Entrepreneurs Don't Plan To Fail, They Fail To Plan


 

Most businesses fail. I hate to be so blunt, but this is the truth. The only thing that varies is just how many businesses fail.

According to research from the University of Tennessee, 44% of businesses fail within the first three years. And within certain sectors, like information (which includes most technology companies), 63% fail within 3 years, or in Retail, 53% fail within 36 months.

On the other hand, according to research from Bradley University, 70% to 80% of new businesses fail within their first year. Bradley University also found that half of those who survive the first year will fail within the next four years.

And the number one cause of this failure? According to Dun & Bradstreet, the primary cause is lack of business planning.

Yes, entrepreneurs and business owners don't plan to fail. Rather, they fail to plan (which causes them to fail).

In my view, there are two types of business plans; (1) the one you develop when you start your business, and (2) the one you develop to grow your business.

When you start your company, the purpose of your business plan is to ensure you have fully thought through your venture.

Among other things, this plan includes significant market research. It assesses your market size to ensure the opportunity is big enough. It analyzes customer segments to confirm that customer needs match your company's proposed product and/or service offerings. And it analyzes the competition to determine how your company will position itself and how you will most effectively compete.

From a strategic standpoint, the business plan must document your marketing plan (how you will secure customers), your human resources plan (who you will hire) and your operations plan (what key milestones you will accomplish and when).

When you're done, your business plan will confirm your market opportunity and give you a roadmap to follow. It will also be required should you wish to gain funding from investors and lenders.

Now, once your business is up-and-running, you still need a business plan in order to succeed. This is the second type of business plan, and I refer to this type of plan as a "strategic plan." I term it as such because this type of plan requires much less research (since you already know who your customers are, the market fundamentals, and lots of information about your competitors). Rather, the focus of this plan is strategy.

Specifically, this plan needs to identify precisely:

1. Where you want your company to be in five years


2. What you need to accomplish within the next year to progress you to that point, and


3. What your strategy is to complete your key milestones in the next 12 months

In determining the optimal strategies, you need to consider your company's strengths, and opportunities that can best leverage them. If you don't take time to do this, you become too tactical. That is, you continue to use the same tactics that have gotten you to the point you are at. And oftentimes, the strategy and tactics that got you where you are today are NOT the strategy and tactics that will get you to the next level.

So, spend time figuring out the best strategies to follow. The good news is that you've already proven you can execute on strategies (which is what got you to where you are now).

After you figure out the big picture opportunities to go after (which often fall into the categories of further penetrating your existing market, going after a new market, or creating new products/services for existing and/or new markets), you need to revisit the three core strategies you developed in your initial business plan.

To start, you need to modify your marketing plan. Importantly, your marketing plan should always be adding new marketing venues or channels (e.g., direct mail, print, radio, search engine optimization, etc.) as the more channels you have, the more customers you will get and the less risk you have of one channel losing effectiveness. For example, think about businesses who used to get all or the majority of their customers from the yellow pages; many of these companies have perished.

Next, consider your human resources strategy. What new people will you need to hire to accomplish your key goals in the coming years? In what areas will you need people, and what skill sets must they have?

And finally, you need to develop your operations strategy. Figure out what key tasks and milestones you need to accomplish over the next year and break them down into smaller projects that you and your team must accomplish. And then create a master schedule showing who, how and when these projects will be completed (I like using a Gantt chart to do this).

Creating a business plan when you start your company, and annually creating strategic plans to grow your company is absolutely essential to your success. Research proves it. So, if you want to avoid failure, and achieve maximum success, make sure you are continuously creating, updating and following your business and strategic plans.

 

Suggested Resource: You just learned the importance of choosing the right strategies to build your company. Including this information in your strategic plan is critical to growing an ultra-successful business. What else should you include in your current growth or strategic plan? Click here to find out.

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Innovation Capacity: Do You Have It in Your Business?


 

The most prized, but often overlooked asset of any organization is its capacity to change and innovate.

This can be measured by the premium investors will pay to buy into  the business.

