Entrepreneur: Be Disruptive

It has been well documented that it is easier now more than ever to start a business.  I hope you get as excited as I do when I read that sentence.  The ease of starting a business now is due to the evolution of technology, its efficiency and effectiveness, increased reach, and affordability.  Think about all the apps and websites out there that offer business management tools and creative interfaces that are user-friendly and very affordable, sometimes even FREE.  Moreover, the quality of these services and products are getting closer and closer to what a professional accountant or graphic designer would charge premium dollars to execute.  So what does that mean? Start a business NOW!? Well not exactly, as the barriers of entry fall, the more competitors enter the market, the lower the profit margins become, the more a company has to innovate and disrupt.

Disruption and innovation have always been essential for new companies entering an established market place with many competitors and industry leaders.  The only difference now is that everyone and anyone can start a business and enter a market place; no matter the location, access to capital, or industry experience.  However, just because it is easy to start a business does not mean you should, or  for that matter, if you do it will be successful, make you rich, etc.  I believe it is the opposite.  Yes it's easier, and you can start and run a global business from the comfort of your own home, but that just means there are more people doing it and most likely failing at it.

When you enter an established market place it is more important, now more than ever, to come in and make a splash, shake things up, and make a name for yourself as quickly as possible.  Disruption is, in my opinion, the most important attribute any SMB or Start-up should posses.  By definition disruption is a disturbance or problems that interrupt an event, activity, or process.  Therefore, as an entrepreneur that has an idea or wants to launch a business, the first things you should ask yourself is, how can I disturb and/or interrupt the existing market place.  How can I get my product/service out into the market place with the least amount of resources (capital, people, infrastructure, etc.)?  Without a disruptive plan starting and launching a business can be difficult, far more difficult than with a plan to disrupt the market.  Think about it, you want to start a car/ride sharing business but plan on replicating the existing taxi and limo service business models.  What do you think your chances are in capturing even a fraction of a percent of market share?  I'd say slim to none.  These services have been in existence for 50 plus years, and are entrenched in every major city with strong unions and political leverage.

So what do you do?  You disrupt the market, interrupt the normal way of doing business.  You innovate.  You change the way things are done.  You let the competition know you are for real.  You capture as much market share as you can, and quickly!  Look at what Uber and Lyft are doing.  They are now approaching the market leaders in this space, with the taxi and limo unions doing everything they can to stop them, or at least slow them down.  They leveraged technology to disrupt an inefficient, archaic business model, which is happening across many long established industries: Music, Entertainment, Razors, Higher Education, Business Management Services, Financial, Automotive, etc.  Disruption is happening everywhere and it is only going to continue.  It is essentially the new economy where entrepreneurs, SMBs, and Multi-Nationals are in a race to see who can shake up the market place, drive revenues, and become/remain market leaders.

With that said, should you start a business?  I can't say for sure as that is up to you.  However, if you do, make sure you have a disruptive plan in place from the jump.  Do not start a business thinking you'll be able to compete using traditional methods, business models, and techniques.  Go in and disrupt the market place, shake things up, challenge the norm, innovate, and be unique!

As always, I'd love to hear your comments and thoughts on this topic.

If you are in need of any business and/or marketing consultation, feel free to shoot me a brief introduction note at: modernbizstraetgy@gmail.com.

Cheers,

ModernManTellsAll

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Career: Know where you're going

Know where you're going...

To know where you are going is one of the best pieces of advice any one can receive.  I can't tell you how many times I've heard this growing up, from my parents, teachers, mentors etc.  However, I can tell you it is about just as many times as I've ignored the advice, not necessarily on purpose but more from being naive and inexperienced in life.  I was always one of those people that knew what I did not want to do or where I did not want to go, but that only gets you so far.  At some point you will come to a crossroads in life and you'll have to decide where you are going and where you want to be.  And having a general idea can be extremely helpful.

