Archives: #StartUps

It’s your job to create value, not chase revenue.

It’s your job to create value, not chase revenue.

For most, starting a business is about making money. I mean, that’s the crux of it, but should it be your main focus?

We’ve seen time and time again, especially on a local scale, how businesses with a money-only focus either fizzle out or end up perceived as corrupt or greedy, and the consumers are the ones who suffer in the long run.

What if you can have your cake AND eat it too? What if you can create a business where people want to work at, and people want to shop from, and you can make a sustainable revenue on a long-term scale? Sounds too good to be true? While some may say it’s idealistic, I call bullshit.

You love when you get great customer service, right? I do, too. I remember those places, and recommend them frequently. So build your business on that touch point of value.

People don’t buy a product for what it is, they buy because of how they value it.

When you create something that’s worth something to someone, not only yourself, you’ll find that your consumers will become brand ambassadors, and those are the people who keep your business alive. Repeat business is the most valuable business in a sustainable long-term revenue model.

As entrepreneurs and business owners, it’s up to us to change the landscape in Trinidad in terms of value and customer service.

We always think that local items are of lower value and customer service is always crap, but what are we doing as business owners to change that? We have to add more value to our product bases and look at our offerings in a new light, putting a consumer first, not money first.

The money will come, it always does, but you have to be patient. You’ve got to run this one like a marathon, not a sprint. One of the issues here is that many small business owners are unaware of the struggles in the first two years, but I’ll get into that in another post.

Start by building something of value, something that people want, something that people will remember, with happy employees, a great company culture and fantastic customer service… You will outsell every single one of your competitors with this strategy.

Getting Clients to Commit! 

Getting Clients to Commit! 

As a startup, and even as an existing business, it’s becoming seemingly harder to get clients to commit to business for a set duration. However, for some businesses, it might mean the difference between sinking, floating and sailing.

Committing clients to a five year contract for a simple service in this economy is ludicrous. Six-month and twelve-month contracts with three month trials are more favorable, and even then, termination clauses sometimes have to be penalty free from the client-side, which reeks of unfairness on the service provider’s end.

Striking a fair balance is sometimes hard, especially if a young business is providing a service to a company who has been around for some time. Negotiating termination and payment terms seem to be the biggest hurdle, but something to keep in mind is that if the client came to you, or chose you out of a pool of suppliers, you may have more weight than you think. Opening a discussion about changing the standard terms to something more fair is always a good place to start.

Working closer to your ideal arrangement with a client with every contract is also a good method to get what you need from them while providing fair terms. It will give the relationship some time to grow while you establish trust and confidence with your client.

Client contracts are key to the health of a business. Use them with as many clients as you can manage as it helps you to forecast your cash flow and protects you legally if a client does not want to pay. They should be mandatory, at least for new clients, conglomerates, or companies you’re unsure about.

DISCLAIMER: I am not a lawyer, just speaking/writing from personal experience, and there may be important details missing, such as the specific protection a contract can provide. 

How valuable is YOUR time?

How valuable is YOUR time?

How much do you value your time? Do you have a dollar figure per hour?

Every business has tasks that no one wants to do, but someone has to do it, right? And if no one else can do it, then you have to do it, right? Wrong.

When you, as a specifically-skilled individual, have to do a million things unrelated to your exact skill-set, you’re wasting your time. Wasted time in a business is bad for business. You’ll end up being strung out, exhausted, and unable to focus on anything, because you’re doing things you shouldn’t, and you’re not doing a good job anyway because you’re probably dragging your feet on it.

Outsourcing or hiring someone to do the smaller things will allow you to focus on your business and provide a better product and service.

Knowing what you’re worth helps you weed out unwanted clients. 

Every business knows this one… The clients that are an instant migraine. Clients who are usually unwilling to pay you for your time are usually not worth it, because they waste a whole lot of your time and theirs, most likely don’t know what they want, and you might just end up dropping them.

It’s better to just say no from the onset, than to subject yourself to that pain. Do yourself a favor and send them to a competitor! It will keep them busy, haha! #sorrynotsorry

Now that you have all this free time by hiring/outsourcing those tasks, and saying no to all those waste-of-time jobs, you can now plan your time more easily, and live your life doing things that mean something to you. Take your dog for a walk, or read a book.

It’s very tempting to accept every single request from a client, especially as a small business because that means extra revenue (which could mean an equipment upgrade, a bonus or a new employee), but you have to stop and ask yourself if that task is worth your hourly rate, and if it’s not, then don’t do it!

Relax! Not everyone wants to be a business owner… 

Relax! Not everyone wants to be a business owner… 

Have you ever had an idea that you wanted to discuss but you were SO afraid of someone stealing it that you said nothing, and nothing ever came of that idea?

We have ALL had ideas like those. And the bullet to the chest is when you see someone else, totally unrelated to you, execute your idea… better.

Unfortunately, what most people don’t understand is that ideas are a dime a dozen, it’s the execution that counts. I’m actually not afraid of talking about ideas, and here is why:

Not everyone wants to be a business owner… 

90% of the time, when I ask someone why they don’t want to talk about their business ideas, it’s because of potential intellectual theft. Yes, we live in a very disloyal community, but that should not stop you from bouncing your ideas off of your potential consumers.

You have to ask yourself, do these people have what it takes to open the exact company, complete with your vision and execute it to become a sustainable competitive company? Are these people ready to make the same sacrifices you’re willing to make in order to take this idea and build it into a company? Probably not. 

I’ve heard a common local story, about a man who thought about bottling water and discussed the idea among colleagues because he was looking for funding, but one of the people in his audience decided that they liked the idea too and had access to the capital, so they opened their very own bottled water company. While I get the moral of that particular story, it leaves me asking what became of the entrepreneur looking for funding, and how much detail did he actually spill at that discussion? It’s up to you to be able to ascertain who can and cannot be trusted. (This is where your gut comes in handy!)