Slow moving and growing companies are valued at very low multiples to their revenues and cash flows, while those possessive of strong brands and proprietary technology (ideally both!), and the capacity to build more of these assets are valued at very high (sometimes infinite!) multiples to theirs.

Investors realize that innovation capacity empowers that most valued coin of the business realm: Sustainable Competitive Advantage.

We live in a world where anything and everything we do can and is mimicked, copied, knocked off...

...and thus always under severe threat is our ability to efficiently attract and secure new customers , and more profoundly to sell and service those customers at price points where we can actually make a profit.

The logic is succinct: if we don’t constantly innovate and just get better, eventually, inevitably we will lose our competitive advantage and in turn lose money.

Now, “innovation” can be a scary word.

It conjures images of hotshot Silicon Valley technologists - of engineers, scientists, and programmers.

But while for sure technological prowess is a key component of innovation, it is not the only one. 

Innovation, best thought of as simply introducing new ideas to change things for the better, can be imparted on
any aspect of a business.

On the refreshing of its brand.

On the vigor of its culture.

On the "customer effectiveness" of its products and services.

For most companies, the easiest-to-grab and “make happen” innovations lie in process improvements.

Little things like moving from “wet” to electronic signatures with tools like Docusign, or seamlessly connecting disparate data platforms through integration tools like Zapier, or migrating business documents from desktops to hosted platforms like Google Spreadsheets, Dropbox, etc.

These little process improvements build upon one another, and as they do we have more capacity and confidence to take on big initiatives like brand and culture refreshing and the launching of new products and services.

Now, here is where many of us might feel that we just don’t have the creativity, the charisma, the technical chops to effectively innovate and grow in big ways like this.

Luckily, here is where the flip side of that brutally competitive world we all live in comes to our aid.

You see, while all of our “best stuff” is out there for all to see and mimic, so is everyone else's!

We don’t need to come up with all of the great ideas, we can just “borrow” from what our best competitors are doing and really from any business whose stuff we like.

And no it does not mean it is okay to plagiarize.

But it is a foolish, lazy or unnecessarily prideful executive that does not take advantage of the wealth of innovation ideas available to them at the click of a button.

It is even better than that.

Not only do we not need to come up with all of the big ideas, we don’t even need to implement them!

We can hire a marketing firm to refresh our logo and brand identity.

A change management firm to refresh our culture.

Tech. developers to design and launch our new products.

We just need to always vigilantly and ruthlessly look everywhere and anywhere in our business where things can be done better.

And then act. 

Slowly but surely our innovation “muscles” will grow stronger and leaner and as they do...

...our ability to grow and make money will be both more effortless and sustainable.

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Arnie and Vin: May We See the Likes of Them Again


 

The passing this week of Arnold Palmer at 87, and the retirement from broadcasting of Vin Scully at 88, is a moment to reflect on the time, world, and value system these men represented, and on the wisdoms from their careers that can be applied to our modern life and business journeys.

Arnold Palmer and Vin Scully - their names are synonymous with “old school” character and decency.

These were men highly comfortable with who they were and what they represented to their adoring fans.

And this heartfelt character and decency was wonderfully magnified by so many of those fans having their first exposure to them as impressionable youngsters, or as deeply from stories told by their fathers and grandfathers.

Yes, we wanted to see in them these old school qualities, which they embodied to begin with, and the more we found them when we looked, the more developed they became in them.

Is a great business brand any different?  When we communicate our “best business self," and as it is positively received, this in turn encourages more of whatever these best qualities happen to be to grow in our business, and so on and so on.

And then by just “keep on keeping on” - as Arnie and Vin did for over 60+ years - the high virtues of consistency, longevity, reliability, and trust are washed over our brand.

Now, with these virtues alone Messrs. Palmer and Scully would be great men.

What made them legends was being insanely great at their chosen fields.

While many only remember Arnold Palmer in his grandfatherly later years, in his prime he was the best golfer in the world, winning four Masters, two British Opens, a US open, and over 90 other professional tournaments.

Well into his 80s Vin Scully still remains universally regarded as the best broadcaster in baseball - uniquely working alone and doing both the play-by-play and "color" game analysis in his perfectly paced and wonderfully melodious story telling way.