Although knowing where we are going and where we want to be is a great piece of advice, most go through life without an understanding of what they want for themselves, and what their purpose is.  Many of us let life dictate our future and our plans even if it is truly not where we want to be and go.  Napoleon Hill would refer to this as "drifting".  According to Mr. Hill, nearly 98% of the human population are considered drifters and only 2% are considered non-drifters; therefore the chances are, you, me, and most people you know are drifting.  There are countless reasons for why this happens and Mr. Hill goes in to the details in his books, Outwitting the Devil and Think and Grow Rich, and he explains it much better than I, so if you're interested I'd recommend giving them both a read.  I will, however, tell you that the act of drifting and non-drifting, for that matter, are in full control of the individual.

I actually have been drifting for the majority of my life.  Yea, I always knew what I did not want to do and where I did not want to go, but I never actually knew where I was going and what I wanted to do - until now.  So how did I figure it out?  We'll, it really wasn't rocket science, but it did take a lot of hard work, ups-and-downs, successes and failures, and mental toughness.  I'll outline 3 main steps that changed my path, and pointed me in a direction where I am excited to be adventuring towards.

1. Determination

Determination is what it takes to get through much of everything in life, but it is even more important when breaking out of the drifting mode and into the non-drifter demographic, which is not easy.  As everyone knows, life will always throw you "curve-balls" and try to beat you down, but it is how you choose to react to these life challenges that dictate the outcome.  You can't let these challenges have a negative affect on you, after all, you have a goal and an idea of what you want out of life and where you are going, so keep at it.  Take all those challenges and negative experiences and learn from them, but don't let them set you back - stay on your path and keep moving forward.  Believe me, I have gone through many ups-and-downs from moving to LA without knowing a soul to my dad passing away to leaving a job, laid off, etc.  But, in the end all has led me to where I am now, and mentally I've never been in a better place.  Determination is the one thing that has kept me going through all of this, and I believe it is the most important if one wants to break the habit of drifting through life.  Without determination one would try things a couple of times, maybe even just once and then give up - staying stuck in the same place mentally and physically.   I know this for a fact as I've had this mentality in the past.  I had no clue as to where I wanted to go and how I was going to get there, I just went with the flow.  After all, determination is what made Thomas Edison fail over 10,000 times before he came about the phenomena of electricity, which many of us take for granted as if it has always been a part of this world and human life.

2. Never stop learning

It doesn't matter what it is, never stop learning.  You could be the president and CEO of the biggest and best company in the world - think Amazon, Apple, Google, etc.  And the minute you think you know it all and stop learning, you will lose that competitive advantage, your job, the company will lose market share, etc.   In today's world, the information age, knowledge can be acquired quite easily and educating yourself should be at the top of everyone's list.  While you journey to where you want to go, gather as much information as possible along the way, on as many subjects, as you never know what you'll need on your way and when you get there.   Furthermore, as you learn new subjects and expand your knowledge of topics you already knew a bit about, your path and destination will become clearer with each step.  Maybe you had a general idea of what you want to do, the industry you want to work in, where you want to live, but as you continue to learn - the knowledge you gain may help you hone in on an that exact position, industry, company, city, etc.   Soon your vision will become a reality.

3. Write things down (your plan, ideas, tasks, etc.)

I know it sounds cliché' but it's true, write things down.  We all have ideas and plans in our heads, whether it be personally or professionally, your business plan, marketing ideas, etc., it doesn't matter.  If you ask me, if you don't have it written down you have nothing.  Now, I am not saying that having ideas in your head is a lost cause, quite the contrary, those ideas are the seeds that will lead one out of drifting and into the 2% of non-drifters.  The problem is a lot of us have those ideas for a great business plan, new invention, ways to find that dream job, where we are going - you get the idea; however, the majority of us do not act or succeed in transitioning these ideas in our heads into a reality.  As a matter of fact, for the majority of us life ends up dictating our situation and before we know it time flashes bye and it's either "too late" or the passion for that idea has left or the idea never was expanded on.  I know for me personally, writing things down, making lists, setting goals, and dates to complete "X" by this date has enabled me to have a clear vision of my plan to where I want to be/go.  To be honest, I tell clients that I meet with, many of whom are small business owners and entrepreneurs, where the most common thing among them is they all have plans and ideas, however, it is almost always in their heads, to write things down.  Write that growth strategy down.  Write the marketing plan down, etc.  How do you know how you are going to get there without having it written down?  How do you plan on tracking your accomplishments?  What if you forget?  How can I help you if we don't have it written down in a business plan, marketing plan, growth strategy, etc.?  The same can be said for ones life and where they are going...how do you know exactly where you are going and how you are going to get there, if it's not written down?

