The path of entrepreneurship through acquisition

Not all entrepreneurs start their journey from a garage; some entrepreneurs decide to jumpstart the process and follow the entrepreneurship by acquisition path.

This is not a made-up term. As a matter of fact, top-level universities and business schools like the Harvard Business School, Columbia University, The University of Chicago, and Duke University, among many others, offer Entrepreneurship by Acquisition in their main MBA curricula.

The truth is that you don’t really need to have a brilliant new idea or a unique opportunity to become an entrepreneur. Some people prefer to look for an existing business that already has the available resources and assets and then scale it or do a pivot or bring the company to a better position than from where it was before. Acquisition entrepreneurship is a good option for those who want to put their advanced entrepreneurial skills into good use from the get-go because they can spend more time on implementation and putting things into motion rather than be stuck on conceptualisation, trial-and-error, and ascertaining the business environment.

Is it the right path for you?

This was the route that Mobile Skips Owner and Managing Director Jacob Spencer took, who acquired the business from the original owners. He said, “Whether choosing to start a business from scratch or acquiring an established business, both have their relative pros and cons, usually quite different from the other. In my case, I chose acquisition, as the option best suited my strengths and weaknesses.”

“Before making this decision, I spent quite some time identifying and listing clearly what I needed (and wanted) in a business to acquire—with fundamentals like valuation and profit a given. I then spent the lion share of my time on the non-financial attributes that would complement my experience and skills. The first challenge then presented itself: a very limited amount of acquirable businesses that fit my detailed list of requirements…there were none. So, the first lesson was prioritising the list so that the right compromises could be made,” Jacob continued.

While buying a company may seem less risky than creating a start-up from zero and then building it, there are still varied difficulties to face for those who choose this path. One of these challenges is looking for the right business that corresponds to the needs, wants, capacity and capability of the entrepreneur.

To successfully acquire a business, would-be business owners must be able to:

1.)    Do a proper search for the right business to acquire

This is a crucial phase in acquiring a business. According to Damian Blumenkranc, who has founded and sold businesses before like Creativa Videos and now taking the entrepreneurship by acquisition path, recently acquiring Sunset, a concrete precast factory in Melbourne, “The first challenge, and it is not a small one, is to find a business you are comfortable with to buy and run and close a deal.” It has to be done properly, checking into the background of prospective companies you want to buy, their profitability, and other factors qualitative that are important to you.

2.)    Review or come up with a good proposal and negotiate

When you have done proper research and preliminary due diligence, you can then prepare an offer and negotiate all the terms of the deal. It is critical to try to get the whole picture of where the company currently stands and what is important for the current owner for this transaction.

Another important factor in acquiring a business is having the capital needed to invest in the company. Here are a few options when it comes to financing the business:

• Direct investment – you put your own resources to invest as capital to acquire the assets or ownership of an enterprise. This is usually done without an intermediary or broker.

• Loans from banks – you apply for a business acquisition loan which you can use to acquire an existing company, buy a franchise or buy out your business partner.

• Search funds – if you have limited resources for capital, you can look for other investors to pool funds into acquiring and financing a business.

3.)    Take the reins and lead the transition of the company

The success of the acquisition does not end with the signing of the agreement. As Damian stated, “That is just the beginning. I would say the second big challenge of buying a running small business is that the business won't wait for you to adapt, learn and take over. You, as a foreign entity, need to catch up quickly and find your place in the new business. It is like jumping in the cockpit of a commercial plane in mid-flight and taking over the controls without causing too much turbulence.”

Once the deal is done and the sale is closed, immerse yourself in the company, engage with your internal and external stakeholders and review your plans and the changes needed to implement. You may need to reassure your new employees and customers, present a plan and work towards adapting your team, systems and processes.

Lessons learned

Damian shared the lessons he learned in every stage of the process. “For the search stage, I would say, you must have real clarity of the parameters of the business you are looking for (i.e., industry, size, markets, financials, structure, capital requirement, etc). For the deal stage, be as clear and specific in the letter of offer as you can regarding the deal – from what type of contract you will expect to use to even specific guarantees you will expect to have. If you have investors, keep in constant communication with them, and set clear expectations of the type of shareholders agreement you will want to sign. Finally, for the handover stage, make a good 90-day plan, grab every key aspect of the business, such as people, cash, occupational health & safety, marketing, sales, and manufacturing, and set a weekly plan for 15 days to 90 days with all the things you want to do for each area of interest. This will help you manage the workflow, prioritise and ensure that you don't drop the ball on something critical to the business.”

He added, “To be able to launch and build a brand that existed before, the first thing for me is to understand the history and heritage of the brand, do nothing until we totally get it and understand the market and consumers well. Once we feel comfortable that we understand and get the brand, it is time to plan the strategy for the next few years.”

The rewards of entrepreneurship through acquisition

Despite the challenges, struggles and difficulties, the whole experience and the results can be rewarding. “One of the significant rewards is that instead of having to start from scratch, you can immediately grow the business and make it more profitable, experiments and small changes can be meaningful from day one compared to a startup where you need to build momentum first. With a running business, you might be able to make small adjustments and get significant rewards quicker,” Damian pointed out.

Similarly, Jacob also finds his journey of entrepreneurship through acquisition satisfying. “The benefit of the acquisition is that much of the hard work proving out the product or service model had been achieved. But much like buying a house vs building one from scratch, some things needed remodelling, renovating and even rebuilding. When I bought Mobile Skips, much of what we could see and review was in great shape, but some elements needed to be rebuilt to enable our skip bin hire to be scaled. I realised these unforeseen things seem to be more normal than not and having available capital to deal with them (and expecting some issues) meant we dealt with them quickly, getting us back on track and growing the business with limited disruption. Having enough capital and resilience to ride the bumps in the early stages ensured we weren’t snagged down early on.”

“My most enjoyable part of the acquisition was having an established group of customers we could learn from and quickly improve our skip hire offer. This meant we were able to do some great research early on and update the service offering, making it even better and getting instant feedback from our customer base. This helped drive more sales quickly and also built loyalty with our customer group by listening and reacting to their feedback. Happy and loyal customers are a huge part of the acquisition valuation. I’ve thoroughly enjoyed my journey with Mobile Skips since the acquisition almost 5 years ago. I hope these small experience shares somehow contribute to your journey as well,” Jacob shared.

Share with us your experience on entrepreneurship through acquisition, if you have any, or drop a question in the comments section below if you are contemplating acquiring a business.

Ways of streamlining your business

As your business grows, you will find that tasks increase, files pile up, materials (and dust) gather and more things need your attention. Some items take longer to turn around, need several documents and require to deal with a lot of people. When work gets more complicated and unproductive, maybe it’s time to review your business and see where you need to streamline and simplify things.

Streamlining items and systems means you declutter objects and remove unnecessary steps so that you can cut down on wastage and use resources wisely. You can use modern technology and techniques to make your organisation more efficient than before. How to do that? Take a look at a few suggestions on how to simplify different aspects of your business, whether they are physical objects or processes.

Focus on your core products and services

When you try to expand your business, the temptation to do many other things that may no longer be part of your core products or services is high. Instead of doing so many things within your business, it is better to separate them into different ventures and let each focus on its strong components. Pay more attention to the quality over quantity of work you do. Eliminate factors that are not essential to your business but take a lot of time, resources, and energy from you and your team.

Outsource certain tasks

For you to be able to focus on the core of your business, outsource the components that are not your expertise. Which part of your business can you farm out to experts? Is it design, finance, IT, engineering, PR, marketing or delivery? Outsourcing allows you to have lesser things to think about, do what you’re best at, and reduce cost. 

Take out unnecessary steps in processes

From hiring to finance to procurement to operations to generating reports, review if there are steps that are not very essential to the processes within your enterprise. Go through your workflow and check the gaps and bumps that may hinder more than help accomplish a particular task. If you need checks and balances, you can put in systems that will enable you to monitor and generate reports without having to go through extra steps and assign too many people.

