Category: Startups

The Ultimate Guide To Constructing Your Business Model

In the last post we talked about the first three of the 7 specific areas you need to
consider in your franchise prototype process. Here are all seven again:

• Primary Aim
• Strategic Objectives
• Organizational Strategy
• Management Strategy
• People Strategy
• Marketing Strategy
• Systems Strategy

These 7 areas will fine tune your plan for the ultimate level of success. Today we are
going to cover the last four.

Think of constructing your business model like planting a tree. At first, it’s so small and
weak you wonder if it will even make it through the night. But you keep watering,
fertilizing and nurturing it. Your ideas will grow the trunk and each of these strategies
will extend out as the branches of your now strong tree. Finding the perfect support
staff, employees, vendors/suppliers and other relationships will make your tree flourish
with leaves and flowers.

Management Strategy
The way you structure your management team is not only essential to your growth, but
the happiness of your employees and ultimately, your customers/clients. This strategy
is results-oriented and doesn’t depend on the people, but the actual system that’s in
place.

A management strategy is, in short, a set of standards that include goals, rules, a
mission statement and other concrete things that tell your employees how to act, your
management how to grow your business and your customers/clients what to expect.
These should all be in perfect alignment with your business goals.
Employee Appreciation

You need to put together a people strategy that shows your employees how you feel
about their job performance and dedication to your business. They also need to
understand “why” they are doing specific tasks. This helps them to personally connect
to their job which in turn leads to better production and a happier workplace.
There are a number of strategies you can use to keep it interested at “the office”:

• Performance Incentive Programs
• Contests that reward high performance
• Employee of the Month
• Performance/Holiday Bonuses

These are just a few of the ideas you can use. One of the best ways to appreciate your
employees is by calling a meeting and asking them how they would like to be rewarded.
Think about it for awhile and put the best strategy into play. Keep it fresh and change up
the strategy you use from time to time to keep your employees guessing. Once they get
used to the prize, it’s time for a whole new approach.

You need to build a community within your company. There needs to be support,
appreciation and respect. The more “at home” an employee feels, the better they will
perform and the higher their level of loyalty.

Marketing Strategy
Marketing is, of course, essential to the success of any business, but it also must work
cohesively with the other strategies you’re using. There are two major pillars of a
successful marketing strategy: The demographic and psycho-graphic profiles of your
customers.

The psycho-graphic tells you what your customers are the most likely to buy and the
demographic tells you who they are, which can help you learn why they buy specific
items. Without this information, it simply doesn’t matter how good your business
prototype is.

Systems Strategy

There are three types of systems in every business:
• Hard Systems
• Soft Systems
• Information Systems

Hard systems refer to inanimate system or systems that have no “life”. Soft systems are
those that could be living. Information systems which are, of course, everything else,
including customer data, product information, financial…anything with data and
numbers.

The most important of all three systems is the soft systems because it includes the sales
systems your business uses. In your sales system the two keys to success are: structure
and substance. Structure being what you sell and substance being how you sell it.
All three systems are essential to the success of your business and while they all have
their own very specific roles, they all must work together to get the job done. This also
goes for your entire business development program.

I want to take a moment to recap on the ideas we went over through the business
development lessons.
An entrepreneurial myth, or e-myth, is an assumption that anyone can succeed at
business with:

• Desire
• Some capital
• Projected a targeted profit

There are essentially three key roles that need to be filled to set your business up for
success:

• The Technician
• The Manager
• The Entrepreneur

The four different stages of a business life cycle are:

• Infancy
• Adolescence
• Growing Pains
• Maturity

There are a few things we are going to talk about:

• Business Format Franchise
• The Franchise Prototype
• Franchise Prototype Standards

There are three main areas of business development:

• Innovation
• Quantification
• Orchestration

7 specific areas you need to consider in your franchise prototype process. Here are all
seven again:

• Primary Aim
• Strategic Objectives
• Organizational Strategy
• Management Strategy
• People Strategy
• Marketing Strategy
• Systems Strategy

We can help you work through all of these areas and give your business a jumpstart that
puts you ahead of your competition right from the start.

The Three Keys To Business Development

Today I’d like to talk about the three keys to business development and how you can put
the right bricks in place to build a solid foundation.

There are three main areas of business development:

• Innovation
• Quantification
• Orchestration

If done well these three key areas will help you build a solid foundation for you business.
Let’s talk about each one of these briefly…

Innovation

Innovation should not be confused with creativity, which is the expression of ideas.
Innovation is taking these ideas and putting them into action. This is where a large
amount of your focus should be in the beginning and even throughout your business’
entire lifespan.

Quantification

This, of course, refers to the numbers. We are talking about the value of your
innovation. The best way to gauge this is by your customer response. Look for positive
responses to identify what you are doing right-and then keep doing it. Look to your negative
responses to find out what you’re doing wrong-and then fix these issues. This will enable you to keep
growing and progressing with the needs of your customers and business climate in mind.

