gmc succinct blog reprints v2.6 - amazon...

WWW.SUCCINCT.CO.NZ-BLOGREPRINTS

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GrowthManagementConsultingmark@growthmanagement.co.nzwww.growthmanagement.co.nz

blog:www.succinct.co.nz

SUCCINCT.CO.NZblogreprints©CopyrightGrowthManagementConsultingLtd2012

SUCCINCT.CO.NZMarkRobotham’sBusinessOwnersGuidetoClarityandFocusBLOGREPRINTSV2.6Feb2016

[email protected]


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1. MARKROBOTHAM 4

2. 10STEPSTOBUSINESSSUCCESS 5

3. CREATINGPOWERFULMESSAGESTHATSELL 6

4. ISYOURBUSINESSSTANDINGOUTFROMTHECROWD? 7

5. 90SECNETWORKINGELEVATORPITCHTEMPLATE 8

6. 9TRAITSTOEXCITEANINVESTORANDPROSPER 9

7. 10TIPSFORCREATINGINTERESTINTECHCOMPANIES 10

8. MILESTONEMAP-PLAN 11

9. TESTYOURBHAG 13

10. TECHNICIAN,MANAGERORENTREPRENEUR–E-MYTHREVISITED 14

11. GMCBUSINESSMODELCANVAS 15

12. THEENTREPRENEURSGUIDETONO–TESTYOURLASTDECISION 17

13. PIGSANDCHICKENS–BUSINESSMODEL 18

14. WINNINGCULTURE’S:DON’TBLAMETHESTAFF–WHO’SRUNNINGTHESHOW 19

15. VALUEPROPOSITIONS–REVISITED 20

16. DON’TSPENDALLYOURMONEYONDEVELOPMENT 21

17. PRODUCTMARKETING–THEMISSINGDISCIPLINE 22

18. PERSONAS&ZERO-BASEDSTRATEGICTHINKING 23

19. STRATEGYORAGOAL 24

20. FINDINGNEWSTRATEGICOPPORTUNITIES 25

21. STRATEGIESFORGROWTH 26

22. FOOLPROOF:DE-RISKINGNEWVENTURES 27

23. DON”TCONFUSENETWORKINGWITHCARDSWAPPING 28

24. ADVISORYGROUPS/BOARDS 29

25. CONTACTUS 30

TableofContents:www.succinct.co.nzTopTips


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1. MARKROBOTHAM

MarkRobothamhasbuiltareputationasaninspirationalpublicspeaker–facilitator,sharinghispragmaticapproachtoleadingbusinessestosuccess.

Markhasagreattalentoftakingcomplexbusinessesandhelpingthemfindclarityintheirbusinessstrategy,messagesandexecution-enablingpowerfulresults.Givingbusinessthebenefitofclaritytobetterengagestaff,customersandinvestors.Originallytrainedasanelectronicsdesignengineer,hespentthelaterpartofhiscorporatecareerininternationalmarketing,workingbothinNZandinSiliconValley.Afterasuccessfulcareerinhighgrowthtechnologycompanies,hespent10yearsinspiringandguidingNZ’semergingbusinessesaswellashelpingthemraisecapital.Markrecentlycompleteda2-yearassignmentasaGroupGMwithBrandDevelopersLtd(BDL),aNZ$300M+consumerproductscompany.HeheldtheroleofGroupGeneralManagerforProductDevelopment(Mechatronics&Cosmetics),

ManufacturingandProductQuality;focusingonChinamanufacturingandqualitycontrolofconsumergoods.In2016Markhasreturnedtotheconsultingworld,focusingonhelpingestablishedSME’saccelerategrowth.

twitter:@mrobothamemail:[email protected]

web: www.growthmanagement.co.nzblog: www.succinct.co.nz

Sharingknowledgeandrespectingauthorsandcollaborators:

ThispublicationisacollationofreprintsofMarkRobotham’spopularblogpostsfromhisblogwww.succinct.co.nz.WehopeyouenjoythistasteofMark’sBlog.Ifyoulikehisstyleofbusinesstipsthereareplentymorestoredontheblogitself.Thismaterialhasbeencollatedforsharingamongstbusinessownerswhohaveadesiretomakesmartbusinessdecisionsandgrowtheirbusiness.Markencouragesyoutoshareandrepublishsmallsectionsofthisdocument.HoweverweaskthatyouacknowledgeMarkRobotham,GrowthManagementConsultingLTDandSUCCINCT.CO.NZasthesourceANDthatyounotifyhimviaemailatmark@growthmanagement.co.nzPleaselogontoWWW.SUCCINCT.CO.NZandsubscribetotheemaildatafeedtohisblog,soyoucangetMark’slatestthoughts.


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2. 10STEPSTOBUSINESSSUCCESS

1. Haveclarityinhowyouaddvaluetoyourclients–focusonthat.Leverageyourpointofdifference

2. Identifyyourtargetbeachheadmarket–thepeoplewhoyoucanmakethemostmoneyfrom,intheeasiestpossibleway(alistoflistthan100clients)

3. Ensureyourbusinessmodelisrobustandsustainable–i.eyoumakemoney.Ownyourownfinances,delegatetoyouraccountantdonotabdicate-itsyourmoney!

4. CreateaShortformpagebusinessplan.Includingaonepagemilestonemap(seeMILESTONEMAP-PLANpage11)

5. Employeethesmartestpeopleyoucanafford,ideallysmarterthanyou,alwayshirebasedonvaluesandpersonalityfirst–skillssecond.Ifindoubtdonothire.

6. Defineyourcultureandbrandidentityandsticktoit–NOthisisnotalogo!

7. Adaptfastandactonfailure–includingfiringnonperformingstaff,killingprojectsthatwillnotdeliverareturntothebusiness.

8. Setupanindependentadvisorygroupthatwillchallengethethinkingfromdayone

9. Engageyourclientsandhavefun

10. Haveagoalandexitplanfromdayone.


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INVERTED(PYRAMID(OF(INFORMATION(

Information Importance

Time

Variableedit point

Most important fact

Detail that can be removed if time does not allow

10 -30 sound bites

3. CREATINGPOWERFULMESSAGESTHATSELL

http://succinctstories.wordpress.com/2012/01/30/milestone-map-plan/

Succinctcommunicationwinseverytimeinthisinstanttimepoorworld–whethertheendgameissellingabusiness,anidea,aproductorserviceorjustcommunicatingaplanofaction.

“It’snotwhatyousay,it’swhattheyrememberandcanbebotheredtopasson”Thebestmaterialdeliveredinthewrongmannerwillgonowhere.Mostpeoplemaketheirpitchestoovague,toolongandtooboring.Hencetheynevergetpassedontotargetaudiencesandnevergoviral.

Belowaremytop5communicationtipsforsalesandinvestmentpitches–whetherit’sanelevatorpitch,fullblownsalesproposalorcoffeewithapotentialinvestor.

1:Earnyouraudience’sattention(beengaging)

Openwithsomethingthatgetstheirattention.Rememberthatonly7%ofamessage’simpactcomesfromthewords,therestcomesfrombodylanguage55%,andtoneofvoiceat38%.Passionandconfidencecannotbefaked,equallysotheformatofthewrittenwordmatters.

Don’tforgettoexcitethesensors–Props(physicalthings)aregreatmemoryhooks.Smellandtasteareoftenforgotten.

2:BeSuccinct

Usesoundbites(10-30secondstatements)andheadlineconcepts.

Thinklikeajournalist–whatwouldbeyourgrabbingheadlineandhowcanyoucompactthemainmessageintothefirstminuteofyourpresentation?

Usetheinvertedpyramidofinformation–abasicjournalistictool.Thepowerofamessageisinverselyproportionaltoitslength(lessismore).

Increatingeffectivemessagesyouneedtodecidewhatnottosay.

Changingtheorderofyoursoundbitesistheeasiestwaytoimproveitsimpactandeffectiveness.

3:Contrastisthebestconversiontool(lifebeforeandafter)

Illustrateyourvaluepropositionbycontrastingwhatthecustomer’slifewillbelikebeforeandaftertheyhavepurchased,orwithandwithoutyourproduct/service.

Makeitsimpleblackandwhite,notamillionshadesofgrey.

4:Alwaysquantifygain(bespecific)

Bespecificinwhatyousay,ifit’sfaster–howmuchfaster?Usethiswithcontrast.Likewisedonotusevaguedescriptionse.g.“acustomer…”,namethem,bespecificithasgreaterimpact.

5:Customerstorieswinmindsandgetresults

Shortrelevantandconcise,quantifiedcustomerstoriesusingcontrastprovidethemostefficientwaytogiveothersamessagetheywillempathisewith,processandpasson.

Researchbythe“salesbrainteam”showedthefollowingresultstotheeffectiveness(probabilityofclosingasale)of4differentproofsofvalue:

CustomerCase(80%) Demonstration(60–100%) Data(20–60%) Vision(10-40%)

ReadtheBook“NeuroMarketing”–“Sellingtotheoldbrain”….BestbookIhaveeverreadonSales.http://www.salesbrain.com/

“WIFM–What’sinitforme”

Thegoldenruleforallcommunicationis:“alwaysuseyouraudience’slanguageofsuccess”,notyours.Workoutwhatisthehighestgainforyourtargetaudience(financial,strategicorpersonalgain)

Yourfirstgoalisalwaystoexciteinterestintheoutcome(theWHAT).WhentheaudiencegettherelevanceoftheoutcometheywillasktheHOWquestions.Atthispointyouhavethembaited.TheHow(thetechnologyorprocess)isyourdomain,notyourcustomers,theyjustwantaresult.

Toooftenbusinesspeopleattempttoselltheirbusinessbytalkingabouttheirproductorcraftratherthanthe“truevalue/outcome”theclientisseeking.Thisisyourlanguagenottheirs.


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“Ididn’thavetimetowriteashortletter,soIwrotealongoneinstead.”MarkTwain

Checkthatyourpitchdoesn’tworkequallyaswellforyourcompetitor?

4. ISYOURBUSINESSSTANDINGOUTFROMTHECROWD?

Ifyourbusinessisnotfiringonallcylinder’sthenfixyourpitch!Mostbusinessessufferfromthe“curseofknowledge”,deludedintheirownbeliefthattheirmarketingmessageswork–helltheyunderstandthem,whyshouldn’ttheirpotentialcustomers?

Areyoursalesnotwhattheyshouldbe?Areyoufailingtogetinterestinyourinvestmentpitchorperhapsyourbusinessisjustnotfiringonallcylinders?Thenthereisahighchanceyourelevatorpitchisnotworking.