I really do not know if these steps will help everyone, but what I do know is this is what has enabled me to move forward and finally find a path to where I want to go, not just where I didn't want to go.  Now everything I do moving forward will be one-step closer in the direction of where I am heading instead of to the right or left, or worse, backwards.  And that is a pretty good feeling.

As always, I'd love to hear your comments on this topic, so please leave comments if you desire.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

Cheers,

ModernManTellsAll

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Business Strategy: Innovate

Innovation.  What do you think of when you hear the word innovation or innovate?  By definition innovation means a new device, idea, or method.  However, I, like many others, would say: Innovation, in business terms, is something that is tied to creating a new product, which is different from anything else on the market.  The iPhone, for example, would be an innovative product.  It changed the way we (humans) communicate with one another and interact with technology.  Everyone now has instant access to any information they desire, hundreds of thousands of applications that can perform any task and/or can "socialize" with a person(s) of their choice whenever and wherever they like.  This would be considered a radical innovation.

Innovation is most commonly tied to tech-based companies such as Apple, Google, Microsoft, Twitter, Samsung, Netflix, Amazon, etc.  Top 40 most innovative companies in 2014.  Companies that are driving how the consumer engages in their day-to-day lives.  Think of all the innovative products these companies have brought to the market in just the last 5 or 10 years.  Everything from iPhone, iPads, Google Glass, Samsung Smart Watch, Smart TV's, Nest, etc., and who knows what the next product will be.  The truth is technology, the way we know it today, is just in its infancy and will only become more advanced and integrated into our lives as time goes bye.

The above are all undoubtedly innovative companies and products, but does innovation only apply to these major companies or just in technology?  I'd argue most definitely not.  There are many other ways to innovate across all business units, and it does not apply only to a product or service.  Innovation can occur or be applied to anything from customer service, marketing techniques, business models, company culture, or overall strategy.

Customer Service is something all companies offering a service or a product engage in, no matter what the industry.  A company dealing in B2B or B2C must offer some form of customer service otherwise they would be unable to retain customers or garner new ones.  Take for example Time Warner's new customer service model - the one-hour service windows.  We all know the hassle of the four-hour service window and how inconvenient they can be.  In the past if you had a service inquiry you would get a time between 9am and 12pm or 1pm and 4 pm, and many times the technician would show up late or worse not at all.  This has caused a dramatic decline in their customer retention.  Well, to rectify this Time Warner has launched the one-hour campaign.  While this is only an incremental innovation it still is considered innovative.  Another example would be the banking industry.  I recently went out to inquire and compare small business bank accounts and found that the big three (Chase, Bank of America, and Wells Fargo) offer vastly different options, most of which are differentiated by monetary and customer service (incremental innovations).

Marketing techniques can also be innovative, and most of the successful brands have utilized this to capture market share and disrupt industries.  Think about all the advertisements we see on a day-to-basis.  Some studies have that number at anywhere from 250 to 3000 per day, depending on age group and where one lives.  This is astounding.  It makes one think how can a human brain digest and retain this mass inundation of advertisements?  Well, I'd argue it can't.   So how can a brand create a campaign that actually sticks in our minds and eventually persuades us to make a purchase - through innovative marketing techniques!  A brand that comes to mind (that is not considered a major global brand) is the Dollar Shave Club with their innovative and memorable ad campaign and video.  Although they did not recreate the wheel so to speak, they did use an innovative approach with a serious yet tounge-and-cheek style video, which intern caused the video to go viral and gain brand recognition.