Orchestration

Once you’ve had a chance to find out what areas are working best, you can narrow down these
areas and concentrate on making them your stand out ideas. You shift your focus here to
get the most out of your business and to meet the needs of your customers.
If your seriously considering growing or expanding your business to the next level. We can help you work through these three areas to put together a franchise prototype for you.

In the next few lessons we are going to transition to discuss the 7 specific areas you need to
consider in a franchise prototype process:

• Primary Goals
• Strategic Objectives
• Organizational Strategy
• Management Strategy
• People Strategy
• Marketing Strategy
• Systems Strategy

These 7 areas will fine turn your plan for the ultimate level of success.

 

Finding the Right Support for your Business

Today I’d like to talk to you about the different types of support staff you need and what
makes them so important.

There are essentially three key roles that need to be filled to set your business up for
success:

• The Technician
• The Manager
• The Entrepreneur

All of these roles need to be implemented simultaneously by different people with the right
talents to see the most success. It’s all about balance.

The Technician
This person represents the present and all that needs to be done for the physical
aspects of the business building process. They are the “doer”. This is usually the most
visible person of the entire operation.

The Manager
This person represents the past and works to fix problems through learning from past
mistakes. They are the practical side of the business and is in charge of putting together
the business and overseeing the planning.

The Entrepreneur
This person represents the future and the vision for the business. They are responsible
for the creative side of the business and are always considering ways to enhance
products/service, business image, branding and more.

All three of these characters are essential in the success of any business and to build a
solid foundation from the start, you need to work harder to find the right people to put
in these roles. Obviously, you need to be one of these key people, but ensure you find
the role that fits your skills and talents best, not necessarily what you THINK you should be
doing.

This may be a hard process for you, as you will need to relinquish some control over the
business and instill trust in the people you hire to allow them to do their jobs.

Best of luck… If you need any help with this process or any other areas in your business you can reach out to me.

 

Are You Aiding & Abetting E-Myths?

We are going to embark upon a journey through the world of e-myths and debunk them
to help you avoid falling into an e-myth trap.

First, let’s take a minute to talk about what an e-myth is. An entrepreneurial myth, or e-myth, is an assumption that anyone can succeed at business with:

• Desire
• Some capital
• Projecting their targeted profit

This sounds great, but it’s just not realistic. Think of starting a business as a marathon.
Sure, everyone starts out of the gate at record pace, but after a few miles people start
slowing and some drop out entirely. Building a successful business takes stamina and
agility.

The reality is that there are many different facets to a successful business and none of
them can be ignored if you plan to find success.

Let’s take a minute to talk about entrepreneurial seizure… Definition: Entrepreneurial seizure is the moment an entrepreneur decides it would be a great idea to start his or her own business. It’s when one believes that knowing how to do the work in a business is all one needs to understand in order to start and grow a business.

It defines the roller coaster
of emotions that comes with starting, nurturing and the potential failure of a business.
The emotions that occur, in order, are:

• Exhilaration
• Exhaustion
• Despair
• Sense of self-loss

This is usually caused by e-myths and the assumptions we talked about. You can get your
hopes so high on instant success that even the smallest lag and you are sent into an
emotional tailspin. This is also brought on by the stark realization that you can’t do it all
and will need help in the areas where you don’t have the knowledge. Now, faced with
limited choices you may feel like you need to back out or pivot, but don’t do this.
In my next post I will tell you the best course of action to take…

But if you can’t wait and need help desperately reach out to me immediately.

Kick Start Your Marketing

Today I’d like to teach you about the three most important start up marketing tools you need to get and keep new customers.

  1. In person: It’s essential you meet with customers/clients in person whenever possible. This shows you respect them and take the time to work with your clients to give personal attention to each of them.
  2. Follow up letter: Always take a moment to send a follow up letter about what you talked about, new agreements or partnerships made and to thank them for taking the time to meet with you. Likewise, you should always send thank you letters or small gifts to partners you find success with.
  3. Phone call: Use a telephone call to follow up with them to talk again about the matters you talked about in your meeting and offer any assistance you can to help their business run smoothly and more successfully.

None of these will work if you don’t have a quality product/service to back you up!

Here are the key steps for putting together your start-up marketing tools:

  1. Research potential customers, buyers, competitors and their preferred methods of distribution.
  2. Talk to potential customers. Take a hard look at your product from a customer’s perspective and see what it needs to be successful.
  3. Follow up with your 3-step process from above.
  4. Develop systems for contact follow through, quality control standards and customer service.
  5. Develop post-sale follow up system to keep lines of communication open is customers and build on your current relationship which increases future purchases.

“Marketing and innovation produce results; all the rest are costs” Peter Drucker, management consultant

Here’s another one I love from an icon:

“If there is any one secret of success, it lies in the ability to get the other person’s point of view and see things from that person’s angle as well as from your own.” Henry Ford, Founder of Ford Motor Company

This lesson has offered you the tools to put together a start-up marketing plan that can be used over and over again to help your customer base and business grow in a manageable way.