Sunday, 19 September 2021
Tuesday, 15 August 2017
5 Reasons Even Billionaires Seek Out Mentors
As a long-time mentor and business advisor, I find it ironic that many look only to friends for advice. They forget that friends tell you what you want to hear, while good mentors tell you what you need to hear.
When the message is the same from both, you probably don't need the mentor anymore, but you always need the friend. Also don't confuse a business mentor with a business coach.
A business mentor helps to fill an experience gap, while a coach helps fill a skill gap. Both may be required.
A mentor's aim is to teach you by using specific examples of what to do and how, unlike a coach who helps you develop your generic skills for deciding what to do and when.
Before you are ready for a mentor, you must know yourself. Have you assessed your strengths and weaknesses? What are your goals? Where are you heading?
Unless you know these things, no one can help you. Also, you need to be mentally prepared to accept advice and criticism, if it is honest, helpful, and given in a friendly way.
Once you are ready, what are some attributes of a good mentor and advisor that you should look for? You need someone who can:
1. Focus your ideas toward viable business results.
Most business owners have lots of ideas. Some can be put into practice easily, but others will be off-the-wall and need refinement to implement.
A good mentor will have knowledge and some perspective on almost every business subject, to keep your focus in the right ballpark, and the right ball.
2. Assess time spent on daily crises versus priorities.
It's easy to be driven most of the time by the crisis of the moment. As such, it's easy to neglect the real priority for growing the business.
Sharing your goals with your mentor means that if you don't complete goals, you have a credible voice to remind you and help get you back on the right track.
3. Recommend required pivots and exit strategies.
A successful business is constantly innovating. You need alerts to new pivot requirements, growth strategies, and partnering alternatives, with a realistic understanding of the costs and resources required.
Then, there is the exit strategy which needs planning, connections, and forethought.
4. Introduce you to the contacts and partners you need.
When you need contacts for investors, equipment, and legal or accounting advice, your mentor has the contacts and knows where to find the information.
More importantly, the mentor tells you what you need to do to build and maintain your own list of contacts.
5. Provide an unbiased and pragmatic status perspective.
A good mentor knows what to look for, and sees what your customers see. It's natural to become so immersed in your business that you forget to step back and look in from the outside.
It's like living next to the railroad tracks; after a while you don't even see or hear the trains.
How do you find that all-knowing business mentor who is a perfect match for your temperament and your business? The best approach I know is make a short list of the people you most respect in your domain, who are accessible, do your homework, and get to know them personally. If the relationship works, ask for their help. Compensation may be offered, but is often not required.
An ideal candidate is someone from the Boomer generation, who is semi-retired, but still active in local organizations or the investment community. Another alternative would be a business professional who does this for a living, or a role model in a related business who is willing to share.
Even famous billionaire business leaders, including Bill Gates and Mark Zuckerberg, have mentors. Of course, many of these are now friends as well. But in the beginning, you should assume that you need at least one of each, and the ability to tell the difference.(Martin Zwilling)
Source:Inc.
Thursday, 9 October 2014
10 Calculated Risks That Lead To Startup Success
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| Martin Zwilling |
The challenge is to avoid the bad risks, while actively seeking and managing the smart risks. There are no guarantees in business, but it pays to learn from the experiences of entrepreneurs and business experts who have gone before you. As a long-time mentor to entrepreneurs, here is my collection of smart risks that investors and I look for in new startups:
Focus on a tough customer problem rather than a fun technology. Investors hate technology solutions looking for a problem, due to the high risk of no customers. If the customer need is obvious and large, the calculated risk is in the quality of your solution, your team, and marketing. These are risks that can be mitigated with the right resources.
Schedule frequent updates to your solution to maintain growth. Assuming that you can quickly recover after competitors kill your cash cow is not a smart risk. You need a plan to regularly obsolete your own offerings, with continuous innovation, before customers send you negative messages. It’s hard to recover from a tarnished image.