Now for the rest of us that fall rings below these world class talent levels, let’s first find and focus upon those areas where our talents are most competitively advantaged and then have faith and confidence in the truism that “hard work beats talent when talent doesn't work hard.

It goes deeper than this, though.

Beyond character, beyond longevity, beyond talent, the reason why the passing of Arnold Palmer and the retirement of Vin Scully touches so many is because they represent a certain and sometimes sadly seemingly gone for good Mid-Twentieth Century America hopefulness and innocence.

A hopefulness that the future will be even be better than the past.

An innocence that the world and the people in it are at their essence good and well meaning.

These are at the heart of the childhood imaginings we all once had, and that Arnold Palmer and Vin Scully maintained throughout their long and storied lives and careers.

Rest in peace, Mr. Palmer. And rest well, Mr. Scully.

Let’s best honor them with more spring in our steps, cadence in our speech, and hopefulness and innocence in our hearts.

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Business Growth: If They Can Do It, We Can Too


 

Above all else, business leaders are tasked with solving the fundamental challenge of growth.

Growth in the form of increased revenues and profits, of more and better assets, and of more organizational “innovation” capacity and results.

This is extremely challenging work.

The challenge starts at the top, with “revenue regression" - the statistical tendency for most companies to grow as the economy does - just a few percentage points per the average in most developed economies.

Then there is the unrelenting “bottom line” pressure brought on by technology and globalization - the “competitors are everywhere and available to buyers at a click of a button” phenomenon that presses down prices and margins.

And in between lies the leadership challenge of innovation.

How do we "keep up" and "ahead" in all aspects of our business?

With the creativity and efficacy of our marketing and branding, with new product and service development, with an invigorated and inspired company culture?

And oh yes, for smaller businesses how do we do all this in the face of limited capital, of the "hamster wheel" pressure to just live to fight another day?

But while the challenges of growth are everywhere, so are the answers to overcome these challenges everywhere too.

And most of them can be found in one of the buckets of inspiration, information, and collaboration.

Inspiration. Every day in the financial and business news are awesome examples of business leaders “getting it done” - reporting record revenue and profit growth, rolling out new products and services, raising tens of millions of dollars, selling their companies for many multiples of that, and the list goes on.

Our first reaction to hearing of this success should simply be: If they can do it, we can too.

Here is an easy suggestion: Let’s consume a lot less of the gossipy soap opera called political news...

...and a lot more business news: tales of professional success as is featured on CNBC, in the Wall Street Journal, in Fortune, Fast Company, Entrepreneur, and Inc. Magazines, and on countless websites, podcasts and social media postings.

And as we get inspired by it all, we naturally get better and more informed.

You see, while I am proud of my UCLA MBA, a 21st Century MBA gets re-earned each and every business day.

How great is this? Any and every needed growth idea for any business is there for the having if we just take the time to look for it in the places mentioned above.

So with just a bit more inspiration and innovation our results will improve.

But for the kind of growth that gets us featured on CNBC, or on the cover of Inc., for that we need to stir in the magical element of collaboration, so wonderfully defined as "the action of working with someone to produce or create something."

Yes, great collaboration starts with “the action,” the recognition that business is not a spectator sport nor a game of perfect so let’s get our hands dirty and “fail forward” while...

...“Working with someone,” recognizing that no matter our technological progress we are all at our essence hunter-gatherer primates that thrive tribally, with those tribes being of our fellow employees, our customers, vendors, partners, service providers, our community...

And with them, we “produce or create something.”

We market. We sell. We innovate. We bring beautiful things into the world.

We make money where before there was none.

Inspiration. Information. Collaboration.

So many business leaders do these and more and grow and win every day.

We can too.

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Growthink Innovation Series: Opportunities in Smart Wearables


 

CCS Insights forecasts that 411 million smart wearable devices, worth a staggering $34 billion, will be sold in 2020 (up from 274 million this year).

