Tag Archives for " business "

8 Essential Personal Traits for Leading Your Business to Success

Individuals dependably need to recognize what makes a decent pioneer. It’s typically in light of the fact that they’re attempting to wind up plainly a pioneer, or they’re attempting to discover a pioneer to work for their organization.

A few people are normally great pioneers. Other individuals can possibly be pioneers in the event that they’re willing to build up their administration aptitudes. In any case, you have to perceive that initiative is more than remaining at the front of a room, having an office or inspiring individuals to get things done for you.

Leading isn’t as simple as it looks. Leaders go up against more work, more anxiety and a greater number of requests than meet the eye. However, in the event that you have the attributes of a pioneer, you are prepared to be effective.

To be clear, there isn’t a correct arrangement of administration characteristics somebody must have. I’ve discovered that great pioneers in my organization, Patriot Software, have the qualities underneath. I’m certain any individual who has these qualities can possibly be a good leader.

  1. Detailed

    One trait of a decent pioneer is a scrupulousness. Pioneers must have precise and careful work execution. They should scour every last bit of plans and completed items to ensure all bases are secured. Nothing ought to go untouched. Great pioneers should spot seemingly insignificant details that go unnoticed by others.

    Great pioneers should likewise thoroughly consider every one of the subtle elements. They should think far out into the future and consider the effect of their choices. Pioneers must consider all the conceivable ways.

  2. Organized

    The characteristics of a good leader unquestionably incorporate association aptitudes. They comprehend what is on their plate and when things should be finished. They have a timetable and due date for every one of their errands. They additionally realize what their laborers are doing and what ventures are coming up.

    Leaders require some kind of association framework. They don’t let essential papers lay around or make gatherings without setting an update. Sorted out pioneers know precisely what is happening around them and know where to discover everything.

  3. Knowledgeable

    Learning is a standout among the most recognizable characteristics of a good leader. Pioneers ought to have a huge information of the business they are working in. Furthermore, on the off chance that they work in something, the leader ought to have profound learning in their specialization. Other individuals ought to go to leaders to request counsel and suppositions.

    Leaders ought to likewise have an energy for persistently learning. Leaders should need to extend their insight and enhance their abilities.

  4. Leads by example

    The capacity to show others how its done is yet one more of the traits of incredible leaders. Specialists should take a gander at a leader and know precisely what is anticipated from them. On the off chance that a leader needs laborers to invest additional effort, the leader should invest additional energy. In the event that specialists ought to speak with each other unquestionably, the leader should lead by utilizing that specialized technique.

    A leader should dependably know about their activities on the grounds that their laborers will mirror them.

  5. Servant’s heart

    Should a leader lead, as well as serve. Leaders need to deal with their laborers. Leaders ought to get some information about their needs. A decent leader ought to be mindful to laborer satisfaction and inspiration. They think about the general population around them.

    Leaders should likewise concentrate on clients. Clients have needs and yearnings, as well. Leaders should discover what clients need to please and serve them.

  6. Integrity

    Respectability is a quality of good leaders. Leaders must be straightforward. They ought to never lie, cheat or take. You ought to have the capacity to confide in a leader.

    Leaders regularly are trusted with more essential or touchy assignments. Different specialists must trust the leader to be honest in their work and settle on the most legit choices. The leader ought to have some straightforwardness to tell individuals what they are doing. What’s more, the leader must be OK with being considered responsible.

  7. Give time

    Leaders will surrender their time for the benefit of their occupation and business. Leaders complete the occupation they’re doing, regardless. On the off chance that that implies they set aside additional opportunity to complete the employment, they’ll do it.

    Leaders are not clock watchers. They will invest more energy than what’s normal. In any case, investing more energy doesn’t mean leaders squander the standard work hours. Leaders utilize their time admirably and are engaged. They sort out their errands to complete the most work in the time they have, and they’re continually searching for approaches to build efficiency at work.

  8. Passion

    Leaders have pride and possession in their work. For leaders, their work is more than a vocation. Their work is their obsession. Leaders cherish what they do and urge others to end up plainly enthusiastic about it, as well.

    Leaders are forever discontent with their work. They are always headed to move forward. They are expended and are continually pondering their work. Also, leaders push others to show signs of improvement at their work.

Entrepreneur.com

Like the article or it found it useful ? Share it!

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.

7 Principal of Business Models

The Business Model Archetypes are seven principal business “identities” whereupon any plan of action can be produced. By giving the setting of every single accessible model, it ends up noticeably less demanding to perceive how organizations relate and bearings in which organizations can rotate. In this article, we’ll talk about the model and the paradigms, and also depict utilize designs where the models may profit business visionaries and item strategists who utilize the model.

Background & Context

The reason for a plan of action is to compactly depict the capacity of your business inside the general market scene, including points of interest, for example, business sources of info and conditions, target client base, and the esteem being made for those clients. By utilizing such a calculated build for assessing a business, strategists can all the more effectively comprehend the capacity of the business, distinguish qualities, shortcomings, and openings, by looking at the characteristics of other comparative organizations who might utilize a comparable auxiliary model.

While the idea is extraordinary, the estimation of such an activity is lost on numerous item supervisors, who require something more minimized and quickly usable. There is a developing library of mainstream models that pass by names like ‘Razor and Blades’ and ‘System Effects Business’ which depict famous models that have been effectively utilized by different organizations, yet the learning is diffuse and there is little association or setting from which to effortlessly find and analyze display alternatives that might be proper for a business. The net outcome is that unless you have formally contemplated business methodology, there’s a decent possibility you don’t know about these known models, and in this manner the knowledge they speak to is not utilized. It is basic however for item directors to unmistakably explain the capacity and contact of their business in the market.

It was on account of this test an alternate approach was created, called The Business Model Archetypes. The idea is gotten from work via Carl Jung, the twentieth century Psychiatrist who proposed there are key identity formats from which we as a whole acquire and join ascribes to make our own particular identities. By understanding the basic layouts he trusted, you could better comprehend the identity of an individual, and foresee their reaction to an assortment of jolt. He called this hypothesis, the Personality Archetypes.

