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Finally, every product team can benefit from seeking out the
smartest people in the company, regardless of function or
position, and making them unofficial “deputy product
managers.” If asked for ideas and feedback, they can deliver
a surprising amount of value just based on their smarts.
Why is this the right time to enter the market and what
is our go-to-market strategy (i.e. how will we sell the
product)?
During the test itself, the less you say, the better. Don’t taint
the test subjects’ experiences with your own expectations.
Your goal is to observe and understand where your model
might be inconsistent with how a user thinks. Just watch: Can
they complete the tasks easily? Do they find what they’re
looking for?
For example, you could say that your potential customers are
“Marys” (professional, tech-savvy women in their 30s) and
“Freddys” (male students with limited income). Depending
on whether you prioritize “Marys” or “Freddys,” you will
likely choose very different features to include in your
product. Such simple archetypes help align the whole
product team on who the customer is and what is important
for them. Just make sure that at some stage, you also talk to
real users and verify your personas are accurate!
Invisible Influence
The Hidden Forces That Shape Behavior
Find out about the forces that shape your decisions.
Have you ever thought of the reasons behind the clothes you
wear or the car you drive?
Imagine you’re in love with a new band that only a select few
people know exists. Then, all of a sudden, the group goes
mainstream and everyone else is obsessed with them too.
Would you be annoyed by this?
People like this don’t just want to appear different; they want
to appear better, smarter, richer or more sophisticated. This
yearning to differentiate oneself may even explain why so
many well-known athletes have at least one older sibling. The
first born often strives for academic achievement and the
second, in an attempt to differentiate himself, gets into
sports.
In the end, the fact that not everyone can afford these
inessential things makes them inherently exclusive. Such
costs could be monetary, like purchasing a yacht; time costs,
like the time required to learn Esperanto; or an opportunity
cost, like risking unemployability by sporting lots of piercings.
Imagine an evil witch has cursed you and, from now on, every
single breakfast you eat for the rest of your life will consist
solely of chocolate pudding. That doesn’t sound so terrible,
does it? After all, who doesn’t love familiarity – or chocolate
for that matter?
But the presence of others will also make you more physically
alert. Your body will be ready to fight, flee or play, none of
which are much help when solving a complex mathematical
equation.
Lean Analytics
Use Data to Build a Better Start-up Faster
Get the necessary tools to analyze your start-up.
You have the brains, you have the drive, you even have a
supportive network to get your start-up going. So what more
do you need? The right kind of analytics, of course! No
matter how smart or motivated, an aspiring entrepreneur
should always be aware of that deadly pitfall: building
something that nobody wants. By showing you how to use
good metrics to assess your success, this book will ensure
that your start-up is heading in the right direction.
So, what are the basic concepts you need to analyze your
start-up? And how can you apply these concepts to make
your start-up grow? These are some of the questions
that Lean Analytics sets out to answer.
So what is data?
Imagine, for example, that you run a website, and your data
shows that pictures of scantily clad women increase your
click-through rate. If you just blindly follow that by filling your
page with models in bikinis, you might undermine your
business's image or integrity.
The most useful metrics are also ratios. There are a number
of reasons for this.
First off, ratios are easier to act on. If you're running a media
site, for instance, you'll have information about your ad-click
numbers. Ad click per day, however, is much more useful: it
tells you if you're achieving your ad-click goals. You'll know if
you need to improve on this or not.
Then you enter the Virality stage. That's where you build the
product, features and functionality that'll attract your
customers.
Once you have a base of loyal customers, you start the
Revenue stage, during which your business really grows and
expands.
The Scale stage comes last. In the Scale stage, you'll start
trying to break into new markets or expand, and your start-
up will begin looking more like a larger company.
When you buy an iPhone, for instance, you aren't just getting
a phone. You're buying a piece of Apple's character, too.
Business models work in a similar way. They're a mash-up of
several aspects of the business – sales tactics, revenue
sources, product types and delivery models. You'll have to
carefully consider these different elements when you
construct your business model.
Unfortunately, not all users are good for you. Some might
only be good in the long term, like people who use a free,
basic service and only sign up for a paid account after a few
years.
Your shopping cart size is also critical. That figure tells you
how much your customers are actually spending.
You can tailor your ads to suit these different figures. For
media sites, advertising is everything.
Little Bets
How Breakthrough Ideas Emerge from
Small Discoveries
Learn attainable and affordable ways to test new ideas.
How can you create fertile ground for new ideas and insights
that might develop into a small bet? Try creating an
environment where playing and improvisation are prioritized
and encouraged – not just tolerated.
Now that you have some tools for nurturing creativity, how
do you keep moving forward?
Tin Toy was Pixar’s first short animated film and it was a
small win that encouraged Jobs to let lead executives Ed
Catmull and John Lasseter expand the role of the company’s
animation division.
It’s clear that small wins act as fuel for larger projects and can
combat frustration. In addition, they also signpost new
directions, as we saw with Pixar.
Million Dollar Consulting
The Professional’s Guide to Growing a
Practice
Start your own million-dollar consulting practice.
These blinks will teach you how to set up your own company
and acquire the kinds of clients that will make your million-
dollar business. They’ll also give you tips – some of which are
quite counterintuitive – for success in this industry.
For example, the company Bain & Co. has spent years
conducting strategic planning projects, and thus has
developed the experience and the methodology necessary to
consider themselves as having expertise in strategic
processes. Consequently, they tend to specialize in just that
area, as they know it best.
For solo consultants especially, process expertise is often
more valuable than content consulting. This is because
process expertise has a wider range of applications across a
broad spectrum of diverse industries, which can help to make
up for a lack of content expertise.
Of course, you can also help this process along by asking your
satisfied clients for testimonials and recommendations
directly.
The best way to get people to see the value you can add to
their business is by showing them the value you’ve added to
others’.
Focus on the big picture and don’t let your job get in the
way of your career.
The problem is that these statements are far too vague and
generic. Good mission statements get specific in their goals
and their intended results. For example, if you want to
improve customer service, you might have a strategy like
this: “We will design and implement workshops that use
customer feedback to create demonstrable changes in
behavior on the job.”