Remove redundancies

Check for any redundant positions, tasks, items, or machines. There may be too many forms to fill out. While back-ups are necessary, you can always come up with techniques and strategies to do this without adding another layer in your process or extra task to do to get work done. See if there are any overlap of roles and work. The leaner and simpler things are, the easier and more efficient you accomplish your goals.

Shift to electronic copies

Do you have piles of paper stacked on your desk? Is it difficult to find an important document among the folders kept on your shelf? Shift to electronic copies and cut down on paper usage. This way, you not only minimise your expenses but you also help save the planet. Be sure to have a system on how you organise files to make it easy to find. When it comes to streamlining, also review your physical space if it is conducive for work or if there is too much clutter that sometimes affects the way people do their job.

Automate your systems

Take advantage of modern technology and see the available software in the market that can help you in your business. You can consult an expert to check which part of your venture you can automate and make things faster and more efficient. Focus on the portion where you spend more time and workforce so you can ease the flow of processes.

Reduce delays

Maybe there are things where you can communicate online or electronically so that you don’t need to spend more time on the road or be physically present in meetings. If you can make things faster or lessen the amount of time you need to spend on menial tasks, find ways to reduce delays. Cut down on your travel time and do meetings more efficiently.

When you have streamlined your business, review it from time to time so that you can adjust and refine the changes you have instituted. No need to complicate things when you can do them more simply. In the end, you can even be more productive while saving some of your energy and resources.

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When to partner with a competitor

It may not be commonplace to find competitors partnering with each other, but it is also not a rare case. Besides, such collaboration only lasts for a certain period and is not expected to be done in the long-term.

However, there are benefits you can get by working with a competition, although it may also pose some risks. But if you have a common goal in mind, then doing so may mean you have to set aside your differences and cooperate until you achieve what you both want to attain. Just make sure that you keep your trade secrets close to your chest as certain circumstances may call for it.

During times of crisis

A crisis, tragedy or disaster, such as the global pandemic we are currently experiencing, are few instances when you need to put two minds together until both your businesses can surpass such difficulty. Oftentimes, several companies in the same industry come together to cooperate so that they can survive and navigate through a crisis.

For innovation in the industry

Competition happens not just among businesses belonging in the same field but also among various industries. With the rise of online and app-based ventures, physical stores or those with physical products experience a dent on their performance. Other industries are left behind because of the fast technological advancements. Partnering with a competitor to revive your industry or innovate it is a good move to help your business withstand the rising trend of other new industries.

When expanding the market

It is often difficult to enter a new market or expand your existing one to new territories. To save you on your effort and resources, as doing so may require a huge risk, partnering with a business similar to yours may be a wise thing to do in certain situations.

To complement each other’s business

While you are competitors, you may have different strengths and unique selling propositions that one may have over the other. You may complement each other’s businesses by putting on the table something that the other one does not have.

In facing a bigger competitor

When a huge corporation dominates a certain market, small businesses sometimes suffer as they only get a meagre portion of the pie. They need to join forces so that they can increase their market share and have a better competing power against the big player in the field.

For a common charitable cause

Businesses usually help out a sector that is related to their brand or operation. Construction firms would want to build homes to the homeless or schools to communities in need. Enterprises that are into children may help in education. Competing companies can work together to help a particular sector of society, hoping to provide better conditions to that group.

It may be an opportunity to find a circumstance where you can partner with a competitor. But then, think it over thoroughly, do a lot of research, discuss it with your team and analyse the situation carefully. There are benefits with working with a competitor but know the risks. Be sure that you do it to advance your business and help you get closer to your vision and goals.

Tips on doing niche marketing

Getting exposure to as many people as possible may be a good thing. But it can take so much time, effort and resources on your part. Meanwhile, if you target a specific market, it will take less but may produce the same or better results.

Niche marketing is a strategy where you direct your initiatives towards a target market and customise your messages and design to their preference. It is different from mass marketing, wherein you convey you communicate to a bigger audience. On the other hand, niche marketing focuses on the segment which has the most need and most interest in your product or service.

To make sure that your niche marketing strategies are effective and successful, here are a few tips that may help your business.

Get the demographics of your market and segmentize them

Surveys, feedback forms or interviews are just a few methods of getting information about your customers. It’s always helpful to gather data, observe first-hand and analyse the numbers to set the foundation of your strategies. Know the age, location, occupation and other information on the demographics of your clientele. From the statistics generated, divide your market into segments so you can decide the best group to target for your niche marketing.

Research on the behaviours and psyche of your target market

Delve deeper into your target segment and know their behaviours, hobbies and preferences. These will help outline your strategies on how to approach and communicate with your market. Understanding their needs and pain points and seeing the connection as to how your products or services address such will enable you to tailor-fit your marketing campaign towards them.

Maintain a database of your customers from that niche

Put together a database of your clients belonging to your target segment and communicate with them regularly. Better yet, provide an avenue for them to form into a community. It will enable you to strengthen your relationship with your target market and encourage loyalty to your brand.

Choose the right communication platform or channel

Once you have determined your target market’s mindset and behaviour, select the right platform or channel where you will communicate to them. Although bags are the same, targeting a high-end and matured market is unlike communicating to a young group. The idea with niche marketing is that you don’t have to be all over the place. Instead, you can focus more on where you can be most visible to your intended audience.

Craft your messages and design for the target segment

When you have fully known and understood that market segment you want to aim, craft your messaging and design your marketing materials as to how they will appeal to them the most. Doing so is like communicating to them directly. Adjust your messaging and design according to the platform you are using. Ads in written format should not be the same with broadcast media. Similarly, direct emails are drafted differently from press releases and social media posts.

Follow-up, follow-up, follow-up

Sustain your initiatives by scheduling properly your activities. If you did an exclusive event for your target market, sent out an email or launched an online campaign, make sure that you do a follow-up. With so many things going on in a single day, people may tend to forget about your brand. Make your presence felt in a way that your product or service becomes more relevant to them.

If you even know better the market you want to target, you can be even more specific on your action points. Don’t forget to evaluate how effective your niche marketing is and if it’s something that you should consider doing for your brand for the long-term.

Benefits of business collaborations

Companies, big or small, sometimes work together for a common goal that will mutually benefit each party involved. Collaborations are not uncommon among brands and organisations, especially if this can lead to increased knowledge and sales. Such partnerships may occur through joint projects in developing new products and services, enhanced processes, training and upskilling of people, sales and marketing initiatives and so much more.

Before you get into any form of collaboration, you first have to assess your current state and upcoming plans vis-à-vis to that of the prospective partner organisations. Conduct a SWOT analysis of your business and the other participating businesses. How will this benefit you and your company? What will be the division of labour? How are you going to work out the partnership? What are the stipulations in the collaboration?

One thing to note is that you need to do your thorough research and risk assessment before committing to a collaboration. Make sure that things are documented in black and white so that you have something to refer to in the planning, implementation, monitoring and evaluation of the business relationship. But if such cooperation between businesses become a huge success, the benefits to your venture can be enormous.

Shared learnings

Collaboration may lead to the sharing of new information, best practices and additional knowledge about your industry and current trends that can be useful to the development of your business. It is when you go outside the box and expand your horizons that you will get to see so much more things to learn that can help you and your venture grow significantly.

Enhanced human capital

The best training for your people is to provide them with on-hand training and exposure, one that collaboration with other businesses can bring to the table. It can widen their horizon and allow them to think outside what you consider as a norm in your organisation. This will enhance their capability as they get to experience new things in a different setting.

Improved products and services

Whether your partner with other businesses to develop a new product or service, combine the best parts of your respective offerings or enhance what is already available, such cooperation will allow you to offer more to your customers. In effect, it will attract additional prospects to your business and grow your clientele.

Increased promotions and brand value

Some collaborations may be limited to joint promotions or marketing tactics. Nevertheless, partnering with another brand, especially a stronger one, may increase the value of your name and expand your reach. It will widen your audience and market as you will be able to communicate to your collaborators’ network. In the long run, it will be helpful to your brand, not only for name recall but also for its trustworthiness.