Jung’s idea is additionally applicable to the crucial identities of a business and gives an amazing auxiliary base from which to recognize the range of conceivable formats. On account of organizations, there are three essential identities that portray the central interests and exercises of each business. What’s more, like an added substance shading wheel, three optional originals are determined by brushing properties of the three essential paradigms:

PRIMARY

Product – one time purchase of an artifact
Service – manually doing something and charging a fee
Trade – Connecting buyers and sellers for commerce

SECONDARY

Brokerage – providing trade as a service
Subscription – productizing and semi-automating a service
Marketplace – productizing trade with a self-service platform
Ecosystem – Platform that combines all three (Mature)

About the Model

These seven prime examples are abnormal state reflections that portray essential truths about classifications of organizations. This can be useful for recognizing a summed up setting from which to figure out where in the range of conceivable outcomes to center your endeavors, yet it is not sufficiently particular to be noteworthy. For this, two models were added to each of the model prime examples. A model is a more particular and practical exhibit of what is conceivable inside a model prime example.

To exhibit this thought, the Trade original has two model cases: eCommerce and Lead Generation. Both are cases of sourcing something of significant worth and conveying it to the market available to be purchased. In both cases, cash is made on the spread between the cost of obtaining the thing and what it can be sold for by the dealer by taking it to advertise and advancing it. Additionally programming and substance are the two most normal sorts of items to offer on the off chance that you are an online business.

Having the capacity to see the range of auxiliary choices is an awesome place to start thoroughly considering the system of your business. Commonly, groups will discover they relate more emphatically to one of the prime examples than the others, yet while assessing their alternatives all the more intently, they may have the capacity to sensibly turn to the neighboring models, giving extra open door and possibly even a more creative and powerful way to deal with their business. An all around associated Trader for instance may discover enthusiasm for extending their business through a Brokerage show, by giving Dropship satisfaction of their items. Or, then again they might be occupied with building a classification driving brand online by setting up the go-to Marketplace for the sorts of items they have some expertise in.

The critical indicate is set aside the opportunity to do the investigation and to comprehend the essential capacity of your business and to consider the conceivable minor departure from your topic that may be more ideal that what’s going on with presently. That is the place the Business Model Archetypes structure is helpful, by furnishing an applied system with which to thoroughly consider the conceivable open doors you might not have considered. Toward the day’s end, each item chief have the capacity to obviously express their business’ foundational methodology and to comprehend their unique situation and development and turn choices – this structure gives an improved technique to accomplishing these objectives.

About the Archetypes

Here some brief explanation of each of the archetypes to demonstrate further:

1.Product

This essential original concentrates on the advancement of a substantial relic that can be purchased and sold for a one-time cost. The item is generally expended either on the grounds that it gives individual stimulation, or in light of the fact that it offers some pick up of effectiveness and can be gained for less cost than employing an administrations organization to play out a movement. At the point when connected to the online world, the most widely recognized sorts of items are programming as modules for real stages, for example, WordPress, or substance as portable applications of eBooks. Demonstrative Attributes

 

  • Key partners: Marketplaces
  • Value proposition: Productivity or entertainment
  • Key Activities: Product Development
  • Monetization: Sale of product.

2. Subscription

This optional model is a prevalent mix of an item and an administration. The most well-known illustrations are programming as an administration (SaaS) and Content as a Service (CaaS). As opposed to purchasing a substantial item one time at a most extreme cost, the membership demonstrate gives proceeded with access to the item or administration for a lesser month to month cost, and keeps on refreshing, enhance, and bolster the item over its lifetime. The advantage for the business is a lessening in advance cost, decreased reliance upon a commercial center, and a proceeded with association with the client. For the client, its additionally an approach to decrease in advance cost, and ofte implies approaching more and preferable assets over on the off chance that they expected to buy the unmistakable equivalent.

  • Key partners: Ecosystem platform owner
  • Value proposition: Customization and support of platform
  • Key Activities: Customization and maintenance
  • Monetization: Time and materials

3. Service

The third essential model gives impalpable answers for clients and customers, where commoditized items are not adequate. Frequently this is as combination, upkeep, or customization of a prevalent stage arrangement. Normally this sort of association is framed by an association of talented experts who offer their administrations for a hourly rate.

  • Key partners: Ecosystem platform owner
  • Value proposition: Customization and support of platform
  • Key Activities: Customization and maintenance
  • Monetization: Time and materials

 

 

4. Brokerage

This an auxiliary prime example which consolidates the exercises of Trade and Service by exchanging for the benefit of customers, as an administration. These organizations commonly benefit purchaser confronting brands that attention on showcasing and need help with more proficient sourcing. Model cases of this sort of business incorporate publicizing systems which give online movement sourcing to brand retailers, and dropship programs which regularly have further sourcing connections, and preferred satisfaction connections over the brands they benefit.

 

  • Key partners: Wholesalers
  • Value proposition: Efficient commodity procurement
  • Key Activities: Recruiting Wholesalers
  • Monetization: Base fee plus commission

5. Trade

The essential prime example of Trade concentrates on associating purchasers and merchants. Cash is earned by purchasing an item for short of what it IS sold for. The merchant’s essential occupation is sourcing something of significant worth “in the field”, bundling it, and making it promptly accessible to the individuals who crave it. Prototypical illustrations incorporate the eCommerce retailer and lead era. In both of these illustrations, the Trader sources something, qualifies and sets it up, then pitches it to a client. On account of lead era the conduct is the same as retail, with the exception of that the item is data about a client prospect.

