Connect with us

How to Guides

6 Tips For Transitioning From Idea To Operational Business

Forget Googling startup business stories. Instead, put your trust in the tried-and-true methods other entrepreneurs have used successfully.

Thomas Smale

Published

on

business-growth

It takes only a few Google searches to become overwhelmed by the abundance of information available about entrepreneurial start-ups: Many, many stories exist about how this or that start-up transitioned into a successful, established business. But, in many cases, you’ll be left trying to fill in the blanks or still searching for case studies relevant to your industry or business model.

In fact, there’s only one reliable way to take your business to the next level: And that involves putting your trust in tried-and-true methods that other entrepreneurs have used to make the leap.

Focus on productivity – not activity

It’s all too easy to get caught up in a flurry of urgent tasks that demand your attention. Unfortunately, that can take your focus away from what matters most. So, avoid the busyness trap and ask yourself what you need to focus on today, or over the next two weeks, the next month, 90 days – even the next year or five years. Plan ahead so you know exactly what your next steps are.

Related: Admin Hacks For Entrepreneurs

Leadership expert and coach Leah Wultschik has noted in a blog post that when leaders engage in all manner of busyness – emails, meeting requests and so on – employees feel pressured to follow suit. At that point, the never-ending focus to get things done can result in decreased creativity. You’ll be constantly in a reactionary state, leaving you unable to make strategic decisions.

Don’t let yourself get to that point.

Hire the best talent possible

You are whom you hang around with. Wouldn’t you rather be around world-class workers who bring valuable ideas to the table than to try to squeeze what you can out of second-rate employees?

Aislinn Malszecki, who oversees content strategy and community at MaRS, suggests the following steps to attract the best talent possible:

  • Avoid reactionary hiring: Founders often find themselves desperately in need of help and may hire without looking for fit and the right skill set.
  • Create a buzz for your company: Utilize your reputation and personal network to attract the right kind of people to your business.
  • Tap into your network: In addition to posting jobs on your website and LinkedIn, leverage your network as well as the networks of your employees to find like-minded candidates.

Building your team is not a matter to be taken lightly. Surrounding yourself with the right people can mean the difference between breaking through and remaining stagnant as a business. Work with people who inspire you.

Partner with an agency

business-agency-partnership

The opportunity cost of doing everything yourself can add up fast. So, work with an agency. The up-front cost of outsourced work will ultimately be less expensive than trying to do it all yourself.

Patrick Woods, director of customer success at Keen IO, notes certain challenges of working with an agency. To overcome these hurdles, he suggests:

  • Build a relationship with the agency: Set aside time to get to know the people you’ll be working with. Determine fit as well as expectations.
  • Communicate: Since startups tend to move fast, communicate regularly and clearly with the agency to ensure you’re on the same page.
  • Understand what the agency can do for you: Clarify its staffers’ core strengths and competencies. Determine what tasks you’d like them to take over, and which you’re looking to handle in-house.

Related: Are You An Ideas Explorer Or Are You A Rooster?

Beware of negativity

Negativity can poison the waters of your entire company. Before long, you may find your whole team expressing doubt or disbelief. Conversely, being confident will instill a sense of confidence in your employees. They’ll also follow you more willingly.

Best-selling author and keynote speaker Jon Gordon has pointed out that negativity can affect the morale, performance, and productivity of your team. Negativity can also lead to decreased energy and increased stress.

When it comes to creating a positive work environment, the responsibility lies with the leader. You need to set the tone for your team, to draw the best out of them.

Avoid burnout

When you’re first getting started, and you’re excited about your business, you’re willing to do whatever it takes to get it up and running. Unfortunately, those 16-hour days will take their toll on you, and if you keep up that pace, you will burn out. Learn to rely on your team while growing your business.

James Schramko of SuperFastBusiness is an advocate for getting more rest and sleep. This flies in the face of what many aggressive entrepreneurs are saying today, but Schramko points out that proper rest can help you boost your performance. The costs of losing sleep can be significant, and include: Depression, a weaker immune system, memory issues, obesity and more.

The costs of burnout can be especially high if you render yourself incapable of working for a prolonged period of time. Consider the costs before letting yourself get to that point.

Prioritise

You can’t do it all. No one has more than 24 hours in his or her day, and we’re all busy. Beware of saying “yes” to everything, as you will eventually find it impossible to follow through on it all. If something doesn’t make you excited, don’t do it.

Derek Sivers,  founder of CD Baby, has said he lives by the “Hell, yeah!” or “no” philosophy. He explains that saying no to most things leaves room in your life for the few things that get you truly excited. If you find yourself wavering between a “yes” and a “no,” he suggests choosing “no.” Only say “yes” to opportunities that you can’t pass up.