Financial gains

With experienced people, better offerings and attractive promotions, collaborations may be able to help boost your sales and increase your profit. Successful partnerships may even benefit your bottom line in the long-term as more and more people will look at it as a sign that your business is one that they can depend on. Moreover, the resources and effort that you will put into collaborations vis-à-vis the advantages you will gain will be more cost-efficient as compared to you doing it all by yourself.

Competitive edge

During and after a successful collaboration, all the learnings and improvements that your venture will obtain will give you a competitive edge over other players in the field as you move forward on your entrepreneurial journey. Other businesses get into some form of cooperation with other companies, even for a short period, to use it as a launching pad for more endeavours.

There are surely great wins when you work with other business entities. There are also risks involved and failed collaborations may even have an adverse impact, so do it sparingly and with caution. But if you work towards making it successful, you will reap the fruits of your labour a hundredfold. They may not necessarily come immediately or in monetary form, but it will provide your organisation with many more insights that you will not normally get when you work on your own.

How to pivot a business

During interesting times, such as a global pandemic and an economic crisis, some industries and businesses suffer due to little, no or negative growth. It often happens during normal days as well, when the market does not seem to be enthusiastic about a brand or certain products or offerings. There are several moments when a business hits a plateau or reaches a downward slope. When this occurs, maybe it’s time to revisit your goals and if you need to do a pivot.

Pivoting is an option to save your business from eventual failure. If you do it at the right time and proper strategy, you may be able to even grow your venture. While it may not be easy to do a turn, especially if it’s something that may not be aligned to your core products or services, it is an opportunity to test your flexibility and resourcefulness.

The question is how do you pivot? How do you decide what kind of new offer should you be doing? How do you get out of the mould and institute changes in your business?

Assess your talents and assets

Have an inventory of your assets and talents. Maybe you can use your raw materials and turn them into something else that is unique, affordable and marketable. What are your other skills and talents? You can probably turn a business out of it. If you have hobbies and you are good at them, you can consider creating a business out of those. See how your other resources and talents can respond to a need in society. Some businesses are born out of necessity, while others are built because of ingenuity, generating new interest from the public.

Look at opportunities for new demand

Feel the pulse of your customers and see what keeps them preoccupied or if there’s anything that can make things easier for them. The best way to pivot is to create new demand for your market. Find gaps in society and evaluate how you will be able to fill that gap. Opportunities usually come in areas where there’s most need, so keep your eyes open for them. Some of them may be unrelated to your current offering. Look beyond what you currently have and view the scenario from the eyes of your current and prospective clientele.

Explore the digital world

Take advantage of modern technology. If you can bring your business to the realm of the digital space, you can probably come up with tons of possibilities to pivot your business. Transactions are done faster online, and with the occurrence of the pandemic, more and more industries are turning to the virtual world to deliver the services they can offer.

Innovate your business model or offerings

Is your business model still working? Are your products and services in demand at this time? If the answer to both questions is “no”, then probably it’s time to rethink your strategies and approach. Brainstorm with your team and assess how you can innovate to pivot your venture. You can bring your products a notch higher by innovating or introducing something novel to your clients.

When your business hits a wall, find ways how you can go over or around it. Look into how businesses that have successfully pivoted did it and learn from their best practices. There are many ways to pivot. Be creative. Consider carefully various alternatives and plan your next steps towards achieving your goal.

An entrepreneur’s daily checklist

The life of an entrepreneur is demanding. It means facing risks, meeting challenges head-on, taking responsibility for lives reliant on you, and dedicating yourself to bring the business forward towards your goals. If you take a look at it, it is not an easy role, but the emotional, financial and social gains of its success are tremendous.

While you keep your eye on the vision, which may be a long-term one, you need to break down your goals into tasks to make them achievable. To do so, a good form of discipline, order and commitment can help you get through your day-to-day undertakings and obligations. Successful entrepreneurs have daily checklists and routines that enable them to manage the tasks on hand while not losing sight of the result.

Here are some of the things that effective business owners do. Of course, you have to tailor-fit your checklist towards your needs and priorities. More importantly, you have to be flexible. You can always adjust your checklist depending on something that suddenly props up or on its relevance to your over-arching goals. But they can be overwhelming sometimes and you may want to get some ideas on what to do daily.

Plan your schedule at least a day ahead

You wake up with a fresh mind if you already have an idea of how to go about your day. The best option is to plan. As they say, “take care of your tomorrow today.” Managing a team or a business effectively starts with managing yourself, which includes your schedules and activities. Visualise how your day will unfold and consider the things which you can control and those you can’t. See if you have any pending or unaccomplished tasks that you have to carry over the next day so that you will be able to tick it off your checklist of to-dos.

Think of what you want to achieve on this day and work around it

What are your top priorities? What do you need to achieve for the day? Is it meeting a sales target, approving new product designs or mentoring your understudy? Whatever big or medium goals you want to accomplish, break them down into doable tasks for the day, such as calling a prospective client or visiting a supplier’s workshop. And think also beyond work. Include your personal goals and those for your family and community.

Reflect and meditate

Always allocate time for reflection or meditation. It may be starting your day with prayer or simply breathing in and out while driving to work. Do something that you find therapeutic. And while you’re at it, reflect about your inner self, on what makes you happy and contented, and of what you want to achieve. 

Nourish yourself and take care of your body

Take good care of yourself so that you can take care of others. As a business owner, you have a team to supervise and lead. Many entrepreneurs are also parents, so they also have to oversee their household’s needs and make sure their family is okay. Be sure that you are physically, mentally and emotionally able. Eat breakfast and don’t skip meals. Exercise or do activities to keep your body fit and healthy. De-stress when you fell burdened or burnt out. Get enough sleep and rest when your body shows signs of tiredness.

Talk to important people in your life

Whether it’s a morning conversation with your loved one, bedtime storytelling with your kids, brief updates from your managers, meeting with your client or one-on-one forum with a fellow EO member, make sure that you allow time to talk with important persons in your lives. They may be family members, colleagues, team members, fellow entrepreneurs, customers or friends who can provide you with valuable insights, inspire you to keep going or encourage you to be the best that you can be.

Clear your inbox

In this digital age, it is also important to keep your gadgets and devices free from clutter. Delete unnecessary files. Make it a habit to clear your inbox regularly. You can either allot a schedule when you can check your emails or set your account to only notify you of urgent messages or from important people.

Clean and arrange your desk

Having a clean environment has a positive effect on one’s mood and mental state. Some people find order amidst the clutter, but it’s still best to have some system and arrangement in place even when your desk may be full of papers and other things. Separate things that need your immediate attention and put them in an area that can easily be seen. During the day, take a few minutes arranging your stuff and throw what needs to be in the wastebasket.

Develop yourself

Listen to a TED talk podcast or read a book. You can enrol yourself in a short class and allot an hour or two for practice or study. Indulge in your hobby or do a creative activity. Always include an item in your to-do list that can contribute to your personal or professional growth and development. It may not be too big or noble. It can be a simple thing that will add value to yourself.

Inspire others

Do something where you can inspire or help others. It may be a simple smile to a person you meet on the street, a tap on your team member’s shoulder, doing a podcast, writing a short sweet note to your life partner or family member, or a pep talk to a community of entrepreneurs. Each one of us can uplift somebody else. Include that in your daily checklist and see how it can do wonders to your day.

There may be days when you may not be able to accomplish a lot of things in your checklist. That is fine. Don’t be too hard on yourself. But if it keeps dragging on, see what causes the slump. Review your list if they are still relevant or if they are truly attainable. And if you need help from people around you, do not hesitate to let them know about it.

Skydiving your way to the entrepreneurial path

Skydiving is an activity that may not be for everyone. People with a fear of heights may be averse to jump from a high altitude into the unknown. It takes knowledge, presence of mind and courage for one to do so. This is what many business owners stand out as they are ready to take the risk just to achieve the goal they have in mind.

If you love the thrill, curious about how it feels or want to tick an item off in your bucket list, then you may want to try what it’s like to skydive. It takes commitment, adherence to safety measures and a form of discipline to make the entire experience a success. And while you’re at it, learn to apply some lessons from this activity into running your business.