 

  • Key partners: Product sourcing and advertising
  • Value proposition: Low price, convenience, and curation
  • Key Activities: Sourcing and advertising
  • Monetization: Product arbitrage

6. Marketplace

The Marketplace is an optional original that joins traits of the essential Trade and Product models. It unites purchasers and venders for exchange, however it does o by means of self-administration stage which itself is item. The item could be a physical shopping center or an online innovation stage that encourages installment preparing and factual revealing. What is sold in a commercial center can either be substantial items or administrations. In both cases, the esteem and the viability of the commercial center is influenced by Metcalfe’s law (otherwise known as Network Effects): the estimation of the system exponentially increments with each new hub on the system. This can be an effective dynamic that manages a commercial center once minimum amount is accomplished, however it can likewise be somewhat hard to achieve minimum amount in any case.

  • Key partners: Merchants (sellers)
  • Value proposition: Destination shopping
  • Key Activities: Recruit vendors and advertise
  • Monetization: Commission per sale

7. Ecosystem

The Ecosystem is the main Tertiary paradigm in this model, in that it consolidates every one of the three essential originals – Product, Service, and Trade. This is the rarest and most troublesome paradigm to accomplish yet is the more alluring. Accomplishment with one essential or auxiliary prime example conduct normally opens up the chance to expand the brand into complimentary and synergistic offerings. An item maker for instance, may begin to offer administrations in support of their item. On the off chance that that too is effective, they may start taking a gander at how to encourage commercial center exercises and a large group of other strong practices. The majority of the synergistic movement digs in the brand as a market pioneer, and adds to the esteem chain and saw estimation of the client. Run of the mill model cases of a biological community are the innovation stage (Salesforce CRM, Microsoft, and so on) and the media stage (NBC, Facebook, and so on).

  • Key partners: PaaS providers
  • Value proposition: Turnkey software and management
  • Key Activities: Develop software and manage servers
  • Monetization: Subscription fee

 

Like the article or it found it useful ? Share it!

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.

 

How to Restructure A Problem Company

Your organization is stuck in an unfortunate situation. Your requests are down, your clients don’t pay, your workers are frightened, and the ATM reliably spits back your card at you with despise. Positively you’ll need to roll out a few improvements on the off chance that you expect to survive. Yet, what would you be able to do?

Bounty, trust it or not. It may not appear like it now, but rather it’s conceivable to uncover yourself from underneath that opening and even returned more grounded – gave you’re willing to submit yourself to making a few changes in the way you work together. We should caution you, this procedure is presumably not going to be horrendously wonderful. In any case, walk yourself through the accompanying 12 stages, in no specific request, and it’ll all be justified, despite all the trouble.

1. Discover how long you have to live

You know it’s about the green. It doesn’t make a difference a lick that you are near profitable or have a huge number of fulfilled clients in the event that you come up short on money. So in case you’re not fixated on your OOC (“out of cash”) date, you ought to be. Compose it in reverse on your restroom reflect in red lipstick.

Enhancing your income position begins with mindfulness. George Mueller, 31, CEO of advanced lighting organization Color Kinetics Inc. , is very comfortable with this idea: “At Color Kinetics,” says Mueller, who has developed his Boston-based organization from two to 80 employess in pretty much four years, “the CFO messages our correct OOC date to all senior administration on a week by week premise, so that everybody knows.”

2. Getting paid

Go to chip away at your working capital. Howard Anderson, senior overseeing chief of funding firm YankeeTek Ventures , says you ought to take a shot at your records receivable consistently. It’s hard to believe, but it’s true, each day. It sucks, yes, however in the event that you don’t, two things may happen: 1) Some other person gets paid to begin with, or 2) Your client leaves business before paying you.

Mueller develops the idea: “Bring the little organization perspective into it. Get your connections to drive the installment procedure. You should have the capacity to state, ‘Look, we are only a little organization, and we should be paid on time to work with you.’ ” at the end of the day, work your contact, and quit managing that records payable office in Ireland.

What’s more, don’t be reluctant to request forthright installments, offer extraordinary rebates temporarily on quickened installment and take care of your credit strategy. “Be cautious about who you stretch out credit to,” exhorts Anderson. Now in the economy, you ought to have no motivation to accept that the other person isn’t having the same monetary issues you are.

3. Negotiate everything

You need to adjust your ethical commitment to your providers with your objective of remaining alive. Your real sellers constitute imperative connections, especially those that aren’t effectively supplanted, and you likewise have a notoriety to maintain. (Keep in mind, for most business people, you are your business.) However, your sellers would preferably be paid later than never by any stretch of the imagination, and they would preferably be paid 50 pennies on the dollar now than 10 pennies a long time from now in chapter 11 court. You can consult with your merchants, insofar as you’re blunt. Say, “Look, I can pay you X percent now, and on the off chance that we make it, I can pay you the rest later and we’ll all win. Else, you’ll end up getting significantly less.”

4. Diet and exercise

The way to survival, says Anderson, is to cut your consume rate. He prescribes that you outline the accompanying witticism and hang it on your divider: “Utilize it up, destroy it, make it do, or manage without.”

Mueller concurs that regardless of the possibility that you are a moderately new organization, you can improve on cost control. “Every now and again a great many people don’t deal with the cost line all around,” he says, “and that is the one line you have finish control over.”

Variable advertising expenses and travel and costs are the principal line things to take a gander at. Mueller suggests asking your business people, “Do you truly need to fly there this week? Could we send less individuals to the public expo?”

On the off chance that you have encountered staff close by, they ought to know the benchmarks for proper expenses in your industry. “Once at Color Kinetics,” clarifies Mueller, “our VP of assembling put out a notice that every single overnight shipment must be closed down by senior administration. I thought this was an awfully bureaucratic process at in the first place, until I discovered that our delivery costs where around three to four times that of our rivals. The outcome was critical cost investment funds.”

In the event that you don’t have these benchmarks accessible in-house, go out and get them. For example, six years prior, at age 31, Robert Kelly obtained Chicago-based healthy skin beautifying agents distributor Phyto Cosmetics. Since Kelly was new to the field, he moved toward industry specialists to discover where to get the most value for his money. “They disclosed to me which exchange shows to go to and what comes back to anticipate from different showcasing procedures.”