These wearables include eyewear (97 million predicted to be sold in 2020), hearables (9 million est.), fitness and wellness wristbands (164 million), wearable cameras (25 million), tokens, clip-ons, jewelry, and smart garments (6 million), and smartwatches (110 million).

These devices and their associated technologies and software applications are already transforming industries as diverse as healthcare, telecommunications, entertainment, gaming, and more.

Webinar Invitation: Opportunities in Smart Wearables

You’re invited to listen to a webinar recording at This Link, hosted by Growthink co-Founder and Managing Partner Jay Turo, where a select group of wearable entrepreneurs and investors share how they and their companies are winning in this incredibly dynamic space.

Panelists include:

  • Mr. David Park, Director of Digital Services at Hewlett-Packard Enterprise.  David is the Mobility Strategist for the U.S. Public Sector market for HP Enterprise Services. In his role, he is responsible for building for building and growing mobility in the U.S. Public Sector arena. He is actively accountable for driving strategic mobility initiatives while building key industry partner and relationships.  In his words, he focuses on the intersection of “Mobile + Digital + Apps + IoT + Wearables + UX + Cloud + Enterprise + Monetization + Government + Agile.”
  • Mr. Isy Goldwasser, CEO of thync. Thync is creating a new category of wearable products based on advanced neuroscience, Thync is dedicated to giving people access to the power of their minds. Based in Silicon Valley, the company has raised over $13 million in funding, including from Khosla Ventures.
  • Mr. David Mays, CEO of Walker Tracker. Walker Tracker provides best-in-class walking and activity challenges for corporations, organizations, municipalities, and schools. From Fortune 100 companies to mid-sized business, Walker Tracker powers engaging, socially oriented activity programs for both wireless and manual entry pedometers

On the web conference, our panelists will share:

  • Why the wearables market is growing so rapidly right now and where it will go from here
  • What is most important for a successful wearables customer experience - great hardware, software, the application itself, something else?
  • Who are the early consumer and business adopters in wearables and what is important to them?
  • Which specific companies / entrepreneurs are out there that smart investors should really be watching?
  • And much, much more!

Recording Link

Please listen to the webinar recording via the link below:  

https://attendee.gotowebinar.com/register/7474891639709337090

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The Five Most Common Objections & How to Overcome Them


 

Whether you are trying to sell a prospective customer on buying your product, a prospective investor in funding you, or a prospective partner in doing business together, you will encounter and will have to overcome objections.

Importantly, you should plan for these objections beforehand. How? By expecting them, and trying to preempt them.

Here are the five universal objections for which you should be prepared.

Objection #1: I'm too busy


This makes it hard to even get your foot in the door in the first place. At the advertisement level, people will skim over your ad and never commit to focusing on and reading it. You've got to show prospects fast that what you're offering is worth their time.

The solution is to get their attention. Tease them with something, promise something, use memorable messages, and/or give prospects value up front.

Importantly, the better you understand who your customer is and can speak to their specific needs, the better you will do in getting their attention and getting them to spend time considering your offer.

Objection #2: Why do I need you?


Particularly if prospects are not actively seeking the product or service you offer, you must show them why they need it. Show them what life can be like with your solution - how it solves a key need or pain.

Sometimes you even need to put them in pain, if they don't know or think they are in pain. For example, while your prospects may be happy with their CPA firm, a message that stated "learn the 3 ways your CPA firm is probably costing you thousands of dollars each year" will make them think they do have a pain/problem and get their attention.

Objection #3: I don't have the money/the price is too high


This objection comes up earlier than you'd think. It's partly because people and companies are both more cost-conscious these days, and partly from people's aversion to spending more money on something at all. So "I don't have the money" is their excuse to bail before getting too invested in the decision-making process.

The solution here is to show prospects the value of what they are getting. Will your product or service enhance their lives, save them money in the future, position them to be more successful, etc.? Let them know the answer to this question!

Likewise, if the prospect is considering an alternative solution to your company which is less expensive, you need to show why the best decision is to go with you.

Objection #4: I'm not sure I believe you

People are skeptical, and don't believe everything you advertise or say. They want to know you're for real and they want to see proof that your product or service does what you say.

