What It Takes To Succeed As A Business Owner

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StrategyDriven Entrepreneurship Article | What It Takes To Succeed As A Business OwnerBeing a business owner is a very rewarding career but also takes a certain kind of person and talent to be successful. It’s important to know what it’ll require so that you can thrive in the business world if you’re considering running your own company one day.

There are a few abilities you’ll want to know about and zero in on if you wish to proceed in this area. What’s most important is that you’re passionate about the business and product or service you’re selling so that you’re able to stay motivated when there are obstacles to face and rough patches to endure.

Committing to being Financially Stable

It takes your business to be financially stable if you wish to succeed as a business owner. For example, if you own a law firm, then you might consider looking into funding for lawyers services that can help your business stay on its feet and survive even when money is tight. Be glad to know there are options and financial products out there that can help get you through challenging times. It’s in your best interest to always be aware of what money you have and that your books are accurate if you’re going to run a profitable business. You’ll sleep a lot better at night knowing your finances are strong and that you don’t have to be dealing with unwanted surprises constantly.

Providing Excellent Customer Service

Your clients should be your top priority as a business owner, and all you do should revolve around them. Without loyal customers, it’ll be challenging to keep your doors open, and you may soon experience a dip in your sales. It takes you offering customer service that goes above and beyond if you want to be successful as a business owner. Train your employees and make sure everyone is on the same page so that you’re always consistent and your staff knows how to handle difficult situations or questions.

Being Fully Dedicated

It’s going to take you being hugely dedicated to your business if you want to be successful. There’s not going to be a lot of time for much else when you own and are managing a company. Therefore, make sure your schedule is clear and that you’re fully engaged in what you’re doing each day. You’ll likely have to make some sacrifices so that you can keep your business on track and heading in the right direction. You may not have the flexibility you imagined having as a business owner when you’re first starting out, so plan ahead and know that you may not have a whole lot of free time initially.

Being Organized

It’s also vital that you’re organized when you’re in charge of your own business. You should know where your essential files and information is stored at all times. Make sure your office is tidy and that your computer files are organized into appropriate folders for easy access. The more organized you are, the better, and more smoothly your business will function. You especially want to keep organized so that you can attend to your client’s needs right away when they reach out and need assistance.
Making Tough Decisions

As a business owner, it’s going to be your job to make the tough decisions. All of the answers aren’t always going to come to you right away. It may take you doing some deep thinking and meditating on information and facts before you can come to a conclusion. It’s also a good idea to get in the habit of problem-solving on your own instead of always relying on others for guidance and direction. While it’s okay to bounce ideas off of other people, you also want to be able to come to a final decision after having done your homework and contemplating the matter.

Focusing & Avoiding Distractions

It’s also going to take you being able to keep focused and avoid distractions if you want to be a better business owner. You’re going to be constantly pulled in a lot of different directions and can’t always attend to all that lands on your plate right away. It’s essential to document your goals and put your tasks in priority order so you can refer back to this information when you’re feeling overwhelmed or stressed out. Be sure to close your door and turn off your phone and email when you have critical matters to address and can’t afford to be distracted at the time.

Persevering through Challenges

If there’s one attribute you need to have as a business owner, it’s to be able to persevere. There are going to be inevitable trials and tribulations and roadblocks that are going to try to get in your way and slow you down. However, you have to be wise and rise above these interruptions and continue strong even when you’re feeling a bit defeated. Avoid worrying about all that could go wrong and focus on all that’s going right and that you’re doing well to help keep you motivated to succeed. There may also be people who will try to get in your way or competitors who are going to try to steal away customers from you. These are the sorts of instances when you have to be strategic and logical and to put on your thinking cap instead of letting your emotions take over.

Conclusion

You should now have a better idea of what it’s going to take to succeed as a business owner. Your experience managing your own company will be that much more pleasant and satisfying when you dedicate your energy to making sure you put these suggestions into practice. Remember to have some fun and enjoy your time working in your career as well because it will go fast. You want to be able to look back on your time as a business owner and feel you did all that was in your power to run a successful company and not have any regrets.