5. Beat the streets

You have to get as much income in the entryway as quick as you can. Change your valuing structure, increment delivering and dealing with charges, include a “regulatory expense,” search for new markets, search out expansions to existing markets- – or the majority of the above.

Meet with your business group 10 times each day. Mueller says you better ensure your business group comprehends what’s critical – the key records that will produce prompt money etc – and get them concentrated on accumulations also. Truth be told, why not get the entire organization included? Says Mueller: “Advise everyone to call five records. Everyone in the entire firm, begin smiling and dialing. Give them the down to business deals prepare, and for the following two weeks you’ve quadrupled your business compel.”

6. Get entire company included

You’ll be surprised at the ideas that come up if you take the time to discuss your current situation with your employees. After all, they have a vested interest in your company’s future as an ongoing concern, and they can really highlight the inefficiencies in your organization. Plus, if they come up with the idea, they’ll be more willing to deal with the painful consequences. If it’s your employees who together decide they can do without unlimited KitKats, then instead of an ogre, you’re a hero. And instead of productivity suffering, it may actually increase.

7. Move

Just the act of cleaning house can be a catharsis that gets your company in the mind-set of change. Moving offices is even better-a new look, lower costs and greater efficiency can often result.

8. Reorganize

At times your issues are basic. Liz Goldberg, 32, proprietor of 2-year-old Chicago-based craftsmanship counseling firm Design Arts Inc., discovered that lesson when she began her firm with an accomplice, part the organization 50/50. “I invested a considerable measure of energy simply nursing the relationship,” reviews Goldberg. “I was offering less and helping her more. Inside six months, it turned out to be certain that it simply wasn’t working, so I chose to get her out.”

The determination didn’t come efficiently or easily for either party (at last it took enrolling legal advisors to settle the buyout), however Goldberg was at long last allowed to develop her business.

9. Outsource

Kelly, of Phyto Cosmetics, outsources instructors for his instructive line of business. “I attempted three separate contracts, and none of them worked out,” he says. Be that as it may, with outsourcing, he has around twelve teachers conveying his item. Kelly says this arrangement gives him more scope over a more extensive scope of clients, enables him to contract better-quality staff and brings down his expenses.

You can likewise attempt to outsource your bill paying, accounts, charges, finance, IT and other tedious capacities. On the off chance that you have an outside speculator, check whether there are economies of scale to be picked up by consolidating deals or regulatory capacities with other portfolio organizations.

10. Terminate

You may not think you have any space to cut staff, yet you do. Also, if money is truly tight, an end or two is for all intents and purposes unavoidable. This is precarious business, yet in the event that took care of appropriately, it can truly get your firm on strong balance.

11. Sell

When in doubt, consider a proactive liquidation. There are colossal points of interest to selling part or the greater part of your organization as opposed to being constrained into liquidation by your providers.

To begin with, on the off chance that you exchange, you make major decisions. You can think of your own blueprint, hold cash for proper severance bundles for laid-off workers, get your best merchant connections what’s coming to them, and best yet, go out in style.

Joel Toner, for one, SVP of business advancement for the now-ancient Garden.com, worked through the liquidation of the 350-man firm. “We settled on the liquidation choice basically to secure workers and the client base,” he says. Going farther on an appendage, clarifies Toner, would have endangered Garden.com’s capacity to pay severance. Besides, says Toner, it enabled them to “want to go down dignified.”

Legitimate chapter 11, then again, implies that you have no control. The court may assume control, sell resources at a far more regrettable cost than you could have brought yourself, and may not take into account your workers to be dealt with in a way you think suitable. It can likewise delay for a considerable length of time.

12. Pull it together

Keep in mind these keys in executing a rebuilding:

  • Be a realist: Your organization is not going to change into Microsoft overnight, and changes set aside opportunity to produce results. Settle on great business choices, and the rest will come.
  • Impart regularly: As Mueller says, “More correspondence is constantly superior to less correspondence.” Your representatives, clients, providers and speculators are in this with you. Give them a chance to assist.
  • Show others how its done: “In case will request that your workers take a compensation cut,” says Anderson, “begin with yourself. On the off chance that you need them to work additional hard, don’t leave at an early stage Friday evening.”
  • Know when to give up: Not every incredible thought are awesome organizations. Besides, it’s unpleasant to carry on a steady hand-to-mouth battle. There are a considerable measure of things to do in this world, so don’t squander excessively time attempting to raise the Titanic.

Being a little organization offers you many points of interest you are deft and can alter course voluntarily. Utilize your little size further bolstering your good fortune, and change regularly. All the torment you experience now will delay your life and at last make your firm more productive. What’s more, don’t move occupied from A to B in view of long haul concerns. Keep in mind John Maynard Keynes’ axiom: “Over the long haul, we are all dead.”

 

Like the article or it found it useful ? Do share it!

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.

 

 

5 Secrets to Coach Your Employees

It is no matter what role we got in ourselves, as examples entrepreneurs, executive or others, we are in the same motion, react to every events in our life, feeling pressure to do better and always think about the outcome. Actually, this is not the bad behaviors to have but this is a space in which we thrive and survive. It is only matter of time before it gives impact to our behavior and this is why coaching for high-performing individuals who work in innovative business is a great fit.

First of all, what is coaching ? Some things means vary to other people. It can mean a certain technique that is referred to “coaching” or actually a counseling or feedback.

For example, you may heard a manager will say, “Let me give you some coaching around ABC,” and then they explained to an employee why they failed to accomplish a task. The manager then explains the right way to do the ABC. So what does a real coaching conversation look like? Well, something like this: “So, how do you think your presentation on ABC went?” The employee is given time to reflect, respond and be an active participant in the conversation. The manager continues to ask thoughtful questions such as: “What would you have done differently?” ”What actions will you take?” or “How can I support you?” Do you notice the difference? This is a coaching conversation where the employee is empowered to act while being supported by their manager. The employee gains confidence knowing that they own the outcome while feeling acknowledged and supported by their manager.