Business is about opportunity; has always been like that and will remain so. You will have those who are honest and like to see others succeed, and those who are like thieves, lurking in the shadows.

One way to look at this is while discussing your ideas (leaving out the secret details of course!), someone might just like your passion about the project and decide to invest, which can either make or break a venture.

So here are some pointers:

  • Do be careful about who you’re talking to, and what you’re talking about.
  • Do not disclose any information about your project which can arm a competitor or create one!
  • Do not be afraid of discussing your basic idea, as you will garner valuable feedback

[Side note: if you don’t agree with the above, that’s fine. Most people choose to hold their ideas very close to heart for obvious reasons and nothing is wrong with that. This is just a different perspective of a topic rarely discussed among young local business owners.]

How to become a Successful Entrepreneur

How to become a Successful Entrepreneur

Every entrepreneur is different; some colour in the lines, some out; some seem tense, some are always relaxed; the bottom line is, no two entrepreneurs are the same. However, there are some overlapping qualities and habits which overlap the world’s greatest entrepreneurs.

Dan Rosenberg wrote an article for Business 2 Community on the 10 most important habits of the world’s best entrepreneurs and I do not think anyone can write this more eloquently. So I’ve kept the original piece, in its entirety.

The 10 characteristics of successful entrepreneurs are: business focus, confidence, creative thinker, delegator, determination, independent, knowledge-seeker, promoter, relationship-builder and risk-taker.

So as you aspire to be successful, what can you do to improve your own business talents and in turn, make your business thrive? Here are 10 habits that’ll surely help you get on track.

Relationship-builder: Working your connections, tactfully and effectively.

Growing up, ‘networking’ was just about the dirtiest word in my vocabulary. There was nothing that screamed ‘phony’ to me more than utilizing your connections for personal gain. However, as I’ve gotten older and decidedly more realistic, I’ve realized the importance of networking to propel you in the business world. It’s all about keeping active in your community; keeping open contact with your current contacts while actively pursuing new ones as well.

With social media sites like Linkedin, networking has never been more convenient, but still, we could all use some common sense reminders from one of the entrepreneurial greats. Carnegie’s first chapter of his excellent book How to Win Friends and Influence People discusses how to engage people without being overly critical. The underlying theme is to not burn bridges, because who knows, you might need to work with that person again someday.

Business focus: Setting and surpassing targets.

Setting targets, both financial and non-financial can keep your goals in perspective and can really motivate you to achieve. Just keep the big picture in mind, being completely goal oriented could potentially hurt your performance in the long-run. After all, a cut-throat mentality could lead to decrease in team morale.

Confidence: Don’t fret; you too can be a confidence man or confidence woman.

While confidence seems to be inherent in some, and lacking in others, there are ways to improve your own self-confidence. For example, thought reconditioning is an essential tool in confidence boosting. Let’s be realistic, no one’s perfect. Know your strengths, and be proud of them.

It’s even more important however to understand your weaknesses, so you can address and manage them. There’s no better way to improve one’s confidence than giving you more reason to be confident through learning, knowledge and training (more on that later-on).

Creative-thinker

Being aware of your senses can help fine-tune your creative juices. Studies have shown that certain types of music promote productivity and even creativity. Additionally, journaling can really help put your ideas into action. Since brainstorming can occur at anytime, try keeping a pocket-sized notebook with you.

Delegator: Delegate, don’t micromanage.

While few business owners appreciated President Barack Obama’s “you didn’t build that” remark in 2012, it is true that collaboration is essential in a successful business. At some point you just have to realize you can’t do everything yourself.

Foregoing some control in decision-making and allowing your team-members to personalize a project gives them ownership, which in turn increases their enthusiasm and motivation to complete the requested task effectively.

Determination: Keep your goals in mind and in sight

Constantly remind yourself why you’re in business in the way of short-term and long-term goals and convey these to your team members. Stress can interfere with your determination levels so make sure you manage a good life and work balance to keep it in check.

Independent: Be a jack of all trades

When first setting up a business it’s inevitable, you’ll be putting on many different hats and taking on a variety of tasks. Even after becoming established, maintaining this versatility is advantageous because it gives you a good perspective on all facets of your business. Besides, being an independent businessman or businesswoman will increase your confidence as an autonomous being.

Knowledge-seeker: Read voraciously. Rinse, repeat.

As an entrepreneur you should know the ins and outs of the business environment you’re in and because the conditions are constantly changing, you should never stop learning. While formal class-work can help (see college level studies and/or local business/management/entrepreneurial workshops), due to your busy work schedule, it’s easy to substitute time wasted in front of the television with internet research or reading time to improve your breadth of knowledge.

Promoter: Use 21st gen tech to your advantage.

In this day and age being active on a variety of social media sites (Twitter, Facebook, Linkedin, and blogs) can be a sure-fire way to get noticed. Not all attention is good however so keep it classy-you may think those cheeky shots of tequila are a fun way to spend a Friday night, but your potential clientele may not.

Risk-taker: Take risks but don’t be reckless.

As a proprietor you’re naturally very familiar with risk-taking. But keep the gambling at the casino, all risk-taking in the entrepreneurial world should be calculated and well-thought out. When addressing a potentially risky decision think of the potential payoffs and consequences, then imagine the best case and worst case scenarios. Is the best-case scenario worth the potential risks you’re facing? If faced with your worst-case scenario how difficult would it be to accommodate for the setback?

What traits do you possess and which are you lacking in? Write to me (click the link in the menu!)
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