Calculate the risks and face them bravely

Going up thousands of feet from the ground and hurling yourself off the plane is something that should not be taken lightly. You have to prepare yourself mentally, emotionally and physically before doing your first jump from the air. Experts take note of the weather, wind velocity, height and other essential factors that can make the skydive a successful one.

Putting your efforts, time and resources in building and running a business mean you have to be prepared with the right tools and measures to make sure they don’t go to waste. It is crucial to know your capabilities, learn your environment, and surround yourself with the right people to have a better foothold when you hurl yourself to the entrepreneurial space. Data, experience and your gut-fell will help determine the decisions you have to take.

Listen to your instructor and trust your team

If you are doing it for the first time, you should pay attention to what the instructor says and observe it diligently. Review the guidelines and follow directions to avoid mishaps. There will also be a team that will support you, from the pilot to people on the ground. Trust them and establish a strong connection with them so you can better communicate during the entire process.

Having a mentor and like-minded individuals can assist you as you dip your feet on the water. Once you have established your business continue to upgrade yourself, seek the counsel of experts and join groups like EO. Hire people that fit your corporate culture and requirements and look after their professional development. Skydiving like entrepreneurship may seem to be a solo activity but there are many people behind the scene that ensure the success of the endeavour.

Wear the proper gear and always prepare for an emergency

Safety first. That is a primary principle in most industries. The same goes for skydiving and entrepreneurship. You don’t do these things blindly. You create a plan and several back-up plans when things go wrong. There will always be unexpected circumstances, such as calamities, economic crises, armed conflicts and pandemics.

Whether the investment you put in your business is your life savings or financial contribution from an angel investor, you have to ensure that it will multiply rather than a negative yield. Have your business insured, consult with financial and legal experts, create a short, middle and long-term plan, including an exit strategy. Make sure not only have two parachutes but extra ones when you dive into business because unlike skydiving, more people are dependent on you as a business owner.

Feel the moment and enjoy the experience

People who skydive want to experience the thrill of the activity. Entrepreneurs get into business because of their passion and vision. Never let go of that desire for success. Keep your eyes on the prize and the destination ahead. There may be times when it gets scary, frustrating, difficult or impossible, but your fervour and determination will keep you going. Enjoy the experience while you can because the joy of achieving your goal will be far more immense than the struggles you’ve been through.

Innovate your products and services to grow your business

In a world where competition and survival are inherently embedded in our DNA, the playing field in the entrepreneurial space becomes tougher and tougher every single day. There is no room for complacency, which can only drag a business towards a downward slope. It often calls for a lot of creativity and innovation to bring your venture a notch higher than it used to be.

Merriam-Webster defines innovation as “a new idea, method, or device; the introduction of something new; can refer to something new or to a change made to an existing product, idea, or field.” Innovating your products and services will help you expand your venture and increase your earnings. It will also keep your customers or clients interested in your brand.

How do you innovate your items, amenities or services? When you get to the drawing board, take into consideration the following tips that can help you develop new merchandise goods or skill offerings to your clientele.

Review your current offerings

There’s no need to look too far to find concepts that you can use for innovation. By reviewing your existing offerings, you can generate several ideas that will enable you to introduce something novel in your present line-up. You can improve your product menu by upgrading your current merchandise or upskilling your people for added services. However, remember to remain true to the brand you represent and the industry where you belong. Don’t come up with new products that are too disconnected from what you currently have.

Innovate your systems and processes

Prior to instituting changes in your list of products and service on offer, innovate first your systems and processes. You may need to automate, use new software, shorten certain processes or speed up some procedures in your business. Make certain that you have laid down the necessary foundation that can absorb and support the changes in your enterprise. It is helpful to prepare your internal environment and stakeholders by modifying certain methods and instilling stability and coherence in your organisation.

Brainstorm with your team

Make brainstorming a regular activity in your team. It is good to have a Research & Development department, but if you don’t have one, you can opt to hire a consultant or utilise the skills and creativity of your existing staff. Check with your frontliners regarding the feedback and observations they get from your customers. Huddle with your team on the difficulties they encounter with your present products and services and how they can be improved. Get them to suggest improvements by establishing an atmosphere of openness and creativity.

Provide a venue for reviews, complaints and suggestions

Your customers, clients, and suppliers are also a rich mine of concepts for product innovation. Create a feedback system where you will be able to generate ideas from them. Consider not only their suggestions but also their complaints and turn them as a potential part in your innovation plan. Understand that your market’s needs evolve over time, so you also have to keep pace by upgrading your products and services and providing new solutions and added value to them.

Analyse market and industry trends

Change happens constantly and continuously. To be ahead of the game, you either pivot and introduce something mindblowing or be abreast with the trends in the market or industry. If you fall behind you might lose momentum and may not be able to keep up with the changing tide. Persistently watch out for possible trade movements and business development. Market research is an important aspect of the innovation process. Keep your eyes and ears open for things that may spark inspiration within you. Check the news, industry reports, and even social media posts, as they might be helpful in giving you ideas on how to improve your menu of offerings.

Test your new products or services

Once you have already come up with an idea and plan, set the ball rolling immediately. Test your new products and services to see how effective they are in attracting and retaining customers. Sometimes, you will never really know how good a product is unless you put it out there. If you find any gap in your new offering, correct it straightaway until you perfect it.

Communicate the changes

When you have done your product innovation, be sure to communicate it efficiently. Get the proper trademark for intellectual property. Come up with a marketing plan and launch your new product or service to the market. There’s no use innovating your offerings if people will not know about it. Produce materials and events that will bring these novel ideas closer to your customers.

Innovating requires risks and resources. It is a tedious process but the result, if done right, can be rewarding. How often you do product innovation really depends on you and the pace of change in your industry. Ask around and do some research of businesses that have done it so that you are well-informed when you make a decision of introducing something novel in your venture.

When your entrepreneurial journey hits a plateau

The path of entrepreneurship is full of twists and turns, as well as potholes and mounds, that make the journey challenging yet exciting. It’s a rollercoaster ride that can take you up and down, which can often cause you to stumble or lose your balance. But what if you’re going through a smooth ride like a paved highway, only to find out that you’re going flat and no growth happens at all?

As a startup, you have the potential to bring your business to whatever height you can reach. The danger is when it goes on a plateau because it can later lead to a slope unless preventive measures are taken immediately. When growth stagnates, it’s a warning that something’s not working right. Maybe it worked during the first few years of your business, but after some time it no longer produces the growth your company needs. One thing’s for sure – it calls for changes within your business. So, what should you do when things don’t seem to be progressing as they should be?

Evaluate your business

Find out first where the gaps are within your company. There may be dead-ends in some departments of your business that you need to fix so that the flow of progress can continue. Conduct some evaluation procedures to identify areas that need to be modified. Keep an eye on unnecessary expenses. Weigh well if you have to continue or put a halt on a project or initiative so as to avoid bigger losses. Don’t be afraid to call for a stop even if you have poured so much investments on it. It’s better that way than to cause uncontrollable damage in the future. Tie loose ends by coming up with specific action plans that can provide lasting solutions to your problems.

Develop new products or services

If you are stuck in the same profit margin despite making adjustments on your raw materials and prices then look at the possibility of developing new products or services. There are instances when you need to inject a new stream of investments to pump up your business growth. You may have to expand a bit, whether it is office space, geographic location or organisational structure. Having limited products may work in the initial phase of your venture, but not in the long run. There will come a point where you have to take your business a notch higher and bring in something novel to spice up your growth.

Modernise, automate or innovate

Are you still doing things manually or the traditional way? Take a look into technological advancements that you can apply or utilise in your processes or operations. At this age, there are plenty of equipment, gadgets, devices, software, and applications that can make things quicker and easier. Time is an important factor in growing a business. If you can find ways to hasten production and earn more income at a lesser amount of time, there’s a chance that it will boost the increase in sales and profit of your enterprise.

Re-structure your team

If something is not working out right in your team find your weakest link and resolve the issues. Probably, you have too many layers in your organisation or you have been holding on to people that are not fit to your business culture and set-up. Invest in people who have the right values, work ethics and skills that can help your venture to move forward.