Thetroubleisyouastheauthor,theonewhohasbeenworkingwiththisforyears,istheworstpersontocraftaneffectivemessagetodescribeyourbusiness.Youareleavingyouraudienceswondering“whatthehelldoyoudo,andwhyshouldIgiveadamn”

Clarityofpurpose–createsbetterresultsNoemployeecomestoworkwithsabotageinmind,yetmostbusinessleadersarenotprovidingtheirstaffclarityaroundwhatthefocusoftheirbusinessis.

Askyourbusinesscolleagues“whatdowedo?”-yourelevatorpitch.Askyourreceptionist,bookkeeper,technicalguyandCEO.Arethemessagesallthesame?Aretheyallaboutanoutcomethatyourcustomerwillpayfor?

Mostbusinessesfailtoreachtheirpotentialduetooflackofclarityaroundwhattheirpurposeforbeingis,andmoreimportantlynotfocusingonactivitiesthataddhighvaluetotheircustomers.

TaketheWilliamsFormulaoneteammantra–“Wemakethecargofaster”.DoIputpart-ainthecarorpart-b?Whatmakesthecargofaster?Considerthatwithasmartelevatorpitcheveryoneinyourbusinessisfocusedonthesameoutcome.Everyoneisempoweredtomakesmartdecisionstowardsacommongoal.

Fortoolongelevatorpitcheshavebeenthedomainofsalesandmarketingdepartmentsassalestoolsratherthancoredrivingstatementsforthebusinessandhowitoperates.Doallofyourbusiness(staffandcustomersalike)haveacommonviewonwhatyourbusinessisallabout?Smartpitchesarethereasonyougetcustomers,

investors,thebeststaffandyourbusinessachievesitsgoals.

Takethetimeouttofocusonyourcoremessageandelevatorpitch:ittakestime,focusandthepoweroftheoutsiderviewpointtocraftaneffectivebusinesspitch.Investingettingsomeoutsidehelpinthisimportantareaofyourbusiness.

Openwithyour“leadstory”andWOWstatementthatgetspeople’sattentionBuildyourpitchwithsoundbites-thoughtsorpoints10–30secondseachUsethelanguageofyourtargetendcustomerFocusonWHATratherthanHOWQuantifycustomervalue–usingacustomer’smeasureofsuccess.Iftheoutcomeresultisachangeofgreaterthan30%,youhaveatruecompellingneedthatacustomerwillpayforArticulatewhatmakesyoudifferent-KeepitShort(60sec–3minmax)andsuccinct

Usememoryhooks:

Contrast-lifebeforeandafterpurchase.Stories–relevantcustomerstoriesandendorsementsareproventoclosedeals80-100%Props–PhysicalthingstoillustratethepointOnceyouhaveyourmessage,playwiththeorderofthesoundbitestoincreaseimpactRemembertostandoutfromthecrowdyoumustentertainandstimulateactionIfyourproductistechnical,usea10–30sec“context”statementasanintroduction,soanyonecanunderstandrelevanceofyourproductorservice

TipsforPowerfulPitches


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5. 90SECNETWORKINGELEVATORPITCHTEMPLATE

TIPS Succinctstatements

(10–20sec)

Customerstories–WOW!

Quantifypain&gainandpaybacktime

Contrast–(with-withoutorbefore-after)

Defineyourtargetaudience–whatpricepoint

5statementsx15secs=75secs…15secfree

1

Hi,Iam(name)….

Iamfrom(companyname)…

OpeningWOWStatement…makeastandanduseyourLEADstory

ValueProposition

2 Theproblemwesolveforourcustomersis…..

Quantifythecustomerpainandgain,ROI–payback

3

UniqueSellingPropositionWhatmakesusdifferentis….

Includecomparisonssubstituteproductsanddoingnothing

TargetMarket

4 Myidealreferral-customeris…

Size:employeeorrevenue,geography,demographic…

CaseStudy

Proof,credibility,understandingandWOW!

5 Oneofourcustomers….

Bespecific:Names,quantifyimpactyouhad

Whatmakesthiscaseinterestingandrelevant


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6. 9TRAITSTOEXCITEANINVESTORANDPROSPER

http://succinctstories.wordpress.com/2012/03/15/9-traits-to-excite-an-investor-and-prosper/

Will your company get investor interest and, more importantly, will it prosper?

ToomanycompaniesIseepitchingforinvestmentpitchaproductoratechnology,notacompany.Fixingtheproductpitchisarelativelyeasytaskincomparisontofixingthebusinesspitch,mainlybecausemostbusinessesdon’thaveastrategyorevenaplan.Sorry,“builditandtheywillcome”doesn’tcount.

Test your company against this list to see if you are investment ready:

1. Aproductthatweunderstand–theproblemandthesolution–nomatterhowcomplexthescienceisbehindyourcompany,itmusthaveasimpleexplanationoftheproblemyousolveforcustomersandthevalueyougiveyourcustomersandendusers.

2. Validatedmarketdemandfortheproduct–ifit’sanewventurewhatthirdpartyproofdoyouhave(eg.marketresearch,etc)thatpeoplewillbuyyourproductataprice,youcanmakemoneyfromit.Ifit’sinthemarketalready,exciteusaboutyoursalesgrowthstory.

3. Atrenddrivingincreaseddemand–creatingthe“perfectstorm”–whatisgoingoninyourtargetmarketthatsaysthisdemandwillcontinueandideallyincrease?

4. Asustainablecompetitiveadvantage–howareyougoingtodefendyourselfagainstthecompetitionwhenitwakesup?

5. Clear,quantifiedmetricsastohowthebusinessmakesmoney–howwelldefinedisyoubusiness–financemodel?Canyoumodelyoursalesprocess(eg.xdollarsspentonGoogleadwords=ydollarssales)?Atleastunderstandthefinancialmodelandyourcapacityconstraints.

6. Aclearandeasilycommunicatedbusinessplan/strategy–includinggo-tomarket–aclearandconcisestrategyandplanisalongwaytowardsachievinggreatness.Giveusconfidenceyouhaveatangiblewaytoreachcustomersandmeetdemand.

7. Anexperiencedteam–Nothinghappenswithoutacommittedandwell-equippedteam.Whatrelevantexperiencedoesyourteamhave?Rememberalwaysemploypeoplesmarterthanyou.

8. Clearreturnforinvestor–isyourvaluationsetatapointwheretheinvestorcanactuallymakeareturn?Remembernoexitplan=noinvestment.

9. Funpeopleworkingoncoolstuff–funandcoolmeandifferentthingstodifferentpeople–butlike

pornographyitisobviouswhenitis,orisn’t.

IconsistentlyseeintheNewZealandmarketplace,timeandtimeagain,businessesgetcaughtupwiththeproduct,technologyorscienceandarewastingtheireffortsbecausetheyfailedtostopandlookatthebiggerpictureofafullgo-tomarketplanandstrategy.


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7. 10TIPSFORCREATINGINTERESTINTECHCOMPANIES

Most deals are completed by not who we talk to, but who our audiences talk to… “Its not what you say, it’s what they pass on that counts”

Theacidtestofyourpitchisdiditgetpassedonandultimatelydiditgoviral.

Talkinginthelanguageofourtargetaudiencenotourstakespractice.Ifyouareascientistand/ortechnologistseekingendorsementandfundingfrominvestors,starttalkingtheirlanguage.

Hereare10tipstocreatingeffectivepitches:

1. Getattentionbedifferent–OpeningWOW.Standoutfromthecrowd,wakepeopleup.Justbecauseyouhavetheirphysicalpresenceyoudonothavetheirmind.Don’tbeboring.

2. Besuccinct–Talkinsimple10-30secsoundbites,createa3minversionfirst.Longmessagesarehardtoprocessandseldomgetpassedon.Thepowerofyourmessageisinverselyproportionaltothenumberofwordsused.

3. BuildsimplecontextforrelevanceThemorecomplexthetechnology,thegreatertheneedtoadda10-30secstatementthatsimplyexplainswhyweshouldcareaboutthistopicandwhyisitrelevanttootherpeople.

4. CustomerStoriesengageaudiencesThemostpowerfulwaytoexplainatechnologyistogiveusanexampleclient,theirproblemandwhatdifferenceyoursolutionmakesforthem.Customercasesareproventobe80%efficientinclosingsales.Ignorethetemptationtoexplainhowyourtechnologyworks–itssecondary,almostirrelevant,waittobeasked.

5. Contrast&quantifyoutcomesnottechnology–(with&without)

Buildonyourcustomerstorybyquantifyingthedifferenceyourproductmadecomparinglifebeforeandafteryourproduct.Audienceslikeblackandwhite,notcomplicatedshadesofgrey.

6. Explainyourbusinessmodel–includinghowyoumakemoneyandgotomarket.Usethebusinessmodelcanvasoravariantofittoillustrateyourbusinessmodelinapage.

7. HowyousayitismorerelevantthanwhatyousayResearchshowedthatmessageimpactisdetermined7%bycontent,therestisbybodylanguageandvoice(vocalvariety).Don’tmakeyourpitchboringbythewayyoudeliverit.

8. Investorsinvestinpeoplefirst–technologysecondTellussomethingaboutyourteamandwhywiththemonboardthisproject/venturewillsucceed.

9. BeclearaboutbothwhereyouaretodayandwhatyourBHAGisinspireusewithyourvision,butshowushowyouwillgetfromwhereyouaretotheendgoal

10. BetrueyourselfandyourbrandAuthenticityandpersonalitycounts-haveacharacterandawayandbeproudofit

Do not forget to listen … pitching is all about baiting an audience to begin an intelligent two way conversation…

more on this topic including an elevator pitch template >


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Year 2010 2011 2012 2013

Phase: Break&Even Sustainable&Business

Market NZ232Retail2XXX NZ22+2"Country2X"

Sales2&2Marketing

Product

Financial

Team

Operations

Risk

Competitor2Response

History

Startup

Coy$XYZ$($Milestone2Map3Plan

Toda

y2

102x2Top2Tier2

Customers2

$1M2Rev2

302other2Customers2

22founders232staff2

Lease22Office2

Cash2Flow2+ve2

Pay2founders2market2rate2

22months2OPEX22Cash2in2

hand2

Go2Live22Website2

100,0002Subcsribers2

Add2AddiWonal2up2sell2products2

service2

Min22Viable2product2

Need+early++adopter+clients+

Run+out+of+cash+

50,0002Subcsribers2

TV232Radio2Commercials2

Give&Service&for&Free&

22founders252staff2

70%2Top2Tier2

Customers2

Off2Shore2Expansion2

Complete2Service22Offering2

Plan2/Exit2Founders2

Dependance2on2Founders2

22founders2722staff2


$3M2Rev2

EBIT2$450K2

Professional2Services2Rev210%2

$500K2Rev2


All2Cash2for2adverWsing2

(no2founder2salary)2

$2.4M2Rev2

Maintain2Top2Cust2Service2

Top2Cust2Service2(VP)2

Increase2avg2Cust2Rev2to2XX2

200,0002Subscribers2

Social2Media2Campaign2

Compe9tor&entry&

Ipad232Iphone2App2

New22Feature2X2

2402hr2week2

2

152Teir212Customers2

"Own2the2category"2

8. MILESTONEMAP-PLAN


Needtocommunicateyourbusinessplantoattentiondeficitstakeholders?