Plan to deliver a family of products, rather than a one-trick pony. Even a great initial product, with no follow-on, won’t keep you ahead of competitors very long. A smarter risk is to build a plan, with associated greater resources, that will put you in position to expand your product line and keep one step ahead of competitors.
Implement a modern real business model. Providing everything free, and growing users to the max for years, like Twitter TWTR -0.23% and Facebook, is a high risk approach requiring deep pockets. Risk is more manageable with subscriptions and even freemium pricing. Even non-profits need revenue to cover their costs, and continue to provide services.
Find a strategic partner to accelerate growth. Everyone wants to forge ahead all alone, and kill every competitor in sight. Almost always, risks are more predictable when you use coopetition for access to new customers, economies of scale, and shared resources. Finding win-win deals is a manageable risk, versus a battle with one winner.
Use metrics to measure results of marketing initiatives. Too many entrepreneurs put all their resources in one big make-or-break effort they can’t measure, or they count on word-of-mouth and viral marketing, which are totally unpredictable. I like marketing plans that come from both inside and outside the box, but have milestones and measurements.
Recruit the best team members and provide incentives. Trying to save money by recruiting family members, or hiring only interns, is a bad risk. Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk.
Build your business with minimum outside funding. More money is not more likely to solve your problems or reduce your risk. Investors know that startups with too much money fail just as often as those with not enough. Strategically, you need a plan to survive through organic growth, with outside funding to effectively accelerate scaling.
Don’t rely on conservative forecasts to reduce risk. Investors don’t fund conservative forecasts, nor wildly optimistic ones, since both imply a lack of commitment or homework. Opportunity and revenue projections based on deep market and customer analysis are a smarter risk. Measurements and business intelligence along the way also mitigate risk.
Be a leader rather than following in the footsteps of another. Many entrepreneurs think they can reduce and predict risk by emulating previous winners like Google GOOGL -2.17% and Twitter. But stepping into a crowded space to steal customers is more risky than attracting new customers looking for a solution. Customers like leaders, not followers.
The risks you want to take are the ones that you planned for in your resources, set up metrics to measure, and manage on an ongoing basis. All the rest are bad risks, including problems you didn’t anticipate, competitors you didn’t know about, and customer expectations that you can’t meet.
An age-old measure of startup health is how much time top executives spend on containing bad risks, versus proactively exploring new risk opportunities. If the majority of your time is in recovery mode, your whole startup is likely a bad risk.(Forbes)
Become a Value Creator
Managers who adopt a mindset to create value hold the key to becoming truly successful leaders, says Brian Hall.
by Dina Gerdeman
As a young teacher at Harvard Business School, Brian J. Hall called on longtime professor James Cash for a favor: Hall wanted to study the inner workings of General Electric, and he needed Cash's help to get in touch with top-level executives who could provide insights for his research.
Later, Hall asked how he could pay back the favor. Cash put his arm around his colleague's shoulder and said, "You don't owe me anything, Brian. This is the way we do things here. Just pay it forward."
“Shareholder value or profits are measures, not goals in and of themselves”
"I will never forget that," says Hall, now the Albert H. Gordon Professor of Business Administration. "That had such a huge influence on me."
It's an example of what Hall calls "value-creating" behavior—doing a favor for the good of the organization without expecting anything in return.
Hall argues that managers who adopt a value-creating mindset hold the key to becoming truly successful leaders.
"Business is a team sport. It's soccer, not golf. Nobody plays by themselves and wins in business," Hall said during a seminar on value creation versus "value claiming" held at Alghanim Industries, one of the largest multibusiness companies in the Middle East. Hall previously served as EVP and then interim CEO of the company, and is now an adviser.
"You will never succeed until you become a good team player, somebody who thinks about other people and checks their motivations at the door."
MORE PIE FOR EVERYONE
In general, value creators work cooperatively with others to make the corporate pie bigger for all, whereas value claimers focus on taking more of the pie for themselves—like a thief steals for personal gain.