Rebrand your image

Sometimes, your business is not doing well because your brand does not connect with your market. There are businesses that relaunch their image to convey a clearer or better message to their prospects. However, rebranding is not just about changing your company logo or product packaging. It entails resetting the perception of the public towards your enterprise, people, and offerings. When you take this route, plan it well and execute it right.

Don’t panic or don’t give in when plateaus occur in your entrepreneurial journey. Instead, take it as an opportunity to step back, review the overall picture of your business, look into the details and choose the right direction and pace that will bring you forward. You can tap into the expertise of consultants or get ideas from other business owners and like-minded individuals. The best thing you can do is to take a risk then prepare yourself for more uphill climbs to reach the top.

The importance of insurance to your business

At this age when climate change is causing natural calamities more frequently, plus with the threat of cyber-attacks, fraud, terrorism and other man-made disasters, it is vital to protect your business from such possible scenarios that may cause damage to your venture. It becomes imperative to avail of insurance for you and your business that will allow you to be in a position of confidence during times of uncertainty.

There are different types of insurance that you can avail. First, you need to be aware of the requirements for businesses because some of them include getting various kinds of insurance policies. Make sure to check out the law and comply with it. Doing so will also benefit you because these policies will help protect different aspects of your business.

Yourself and business partners

As the business owner, you need to have yourself insured since most of the venture, especially during the initial stage, are anchored on you. It goes the same for your business partner or other owners of the company if there are any. Even if you keep yourself healthy, there may be unforeseen circumstances that can possibly happen. There may be policies specifically for business owners that provide better deals and benefits, so be sure to check that out.

Assets

Fire, earthquakes and other catastrophes and misfortunes may damage your properties, vehicles, fixtures or any of your business assets. Getting insurance for your assets can help lessen the adverse effects of unfavourable scenarios. There are different packages that will ensure that you are compensated for any loss or destruction to your real estate, buildings, automobiles and similar valuables items as long as the circumstances are indicated in your policy.

Products, goods and services

Your products and services are the lifeblood of your business. Make sure that you have a safety net with regards to the preparation, production, transportation and storage of your goods in case of any eventuality. Also, protect your business from errors by taking Liability Insurance. If you are using technology, have your business insured from cyber-attacks that may damage your data and software.

Finances

Ascertain that your finances are safeguarded from fraud, theft and similar instances. Although most financial institutions may already have security measures in place, it pays to have other protection for your hard-earned money.

People in your team

Look after the welfare of your management and employees by getting them insured. While it is also dictated by law to provide such benefit to them, it is also to your advantage that your team feels secure within your organisation. It will also boost there morale knowing that you take care of them.

Before you decide on the insurance packages, make a checklist of what you need to avail, enquire from various companies or agents and choose the most suitable insurance company and policies for your enterprise. Don’t let all your hard work go to waste by allowing some adversities knock you down. Always be prepared for the worst while you hope for the best outcomes. It’s good to be ready before any misfortune hits you by addressing the threats that can possibly hurt your business. It can lessen the negative impact of such scenarios and help you recover fast.

Making good decisions as an entrepreneur

Business owners face tough decisions every day. There are several things that need your attention, including fires to put out. More often than not, these decisions can affect not only your personal life but also those of others. The responsibility of making a choice that can chart or hinder the growth of your business is a heavy burden to take.

However, there are various factors to consider when you make a decision. Oftentimes, you have to take different approaches depending on the situation. And even if you encounter similar circumstances, there is no surefire formula on which solution to take because results may vary from time to time. The best you can do is to make a calculated risk and lessen the possible negative impact of the decision you take. These are things you need to consider to help guide you in choosing the most suitable path for you.

The reason for the decision

Before you look at your options, analyse first the reason why you need to come up with a decision. Knowing your purpose will help you weigh your choices better. Are you going to make a decision that can help boost the sales of your business or is it for stronger long-term relationships with clients and your team? Priorities may change at any given point, so make sure that you are making a choice that will support your present need and priority.

Effect of the decision

What is the possible effect of your decision on yourself, your business, your family, your clients or people involved? Some decisions may be minor to you but major to others. Take into consideration the probable outcomes if you choose a different route. While you are at it, deliberate the short-term, medium-term and long-term effects of your decision.

The time needed to make a decision

There are circumstances where you need to think and act fast. Otherwise, you might lose an opportunity or prolong a crisis. On the other hand, there are instances when you shouldn’t rush with your judgment, but have to take time to assess the various angles of the situation and the options available.

Value of feedback from others

It is not unusual to seek opinions from others, especially those who have more experience or who had been in the same state before. But when you gather feedback from others, it cannot be avoided that there will be opposing or varying views. You need to ask yourself, are you getting inputs from others because you just want to affirm what you have already decided or are you approaching the right people who can help you see through the gaps?

Information and resources available

Is the information available up-to-date that it will help you see the complete scenario when you go by your decision? Are there enough resources to back up what you have decided to do? While some options appear ideal and perfect, carrying them out may be difficult to do because you do not have the capacity and capability to follow it through.

You will never really know when you have made the right decision until the results start showing. Making a decision involves logical and strategic thinking as well as listening to your gut-feel. However, bear in mind that as a business owner, decisions you make may affect several people in the process. There are times when you have to make sacrifices and go against the flow for the greater good or for long-term success. It is good if you can unburden the load by sharing your sentiments with like-minded individuals, similar to the Forum setting in EO, without having to reveal confidential matters. In the end, decision-making is a responsibility you have to take when you lead a team and bring your business towards success.

How do you close a deal?

You may be selling a product, working on a partnership or bidding for a new client. For any of these, you need to make sure that you successfully close a business deal that will be mutually favourable for you and the other party. The negotiation process may take a while, but there comes a point when you already have to make the final move to accomplish your goal.

But how do you ensure that all the time and effort you invested in the talks will bear good fruit? Sometimes, a prospect stalling a decision may lead to a missed opportunity. You have to put a close to the transaction before it’s too late and someone else takes the prize of your hard work. There are a few techniques you can incorporate in your methods that may help you attain the result that you are hoping to get. Still, it is best to assess the situation and get the pulse of the prospect before you proceed with your strategy. Otherwise, you might end up totally losing the deal.

Having a sense of urgency

You can give your prospect time to think over your proposal. But don’t give them too much time. Two to three days of considering your offer would be enough for them to make a decision. Otherwise, the additional time might give them an opening to back down on your offer. Let them know that there are other people interested in your product, service or partnership and that the slot that may be allotted to them can be given to another prospect within two days if no they do not arrive at a decision. There may be other reasons for you to take back the offer, but it boils down to the sense of urgency to make your prospect sign on the deal.

Letting the prospects understand the solution to their needs

One of the factors that brought you and your prospect together is that you have a solution to their problem. Harp on that need that they have, wherein if they do not sign you up or accept your offer, their worries might pile up. Stress the need to avail of your offering immediately to minimise their worries and ensure that any further difficulties may be avoided.

Offering a limited benefit

One way to help your prospects sign the deal and take your offer is to provide a limited benefit that may expire in a few days. Such benefit may encourage them to consider your proposal within the given time and help you get through the finish line. It could be a discount, a free product or service or an exclusive benefit that they can enjoy should they accept your offering.

Taking them to the pros and cons of not closing the deal

There are prospects that need to fully understand the whole picture before they can make a decision. It is understandable, especially if a huge amount or value is at stake. Just take them through the pros and cons of your offer and let them know that you are there to help guide them in their decision-making process. Remember that your relationship with your prospect is important, and it’s something that you must preserve while conducting your negotiations.

Giving them a visual tour of enjoying the benefit

Some prospective clients or customers just need a little nudge to convince them to take your offer and sign the deal. A more positive approach is to make them imagine how your product or service can change their life or impact their future. They have to visually think of the advantages you can bring to them to encourage them to make their decision as soon as possible.

If you have zeroed in on a prospect, make sure that all your efforts will yield to a positive result. There may be many other more techniques that you can apply. The best way is to observe and learn from situations. Not all strategies may work to all prospects, so you have to feel the situation and find the best approach that will work with a particular client. Most of all, be sincere in your dealings with them and do not burn bridges. Always communicate and reach out to them.