…Orperhapsjustgetsmartfeedbackonyourplan.Creatingaone-pagemilestonemap-planonachartisagreatwaytokeepyou,yourteamandadvisorsfocused.Withasmalllistoftacticsandkeymeasuresyouhaveafargreaterchanceofachievingyourdesiredendresult.

Manybusinessgrowthstrategiesfallapartatthetransitionpointbetweencreatingkeystrategicthemesandestablishingasetofmeasurabletacticaltasksandgoals.Toomanybusinessesendupwithhugelistsoftactics,mostofwhichwillonlygettokenattention,withtheendresultbeingtheplanneverbeingexecuted.

Thistechniquewillforceyouupfront,toprioritiseandrationaliseyourtacticallistofthingstodo.Themilestonemap-planisagreatwaytosuccinctlycommunicateyourbusinessplan:thepast,presentandfuturetoallstakeholdersofyourbusiness.

Particularlywhenyouareseekingintelligentfeedbackandbuy-infrompotentialinvestorsandstaffwhoseattentionspansarelimited.

Afictitiousexampleofawebcompanyisshowntoillustratethetechnique.

Tipsonusingthemilestonemap-plan:

Limityourselftomaxof10milestonesperyear–prioritisethetop10thatwillinfluenceormeasuresuccess

Splityourmilestonesacrossdifferentfunctionalareas.Addrowstosuityourbusinessbutmakesureyouincludeatleastfinance,market,processandpeople.

Listthelast1-2yearstohelpprovideflow

Includeadditionalboxesonkeyrisksandyourcompetitor’sresponse,bothhistoricandforecast.

Donotfillthechartwithactivitiesthatwillnaturallyhappenunlesstheyhelpwiththeunderstandingoftheplan

Thisisnotaproductroadmap–listonlymajorproductreleases/events

Putituponthewallbyyourdeskfordailyreview

Themilestonemap-planisgreatforhelpingallstaffmembersfocusontasksthatwillhelpyouachieveyourgoals,aswellasshowingthedependenciesoftasks.

Ifyoufindyourselforyourstaffovertimenotexecutingtasksontheplanthenitstimetochallengethemap-planandtestoutwhether“theplanisstillrelevant”.Ifnotchangethemap-planotherwisereprioritiseyourwork.

Putyourplanupforcontinualchallengewithadvisorsandstaff.

Donotbeafraidtothrowitoutwhentheenvironmentchanges.Donotfallintothetrapof“thelawofcommittees”

“Ifacommitteeisallowedtodiscusssomethinglongenough,itwillinevitablyvotetoimplementtheiridea,simplybecausesomuchworkhasalreadybeendoneonit.”

Iftheplanisnogoodsaysoanddosomethingaboutit.

Succinctvisualtoolslikethisandthebusinessmodelcanvas,createpowerfuldiscussionsveryquicklyandmaximiseinteractiontime.Moreimportantlytheyincreasetheprobabilityofsuccess.


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Year 2010 2011 2012 2013

Phase: Break&Even Sustainable&Business

Market NZ232Retail2XXX NZ22+2"Country2X"

Sales2&2Marketing

Product

Financial

Team

Operations

Risk

Competitor2Response

History

Startup

Coy$XYZ$($Milestone2Map3Plan

Toda

y2

102x2Top2Tier2

Customers2

$1M2Rev2

302other2Customers2

22founders232staff2

Lease22Office2

Cash2Flow2+ve2

Pay2founders2market2rate2

22months2OPEX22Cash2in2

hand2

Go2Live22Website2

100,0002Subcsribers2

Add2AddiWonal2up2sell2products2

service2

Min22Viable2product2

Need+early++adopter+clients+

Run+out+of+cash+

50,0002Subcsribers2


Give&Service&for&Free&

22founders252staff2

70%2Top2Tier2

Customers2

Off2Shore2Expansion2

Complete2Service22Offering2

Plan2/Exit2Founders2

Dependance2on2Founders2



$3M2Rev2

EBIT2$450K2

Professional2Services2Rev210%2

$500K2Rev2


All2Cash2for2adverWsing2

(no2founder2salary)2

$2.4M2Rev2

Maintain2Top2Cust2Service2

Top2Cust2Service2(VP)2

Increase2avg2Cust2Rev2to2XX2

200,0002Subscribers2

Social2Media2Campaign2

Compe9tor&entry&

Ipad232Iphone2App2

New22Feature2X2

2402hr2week2

2

152Teir212Customers2

"Own2the2category"2


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9. TESTYOURBHAG


Whatistheunitingforceinyourbusiness?Runningandworkinginhighgrowthcompaniesishardworkandweareoftenlosingsightofwhatweareallabout.

DanielPinkinhisbookDriveoutlinedthreecoredriversforpeople:Autonomy,Mastery,andPurpose.(Note:Forthosewhohavenotreadthisgreatbookwatchthe10minuteanimatedsummary)

NothingbindsabusinesslikeaclearandsuccinctBHAG(BigHairyAudaciousGoal)andaclearpurpose.Iamnottalkingaboutthetraditionalboringmissionstatementsthatlimethewallsofcorporateoffices,fullof:Corporateblahblah…typicallylotsofwordstakenfromacorporatespeakbingocompetition.

WhatIamtalkingaboutisamantraorBigHairyAudaciousGoal(BHAG)thatisworthwakingupinthemorningandgoingtheextramile.

HavealookatsomeofthefoundingBHAGsforsomeofindustriesgreatcompaniesnotingthisiswhattheystartedwith...

Microsoft:"Acomputeroneverydeskandineveryhome"

Amazon:"Everybook,everprinted,inanylanguage,allavailableinlessthan60seconds.Also:Earth'smostcustomercentriccompany"

Ford:"Democratizetheautomobile"(1900’s)

Twitter:"Tobecome"thepulse”oftheplanet"

GiroSportDesign:"BecometheNikeofthecyclingindustry"

Nike:“CrushAdidas”(1960’s)

BrianGaynorspokeatSpringboardthismonthciting"NewZealandbusinessowners,incomparisontoAustraliancounterparts,lackedambition".

CheckyourBHAGagainstthelistinthetakeoutpanel.DonotfallintothetrapofbeinganotherconservativeKiwicompanywithoutbigambition.

Hereareafewideasfromlocalexamples(note:nottheiractualBHAG)

Biomatters:"Toolsoneverybiologist'sdesktop"

E-spatial:"THElocationintelligencebehindallmajorNewZealandenterprisesolutions"

Salefinder:"NewZealand'sultimateconsumerresearchtool"

Whenitcomestopurposestatements-thesearejustclearconciseversionsofyourvaluepropositioninthelanguageofyourclients.Moreonthislater–atopicforanotherblogpost.Inthemeantime,youcanreadvaluepropositionsrevisited,creatingsuccinctmessages,Novalueproposition=Nobusinessfromoldposts.

ExamplePurpose:Spikemail:"Creatingqualifiedandengagedbuyersversuscreatinglists"-notenoreferencetotheircorecraftofemailmarketing.

IngredientsofBHAGsthatworkare:

Compellingandgripping:peopleunderstandstraightawayActionorientatedBold:borderingonarrogantandunattainableClear:who,what,where,bywhenTypes:Target,commonfoe,rolemodel,internaltransformationSUCCINCT:Thepowerofmessageisinverselyproportionaltoitslength


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10. TECHNICIAN,MANAGERORENTREPRENEUR–E-MYTHREVISITED

http://succinctstories.wordpress.com/2012/02/29/technician-manager-or-entrepreneur-e-myth-revisited/

DoyouexperienceExhilarationorExhaustiondaily?

Whatareyou?Technician,ManagerorEntrepreneur?Toooftenpeoplestartbusinesseswithgreatenthusiasm,thenbeforeyouknowit,thepassionisgoneanditsjusthardwork.

MichaelGerber’s“TheE-MythRevisited”bookmakesthepointthattobesuccessfulinbusinessweneedtobemasterjugglerofthreefunctionsTechnician,ManagerandEntrepreneur.

Technicians–liveinthepresent:Expertsindoingstuff,craftsmanattheirtrade.Theirethosiscapturedbythestatement“youwantitdoneright,doityourself”.

Managers–liveinthepast:Pragmaticinnature,planningorder,creatingpredictability

Entrepreneurs–liveinthefuture:Theyturnatrivialconditionintoexceptionalopportunity,truevisionariesandcatalystsforchange.Theyarefocusedonthebiggerpicturecontinuallyquestioningthebusinessanditsplaceasopposedtooperatingit.

TheE-mythreferstotheEntrepreneurialMyththatbusinessesarestartedandlead

byentrepreneurs,ratherthanthetruth,mostbusinessesfailbecausethefoundersaretechnicians.Theirentrepreneurialtraitsonlyappearingforasmallmomentintimeatinception,onlytobequicklyreplacedbythedominantbehaviourofatechnician.

Theactsofatechnicianleadbusinesses,inevitablyleadtowhatGerberdescribesas“entrepreneurialseizure,thatpointwhenthebusinesshasenslavedtheowner”.

Theclassicsignorprecursortothis“seizure”beingwhenthetechniciansabdicatetaskstheydislikeordonothaveskillsin,ratherthandelegating.Typicallythisplaysoutasemployingsomeoneforawhiletodoallthestufftheydislike.Slowlytheybecomedisconnectedfromthebusinesstheystartedandafterawhilethenewmanagertheyemployedgetspissedoffandleavestheminthepoo(poobeingmytechnicalwordnotGerber’s).

“Toomanyentrepreneursstartoutwithpassionanddrive,toonlyfindthemselves

withalousyjobafewyearslater,workingtheirbuttsoffforlittleornoreward.”

Thee-MythRevisitedisagreatreadandisavailableonKindlewellworthanafternoononyourdeckchair.