So, to integrate coaching into your talent management strategy, you should follow these five steps:

1. Educate your leaders

  • Start at the very beginning and educate the executives on various and benefits between couching and counseling.
  • Ask them about their perspectives on coaching and also their willingness to participate and support coaching initiative.
  • Explain to them the benefits of coaching and ask how they will implement that inside their organizations.

2.Identify coaches, participants and executive sponsors

Search for individuals and managers that can be trained to be internal coaches inside the company. These talents may be inside your talent management and organizational development areas or could exist inside the business itself. Participants should be excited to be part of the program and willing to make a commitment. Just as important as identifying the coaches and participants is to make certain that you have executive sponsorship. Determine which executives would like to sponsor the program and be a participant. Request that they support you in your coach and participant identification, marketing efforts, during participant enrollment and throughout the program’s life cycle.

3. Manage expectations

Make sure to set clearly the expectations with your internal coaches, people being coached, executive sponsors and of course your managers and colleagues. It is best to run the initial program as a pilot and build upon its success. Make certain everyone is clear on the goals of the program, time commitment and their roles and responsibilities.

4. Train

Enroll your internal coach candidates in a coach-training program that is designed to train individuals that work inside companies as a coach. If you choose to enroll internal employees to become coaches, ensure they’re being coached by a coach with experience coaching internal coaches.In addition, be sure to train the individuals who are to be coached on the role and responsibilities of the participant, while establishing a clear and consistent process for enrolling clients, coaching time and exiting clients.

5. Measure success

Prior to starting the program, determine how you will measure its success. It may be done simply by using a net–promoter score or setting up a simple impact study. (It doesn’t have to be a rigorous measurement such as ROI.) If your program is embraced and utilized (coaching clients show up and participate in the coaching), then that’s a great sign. Interviewing them or surveying them on the benefits they received is also an excellent idea. In addition, be sure to ask the managers of the program’s participants about the changes they may have noticed in their employee’s behaviors after being coached.

In a time where we’re surrounded by change and have so many demands on our personal and professional lives, the need for coaching is at an all-time high. Coaching is a model for engagement, empowerment and accountability. It teaches those being coached to be responsible and to “own” their results. By engaging in coaching, you’re making a decision to replace mediocrity with high-performance.

Like the article or it found it useful ? Share it!
Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map? Visit The Miracles of Capital for more details.

Why Do You Need Exit Strategy in Your Business ?

What are your long-term and short term goals for your business ?

Veteran entrepreneur Celeste Hilling, CEO and founder of 10-year-old lifestyle company Skin Authority, stumped me with this question a few weeks ago, but she definitely left me with something to think about. When I started Deborah Mitchell Media Associates a few years ago, I was primarily concerned about getting it up and running, but Hilling explained that an exit strategy should be a part of every business plan.

“At the start of your venture, have a plan for how you want to exit or transition from the business. This will help you be clear in your focus, share a clear vision for your staff and navigate times when you are confused,” Hilling says. “You can use the end game as your compass. Does this decision put you within reach of your end goal? Do you want to sell the business to a public company, use it to produce cash for your lifestyle or create a legacy for your children’s future? This decision will help direct your path in channels, distribution, brand profile, partnerships, media, etc.”

It turns out, without a detailed exit strategy, I have been working harder, not smarter, with no real plan for the end. Over the years, I have made several changes in terms of the vision for my business, an evolution that is not uncommon.

“This is very normal. Laura and I started DigitalFlash about five years ago and have narrowed the focus many times over the years,” says Sara Walker-Santana, co-founder of the digital agency DigitalFlash. “In the beginning, you want to say ‘yes’ to everything, but over time you realize this can hurt your business more than help it.”

Saying yes to everything is often tempting, especially when you are trying to grow a business. But saying no and offering a defined set of services could be a better route to go.

Walker-Santana says that “finding the one or two things your company excels at and that you enjoy doing, most of the time, is the way to go. You and your clients will be happier.”

Need help refocusing your business? Consider hiring a business coach and explain that you are interested in also developing an exit strategy for both the short and long term. In the meantime, Hilling shared a few tips for any business person planning an exit strategy:

1. Reassess your business.

Have a six-month plan. Again, what is the end goal for your business? Do you want to sell it or go public? With your exit strategy in mind, reassess your business every six months.

2. Is your goal still relevant?

As social media and technology make data available in real time, the business landscape is quickly changing. Are all of the indicators driving toward your end goal? What has changed? Is your goal still relevant to the competitive landscape?

3. How is your brand appeal?

Test your customers, suppliers and partners for their perceptions of your brand and standing. Use the data you collect as input, but factor in your gut perceptions and perspective for the final decision.

“There’s nothing quick about being an overnight sensation. However long you think it will take, double it. Whatever cost you think, double it,” Hilling says. “Don’t be surprised that it will take you at least five years, eight to 10 years on the average, to get to the end game. Make sure you have staying power in both cash and positive motivation.

-ENTREPRENEUR

Like the article or it found it useful ? Share it!
Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.

 

4 Ways on How to Develop a Better Exit Strategy

In the beginning of your business and building your company must be truly focused on creating good product or service as well as generate revenue. But, when they had reached on a certain stage they want to acquired, they starting not getting their house in order. They only focus on one aspect and believe the rest can be taken care by itself.

Companies that only focus on one area and neglect the others are not good acquisition targets. Acquirers care about everything fro contracts to HR to sales pipeline. Now, here are the four ways to be a better acquisition target:

1. Avoid the “Super VP” trap

Many CEOs come from functional area of business as example, marketing, sales or engineering. The temptation of CEO role is to continue to focus on what they know and do best. For example, CEO from sales sometimes jump in to close a big deal but it may be useful at times but spending to much time in one area, in other words “Super VP” totally a quick way to failure.