Accounting tips for your business

Keeping up with your finances is always a major hurdle when it comes to managing your venture. Accounting is a key element that you must carefully pay attention to when running a business. Being conscious of your cash flow is important given that so much investment goes to setting up and maintaining your business, whether it is self-funded or financed by investors. Moreover, it is the lifeblood of your enterprise, which is why you need to go over your books even if you are not good with numbers or merely not fond of them.

For startups and those scaling up, here are a few tips you can note to help you manage your accounts.

1.       Have a proficient accounting software and system in place

An accounting system allows you to track, keep and organise your records. You can also automate your methods and incorporate this to your system. Fine-tune your methods and procedures to put in place a proper order of how things should be done and ensure nothing falls through the cracks.

You can choose from any of the accounting software available for businesses. Take a look at the one that is most suitable for your operations and install it in your devices. Have yourself and your team trained on the proper way of using the software to make it more efficient and fast in implementing the system in your day-to-day activities.

2.       Familiarise yourself with the basics of accounting

When starting out, business owners usually do everything by themselves. However, whether you have to personally do the recording of your finances or have someone do it for you, it is still advisable that you know the fundamentals of accounting. It also makes it easy for you to understand the numbers and interpret them. That way, you know when something’s amiss or when you need to pay more attention to a certain part of the business.

3.       Hire a dedicated person to do your accounting needs

Being on your own at the initial stage of your venture is not an uncommon situation for entrepreneurs. But as you go along your journey, you may realise that there is a need to have another person do your accounting work. Whether it’s a full-time staff or a third-party contractor, you need to delegate the finance job to a particular person or team because it will take too much time and effort to constantly do it. In addition, it needs do be done in a detailed and meticulous way to make sure that records are accurate and regularly updated.

4.       Document and record transactions

Always keep and file your receipts and financial documents. It is needed for auditing purposes. Plus, it is also to your benefit and future reference when everything is put in black and white. Better to digitalise your files and save them on your computer so you can store them without taking up too much physical space. Don’t forget to back up your files and keep multiple copies. On another note, be conscious of tax requirements and deadlines and make sure you comply with them. A clean record of your finances will be helpful for auditing and tax filing.

5.       Segregate expenses

Even when you are starting out small, always separate your personal from your business expenses. As you expand, make sure that you segregate budget and expenses per project or department. This also makes it easy for you to track money that comes in and out of your business.

6.       Do regular financial check-ups and reporting

Filing, monitoring and reporting financial transactions are tedious work. However, they come in handy when you maintain a rhythm. Reporting allows you to be conscious of your current financial status. You learn from previous data, which you can use when you plan your future and forecast your earnings. Regular accounting check-ups contribute to the financial health of your company.

When in doubt or when problems come your way, always consult an expert. You can refer to certified accountants and fellow entrepreneurs regarding efficient accounting procedures and systems that can help your business grow. Observe good financial practices to avoid drawbacks that you may encounter in your entrepreneurial journey. Accounting is a serious matter because the numbers you see in your

Shaping your corporate culture

Corporate culture is an important facet in the success and longevity of a company. Similarly, if a corporate culture incites undesirable behaviours within its people, it may lead to the downfall of an organisation.

Culture is not something that is built overnight. It develops over time until it becomes a standard and comfort zone of a set of people. When it is ingrained deeply in their minds and conduct, it becomes an accepted norm. On the other hand, the wrong values or culture that become a regular practice in your organisation will be difficult to undo and change to how you want it to be.

Hence, it is vital that an entrepreneur shapes the corporate culture of his company in the onset. However, not all business owners may have this in mind when everything is just starting to roll, especially for those who spend the initial stage doing all the roles by themselves and employed people only a few years later. Before they know it, the establishment has grown and people have become absorbed to a particular mindset, psyche, belief, language, behaviour and interaction that may dictate to how things are perceived and done in the organisational space.

If you want your company to adapt to a particular corporate culture, there are a few things you need to do to shape it according to how you want it to be. It may yield far longer than you have anticipated, so you have to exercise patience, persistence and consistency to achieve the desired results.

1.       Determine the values you want to inculcate

Envision the kind of workplace and interaction you want to attain within your business. From that, identify the values that you want your company, brand and employees to have. You may want your business to be attributed as a fast, efficient and reliable one. It could be that you prefer a family-type of environment among your staff and with your clients. You may want to hype creativity within your group that others will associate you for your out-of-the-box ideas. Whatever it is, your vision of your work environment is essential in carrying out the specific tasks to introduce and build a particular culture in your organisation.

2.       Include in the policies

The good thing about being an entrepreneur as compared to working as an employee in a huge company is that you have a hand on how the work culture would be within your business. To reinforce your aim and turn your ideas into action, you will often need to put it into policy. For example, if you want punctuality as a culture within your venture, then you need to have HR guidelines on work hours, turn around time and activity timelines.

3.       Communicate and listen to your team

For you to be successful in shaping corporate culture, there has to be a buy-in from your staff and stakeholders. Keep mentioning about the kind of work environment you’d like to have during meetings whenever you give a pep talk to your team until it has become ingrained in their thoughts. Include this as an agenda in your regular huddles. Create an atmosphere of suggestion where your team can openly share their thoughts on the culture. If everyone agrees to it, emphasise it through reminders on your bulletin boards or in your various communication channels. You can introduce a culture or policy through a teambuilding activity, where you can hire a consultant to help you convey to your team the culture you have in mind.

4.       Hire according to the culture fit and skills set

The challenge often is when a new person comes in and it disrupts the current culture of the team. When hiring a new staff member, look into the candidate’s culture fit as much as you review the credentials and skills set that they may bring to the table. Once you have successfully selected the right person for the position, make sure to orient the new hire about your corporate culture to avoid misunderstanding or possible conflict in the future. They must know what they’re getting into and be committed to abiding by the rules and culture of your business.

5.       Validate right behaviour with rewards

To fortify actions that contribute to the corporate culture you want to build, validate them through a rewards system. As in the example above, if punctuality is something you want to be part of your culture, then include an award for employees who come to work early or do things without delay. When employees develop a good feeling towards something they have done, they will tend to continue with it or improve on it.

6.       Lead by example

The best way to entrench in the consciousness of your team about the kind of culture you want to have in your workplace is to live by example. Whatever they hear from you or read in employee manuals will be substantiated by your action. You cannot stress punctuality if you come late to work. Otherwise, it will cause some cracks in your organisation because people will no longer take your word seriously.

If you don’t know where or how to start shaping your corporate culture, seek counsel from a mentor or someone who has done it before. Remember that culture involves people and people are dynamic. Thus, culture may evolve or it may come out differently as to how you imagined it to be.

Stay focused on your vision, mission and values, which are the foundation of your corporate culture, and set your directions based on that. Conduct self-reflection and evaluate your work environment regularly. A positive and encouraging culture can bring happiness to you and your entire team, which can lead to a motivated staff that works with you in achieving your goals.

How to organise a successful launch event

Assuming that you have perfected your new product or service and you are ready to tell the world about it, how do you make sure that many will know of and avail of your new offering? You need to come up with a well-thought plan to hype your product, service or campaign to the public, especially to your existing and prospective customers and clientele.

However, doing a launch event is easier said than done. It takes a lot of thought, effort and resources to create and organise an event that will move people to trust your brand and patronise your products. The best way forward is to hire an event team to do the work. But if you’re short on the budget since you’re still a startup business and want to do things by yourself, here are tips on how you can launch your new campaign successfully.

1.       Envision how you want the launch to happen

Start with your goal in mind. Set your goals, objectives and targets, and what you want the event to achieve. Envision what you want to happen during the launch and how you want it to benefit your business. Make sure to set measurable and achievable goals that you can easily assess later if the event is a success or not.

2.       Plot the best strategies

Once you have identified your goals and objectives for the launch event, come up with the best strategies to attain these. Doing research ahead of time on what will click to your target market will be most helpful as you plot the right tactics. Know the latest trends and map out the best routes possible to get you to your desired targets. Assign a coordinator within your team and divide the tasks among each other for easier monitoring.