MorewisdomfromGerber…“Amature

businessknowshowitgottobewhereitisandwhatitmustdotogetwhereitwantstogo”.Shiftingfromadolescencetomaturityasabusinessusuallycoincideswithacrisisorgettingoutsidehelp,youchoose.

Thefactthatthesetechnicians(craftsman)arenotstrategistsorskilledinsomebasicbusinessskills,isveryevidentintheNZlandscape.

Howdoyoubalancethetechnician,managerandentrepreneurhats?Coincidentally,ornot,Ihaverecentlyjustre-enthusedacoupleofbusinessesowners,whohadlosttheirway,justasGerberdescribesinhisbook.

Fixingthistypeofdilemmatakestwostepsbestdonewithoutsidehelp:

1. TheAwakening–someformofstrategicreviewandtoolkit,whereyoucanseeyourbusinessfromtheoutsidelookingin.

2. GettingClarityaroundhowtobesttakeadvantageofthisnewstrategicviewpointwithanewsimplestrategyandmodeofoperationthatrecapturesmotivation,cleardirectionandbusinessopportunity.Ratherthandoinglotsofmoretechnicalstuff.

Soforpragmatists–sometips:

Workonobsoletingyourselffromyourbusiness–“ifyourbusinessdependsonyou,youdon’townabusinessyouownajob”

Beconsciousofyournaturaltendenciesorbiasestowardsbeingatechnician,managerorentrepreneur.Challengeyourselftoperformthetworolesyoudonothaveanaturalaffinityfor.Whenwasthelasttimeyourevisitedyourstrategy?Whoareyoubeingtoday?

Delegate,don’tabdicate:Donotabdicatetasksthatyoushouldhaveaccountabilityfore.g.financejustbecauseyoudon’tlikeitordon’tunderstandit.Canyoulayyourhandsonanuptodate(endoflastmonth)P&Landbalancesheetwithinthenext10mins?Ifnotyouhaveabdicated.

Learnsomemorebusinessskillstocomplementyourskillssoyoucandelegatewithfullknowledgeandrespectforspecifictechnicalskillsspecialistsprovide.E.g.basicfinanceisnothardtolearn.


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11. GMCBUSINESSMODELCANVAS

Clarityanddefinitionofyourbusinessmodelisonewaytogiveyourbusinessaninstantsteroidshot.Fromaplanningperspectiveitisalsoworthwhileexploringarangeof“whatif”scenario’saroundapplyingdifferentbusinessmodelstoyourbusiness.PrepareyourBusinessasusual(BAU)canvas,thenchallengeyourselftolookatnewcanvasmixes:differentbusinessmodelsandmake/buycombinations.

Thebusinessmodelcanvasisagreatwaytobriefnewstakeholderswhoworkwithyouincludingnewstaff,bankers,advisorsandpotentialinvestors.OncedevelopeditcanbeusedwiththeGMCGuidetoSayingNo.

Theoriginalbook“BusinessModelGeneration”byAlexanderOsterwalder&YvessPigneurprovidesgreatexamplesofhowtodocumentbusinessmodels,alongwithmethodstobrainstorminnovativechangesinbusinessmodelsforexistingbusinesses.

ItsgreattoseetheBusinessModelCanvasisgainingwideruse,manyoftheuniversitiesarepickinguponit,usingitastoolintheirentrepreneurialprogrammes.InthispostIthoughtIshare,theupdatedGMCCanvasvariantthatIuse.

(Clickimagetodownloadpdftemplate)


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TheGMCCanvasComponents:ValueProposition(VP):

Thevalueproposition(VP)mustbeattheabsolutecoreofanybusiness.WhendefiningyourVPitisworthwhiletoalsoclarifyyour“CustomersProblem”thattheywillpaytosolveandmakesurethatyourVPdefinitionincludeyourUniqueSellingProposition(USP).

Isyourvaluepropositionuniquetoyou,orwoulditworkforanyoneelseinyourspace?

Doyouneedtoseparateoutthevaluepropositionforthecustomer(thepersonpayingthebill)fromtheenduserofyourproduct/service?

MarketSegment(MS):

Defineyourmarketsegmentastightlyasyoucan.Oftenitpaystofocusonyourbeachheadmarket-i.ethemarketwhereyoucanmakethemostmoneythequickest.

Ifyouhaveaplannedphaseapproachtoyourgotomarketstrategylistthemarketsseparately.Donotforgettoincludeapsychographic(decisionmakingpriorities-traits)andbehaviouraldefinitionifrelevant.

ChallengeyourselftonarrowyourdefinitionsoyoucaneasilyqualifyoutCgradecustomers(theonesyoudonotmakemuchoranyprofitoff)

Dothesecustomershavebudgettospendonsolvingyourtheproblemyouhaveidentified?

CoreCompetencies:

Whatkeyskillsandknowledgedoyouhave?ThesewillcomefromthestrengthsyouhavelistedinyourSWOT.

Haveyoulistedtheonesthatenableyou:

Createvalueforyourcustomers Acquirecustomers Differentiateyou Generateprofit Sustainyourcompetitiveadvantage

Assets:

Remembertoincludeintellectualproperty,customerrelationships,keycontractsandbrandiftheyareassetsforyou.

Don’tincludeitemsthatcaneasilybereplacedorthatarelowvalueKeyPartners:

ListonlyKEYpartnersthathelpyoubuildyourproductorserviceorreduceriskinyourbusiness.

Ifapartnercompetencyistoocrucialtoyourbusinesshighlightitperhapsandanarrowtointernalcompetencylist(Youmayneedtoplantobringinhouseorgetagoodcontractualarrangement)

Themakeorbuydecisionwillberepresentedbywhetheryoulistsomethinginthekeypartnersorcompetencybox

ChanneltoMarket:

Inthissectionincludekeypathwaystoacquiringcustomersandleads.

CostStructure:

Splitoverheadsandvariables.Explicitlylistanymajorcostsorcontractualarrangements.ListitemsfromyourP&L

thatequateformorethan20%ofyouroverheadcost.Showareferencemetriceg%ofcost.Showrawcost(ormargin)ofandmanufactureditemsthataccountformajorityofyourrevenue.Don’tforgettolistanymajordebt.

Revenue:

Splitrevenueintomajorrevenuestreams–productlines/channels.

BHAG(BigHairyAudaciousGoal)

WhatistheBHAGthatmotivatespeopletojointhecause.ReferBHAGpost

YourBHAGneedstobemorethanarevenuetarget.

BrandEssence/Values

Whatarethetop5–descriptorsofyourbrandessenceandculturevalues.

MostHRissuesstemfromfailuretoadheretocorevalues.Makessuretheyareexplicitandallstaff,understandhowtheyapplytothem.

_____________________________________________

What’sMissing:

Ifsomethingismissinginyourcurrentcanvasthatshouldbethere–egyourbrandshouldbeanassetbutitisn’taddittothecanvasandhighlightitinsomeway.

CreateMultipleCanvases

Takethetimetoexploremultiplecanvasesandthendoacost/benefitscenarioanalysisusingasimplecomparativematrix


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12. THEENTREPRENEURSGUIDETONO–TESTYOURLASTDECISION

http://succinctstories.wordpress.com/2011/06/07/the-entrepreneurs-guide-to-no-test-your-last-decision/

Beinginbusinessisaddictiveandjustlikealcoholics,businessowner’slooseobjectivity–wastingtoomuchtimeonthewrongideaoractivity.It’smyambitiontoacceleratethegrowthandfailureofNZcompaniesbyremovingclutterandsimplifyingbusinessgrowth.FormostbusinesspeopleIspeakwith,it’snotalackofideasorthingstodo,it’saboutdecidingwhatNOTTODO.

Donotendupbeingagreatjockey,ridingalamedonkey.Successisjustasmuchaboutkeepinganobjectiveeyeoutfordistractingactivitiesorideas,asitisaboutfindingopportunities.Don’toverdoseonthe“gohardorgohome”attitude;makesureyouareapplyingsomerationalthoughttoyourventure.

AfterreviewingthousandsofNZbusinessideas,byfarthebiggestsuccessfactorisfocusingonstuffthatgeneratesrevenueanditsbeautifulcousinprofit.Withoutprofityouatbesthaveagreathobby,somethingyouarepassionateaboutandgoodat.

Sobeforeyouleapintoyournextventureoradditiontoyourexistingbusiness,testyourideaagainstmy

“GMC6reasonstosayNO”:

1:Doesitsolveaproblemordesirebigenoughforsomeonetopaymoneyforit?-yourvalueproposition2:Canyoudifferentiateyourproductorservicefromthecompetition?–yoursustainablecompetitiveadvantage3:Canyoumakemoneyfromthis

venture?

–yourbusinessmodel4:Doyouhaveateamwithenoughskillstomakethisidea–venturework?-yourtalent5:Isitfun?-Yourculture–motivation6:Willitstackupagainstsomenon-emotivechallenge-Governance

Thisrulesetworkswhetheryouarestartinganewbusiness,orsimplytryingtoimproveyourcurrentbusiness.

Useittotestyourideassoyoucangroworfailfast.It’samazinghowmanygreatcraftsmanwehaveinNZcreatingsolutionsforproblemsthatdon’texistorarenotbigenoughtowarrantsomeoneoutsideyourmotherandmatestoopentheirchequebookandpurchase.

Testyoulastthreedecisionsagainstthe6rules….

CHALLENGE( DISCIPLINE( PHILOSPHY(

1:(Does(it(add(value(to(customers(((((&(differenAate(us?(

ProposiAon(!

We(exist(because(of(customers(Does!this!drive!us?!

2:(Does(it(make(money?! Cost(structure( Investment(decisions(Our!money!and!false!economies!

3:(Does(it(fit(our(business(model?(((((((Can!we!outsource!it?!!

Business(Model!!

Are(we(working(smart?(

4:(Are(we(having(fun?(((((((Does!it!fit!our!culture?!

Working(in(the(Zone(Culture!

Living(and(managing(by((brand(&(culture(

5:(Does(it(fit(our(master(plan?( Strategy! Are(we(focused(on(one(goal(!!!!!!!!!!!Is!it!a!diversion?!

6:(Challenge(me:(((((!Is!it!:me!to!rethink!the!plan?!!!!!!Does!it!make!good!business!sense?!

(Governance(

!

Do(we(have(a(reference(point(and(high(performance(coaches?(!

