Ask a Mentor – What habits should a new business owner form?
May 31, 2010
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The latest question from the Ask a Mentor series comes from Ana Lucia Novak. |
Question
“What habits should a new business owner form, such as how to manage operations, finances, marketing, networking, and competitors?”
Answer
by Simon Winfield, Planet Wholesome
The answer to this question could be hundreds of pages long, and entail reading a whole library of business books!
Tom Farmer of Kwikfit, a chain of exhaust and tyre fitters started in Edinburgh, Scotland, recounted the real crux of financial control (and operations) as knowing exactly how many car exhausts he needed to sell each day to reach breakeven.
In a sentence this might address ‘operations, finances and marketing’ in your question above.
In order to breakeven, in addition to analysing your operational costs, you will also need to understand your customers, which in turn will lead you to how to market your product.
A stab at a list of habits a new business owner should form would therefore be:
- Understand the precise cost of making or producing your product or service.
- Understand the flow of cash within your business, especially the length of time that capital is tied up between buying raw materials and being paid for selling the final product. This will also lead you to a better understanding of the financial needs of your growing business.
- Research your market by targeting a conversation with a customer every day. People like being asked their opinion.
- Networking is important, but improve on that by targeting exactly the individual you want to speak with, and plan your route to that individual. Don’t be afraid to pick up the phone to them directly, and ask them to share their expertise with you.
- Knowing what competitors are doing well, or things they are getting wrong, comes from having conversations with your customers.
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Simon Winfield - Planet WholesomePlanet Wholesome are a consultancy focussing on corporate strategy, with the aim of identifying both strategic opportunities as well as possible risks to the business resulting from climate change. Simon Winfield has over 20 years experience working with investors and corporates in evaluating corporate strategy which can help mentornet members in identifying their key competitive advantage.
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To submit a question to Ask a Mentor, please email us your question.
Unleash The Plan In Your Head
May 31, 2010
By Julie Wise, The SilverOwl
Often my clients tell me they simply cannot get started on their business plan. Their minds go blank at the site of a new piece of paper. When you need to write or update your business plan a good technique to try is brainstorming. When you brainstorm, you record as many of your thoughts as possible without taking time to evaluate or judge each individual idea. Often the ideas are extremely creative, unusual, or even bizarre. And yes often a realistic solution or idea will emerge.
Everyone talks about brainstorming and how simple it is. In my experience though, very few people understand the environment in which to do it or the techniques of how to brainstorm.
So here’s the method and technique I’ve used over the years and I coach my clients in. You do need to follow some simple rules to make sure you get the best results.
Brainstorming is not difficult to do – it can be done in groups or by yourself. The approach I’m sharing here is brainstorming by yourself.
The Environment, Tools and the Clock
- Find a location conducive to you and your brain. It should a place free of distractions where you can focus and think. Eliminate EVERY possible interruption – YES that means mobile phones. If you need music and that’s on your mobile phone switch the phone side OFF. If you can’t then borrow a music player from somewhere else.
- Allow for a quiet environment. Sometimes music will help put you in a certain mood. Change the lighting in the room if that is helpful to you. Do whatever you can with your environment to allow you to feel relaxed and open to ideas.
- Get your tools together. You will need
- 1 Brain
- 13 3 x 5 Sticky Notes
- 1 Pencil
- 1 Clock
- Record your thoughts and ideas in any way that make sense to you. You may choose to make a list of ideas, or to draw pictures or symbols with your coloured pens. Connect ideas with coloured lines. Draw boxes around major themes. Anything goes as long as it makes sense to you.
- Don’t worry about spelling, grammar, or style.
- You must follow the exact time limits.
- Speed is your friend. Work quickly to avoid the impulse to censor your ideas.
Okay let’s go!
The Storm
Time Limit: 45 minutes. Set your clock
On the first 10 post-it notes, write the following items!
- Sticky #1: Why are you doing this?
- Sticky #2: What are the top 3 market factors affecting your business? (economic conditions, new technology, location etc.)
- Sticky #3. Who are your top 3 competitors?
