Archive for category Execution
Big guys do not waste time
I have clients of all sizes, from guys pulling in barely enough to make their bills to those bringing in millions. The small guys are constantly calling with problems while the big guys rarely call. There are a few different reasons, but the biggest difference between the biggest and smallest guys is that the biggest know when to spend their time on the minutia and when to just walk away.
The big guys understand that time is money and that spending hours on saving $1 could be better spent on brining in $1000. Small guys are right in thinking that focusing on details will help them get ahead, but the problem usually stems from the fact that they do not how to take their focus and make it productive. The big guys know how to do this.
The bottom line is that the big guys do not waste time. They focus on solutions or work arounds and move on. They avoid situations that create more problems, and they avoid situations that will bog them down in more minutia. The focus is on the revenue drivers: what activities actually bring in the money. Any activities that are wasting money or not bringing it in either need to be optimized or dropped.
Think about your next activities: are they bringing in money? Are they driving the metrics that make you successful? If not, rethink your activities. Are they really necessary? Ultimately, you need to hit your goals and the focus needs to be on those activities driving towards those goals.
Cultural Decay Part 1: Part of the problem or part of the solution
Posted by Steve in Execution, Leadership on May 11, 2009
I just read an article by Donald Prader at http://www.jewishworldreview.com/0509/prager050609.php3
It is a political article. The title is “If you love America, Why Transform it.” Prader’s point is that if you love America you should not want to transform it, and those people that have been saying Tranform it (i.e. Obama and Democrats) really do not love America.
Sarcasm alert à What a wonderful statement!!! Obviously, if you really HATE America you would want to change it. Same thing must apply to a company: if you love a company, then no matter how bad things get, you should just keep doing the same thing. Maybe when bankruptcy happens, people will still pay you because you loved the company so much?
Prader also talks about the LEFT loving a “vision” of America more than the “reality” of America. He then asks how can someone love his country and want to remake or transform it. He goes on to equate the thinking with such people as Karl Marx and equating loving the future as anti-religion. Quite frankly, I find such narrow thinking very disappointing.
Obviously, Prader must be living in a different country. In the country I live in, we have an energy issue, health care issue, social security issue, terrorist issue, an unemployment/economy issue, and a number of other issues. Can these issues be resolved? I hope so. Can we just sit around and do nothing? No. That was tried and the issues are getting worse. Action is needed. That action will be change, transforming, remaking…whatever you want to call it.
Our country has a long history of transforming itself, remaking itself, and improving. What about the time after the Civil War, the Depression, post WWII, and throughout the last 30 years. I recall the Republicans under Reagan talking about changing Amerca. Prader and people that think like him do not admit there are problems that need fixing. Why? It could be that in his position he has none of these problems and cannot understand or imagine that someone else could. He probably thinks that all these issues of the last year have been faked and are not that big. Obviously, if we just let things go as they are, everything will be okay. Things will get back to normal, but they really are not that bad. Sorry, should have another “Sarcasm alert”.
These cultures of denial and then attack the changer persist in any company that needs change. Change for the sake of change is not good, but change for the sake of overcoming new obstacles is good. Whether or not people like Prader have an agenda depends on each case. Usually, in a company, it’s a power struggle, or a perceived power struggle. The way a change agent gets people to change is she shows them how the change can benefit them and how it can be done to their advantage.
Are you part of the solution or part of the problem? Don’t be like Mr. Prader. Be a change agent.
Learn from your mistakes
The hardest thing is NOT admitting a mistake. The hardest thing is learning from a mistake and improving.
Companies make mistakes all the time. What gets all the press is how they dodge admitting it is a mistake. Either they hope it goes away or they come out and admit they were wrong and are trying to improve. Most recently you see AIG not admitting how they handled the bonuses being a mistake. After congressional hearings and a lot of press uproar it has pretty much died down.
When I worked for Texas Instruments, they had a process for learning from mistakes. Essentially, we would first discuss the problem and the short term solution. Then, we would look to see if it was systemic and if a long term solution was needed. We would implement that long term solution, and finally, we would come back later and determine if it was corrected.
Unfortunately a lot of companies do not get beyond step 1: discuss the problem. The put in a bandaid fix (maybe) and then say that they cannot fix it because either its too big, not that important, or its our culture and so you should give up.
Those companies eventually fail.