Show them you're legitimate by letting them know your credentials, seeing your work, knowing your clientele or how long you've been in business, and also that you're honest, have integrity, and really care.

One of the best ways to prove you can get results is showing testimonials from other customers. This is why "before and after" pictures are used in most weight loss commercials. This can be done with many products.

Other things you can do to overcome skepticism include offering money back guarantees and simple return policies.

Objection #5: Let me think about it/I need to speak with my partner/manager/etc.

Sometimes prospects legitimately need to think about a decision. Or they need to discuss it with someone else. With regards to the latter, ask questions from the beginning to determine if there's another decision-maker. And if so, bring that other decision-maker into the conversation earlier so you can "sell" both decision-makers at once (rather than having to do it twice).

With regards to the prospect requiring time to consider the decision, make sure to follow-up with them while their making that decision. That doesn't mean calling or emailing every hour. But rather periodically checking in on them. Importantly, find reasons to check in. For example, maybe you read about something in the news that you think they'd find interesting. If so, call or email them with the piece of news. When you do, there's no need to even bring up the sale you want to close. Rather, focus on helping them and staying in touch, and each time you do, you'll move closer to securing the sale.

Getting new customers is one of the hardest things a business must do. By considering the objections prospective customer have, and preparing for them (via adjusting your marketing materials and training your sales team), you will more successfully attract new customers. This can and will give you a competitive advantage, and allow you to grow a successful company.

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The Most Important Time of Year Just Started...


 

[Click Here to listen to my September Webinar on the “7 Keys to Business Plan Success”]

Happy September! For many of us, this week is a turning of the page - from the slower, vacation and family-focused summer months - to the full-on business sprint to the end of the year.

In financial markets, the window between Labor Day and Thanksgiving is often referred to as "Capital-Raising Season," as it is a very active time for companies and investors to connect, to diligence each other, and to do deals.

I call it the "No Excuses" time of year.

Summer is over, the holidays are far away, tax season further, so now is the time to get deals done - growth financings, strategic partnerships, big new customer sales, key new hires you name it - if a mission critical deal is to be done, this is the time of year to do it.

You see, good deal makers get good deals done. Great dealmakers get great deals done fast.

So let’s all set a goal this fall to do twice the number of deals, in half the time, while maintaining and even improving quality. Here's how:

#5. Use the 20% Rule. In a previous post, I described The 20% Rule, whereby improving four key business processes by just 20% each leads to results doubling.

Simply identify four components of your deal-making process - for example 1) marketing-to-lead conversion 2) lead-to-proposal conversion 3) proposal-to-sale conversion and 4) repurchase rate, and then work to improve each by just 20%.

I run through the math here, with the net result of revenue increasing by 2.4X via these “cascading” 20% improvements.

#4. Build a One Month “Micro Plan.” While longer time horizons - 1, 3, 5 years - are powerful and necessary for more “global” business and strategic planning - for many mission critical projects shorter timeframes can be invigorating and catalytic.

For example, let’s look at how to raise capital in one month, a process that is not unusual to stretch out for six months, a year, or longer. To get it done in one month would require:

i. the business plan and all investor presentation materials to be completed in a week to ten days;
ii. a well vetted and relationship-based prospective investor assembled in parallel;
iii. contact with / promotion made to these investors within 7-10 days after completion of the plan; 
iv. detailed diligence provided and talked through with those showing interest within an additional 7-10 days; and, 
v. respectful yet urgency - driven “closing” done with the most interested prospective parties over just a few days.

Is this an “aspirational” timeline? Sure, but whether or not we actually get it done this fast the act of setting a timeline like this and then working like heck to meet it is in itself transformative.

And you just might surprise yourself and raise money far faster than you thought possible!

#3. Enlist Help. In modern business the old aphorism of “Many Hands Make Little Work” needs to be updated with the caveats that “Many Well Led Hands get High Quality, Important Work Done Fast.

It is so awesome that modern executives have with just a click of a button access to high quality, on-demand resources of all types: marketing copywriters, graphic and website designers, telemarketing sales help, contract fulfillment and customer service and the list goes on and on...