- Sticky #4: How are you going to beat them?
- Sticky #5: Why would anybody buy this?
- Sticky #6: Why would they buy it from you?
- Sticky #7: How are you going to sell it?
- Sticky #8: How are you going to get the word out?
- Sticky #9: What will success look like in a year?
- Sticky #10: What are your 3 goals for the next six months? (ONLY THREE)
When the clock reaches 45mins STOP! Don’t write a single ink drop more.
Take a 5 min break. Stand up. Walk around. Get a drink.
Try not to think about what just happened because you want a fresh perspective. Don’t think about budgets and allocations – that comes later. If you set the budget first, or analyse anything you will have already forced yourself into boxes and restrained your focus and thinking.
After your break look at each sticky note. Do they make sense individually AND collectively?
The Plan
Time Limit: 10 minutes. Set your clock.
Supplies Needed:
- 1 Same Brain
- 3 3 x 5 sticky notes
- 1 Pencil
- 1 Clock
Now on your last 3 post-it notes:-
- Sticky #11: List 3 (only 3) actions you will complete in 30 days towards your goals
- Sticky #12: List 3 actions you will complete in 60 days towards your goals
- Sticky #13. List 3 actions you will complete in 90 days towards your goals
If you have business partners or employees put one name on each of the actions.
Time is UP ! Pencils Down!
Do the action steps make sense?
Do the 13 post-it notes excite you? Can you do it? Will you do it?
Yes – great you’re done. Go Out and Conquer!
No ? – Walk away for at least two hours. Then get 13 new post-it notes and repeat the whole process.
If you are still stuck, you might try brainstorming with a trusted advisor or a business-coach. They are not emotionally tied to your business and therefore will have a different perspective to you and they will provide ideas that you cannot immediately see but you can build on.
Once you discover how easy and beneficial brainstorming is you will be on your way to new and creative ideas! You won’t be able to hold yourself back!
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Julie Wise - The SilverOwl
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| Email: | julie@thesilverowl.com.au |
| Website: | www.thesilverowl.com.au |
| Twitter: | www.twitter.com/julie_wise |
| LinkedIn: | au.linkedin.com/in/juliewise |
| Member Profile: | See Julie’s Member Profile |
I’m listening… Why Tara Hunt’s Listening Lessons are Ringing in My Ears
May 28, 2010
This week I had the opportunity to be part of a panel on social media at the CEBIT conference in Sydney. It’s a privilege and honour to be invited to address a smart group of businesspeople and one that I took seriously. I knew that as one of four panelists, I had just moments to get across the key message that I wanted to convey about where businesses should start with their social media strategy.
CEBIT Panel Discussion on Social Media Strategy
In preparing, Tara Hunt’s words about ‘turning the bullhorn around’ were swishing around in my head. In her book The Whuffie Factor, which I’ve mentioned before in this blog, Tara talks about changing position from broadcasting out (as so many of us marketers have been trained to do) to really listening to our clients, asking them questions to really understand how we can better help them and fulfill their needs.
She talks about REALLY paying attention to them, rather than trying to get them to listen to us, our news of new products our services, our good ideas about why they should buy from us.
As I reviewed the Bullhorn chapter in her book (Chapter 3) prior to my presentation, I changed my focus from ‘What should I say at the CEBIT conference?’ (sure I had notes and bullets that, given the opportunity, I would share) and focused less on my agenda and more on what others were saying, what the audience was asking and what people really wanted to know.
I wish I’d had the day to spend with attendees to explore how they can use social media. It’s a subject I can add lots of value to people based on my experience. The value I received from presenting at CEBIT (other than being on a panel with some interesting folks who are doing great things with social media) was the reminder to listen more.
With that, I invite you to watch and listen to this interview I did recently with Tara Hunt.
In it she explains:
- Why she doesn’t believe in personal branding
- Five ways to raise your social capital – the wealth of your company within the online community
- What actions add to and take away from our social capital
- Why women in business need to become more visible in social networks
Tara is an expert in using the tools and the opportunities of the participatory web to succeed.
