potential. Think beyond the basics and focus on:
- The customer experience: How can you make the experience of visiting your deli truly exceptional? How can you tap into each of the five senses and truly make a remarkable experience?
- Maximizing customer value: How can you get each customer to want to spend more money and come back more often?
The Key Takeaway:
- Think beyond the product: It is not just about the sandwiches, it is about the entire experience.
- Focusing on the customer: Understanding their needs and desires, and finding ways to exceed their expectations.
- Maximizing value: Getting the most out of each customer relationship.
By applying these principles, you can transform your deli from a simple sandwich shop into a thriving business with loyal customers and increasing profits.
No matter what you sell, you can always find ways to create raving fans and maximize the value of each relationship.