TI is going to be around for a while. Once, a customer told me that the reason they bought from TI and paid premium prices (some of the highest in the business) was that we were consistently on time with the quality they needed.
Next time someone does not want to fix it in the long term ask them if it keeping customers who pay good prices is big enough, important enough, or part of the company culture.
Linked-In is the best for your professional image
Posted by Steve in Execution, For Job Seekers, Pitch on April 29, 2009
Determining where to start marketing online can be difficult. There are so many options now it can be mind-boggling. The approach is not to shotgun (unless you have a huge budget and time, which none of us really have). Instead, first identify your goal and the desired budget. Within those two parameters then consider the softer parameters of skill set, time capacity and deadline. Finally, weigh the pros and cons of being a participant on someone else’s site, being a contributor with your own presence on a community site, or authoring your own site.
Considering that I need to pick something that fits entrepreneurs, investors, and job seekers, does not require a big investment of time and money, and requires little talent, I have my short list of the following: LinkedIn and Plaxo. I do not include Facebook today, but that may change tomorrow.
My favorite is Linked-In at www.linkedin.com
The site is for professionals communicating to other professionals. You enter your professional history (essentially a resume) and then connect to others. You can endorse other people and use it to ask questions to get expert help.
The only way to have a conversation with someone is one of three ways: introduced by a mutual acquaintance (best), introduced by the computer, or to select them as a “friend” and hope they do not ignore you when they realize you are a stranger. The idea of being introduced by someone you both know is the same approach to getting the investor’s or the hiring manager’s attention. Since it matches what you are trying to achieve in the real world, I believe it is one of the best sites to have a presence.
There are different levels of membership from free to $200/month. Personal memberships are free but do not allow for introductions or membership in their OpenLink network (the ability to send messages to others). For that you have to buy a monthly membership that starts at 19.95/month…or do you? There is a “hidden” level of membership that is called a Personal Plus, and allows for a limited number of introductions and for you to be a member of the OpenLink network where you can receive messages and where you can search for other members. It is only $60 per year (or $5/month).
Why Linked-In and not some of the others? The brand is about professionals meeting other professionals to make professional connections. It is almost unique in that you cannot really talk about your hobbies, put up pictures of your pets, or make “shout-outs”. Other sites mix professional with personal so much that it seems to dilute everything to the personal slant. It is hard to take someone serious when they have the pictures of them getting drunk at a party or they show pictures of their friends getting drunk at a party.
You can also market yourself on Linked-In by answering the questions people pose (or look for people by posing questions). With it being a structured presentation of your professional self, you can use it as your personal site.
Of all the networking sites, for these reasons, Linked-In is the only site I recommend today for entrepreneurs, investors and job seekers.
The other sites really depend on what you are trying to do and your end game. Some are great for marketing in the entertainment space, or making personal connections. Others are excellent for searching for a job or leaders for your company. More on that tomorrow…
How can studying about investors and entrepreneurs be used?
Posted by Steve in Execution, Introduction, Pitch, Plan on April 13, 2009
Part 3 of 3.
Two weeks ago (Monday March 30, 2009), Bart Kemper asked how he could use this blog if he was not seeking investments or investors. Then and last week I pointed out:
1. I strive to provide information that in the right setting can open up more opportunities leading to more clients.
2. The information can be used to prepare the company for a merger, acquisition, sales, or other type of owner exit. All these elements make the company better and look better.
The third and final point is even simpler.
Just because you are not looking for investors does not mean you should forget about a business plan, or not have a good pitch, or not have a good strategy.
The idea is not to make the company just look better. It point is make the company actually be better, and to be able to effectively communicate that to outsiders. The 14 points are there to provide a guideline on the real qualities of a business that makes the business successful.
Each of these 14 points is not just useful for getting investors, but they are useful for growing the company. I will be writing not just about the high level stuff but also the low level details. How do you write a business plan? How do you write an executive summary? What are good interview questions?
For example, how could you use a well designed elevator pitch?
- Get investors.
- Get clients.
- Get a job.
Everyone at some point has been in a room where the audience is asked to each stand up and say something themselves. Most people are unprepared and give a rambling 20 seconds. There is nothing like standing up in this crowded environment and delivering a very clear, concise, and punchy elevator pitch. People will remember you. It will open up doors.