This means that you should always get something out of your
contracts. If a business doesn’t meet your growth strategy –
for example, if the project doesn’t meet your fee structure, is
unchallenging or doesn’t otherwise help you grow – don’t do
it.
Has your doctor ever told you that there’s something you
need to cut out of your life – maybe smoking or candy bars –
in order to improve your health? Surprisingly, the same is
true in the world of consulting: sometimes consultants fail to
grow because they refuse to abandon bad clients.
This is because consultancy firms operate differently to other
businesses, such as soft drink manufacturers, who will always
try to sell to as many people as possible. In order to grow –
both financially as well as in terms of client relationships and
professional experiences – you will need to let go of less
lucrative businesses.
And since the value you can provide increases with your
expertise and your abilities, it only makes sense for you to
raise your fees accordingly.
However, it is not your face, but your name, and the logo
that accompanies it, that is your ultimate trademark. Thus
you should always use your logo on everything you produce.
Potential clients need to be able to recognize your work in an
instant in order to make it easy for them to call on you.
The same applies for tasks. Clients don’t care about the tasks
– they care about results. Furthermore, since tasks are
repetitive, they therefore lose value the more with each
repetition due to economies of scale. Outcomes, however,
only become more valuable as they accumulate.
So how should you structure your fees? Here are some things
you’ll want to consider:
How far ahead do you plan for your future? If you’re like
most consultants, you don’t look much further than your
next paycheck. This tunnel vision is what causes most
consultants to miss the omens of bad times ahead. In order
to stay above water, you’ll need to closely monitor the
volume and source of your incoming assignments.
The pipeline approach is one way to gain perspective on your
incoming assignments. Your pipeline indicates all of your
long-term, short-term, and immediate projects along a
timeline, all of which are “signed and sealed,” thus
representing safe income.
And if you do fall into slow times, you can focus your time
away from clients and become productive in other areas –
most importantly marketing. For example, you could make it
a habit to call your old clients and partners in order to
maintain a good relationship, write articles for a magazine, or
give speeches on the challenges of the crisis.
With every project you are involved in, your worth will
increase as the added value of your projects accumulates and
the organization imparts more insider information to you.
Having been educated about the ins and outs of the culture
and business of your client’s organization, you can then be
more proactive about finding areas where you could add
value, suggest projects, and thus raise your fees.
Balance work and life – your real wealth is your free time.
If that’s the case for you, then growing your business may
actually mean a decrease in your wealth.
But how do you achieve the balance between work and play
that allows for a more balanced and rich life?
First of all, you must realize that there is no strict division
between your professional and private life. There is only one
life: your life.
And lastly, stay healthy and fit, and reward yourself regularly.
A healthy body is home to a healthy soul, increases your
confidence and curiosity, and makes you more resistant to
stress.
Now, take a look at your list. These top five things should be
what you put most of your time and energy into. But do you
really pull that off?
When you’re arranging your time slots, there are a few things
to remember. The first is that energy levels
fluctuate throughout the day. So don’t try and schedule
laborious tasks for the middle of the afternoon if you’re
usually sleepy then! You’ll thank yourself for it later.
These are activities that you do because you enjoy them. But
what if you just don’t have room for “me time”? Short
answer: you do. It’s all about being smart with your
scheduling.
You can also make a hitlist of the things that make you
happy. Keep this list handy so that you know exactly what to
fill an unexpected free slot with. Even little things, like a half-
hour nap or a cup of ayurvedic tea will lift your mood more
than you expect!
Once you’ve found time for a few self-care rituals during your
week, start making time for more. But what if your slots are
all full?
Take a closer look: you might be losing time without realizing
it. When was the last time you signed onto Facebook or
Pinterest? More importantly, how long did you spend
scrolling? Social media sucks up a lot of time. It’s time to
break the habit! Delete apps from your phone or log off to
reduce the temptation and enjoy your newfound free time.
Finally, don’t be afraid to ask for help! If you’ve got the funds
for it, think about getting a virtual assistant or intern to help
you out with menial tasks that you don’t have time for. You
don’t have to go it alone! Remember: self-care isn’t a luxury.
It’s a necessity – and one you’ll truly be thankful for.
The next step for your one-page plan is all about putting your
vision, mission and objectives into action. For this, you’ll
need strategies. If your vision is to give women aged 25 to 35
a product that will improve their lives, then you’ll need to get
in touch with them. You could create a targeted marketing
campaign or establish a presence at local trade shows.
You may feel a little daunted by your plan as you write it.
After all, you’re making a lot of promises to yourself here! If
all the decisions to make and steps to take seem
overwhelming, just think of all the resources you have.
So, you’ve made a killer business plan and time to take care
of yourself. And yet ... something seems to be standing
between you and the success you’re aiming for. This would
be a good moment to take a closer look at your working
methods.
If you’ve got a big project and don’t know where to start with
time management, then it’s time to map it. Break your
project down into smaller tasks and outline the time you’ll
need to complete each of them.
Finally, get calculating with the 80/20 rule. This means you
only deal with the 20 percent of tasks that give you the
greatest returns. Armed with these tools, you’re set to show
the market just how powerful mom entrepreneurs really are!
Moore’s Law
This gave Noyce an idea: Intel could get into the personal
computer industry by producing the rest of the kit along with
each new chip.
The futurist Ray Kurzweil has suggested that the first human
being who will live to 1,000 has already been born. Even if
this prediction is still a longshot, advances in medical
technology and better living standards are making it easier
for people all over the world to live longer.
Have you ever heard of Hsinchu? Few people have, yet this
northern Taiwanese city is home to many of the world’s
largest and most advanced electronics companies.
One reason for this shift was the crisis of 2008 and the
subsequent global recession, which had a greater impact on
Western countries. The shift also occurred astoundingly
quickly.
Just consider the fact that 20 years ago, less than three
percent of people in the world had a cellphone, and less than
1 percent had reliable access to the internet. Today, some
two-thirds of all people own a mobile phone, and one-third
can access the internet!