Business Models, or how the firm plans on making money, is yet another way a company can innovate to gain a competitive advantage.  This to me is the most effective way to compete in a highly competitive globalized market place.  Not everyone has an idea nor the funds to create and implement a radically innovative product, however, if one can develop and implement an innovative business model they would have a fighting chance - even if they are offering the exact same product or service as the competition.  An example of this, again outside of the obvious major corporations, would be in my previous industry.  I worked in the music industry for over 6 years, and as we all know, the music industry is one of the most competitive and most effected by the advent of the internet, therefore competition is fierce with saturation on all fronts.  So how does one enter the market place and cause other, more established competitors, to notice?  By having an innovative business model.  There are a few that come to mind: one being Jingle Punks and the other Music Dealers.  Both of these companies entered the industry in 2008 and are now two of the most recognized in the industry.  What was their innovative business model you ask?  Well, they implemented a 50/50 business model where the artist splits the gross revenues 50/50 with the company.  Granted this is not a sustainable business model for any business in any industry; however, it enabled them to build their catalogs with above average content quickly - thus enabling their competitive advantage when marketing to and courting clients.

Company Culture is something that has been misunderstood and underestimated in the past, however, has made a rapid resurgence - becoming one of the most important factors for a business to succeed, garner market share, and attract top-level talent.  By definition company culture is the values and behaviors that contribute to the unique social and psychological environment of an organization. Many companies use minor incremental (sometimes radical) innovations in their company culture as a competitive advantage and to court and retain talent. A company that comes to mind is Zappos. They are known for their innovative cultural design which empowers all employees, encourages change and personal growth, creates a fun, light and positive environment, has an open horizontal structure, and has a list of core values that all employees adhere to. Their CEO Tony Hsieh has even written a book based on the importance of company culture called Delivering Happiness. Checkout their core values here.

Overall Strategy is something that all company's must consider, preferably prior to launching into the market, and should be monitored constantly and adapted as necessary.  By definition strategy is the quest to gain and sustain a competitive advantage.  Sounds simple enough, right?  Well, you'd be surprised how many companies (small and large) are lacking an overall strategy and are just "winging it" day by day.  A strategy is not just "let's make money".  It is the managers theories about how to gain and sustain a competitive advantage; How a company differentiates itself; What to and not to do, etc.  Furthermore, strategy is a combination of all of the aforementioned topics, and an innovative strategy is what separates a company from the competition.  A good and obvious real world example of this would be Google.  Google is by far the most dominate search engine with over 68% of the overall market share.  This is despite competition from Yahoo!, Microsoft Bing, and the Chinese search engine Baidu.  How can Google maintain such a dominant position in an industry where billions of people use the service on a day-to-day basis?  Innovative overall strategy!

As mentioned above, we are now operating in a highly competitive global economy and innovation is considered the most critical aspect of business moving forward.  It is no longer just a buzz-word, it is essential across all business units and industries.  If you're standing still, you're falling behind exponentially.


As always, I'd love to hear your comments on this topic, so please leave comments if you desire.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

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Business Strategy: True Company Identity

Follow @modernmantells

I see this far too often when consulting and communicating with friends and clients who own/run startups and small to mid-sized businesses - NO true company identity.  The lack of company identity is at the top of the list when it comes to failing small businesses and/or start-ups, and should be addressed from the initial launch if possible, as the longer this goes on, the harder it is to fix.  There is far too much competition in today's global economy to not have a company identity. What I mean by true company identity is: What type of product/service do you offer?  How much does it cost?  Who are your target demographics?  Is your product/service of poor, good, or great quality (hopefully good to great)?  What type of culture does your company have?  Does the branding of the company portray what you do?  etc.  The point is, potential and current clients must be able to identify with your product/service quickly, so when they are searching for it they can immediately identify what it is you do and what your company is about.