...for any business process there is quite likely an outsourced provider that can do it better, faster, and cheaper than in-house.

The key is having the know-how to source the right vendors and then leading them such that they seamlessly work together as to “de facto” become in their aggregate part of a full-time, in house team.

Hard to pull off? Well, if you feel this way, then hire an outsourced firm to manage the outsourcers!

This may seem like a Dilbertian Skit, but the reality is that the tools of virtual communication and collaboration are now so good that building a fully outsourced, on demand work model like this often makes far better business sense than the old “all under one roof” W-2 model.

#2. Work Harder. There are actually 168 hours in a week, not 40, and by working both longer hours ourselves along with orchestrating a global team per the above, we can get things done four times as fast as under the old "9 to 5" model.

I like to re-frame working longer hours as a blessing, as the vast majority of people just don't have the opportunity to work hard on challenging and remunerative projects like those of us in the Knowledge Economy.

And oh yeah, in addition to the “it is its own reward” nature of hard work, just plain old outworking the competition is the most tried and true strategy of winning deals in multiple bidder/vendor dynamics.

#1. Recognize that There are No Rules. There are no longer any rules whatsoever as to how long things should take.

Like Amazon making deliveries in 2 hours or less, Uber bringing a driver to your door in a few minutes, and Google giving us detailed answers to the most esoteric and niche questions in just a few milliseconds, the great technologists and innovators among us are constantly resetting the frame as to what fast is.

Let’s bring this “speed sensitivity” to our businesses these next two months.

Identify those areas where incremental (20%!) improvements can have a big cumulative effect, design “micro plans” to make those improvements, get help everywhere and anywhere, work hard, hard, hard, and let go of any pre-conceived notions as to how long things should take.

Do all this and we can rename this “No Excuses” season as the one of “Big Business Breakthroughs” for all of us!

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Learning from the High Flyers, Part Two


 

Last week, I wrote about how any business - no matter how "Old School" - can benefit via emulating the strategies of "High Flying" companies in industries like virtual reality, wearables, 3D printing, autonomous driving, and more.

One reader whose opinion I respect wrote back..."Jay, loved the post and agree with the sentiment, but can you make it a bit more actionable? Perhaps offer some specific “high flying” ideas and examples applicable right away to companies in slower growth industries and markets?"

Of course!

Here are four critical business domains - financing, sales, organization design and goal setting where the high-flyers get it right:

Financing. Most companies in high flying industries raise money (and a lot of it!) on an ongoing basis.

Like Uber raising $8.7 billion over 7 years.

Or Airbnb raising $2.3 billion over 8.

Or Dropbox raising $607 million over 9.

They keep raising money because money buys speed. Speed of product development, of brand-building, of customer acquisition, of team-building and talent aggregation.

Now, for how long will they continue to do it?

For as long as they are in business.

Quite simply, investor promotion is a mission-critical process that should be undertaken by every company of ambition on an ongoing and continuous basis.

For smaller, less "glamorous" companies, look at it this way - if you go out and ask for money, you might surprise yourself and raise it. And if you can't, it's a canary in the coal mine - flagging needing to be fixed problems with your strategic model, your management execution, or both.

Sales.  Over the past 15+ years, advising hundreds of companies across diverse industries, I have seen a consistent, disturbing trend: The older, more "established" a business is, the less enthusiastic, inspirational, and “Big Deal Effective” is its sales approach and execution.

Yes, any sales team for any business, no matter the industry, would instantly perform a LOT better by just emulating the "Messianic Enthusiasm" of the high flyers.

Well, you may say, if my business, my industry, my product was as exciting as theirs, then I would be more enthusiastic too!

Hogwash!

Enthusiasm, at its heart, is
a choice. Let's have our salespeople be as enthusiastic as those at the High Flyers and watch results improve right away.

Organization Design. When it comes to how that "Collection of Humans" that make up how a modern business is organized, long gone and never to return are the days of all a companies' people being W-2 employees working under a common roof.