The revolution in technology has also meant that consumers
are adapting to market changes faster than ever. Once
Alexander Graham Bell invented the telephone, for example,
it took some 50 years before even half of American
households owned a phone. Yet a mere five years after the
first iPhone was introduced, half of all Americans owned a
smartphone.
Would you want to live to be 100 years old? Given the rapid
pace of technological development, you just might. Yet a
world with a large elderly demographic will present many
new challenges.
Even though this trend has been obvious for some time,
governments, communities and even corporations have been
slow to come up with ways to adapt.
So you’ve seen how world markets are being shaken up, and
that as a result, global businesses can run into trouble. But
this shouldn’t scare you out of the game.
How can that be? Before 2008, cash was cheaper to acquire,
yet today things have changed. Capital now is more
expensive, which makes investing a challenge; and market
systems in general are more volatile.
Have you ever seen a product and thought, "I could do better
than that"? Or, while browsing the store shelves, been
suddenly struck with a great idea that will fill a gap, and
think: "Why hasn't anyone invented this yet?" No matter
what your inspiration or motivation is, now’s the time to
make something out of your idea.
One Simple Idea will teach you how to turn your passion into
a business and bring your product to market yourself. The
author provides a roadmap to guide you through the sticky
terrain of developing your one simple idea into a fully
realized successful business, providing you with tools and
useful advice along the way.
But even with the above in your favor, you’ll still need a lot of
guidance. So find yourself a mentor who can give you some
practical, firsthand advice — ideally someone who’s already
successfully launched a similar product.
Starting a business for the first time can be scary, and you
might even find yourself wondering if you’re cut out to be an
entrepreneur.
Also, passion helps you to face the risks and survive the steep
learning curve that starting a business always presents.
Believing in your idea will spur you to be innovative and
opportunistic whenever the business needs it, and to
motivate you to learn from the mistakes all businesses make
when they are young.
After you’ve gotten to know the market, you need to find out
as early as possible whether your idea is a potential “money-
maker.” This involves ensuring your product will sell for a
certain price and in a high enough volume, and that the costs
to produce it will still give you the desired profit.
For tax and legal purposes, you need to set up your business
entity and decide which structure fits you the best. For
example, becoming a limited liability company or a
corporation has the advantage of protecting your personal
assets, while a smaller and simpler legal entity saves you a lot
of time and effort.
Finally, keep the creative juices flowing even if your first idea
is a market success; you need to stay current to stay ahead of
the pack.
“Free” money.
If you can’t make your product at the right cost, you’re not
going to make a profit. It’s essential, therefore, to find the
right manufacturer. Most contract manufacturers specialize
in a certain area, so some might have the experience and
expertise you need to produce your product.
The best way forward is to start small with orders from a few
local and regional stores.
How?
As you can see, keeping an eye on your cash flow will help
you manage your inventory by enabling you to better
coordinate your production with your customer orders.
This means that your brand has to work and sell without you.
So, while setting up your business and building the brand,
imagine that you're writing a playbook that someone else can
follow in your absence. However, you should remember that
increasing your sales is ultimately what will make your
business more attractive to potential buyers.
The result? They sold fewer PCs than other companies sold
components.
Although it’s clear that any change in these forces may alter
the way that companies can succeed in a given market, it can
sometimes be difficult for a company to spot even a major
change.
Since some of these six forces are easier to spot than others,
companies should be on the lookout for any changes which
might affect them.
In large companies, it’s the CEO who must have a clear vision
of the company’s future. They have to communicate their
vision clearly and constantly, as failure to do so can have
negative consequences.
For example, until the memory crisis of the 1980s, Intel had
been the memory company. Andrew Grove, its CEO (and the
book’s author) insisted that the senior staff redefine Intel as
“the microprocessor company,” and though there was an
initial resistance, eventually many of the staff appreciated
having a new vision they could champion.
The simpler the message, the more effective it will be. One
reason for this is that simple messages tend to stick in the
mind, and they may also give people a sense of security.
Another reason is that they’re more likely to be picked up
and reproduced as headlines and soundbites by the media.
In short, the moment a company arrives at a new vision for
its strategy, that strategy should be communicated clearly –
in words and actions – so that employees and the outside
world can learn of the change and react accordingly.
POP!
Create the Perfect Pitch, Title and Tagline
for Anything
Create pitches, titles and taglines your audience can’t
forget.
The answer is simple: the ads that grab your attention are
the ones that POP! – or that are Purposeful, Original and
Pithy.
You have to do your best with the most powerful tool you
have – the core words that embody your idea – and catch
people’s attention with an original phrase. This means you
need to push your creative potential and create a one-of-a-
kind name.
And if you’re successful, the media will help you out for free.
Why?
Because the media is always on the hunt for the next big
thing to report. This means that if you can come up with a
catchy word or phrase, you not only get the attention of your
customers but also get free advertising through media
coverage.
One way is to use “Spell Chuck,” and discard the normal way
of spelling things. For some reason, beauty salons seem to be
very good at this:
Consider Shear Genius, Curlup and Dye and Cut and Dried.
You can extend this wordplay approach and try playing with
the last syllable, or add a prefix (e.g., re-, multi-, pre-) or
suffix (e.g., –ly, -ology, -ish) to your core words. For example,
consider the new word re-newlyweds that describes couples
who have renewed their wedding vows later in their
marriage and are “wed” once more.
Review your core words and try to find new words that form
a series of alliterations. You can also run the first syllables of
each word through the alphabet to potentially create an
interesting neologism while you’re at it.
Another way of increasing memorability is summed up in a
Duke Ellington song title: “It Don’t Mean a Thing If It Ain’t Got
That Swing.”
If you still doubting that rhymes help you remember, try this
on for size: if you were asked to think of two instinctive
human responses to danger, what would they be?
How?
Start by asking yourself: what do your current or future
customers say or think when they experience the need your
idea fills? What could a possible “Eureka!” or “At last!”
moment feel like, when the customer’s problem is finally
properly addressed? By placing yourself in your customer’s
shoes, you’ll realize exactly what they need – and how to tell
them that you’ve got it.