Acquirers are looking to minimize risk. When one area of business is poorly run, it increases the risk for the acquirer.

2. Build mature system and processes.

In early organization’s founding, entrepreneurs had to make up for the lack of processes and system with talents. This is only temporary and somewhere north 25 to 50 employees, when the business is starting to take off, entrepreneurs need to put the “engineer’s hat” and invest in more sophisticated system and process that can help to run the company more efficiently.

Sometimes, CEO think they can get by without knowing their proper business system and processes or maybe they don’t want to spend money. Other times, the business is growing fast that the system and procedures can not keep up. So, failure to do so will inhibit the growth and the ability to attract potential acquirers.

3. Strive to be world – class in every department

Just simply buying new software is not enough. CEOs have to make a priority to make sure every department functions at the world-class level. They need to work closely with the executive team to determine the key process in each area of business and then take a systematic approach to improve each one.

Some companies will have a COO who may take primary responsibility for this work. If not, the CEO should regularly review metrics and focus on the processes that make the biggest difference to the business. Leaving this role entirely up to the members of the executive team means the CEO often won’t have the knowledge needed to make effective decisions when issues escalate and all of this starts with hiring the best people possible at every level in the organization.

4. Get the financial side of the house in order

Every department is important, but prospective acquirers who cannot make sense of company’s finances will make a low ball offer or quickly walk away. CEO advisor Bob Barker of 20/20 Outlook recommends that start-ups have two years of audited numbers to help “potential acquirers get a rapid and reliable financial picture of the business, a key step in accelerating their interest. This immediate positive step doesn’t require deep thought — just do it.”

CEOs and leadership teams often focus only an exit. They don’t strive to build the finest business they can, diminishing their chances of getting the best deal possible for themselves and their stakeholders.

 

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.

 

Retail needs more than just size to survive

IS retail an art or a science?

To most, it may be more art than science but to property consultancy Savills (Malaysia) managing director Allan Soo, it is both. Creating desire and aspiration is all about art while the science bit comes in the form of numbers, catchment area and household income.

Considering that technology is based on which retail – as with other economic sectors – thrives today, the intrepid traveller and shopper who has just returned from a spree in Italy says: “There is the hardware – which is the sq ft – and there is the software, which are the tenants, merchandise and demand from shoppers. You need to look at both,” says Soo.

Soo believes that instead of thumping our chests on the sq ft (or burgeoning retail space), it is important to paint a more wholesome picture of how retail can evolutionise amid the space and technology against the maturity backdrop of the Malaysian retail.

“It may be hard to see the good news, but there are good news,” Soo says.

The millennial generation, those between 20 years and 35 years old, will dominate. “Young people are good at swiping (cards) which will impact retail, and which they already have,” says Soo.

Online transactions are rising. So retail today is in a sort of flux; as in the banking industry because of fintech, and in the property sector, because of proptech, says Soo. An online property website may have 100,000 visitors in a day, but does the bricks and mortar property consultancy have that?

“Online is big today and it will become bigger,” says Soo.

A case in point. Chinese e-commerce group Alibaba Singles Day last year reached a record US$14.3bil in one day, Reuters reported.

That is more than 25 years of Suria KLCC annual sales of RM2.5bil for 2016. It took 20 years to get RM2.5bil but Alibaba did it in one day, says Soo.

These are the challenges facing the retail sector, not only in Malaysia, but globally.

“So what I am trying to say is, this goes beyond sq ft and how much space we have. In the midst of all these, there will be winners and losers.”

Why they are winners

If one were to take a ratings poll, there are five malls which constantly come up tops. They are Suria KLCC, KL Pavilion, Sunway Pyramid, 1Utama in Petaling Jaya and Mid Valley Megamall, which is half-way between Petaling Jaya and KL city.

Each of these malls have a net lettable area of more than 1 million sq ft, which gives rise to the term megamalls.

That being the case, there are three other malls that fit that bracket – Sunway Velocity and MyTown, both in Cheras and IOI City Mall in Putrajaya. By the end of this year, there will be Mall No. 9, with 2.4 million sq ft at Empire City in Damansara Perdana, Petaling Jaya.

Soo says IOI City Mall, although isolated according to some, attracts visitors as far as Seremban. It has a catchment area within a 20-minute drive compared with some malls in Petaling Jaya within a five-minute drive.

Put simply, the longer the drive time, the larger the catchment area because there are no competing malls close by.

But what makes the Top 5 always the Top 5?

Tenant mix is one factor. Tenant mix is different from trade mix, which refers to fashion, food, services. Within the fashion mix, there is Zara, which is priced higher than H&M, says Soo. A mall’s tenant and trade mix draws a particular group of audience.

Location, the mall’s catchment area, is another boom or bust factor and the Top 5 malls are located in what may be considered as prime area in the catchment that they serve, he says.

Soo says a mall with a net lettable area of 1 million sq ft will need about 300 tenants, while 2.4 million sq ft, about 700 tenants.

When there is more than 2 million sq ft, the mall owner may need a Louis Vuitton (LV) but does the catchment area within which the mall is located have household incomes that fit the LV bracket?

Two of the Top 5 does not have a LV. In the whole of Malaysia, there are only three LV stores, compared to Tokyo where a single destination can have three LVs. So size does not determine that LV, or some other top luxury brand, will take up tenancy in a mega mall, important though it may be.

LV and other top end luxury brands want access to consumers, and if the median household income of that catchment is not there, space becomes a secondary factor.

“So generally speaking, a mega mall of 1 million sq ft may not need a luxury line. Suburban malls are all about convenience, households, family and entertainment. City malls are about fashion, entertainment and food. And here is where the luxury market comes in.

“The luxury market is important because it provides a benchmark for the retail industry and although it (the luxury market) is softening, city malls need them because it has that aspirational pull,” Soo says.