Beyond a “virtual” workforce, beyond utilizing overseas development partners, best practices around modern organization design include "Scrum-like" reporting structures, all calls being done as video calls, always on chat, in-person meetings conducted standing up, no landline phones, "e-mail free" days of the week, and the complete elimination of office environments altogether.

Of course, not all of these approaches are appropriate for every business, but if your company is not growing then why not try everything and anything so that it does?

This is the high-flying mindset - to never be complacent or "me too," but instead to strive for efficiency and creativity in all aspects of how a company is led and managed.  

Goal Setting: High flying companies set big and exciting goals, design bold plans to reach them, and then organizationally work, work, work to make them so.

Compare this with the approach at too many older line businesses. They set goals like “growing 5% next year” or “hiring a new salesperson” or “redesigning the email newsletter.”

Please.
In the famous words of Daniel Burnham - “Make no little plans; they have no magic to stir men's blood.

Dream a little. Push the growth plan right to that edge of “Hot Air.”

My experience is that we are usually pleasantly surprised both by how close we come to reaching those “stretch” goals, and as importantly how much just going out on a limb a bit builds “elan” and confidence in the entrepreneur and the organization.

Financing, Sales, Organization Design, Planning.

Do like the high flyers in these business domains and soon enough your company will be one of them, too.

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Learning from the Business High-Flyers


 

Earlier this month, I moderated a webinar panel focused on technology and entrepreneurial opportunities in Virtual Reality, a market sector growing at over 100% per year, and transforming industries as diverse as medicine, real estate, entertainment, gaming, and more.

Driven by five amazing panelists from the worlds of entertainment, software, healthcare, and venture capital, it was an inspirational and thought-provoking look at a market space brimming with opportunity, possibility, and bullishness.

It was also the first in a series that over the next few months I will be hosting featuring entrepreneurs and investors from some of the world’s hottest market and technology sectors, including 3D printing, drones, artificial intelligence, technology wearables, autonomous driving, and more.

I am doing this because first, it is simply exciting and inspiring to visit with innovators - folks who "connect the dots" between technological change and business opportunity.

And as an investor, I know that the only way to earn outsized profits is to identify businesses early, before they go through their "Hockey Stick" growth phase, and most of these kinds of companies are to be found in fast growth industries like those listed above.

But as importantly, I am hosting these webinars for those of us who do NOT work in high-flying sectors, but who can benefit tremendously from the type and quality of innovation thinking and strategic planning as done in them.

Thinking, planning, and doing that is fresher. More opportunities-filled and possibilities rich.

More easily embracing of new technologies, not just for their core customer value propositions, but also for internal business processes, team building, communication, collaboration, and more.

As I wrote in my Olympics Post last week, we must always be vigilant to maintain this "always innovating" mindset, especially as we and our businesses age and mature.

Unfortunately, too often the media and the world wants us to believe that breakout business success is only for the chosen few - for the young technologists, for the geographically advantaged. For startups.

But this just isn't true.

Breakout success is available to any business, no matter how young or old, no matter its industry or market, so long as its leaders have the guts and the competitive spirit to do whatever it takes to grow their companies.

And a huge part of doing whatever it takes is letting go of the conventional wisdom that so suffocates too many older businesses...

...and instead learning from and emulating innovators who are dreaming and doing big, breakout business things.

The best entrepreneurs and executives in high-flying sectors are exposed daily to the best and latest technologies, to the most creative business thinking and planning, and are infused with the most unlimited sense of business possibility and opportunity.

Let’s learn from and be inspired by them.

And let’s think, do, and dream big things in our businesses like them.

So in the months ahead keep a look out for your invitation to meet these awesome innovators.

And maybe, just maybe, a little of their growth magic will rub off on your business too.

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4 Step System for Rapidly Training New Hires


 

In my last essay, I discussed the three benefits of using outsourced workers (cost savings, reducing overhead, getting work done while you sleep). And then I gave you tips for finding and selecting the right outsourced provides.

In this essay, I'll lay out my system for rapidly training these new hires (it also works for new in-house and/or full-time hires).

Before you start the training


Before you begin their training, take a few minutes to break down the work to be completed into a list of steps, or even a process map (a simple, visual flow chart of how the process will go). As a manager, your job is to create these processes and coach your team to implement them and report the results back to you.

If something goes wrong, it's either because they did not follow the process correctly as you spelled it out -- or there is something less effective about your process to correct. Listing all the steps and putting them in the right order will also clarify your thoughts and give you a guide or agenda to follow when training them.

The simple system for rapid training

Step #1: Explain


This is where you take the time to describe the work to your virtual assistant or outsourced person. Show them the list of action items or an overview of the process. A written summary coupled with a verbal explanation is usually the most thorough way to do this.

Tell them what the task is called (for easy reference later on), what it accomplishes, why it is
important, who will need to do it and when, and how it is to be done, step by step. The
more details you can give, the better, because they will grow to understand you and
your company goals and will be able to handle more things for you later on without
having to ask a ton of questions.

Also, understanding your business model, your customers, and your purpose will help them make more informed decisions along the way -- subtle differences that can turn good work into greatness.

Step #2: Demonstrate


People learn better by seeing an example of how something is supposed to be done. This will teach them better than the longest explanation. Demonstrations can be done in different ways:

1. In person. Example: Demonstrating how to fold and stuff envelopes.

2. On the phone, via webinar. Via phone or webinar you can tell or show a virtual person how to do something.

3. Via video. if you show someone something via a webinar, record the webinar. That way, the next time you need to train someone, they can simply watch the video rather than requiring your time to train them.

4. Hypotheticals. In this case, you would give a few "if-then" scenarios to your hire and tell them what to do or say depending on what happens.

For example, you might write in an email to your hire, "Call Joe Contractor and ask him if the work is about 2/3rds of the way done. If it is, ask him for a range of days and times for me to meet him to do a walkthrough. If not, ask him when he expects it to be and call him back that day."

Step #3: Practice


After learning how to do a task, the hire must then attempt it on their own under your supervision. It's important that you monitor their work for a while until you are certain that it is being done correctly. Otherwise, neither of you will know if it needs improvement.

Find a way to watch them in action or to see the results of their actions. This might be hard for some of you, but let them fail. It is least distracting and demotivating for you to observe the entire process and save your comments for the end.

The whole point of training is for them to get used to the whole process on their own. NOW is the time for them to make mistakes. Hopefully you budgeted enough time for them to practice things a few times and get it right before crunch time.

The way to monitor them could be watching them in person, listening on the phone, or reviewing a finished product of some sort, like a design or written work.

Step #4: Feedback (Positive and Negative)

This is the part of training where you help them to improve at their job by pointing out things that could be done differently or better. I prefer to use the "Feedback Sandwich" approach, in which you tell them what they could do better in between two compliments so it's not harsh or overly negative.

For example, you could say:

    (Compliment) "Julie, this mail looks really good. You somehow found a way to fold the
    letters in just the right places so that they fit inside an envelope perfectly."

    (Critique) "You know, I read once that the better lined up the stamp is on the front of the envelope, the more people respond. Would you mind making sure they are all put on
    straight from now on?"

    (Compliment) "Thank you so much. That, plus the handwritten address, which looks so
    personalized I'd think it was coming from my mother, makes these mailers perfect."


Once you have given your feedback, the training cycle begins all over again. Your feedback
is their new explanation (Step #1). You may demonstrate it again if you feel you need to (Step #2), and have them practice it again (Step #3), until you decide that the results are good enough.

A Trained Assassin

When you have decided that your hire is capable of performing the task consistently on their own, they are now officially trained. Be sure to congratulate them on learning the task, and thank them for making your life easier.

And lastly, this rapid training system is not just something to use when they are first hired.

If at any time their performance falls behind, or you want to help them take one of their skill sets to the next level, or you think of something new for them to do, just follow these 4 simple steps again.

 

Suggested Resource: If you don't outsource, you can't compete. The math is simple...if your competitors are outsourcing and only pay $X to complete a task, and you pay $3X, $5X or $10X, your competitors will eat your lunch. You simply must outsource to stay competitive. Outsource the right way using Growthink's Outsourcing Formula. Learn more by clicking here.

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