She then ran the name through the alphabet and voila, there
it was, Dalai Mama, two words that instantly communicated
what Amy wanted to say.
Probably not – but there are some methods you can use.
You can also raise your sensitivity to the timing and context
of your humor, which is just as important as the content.
Watch carefully how comedians deliver their lines, and try to
be surprising and out of the blue with your jokes. But when it
comes to creating your memorable messages, remember to
pay attention to your purpose – don’t be funny for funny’s
sake, and always relate your jokes back to your core words to
keep on message.
The problem with jokes, however, is that they can easily lose
their novelty factor. And there’s nothing more deadly to your
likeability than using clichés. However, rearranging clichés to
make them fresh is fair game – and can even be powerful.
Here’s a systematic approach to rearranging clichés. First,
enter your core words into a cliché search engine, like
ClichéSite. Then write down everything you read that makes
you giggle or creates a quirky connection to your core words.
Then, substitute or rearrange the key elements of the original
cliché with your core words to turn an eye-roller into an eye-
opener.
But before you start creating visualizations for your idea, you
need to ask yourself what attributes your product has, and
how those attributes are embodied in the real world.
Why?
But when she left the mall, she smelled the delicious flavor of
chocolate-chip cookies being sold on another counter. No
one had to approach her – she couldn’t resist the sweet smell
and bought a whole batch of her own free will. That’s when
she came up with the title for her new book: “Chocolate-Chip
Cookie Marketing: The Anti-Hard-Sell Approach.”
Pitch Anything
An Innovative Method for Presenting,
Persuading, and Winning the Deal
You must tailor your pitch to the audience’s croc brains.
When you pitch, you use your neocortex to put into words
the ideas you are trying to convey. Unfortunately, your
audience doesn’t at first process these ideas with their
neocortices. Instead, it is the audience’s primitive croc brains
that receive the ideas and they ignore everything that is not
new and exciting. Worse still, if your message seems abstract
and unfathomable to the croc brain, it might perceive the
message as a threat. This will make your audience want to
flee to escape the situation.
This is why you must tailor your pitch to the croc brain. Since
croc brains are simple, your message should be clear,
concrete and focused on the big picture. You also need to
ensure the croc brain sees your message as something
positive and novel, which deserves to be passed on to the
higher brain structures.
To secure your target’s attention, you must create desire
and tension.
If it is your frame that survives this clash, you will have frame
control in the situation meaning your ideas and statements
will be accepted as facts by the customer. This is a crucial
advantage in any pitch. Without frame control, you are
unlikely to convince anyone of anything.
You will often encounter the power frame, time frame and
analyst frame, hence you must know how to counter them.
Typically, your target will use the power frame which exudes
arrogance. You must not do anything that validates the other
person’s power. Instead, use small acts of defiance and
denial to bust the frame; for example, by yanking your
presentation material away from the target if they do not
seem to be taking it seriously.
The first frame is the intrigue frame: you tell your target a
compelling story, a personal narrative where a dilemma is
solved. At the crucial juncture, you stop telling the story,
leaving your target on the edge of their seat, ensuring their
full attention.
Next, you pile on the prize frame, where you flip the tables
on the target: instead of trying to impress them, make them
qualify themselves to you. You could say something like,
“This deal has so many investors after it, I have to choose
who to take on board.”
Often your pitch targets will lay so-called beta traps to force
you into the situational beta position; for example, being
made to wait in the lobby is a classic beta trap.
You must try to ignore these traps and avoid doing anything
that enforces your opponent’s alpha status. Instead, use
small acts of defiance and denial to grab the situational alpha
status for yourself as soon as you can.
Say a customer has made you wait in the lobby. Once in the
meeting room, you could begin examining some papers on
the table in front of you. When the customer peeks at them,
you could yank them away and say something like, “Nope,
not until I’m ready.” If done in a good-natured, half-joking
manner, this enforces your alpha position.
Once you have alpha status, you must then steer the
discussion into a direction where you are the expert, much
like the golf professional talks about golf, not heart surgery,
when teaching the surgeon. To solidify your status, force
your opponent to say something that reinforces your alpha
position with a good-natured jest, like, “Remind me, why on
earth should I work with you guys on this?”
Before you begin any pitch, let your target know you will
keep the presentation short. This will put them at ease.
When Watson and Crick presented their Nobel Prize-winning
idea of the DNA helix, they only needed five minutes. If you
know what you are doing, you can pitch anything in twenty.
The three forces set the stage and paint a backstory for your
big idea, which should also be kept brief and simple. Use an
established “recipe” for this:
Yet just a few years later, Apple’s Steve Jobs identified the
same problem and created the iPad – a tablet computer.
More often than not, you’ll stumble upon a gap in the market
by sheer luck. To make your idea a reality, however, you’re
going to need market insight.
Market insight means you’re intimately familiar with how the
market in which you plan to operate works. You can then use
that knowledge to bring your plan to fruition.
A good story still has the power to influence how we feel and
what we think.
You can present your product and the problem it’s going to
solve in the form of a story. Doing so will allow you to convey
your point of view (POV) effectively – how you define your
company’s place in the world and how it finds solutions to
problems.
It’s not enough for the CEO to have a clear idea of the
company’s point of view, however. Every employee needs to
have a sound understanding of it, too.
The low fat Caffe Latte was introduced only once they were
sure it tasted just as good as their original whole fat Caffe
Latte. To those who aren’t particularly enthusiastic about
coffee, this may seem like a lot of effort for such trifling
issues.
Today Starbucks has 21,000 stores. But, even when they only
had 20, Schultz already knew he wanted to make it big. He
soon realized that his investments were most needed in one
area: infrastructure.
Invest in people who are smarter than you and then let
them do their job.
If you want to get ahead in business, the old “if it ain’t broke,
don’t fix it” mantra won’t cut it. Brand renewal, on the other
hand, will boost your success; the key is to change
things before they stop working.