Now, I understand the fact that running a small business or start-up is extremely difficult (I've been there) and it truly is survival of the fittest.  In order to make bills and bring in cash many owners become frantic and will except any and all work, service a diverse set of clients, etc., as long as they are comfortable doing the job, selling the product/service, etc. However, this is only a short-term strategy and usually ends up costing the firm in the long-run.  For instance, let's say you have a small business with 5 or less employees, including you.  This is not a lot of people and one would assume your access to resources such as capital are minimal to nonexistent; therefore, everything you do needs to be calculated in such a way that nothing is going to waste (time, money, people, etc.).  Granted this is a lot easier said than done, when the reality and fear kicks in and you need to make X amount to make rent this month, things begin to scatter and unravel.  I'm sure many of you have been there, as I've seen it one too many times.  This is the reaction of a small business owner who has failed to create, implement, and communicate a true company identity prior to all the panic and fear setting in, I call this " survival mode", doing anything at all costs.

The problem with lacking an overall company identity, as stated above, is the issue of panic and fear will be reoccurring.  Yes, you may have a good month or two and think to yourself (or thank higher power) your problems have been solved.  Well, chances are this will happen again and again, and you will have a bad month or two in a row, then what?  The reality is, yes, you took in any and all jobs that you and your employees skill-sets can handle, however, your company is still lost and new and potential clients will not find you if your brand and company is all over the place.  So make sure  when it comes to true company identity you have one.

A new start-up or small business does not have the time nor the resources to continue down this path, so make sure your next venture, or this one, has been branded as such that it can be easily identifiable  to everyone - exactly what you do, your product/service, etc.  And once its identity has been determined commit any and all resources towards securing a favorable market share in that space.  Once a desirable market share has been obtained, then, and only then should you attempt to extend your product/service line, target markets, etc.   This is not to say, a company should not be thinking ahead and working towards a viable and sustainable vision for the company at all times; or taking on jobs that are not in line with the identity; if you have the time and resources by all means take on the work as long as it's not obstructive to your day-to-day operations.  And if you have dedicated yourself and your company towards this identification and things have not gone as planned, then adjustments need to be made accordingly.  However, I firmly believe that if a company has done its research and its leaders have properly created a true company identity, all resources are dedicated and focused on obtaining market share in that space, the company has positioned itself for success and a chance for survival, at least throughout the growth phase.

As always, I'd love to hear your comments on this topic, True Company Identity, so please leave comments if you desire.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

Ciao,

ModernManTellsAll
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Marketing Strategy: To social media or not

Follow @modernmantells

To use social media or not?  This is a question virtually all firms (small & large, public & private) in all industries should be asking themselves, and if they are not, they better start.

Flashback 10 years (web 1.0) ago and this question would not even had been an after thought, as many of the top social media applications did not even exist, or were barely in their infancy.  That said, some people/firms did see the advantages and effectiveness of what social media channels, namely Facebook, YouTube, and more recently Twitter, have to offer, enabling the competitive advantage of a having a head start.  The numbers alone on Facebook, Twitter, and Youtube were/are hard to ignore, even 5 or so years ago.

Now, in 2014, or web 2.0 as they say, the numbers are impossible to ignore, where YouTube now gets over 1 billion unique visits a month and 100 hours of video uploaded per minute! Facebook has well over 168 million unique visitors per month.  Twitter has over 48 million unique visitors per month.  LinkedIn (my favorite) is now at over 38 million unique visitors per month.  Pinterest now has over 38 million unique visitors per month as well.  Tumblr is now at over 24 million unique visitors per month.  Instagram has well over 200 million unique visitors per month.  Google+ now has over 105 million unique visitors per month.  There are countless other social media platforms out there, with new ones popping up everyday, however, many do not last, nor are worth spending valuable time and money on.  That said, the above are all well established social media sites, I did leave out Vine, which can be considered as a viable option as well, but not one for the majority of people/companies reading this post.

OK, so we know there are billions of people across the globe scouring the aforementioned social media sites, so which one(s) do you use?  Yes, it can be overwhelming when sifting through the various options social media has to offer, and they all have their own unique functionalities, audiences, communication techniques, etc.  For instance, not everyone that has a Facebook account will have a Twitter account; or someone that's on YouTube and Instagram may not use Pinterest, etc.  Therefore, a company must decide which social media platforms are the best options for their company and industry.

Choosing the right social media platform(s):

First of all, a business owner/marketing manager must ask the important/critical questions: Which social media platform(s) will garner the highest ROI?  What social media applications are my target audience(s) using at this moment?  What is the best way for the firm to go about courting new potential consumers?  What type of product(s)/service(s) does your company sell/offer?  What are the most effective communication techniques to apply on each individual platform? How much time/resources do we have to allocate towards social media? Etc.

Once the target social media platform(s) has been identified, then, and only then, should a strategy be developed.  But first, the business owner/marketing manager must become accustomed to the functionalities and nuances of the platform(s), and if they are not they should (must) find and hire someone that is well versed in social/digital marketing.  Some companies can get away with hiring social media interns as this is was common place a few years back; however, I would not recommend this as many times these interns will lack the awareness and knowledge of your industry and by the time they learn and understand it they will be long-gone; or they only make it a week or two and then you have to find another.  This process alone can prove to be quite costly, not to mention wasting your valuable time.  Nowadays, many colleges and universities are providing majors in social media/digital marketing, or at the very least, are incorporating social media/digital marketing classes into their Marketing programs.  I know when I was pursuing my MBA (as a Marketing major) at Northeastern University, we were required to take a digital marketing class, which proved to be extremely valuable.  As I stated above, all the social media platforms have their own ways of connecting and communicating, and not understanding this will result in a huge waist of time and more than likely - capital.

Moving forward, now you (or someone that does) have a firm understanding of which social media platforms work best for your company and the industry you are competing in.  Furthermore, you have analyzed and done some research on how they function and the nuances of how to communicate.  It is a great idea to checkout your direct competitors to see what they are doing (as far as content) and how they are gaining followers (potential customers), and which social media platforms they are using.  Usually this is a good indication of which ones work best, particularly if you pay attention to industry leaders that have a large number of followers and likes/shares.  Now it is time to develop an Integrated Marketing Campaign/Strategy, which is an entire different topic, and should be done by a trained professional or under the consultation thereof.

To Social Media or Not:

So the question is, to social media or not? Considering the alternative, I'd say it is not only wise to begin (if you have not yet) implementing a social media campaign (even if it's just an individual platform), but also is necessary if you plan on growing your business, increasing brand awareness and market penetration now and well into the future.  Not to mention the fact that social media is a great and affordable way to be creative and brand your company to your liking.  That said, if you are clueless as to how to utilize social media, or do not believe it is effective, I would recommend speaking with a marketing professional(s), researching online blogs, articles, competitors, etc., prior to allocating time during your work day to figure it out or "play around" as it can be extremely time consuming - hours could go bye before you even realize how to post a proper "Tweet".  In closing, I believe social media, when utilized properly, with an effective Marketing Strategy, is the most efficient and effective marketing tool to be implemented to date.  And as time goes bye this "web 2.0" is only going to grow exponentially, so to answer the question - YES, you should start using social media and get connected to your customers ASAP.

I'd love to hear your thoughts on this, so please do not hesitate to leave comments - I'll read them all!

PS - If you would like consultation on the implementation of social media and Marketing Strategies, feel free to email me at: modernbizstrategy@gmail.com.

Cheers,

ModernManTellsAll

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Business Strategy: Know your competition

There are many articles online (LinkedIn, independent blogs, etc.) and in informative magazines and publications (Entrepreneur, WSJ, Harvard Business Review, Fast Company, Text Books, etc.), which will tell you how to run a business, manage a start-up, what to do, what not to do, etc.; however, I'm going to tell you, it is just as important to know and understand your competitors.  It amazes me that in this day and age, where the global economy is fully entrenched in all industries, information is readily available and accessible to all - many companies still choose to operate as if they were the only firm in that industry.  You can have the best business plan in the world, but, if you are unaware of the competitive landscape (who your competitors are and what they are doing), that amazing business plan may be all for not.  You may even risk the possibility of a savvy (established, innovative) competitor, who is aware of you and your business model, to copy and implement it before your business even has a chance to get off the ground.  

I would like to introduce and explain some realizations that have come to my attention along my professional career and as I was perusing my MBA from Northeastern University.  

