Disciplined entrepreneurship

12/08/2014

High growth companies are disproportionately innovative to those that are not, and whilst I believe creativity is the ultimate source of competitive advantage, I must caveat my views. The importance of embedding a culture to allow free thinking that stimulates new ideas is well documented. However, without control you end up with pet projects, loads of possibilities and hundreds of potential initiatives that absorb time, energy and resource. Large companies have processes to deal with their ideas pipeline, but in smaller high growth businesses the danger is that there is too much innovation and entrepreneurship and not enough control and discipline.

Commercial problems potentially loom when there is too much lateral thinking and lack of order. Jim Collins in Good to Great uses a very powerful phrase – “Disciplined Entrepreneurship”. This embraces the notion of balance – innovative thinking and behaviours being guided within a framework of performance measures and KPI’s.

Too much Discipline – then a disconnection with customers, markets and new possibilities takes place

Too much Entrepreneurial Flair – nothing gets done because everyone is bouncing off the walls with great ideas

Successful high growth companies tend to have a disciplined approach to new idea generation and implementation – a form of commercial filter. I often wonder how much smaller high growth companies can teach large corporates about innovative thinking and entrepreneurship. The reverse is also important – how can big companies help ambitious founders gain a better handle on their organisation? Feels like a powerful learning forum!

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Great teams drive growth

05/08/2014

It’s really sad to see how many businesses fail to realise their full potential. Is it down to poorly defined value propositions, bad design, poor sales and marketing or financial control…sometimes it is. My view is that a company’s growth prospects are inextricably linked to the rate at which the founder, team and leaders can develop themselves. Businesses make transitions at key points of their journey and if the management fail to personally address these changes and the extra demands placed on them, then the “growth ceiling” very quickly presents itself.

It starts with the leader’s ability to undergo personal change and continuously adapt their style and approach to overcome the challenges faced along the journey – self awarenessWP Team image is a must have for all entrepreneurs. In a high growth business the founder has to be clear on what they are good and bad at and build a team around them that compensates for their own personal shortcomings. The inability to delegate is the classic dilemma faced by so many individuals running their own business. This is the very reason why so few companies go on to employ more than 25 employees.  Organisational development is a pivotal part of achieving growth, and what do the VCs keep telling us? – it’s all about the team.

My advice to any high growth business/entrepreneur is get the right people in the right seats doing the right things. Having the wrong people doing the right job is so common, and if we are honest with ourselves virtually all of us have been there and got it wrong, big time! A company without an effective team delivers sluggish performance at best – gazelle performance? Not a chance.

Embracing a learning culture and environment where personal improvement is encouraged and supported is non negotiable, but of course this takes time. Staff and the team are the most important component of any business. When we get the right team in place almost anything is possible. Without it growth is stunted and blockages appear – these blockages manifest in long working hours, customers being let down, poorly managed contracts, finances going off the rails, quality dipping, disgruntled staff, poor communications – a feeling of rabbit in the headlights, can’t see the wood for the tress, all familiar clichés entrepreneurs have come to live with. The antidote is investing in people and staff.

Getting the organisational structure and team right is a difficult job and perfection is challenging to say the least. Your organisation is only as good as the people who are part of it, and remember the organisational and team effectiveness will dictate your rate of growth.


Do you have a competitive edge?

17/06/2014

The school of thought that assumes all high growth businesses are technology based is wrong. Fast-moving companies display an edge that connects with their customer’s world, one filled with imagination, inspiration and fresh thinking. Their founders and teams have an inherent ability to spot a niche, an unfulfilled need or problem demanding a solution.

Gazelle performance can be achieved by repackaging a traditional idea. The fusion of a diverse range of business models to produce a whole new experience is a skill high growth entrepreneurs have perfected.

Focusing on activities that don’t necessarily bring in revenue can also attain the edge. However, they do position the organisation head and shoulders above the rest. In other words they produce a wow factor. Leading experts in creativity would claim that 95% of a company’s point of difference is achieved by as little as 5% of what it does.

High growth businesses excite their customers by displaying their edge with passion and clarity. Companies must avoid falling into becoming a “me too” market player – this drives down margins, the cheapest wins, a sort of spiral descent very difficult to recover from.

So how do you find the edge? It starts with the mindset of the leader – old world tells us to think outside the box. My recommendation is to get rid of the box because it does not exist – eliminate limiting beliefs, self-imposed boundaries and negative influences that restrict your ability to think. Find a coach or a mentor who will help you fill the pipeline with new possibilities. Find your 5%!


Enterprise Rehearsal

21/08/2012

Why is it a large proportion of the workforce want to work for themselves but only a few actually go for it? My view is that fear holds so many back – the fear of not being able to pay the mortgage, have holidays or enjoy nights out at weekends. The key challenge to overcome is getting yourself conditioned to recognising there is no pay cheque going to land in your account at the end of the month. This can often be the biggest barrier to going forward.

Well there are other ways of thinking about being your own boss and indeed rehearsing before the big performance. Speaking from experience I have found that an interest or hobby can be turned into a small business. I remember some twenty odd year ago when taking the plunge was just not an option but it was a burning desire. A young family, and mortgage meant that rehearsal was the only way, and gosh did it pay dividends. Turning a passion for contemporary art into a small business taught me loads about suppliers, customers, doing the books, VAT returns, dealing with awkward people – the list goes on.

These experiences can help so much in the conditioning process and with very little outlay can unleash a profitable stream of revenue. There are opportunities that so many of us just overlook, here are some ways you can rehearse:

– Buying and selling on eBay

– Car boot sales

– Take a market stall at weekends

– Take a stall at an art/antiques fair

– Buy a small property do it up and sell it

– Explore the buy to let market

– Look for innovative products overseas, find an outlet in the UK

– Turn your hobby into a weekend service e.g photography

I feel that some of these tiny nudges can get us thinking more entrepreneurially. The markets in the UK are desperately trying to encourage more traders and we should not over look them as the training ground for the next generation of entrepreneurs – maybe feels a bit Del Boy and Rodney but from humble beginnings big things can result.

After all you only need to look at the Sunday Times Rich list and I know for a fact a number of them built their fortune starting from a market stall.

The Entrepreneurial G-Spot

26/07/2012

So what are the ingredients of a high growth business or gazelle as they are commonly referred to? This is a question that I must be asked at least twice a week. As both a founder of several and adviser to loads I am still learning every day. As an obsessive researcher of their behavior, tactics and strategies, one conclusion is gazelles are not just the stereotypical university high technology spin –out, they are also well established organisations from mature sectors  – with fire in their belly.

So how do entrepreneurs unearth the Gazelle spot for their business? This is the point at which rapid growth ensues, new markets open up, customers display a strong desire to buy and value is created for both the founder and stakeholders. For the economy they become job generators and employers of skilled individuals. The challenge is there are only a small proportion of these businesses, nationally and globally – why? because its really hard to grow a business, get the right people on board pointing in the same direction, raise and manage finance….the list goes. This G-spot takes time to find, as one member of the High Growth Foundation® muttered the other night – it has taken me 10 years to become an overnight success – or as Malcolm Gladwell puts it 10,000 hours of effort and practice are needed to become an expert at anything.

Lots of entrepreneurs talk a good game but many fail to cope with the roller coaster ride that so often accompanies growth – the high and the lows can be quite debilitating and at times the problems just “do your head in”. Having a resilient and positive mindset able to cope with uncertainty and unforeseen challenges is an ability too few have. High growth will usually equate to high risk (that’s why banks are scared stiff of high growth entrepreneurs), embracing fear and having the courage to see through immediate and longer term challenges is a skill high growth entrepreneurs have honed.

The Entrepreneurial G-Spot is a complex framework involving an eclectic mix of business, commercial and emotional components. Put very simply it’s the fusion of a sound business model with propositions and service that carry a market place edge – disciplined doers not talkers execute the plan to achieve the vision and everyone knows their role. The active ingredient is brilliant leadership, more specifically a culture of ambition underpinned by mental toughness and an ability to cope. All too often it’s the latter that is missing, so many entrepreneurs fail to truly realise their potential, they run out of steam and to put it frankly cant be bothered with the hassle.

You’re a long time dead, get stuck in, have a go, fail fast move on, get your head in gear and unlock the potential of your business. Only practice and iteration makes perfect!