For more information on Tara Hunt:
| Twitter: missrogue |
| Website: www.horsepigcow.com |
| Join Tara’s Women’s Femanomics Google Group. Apply here. |
| Buy a copy of Tara’s book from Amazon |
The power of influence. Cialdini’s principles are more pertinent than ever before.
May 28, 2010
Having the best product or service, the newsiest, shiniest and most innovative business does not, unfortunately, always give us the edge when it comes to getting clients to take up our offer, comply with our requests and do business with us.
In any business situation, however, there are moments where the opportunity to move someone towards saying yes to your request are heightened.
Recognising these moments and the correct action to take at those moments is the science of persuasion and the understanding of what influences us and how we are influenced.
In 1995 (yep, that long ago) I read a book called Influence, by Dr Robert Cialdini. Since them I have reread and referenced it many times. And, today, when economic circumstances are such that there is some lack of confidence in what the future holds, when our customers could be frozen in inaction purely out of fear of an unpredictable economic climate, the lessons from Dr Cialdini’s book are more pertinent than ever before.
Robert Cialdini | Author, Influence
That’s why I am extremely excited that on 15 June Dr Cialdini is my guest on BOOKED for Lunch – our webinar series with the world’s best business book authors and thinkers.
I’m thrilled that Dr Cialdini is going to be able to share with you the practical and powerful opportunities that the six universal influence principles (which I’ve summarised below) present to you and your business.
They are truly gold! And, if implemented correctly, they are proven to move people closer to a Yes response to our proposals, our invitations, our businesses.
Robert Cialdini’s Six Principles of Influence
- Reciprocation – The obligation to give back what others give us
- Scarcity – The idea that something is rare or diminishing in its availability is more attractive
- Authority – the idea that we’re much more willing to follow the lead of someone that is a legitimately constituted authority
- Commitment – the idea that once we’ve taken a position on an issue we are more likely to say yes to a decision that is consistent with that commitment
- Liking – opal are much more willing to say yes to a request from someone they know and like
- Social Proof – we’re much more willing to say yes to a request when we have information when someone around us
On 15 June we’ll take a look at how to put these principles into practice.
Master, or even just better comprehend, these and I promise your effectiveness as a communicator and leader will be boosted. They’ve been hugely beneficial to me over the years in countless situations.
About Dr Cialdini
Dr. Robert Cialdini has spent his entire career researching the science of influence earning him an international reputation as an expert in the fields of persuasion, compliance, and negotiation.
His books, including Influence: Science & Practice, and Yes – 50 Scientifically Proven Ways to Be Persuasive, are the results of years of study into the reasons why people comply with requests in business settings.
Dr. Cialdini is President of INFLUENCE AT WORK, an international consulting, strategic planning and training organisation based on the Six Principles of Influence.
Below is a video with Dr Cialdini.
BOOKED for Lunch – with Robert Cialdini
15 June 2010
12.00pm- 1.00pm AEST
Webinar – Presented by the Australian Businesswomen’s Network and GoToWebinar
Register today for BOOKED for Lunch
7 Ways to Fast and Thorough Resume Screening
May 26, 2010
By Kristy-Lee Johnston, Footprint Recruitment
After making the decision to tackle your Recruiting project on your own you are ready to cull your responses.
Assuming your advertising has been written well, placed in the right media and targeted the right applicant pool, you should (theoretically) have a solid group of applicants from the available talent the market has to offer. Most managers expect that there will be a certain number of ‘hopefuls’ who don’t meet the criteria. Whilst sorting through these is factored into your time allocation, what many of the employers we work with are most surprised about is the sheer volume of applications they receive, especially for more generalist roles such as Receptionists, PAs and Admin Support Personnel.
Our clients regularly tell us that the volume of applications is the most daunting and time consuming part of recruiting themselves, and the vast majority admit to getting it wrong because they didn’t have time to do it properly, or didn’t know how to do it at all.
To help, I have put together the following 7 tips to help ensure your resume screening and culling is both time efficient, and appropriately thorough, to ensure you interview only a select few, top-quality applicants to continue through the screening and assessing process.