Global Economy:

The first of which is obvious but should not be ignored or discredited, the fact that we are now in a global economy, every industry is experiencing increased competition, and as the years go bye it is increasing exponentially due to third world countries, namely the BRICS nations; all of which are experiencing emerging economies as their access to resources and technology grows.  Many of these countries operate under their own proprietary laws and, maybe more importantly, have access to cheap labor – enabling companies to make products which are similar for much cheaper than in established 1^st world countries. 

Access to Technology & Lower Barriers of Entry:

Access to technology and lower barriers of entry go hand-in-hand as the former enables the latter.  The access to technology has essentially leveled the playing field when it comes to competition.  A small independent start-up now has the potential and access to the same technology as a major firm, which was not the case 10 or 20 years ago.  For one, technology (computers, internet, marketing channels, etc.) came at a much higher cost in the past.  Now the majority of people/businesses are able to purchase a computer and the internet, build a website, and market their product all with minimal capital investment.  A first-hand example of this would be the music industry.  The music industry was really the first to feel the effects of this in the early 2000s with Napster and other file sharing platforms, which essentially destroyed the major record labels.  I’m not saying whether this is or is not a good or bad thing, as the record labels failed to adapt and innovate quickly to the changing landscape; therefore it was of their own doing.  Fast-forward to today, where now every artist, composer, band and record label (large and small) has access to the same technology and clients for that matter, making for a highly competitive market place.  Furthermore, lower barriers of entry (affordable hardware and software) have been a major factor as well in regards to increased competition. Although the music industry was the first to be hit by this phenomena, it is a reality for all industries, and business owners must take notice.

Access to Information:

Access to information coincides with the above as it is technology based, however, it deserves its own explanation due to the fact that it is still fairly new and very important when analyzing and understanding your industry's competitive landscape.  In the past companies would have to rely on “insider” data or having to wait for a particular competitor’s TV/Print Ad to air, well that is no longer the case.  Now everyone has instant access to all the vital information they need – including websites, financial data, marketing techniques/strategies, operational methods, personnel, territories, etc.  Everything can now be accessed via the internet by searching company names, industry related keywords, social media, etc., so there’s no excuse not to “do your homework” (you may actually come up with an innovative idea along the way) and research as much as you can about what the competition is doing – smart companies are doing it everyday so don’t wait!  

Conclusion:

All of the above factors have led to increased competition and, in many cases, market saturation.  This trend will only continue as more and more countries and small innovative start-ups enter the global economy.  This does not mean that starting and/or running a business is not a good idea – quite the contrary, as it is a great idea (for certain people)!  The costs to start and run a global business is at all time lows, at least for those that know and understand how to leverage the above factors to their benefit.  Those that do not, and are stuck operating in an outdated business model will not survive in today’s world where you are either in the lead or falling behind.  And when you fall behind it can drain capital quick as you try and catch up - and when you do catch up, the competition may have already moved on to some other innovative business model or product/service.  Everything moves fast, including your competitors, so don't assume you are the only one out there, or implementing these techniques.  Remember, always try and stay in the lead or at least a close second.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

Enjoy the ride!

ModernManTellsAll

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Entrepreneur: Choose your Business Partners wisely

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One of the most important and critical decisions you will have to make when starting a business is who to partner up with.

There are many reasons why or why not to choose someone, some more obvious than others.  This blog is intended to breakdown what I believe are the five most important factors to thoroughly analyze and consider prior to moving forward with a decision. 

So you have a great idea for a new business, whether it’s an incremental innovation on an existing product or business model; or one that is brand new and/or is radically disruptive, chances are you wont be able to do it on your own, and I would not recommending doing so.  Therefore the question is: who’s the best man/woman to approach? 

Most people's first instinct is to work with someone that they know very well (friend or family member).  This may seem logical (initially) assuming you get along with this particular person(s), have known them your entire life, share the same interests, etc.  However, there is much, much more to selecting a business partner other than how well you know or "think" you know them, as things/people change when other variables enter the "frey" (e.g. money, egos, growth path, vision, exit strategy, personal goals, equity share, personal life, etc.).  As a matter of fact, choosing a business partner is kind of like dating (per say).