The luxury market

Luxury brands expanded because of the rise of China, says Soo. After the 2008 global financial crisis, some of the world’s largest luxury goods producers over-expanded in China. LVMH or Louis Vuitton Moet Hennessy, the world’s largest luxury goods maker with over 50 brands, including LV, expanded at breakneck speed in China. Incidentally, that included Chinese property developers.

Top of the range branded goods and property were the darlings of the burgeoning middle class and both sectors – retail and property – fell over themselves to cash in on their propensity to spend. When the Chinese administration threw down the gauntlet on corruption, under the current leadership, and the “gifting” stopped, and the luxury market was impacted. The global economy is still seeing the effects of that today under China’s capital controls.

Some may ask, how does that affect Malaysia? With regard to the property sector, one can monitor the scene in certain parts of the country. As for retail, when MH370 was lost in 2014, it affected retail sales and tourism.

Tourism and retail, particularly at the higher end of the luxury market, are best buddies. In Malaysia, as in other parts of the world, the retail sector is tourism-dependent.

“On many counts, Malaysia is priced lower than most of our neighbours but yet there is this softness in the retail scene. So that is how every shopping centre owner and operator looks at the market. The retail industry goes beyond sq ft and supply of space,” says Soo. New malls need to differentiate themselves.

“If I were to generalise, it is difficult to get a 10% differentiation for a new mall. You can only have differentiating factor for a short time. By next year, they would have lost it. The challenge is today.

Twenty to 30 years ago, that differentiating factor could last longer because things were not moving so fast as today. Another factor is the lack of depth and breath of our retail sector. Unlike Bangkok and some Chinese cities which have a lot of homegrown brands, Kuala Lumpur lacks that.

“Our breath and depth of retail is not established or explored. In Bangkok, in just shoes alone they have so many brands,” says Soo.

How many of the 300 shops in the 1 million sq ft mall will be local or homegrown brands? Hardly any. So how do you fill that 300 shops? Which explains the high degree of cannibalism when malls are located too close to each other, and so the smaller malls of about 700,000 sq ft suffer because whatever they have, their bigger neighbouring malls also have.

Which means retailers need to change their merchandise, their design and/or their target market, says Soo. Do they want to be classic or new and young? Today, the Chinese prefer the smaller brands. So there is a shift.

The intrepid traveller puts it thus: “Retail is about fashion, and fashion is about changes and lifestyle. We have brands which just arrived in Kuala Lumpur which are doing better than some of our older brands because the latter did not change.

The Ralph Lauren flagship store in Hong Kong closed late last year. It was not because the brand lacks quality.

It did not change with the current. Women used to swoon over floras and prints 20 years ago. The baby boomers who like prints are gone. Now the 25 and 30 year-olds are swooning about something else.

– THE STAR

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.

Create a Road Map to Business Success

For those who are in business industry, what do you feel when you starting a new business venture from the bottom? It may feels like jumping out of an airplane and trying to assemble the parachute on the way down. Business is often happens hugely through trial and error and that’s when a road map is really in need so that you won’t stuck in the middle of your business journey.

If your path is like most people’s, this how it will proceed:

  • You’ll start with personal road map, and when you find your passion, you’ll develop a business road map.
  • Your journey will start at point A, but point B will not be linear; there’s often no straight line between the two.
  • You’ll plan seeds to achieve your personal goals and see which one grows and chart a course to follow the growth.
  • When the growth become a passion and a business, then you plant more seeds within your business to see which ones work. This is the beginning of your business road map.

Don’t be scared to aim high because not goals can be achieve in a short time. Every departments in business such as marketing, production, sales and others need to be responsible. Budgets will need to be created and adjusted while products and serviced will need to be developed. Sales need to made and orders fulfilled. All these incremental activities are necessary to reach your goal.

However, you know that not all incremental steps will go as planned but it will not be a major failure. Instead, the next thing is where you can refocus your attention within the scheme of larger goal of building. Every new incremental goal will become your next mountain to climb as you travel the road to your final goal.

So start by identify your passions and goals and you’ll already have the makings of definitive plan. And don’t forget to give it 100 percent. Once you have set an intention and a goal, don’t just dream it, work it !

Keeping your road map flexible

Startups have to be nimble and open to change, especially in the first few years. There’s a fine balance between retaining products that fit your market and stubbornly trying to hold on to ideas, products or marketing strategies that are not attracting a significant target market.

Sometimes you can pound on market, but the product will still not work. Consider these stories of well-known pivots i which companies changed in order to grow better:

  • Flickr – a role playing gaming site for several years before emerge as the new popular photo sharing social media site.
  • Apple – sell computer kits to kids before making its own computer and becoming a $700 billion business.
  • Lego – start by making wooden ducks. A few years after a fire burned down its factory, the management switch to plastic toys. The interlocking bricks that spawned a multi-billion dollar business.
  • Nokia – start as a paper mill and expanded into rubber goods before moving to electronics and eventually mobile phones.
  • Avon – begin with a door to door salesperson who gave away free samples of perfume. The perfume get better reviews than the books so he did a pivot and dumped the book to start the California Perfume Company, a precursor of Avon.

Now, here is the list of step to step of how to get where you’re going in business:

  1. Plant seeds and constantly observe your garden, looking for growth opportunities and pockets of passion.
  2. Network.
  3. Set an intention and write it down.
  4. Network.
  5. Learn the business thoroughly through classes, internships, seminars, books, networking, etc.
  6. Network.
  7. Work for someone else first, and keep learning.
  8. Network.
  9. Conduct due diligence on product-market fit prior to writing a business plan.
  10. Network.
  11. Find talent, steal talent and keep that talent happy.
  12. Network.
  13. Talk to your customers consistently to capture feedback.
  14. Network.

By the way, don’t forget to be flexible. No straight line from point A to point B and success is never linear.

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.

 

What is exit strategy ?

For those who are entrepreneur, bussiness man or having your own company, do you guys actually ever heard or know what is Exit Strategy ? If you guys don’t especially for the ‘rookie’ entrepreneur, you need to read this article.