Starbucks managed to apply brand renewal to a product as
old and traditional as coffee. And, the company applied
renewal at a scientific level. Don Valencia, a biomedical
scientist, began experimenting with coffee in 1988. His
research led him to develop a coffee extract, which he then
refined until it was completely indistinguishable from real,
freshly-brewed coffee.
It’s a classic story for big chains to sell their soul in order to
stay ahead in the game, but the same isn’t true for Starbucks.
Instead, the company takes the initiative to stay intimate
with its employees – no easy feat when there are about
25,000!
These blinks show you how your business can traverse this
perilous path and reach a level known as predictable success,
where you can plan your objectives and know you’ll reach
them. The blinks will also show you how to stay there. As
hard as it is to get to where you want to be, it’s just as tough
to stay relevant and dynamic. So, if you want to reach – and
hold onto – that sweet spot, read on.
First, a company will hit the early struggle. This initial stage
requires you to address two simple problems:
The author learned this lesson while helping Pizza Hut set up
new franchises in Ireland: even though the franchises were
convinced they had sufficient customer base to meet their
cash-flow demands, they quickly ran out of money. So, to
reiterate: figure out how much money your operations
require, then triple that sum.
Next, once you’ve identified a viable market and stabilized
your cash flow, you’ll be able to move into the second
stage: fun.
But it doesn’t have to be that way. Any company can get out
of the whitewater through effective management: make sure
your sales and operations teams are working together
closely. If your sales team knows how much their operations
counterparts can handle, they can better manage customer
expectations.
After the treadmill period, companies may fall into the big
rut – the penultimate stage of organizational development.
This occurs when businesses lose sight of their mission,
shifting their focus away from the customer and wholly onto
the company itself.
That way, you’re more likely to find someone who’s the right
fit for the organization. What’s more, by allowing people at
every level to make decisions, you simplify and speed up the
process. No one wants to wait around for overworked
managers to make the call.
The author would advise this CEO to break free from his
system and create regular “office hours,” allowing employees
to drop in for an impromptu discussion. That would boost
creativity and create a beneficial feedback loop between
management and employees.
First, test the waters: don’t quit your day job to slave 100-
hour weeks, but rather gauge your enthusiasm by squeezing
in a few hours each week to work on your idea. You don’t
need to take on crippling amounts of debt either; just use
whatever facilities and equipment you have at your disposal
or can easily afford. Only use external investment as a last
resort, as it will not only dilute your stake in the idea but the
process of looking for funding is time-consuming and
distracting. In most cases, all you need is a laptop and an idea
to get started; everything else is peripheral to your success
anyway.
The only way you can attain the sense of urgency and
devotion that running a successful company requires is by
doing something that matters to you. If you’re going to do
something, make it something you can be proud of.
Relish the good sides of being small, but don’t forget you
are running a business.
For example, having less mass and being off the media radar
allows you to experiment with your business without
potential screw-ups being publicized. Just like Broadway
musicals are first tested in smaller cities before reaching New
York, you too should take advantage of your obscurity in the
beginning to experiment with different ideas and processes.
Being small also allows you to keep your entire team on the
frontline of the business, interacting with customers
firsthand and hearing their requirements and feedback. A
complex hierarchy can muffle that feedback and slow you
down. When everyone is responsible for customer
satisfaction, you can respond to any problems quickly, which
is essential for effective customer service.
If you treat your team like children, they will act accordingly,
and you will need to spend half your time managing them
and making decisions on their behalf. Your team will quickly
turn into non-thinkers and non-doers, and end up costing you
a lot of time and effort while accomplishing very little.
Instead, just wing it. Don’t make decisions far in advance but
rather on the spot. Think about things that affect you this
week, not next year. Small, reversible decisions that work for
the time-being are much easier to make than big, life-
changing ones where you have to worry about long-term
consequences.
By contrast, being able to live off and even thrive from one’s
art is a dream that most aspiring creatives share, and these
blinks will explore how this lofty dream can become a reality.
However, while the starving artist thinks they already have all
the talent it takes, the thriving artist expands their skill set by
seeking an apprenticeship under a true master – as
Michelangelo did when he studied under the renowned
Renaissance painter Domenico Ghirlandaio.
Suddenly, for the first time in years, Halligan felt alive – and
this feeling grew as she began to sell prints of her cartoons to
her readers. Soon, she was starting a new art blog and taking
on clients, such as banks and universities, who liked her
motivational cartoons.
But an artist can use the internet for more than just sharing
their art with people.
You can practice guitar in your bedroom for years and only
improve so much; once you start playing in front of an
audience, you’ll start playing better than you have before.
This is the simple rule of the audience.
One of the worst habits an artist can get into is working for
free. This often happens when someone tries to tell you that
a project will be “good exposure” or a “valuable
opportunity.” But much like the unpaid internship, it’s often
just a way for someone to exploit your talents and take
advantage of you.
So, the bottom line is, if you want others to respect you, you
have to take ownership and always charge money. This way,
you can take part in the New Renaissance, which we’ll have a
look at in the last blink.
The New Renaissance is here, with artists that have a
diverse set of skills and don’t starve for their art.
Since there have never been more ways to share the art we
create and get our hands on the tools we need to make art,
we are seeing the dawn of a New Renaissance.
So, get out of the starving artist’s mind-set and enter the
psyche of a thriving artist by studying and stealing from the
great artists. Then, find an apprenticeship to learn from a
master, and if you venture out on your own, be persistent
until you find your audience.
These blinks will show that letting rejection rule you is a big
mistake. If you look at rejection from a different perspective,
you’ll discover that there’s a lot to learn from it. And it isn't
just about learning how to be more successful; it’s about
growing as a human being.
It’s not so hard to get yet another job or promotion, but not
pursuing your lifelong dream is a heavy burden to bear.
It’s true that fear might have saved our ancestors’ skins, but
today it’s more handicap than precaution. So to understand
the positive aspects of rejection, we need to reframe our
concept of it.