1. Have your Position Description written before you start and KNOW IT!
If you don’t know what you are looking for when you start screening your resumes, you will undoubtedly waste time trying to figure out whether each applicant is suitable or not. To ensure you don’t waste your precious time – plan and prepare. You should have your Position Description written before you start advertising, and your ad should target applicants who meet your requirements as identified in your positions description. The key for you in the screening process is to know these essential and desirable criteria inside out before you look at one single resume
2. Know your essential vs desirable criteria
If you know in your mind which key criteria (top 3-5) are essential that successful applicants must have, it’s easy to look for these things immediately. Before you look at anything else in the resume, check these, if none of them are met move that applicant directly to the ‘no’ pile.
3. Cull at a time that suits you, when you won’t be disturbed
Being constantly disturbed, interrupted or distracted while you are trying to screen resumes is the sure fire way of spending more time than you need to on the process. Screen resumes at a time that suits you; for me this is as soon as I walk into the office, before anyone else is in, before I check any other emails and before the phones get busy. It is sometimes easier to break it into small chunks, 10 minutes at each end of the day may be enough depending on the volume of applications you have.
4. Don’t read every line on a resume
Resumes are full of useful but sometimes irrelevant information. Before interviewing a candidate, and perhaps before even phone screening you will want to have a thorough read of all the details, but it’s not necessary at this early stage. Only skim through each resume in this screening stage only – take note of those ‘essential criteria’ along with any other key factors such as location, own vehicle, stable work history and qualifications. This will save you time in the initial stages, if the applicant ends up in your ‘yes’ pile of resumes, you can look at them in more detail then.
5. Don’t read the cover letter first
Some people love to read cover letters in a hope to get an insight into the personality of the applicant, as well as to pick up simple issues like spelling and grammatical errors. However, at this screening stage ignore the cover letter; it can bring you no value in helping narrow down during the initial screen.
6. Start with a Yes, No and Maybe pile
As you do your initial screen, sort each applicant into a yes, no or maybe pile/file. This can be done in your email by creating a folder for all your applications for the position, and then sub-folders for each of these. As you do your initial quick screen, move all those that meet your essential criteria into the yes folder, those who meet some but not all into the maybe folder, and those who miss the essential criteria into the no folder. This gives you a focus group to go back to when you are ready to phone screen, call for interviews or more thoroughly review the applications. If your yes folder holds 50 + applicants, re cull them and only leave those in who meet all of your essential, plus some of your desirable, or you may chose to cull via those with the more stable work history, live within closer proximity to the office (only if this is relevant) or have qualifications on top of their experience.
7. Act Fast!
It’s no secret, good applicants don’t last long in the market. There is nothing that will waste more of your time than getting around to screening applicants, only to discover that the good applicants are gone and you have to start the whole process again.
MORE GREAT POSTS BY KRISTY-LEE JOHNSTON
- How will Henry affect your hiring choices?
- The etiquette of making a job offer
- 10 Recruitment tips for the time-poor manager
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Kristy-Lee Johnston - Footprint Recruitment
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| Phone: | 02 4367 5500 |
| Email: | kristy@footprintrecruitment.com.au |
| Website: | www.footprintrecruitment.com.au |
| Twitter: | www.twitter.com/footprintcc |
| Facebook: | www.facebook.com/footprintrecruitment |
| LinkedIn: | au.linkedin.com/in/kristyleejohnston |
| Member Profile: | See Kristy’s Member Profile |
How many hours a week do you work?
May 25, 2010
A recent US survey showed that business owners work an average of 59 hours per week. How many hours a week do you work?
This poll is part of the Australian Businesswomen’s Network commitment to advocate on behalf of its community. The ABN’s herVoice initiative was established by the ABN in 2008 to give our community a voice about issues that impact on its members’ business, lifestyle, interests and wellbeing.
Learn more about our advocacy program here.
Power up your lead generation – A new webinar explains how
May 22, 2010
I met Jenny Armato online. We were Facebook and Twitter friends long before we met in person when she was visiting Sydney in March. It was the first time we really got to ‘chew the fat’ (or sushi as it was) and I immediately asked her if she’d speak for our Growth Members and share with them about what she knows about generating leads using social networks..
She really ‘knows her stuff’ when it come to doing business online and this week’s webinar is all about how to use social engines (Jennie’s word for social networks like YouTube, Twitter, Facebook) to:
- Get new clients
- Generate leads
- Power up business
I’ve been using social networks for a couple of years now and have had some success at generating leads from these network. But i KNOW that next week when Jennie presents the Social Engines webinar I’m going to have a whole lot of new distinctions on how to be more strategic about lead generation. I know that we’ll look at:
- How to integrate automated lead generation from Twitter, YouTube and Facebook with your web business blog.
- The 3 most effective ways to generate a steady flow of qualified leads on Facebook.
My invitation to you to attend:
I hope you’ll join me.
Date: 26 May
Time: 10.30am – 12.00pm
Venue: Webinar (all you need is access to the Internet)
Price: Free for Growth Members, $39 for StartUp members and $59 for Non-Members
Counting sheep is over rated!
May 21, 2010
By Catherine Pritchard, Radiance Healthcare Centre
Counting Sheep Is Overrated
Do you have a mind that just won’t shut off at the end of the day? Do you get into bed and start thinking about your day and all that you have to do tomorrow?
A busy mind serves you well during the day, but once your head hits that pillow, switching it off isn’t always as easy as it sounds. A good restful sleep is essential to every aspect of your health, energy and business productivity and many of us either don’t get good quality sleep or just don’t get enough.
Stress is a common cause of sleep deprivation. If you have a hectic schedule then it’s important that you replace the nutrients that get used up at a rapid rate as a result of stress. You may not be able to do anything about the actual stress, but you can certainly alter the way the body responds to stress and therefore improve your quality of sleep. The effects of long term stress can impact certain chemicals such as serotonin in the body that are responsible for having a good night’s sleep.
If you find that counting sheep just isn’t cutting it anymore then the following tips and nutrient/herb suggestions can help you enjoy a restful and rejuvenating night’s sleep again. In addition to particular nutrient deficiencies that result from stress, food intolerance’s, stimulants, low brain levels of serotonin and melatonin and metal toxicity can impact your sleep.
5 dietary changes to better sleep
- Avoid all caffeine including coffee, chocolate, tea, energy drinks
- Stop drinking water/beverages by 7pm. Waking in the night can be simply due to over-hydration in the evening.
- Avoid alcohol
- Eat foods rich in tryptophan such as chicken, soy, tuna as they stimulates serotonin to help you sleep. Milk is also rich in tryptophan – that is why a glass of milk before bed can help.
Nutrients that can assist sleep
- Adenosine – considered a major sleep molecule involved in creating both a restful sleep and sending you to ‘the land of slumber’ easily
- Don’t take your multivitamin or B vitamins at night. B Vitamins make energy, so you need those in the morning, not in the evening as they can keep you awake!
- 5-hydroxy-tryptophan – helps to reduce anxiety and promotes serotonin production essential for relaxation. (Do not use if on antidepressants.)
- Calcium and Magnesium – help to nourish and relax the nervous system.
Herbs to assist sleep
Passionflower, ziziphus and valerian are all fantastic in helping calm the nervous system to allow you to drift off to ‘the land of nod’ quickly and easily, without any side effects.
MORE GREAT POSTS FROM CATHERINE PRITCHARD:
- Protect you (and your staff) this winter
- Boost your brain power and revitalise your memory
- Solutions to your best excuses!
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Catherine Pritchard - Radiance Healthcare CentreCatherine is a scientific naturopath who is experienced in working with business women to increase their energy, motivation and productivity. Her innovative programs are based on the latest research and incorporate simple dietary changes so that you can get the most out of each and every day. Prior to commencing her career as a naturopath almost 10 years ago, Catherine was an industrial chemist in an oil refinery. Her scientific background caused her to seek out the latest technology to assess your health, energy and vitality. In conjunction with a thorough assessment, these state of the art tests allow her to personally prescribe you the most suitable nutrients that will make the greatest impact on your health and wellbeing.