IS(IT(SUCCINCT(&(WILL(IT(PASS(THE(NO(BULLXSHIT(TEST?(

www.growthmanagement.co.nz


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13. PIGSANDCHICKENS–BUSINESSMODEL

http://succinctstories.wordpress.com/2011/09/11/pigs-and-chickens-business-model/

Isyourbusinessapigorachicken?HaroldStar’sbook“ChickenandPigs–BusinessModelsandCompetitiveStrategies”putsbusinessesinto4categories.

Thesemodelsarereferencedbytransactionfrequencyandrevenuecontributionfromeachtransaction.

Mytakeawaysfromthisbookare:

Businessmodelsareaboutcustomersnotendusers,oftenpeoplegetthesestakeholdersmixedup.Customersaretheoneswritingthecheques. Fewcompaniesknowwhytheir

customerscametothemandwhytheystay

Ittakesdifferentskillstoattractcustomersandretainingthem

Onceestablishedabusinessmodelisverydifficulttochange.Thiscomesfromthecustomerbehavioursandrequiredskillsassociatedaroundmaximizingoperationalefficienciesworkingeachmodel.

Businessmodelsarepredicatedarounddecisionsmadebymanagementaroundthreemodelelements(strategicDNA):Customer,

ResourcesandCapabilitiesandValueProposition.

Manycompaniesoperatemultiplemodels,assuchtheyneedtobeconsciousthateachmodelrequiresdifferentskillsandbehaviours

Throughhisbookitheneveractuallymentionswhyhecallsthemsuch,perhapsobvious,butmytakeis:

Chickens:Layeggs–lotsofregularcontributions

Pigs:goodforbaconandhamattheend,lotsofrewardonce

BlackWidows:Mateandkilltheirprey,likebigcustomerswhoconsumeyourbusinessleavingyouatriskwithasmallnumberoflargecustomers

Locusts:lotsofthemandtheymoveinpacks,shortlifeexpectancy

CheckoutbothHarold’sWebSiteandhisbookformoredetailonthispragmaticapproachtoclassifyinganddevelopingstrategiestomanageyourcustomerpoolsandbusinessmodel.

Thewebsitehasplentyofgreatinformation.Clickoneachmodeltogetmoreinformation.

Ifyourbusiness… Thenitis… Yourcustomeroffer… Yourresourceissueis…

Sellsdirectlytothepublic Locust Satisfaction Efficiency

Isaprojectbusiness Pig ProblemResolution Availability

Enjoyssubscriptionrevenues Chicken ProblemManagement Consistency

Has1or2dominantaccounts BlackWidow Partnership Learning


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14. WINNINGCULTURE’S:DON’TBLAMETHESTAFF–WHO’SRUNNINGTHESHOW

http://succinctstories.wordpress.com/2010/06/26/winning-culture%E2%80%99s-don%E2%80%99t-blame-the-staff-%E2%80%93-whos-running-the-show/

IlistenwithinteresttomanyCEO’scomplainabouttheperformance,accountabilityandattitudeoftheirstaff.

InmostcasestheseCEO’saresofocusedonbeingbusyanddoingitallthemselves,thattheyaremissingoutonsomebasics.

Hereare4quicktipstofixgeneralperformanceissues:

Getclarityaroundwhatsuccesslookslikeforyouandyourcustomers,eg“wemakethecargofaster”.

Defineandmanagetoacultureset.Callitvaluesorcallitamanifestobutdefineit,leadbyexampleandactwhenit’snotlivedupto.Hireandfirebasedonthiscultureset.Otherwiseyourgoodstaffwillrunaway.

Leadratherthanmanage:Startwithhiringsmarterpeoplethanyourselfandthendelegate.

Setupanadvisorygrouptohelpchallengeandkeepyouoncourseandbeaccountabletoyourownplans.ToomanypeoplegethungupwithtitlesandlabelsGovernance,Boards,advisorygroups,compliancejustgetstarted.

Twocompaniesthathaveexperiencedexplosivegrowth:TrademeandAtlassian

haveclearculturesets(shownbelow).

Howwouldyoudescribethecultureofyourteam?Ifyoudonotdefineitandliveit–itwillevolvetothelowestcommonform.

TheTradeMeManifesto-FollowthelinkstoRowanSimpson’sblogformoredetail

#1:Creategreatwebsitesandpeoplewilltelltheirfriends#2:Belikeelectricity#3:Lettheserverrunthebusiness#4:Empathise#5:Makepeoplefeelsafe#6:Talkstraight#7:Hirepeoplesmarterthanyou#8:Beinformalbutserious#9:Measureeverything#10:Justtrystuff

Atlassian’sValues-moreonAtlassian

Purpose:

CreateusefulproductspeoplelustafterValues:

#1Opencompany,nobullshit#2Buildwithheartandbalance#3Don’tfuckthecustomer#4Playasateam#5Bethechangeyouseek


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15. VALUEPROPOSITIONS–

REVISITED

http://succinctstories.wordpress.com/2011/02/24/value-propositions-revisited/

Lackofclarityinbusinessaroundwhatvaluetheyoffertheirclientsorwhat’simportanttoclientscanbefatal.Ithasbeensorefreshingtorecentlyreadthe37SignalsReworkbook.Hereisacompanythathasbeenaragingsuccessbyfocusingonkeepingtheirapplicationssimple–underdoingtheircompetitorsonfunctionality.

Tooftenwelosesightofourmostimportantstakeholdersourcustomersarewefocusingonwhatisimportanttothem.

Yesyetanotherpostonvaluepropositionfromme–thelastonewasNoValueProposition=NoBusiness,thissimpleconceptisstillnotunderstood.Istillcomeacrosstoomanybusinesspeoplewhoareconfusedbetweentechnology,featuresandValuePropositions(VP).

Value:quantifiedworthorsuccessfactor,equivalentworthinmoney

Proposition:theactofofferingorsuggestingsomething

Technologistsinparticular,getfooledbytheirearlyadopterspurchasingontechnologyandnew.

Youneedtorememberthisisasmallgroupofpeopleandwillnotmakeyourich.(read“CrossingtheChasm”–byGeoffreyMoore)

Thebuyingdecisionbyyourcustomeriscomplex–butthereisalwaysamixofemotionandlogic.Intoughtimesclearvaluepropositionsdominateoveremotion.Mytakeisifyouhaveaclearvaluepropositionyoubusinessdoesnotneedtobesexytowinsales.

ToillustratethepointherearethevaluepropositionsandthoughtsIwentthroughonsomerecentpurchasingdecisionsformybusiness:

Product:LearningSourceTrainingLogistics-BookingSystemVP:$129permonthischeaperthanhiringsupportstafftomanagevenues,registrationsandlast-minutecoursecommunications.Theperregistrationfeeisdirectlyrelatedtomysuccess.

Product:XeroAccounting:$50permonthischeaperthanwastingmytimewithbankreconciliationandcheckingbankbalancesviamybanksproprietarywebsite.AutomatedprocessingisquickerthanthatonMYOB.Savingme4hourseverymonth.

Note:thereasonIshiftedGMCfromMYOB(whichBTWIthinkisabettertechnicalproduct)isbecausetheywantedtochargemeforasoftwareupgradefornewGSTrate(afeatureIjustexpectedtowork).Thebusinessvaluesweremissalignedwithmine.

Interestingmyguessismanybusinessownersarestillpayingforbookkeeper’sthatcouldeasilybereplacedwithXeroplusbusinessownerdevoting30minsadaytostayingintouchwiththeirbusinessfinances.

Product:Applemacair:valueproposition:itsstartsinstantly–butmostimportantlyit’ssexy.

Product:50GDropBox:$100peryear–fearoflossofdatawasthefinalVPthattippedme.Myserverlivesmyhouse–abreakinforcedmetoconsiderwhatifIlostallmydata.Itwastheonlythingnotreplaceableinmyhouse.$100appearedasaninsignificantcost.Theconvenienceisgreat–butnoteitwasfearthatclosedthedeal.


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16. DON’TSPENDALLYOURMONEYONDEVELOPMENT

http://succinctstories.wordpress.com/2012/05/10/dont-spend-all-your-money-on-development/

Theprocessofsellingcostsandittakestime…Acompanywithoutsalesandago-tomarketplanisascienceproject,notabusiness.

ItblowsmeawayeverytimeIcomeacrossyetanotherbusinessthathasaproductallfinished,patentsappliedfor,accountsdone,butnogo-tomarketstrategyoranysalestospeakof–ANDNOCASHLEFT.

Worststill,licensingdealsthathavenottakenintoconsiderationcashflowandgo-tomarketissues–ANDSTILLNOCASHLEFT.

Itdisgustsmethatallthelawyersandaccountsthatthebusinessspentmoneywithneverencouragedthebusinesstosavesomemoneyforsalesandmarket.

Whetherit’sscience,technology,orproducts,toomanybusinessesarerunningatDeath’sdoor,becausetheyhavefailedtobudgetforandspendappropriatelyonmarketingoftheirproducts.

Ruleof10’sOneofthemostbasicrulesanynewproductbasedventureshouldtakeintoconsiderationistheRuleof10’s.Ifittakes$1tocreateabusinessconcept,itwilltake$10tobuildaproduct,$100tomarketit,$1000tobuildabrand,and$10,000foraninternationalbrand.

Pleasemakesureyouhavesometime,energy,andmoneyleftfortakingyourproducttomarket.Asanex-engineerIgetitguys,youwantitfinishedandperfectbeforeyougosellit–

butgetoveryourselves,gosellvapourware.Trustme,thesalescyclewilltake10timesaslongasyouthinkandcostyou10timesasmuch.

STOPspendingontechnologyandproducts.STARTspendingonmarketingandsalesNOW.Itappearsthatmostprofessionalsouttheir,patentattorneys,accountantsandthelikehavenoknowledgeofproductcommercialisation–otherwisetheywouldbeadvisingbusinessestosavesomecashforthiscrucialactivity.

Atveryleast,considerhowyouaregoingtosellandmarketyourproductandbudgetforitnow.


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17. PRODUCTMARKETING–THEMISSINGDISCIPLINE

AneffectiveProductMarketingteamismostprobablythebestinsurancepolicyforanynewventure.ForatradingcompanytheSalesteamandCEO’sallhavetunnelvisiononnextquarter’srevenue.Theroleofproductmarketingistobuildnextyear’srevenueandensurethatanyinvestmentinproductdevelopmentproducesameasurablereturn.

Thefinitedefinitionofproductmarketing’sfunctionisvariable,butitunanimouslydoesincludethefullrangeofmarketingactivities,ratherthanjustpromotionactivities.Notingthatfortoomanybusinesspeople,marketingisjustapromotionactivity.