It’s a good idea to stick around and ask why you were turned
down. This makes a rejection easier to deal with, and helps
you formulate a more successful strategy next time.
She wanted to see if her reasons and the way she phrased
the request had an immediate effect on the person’s
response. She found that it did. If Langer offered an
explanation, even a trivial one, to jump the line, the
percentage of people willing to let her do so rose
significantly.
One of the people the author spent time with, a man named
Frank, related an incredible story. He had served in Vietnam
until he suffered an injury, which prevented him from
fighting further.
Remote work isn’t just good for employers, but can also
improve employees’ quality of life.
Yet with remote work, you can find more time without
having to choose one or the other – your hobby or your
career.
You can ignore emails that aren’t urgent until you finish your
own work; you’re protected from pestering co-workers; and
you can tell your spouse that you’re unreachable until noon.
In this way, remote work can allow you to better focus than
you would if working in an office.
We’ve seen the benefits that remote work can offer. But if
working remotely is so great for both employees and
employers, why do so many companies still resist it?
This way, you can see for yourself whether remote work is a
good option for your company and can get an idea of what
you’ll need to pay particular attention to, before allowing
more employees to work remotely for a longer period of
time.
It’s a fact that no one can work 24/7 without having some
sort of social interaction, and remote workers especially so.
We all need to unwind from time to time, and it’s ideal when
employees can do so with other colleagues to build and
maintain a sense of team spirit.
His search led him to hire the authors, who conducted 100
interviews with young women to gather data on their
relationships to the brand.
The results?
Did you know that the most loyal customers to a brand can
generate up to eight times more revenue than their personal
purchases alone?
The more loyal a customer, the more they pitch your brand
to others. These are your apostle consumers and they’re
worth more than anything else. So, while these dedicated
consumers will return time and again to buy your products,
they’ll also spread the word about your company.
In the same way that good wine doesn’t start with bad
grapes, passionate employees need to come prepared with
the right attitude on day one.
But building a stellar team is just the first step. Once you’ve
got one, it’s important to care for your employees. In the
end, the better you are to them, the better they’ll be to your
customers. In fact, a golden rule of customer service is to
treat your employees like you want them to treat your
customers.
Meet the four “D’s” that can grow a company, double your
cash flow, triple profitability and increase value tenfold!
Imagine you’re an executive manager at a 500-employee
company. Your CEO has just informed you that by the end of
next year, the company will comprise over 1,500 employees.
What would you do first?
Finally, it’s essential that you know which questions are the
most pressing ones and start making decisions. When scaling
up, a company should start by tackling the biggest issues first,
then working through other problems – in the same way you
might fill out a sudoku puzzle. Start where you can and
proceed carefully.
Make sure that the right people are doing the right things –
and doing them correctly.
No executive team could ever declare that everyone was
responsible for marketing without something going wrong.
We need clear responsibilities, otherwise nobody can be held
accountable. And a lack of accountability is a surefire way to
drive a business to collapse.
The processes that drive the business and the people who
are responsible for them should also be specified. Enter the
PACe.
Now that your vision summary is ready, you’ve got the bones
of a clear strategy. But if you want to reach your goals even
more quickly, you should understand exactly where your
organization’s strengths lie.
The next place to look for your strengths is your X factor. This
is a small strategic detail that differentiates you from your
competitors. By recognizing it, you can turn it into a
competitive advantage to multiply your revenue.
Great firms are like great jazz bands. Even without a strict
plan, they’re able to work together with confidence. But, like
members of a band, your team members should know their
parts and practise together too. That’s why meetings are so
important.
Even spending just five minutes every day with your team
could help solve small dilemmas much faster. In Managing
Up: How to Forge an Effective Relationship With Those Above
You, Rosanne Badowksi says that meetings needn’t take up
more than ten percent of a standard work week for senior
leaders and five to seven percent for middle managers.
Perhaps you’ve looked at your CCC and seen that you need to
improve your cash flow. Not to worry – it’s just a matter of
tweaking here and there.
With the Power of the One you can work out which factor can
reduce costs in the most efficient way. In this method, you
attempt to visualize how a one percent or one day change of
each of your potential levers would affect your cash flow.
Far from the money you think you want to come in, it’s the
money going out that matters. Revenue means nothing if you
are spending more than you earn. Profit is king, and these
blinks show you how to go about securing it.
If you’re worried that the salary cap will limit your company’s
ability to perform, consider Bill Belichick’s many victories (the
New England Patriots coach has won the Super Bowl a
disproportionate number of times), which observers
attribute to his savvy navigation of the National Football
League’s strict salary caps.
Pay attention to the four forces of cash flow: tax, debt, core
capital target and distributions.
It’s important that you keep these forces in mind and follow
them, as unquestionably, there are always highs and lows in
the business cycle. You will experience periods when money
is tight – just think about tax time when all that cash flows
out of your bank account!
But what should you do if you don’t have that much money
to invest upfront? It’s called sweat equity.
Since we’re forecasting cash flow, your P&L history will also
reveal payments that haven’t yet come through. This
information will allow you to predict future cash flow and
also spot any discrepancies.
And that gets to the power of forecasting – going back
periodically and checking the accuracy of forecasts will give
you insight into potential problems, before they do too much
damage.
And once you’ve done that, you can then ask yourself: Have I
reached my goals? Am I moving in a positive or negative
direction?
When you apply for a job, you have specific ideas about the
tasks, the culture, the expectations, and so on. But have you
ever found that these ideas turn out to be completely
divorced from the reality of your work?
Added to this, firms in the United States with fewer than 500
employees account for thirteen times more patents per
employee than larger firms.
Not only that, but you’ll likely need quality partners and
employees, and finding them can be time-consuming and
unpredictable.
Do you have any idea who Google’s seventh hire was back in
1999? Probably not. Back then, Google wasn’t cool. However,
this person probably had an incredible experience and is now
loaded. Rather than starting your own firm, another
attractive option could be joining a young, promising start-
up.
Now you should have a good idea of what you need to focus
on for your first adventure in entrepreneurship. But you’re
only one person! The final blink will look at ways to get
college graduates to see the value in entrepreneurship.