Tapping into the Entrepreneur’s X-Factor: Overcoming the Exchange Barrier

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StrategyDriven Entrepreneurship Article | Tapping into the Entrepreneur’s X-Factor: Overcoming the Exchange Barrier | The Private Practice Survival Guide | Brandon SeigelWhen we examine entrepreneurs from all walks of life, whether at the start-up stage, scaling toward success or becoming serial entrepreneurs, many exhibit similar recognizable qualities. Successful entrepreneurs are able to recognize talent, are focused on growth, are purpose-driven and are agile in an ever-changing business environment.

However, another X-Factor that’s often not recognized, and that truly is a differentiating factor for entrepreneurs who transform into “serial-preneurs,” is the ability to overcome the “exchange barrier.”

The exchange barrier is a term that I coined to refer to a common issue in today’s business environment. It relates to the lack of awareness in recognizing the different forms of exchange and the value that can be delivered beyond the fiscal exchange. It also refers to the barriers that exist when we go “out of exchange” with our employees, our customers and, most of all, ourselves.

As we look at overcoming the exchange barrier, it’s important to explore the whole picture of exchange, because exchange can come in all shapes and sizes. Here are a handful of the most common exchanges to keep in mind:

1. Monetary Exchange – The benefit of this exchange is that it’s a fairly black and white exchange, so it gets “quick results.” But the disadvantage of this benefit is that someone that’s driven on the monetary exchange will always find a better offer at some point in time. As a result, retention becomes a common core issue, or you get priced out of your business model.

2. Value Exchange – Similar to monetary exchange, a value exchange tends to attract others quickly, and is often the vehicle to increasing a business model’s scalability. However, it’s common that the value exchange will catch up with an entrepreneur, and it’s not sustainable over time.

3. The “Experience” or “Culture” Exchange – Over the past twenty years, the experience exchange has become one of the fastest growing trends for entrepreneurs to tap into. Entrepreneurs are drawing on this exchange first and foremost for their team by focusing on work-life balance and ultimately taking responsibility for how they share in the way their team feels before, during and after work. In addition, entrepreneurs have been utilizing this approach for customer acquisition and retention by building a brand around the experience rather than just the product or service.

4. Purpose Exchange – In recent years, our society has become hypersensitive to the role humans play in our world and has become driven to unite around purpose. Among the top employee engagement strategies of the 21st Century are engaging a team in delivering community-based services and fundraising for a cause to give back to others and unite as a team. Entrepreneurs are tapping into this exchange with their customer base by promoting the philanthropy that their organization stands for and tying it directly to the organization’s values.

5. Education Exchange – This is the most undervalued exchange currently. The role that education plays in growing the human condition has been recognized as one of the major contributors to the success in the United States today. However, entrepreneurs aren’t spending enough time identifying the role that education, mentorship, training and support can play in the exchange with both their workforce and their customers.

The five types of exchanges outlined above are just a few among an assortment of exchanges that exist in today’s business environment. One of the challenges that entrepreneurs face is the ability to identify the different exchanges their organization offers, and to communicate them effectively in their messaging.

In addition, it’s important to recognize the several “conditions of exchange” that often go overlooked. Here’s a sampling of conditions of exchange:

1. Criminal Exchange – This is when someone is basically stealing from you. If you’re pirating videos, then you could classify that as “criminal exchange” because you’re stealing something that doesn’t belong to you. If an employee is sleeping on the job every day, then you could say there’s a criminal exchange.

2. Out of Exchange – This is someone that isn’t criminal, but the “exchange” is not equal and, ultimately, is adversely favored to one side of the exchange. If an employee is getting paid to create 10 widgets per day and is averaging only 8 widgets, that employee would be out of exchange.

3. Equal Exchange – Just as it sounds, this is someone or something that is living up to the terms of the exchange.

4. Exchange in Abundance – This is one area where entrepreneurs can stand out. Like the saying, “Under promise and over deliver,” staff or customers will appreciate that they got the better end of the deal.

For anyone involved in entrepreneurship research or consulting, it’s common knowledge that entrepreneurs have a substantial chance of failure. The bottom line is that the odds are stacked against most entrepreneurs. However, the one defining X-Factor for the 21st Century entrepreneur is the ability to overcome the exchange barrier.