The business world is filled with value claimers, and this all-for-me attitude becomes apparent in a variety of ways.
For example, during internal corporate budget disputes, some executives focus only on their own needs without considering the requirements of other departments or individuals.
And then there are workers who hoard information like gold, believing that guarding certain company know-how gives them more power. Rather than sharing customer lists that might give another department a hand in making sales, for instance, they squirrel those names away. Some find more subtle ways to keep others out of the loop, like failing to copy certain colleagues on pertinent emails.
"People want to increase their power by keeping that information confidential," Hall says. "But you have to make sure you cc the right people. It's important to keep in mind which people need the information in order [for them] to do their job better."
A BAD HABIT
Most people don't look to become value claimers, but rather just fall into it as a way of protecting their own corporate turf, Hall contends. Eventually, it ends up becoming a habit that sticks. The instinct to claim is strong, so everybody will naturally be a little bit both a value claimer and a value creator.
But an executive can actively choose to be a value creator, someone who always looks for the "win-win," leaving enough room for both sides to benefit from a deal without feeling the need to swipe every last penny.
"Sometimes you have to give up something you want. It's a very hard thing to do, and no one is ever going to be perfect at it," Hall says. "But if you make it your goal to be a value creator, then it becomes an instinct, it becomes the lens you have on things, and it becomes easier. It's clarifying, and if you can focus on that, it is the way to win."
One way to be a good value creator: give coworkers credit where credit is due. The need to appear smart can lead managers to cast blame on others for missteps or to claim an employee's idea as their own when speaking before their bosses or boards—the kind of thing that can be terribly demotivating to the person who had the idea.
"It's a tragedy when that happens," Hall said. "Somebody is trying to claim value, but in doing so, the person has destroyed value for the company by demotivating an employee. Everybody loses." Having a staff member receive credit for good ideas not only makes the employee feel valued and motivates him or her to come up with better ideas in the future, but also makes the leader look good.
The purpose of business is simple and well-defined, Hall says: It's to make the world a better place, to create value. After all, companies that make their purpose just about profit often do poorly because both their customers and their employees sense this quest for the almighty dollar, which makes them feel as if they are being squeezed rather than served.
"Shareholder value or profits are measures, not goals in and of themselves," Hall says. "It's hard to wake up in the morning and get excited about creating shareholder value. The way to be a successful company is to think, How do we produce this at better costs, or how do we make this more valuable for our customers? The profits follow from that."
THE ROOT OF ALL SCANDALS
In 2008, greedy bankers became high-profile value claimers and nearly took the entire world into a depression, Hall says. They were slapped with tighter financial regulations as a result.
"Every scandal is the result of someone trying to claim value at the expense of others. You have the license to be a bank because you're supposed to make the world a better place. Instead, when a group of banks makes very poor decisions, all because individuals were doing something that was better for them, bad things happen and society changes the rules on them. They lose in the long run."
During the seminar, Hall outlined three reasons executives should give great consideration to becoming value creators:
What goes around comes around. Executives shouldn't look to create value only because they hope to receive a favor or other reward in return.
"That's a very transactional, short-run approach," he said. "That doesn't work well in companies, and it doesn't work well in marriages. Imagine if you and your spouse wanted something in return for every little thing you did, and you had to make sure every single thing was even."
But when you extend yourself in a way that creates value for a coworker and for the company as a whole, many times a good portion of the pie will come back to you. Rewards, in the form of greater compensation, promotions, or other benefits, are often dealt to those who create value in their companies.
It's the safest route. It may feel risky to give others credit—particularly when you may be worried that no one will do the same for you—but you will actually feel safer and less anxious by doing the right thing.
"I've never been a bank robber, but I can imagine it's an anxious way to live. You know what you're doing isn't right and you might get caught," Hall said. "There are lesser versions of that in companies. People know the reason they get by is that they're very good at protecting their turf and getting their piece of the pie, rather than someone knowing they are very good at what they do and are creating value. This creates very different levels of anxiety. It's much safer to be a team player."