Final thoughts

Transitioning from startup to established business can take time. So, don’t rush the process unnecessarily. When all the right pieces are in place, you’ll be able to shift smoothly from one stage to another. If you try to force the issue, you may end up with more problems than you bargained for.

If you have any doubts, go back to the basics. Take some time to determine what your priorities are. Start pruning any tasks or activities that don’t contribute to your ultimate success. If you have too much on your plate, ask for help or delegate. And above all, avoid taking on too much.

This article was originally posted here on Entrepreneur.com.

Thomas Smale co-founded FE International in 2010, growing the business with zero funds from scratch to a seven-figure-a-year business. Specializing in advising and brokering the sale of established websites and online businesses, FE International has completed over 210 transactions. Smale has been interviewed on podcasts, blogs and also spoken at a number of industry events on online businesses, exit strategy and selling businesses.

Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

How to Guides

Enterprise Supplier Development (ESD) Provides Opportunity For Entrepreneurs

LFP Training offers ESD support services such as the implementation of sustainable supplier development programmes, profiling and analysis of your supplier database, enabling procurement opportunities for EME’s through collaboration and partnerships and promoting the upskilling of EMEs and facilities the quality of services provided.

Jacolien Botha

Published

on

enterprise-development

LFP Training’s team spends a lot of time educating businesses on the benefits of BEE. As an entrepreneurial venture, the company understands that you have worked hard to build your brand and as such, BEE should strengthen your position the market.

AJ Jordaan, LFP Training’s National Sales Manager says that while Skills Development remains the most cost-effective, productive and mutually beneficial way to gain points whilst improving the performance of your staff, ESD is too a critical component of the scorecard.

“By partnering with a BEE compliant business, companies can claim additional points towards Enterprise and Supplier Development (ESD),” says AJ.

Both ESD and Skills Development initiatives cover large portions of the scorecard in total so it’s vital to score well overall. “Furthermore, ESD is one of the priority elements of BEE and failing to comply with the subminimum requirements will result in your company being discounted a level”.

In a country where entrepreneurship is recognised as a catalyst for growth, ESD helps small businesses to thrive by gaining access to opportunities through its attractive BEE status. “This in turn helps to ensure the sustainability and success of such businesses in South Africa”.

ESD is a combination of preferential procurement, supplier diversity and development and enterprise development programs used to service a business’s needs.

Trading has never been more attractive and ESD contributions can take on many forms. “While some people are still very cynical about BEE, ESD is not based on the value of a contract given to a black business but rather the contributions towards technical help, the transfer of knowledge and skills, operating cash flow, loans and/or investments.”

AJ does warn that while this is a great benefit of being compliant, in an instance where two companies supply the exact same service, the company with the higher BEE recognition will most likely secure the business. “Here, a customer will partner with the company with a higher rating as they earn more points towards preferential procurement under ESD.”

“Today we are seeing some companies penalising a supplier when dropping a level as it influences their scores on ESD so its once again vital to maintain your current BEE level or to improve” AJ continues.

“There are a host of benefits to making sure that businesses align their efforts to compliant businesses, these include; an improved BEE rating, gaining a competitive advantage and reducing costs, supporting a compliant business, a strong and positive association for your business with a compliant business” says AJ.

LFP Training offers ESD support services such as the implementation of sustainable supplier development programmes, profiling and analysis of your supplier database, enabling procurement opportunities for EME’s through collaboration and partnerships and promoting the upskilling of EMEs and facilities the quality of services provided.

Read next: Enterprise Development Programmes For Black Entrepreneurs

Continue Reading

How to Guides

Three Things You Need To Do When Starting A Business

Like a good game of chess, starting a business will challenge you to think about your long-term strategy and also make sure you’re moving the pieces one step at a time in the right direction.

Stacey Ferreira

Published

on

starting-a-business

Starting a business is a dream job for many people who have a great idea, are willing to tolerate some risk and are looking to be their own boss. While start-ups are often glorified in the news – as some reach extremely high valuations – starting a company is a big undertaking that typically requires grit, perseverance and a little bit of luck along the way.

Over the past few years, I’ve started two companies, sold one and raised over $4 million in venture capital from some of Silicon Valley’s top firms. These companies haven’t been without their challenges, so here are the top three things I wish I knew when I was starting out:

1. Talk To Prospective Customers Before Starting Your Business

The biggest time killer in a start-up is building a product you think a customer needs, only to find out, after you launch your product, that the customer actually needs something else. Before starting my second company, Forge, I recorded over 50 conversations with prospective buyers to learn about their top three problems, how they define success and how much they’d be willing to pay to have product or solution that successfully helps them navigate their problem. These conversations helped me narrow in on building a product I knew customers needed and gave me my first few customers.

