When starting a new enterprise, there are many aspects of business which you will need to evaluate, learn and remember. Mind Maps are a brilliant way to sketch out the entire picture of what aspects you need to think about and when.
This mind map was created using free open source software called Free Mind. Download my own the editable file of the above mind map http://david.bozward.com/files/Motivated_Entrepreneur_Business.mm and save as to your computer.
It seems that most people expect others to finance their business. The fact being, that if you are not prepared to put your money in then why should others. Most people then give up on their ideas as they believe other don’t see the value in the business. This is not true.
The most important person who should believe in your business is a customer who is parting with their cash. This person is the top of the business value chain and is your champion, they are the customer and always always right. So find this person to help start your business.
You owe this person everything, because without them you have nothing. Even if you were able to get all the money in the world to start your business, yet had not a single paying customer then you still don’t have a business. I just have to say dot com.
Therefore, bootstrapping is the process of starting a business based on customers paying you for products and services. The profit from this sale (money) is put back into the business to fund the next round of customers. Each time you sell something you make a profit and the business builds it value. This is the way the majority of businesses start and grow. Therefore it should be a major part of your business plan, growth strategy and business launch.
When I tell people this they come back with:
So what if I need to buy some major equipment? Lease it and ensure the profit is still there based on the sales and cash flow.
So what if I need to have some offices? You can only afford offices once your cash flow provides the capacity to do so. So either hot desk or find a more cost effective solution.
So what if I need to hire 50 people and a large factory to make the product? You will have to outsource the production and pay for the completed products.
Bootstrapping allows you to own your business from the very start which means you will always be in the most powerful position when it comes to dealing with new shareholders, banks, suppliers, customers and staff.
At this time of year there are two types of businesses, those which are the middle of their best sales and distribution period and those winding down for the Christmas break.
Which one are you?
For those of you winding down, it’s the best time to start planning for the New Year. Don’t wait until you need to make a financial plan. It’s now the time to think about what you want to achieve next year. The best way is to split your goals into three, short, medium and long. What you define as short, medium and long in terms of time scale is up to you and depends on your business. However, what is important is you think about them, write them down and communicate them to everyone involved.
The Short term goals are there to motivate you, get you up in the mornings and also ensure the New Year goes off with an amazing quick fire win. So some of these goals should be achieved during the first few weeks of the year, maybe one should be to communicate the 2011 plan to staff, customers and suppliers, it maybe email all your customers to say thank you for their loyal custom in 2010, call your most valued customer and ask how you can do it better.
For the Medium term goals, we are looking at the hard work and this means customer acquisition, increased revenue per customer and reducing costs, i.e. making you business better, faster and more efficient so you can ensure your success in 2011. The target dates for these should be from June through to September.
Your Long term goals should be the great big airy audacious goals which will make sure your business stands out from the rest. These goals will not just make your business a good business but a fantastic one, a business which others in the market follow, a brilliant success. So take a long hard think about them. They (because there should be more than one) may take less than a year but the timing of these is not important, the fact you assign a date to every goal is.
Now you know your hat-trick of goals, it’s time to go and buy the Christmas presents now, knowing that 2011 is going to be your best ever.
There are many attributes which make a successful entrepreneur, however there is one which everyone agrees is the most important: Focus.
To be an entrepreneur, by definition you will create your own business. This means you will have to take a business idea and make it work around you. This process will take time, most businesses take around two years to break even and four years to be truly profitable. Therefore you need dedication, enthusiasm, perseverance, passion in obtaining your goal, otherwise by definition you will fail just short.
Entrepreneurs are portrayed as glamorous, but when you are starting a business you will need to the same thing many many many many times, you will providing the same customer with hundreds of the same products or services. You will be working for the same business for years, having the same problems with customers, suppliers and staff. So this repetition will cut into you if are not focused on the end goal, so having a your eye on the prize, the triumphant goal or ultimate end game is key in ensuring you stay focused in developing your business into one everyone wants to be part of.
The first business idea you have, may not work, and most entrepreneurs have to change the business model or idea many times to get a truly profitable and scalable business. However, you must give the business the opportunity to succeed before changing it around. So focus on the facts and keep the business simple and light in the beginning. You should also ensure you have awareness of being in the right place at the right time. Are you there? This sense will come from your passion for your business and an understanding the macro and micro business environments. So focus on your customers, suppliers, friends, mentors and staff to understand if you are in the right place at the right time.
Just Do It and stay focused!
Not everyone is good at everything, so why is it we think entrepreneurs are good at all aspect of business? Why do we think that being an Accountant, Manager, Leader, Sales Person and Marketing Executive all at the same time will result in a successful business. Well you cannot always be good at everything and the only way to find out what you are good at is to have a hard nose bloody minded go at it. Once you know what you are good at you can only then think about building a team around you and understand who can support you in your endeavours.
The team is better equipped for success as it can develop faster, make more diverse plans and also coup with higher levels of attainment. Every boat needs a master and that can be you, a mindful one.
Knowing what failure tastes like is also important in creating an appetite for success. Having the humility to accept success and develop oneself is the true character trait of an entrepreneur. Never accepting failure as bad only as an opportunity to learn, stand up, brush oneself down and move on to the next venture should be your life’s mantra.
So just go out there today and create your first failure and then make it your greatest success at learning what it takes to make you a successful entrepreneur.