About the Author

StrategyDriven Expert Contributor | Brandon SeigelBrandon Seigel is an internationally known business coach and president of Wellness Works Management Partners. He currently manages multiple private practices and consults with entrepreneurs and private practices throughout the world. A recognized leader in today’s private practice environment, he is a frequent keynote speaker and trainer for organizations, associations and universities. His new book, The Private Practice Survival Guide: A Journey to Unlock Your Freedom to Success (Rebel Press, February 5, 2019) covers the essential how-to questions of opening a successful private practice. Learn more at wellnessworksmp.com or brandonseigel.com.

Hosting A Corporate Awards Event

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StrategyDriven Talent Management Article |Corporate Award Ceremony|Hosting A Corporate Awards EventA company award ceremony is definitely something to get excited about. It is a chance for everyone to leave their work self at the door and unleash their glitzy and glamorous side. Nonetheless, in order to put on an award ceremony to rival the Oscars, you need to put an extensive amount of planning into place. This blog post will help you with that. Read on to discover some useful planning tips.

Choosing the right venue for such an important event

The most important attribute of any successful award ceremony is the venue. Go for a typical award ceremony venue. This means those that boast high ceilings, no sound restrictions, and an extravagant appearance with seats arranged in a banquet setting. There are lots of great award ceremony venues depending on where in the world you are based. Of course, the big cities tend to have the best places. For example, in London, including; Old Billingsgate, the Auditorium at the Mermaid, the Pavilion at the Tower of London, Building Six at the O2 and Plaisterers’ Hall. In New York, some of the more unique venues include the likes of the Radio City Music Hall, Rockefeller Center, and The Museum of Modern Art. A quick search online will enlighten you to some of the best and most suitable venues for you.

Inviting your guests

Once you have booked the venue it is time to invite all of your guests. Make sure the invitations are as glamorous as the event will be. This sets the tone and gets people excited about the occasion. A great idea is to wrap the invitations in luxurious silk ribbon. This always looks fantastic. And don’t forget to state the dress code; only black tie will do when it comes to an award ceremony.

Awards and prizes

You will also need to deal with the award categories and prizes. When selecting a prize it is always recommended to go for a traditional trophy type product. You can get some specially made to suit your company. This is a great way of branding your business too. You will need to come up with a fair way of the winner being selected. Use various methods if you’d prefer. Let your customers vote for some awards, your employees vote for others and a prestigious judging panel for the rest.

Who is going to host your award show?

In addition to this, you will need to find the perfect host for the event. This can prove to be a little bit tricky. Do you go for someone who is well known at your company and so all the guests will be familiar with? This makes the occasion more personable and warm. However, not everybody is willing to partake in a bit of hosting, nor is this the applicable choice for all businesses. Therefore, you will need to hire an outside host. Make sure you take the time to seek someone who is experienced and qualified. They need to act like they know what they are talking about at all times; not merely reading off autocue.

The logistics of the event

There is no denying that hosting any sort of event can be difficult to manage. This is especially the case if you are hosting an award show that is large in size. You need to coordinate all of your staff members and services, and you have matters like security too. Good staffing software can really prove invaluable here. Or, you may want to consider looking for an outside events management company, with their own technology, to take over this for you.

Entertainment

And finally, make sure you choose some good entertainment for the evening. You can’t just give award after award after award. You need to make it more exciting than this. There are lots of fantastic entertainers to choose from. You could have a comedian for one stint, a band for the next, and then circus performers at the end. It is entirely up to you. But a diverse selection ensures everyone is kept happy.

If you follow the advice given in this article then you will have no trouble hosting the perfect award ceremony. The Oscars better watch out!

Time to Sell Your Business? An ESOP May Be the Answer

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StrategyDriven Entrepreneurship Article |Selling Your Business|Time to Sell Your Business? An ESOP May Be the AnswerMost small to mid-sized businesses have limited sales potential. These companies are often founded to capitalize on a perceived market opportunity and grow over time until eventually the owner has a healthy, and profitable company.

However, owners often assume that an exit will be as simple as selling the company. Why? Because large exit sales are often in the news. One need look no further than Inc. or Fortune magazines to see the latest Silicon Valley unicorn company selling for 4-6X annual revenues, while being unprofitable. But is it fair to assume that a privately held, profitable company can produce similar results?

Unfortunately this is not the case. What usually happens is: The owner starts the company, the company grows, and within 7-10 years, a few acquisition offers are made. These usually aren’t good deals and the owner gets a tough lesson in small company valuation. Look no further than the “entrepreneur” and “start-ups” categories to see what it takes to build a successful company.