Related: Crucial Skills You Need To Be An Entrepreneur

2. Reference Check Investors Like You Reference Check Employees

Sometimes raising money is necessary to get a capital-intensive business off the ground or as a way to spur growth. But raising capital, as with anything, comes with a cost. The cost is giving up future value of your business in the form of equity. Who you give this equity and other rights to – such as a board seat, which is often paired with financing rounds – can have a massive impact on the long-term business outcome.

It might seem daunting to ask a lot of questions of someone who is willing to write a cheque for a few hundred thousand or million dollars (or rands), but it’s extremely necessary.

  • Have they invested before?
  • Who did they invest in?
  • What value did they provide to those entrepreneurs?
  • Do they understand that most start-ups fail and that they might not get their money back?
  • Can they introduce you to a few people they’ve invested in previously – business founders who went through both good and tough times?

Since most successful businesses are around for more than 10 years, it’s important to know who you’re going to be working with.

3. Do Whatever It Takes To Make Sure Your First Three Projects Are Successful

If you decide to raise pre-seed or seed capital for your business, take the money and spend 100% of your time working with your first three clients. I often see entrepreneurs who accept capital and then worry about how they’re going to rapidly grow their company.

In reality, in the early days nothing matters more than making your first three clients extremely happy, so you can use their success stories as case studies. Their testimonials will help you sell to client numbers 4-10, which will in turn help you sell to clients 11-100. Focus on your first three customers and tweaking your product or solution experience. Your company will grow organically from there.

Related: 21 Steps To Start-Up

Bonus: Passion Doesn’t Help You Make Payroll

The first time I had to let go of someone from my team, very early on in my career, my dad said to me, “Passion Doesn’t Help You Make Payroll.” You can have an employee who is extremely passionate about the work you’re doing, but if they can’t contribute to making it a reality, it’s better to let them go and get back to building the business.

Whether it’s conducting customer research, pitching to investors or learning from your first clients, starting a business gives you unmatched flexibility and the ability to truly learn every day.

Continue Reading

How to Guides

Tips On How to Build Your First Ecommerce Business

Starting an ecommerce business is really important in this day and age because everything and everyone is online. With the sheer number of people populating the internet, only an online business can reach out to them.

Megan Harris

Published

on

ecommerce-business

However, having an online business isn’t just about trying to sell things on the internet. There is necessary groundwork needed to avoid any pitfalls.

Making an online business is extremely lucrative because it can tap markets that can hardly be reached by traditional mediums of marketing. In a study by CMO, it was revealed that 72% of millennial shoppers shop online before they go to a mall or store and these people, who are in the age range of 25-34, are heavy smartphone users when it comes to shopping.

With this kind of information, you can really see how effective having an online store is. So, the question here now is how do you start an online business? Here are a few tips on how to go about.

Decide through market research

Like all businesses, you have to fill in a need or a want. Having an online business is no different. You must first ask yourself what is something that people need and want. Next, you have to ask yourself if you can provide that need or want. After that, you must research if your target market can be found on the internet or not. Once you have all of that down, then you can start.

Related: Watch List: 15 SA eCommerce Entrepreneurs Who Have Built Successful Online Businesses

Develop your online presence

The website will always be the frontline of any online business because this is where all customers will end up. Think of your website as like your store but on the internet. If your store is good and accessible, then your customers will like it there.

In order to build a good website, you’ll need two essential things: a website design and a server. For the website design, you may just design one and use a back-office program like WordPress to manage it. If you want to have a nice design, you may hire a professional website designer for it. Next, you have to think about the server. You’ll want a server that performs well because your server will determine how fast your website moves.

If your service provider is not very efficient, then your website won’t load quickly and smoothly. Before deciding which web host to use, be sure to read reviews about it to get more feedback. Once you have these two things, you just need to learn the process of creating your website then you’re good to go.

Develop a content strategy

So after you’ve built yourself a nice looking website, the next step is to fill it up with information. You have to write well and make sure that your text will cater to the market segment that you are targeting. 

Get found through SEO

SEO techniques are directly related to content as SEO relies heavily on modifying text. SEO stands for Search Engine Optimisation and they are techniques used to give your website a good slot in Google or Yahoo. SEO would primarily make use of keywords that people would often search in search engines. If you know how to make use of these keywords, your site will earn top billing on Google if a person searches for something relevant to your site.

Related: 3 Types Of Ecommerce Business Models

Utilise email marketing to find leads

Using email marketing services along with highly targeted database, is a power tool for pushing your website since email marketing is personalised. People, in general, like to feel special so if you send them an email promoting your online business, you may get them to becoming buyers. The best way to go about with email marketing is to find leads and shoot your emails out. 

Make use of paid channels

PPC ads, or Pay Per Click ads, are quick to drive traffic to a website because advertisers pay a fee each time the ad is clicked. In a sense, the advertiser buys views so that traffic will go into the site faster. This is a quick way to get views and eventually single out the target market.

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending