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!


Success Factor For High Growth Entrepreneurs

12/02/2012

Success Factor is my second book and it has not been given the attention it deserved over the last 12 months, the main reason being the focus on several major tenders. I am now back onto it, with bags of momentum.

I am a great believer that successful high growth entrepreneurs embrace the right mindset for success, here is the summary:

The ten steps to a winning mindset involve:

1.   Define your personal intentions and align them to the things you love doing. With this sense of purpose and clarity you can then begin the journey to achieving what you desire from your life, business or profession. Remember alignment must be achieved between personal and professional intentions – they cannot work in isolation.

2.   Prepare yourself for the journey by creating the right mental conditions. Resilience and mental toughness are directly related to your sense of purpose. If you give up after the first hurdle then your purpose is not strong enough! It wont be easy! Be careful about what you think about! That’s what you will get.

3.   Personal responsibility for your actions means that you will make choices and not sacrifices. Belief in yourself is a key part of the way to think – if you don’t believe in yourself then no one will! When things go wrong don’t fall to victim mentality as this gives rise to a whole series of self defeating internal discussions – become the master of your own destiny.

4.   Taking action must quickly follow all the thinking. Success is down to 20% thinking and 80% doing. Strategies emerge when we take action – strategy comes alive in the execution – it is this action that creates serendipity – people will often talk about getting lucky! Success Factor believes that luck is the product of intense activity and personal clarity!  We then start to walk the path of our destiny.

5.   Embrace the spirit of cooperation and working with a team ethos. Going it alone can be a tiresome and difficult journey. Caring and working with others can be the catalyst for us reaching our destination. Finding those who can support our shortcomings and plug the gap in our performance, can make things happen smoother and quicker.

6.   Learning to lead ourselves before we lead others is vital. Once self-leadership has been mastered the leadership of other can commence. This means we must foster an environment that create the conditions for success to flourish, we coach those we are supporting, we communicate with impact and we ensure those under our leadership conform to the rules.

7.   Playing by the rules is an essential part of long-term sustainable success – we must observe the value of humility and operating by a set of values that show caring for others and our environment. Practicing the philosophy of giving before we receive warm the hearts of others and is visible representation of the fact that we live a life of integrity – our reputation is often all we have to trade.

8.   Engaging with others and building win – win relationships is a vital step to success. By embracing a mindset that life is truly a pitch we begin to recognise that competition means that we have to sell to get what we want – this could be our skill and expertise, qualifications, talents or products and services. By active listening and marrying carefully our proposition to what others want – we start to build relationships

9.   A creative mindset helps us to truly stand out from the crowd. Creative capital is often viewed as the ultimate source of competitive advantage because it unlocks our imagination – drives innovative thought and delivers remarkable differentiated results. Keeping a fresh mind and outlook enables us to remain ahead of the game and become memorable to those we need to influence.

10.   Going the extra mile by doing things others wont do will get you remembered. Life has become extremely competitive which means there are far more applicants than jobs, more suppliers than contracts, less places on popular courses.  The only way to get the edge is by digging deep and going one step further than others.


Organisational effectiveness dictates the rate of growth

21/12/2011

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 awareness 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.


Your Business – An “asset” or “calling”

10/12/2011

It never ceases to amaze me how passionate and animated entrepreneurs become when they talk about their business and what they do. To those listening it can come across as “in your face”, however, the reality is, most founders are just so proud of what they have achieved. Business and personal time are inextricably linked feeding each off every minute of the day.

The successful high growth entrepreneurs I have worked with often started their business because of a “calling” – this means putting something right, fixing a problem, chasing a dream of freedom, pursue a passion, wanting to make a difference or proving to others they can achieve something quite amazing.

So many entrepreneurs often forget that their business is also an asset with value. The danger is when the founders view their company solely as an asset. This creates inward focused strategies, lack of customer focus, greed, ultimately this will lead to only one place  – a disconnection with the real world and decline. My advice is when the voice of the “calling”  gets overshadowed by the asset, its time for rethink. A danger zone is just around the corner. Its about balance, of course a business must generate wealth, however it works far better and in my view becomes more profitable when its game plan is linked to a purpose.

That feeling of doing what you do because it makes a difference to others is probably one of the best you can have in your career, long may it last!


What do I think about the LEAD programme?

10/10/2011

I was asked today what I thought about the LEAD programme. The truth is it should still be running. For me LEAD was a fantastic stimulus for both personal and organisational change. It helped leaders to personally and professionally grow.

Anyone running a business knows that if you don’t adapt and constantly move with the needs of customers you will quickly get left behind. Living in the “Customers World” by spending at least 3 days a week with them is a habit successful entrepreneurs exhibit. By doing this you get close to their problems and issues, ultimately locking in by becoming a trusted adviser

Any leader should be promoting the fundamental importance of sales. Great selling is about adding value, leaving positive mental imprints of yourself and your business. Integrity, trust and a strong reputation are key foundations of happy customers. Remember – the desk is a very dangerous place to view the market and your customers needs, get out there and practice the philosophy of success is 20% thinking and 80% doing!

LEAD helped to embed these very important principles for growth – bring it back !


Create a crisis and focus on consequences

06/09/2011

One of the biggest challenges leaders of high growth companies face is the need to embrace change, so often imposed by markets, customer needs, technological or political demands. As John Henry Newman stated “to live is to change and to be perfect is to have changed often” 

Reluctance to change is a major cause of organisational inertia and its the leaders role to make sure that the business sets a new course when the warning signs or opportunities are presented. Making this happen is easier said than done, it takes time, effort, energy and the whole experience can be draining.

Effective leaders I have met use consequences and create a crisis to help lubricate the wheels of change. They make real the outcomes of not embracing new ways of working or doing things. Whist they may seem brutal, very often the consequences of not changing are fact of life – company goes under, losing competitive advantage, losing long-standing customers, redundancy, losing money, failure to capitalise on big opportunities, lost business…..

Creating a crisis and demonstrating with clarity the impact of not doing things differently for the greater good, both personally and organisationally can be a fantastic wake up call for change!

 

 

 

 

 


Smart Operator – High Growth Individuals

19/07/2011

Recent economic challenges have placed serious pressure on people to think very differently. Business as usual is not an option, its time for something completely different. Cuts in public and private sector budgets have taken their toll – redundancies, lost revenue, projects going on hold…the story goes on. So what’s the answer? Manage decline and depression or look for the opportunities. As one delegate at an event I spoke at the other week put it….”recession, I have decided not to participate”. A very refreshing approach and outlook, the very opposite to the doom and gloom the media encourages us to embrace.

The answer is to practice and develop the Smart Operator Mindset – this ultimately leads to the creation of the high growth individual. We should draw parallels from the world of enterprise and create our own personal business plan, one that maps out a destination with the prioritized tasks to get us there. Here are some pointers for the Smart Operator Mindset:

1. Smart Proposition – define your unique talents, what you love doing, what you want, what gets out of bed. Aligning a future to a basic purpose really does help to accelerate the way forward.

2. Smart Vision – write down your personal intentions for 6 months, 1 year, and 2-years. Base this on your Smart Proposition. Include earnings and other components that make up the life you want

3. Smart Plan – remember a vision without tactics is hallucination. List the things you need to do and get on with it. The right path will emerge when activity is initiated.  Avoid procrastination. Set yourself KPI’s to check whether you are on track.

4. Smart Brand – you are selling yourself, so work out what mental imprints you want to leave on those you meet. Be memorable, deliver on your promises and become the master of your trade. This is what you will become known for.

5. Smart Collaborator – work out who you need to engage and team up with. Alliances and partnerships are a critical part of the Smart Operators DNA.

6. Smart Communicator – master the art of getting messages across, think win-win and live in the world of your audience. Clarity and concise messages that considers both your needs and those of others lead to positive relationships that go somewhere.

7. Smart Connector – work out a plan for finding, reaching and locking into to those individuals and organisations that are important to your personal progression. The connectors and influencers could include suppliers, banks, associates, partners, customers, other departments.

Practice makes perfect, another cliché that I hate, but its true. As Malcolm Gladwell said it takes 10,000 hours to become successful, so that means blood, sweat and tears, I still don’t think there are any short cuts to getting want you want. A combination of being really good at what you love doing, combined with taking ownership of your life fused with determination and persistence help pave the way forward. The Smart Operator Mindset is a framework for you to hang your thinking on.