Personality:

Running a start-up is a roller coaster, you will experience many highs and lows, ups and downs, so you'll need someone that can roll with it and not let it bother them too much.  In fact, it is good to have someone that can make light of the situation (as long as it's not too serious).  Furthermore, their personality should complement yours, just like in a relationship you need balance.  If you're personality is super outgoing and forward, you'd want someone that is more laid-back and reserved. Everyone that has been involved in a start-up will tell you there are always issues and when there's not, there's one right around the corner; so you want to be able to rationally discuss the strategy on how to fix the issue with someone, and keeping the atmosphere light is extremely helpful.

Reliable:

This one is very important, particularly to me as it's a pet-peeve of mine.  It really irritates me when I am supposed to meet with a client or business partner and they are always late - time is precious to all of us as life moves very fast, especially in today's world.  The last thing you would want is to start a business and partner with someone who can not manage their own time.  To me this is a HUGE red flag.  As I stated above, when running start-ups issues are always showing face and when they're not, one is right around the corner.  Imagine how frustrating this would be if you had to handle the majority of them on your own, or had to wait to hear from your partner who is nowhere to be found.  This can sour a relationship/partnership quickly, not to mention the waste of time and capital - I've seen it first-hand.

Knowledge/Intelligence:

What I mean by this is, you want to partner with someone that either/or has knowledge of the industry and current landscape you are planning on entering and competing in; and/or has knowledge of some other aspect of the business which you are not an expert in or have little knowledge of (e.g. marketing, operations, sales, strategy, etc.).  Again, forming a business partnership is usually a long-term commitment and you want both partners to provide valuable insights consistently, and coming from a different perspective is always helpful.  Intelligence simply means that as described by its definition - the ability to learn and understand things; nothing is worse and more frustrating than dealing with incompetence, particularly in a business partner let alone an employee.

Resourcefulness:

This one is also extremely important, especially when launching a start-up, and as technology continues to take over all businesses, large and small.  When choosing your business partner you want someone who has a large diverse network and understands how to maximize its potential.  The majority of start-ups are boot-strapped and have minimal expendable capital to allocate to other resources other than immediate needs for day-to-day operations; thus the importance of having access to a diverse network.  Just as an example, you will need legal contracts drawn up; well these can be quite costly if you go in cold and do not know someone or someone who knows someone.  A friend of a friend may refer you to an attorney friend of his/hers and they may offer a discount or even pro-bono, who knows.  Further, there are countless reasons to contact people outside of your immediate circle, and with social media a diverse network is now more accessible than ever - easier to connect to professionals in all walks of life.

Vision:

When I say vision, I mean the vision of the company; does their vision coincide with your vision?  Where do you and your business partner envision the company being in a year or two or five?  What is your goal?  To build and sell quickly?  Grow organically and commit to a long-term plan?  License out the technology or product?  Bring in outside investors?  This is something that should be discussed at length prior to committing to an agreement with a potential partner.  If your vision conflicts with your potential business partner's, the relationship will go south very fast, and more issues will arise and compound - turning a potentially successful business into an unsuccessful one.  Furthermore, it is good to discuss the "what ifs".  What if this happens, what do we do?  What if that happens? etc.

Conclusion:

In the end, you want to work with someone that is not necessarily your best friend, but someone that understands what it takes to make a business successful.  You want someone you can depend on, bounce ideas off of, provides valuable insights, can laugh and keep things light; someone who is flexible and not hard-headed, is highly competent and can maximize their resources effectively and in a timely manner.  For the record, I left out an obvious one - TRUST - on purpose, as it is applicable to everything you do in life; if you don't trust someone, you should keep them at a distance, and definitely NOT do business with them.

This is my first independent blog so I know it's not perfect, but I enjoyed it and there will be more to come, along with some posts from other friends which I trust. HA!

Feel free to leave comments as I'm very interested in hearing what you have to say.

PS - If you are in need of any Business and Marketing consultation for your small to mid-sized business/start-up feel free to shoot me an email at: modernbizstrategy@gmail.com.

~Peace

ModernManTellsAll

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