3.       Brainstorm for a concept

To make your launch event memorable and talked about, you must have a cohesive concept that also ties your brand image and your new campaign together. Some go for an all-white event or a carnival or one that is easily associated with the occasion or the company. Decide if you will have a product test, a special show, a sit-down dinner, a social media hype or a combination of everything.

4.       Set timeline and budget

When you have designed your launch event, it’s time to get down to the details – venue, stage, lighting, talents, food, etc. But first, draft your budget and timeline as this will be the skeleton of your plan, along with your objectives and strategies. Based on your budget, you can adjust your concept if you need to tone it down or take out certain parts.

5.       Get down to the tasks and details

Now, it’s time to contact your suppliers and service providers that can mount your launch event. On the sales front, you can do pre-orders and sign-ups. For the communications part, nail down the right messaging and have a press release and FAQs written down. Create teasers and materials that can support the launching of your new campaign or product. Conduct regular meetings with your team to check on the progress of each task needed to accomplish.

6.       Create invite list and send out invitations

With preparations on the roll, create a list of people you want to invite to your launch. Tap influencers, VIP customers, industry movers and the media that can echo your message and create a positive ripple effect on your brand.

7.       Run-through the event several times

The reason why companies and brands consider special events as a marketing tool is to provide people with an experiential taste of their offerings. It is crucial that the experience during the actual event is magnificent enough for people to talk about it in a good way. Conduct run-throughs and technical checks prior to the event to make sure that every detail is looked into and each gap is filled in.

8.       Be visible during the event

The event proper is your opportunity to network and have face-to-face interaction with your guests. Make sure to allocate time for media interviews. It is also more impactful if your visibility is not only limited offline but also extends online. Use an event hashtag and post updates of the launch.

9.       Sustain the buzz

Every phase of the launch event is important. From the planning to preparations to the event proper up to the post-event, each opportunity must not be missed. The launch does not end when the event wraps up. It continues for a few more days, weeks or months through various initiatives and endeavours that support the hype. Make sure that your customer service is in place. Deepen your relationship with your consumers and take this opportunity to create a community among them.

If you’re doing this for the first time, it is good to seek the help of those who have more experience than you. Take advantage of opportunities to attend events when you’re invited so you can observe how they go about it. You can do both in EO Melbourne where learning and fun events happen all-year-round.

Short courses for entrepreneurs

Perhaps people are confident to go after their passion to start a business because they have acquired enough experience to do so or their training and educational background provided them with the knowledge and skills to make it happen. Still, this does not mean that business owners already know everything. They need to constantly update themselves with the latest trends and upgrade their proficiencies to move their ventures forward.

One of EO’s core values is Thirst for Learning, which is something every entrepreneur must have to keep going in their journey towards their goals. EO itself has executive-education programs that provide members with added resources and learnings. Several schools, professional groups and online sites offer short courses that help advance an entrepreneur’s competences. Some of them can run for a few days or weeks.

The personal and professional development of business owners can also lead to the growth of their enterprise as they are able to execute strategic plans of action and accelerate the progress of their productivity. Entrepreneurs can still continue their education and gain more expertise in different areas that may impact their businesses. Topics may revolve around, but are not limited, to the specialties below.

Leadership and Management

Graphic artists may open a design agency, health gurus can start a fitness gym, and lawyers and accountants can establish a consultancy firm. Basically, anyone can create a company based on their passion and expertise. However, running a business takes more than just proficiency in their field of work. It requires strong leadership and management skills to steer the venture towards success.

An entrepreneur must be able to look at things short-term and long-term, large-scale and micro-perspective. They need to grasp the nitty-gritty parts of human resource and operations. Being able to adapt to change is a skill that can be developed over time. Business owners must be able to think creatively and act strategically in any given situation.  

There are many courses on entrepreneurship, leadership, business planning and management that are offered in academic institutions. They sharpen one’s mind to innovate, transform, manage risks, generate ideas and create breakthroughs in their business.

Finance

Not many business owners may be able to understand and know the financial aspect of an enterprise. Yet, it is important to be acquainted with cash flow as this is the lifeblood of a business. You may find short courses on entrepreneurial finance, principles of accounting, budget planning financial analysis, financial systems, taxation, asset management, auditing, and other investment and economics-related topics.

Marketing

Marketing is an aspect of business that entrepreneurs should be familiar with because it drives sales. However, marketing is a broad area to study. It encompasses branding, market research, advertising, public relations, events management and sales, including customer service. Business leaders can expand their understanding and know-how of promoting their brand, company, and products or services.

As the market evolves, business owners also have to stay attuned to the changes not only to conform to the demands of the times but also to introduce new ideas and cause disruption to the minds of customers.

Internet and digital space

A new trend in marketing that presents a new and wide-ranging arena is the digital space. Gone are the days when promoting and selling are done face-to-face or via traditional media. The advent of the internet and new media has created a whole different culture in pushing for one’s brand.

From blogging, web management, SEO, social media marketing, mobile applications, new software to online community management, the digital field is expanding by the minute and new information comes in by the second. Short courses on such topics can widen an entrepreneur’s comprehension of the digital age and how this can help grow their business.

Technology

New technological advancements happen across various industries, such as in food, hospitality, accounting, engineering, education and medicine, to name a few. Artificial intelligence is applied in communication, security, research, aeronautics and other fields of endeavour. Business owners can take special classes on technology courses that can be applied in their business.

Special Interests

To develop other aspects of your entrepreneurial self, you can also take short classes on public speaking, writing, languages and other special interests that can also add value to your organization.

The road of your entrepreneurial journey may be steep or filled with potholes. As long as you continue to improve yourself and pour the added knowledge you amass into your business, you can achieve the unimaginable. With more skills and competence, what you are able to attain in three years, you might be able to realise in a shorter time. Learning knows no age, so you can keep on acquiring expertise as you go along your journey.

The impact of user reviews on businesses

Consumers nowadays have the power to sway market opinion. Through review sites and social media networks, customers can make public their experiences with businesses they utilised. User reviews influence buying decisions because the market now looks into the assessment of those who have already availed of particular products or services before committing to a transaction. Thus, client ratings and testimonials provide customers with both a resource and a voice that can affect one’s company or brand.

The rise of online shopping and e-commerce sites, social media pages, rating forums, booking sites and blogs have allowed patrons to consolidate their opinions and evaluation of a service or product in platforms that can be viewed by the public. With more and more sectors bringing their businesses in the cyberspace, customer reviews are no longer confined in the food and hospitality industry. It also extends in fashion and beauty, internet, retail and other service providers. Popular online personalities exude certain authority when it comes to setting trends and directing the flow of public opinion.

Given the shift in the mindset of buyers, how can user reviews impact your business and how can you use it to your advantage? Rankings and recommendations can become a marketing tool to promote your venture and, at the same time, strengthen the customer service and client relations aspect of your business.

The effects of customer reviews on a brand

It can boost or lower sales. One apparent and immediate effect of customer reviews is reflected in the sales performance of the product or service in question. Several negative comments may lower the sales of your business while, on the other hand, good reviews can boost profits as they drive more sales. When users are contented with the service, there’s a tendency for them to buy more or avail of additional services. The trend may vary from day to day, so make sure that you consistently have positive feedback from your customers.

It can build or damage your brand image. For a company, big or small, image is everything. If bad reviews keep pouring in, people will believe that you offer poor products of services, which may be difficult to reverse. It can cause a huge dent on your image because your existing and prospective clients may lose their trust in you. However, if you get good ratings steadily, the general public will regard you as a dependable company. It will build your stature in the industry that even a single minor unfavourable remark may not cause too much ruckus to your enterprise.

It can attract or drive out customers. Another impact of customer reviews is that they can either draw new customers to you or deter them from patronising you, let alone consider you as among their choices. Existing clients that are satisfied can become your regulars and brand ambassadors. They become your mouthpiece to others, so an endorsement or criticism can create a ripple effect on your future clientele.

The things you should do to bring it to your advantage

Knowing that customer reviews may have a lasting consequence in your business, here are some of the various actions you can take to make sure you turn every review to your advantage.