Keyactivitiesofpureproductmarketingthatareoftenabsentinbusinessesinclude:

Assessmentandvalidationofmarkets.Willsomeoneactuallybuythisproductonceitiscreated?

Accesstochannelstomarket–smartgo-tomarketstrategiesanddistributionagreementsthatareworkableandwillnotconflictwithpotentialcompanyexitstrategies.

ReturnonInvestment–workingoutifthisisthebestuseofthecompany’scapitalandwhenandhowwillitgetareturn.

Developmentofeffectivesalescollateralandmessaging-thatcommunicateswhatisrelevanttocustomers,ratherthanafeatureortechnologylist.

Checkyourcompany’smarketingactivitiesagainstthisgreatlistfromwww.pragmaticmarketing.com

ThisisoneareawehavealottolearnfromAmericantechnologycompanies.NewZealandtechnologycompaniesoftenmakethefirstmoveofappointingproductmanagers,tomanageproductroadmaps,productrequirementsdefinitions,andact

astherefereebetweensalesanddevelopmentteams.

MysuggestionfollowingonfrommyrecentRuleof10’spostis,attheveryleast,budgetanequivalentamountofmoneyinthecompletelistofmarketingactivitiesasyoudoinproductdevelopment.Likewise,balanceyourmarketingspendbetweenstrategicandtacticalactivities.

IwouldencourageCEO’sofcompanies,CrownResearchInstitutesanduniversitiestoexplorethismissingdiscipline.IwouldalsowelcometheMinistryofScienceandInnovationtobegintoinvestinthiscrucialareaofcommercialisation,ratherthanjustthesciencepart.

Business'Plan' Posi,oning' Marke,ng'Plan'

Market'Problems'

Market'Defini,on' Pricing' Buying'

Process'Customer'Acquisi,on'

Win/Loss'Analysis'

Distribu,on'Strategy'

Buy,'Build,'or'Partner'

Buyer'Personas'

Customer'Reten,on'

Dis,nc,ve'Competence'

Product'PorDolio'

Product'Profitability'

User''Personas'

Program'Effec,veness'

Compe,,ve'Landscape'

Product'Roadmap' Innova,on' Requirements' Launch'Plan '' Sales'Process' Presenta,ons'

&'Demos'

Technology'Assessment'

Use''Scenarios'

Thought'Leadership' Collateral' “Special”''

Calls'

Status'Dashboard'

Lead'Genera,on' Sales'Tools' Event''

Support'

Referrals'&'References'

Channel'Thinking'

Channel'Support'

MARKET' STRATEGY' BUSINESS' PLANNING' PROGRAMS' READINESS' SUPPORT'

STRA

TEGIC) TACTICAL)

Pragmatic Marketing Framework

™

'PragmaticMarketing.com

'


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18. PERSONAS&ZERO-BASEDSTRATEGICTHINKING

http://succinctstories.wordpress.com/2012/06/01/personas-zero-based-strategic-thinking/

Incrementalchangeisdangerous,particularlycomeplanningtimeforyourbusiness.Leftunchallengedyoucansufferaslowdeath,orbetakenoutbyagorillainyourmarket.Herearetwowaystobreakyournormalincrementalthinking.PersonasattheBoardroomTable:

WhatwouldSteveJobs,RichardBranson,orJohnKeybesayinginyourstrategydayiftheywereontheboardofyourcompany?Thisisthepowerofpersonas.

EdwarddeBonofirstpopularisedthismethodwithhis“SixThinkingHats”.Userexperiencedesignpeopleadoptasimilarapproachtoensuringrealuserscanutilisemodernsoftwareapplications.Thereisagreatarticleon“ThePowerofPersonas”foruserdesignintheMSDNMagazine.

Createsomeimaginaryboardmemberstoyourcompany,theycomecheap,andgivethemaseatatyourboardroomtable.Thenlistentowhattheywouldbesayingiftheywereintheroom.TobalancethebigthinkingofaJobsorBranson,youmaywantsomeoneelseatyourboardtabletobalanceouttheirbigbudgetthinking.

Ifyouareknowntodreambig,perhapsyouneedtheconservative‘blackhat’thinkeratyourtabletoquestionthereality

ofyourplans.Thisisagreatwaytobreakwithconservativelimitedthinking,beliefsthatexistinmanyboardrooms,whetheryourproblemisnotdreamingbigenoughoryouneedahandbreak.Donotinvitetoomanyimaginaryfriendstoofrequentlyoryourfriendsandfamilymaythinkyouaregoingnuts!

Zero-BasedThinking:Accountantsoftenrefertozero-basedbudgeting.Thisisthemethodofcreatingyourbudgetfromacleansheetofpaper,ratherthansimplymodifyinglastyear’sbudgetbyX%.

Thesamegoesforbusinessplanning:takethestanceifyouwerestartingyourbusinessoveragain,butwiththeresourcesandcapabilitiesthatyouhavenow–whatwouldyoudo?Inviteyournewboardmembers(personas)tothetableaswelltohelpyouwiththisexercise.


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19. STRATEGYORAGOAL

Astrategyisnotafinancialgoaloramotivationalslogan,itisaplanthathasbeendevelopedtosurmountachallenge,basedonaconsideredchoice,createdfromathoroughunderstandingoftheenvironmentyouexistin.

Whatisthe“rationalethatsaysyourbusinesswillbesuccessfulinthelongterm”and“howwillyouexploityourcompetitiveadvantage”?

Yourunderstandingoftheenvironmentthatyouexistin,tothepointwhereyoucanattempttopredictthefuture,soyoucanseelongtermpositionsofstrengthwillenableyoutocreateeffectivestrategy.Withoutundertakingthisexerciseyouareoperatingwithoutakeypieceof“intel”youwillstumblefromoneshorttermopportunitytoanother,missingoutonlongtermprofitablemarkets.

WikipediadefinesStrategyas:

Astrategyisaplanofactiondesignedtoachieveaspecificgoal.Strategyisallaboutgaining(orbeingpreparedtogain)apositionofadvantageoveradversariesorbestexploitingemergingpossibilities.Asthereisalwaysanelementofuncertaintyaboutthefuture,strategyismoreaboutasetofoptions(“strategicchoices”)thanafixedplan.

Theproblemwithmostentrepreneursistheirunwillingnesstostopandanalysethemarketortheeco-systemtheyexistinlong

enoughtocreatemultipleoptionstocreateaninformedstrategy.Acrucialstepincreatinggoodstrategyisthatyoupresentmultipleoptionsandthatyouareforcedtodebateandcreatestrongerargumentstosupportthem.Tooftenweeithergowiththefirstoptionorjustoperateincommitteemodeandmergetheoptionstogether.Powerfulstrategyofteninvolveshurt–someonenotgettingtheirwayandstoppingpetprojects.

Ourimpatienceanddesireto“justdoit”–makesusjumpdirectlytocreatingaplan,missingoutonthegreatpowerof“truestrategy”

Therearetwoordersofpowerwhenlookingatstrategicplanning.

1. BusinessPlanning:-OperationalExcellence:Gainingclarityinwhatyoudoandaregood,decidingwhattodoandnot.BHAG(Bighairyaudaciousgoals),purpose,definingimmediategoalsandtacticstoachievethosegoals.,basiccompetitoranalysis.Thisbusinessplanningbyitselfdoesproduceimprovedperformance,butwillnotderiskthebusinessinthelongterm.

2. StrategicMarketAnalysis:Thishigherorderactivityinvolvesdeeperunderstandingofwhatisgoingoninthemarket,wherelongtermopportunitieslie,maximisinggainsoverindustrytrendsandpredictingtrends.Althoughthisactivityrequiresindepthmarketresearchandevaluationofmultiplepathsitwillresultinasimplestatement.

InRichardRumflet’sbook“GoodStrategyBadStrategy–thedifferenceandwhyitmatters”hemakesastrongcasefortakingthetimetodowhatIrefertoasStrategicMarketAnalysisbeforebusinessplanning.He

makebrutalcommentsaboutwhathecallsbadstrategy.Hehasbroughtanewclaritytomearoundbusinessstrategyormoreimportantlynonstrategythatwillhelpmeinmywork.Belowarefewexcerpts–learning’sfromhisbook(availableonkindle)…

GoodstrategyalmostalwayslooksthissimpleandobviousanddoesnottakeathickdeckofPowerPointslidestoexplain.Itdoesnotpopoutofsome“strategicmanagement”tool,matrix,chart,triangle,orfill-in-the-blanksscheme.

Unlikeastand-alonedecisionoragoal,astrategyisacoherentsetofanalyses,concepts,policies,arguments,andactionsthatrespondtoahigh-stakeschallenge.

Thecoreofstrategyworkisalwaysthesame:discoveringthecriticalfactorsinasituationanddesigningawayofcoordinatingandfocusingactionstodealwiththosefactors

Ifyoufailtoidentifyandanalyzetheobstaclesandopportunities,youdon’thaveastrategy.Instead,youhaveastretchedgoal,abudget,oralistofthingsyouwishwouldhappen.

Thekernelofastrategycontainsthreeelements:adiagnosis,aguidingpolicy,andcoherentactionthatrespondtoahigh-stakechallenge.

1. Diagnosingthespecificstructureofthechallengeorchangeratherthansimplynamingperformancegoals.

2. Choosinganoverallguidingpolicyfordealingwiththesituationthatbuildsonorcreatessometypeofleverageoradvantage.

3. Thedesignofaconfigurationofactionsandresourceallocationsthatimplementthechosenguidingpolicy.

Goodstrategyisnotjust“what”youaretryingtodo.Itisalso“why”and“how”youaredoingit.Combiningallthreeelementsmentionedabove.

Evenafterworkingoutwhatneedstobedone“GoodStrategy”isexplicitinhowyouwilldoit.SteveJobs’sguidingpolicyislegendary:(1)imagineaproductthatis“insanelygreat,”(2)assembleasmallteamoftheverybestengineersanddesignersintheworld,(3)maketheproductvisuallystunningandeasytouse,pouringinnovationintotheuserinterface,(4)telltheworldhowcoolandtrendytheproductiswithinnovativeadvertising.

MyobservationisthatwearealljumpingoversteponeinRichard’sprocessorsimplyrestrictingittoabasicSWOTandcompetitoranalysis.

Atveryleastchallengeyourstrategy:isitasloganoragoalordoesithavesomedecentmarketintelligencebehindit?Andmoreimportantlyhaveyouhaditchallenged?