Keeping your branding package within budget
This should also be titled, when DIY (Do-it-yourself) comes in handy.
When it comes to creating the intial collateral package are seven things a typical business needs:
- Branding
- Color scheme for collateral
- Logo
- Presentation template (for PowerPoint, reports, and proposals)
- Web site (everyone needs one today)
- Business cards (everyone needs one today)
- Bio photo
From the investor point of view, if you look professional and very, very simple then you are probably spending your money wisely. There is one caveat: this only works if you are in the initial stages. If you say you have been around for a while, selling a lot of product, but your marketing looks like it was done on a low budget, the investor will still wonder about the credibility.
There is nothing wrong with telling the investor that part of the budget will go to improving the brand image.
In the meantime, how does one approach this?
Web site: look for a prepackaged site that you can fill in elements. These are called templates, and you can get one for under $100.00. You may be able to hire a small firm that can use one of these sites and fill in the elements for you. The prepackaged site should even suggest the typography. The colors used on this package will lead to…
Color scheme for collateral: Use the web site colors.
Business cards: You can use the web site colors, but the problem is to lay it out on a small piece of paper. Instead, use simple black and white and put it together on decent card stock. Definitely use a company like overnightprints.com or Vistaprint.com. They will also have templates for the business cards. Word of advice: two fonts. Use one for text and one fancy font for the company name or logo. Once again, if you are not a professional designer, keep it simple to keep it good.
Presentation template: use the website colors, and a very simple layout. For presentations you can use the templates in PowerPoint. They look good and get the point across without become the point.
Branding: One of the first elements of branding is to be consistent. By using the same color schemes, fonts, themes through the collateral you will develop a brand for your business. It is very basic but consistency works.
Bio photo: In the beginning, unless you are entertainment, this is not that important. You could go to one of those photo places and see if they can take a portrait photo and then provide you a color corrected web and print version. If all they do is provide a portrait photo then do that. A good portrait photo goes a long way. Avoid being too sexy like in a Glamour Shots photograph. You want to look professional.
Logo: Entrepreneurs love to play with this all the time and it can often really hurt them. The simplest logo is either a graphic of the letters of your business name, an image of the name of your business (if it is a noun), or an image that represents the activity that your business performs. Start with the letters as that is the simplest.
Cash considerations are important. When you cannot afford to hire a professional, do not try to be that professional. Instead, use common sense and keep things simple. Find simple solutions and they will work. These can be used to sell your products and services. Investors want to see that money and time is spent wisely and produces results. When you do this, you are much more credible to investors (and potential customers).
When DIY may be detrimental
Yesterday, I wrote about how sometimes do-it-yourself is detrimental. I referred to Seth Godin’s blog post that you should go out there and be your own graphic designer. He wrote about four common areas. I argued against it, and today, I am going to add three more areas that people often DIY and why it can be a problem. All three areas are related to the development of the brand:Branding: What is your brand and how do you present it? There are many self-help books out there that can make you very educated on brand; however, this is often painful trial and error. However, the essense of most businesses is their marketing, and the essence of marketing is developing a brand and selling that brand. If you are going to spend time learning something, then this would be it.
Hiring an expert for a couple of hours to give you a brand checkup would be ideal. Unfortunately, it is hard to get them to just stick to a couple of hours. Maybe I should address that in another post?
Look and feel: This is an element of the brand, but is specifically the physical aspects of the brand. What is the color scheme and layout that would best represent you? How can you have a consistent scheme between all your collateral that says you know what you are doing? What does the packaging look like? Good graphic designers and artists understand color theory: what colors work together and what emotions the colors represent. Every heard the saying, “I don’t know why I don’t like it, I just don’t?” That is what happens when someone looks at a bad color scheme.
Logo: Every business needs a decent logo design. Many people try these themselves and just miss the boat. If you can afford it, get a professional to help you. This can be really expensive, but worth it. Why is it hard? The best logos are often the simplest, and many times, someone from outside the business, thinking outside of the box can identify the simplest and coolest logo.
I do agree with him that some research is necessary to develop skills. For example, if presenting material on a website is going to be integral then you should learn a little bit about web design and typography.
Branding, Color scheme and logo are more advanced than presentations, web sites, business cards, and bio photos. However, if developed together, a designer could come up with a common theme that can be used on all collateral. This usually saves money and time; and often lends more credibility when getting customers. However, even the designer needs guidance. This is where research into branding comes in handy and where hiring an expert to guide you (tutor you) would be money well spent.