Start-Up Nation
The Story of Israel’s Economic Miracle
Learn what drives a nation’s start-up spirit.
But it’s not just Talpiot graduates who enjoy this kind of
training: every military unit provides training in innovative
and adaptive problem solving, which is helpful in business
environments.
Start-up Wealth
How the Best Angel Investors Make
Money in Start-ups
Make smarter investments, like a top angel investor.
Have you ever wondered why there aren’t more people like
Bill Gates? The answer is simple: not all business ideas have
potential. This is a problem with which every budding
investor has to wrestle.
But of course even the most exciting products can fail. So,
before making an investment, Feld ensures that the product
has been properly road-tested with the company’s target
audience.
But sometimes, it’s not so easy to make the call alone. This is
when you need other investors around you.
Catherine Mott, an alternative investor, is part of an angel
group. Here’s why:
This is where fellow angel investors come into play. They can
offer you critical opinions that might bring you back down to
earth, allowing you to make a more rational, informed
decision.
But we’re not quite done yet. Next, Mott examines the target
market, in light of the business model or product. This
process takes between four and six weeks, depending on the
quality of the team.
This shows that you don’t have to look far to find a problem
needing a solution. Observe your surroundings, focus on
what interests you and pay attention to the problems people
run into. An unsolved problem can be just around the corner.
This is also what Yelp did in its first year in San Francisco. By
focusing on one city, they proved they could gather an
abundance of reviews and create an entire entertainment
guide for the area. With their reputation in San Francisco
cemented, they could then move on to the next city.
Otherwise, you run the biggest risk that comes with the
freemium model, which is giving customers no clear reason
to upgrade.
But, like the freemium model, the ultimate goal is for the free
content to draw in paying customers.
Free tools like this usually end up being good for both your
business and your customers.
The good part about virality: it costs next to nothing. The bad
part about virality: it usually happens unintentionally and
without a clear reason.
The articles that Upworthy uploads are all tested to find the
virality “special sauce.” An article might be given up to 25
different headlines to find out which one will generate the
most clicks!
Another way for websites to improve exposure is through
social platforms.
Startupland
How Three Guys Risked Everything to Turn
an Idea into a Global Business
Improve your chances of standing your ground in the land
of startups.
At first, few people had faith in the idea for Zendesk, as they
weren’t inspired by the thought of a company focused on
providing better help desks and customer support. Alex
Aghassipour, who ended up becoming one of the company’s
core members, initially thought Zendesk sounded incredibly
boring.
Asking your friends and family for money isn’t easy, however.
The author’s advice is to have low expectations, refrain from
giving investors any influence and be prepared to disappoint
people – you might even lose some friends.
After the Zendesk founders had raised enough funds for their
business, they were contacted by another angel investor.
Instead of turning him down, they accepted his investment
too, which allowed them to grow even more ambitiously.
What’s more, they gained a new, experienced financial
partner.
Did you play team sports in gym class as a kid? Which team
member was the most fun: the person who wanted everyone
to participate and have a good time, or the star player who
scored all the goals but did it alone? Of course, it’s the
former.
The author lost his temper once during this stressful time,
and at one point when he wasn’t able to persuade his two
partners of the switch, he yelled at them during a meeting
and stormed out. The next few days were awkward, but
things eventually settled down. The team members came to
accept that getting major funding was the only way forward.
For one, it’s hard to take financial risks when you have a
family. The author struggled with this when he accumulated
a lot of credit card debt and used up his retirement money
while building Zendesk. He also took out a $50,000 loan that
he was personally liable for. At one point, he was two weeks
away from going bankrupt if he didn’t get more funding.
The author’s work also created stress for his family when
they had to move from Denmark to Boston. This was made
even worse when they arrived in Boston that summer only to
discover that their air conditioner had broken down. The
young family had to walk around the house in their
underwear for two months.
The stress for the family didn’t end with that move. In fact,
not that long after, the family had to move from Boston to
San Francisco!
The family moved west when Zendesk got a new, $6 million
investment deal with a company called Benchmark, which is
based in San Francisco. It was a hectic time for the family, as
they had to move on pretty short notice.
For example, when Zendesk was starting out, the author had
a few false starts while looking for funding. At one point,
when the company was still based in Denmark, he flew to the
United States to meet a partner in a venture capitalist firm.
But his timing could hardly have been worse: the 2008
financial crisis was underway, mortgages were no longer
available and big banks like Lehman Brothers and Merrill
Lynch had collapsed.
The worst mistakes you can make, however, are those that
affect your customers. The author learned this when Zendesk
planned a price increase and their customers turned against
them. Many of the customers’ comments went viral,
jeopardizing the company’s reputation.
Blakely failed at sports, singing and at taking the LSAT for law
school. And as a door-to-door salesperson, she failed to make
sales all the time. But she always owned up to her mistakes,
which is what allowed her to improve.
Being honest about your failures won’t bring you any closer
to success if you don’t keep striving after each setback. And
to do that, you have to believe in your vision.
Netflix co-founder Reed Hastings suffered a major public
backlash when the company decided to raise prices to cover
the costs of its new streaming service. As a result, some
800,000 people canceled their Netflix subscriptions!
But teams aren’t just good for geniuses, they’re good for all
of us. Having a diverse range of skills means that a team has
more resources from which to draw when encountering
problems.
Did you ever realize that the vast majority of small businesses
fail without ever becoming successful? Did you ever wonder
what’s so special about businesses that survive past the five-
year mark and then run smoothly ever after?
But if you start a business from the basis that you have
technical expertise and new ideas, you’ve already started on
the wrong foot. Your business will probably fail.
In the first stage, infancy, the owner and the business are one
and the same.
When she hires someone to help her, the business enters its
adolescence phase.
She could get small again, fire her employees and return to
her comfort zone, where she’s instead overwhelmed with
work.
Alternatively, she could go for broke and let the growth of
her business accelerate until it got out of control, hiring more
employees and accepting an inevitable decline in quality.
