How to be Entrepreneurial in 3 Steps

Step 1

Spot superior (sustainable profits) opportunities by identifying a real customer problem that is causing them pain (then they will pay for it), develop your solution and then sell it to everybody else. Protect it via patents or IP if required.

Step 2

Marshall the resources to take up the opportunity. Pick the people or partners capable of helping you take the opportunity. Don't compromise. Sell the opportunity and the strength of your team to investors to get the cash.

Step 3

Build the capability of your business to deliver the opportunity. Do this via trial and error pilots, learn from them quickly then go to the next stage - work at pace.

Every successful entrepreneur I have ever met follows this process - so learn from those who have been and done it.

Entrepreneurship, done!

Get the right people on the bus

Over the past 3 years I have watched with dismay the demise of a number of successful household named organisations. Some of these have been clients of mine in the past.

So what is the problem? Investors, including the city or VCs decide that the profits are not good enough so they change the CEO and or top team. They parachute in somebody with a reputation from outside the business or even the industry and they proceed to mess it up. How does it happen? Here is my take on it.

Creating success in one business does not mean that the model can be transferred directly to another. The context and culture will be different and the 'success' model may not fit or work. Profits decline and the CEO is changed once again and then costs are slashed, the culture destroyed and profits end up half of what they were in the first place.

You need to have someone running the business who really understands it and has a passion for it. This cannot be replaced by whizzo's with a Harvard MBA or track record with a completely different business. If you make the wrong hiring decision then the business can be screwed.

Very sad to see once great businesses on their knees. So make sure you get the right people on the bus......

A Key to Long Term Business Success - Balance Stakeholder Interests

At the start of another year it might be a good time to review the performance of your business from a different perspective.

In the long run successful businesses seek to balance the interests of their customers, employees and investors. Keeping them aligned is the job of business leaders.

So how did you do in 2010? If you want to find out ask these three questions:

Q1. How many of your staff have produced results beyond expectations and are real assets to your business?

Tip: Judge your people on the results they achieve, not whether you 'like them'.

Q2. What would a customer perception survey reveal about how your customers view your business?

Tip: Conduct a customer perception survey; see 'Doing the Business' Toolkit No. 16 or personally experience your own service by mystery shopping your business. Be warned you may get some shocks but that's the reason for doing it!

Q3. Are the investors happy with the returns they got in 2010 from their investment in the business?

Tip: Benchmark your business performance against your major competitors investor's returns over the past 5 years. Where is your business in the investor performance league table?

If all three questions get the thumbs up then you are on track for business success. If any fall short then make it a priority to deal with them ASAP in 2011.

If you need help then contact me.