Let’s assume you started a digital marketing agency, a realistic example, given this industry is hot. It’s easy to start out as a solo practitioner and build a company as the skills from one’s career are directly transferrable, and overhead is quite low.

Over seven years the company develops a solid client base, grows to 16 employees serving 40 clients, with revenues of $2 million annually. If acquired, this company would realistically sell for $1.2 – $1.6M, a far cry from the 10X multiples seen in Silicon Valley.

The lesson here: A company is worth what an acquirer is willing to pay; the fact of the matter is that small- to mid-sized companies have limited sales potential.

Additionally, small companies present risks to outside acquirers, who are likely to merge the company into their business, which means culture change, clients will receive notice and may terminate, and some employees will leave. The long and short story adds up to a risky business.

What if there was a way to reduce that risk, preserve the company’s culture, keep employees and clients, increase company morale and improve performance by paying employees more without costing the business more? What would this do to the company’s valuation?

Selling one’s company to an ESOP, an employee stock ownership plan, does just that. Selling to an ESOP preserves company culture and increases productivity, which generally ensures strong future performance. This reduction in risk can take the $2M digital agency that would sell for $1.2-1.6M, and enable it to sell for $3.5-4M+.

While you’re not getting the Silicon Valley exit multiples of 4-6x revenue, it is realistic to exit at 0.5-1X revenue when sold to a third party. As part of that acquisition, expect about half of the proceeds to be tied to an earn out, which is a way for the acquirer to ensure delivery of the goods.

How does an ESOP work?

The short answer is, if you own a profitable company and a culture that is worth maintaining, the company is worth owning, particularly by employees. In an ESOP transaction, owners essentially sell stock, whether some or all, to employees. Employees now participate in company profits, which can be significant financially, and the owner gets partial or full liquidity.
Often these transactions are underwritten by banks, which prefer to lend to ESOPs due to the record-low default rates.

Learning more about how ESOPs work can be explored at Legacy Press Ventures

About the Author

Jack Ogilvie is a founding member of Legacy Press Ventures. After selling his previous company, Techwood Consulting, to an ESOP, Jack started Legacy Press to help others do the same. You can learn more about his company here.

Making Your New Retail Shop A Hit

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StrategyDriven Managing Your Business Article |Retail Shop|Making Your New Retail Shop A HitMany businesses start from home, but often the issue with that is at some point, you need to be able to expand and move forward. A business idea can outgrow your small home setup fairly quickly, and while you want to keep the costs as low as possible, you might end up getting to the stage where things change and you need to move on. Many entrepreneurs consider opening up a retail shop. It gives you a business location to work from, but also gives you the chance of dealing with face to face customers and making sales in a different format. So how do you make sure that your new retail shop is a hit? Here are some of the things to consider.

Think about the location

One of the first things to think about would be the location of the shop. You will want a decent location to attract customers into your store and also to be easy to find, but you also need to be aware of the costs involved. A prime location on the high street might be great for business, but it will also hurt your business financially in those early days. So you will need to find a happy medium that you are comfortable with but us yet still worthwhile. It might also be worth thinking of a smaller premises for better location and seeing it as a stepping stone to the next level.

What about the layout?

The layout of the shop is just as important as the location of it. You want people to walk into the store and feel comfortable and able to see things clearly. This is when the shop fittings and things like shelving will be important. Of course you may need to spend a little time looking for a slatwall for sale and finding a decent shopfitter to put it all together, but the hard work will be worth it in the end as you start to see the difference between a good shop layout and ones that put off customers coming back.

Would there be a theme?

The next thing you need to think about would be whether or not your shop would have a theme. This might have a lot to do with the things that you are selling and who you market toards. For example, a woman’s clothing brand might want to make the shop and layout appeal to women. A children’s store might be bright and colourful, or an outdoors shop might have set ups of tents and gear. Think about the theme and make it part of the experience in entering into your store.

Customer service

Finally, customer service is a huge thing for customers and so you will want to ensure that the experience in your store is a positive one. That means that your staff are presented well, that they look the part and make people feel special. The store should be an inviting place and not an awkward environment.

Let’s hope these tips help you when it comes to making your retail shop a hit.