Collaboration is key to competitive advantage

13/07/2012

How times have changed in the past ten years. Companies I would have viewed as major competitors at the turn of 2000 have now become close allies – we are sharing knowledge, IP, business ideas and revenue streams. It strikes me that collaboration is very much embedded within the mindset of the forward thinking organisations I meet on a day-to-day basis. Those that hold their cards too close to their chest will almost certainly miss out on new business and product opportunities. Collaboration can present itself in many formats:

  • Businesses with complementary skills coming together to bid for large contracts – one where the mix of expertise and geographical coverage offers massive benefits to a customer. This can be achieved as a consortium or through what is commonly referred to as a special purpose vehicle (SPV)
  • Companies fusing complimentary products and services to create a new offering – WP did this several years ago, we took creative expertise of a University and combined it with coaching techniques to create the highly successful Winning Pitch TV (WPtv) – a great example of HE working with a SME
  • Euro Garages one of the North’s most successful companies brought together petrol stations with Starbucks and Subway franchises to build a new experience in filling the tank.
  • We see it everyday on the motorways with Starbucks, M & S and other high street chains teaming up with service operators to create a new service station break – this used to be a joke in terms of food quality, now, very different
  • Large pharma companies engaging with smaller niche R & D operators. A much nimbler and cost effective route for multi nationals to build their innovation pipeline

Fundamental to collaboration is a win- win attitude, there has to be a common goal, a shared vision, a sense of trust and purpose, fair commercial gain for both parties. Working as I do everyday with high growth companies, its very clear that those entrepreneurs who think partnership are opening themselves up to so many new possibilities.  Stay awake, think about who you can collaborate with, the only warning is, be sure why you are doing it and what’s in it for both of you!


Faith is important for entrepreneurs

26/06/2012

The life of an entrepreneur is full of ups and downs. The high’s are fantastic and the feeling of jubilation when you move closer to your intentions provides a clear sense of accomplishment – it delivers the impetus to keep pushing on. It’s a great place to be because motivation and energy helps to build an important ingredient for success – momentum.

However, we all know, building a business can likened to a roller coaster ride, the journey very rarely proceeds along a smooth path. Obstacles are just part of the game, these force us to create diversions and look for alternative ways of getting to our destination.

Constantly being forced to deal with the need to explore alternative roads to the end point can have a wearing effect on  mindset. The danger is when it stimulates negative self talk – what’s the point in doing this? Is it really worth it?  Many entrepreneurs will have at some point internally deliberated these issues. Only you can answer these questions, only you can decide whether to keep going or not.

The power of autosuggestion brought to us many years ago is a vital antidote. Autosuggestion is a psychological technique  developed by  Emile Coue in the late 19th century. It’s an important tool in conditioning our mind to achieve our goals. It can be as destructive and constructive. At the heart of autosuggestion lies conditioning ourselves, through our senses to achieve what we want.

Through observational research, I have come up with other practical tools to help at critical points where emotional support is vital for the entrepreneur. The reality is, it can be easier to give up than to carry on – winners in all walks of life dig deep, maintain focus and continue with their mission, they accept setbacks are just part of the game.  The old adage when the going gets tough the tough get going is one you should reflect on when these feelings kick in.

Mental toughness differentiates winners from losers, your sense of purpose ebbs away when you listen to negative self talk, phrases such as why am I doing this? are symptomatic of the condition, in turn it weakens the endurance of the mind thereby resulting in I give up. Successful people have an insatiable desire and internalised motivation to succeed – you have really got to want it!

Having faith in what your are trying to achieve is a vital ingredient for success. If you dont believe then dont expect others to. It’s important to condition your mind to becoming resilient. Without faith and mental toughness the reality is, winning becomes more difficult. When things are not going your way, embrace the principles of R.A.F

Rewind – and go back to your vision, picture success and hold this image in your mind. Quiet contemplation is vital to aiding this process. This activity will move you out of the negative state and refresh your mind then get you back “on purpose”

Accept – that things will not always go your way. Avoid long drawn out dissections of why things turned out the way they did. Coming runner up is sometimes a wake up call for us. Accept the position and move on otherwise negative self talk will hinder progression.

Have Faith in yourself and your ability to achieve what you want out of your business. When you develop faith, bouncing back when things go wrong is far easier. By having faith you convince your mind that anything is possible

Practice, practice and practice this philosophy and see your success improve dramatically.