To save her business, the barista might have to close the cafe
for a few days to ponder
her entrepreneurial perspective and entrepreneurial model.
She could decide, then, that her target customers are eco-
conscious students and she’ll satisfy their needs by being the
first cafe to offer locally sourced milk and reading cubicles.
Why?
After all, how can you know what kind of business to build if
you don’t know what it’ll help you achieve?
At the beginning, the barista will fulfill all those jobs. She’ll
make coffee, bake cookies, design ads for local newspapers
and keep the books. But as the business grows, she’ll need to
know exactly how many people and for which positions she
has to hire for her business to run successfully.
Plus, the barista will learn the best approaches as she works
in each position. She should document them in a specific
manual for each position that can be passed down to future
employees.
For example, one way the barista could manage her baker
would be by telling him that he must stay in the kitchen and
bake a certain amount of cookies and cakes every day. Or,
alternatively, she could put him on display in the shop, front
and center, and even let him choose his own ingredients. The
latter option would probably result in the baker being more
enthusiastic about his job and customers consequently
enjoying better cookies.
What will your business look like after plotting out your
entire franchise prototype? It will be a complex, yet easy to
run, interdependent series of all the systems and processes
that make up the business, from marketing to management
to organizational structure, all the way back to
your primary aim.
You’ll have soft systems, the ideas and the living things in
your business, like yourself!
And you’ll have information systems, which will tell you all
the data on your business so you know what’s working,
what’s not and when it’s time to change.
It seems like all we ever hear about is how volatile the global
economy is. Since the 2007 financial crisis, many individuals
have taken extra steps to protect themselves. Once thought
of as a last resort, working two jobs is becoming a norm
today.
Take Joe Cain, for instance. A former cop, Cain built the
website sidegig.com, a platform where police officers and
firefighters could offer additional services, such as home
repair work or legal consultation. He didn’t take on his
website project out of financial desperation. Rather, Cain was
determined to gain new skills and opportunities.
With this list nearby, it’s time to hit the web. The internet is
full of creative, resourceful individuals selling goods and
services independently with the aid of online platforms. Take
Etsy.com, which allows crafters to buy and sell their
handmade items. If you can see yourself designing your own
jewelry, Etsy should be your first stop.
We can also find time for our second job by cutting back on
unnecessary things. By reducing time you spend on Facebook
or watching TV, you’ll free up whole hours in your week. If
you’re feeling inspired about potential second jobs and
motivated to start using your week more productively, it’s
time to progress to the next step.
After doing this for a while, get in touch with the author.
Don’t just think about what their friendship could offer you;
consider how your skills could benefit him or her, too, and
you’ll be off to a great start. At the same time, think about
how you can make it possible for other people to find you.
Having an online presence, such as a blog or an online shop,
is a great way to put yourself out there for others to find.
With a network established, it’s time to win the attention of
your target audience. Making guest appearances on different
blogs is one great way to reach out to new potential clients. If
you want to start selling your handcrafted jewelry on Etsy,
you could contact bloggers writing about design and art,
sure, but you could also get in touch with bloggers writing
about the materials you use or even about entrepreneurship
in general! Don’t be afraid to ask.
When these bad times hit, many people give up – but not
those with the right mind-set. They ride the entrepreneurial
roller coaster right to the end, until they have made their
company a success. So what is the right mind-set? Read on
and you will find out!
Passion is the key to getting through the hard parts, but how
do you find what you’repassionate about?
It’s clear that the quality of its food isn’t what took
McDonald’s to the top. Rather, it’s the company’s constant
attention to marketing and sales.
Just consider the great Miami real estate agent John Lennon,
who once sold more than $3 billion of real estate within six
identical buildings. What was Lennon’s key to success? Even
though all his units were the same, he never sold the same
thing twice.
With numbers like that, it’s no secret that hiring the wrong
people can cost you a fortune. But saving money isn’t the
only reason to prioritize finding the right people for the job.
You should discipline the employee and his manager for their
mistakes, right? Wrong!
Before you knew it, your business was struggling and your
passion was gone. Put simply, you can’t live somebody else’s
dream.
The trick? Agassi was doing it for himself and nobody else.
You too can start living your own dreams today, beginning by
trusting your own judgment.
Take Jeff Bezos, who years ago was a successful New Yorker
with a high-paying Wall Street job. One day Bezos had the
idea to open an online bookstore. He took the idea to his
boss, who shot it down, deeming it too risky. But Bezos
followed his own judgment. He quit his job and started the
bookstore, which became a company you may have heard of:
Amazon.
In these blinks, you’ll learn how you can deal with challenges
just like the pros so when you’re ready to launch your start-
up, you’ll handle the worst without breaking a sweat.
The skills that Nalls gained at GTE guided him through several
other small companies before he started Masergy on the
strong foundation of his acquired knowledge.
You have to find a balance, however. While it’s true that the
more time you spend as an employee, the more social capital
you can build, be careful not to find yourself handcuffed to a
career while your dreams of becoming a start-up founder slip
away.
Two heads, the old saying goes, are better than one. If you’re
struggling to make ends meet while going solo, consider
finding a co-founder.
Before you do, take stock of your capital: social, human and
financial. Do you have enough of each? In which area are you
lacking? Identifying these holes will help you decide what
your potential co-founder should bring to the table.
Even if you have all the right capital, you may still want a co-
founder, as the tasks of your new business might be too
much or too many to handle alone. Or perhaps you’d rather
focus on raising money and not human resources, for
example.
So if you’re the person who has quit your day job to work
full-time on your start-up, or the person who has invested
the most seed capital, or the brainchild behind the original
idea – then you’re usually CEO, regardless of your actual
strategic or leadership abilities.
But does this actually work? A better strategy for the long-
term health of your company is to delegate roles according
to your co-founders’s actual skills.
Raising money might get your product built faster, but then
you’re on the hook to your investors.
Spend or save? This seemingly simple decision becomes a
crucial one as start-up founders begin to grow their ventures.
Why did they do this? “We just felt that we should go sell
something [first],” Jim said at the time.