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The Curse of Mediocrity
May 20, 2010
by Cat Matson, Alito
I’ve been noticing a worrying trend of late. Despite the economic forecasts of ‘recovery’, the business community seems to be doing it tougher than ever before. I’m noticing in particular, small business owners scrimping and cutting corners – looking for the ‘low-cost’ solution rather than a cost-effective solution.
“It’s unwise to pay too much, it’s worse to pay too little. When you pay too much, you lose a little money – that is all. When you pay too little, you sometimes lose everything because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.’
- John Ruskin (1819 – 1900)
Sure, VistaPrint can deliver you some charming business cards for next to nothing … but how does that affect your brand? Doing your own bookkeeping may save you a couple of hundred dollars a week … but can you be sure you’ve tracked everything for maximum tax benefit? Not investing in a quality accountant, business advisor or mentor might ease the pressure on the bank account … but are you making robust strategic decisions that enable your business to put its best foot forward?
There is no doubt that every business owner needs to make the right purchasing decisions for their business – decisions that are in line with their overall strategic objectives. And maybe VistaPrint is the appropriate solution for you in the business card department so you can invest in a quality bookkeeper – that’s your call. My concern is that an increasing ‘notion’ of ’sucking-in’ and ‘holding-on-to-the-cash’ is driving a new business culture of mediocrity – ‘near-enough-is-good-enough’.
On the surface that might be true – so what if the business cards aren’t as ‘glossy’ as last time? However it’s the mental and emotional shift that worries me. As soon as we, as business owners, start ’settling’ for ‘less’, then it’s easy to settle for less in our business as a whole … the standard we settle for now when things are tough becomes the new standard … excellence fades into average and our aspirations fade into survival.
The ‘curse’ that I speak of is mediocrity is self-perpetuating. You start ‘talking’ about survival … and other people chime in … and all of a sudden you’re having daily conversations at that level. This couldn’t be truer in the age of social-media where we gravitate towards people who are like-minded and are willing to share their experiences.
So the distinction I’d like to draw today is one of ‘keeping it real’ vs ‘lowering the standard’. It’s a mental and emotional space – one where while you adjust your strategy to meet ‘reality’ you maintain an appropriate level of excellence, a meaningful level of aspiration. If you start feeling the ‘pull’ of mediocrity – of ’settling for’ check who you’re listening to, reading or hanging out with (real or online). Reconnect with those who inspire you and keep you striving ‘up’ … and disconnect from spaces that invite you to stay small.
This quote from Ella Fitzgerald sums it up nicely …
“Just don’t give up trying to do what you really want to do.
Where there is love and inspiration, I don’t think you can go wrong.”
Rise above the mediocrity … be ‘the tall poppy’ – the view is better from there anyway 
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Cat Matson - Alito
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| Phone: | 07 3289 7055 |
| Email: | cat@alito.com.au |
| Website: | www.alito.com.au |
| Twitter: | www.twitter.com/catmatson |
| Facebook: | www.facebook.com/AlitoFusion |
| LinkedIn: | www.linkedin.com/in/CatMatson |
| Blog: | www.alito.com.au/blog |
| Member Profile: | See Cat’s Member Profile |
More Posts by Cat Matson
- Win, Lose or Synergise?
- Coaching vs Mentoring (and is it worth drawing the distinction?)
- The Fallacy of Managing Time
- Silver Bullets
Do you believe that the Federal Budget brought down in May has benefitted, or will benefit Australian female entrepreneurs and businesswomen?
May 18, 2010
Take our national poll
Do you believe that the Federal Budget brought down in May has benefitted, or will benefit Australian female entrepreneurs and businesswomen?
This poll is part of the Australian Businesswomen’s Network commitment to advocate on behalf of its community. The ABN’s herVoice initiative was established by the ABN in 2008 to give our community a voice about issues that impact on its members’ business, lifestyle, interests and wellbeing.