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20. FINDINGNEWSTRATEGICOPPORTUNITIES

http://succinctstories.wordpress.com/2012/10/08/finding-new-strategic-opportunities/

Takeyourselfoutofyourbusinessandexploretheindustryview

Weallsuffertunnelvisionwhenitcomestorunningourbusinesses.Evenworse,whenitcomestofindingtimetodosometrue“blueoceans”strategicthinking.

Toooftenourthinkingisconstrainedbylookingatourworldfromourownperspectiveratherthanthatofthecustomersandtheindustryeco-systemweexistin.

WeallgotagreatreminderofthiswhenKodakgotintomajorfinancialtroubleinJan2012.Howcouldsuchagiantwith1000+patentsindigitalphotographyscrewitupsobad.Mytake,theyfailedtoadapttheculture(attitude)ofthebusinesstothenewvaluechainandeco-systemthat

emergedintothenewdigitalage.

RealStrategy

Strategyismostprobablythemostmissusedwordinbusiness.Strategyisaboutunderstandingthelieoftheland,understandingthegeographyyouareabouttodobattlein,assessingtheenemiesstrengthsandweaknesseslookingforgapsandopportunitiestocaptureamarket.Itsnotaboutwhattodoeverydayoperatingyourbusiness–alahbusinessplanningandexecution.

MineyourexternalvaluechainforopportunitiesIfyouarelookingforinvestment,marketorchannelpartnersthebestplacetostartislookingatyourcustomersandendusers.Thenmapalloftheirsuppliers,customersandtheirinfluencersoutonahugemindmappedvaluechain.Documentingsuppliers,tosuppliers,tocustomersandsoon.Byreviewingalltheplayersonthismape.g.whoholdsthepowerofinfluence,whoownscriticalscarceresourcesandwhoismakingtheprofitetc.youwilluncoveraraftofpossibilities.

Includeinyourthinkingcompetitorsaswell,mostNZbusinessshyawayfromconversationswiththeircompetitorsletalonedoingdealswiththemtocollaborateintheglobalmarketplace.

LookformarkettrendsthatwilluncoverfuturechangeinyourindustryTakethetimetolookforcurrenttrendsacrossyourcompletevaluechainsoyoucanspothotspotsormarketopportunitiestotakeadvantageof.

SCANNING'YOUR'ECO'SYSTEM'

Customer'

Influencers'Other'

Suppliers'Suppliers'of'Suppliers'

Suppliers'of'Suppliers'of''Supplies'

TRENDS'

PROFIT'POOLS'

POWER'

OPPORTUNITIES'

Alterna(ve*Suppliers*


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21. STRATEGIESFORGROWTH

Togetmarkettraction–weneedtochooseONEstrategyanddoitwell…

Growthinabusinesscomesfromeithersellingmoretoourexistingcustomersorgettingmorecustomers.Eitherwayweneedtogainapositionofstrengthanddifferentiationtogrowourbusiness.

Inthejungleeconomy,ifwearenotgrowingandtakingsomeoneelse’scustomers,theywilltakeours.Equallysowehavefiniteresources,somustchooseasmalllistofthingstodoanddothemwell.

Howdoyougetto“ownyourcustomers”i.ebethesupplierofchoice?

Toomanybusinessesattemptplansthatareincompatiblewiththeirbalancesheet,theirpersonalcircumstanceorevenrealityorworststillapotpourriofeverypossiblestrategy.Myrecommendationischooseone.

StrategyPrimerQuestionsStrategicplanningisaboutexploringanddebatingoptionsinaniterativeloop.Beforeworkingouthowtowincustomermindshareyouneedtodefinewhatisyourtargetmarket.Akeystepinthisiterativecycleistodecidewherelong-termopportunitiesexist. Whatisyourlong-termmarket

opportunity?Haveyouexploredwhat’sgoingoninyourindustryecosystem?Whatfactsdoyouhavethatsupportyourmarketwillexistin2or5yearstime?

Whatisyoucompetitiveadvantageorpointofdifference?Isitatrulysustainablecompetitive

advantage?Doyouhavetheskillstodeliverthis?

Whatisyourstrategytomaximiseyourcompetitiveadvantage?

Nextyouneedtoworkouthowyouwillgetto“ownyourcustomersmind”,i.ebeginyourgrowth–tocreateachangeinthemarketplace.

Unfortunatelyintherealworld,wedonothaveunlimitedresources–sodespiteambitiousintentions,wedoneedtomakesomechoicesofwhatdowedofirstandwhattakespriority.MostSME’scanonlyaffordtoinvest(people&money)inonestrategyatatime.

StrategicPriorities&Restraints: Whatisyourkey

strength?Product,operationalexcellence(process)orcustomerintimacy

Whatisyourno.1priority?-MarketShareorProfitorRevenue(Prioritisetheseoptions)

Whatmarketsegmentsareyougoingtotakeonandinwhatorder?(geography,demographic,etc)

Haveyougotthemake/buysplitcorrect?Wheredoyouaddmostvaluetoyourclients&yourself(whowillyoupartnerwith).Aresomeofyourbusinessactivitiesamajordistractionandnotmakeyouanymoney?

WINTHERACEtoOWNYOURCUSTOMER’SMIND:–Chooseone

StrategyguruMichaelPorterwasofthebeliefthatyouonlyhavetwooptionstogainstrengthinamarketCostleadershiporDifferentiation.

Winningmarketreach&sharequick Freemium(giveyourproductora

cutdownproductawayforfree)–doalandgrabthenstartchargingorkickinalternativerevenuestreamslateregtrademe

Partnerwithlargeorganization–preferablycorporatechallengersratherthanthegiantthatalreadyhasthecustomer,astheycanupsellsomething“additional”tothem(yourproductorservice).NoteGiantsaretypicallytooarrogantanddonotneedyou

Merge–withothersmallplayerstoincreaseefficiencyandcustomerreach

Winthetechnology/productinnovationrace Createproductsthatothersdonot

haveandyourcustomerswilllustafter–thathaveamazingcustomerpullegkillerapps

YoumayneedtouseastrongIPstrategythatcannotbeworkedaround(tradesecret)andpatentsorsimplyjustobsoleteyourownproductswithnewonessopeoplecannotcopy(egApple,Microsoft)

Intheservicesspacethisraceisofteninfluencedwith“thoughtleadership”

Create/Findanewmarket Legislationchange Disruptivetechnology–newproduct

paradigmegMP3players–ipod Useexistingtechnologiesinanew

way

Winthecostrace Makeyourproductcheaperthanall

others.Organisationalandcostefficiencies.

Warning–makingproductscheaperdoesnotmeanstartapricewar.Pricewarsinmostcasesbecomearaceonwhocanholdtheirbreaththelongest.

Wintheheart–BRAND Buildabrandexperiencepeoplefall

inlovewith–thismayincludeserviceparadigm

Whatisyourstrategytocapturethemindofyourcustomers?–Isitoneoftheoneslistedaboveordoyouhaveanother?


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22. FOOLPROOF:DE-RISKINGNEWVENTURES

http://succinctstories.wordpress.com/2012/05/29/foolproof-de-risking-new-ventures/

Whetherit’sastart-uporaproductlineextension,nexttohavingtherightteamonboard,validatingyourmarketpriortodevelopingyourproductisthebestwaytoincreasetheprobabilityofyoursuccess.OftenIhearthecry“oh,thisdoesn’tapplytous”….“WedodisruptivetechnologylikeSteveJobs…“ourcustomersdon’tknowwhattheyneedtillweshowthem”.Trulysuccessfuldisruptivetechnologistsuseresearchtobackupandtunetheirvisionarythoughts.Theystudytheirtargetaudience’sbehaviourtothepointwheretheycancreatepowerfulproductinsightsbasedonacombinationofresearchandcreativitytode-risktheirinvestments.Withoutthisbehaviouralresearchyouaresimplyguessing.

It’snowonderwehavesuchahighfailureratewithcompaniesinthiscountrywhenyouhearfactslike–“only20%ofcompaniesapproachingMOVACforinvestmenthavecompletedmarketvalidation,whichisaperquisiteforustoinvest”-DionMortensen

85%ofthosecompletingmarketvalidationwillfundamentallychangethefunctionalityoftheirproduct,ultimatelycreatingaproductthatwillbemoreprofitableandactuallysell!

JennyDouchéhasjustreleasedherlatestbook“FoolProof–Howtofindandtestgreatbusinessopportunities”.

“Thiseasytoreadbookisfullofgreattipsandguides,itshouldbecompulsoryreadingforallnewventuresandproductmanagers”.

JennyhasincludedsomeinsightsfromNewZealandentrepreneurs(RodDrury’sXero,CampbellGower,Phil&Tedsbuggies,etc)andafewlocalinvestorswhohaveexperiencedthefruitfuloutcomeofperformingmarketvalidation.

Foolproofisaneasylightread,designedforentrepreneurs-2aeroplanetripsshouldhaveitreadwithnobullshitorbig

theories.Itwillbeoneofthosebooksthatyouwillreferbackto.

Unlikeotherbooksonthistopic,Jennyactuallygivesyouplentyofactionablecontent,ratherthanjusttheory,includinglistsofquestionsforallparticipantsofmarketvalidationincluding:targetendusers,distributors,marketinfluencesandenablers.Shecoversbothdeskresearchandengagingwithstakeholdergroups,includinghowtotalkwheninterviewingandsurveying.

Toomanyentrepreneursfailtolookatthewidermacroeconomicfactorsthatwillinfluencetheirbusinessbothnowandinthefuture.It’samazingwhatinsightsyoucangainfrommappingandstudyingyourmarketplace’svalueandsupplychainsalongwithcurrenttrends.(Note:valuechainmappingisoneofthekeyactivitieswedoinBusinessDominoes–strategyprogramme).Byperformingthistypeofresearch,youcansaveyourselftheembarrassmentofbeingblindsideddownthetrack,orworststillinvestingintheworld’sbestmousetrapthatnoonewilleverbuy.

Justbecausewhatwehavecreatedisfasterorbetterthantheexistingmarketalternative,itisnotarightofpassagetoeasysales.Ascreatorsofnewproducts,weeasilyforgetthelifeofaconsumer;wherewearefacedwithbetterandnewerproductsandservices,yetwechoosetoignorethemandusewhatweconsidereasy,safeandpredictable.

Clearlygettingthereisabalancebetween“nomarketvalidation”and“doingsomuchresearchyouneverdoanything”.Eitherextremeisgoingtobearecipeforfailure.