What about those that are very cash poor and are trying to attract investors? How do you avoid spending too much? That is for tomorrow…
Professional vs. DIY
Professionals are called professionals for two reasons. First, they do the job better than most people. Second, other people call them professionals and pay them because of the first reason.
Many people will tell you to “save money” and “do it yourself”. In some instances, this is very sound advice; especially when you have no cash. However, it is often taken too far and becomes counter-productive by destroying credibility and turning away the target audience. The end result looks amateurish and buyers (customers and investors) walk away.
Today, I read on Seth Godin’s blog (see the CONNECTIONS section) his article titled: Why aren’t you (really) good at graphic design?
His premise is this: Today, business professionals are expected to have professional looking presentations and collateral. However, because of today’s “easy” software, instead of hiring someone you can do it yourself. You will not be as good as a professional but you will be “really good” and that is good enough.
I have seen “really good” and usually it is not good enough. The problem with “really good” is that it is purely subjective and often based on the other idea, “I just do not want to spend the cash.” Standards and expectations are lowered by the business owners. The problem is that customers do not lower them and expect professional. The customers go elsewhere.
When I was the marketing director of an animation festival and executive producer for a startup animation studio we saw many portfolios, many artists and graphic designers. There is a big difference between DIY and professional. There are many levels of professional and wide range of prices.
Maybe you cannot afford world-class, but maybe you can afford something. You need to make the right decisions on when to DIY and when to find a qualified person within your budget. When you approach a professional, tell them what you want and your budget. Don’t hide the budget but figure out what you would pay for what you want. If it is not enough, they will tell you. In my expereicne, if the designer does not have a budget they will usually overbid. You keep it under budget by giving them a budget.
Godin identifies the four big things people try to DIY and suggest you can too: PowerPoint presentations, web sites, business cards, and bio photos. It is just not that easy to do all four. Here is my response:
Presentations in Power-Point: Absolutely DIY. Why? The best ones today are simple with no animation. They just look good. You could hire someone to develop a color template and then use that template over and over. This would be branding development (see tomorrow’s post).
Web site: If it is very simple and you are satisfied with out of the box, then by all means go DIY. Otherwise, hire someone with talent. Amateur sites look that way. There is a lot more to it than meets the eye. If your business depends on look and presentation, then you have to spend the time and money on a web site.
Business Cards: If you do a simple black and white design or use one of the online pre-designed cards, then DIY. Otherwise, hire a designer. When it comes to printing them, save yourself a lot of time and trouble and just get them printed. At overnightprints.com you can get 100 double sided color cards (standard size) for $14.95. You can get 1000 for $49.95. It is worth it. If you print them and cut them yourself it will look amateurish. $50 is a sushi dinner for two. Skip one of those and get business cards.
Bio photo: Anyone can take a photograph. Having someone take a good photograph and then knowing how to color correct them well for presenting on the web and in print (which are different from each other) is another story. You could probably take a lot of decent pictures of yourself. It is a challenge for me. If you can take the time to figure out to color correct it then do it; otherwise ask a professional.
Godin missed a few more items that many people also DIY which maybe they should not. I will write more on that topic tomorrow.
Momentum
All investors want to see that your company has momentum. This means that you are consistently moving forward, making milestones, setting schedules, conducting meetings, selling products, and opening up new avenues. They want to see evidence of teamwork…essentially, a real company.
Momentum is the tendency of a person or group to repeat recent success. (Dictionary.com)
Are you repeating success?
Ask yourself two questions:
- What did we accomplish last week?
- What do we know today that we did not know at the beginning of last week?
If the answer is “nothing” to either question, then you have a momentum problem.
Some very simple steps:
- Set some Goals or, whether they can be done today, this week, this month or take several months.
- Identify what objectives need to be accomplished to hit those goals.
- Break down each objective into smaller tasks.
- Identify how those tasks will get done, who will do them and when they will get done.
- Write everything down.
- Distribute it to the team.
- What tasks will you and your team do this week?
- Get focused on those tasks.
- Follow-up on what everyone is doing.
Every Monday morning, repeat this by re-examining what you set down before. Celebrate team accomplishments.
You will notice after a while that your business now has momentum. Investors will see this.