DEFINITION

  • Exit strategy can be defined as the planned exit of the owner from their business.

For your business, you must need a plan on how you could get into the business, but did you know that you also need a plan to get out from it? If you thought on selling or maybe dispose a business, you will need a good strategy and careful implementation for this.  As for the facts, starting a business is way more complicated than you thought. As example, when there’s only one way to start company, at least there are 3 essential methods for the entrepreneurs if they want to leave their business that they founded which are selling, merging and closing.

When the entrepreneur have come up to the decision to sell their business that they work up so hard, you must know that was not an easy decision for them. But, it is a good choice if it under some circumstances. Selling may be preferable to owning if:

  • You are ready to retire and don’t have any heir to continue the company.
  • Partners with the business is decide to dissolve the partnership.
  • One of the owners dies or become disabled.
  • You or another owner got divorced and need cash for a settlement.
  • You want to do something more challenging, more fun and less stressful.
  • You don’t have enough working capital to keep continue.
  • The new company need new and fresh skills, new approach or resources that you can’t provide.

If you think that all the factors that indicate selling is a good choice, you should set the time for the sale so that you can get high prices. When sales are increasing and the profits are strong, you probably get the most for your company and also if you had unblemished history on your company’s performance, by all means you need to sell your company before any trouble strikes. Other factors that could affect the timing of a sale are:

  • Bank financing
  • Interest rate trends
  • Changes in tax law
  • General economic climate

To sell the business, usually the owners will have a contract with a professional broker to help them in this matter but you also can sell by your own. Plus, because of the awareness of relevant legal, tax and accounting considerations of using a broker is to help you protect your anonymity and confidentiality. A broker can become your ‘middle man’ by screening all the prospects and keep secretly the identity of the business owner from all except the qualified buyers.

Mostly, business buyer is someone like you who want to become a small business owners. But you also can transfer the ownership of a business to other business in a acquisition or merger. Business actually have more borrowing power than individuals and they willing to pay more than individuals. Businesses also tend to increase the chances your business will survive and to be more savvy than individuals. However, businesses can not move fast as individuals and it require you a year or maybe more to get your company ready to be merged or acquired. In that time, you will need to:

  • Clear up the balance sheet
  • Drop poorly performing products
  • Terminate insiders deals, such as property the company is renting from you or family members.
  • Trim any excessive fringe benefits.
  • Make sure you’re paid up on all taxes.
  • Have at least 2 year’s worth of audited financial statements.

Company that sees your business as a well fit with their own firm is the best candidate for a merger. If you have unique product or distribution channel, hey might as well willing to with a premium price. A poor merger prospect however, the only one who wants to put you out of business or only motivated by price and not interested in preserving the business.

The best, simple things that you can do are simply sell you inventory and fixtures, pay your creditors and employees, close the doors and walk away. If your business is failing, not valuable enough for anyone to acquire it or maybe the type of business that is not valuable without you personally operating it, the best choice is closing. If you do not have enough money although you has disposed your assets to pay for the workers, you just give what you have now and promise them that you will give the rest later. You can usually avoid legal wrangles if debts are in small amount.

Variations on this theme include making formal or informal arrangements to pay off your creditors, filing for voluntary liquidation, and declaring bankruptcy. Only bankruptcy is intended to give you a second chance while the others are almost certain to result in the end of your business.

 

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.

 

Business valuation becoming vital in financial reporting

 

Mr Tham said the new programme for chartered valuers and appraisers will boost quality and consistency.

Business valuation is becoming a more vital part of corporate accounting and driving the need to enhance the skills and standards around this speciality.

An ongoing focus on this front is now bearing fruit through initiatives such as a new programme being launched this week to nurture chartered valuers and appraisers, KPMG managing partner Tham Sai Choy told The Straits Times.

Business valuation is an aspect of accounting and auditing that establishes the value of an asset. This is becoming an increasingly significant part of financial reporting, said Mr Tham, who is also a board member of the Singapore Accountancy Commission.

“A recent survey by us found that some 80 per cent of the balance sheets now comprise estimates of fair value. The more objective, cost-based accounting of my generation is giving way to the more complex world of financial instruments, multiple currencies and cross-border businesses,” he noted.

“It is also a relatively new trend where we see more companies seeking growth through mergers and acquisitions. And this finds its way into financial reporting, where we have to break down the asset into multiple lines of different valuation to account for things ranging from buildings to brand and intellectual property.”

A third area that requires better valuation services is litigation, particularly in bankruptcy cases and shareholder disputes.

The financial industry has so far relied on services scattered across providers offering different types of valuations.

“So it’s quite unsustainable. It doesn’t help that some of the rules are still ambiguous, and there is often a lack of understanding on how (valuations) should be used. The industry and international standard setters are still working on enhancing these rules,” Mr Tham added.

The complexity of business valuation has come to the fore in recent months as public scrutiny centres on the fair value model of companies such as Noble Group.

In response to the challenge, the industry has long hoped to create a common set of competencies and standards for valuation. The launch of the Chartered Valuer and Appraiser Programme is part of the answer to that call, Mr Tham said.

The programme, by the Institute of Valuers and Appraisers of Singapore, will offer structured training and national certification to those in the valuation services, in a bid to improve consistency and quality.

Nanyang Technological University Business School will conduct the training courses, which will begin in August. KPMG is one the programme’s industry partners.

The programme is part of the industry’s multi-year push to build a leading accountancy hub for Asia-Pacific by 2020. As early as 2010, the Committee to Develop the Accountancy Sector (CDAS) – set up by the Ministry of Finance – noted in its report that Singapore should develop a centre of excellence in business valuation, internal audit, risk management and tax.

Another key industry initiative arising from the CDAS recommendations was the launch of the Singapore Qualification Programme in 2013, which also provides training and certification, allowing participants to be recognized as chartered accountants.

Mr Tham stressed that these industry programmes are not launched to raise the job barrier for existing professionals.

-STRAITS TIMES

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.