Always improve your product or services. Consider every feedback as a way to develop your products and services and enhance your business. If you always aim at providing the best quality and highest standards you will have satisfied customers. A user review can only become compelling if it rings true. Treat each customer like a VIP, making sure you provide them with good value for their money and that you attend to their needs.

Monitor online to gather feedback and reviews. Constantly check your corporate website, social media accounts, blogs and booking or e-commerce sites where you have signed up, blogs. Set alerts in your search engines to notify you when there is a new post or article about your business. It helps when you pay attention to comments and let your customers know that you heard them.

Respond to negative feedback right away. Don’t be afraid of receiving a negative review. Some fear it so much that they delete it from their sites. But the public will know and it will only cause more irritation from complainants. Avoid being defensive in your answers. It’s even worse if you go on the offensive. The best approach is to respond to the adverse feedback right away. Clear any misunderstanding if there is one. An apology may often be needed. It is also a way for you to show others that you are doing something to address the concern and that you are continually improving your products or services. When the public sees that you care for each client, they are more likely to trust you rather than just putting out only the positive marks you got. 

Encourage satisfied customers to leave feedback. Irate customers are more likely to leave a review than those who do not have complaints because the former is charged with so much energy driven by anger that they will go out of their way to share their experience. Make sure you encourage satisfied clients to write their positive reviews. Some review sites may dissuade businesses to provide an incentive for favourable comments, so the best you can do is to remind them to write about their fulfilling experience for the benefit of other customers.

In the end, it all boils down to having good relations. It encompasses relationships with your staff, your sales team frontliners, suppliers, and clientele. Establish and maintain open communications with them and build on that. If you have enough resources available, be sure to have a dedicated person or department that will take care of customer relations. It pays when you tune your ears close to what your consumers have to say. In the end, it is up to you to take action or not. However, customer reviews can also aid you in coming up with informed decisions based on what is best for your company and the customers.

Sharpening the entrepreneurial mind through jigsaw puzzles

Puzzles are created to tickle the mind. Putting together pieces of jigsaw puzzles, especially the huge ones, can be both exciting and daunting. Finding the right one that fits a particular section is pleasurable, but not figuring out the correct positions can be frustrating. It is sometimes exasperating, yet it can hone your skills and sharpen your thinking.

There are few insights from solving jigsaw puzzles that you can apply to various aspects of life. Take a few lessons from it and bring it to your business and let your entrepreneurial abilities expand and grow.

Vision: A photo reference is important

Creators of jigsaw puzzles provide a picture of what the finished product looks like. It serves as a guide on how the pieces should go together.

As the founder of your venture, your vision for your business is an important guide to keep you on the right track. Put your vision into something concrete, such as a picture or representation, which can also be a reference and constant reminder to you, your staff and team members. Then build your plans and strategies around that vision.

Coherence: Every piece count  

No piece is less important than the other. Everything is needed to create a picture. They have to lock together to appear as a single entity.

Some entrepreneurs establish their business based on their hobbies or skills. An IT expert is more likely to start a technology-related business. Owning an enterprise entails more than just putting your talents into good use. There is a need to familiarise yourself with accounting, human resource, marketing, sales and other components that keep your venture running.

Hiring experts is the best way to drive it forward. However, you may not have the resources to put together a team during the initial stage. And even if you already have skilled staff members, you still need to oversee various aspects of your business to ensure they all work together in the same direction.

Strategy: Start with the edges

When all the pieces are messily mixed together, it may render you clueless as to where to start first. The best strategy is to assemble the boundaries to get clues on the next pieces.

A business leader looks for more efficient ways to reach his target at an accelerated rate. Start with your vision and then craft your plan on how to achieve it in a short time. A good strategy will save you the resources, time and effort. Break down your big goals into smaller ones and start with tasks that are easy and doable.

Experiment: Do trial and errors to find the right fit

A piece may look like the right one for a particular spot. But when you put it with the other pieces, it doesn’t fit at all. You have to try similar-looking pieces to know which one will truly fit.

In business, there are several hits and misses until you get the right solution to your problem. Trial-and-errors are often necessary for you to achieve success. Don’t be afraid to commit mistakes, although there’s nothing wrong with being cautious and calculating. Starting and growing a business requires taking risks, so be wise in making decisions that may affect you, your family or other people.

Teambuilding: Working together makes it faster

Working on a jigsaw puzzle may take time. Doing it with people you are comfortable with is a big help. It also makes the experience more enjoyable.

While having an extra hand doesn’t necessarily correspond to efficiency, working with people that share your vision, corporate culture, work ethics, passion and drive can ease some burdens. They can help you figure out things, carry out tasks and take care of your business.

Fun: Enjoy the process as well as the result

Solving jigsaw puzzles is a lot of fun. It can be a hobby, a collection or something you can play during parties or by yourself. The feeling of being able to put the last piece and complete the picture is very fulfilling.

It is a given that the entrepreneurial journey is filled with the proverbial potholes and humps. Challenges and hardships are constant in every business. Don’t forget to enjoy the experience and have fun while working towards your goals. And when you achieve success big or small, find time to celebrate.

Now, gather the remaining pieces of the puzzle and work towards completing the picture of your vision.

Tips on identifying your market segment

Your product or service is not for everyone. It is not something that can cater to people across all ages, income levels, sectors or geographic areas. Even if you are producing a variety of items that can fill up a department store, it doesn’t mean you can sell to anyone. Trying to do so can result in wasting your time, effort and resources, which is not a strategic way to do business.

Certain ventures operate B2B (business-to-business) while others are B2C (business-to-consumer). Nevertheless, it is still necessary to profile the type of clients that are being targeted so that messages, activities and tactics are geared towards them. In a roomful of people, can you determine which ones will be attracted to your brand and will say yes to your offer?

People nowadays are getting more diverse as new interests, priorities and needs prop up as time goes by. It’s not enough to say that you are aiming for mothers. There are first-time moms, single moms, young mothers, moms with teenage kids, working moms, stay-at-home moms, aging moms, and many more. Go specific on the segments you are targeting, especially those that will give you the most ROI to your business.

Segmenting your target market will help you focus your marketing initiatives. While you welcome anyone who will avail of your product or service, your budget and endeavours can be poured towards groups that will likely patronise your brand. They are the segment that looks at your merchandise or offering as a solution to their problems and needs. But, who are they? How do you define the market segments to target? Here are a few tips.

Observe your current customers

Have a careful look at the kind of people that enter your store or office. Observe their buying habits, characteristics and behaviours. What are the commonalities among these individuals? Is there something similar that they share?

Gather data on their demographics and psychographics

Some companies give out feedback forms or conduct surveys. These are ways of getting data from your current and prospective clientele. Know their gender, age, location, income levels, occupation, marital status and other information. Learn about their hobbies, interests, lifestyle, preferences, values and beliefs. These details will help you understand better the segments that will likely patronise your brand.

Profile your customers or clients

Once you have all these observations and information with you, group them and profile them. Analyse the profile of the majority in your market segments. Your primary target may be middle-age working moms who love to take charge of things at work and at home. The secondary market may be young ambitious males who want to lead an independent life.

Engage and interact with them

Gathering information and profiling your market is not enough. You have to communicate and interact with them. Get into their psyche. What do they find most satisfying about your product or service? What makes them connect to your brand? Understand their needs and wants and how your business plays a part in helping them satisfy those necessities and desires.

Constantly update your database

There’s a saying that the only constant in this world is change. Your business may evolve over time. Your target market will get older or experience things in life that will alter their perspective, preferences or priorities. Update your database every now and then and review your market segment every time you gather at the drawing board to plot your marketing strategies.

Check your competition and industry

Also, take time to see the customer base of your direct competitors. Look at the entire industry and the market that they serve. How do you differ from one another? What makes your target market segments drawn to your competitors? What is your positioning in the industry compared to other players in the field?

Segmenting your target market groups also helps you refine your brand and imaging. It is also a major factor to consider as you grow your venture. More importantly, knowing more about them establishes rapport and strengthens the relationship with your clients and customers, something that is at the core of every business.