Others will like you, and ultimately you'll be happier. People who are bad sports in the business world stand out.
When Hall gives his talk to managers and executives and asks them to think about people in their organizations on the two ends of the spectrum—value claimers versus value creators—they generally have no trouble visualizing them right away.
"What does that tell you? What we all know is that people develop reputations," Hall said. "When you're a non-team player and it's all about you, it becomes obvious. People are not very self-aware about how transparent it is. But if you think you're getting away with it, you're not. People know."
And if you're not well liked and respected, quite simply it's hard to be happy, Hall believes. During the seminar, Hall gave the example of a coworker who was a big value claimer, starting every sentence with "I" and always making everything about him. He was a lonely guy. Nobody liked him, and when he left the company, nobody shed a tear.
"It's not a fun life," Hall said, noting that the biggest predictor of happiness in life is good relationships. "If you have really good relationships, you have really good friends. You have people who have your back, who believe in you, who really respect you, and you feel the same way about others. If you have that in your life, it's very hard not to be happy.
"If you don't have that, it's impossible to be happy."(HarvardBusinessSchool)
About the author
Dina Gerdeman is a writer based in Mansfield, Massachusetts.
by Dina Gerdeman
As a young teacher at Harvard Business School, Brian J. Hall called on longtime professor James Cash for a favor: Hall wanted to study the inner workings of General Electric, and he needed Cash's help to get in touch with top-level executives who could provide insights for his research.
Later, Hall asked how he could pay back the favor. Cash put his arm around his colleague's shoulder and said, "You don't owe me anything, Brian. This is the way we do things here. Just pay it forward."
“Shareholder value or profits are measures, not goals in and of themselves”
"I will never forget that," says Hall, now the Albert H. Gordon Professor of Business Administration. "That had such a huge influence on me."
It's an example of what Hall calls "value-creating" behavior—doing a favor for the good of the organization without expecting anything in return.
Hall argues that managers who adopt a value-creating mindset hold the key to becoming truly successful leaders.
"Business is a team sport. It's soccer, not golf. Nobody plays by themselves and wins in business," Hall said during a seminar on value creation versus "value claiming" held at Alghanim Industries, one of the largest multibusiness companies in the Middle East. Hall previously served as EVP and then interim CEO of the company, and is now an adviser.
"You will never succeed until you become a good team player, somebody who thinks about other people and checks their motivations at the door."
MORE PIE FOR EVERYONE
In general, value creators work cooperatively with others to make the corporate pie bigger for all, whereas value claimers focus on taking more of the pie for themselves—like a thief steals for personal gain.
The business world is filled with value claimers, and this all-for-me attitude becomes apparent in a variety of ways.
For example, during internal corporate budget disputes, some executives focus only on their own needs without considering the requirements of other departments or individuals.
And then there are workers who hoard information like gold, believing that guarding certain company know-how gives them more power. Rather than sharing customer lists that might give another department a hand in making sales, for instance, they squirrel those names away. Some find more subtle ways to keep others out of the loop, like failing to copy certain colleagues on pertinent emails.
"People want to increase their power by keeping that information confidential," Hall says. "But you have to make sure you cc the right people. It's important to keep in mind which people need the information in order [for them] to do their job better."
A BAD HABIT
Most people don't look to become value claimers, but rather just fall into it as a way of protecting their own corporate turf, Hall contends. Eventually, it ends up becoming a habit that sticks. The instinct to claim is strong, so everybody will naturally be a little bit both a value claimer and a value creator.
But an executive can actively choose to be a value creator, someone who always looks for the "win-win," leaving enough room for both sides to benefit from a deal without feeling the need to swipe every last penny.
"Sometimes you have to give up something you want. It's a very hard thing to do, and no one is ever going to be perfect at it," Hall says. "But if you make it your goal to be a value creator, then it becomes an instinct, it becomes the lens you have on things, and it becomes easier. It's clarifying, and if you can focus on that, it is the way to win."