TIPsonMarketValidation:1. Undertakemarketvalidationbefore

undertakinganymajorinvestmentisanessentialriskmitigationtactic

2. Ifyouareseekinginvestment,doingmarketresearchwillputyouaheadofthepack

3. Dobothdeskandpersonalresearch–yes,talktopotentialcustomers

4. Mapoutyourmarketplace(valuechainandtrends),makesureyouarenotmissinganyopportunityortrendmerging–alotofthiscanbedonebydeskresearchandvalidatedbycontactingkeyindustrycommentators

5. Engagingkeystakeholdersintheindustryinmarketvalidationoftenbuildsloyalevangelistsforyouandyournewbusiness

6. Aquickprototypeorsketchcanhelpdiscussions

7. Marketvalidationisnotaone-offexercise,itisacrucialpartofimprovingyourbusinessandproductoveritslife

8. Ifyouaredevelopingdisruptivetechnologythenyouneedtobedoublysureofyourtargetaudience’s“pain”andmoreimportantlymotivationtochangebehaviourtoadoptyournewproduct.Dosomebehaviouralresearch.

9. Bewarnedifyouhavebeenintheindustryorareatargetuser–youdonotknowenough.

10. Doingmarketvalidationwilloftenopenyoureyestoabetterproductthantheoneyouhaveconceivedbyyourself.

11. BuyJenny’sbook


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23. DON”TCONFUSENETWORKINGWITHCARDSWAPPING

Networking Tips

Effectivenetworkingisoneofthebestwaystobuildyourbusinessyetsomanypeopledoitsowrong.

Thenumberonefailingbybusinesspeopleisthedelusionthat–cardswappingequalsnetworking.Cardswappingbenefitstwoparties–theprintingindustryandthecleaners.

Atyournextnetworkingeventspotthesepeople:

HomerSimpsons:Hangingoutwiththeirmatesandeatinganddrinking.–JustgotoabarStalkers:Houndingthemostfamouspersonintheroom–theywillnotrememberwhoyouareinthemorningDateHunters:chattinguptheprettypeople–thisworks(thisishowIfoundmybeautifulwife)butnotgoodforbuildingbusinessCardSharks:thrustingcardsintoeveryone’shand–measuringsuccessbythenumberofcardstheybringbacktotheoffice–toomanypeopleoperatelikethis

Sohowshouldyouapproachanetworkingevent?

Aimtomeet1-3newpeople:Thegoalofattendinganynetworkingeventshouldbetocommenceestablishmentof1to3newrelationships.Thereareplentyofnetworkingopportunities;youwillnotbuildanentirenetworkinoneevent.Arelationshipisbasedonknowingpeoplewellenoughsothatwhenyoucalltheminsixmonths’time,theywillrememberwhoyouare.Thisisneverdonewithsimplyswappingcardsandgivingthemyourelevatorpitch.Takeyourtimeandgettoknowthemandtheirbusiness.MygoalwhenIattendaconferenceistomakeonenewrealconnection.

PrepareyourElevatorpitch:Makesurethefirst60secsthatcomesoutofyourmouthdescribessomethingabouthowyousolveproblemsforyourcustomers–notaspeechaboutyouandyourtechnologyorcraft.Getoutsidehelpontestingyourelevatorpitch–lookatattendinganGMCPowerPitchingworkshop

Qualifyyouraudience:Makeanassessmentonpeople,iftheyarenotforyouandtheythrustacardinyourhand–puttheircardintoadifferentpocketanddumptheircardASAP.Ifthereissomethingofinterest,digdeeperandremembertoaskaboutthem.

Talktocompetitors:NZSME’sdonotworkwellwithcompetitors.Learntotalkaboutyourbusinesswithoutgivingawaythe‘secretsauce’.Exploreopportunitiesformergersandacquisitionsorjustplaincollaboration.

PostEvent:Followupwithanemailorcallinthenextdayorso–notfromtheothersideoftheroomorinthecarparkasitappearsdesperate!

Linkedin:Linkedin.comisapowerfulfreenetworkingtool.Aswellasprovidinganuptodatedatabaseofyournetwork,itmoreimportantlygivesyouaccesstoyournetwork’snetwork.Startwithabasicprofile

todayifyoudonotalreadyhaveone.Thebestusesoflinkedinare:(i)referencecheckingnewemployeesfromyournetwork,ratherthanthoselistedonthecv(ii)Gettingintroductionsintobusinesses(iii)accessingpotentialemployees,and(iv)participatinginonlineinterestgroupdiscussions.AninterestingfactisinUSA80%ofjobplacementsareinitiatedviaLinkedIn.

Groomandqualifyyournetwork:Takethetimetogroomandnurtureyourbestcontacts–useacontactscheduletomakesureyoustayontheirradar–passonlinkstorelevantinformationtothem.

Giveandyoushallreceive:Relationshipsdonothappenovernight,earnthetrustandrespectbeforeaskingfavours.


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24. ADVISORYGROUPS/BOARDS

Boards:ValueAddoraNecessaryOverhead?Thereisstillmystiqueandageneralmiss-understandingwhatrelevanceboardshaveforSME’s.Doyouhaveahighperformingboardoradvisors,inspiringyourbusiness? SMEbusinessownerscontinuetoshyawayfromestablishingormaximizingthevalueoftheirboardoradvisorygroup.Thesebusinessownersaremissingoutonthemostcost-effectivebusinesstools.Formany,itcouldwellbeathrowbackfromwhatappearstobeeraofdysfunctionalcorporateboardsi.e.thelackofgoodrolemodels.Forothers,perhapstheysimplydonotknowwhattheyaremissingouton.Sowhatcanyouexpectfromagreatadvisorygrouporboard?Greatboard’sbring:1. Valuetothecompany–improving

theperformance,beyondwhatwouldbeachievedwithoutthem

2. Awarenessofthefiduciaryresponsibilitiesandriskmanagement,butnotactingasapermanenthandbrakeonthebusiness

3. Freshthinking–challengingthenorm–creatinganewfutures,notjustrepeatingthewaytheydidinthepast

4. PersonalsupportandmotivationtotheCEO–owner,aswellasotherkey

executivesofyourcompany,keepingthemontracktoachievetheirgoals

5. A“radar”forproblems,withawillingnessandcapacitytoact,rollinguptheirsleevesasanimmediateresponseunitintimesofcrisis.

Yourboardneedstobethebestperforming,valueformoneyteaminyourbusiness.IfnotthenCHANGETHEM.StartwithanAdvisoryGroupandthenmigratetoaformalboardlateron.RelevanceforStart-upsIfyouhaveabusinessplan,thenyouarereadyforyourfirststepintogovernance,establishanadvisorygroupnow.WhyanAdvisoryGroupNotaboard?Experienceddirectorswillnotwanttosignuptobecomeaformaldirector,withouthavingagoodlookunderthehood.Asaformaldirectortheywillbefinanciallyliableforthecompany.Companylawsaysiftheadvisorygroup/boardactslikeaformalboarditisdeemedtobeone.Soyouneedtobecarefulhowitoperates.Butfromanoperationalsenseitisagreatfirststep.WheredoIfindthem?Askaroundyournetworks,astowhoaretheyusing.Lookforexperienceingrowingcompanies,nothugecompliancefocus.Googlethecandidates–seewhatpeoplesayaboutthem.Checkoutlinked-ingroupSpringboard(NewZealand)onlinked-in,thisisagroupofemergingNZDirectors.Askyouraccountant–lawyertorecommend:inmostcasesIwouldnot

recommendusingalawyeroraccountantasyourfirstboardmember,buttheywillhaveconnectionsandnetworksofgreatpeople.Withoutresearchyouwillendupwiththedirectorsandinvestorsyoudeserve!Checkthatyourprospectiveadvisoryboardmembers,haveagoodvaluesfitwithyouandwhatitisliketoworkwiththem.Gettwooutsideadvisors,soyoucandebatestuff,ratherthanfallingintothecommontrapofa“parent–child”relationship-simplydoingastheadvisorsays.Howoftentomeet:Iwouldsaymonthlyfor2-4hours–buthaveakickoffbriefingmeetingofafullday.MakesureyouprovideyourAGwithrelevantinformationatleast3daysbeforeameeting,soyoucanmaximiseyourtimetogetherPaythemorNot?Themedianbasednonexecdirectorsaretypicallypaid$32,000andchairs$54,000.Butformoststart-upsthisisunaffordableandinappropriate,certainlyprerevenue.Don’tfallintothistrap:ShareholdersAssociationchairmanBruceSheppardsaid(HeraldFeb2010)gooddirectorswereunderpaidbutasfewasonein10directorsfellintothisgroup.Mostotherswere“headnodders”or“habituallystupid”andwerenotworthpayingatall.Fullarticlehttp://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10625855Withpaymentyougetcommitment,evenifisnominal.Iwouldstartwithanominalbudgetedfee$600–$1200permonth.Ifitworksincreaseiteachyear.

Note:Somephilanthropicadvisorsmaybeboughtforsomefinefoodandgreatbottleofwine.Ifyouarereallyshortofcash,findafellowentrepreneuranddoaswapforservices.Warning:Donotgiveawayequityforpaymenttoadvisors–youarestuckwithshareholdersforever(orcloseto).Ifyoumustuseequitymakesureyouonlyissuestockoncompletionofactivitieseg0.X%perperiod.Ifit’snotworkinggetridofthem!SetupclearexpectationsoverwhatyouexpectfromyourAGandhaveregularreviews.Ifit’snotworkingfixitorgetnewmembers.

Makesureyoucreateawishlistforthecharacteristicsofyourmostwantedboardmemberandbeopentohowyoumeetit.

Makesureyouselectpeoplewho“get”businessesofyoursizeandculture.ExperienceontheboardofTelecomcouldwellbeahindrancetoyour$2Mayearturnovercompany.

Don’tsignlockedincontracts,iftheydonotworkyouneedtobeabletoquicklyexitthem.

Don’tpaybythehour,youneedtofeelcomfortabletherelationshipisnotbeingmeasuredbytheclock.

Recommendedreading:“ChangingGears”GoingfromkitchentabletotheboardroombyDavidIrvingisamustread.


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25. CONTACTUS

MarkRobothamGENERALMANAGERGROWTHMANAGEMENTCONSULTINGLTDmark@growthmanagement.co.nz

+6421618850

SUCC

INCT.CO.NZ

BACKGROUND:

• GENERALMANAGER• PRODUCTMARKETINGDIRECTOR• BUSINESSADVISOR– STRATEGY/PLANNING

• PITCHCOACH• CAPITALINVESTMENT- FINANCE• INTERNATIONALMARKETING• PRODUCTDEVELOPMENT• ELECTRONICS&S/WENG• CHINAMANUFACTURING/QUALITY

• BLOGGER:www.succinct.co.nzTIPSBLOG

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