One way to be a good value creator: give coworkers credit where credit is due. The need to appear smart can lead managers to cast blame on others for missteps or to claim an employee's idea as their own when speaking before their bosses or boards—the kind of thing that can be terribly demotivating to the person who had the idea.
"It's a tragedy when that happens," Hall said. "Somebody is trying to claim value, but in doing so, the person has destroyed value for the company by demotivating an employee. Everybody loses." Having a staff member receive credit for good ideas not only makes the employee feel valued and motivates him or her to come up with better ideas in the future, but also makes the leader look good.
The purpose of business is simple and well-defined, Hall says: It's to make the world a better place, to create value. After all, companies that make their purpose just about profit often do poorly because both their customers and their employees sense this quest for the almighty dollar, which makes them feel as if they are being squeezed rather than served.
"Shareholder value or profits are measures, not goals in and of themselves," Hall says. "It's hard to wake up in the morning and get excited about creating shareholder value. The way to be a successful company is to think, How do we produce this at better costs, or how do we make this more valuable for our customers? The profits follow from that."
THE ROOT OF ALL SCANDALS
In 2008, greedy bankers became high-profile value claimers and nearly took the entire world into a depression, Hall says. They were slapped with tighter financial regulations as a result.
"Every scandal is the result of someone trying to claim value at the expense of others. You have the license to be a bank because you're supposed to make the world a better place. Instead, when a group of banks makes very poor decisions, all because individuals were doing something that was better for them, bad things happen and society changes the rules on them. They lose in the long run."
During the seminar, Hall outlined three reasons executives should give great consideration to becoming value creators:
What goes around comes around. Executives shouldn't look to create value only because they hope to receive a favor or other reward in return.
"That's a very transactional, short-run approach," he said. "That doesn't work well in companies, and it doesn't work well in marriages. Imagine if you and your spouse wanted something in return for every little thing you did, and you had to make sure every single thing was even."
But when you extend yourself in a way that creates value for a coworker and for the company as a whole, many times a good portion of the pie will come back to you. Rewards, in the form of greater compensation, promotions, or other benefits, are often dealt to those who create value in their companies.
It's the safest route. It may feel risky to give others credit—particularly when you may be worried that no one will do the same for you—but you will actually feel safer and less anxious by doing the right thing.
"I've never been a bank robber, but I can imagine it's an anxious way to live. You know what you're doing isn't right and you might get caught," Hall said. "There are lesser versions of that in companies. People know the reason they get by is that they're very good at protecting their turf and getting their piece of the pie, rather than someone knowing they are very good at what they do and are creating value. This creates very different levels of anxiety. It's much safer to be a team player."
Others will like you, and ultimately you'll be happier. People who are bad sports in the business world stand out.
When Hall gives his talk to managers and executives and asks them to think about people in their organizations on the two ends of the spectrum—value claimers versus value creators—they generally have no trouble visualizing them right away.
"What does that tell you? What we all know is that people develop reputations," Hall said. "When you're a non-team player and it's all about you, it becomes obvious. People are not very self-aware about how transparent it is. But if you think you're getting away with it, you're not. People know."
And if you're not well liked and respected, quite simply it's hard to be happy, Hall believes. During the seminar, Hall gave the example of a coworker who was a big value claimer, starting every sentence with "I" and always making everything about him. He was a lonely guy. Nobody liked him, and when he left the company, nobody shed a tear.
"It's not a fun life," Hall said, noting that the biggest predictor of happiness in life is good relationships. "If you have really good relationships, you have really good friends. You have people who have your back, who believe in you, who really respect you, and you feel the same way about others. If you have that in your life, it's very hard not to be happy.
"If you don't have that, it's impossible to be happy."(HarvardBusinessSchool)
About the author
Dina Gerdeman is a writer based in Mansfield, Massachusetts.
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