SUMMARY OF MR LARTEY’S PRESENTATION (C.E.O OF SCG CONSULTING) – CHALLENGES AND HOW TO GET PROSPECTS UNDER REVIEW
Christian Barnard the first to do a heart transplant who hails from South Africa, after his successful operation decided to educate the world by touring around mostly in the European countries. After a month he got tired saying the same stuff over and over again so he told his chauffeur that they should switch clothes at their next stop since they do not really know who he is or how he looks like. The chauffeur agreed and did an excellent job; he had heard everything from the master, he answered 99% of the questions posed at him until one person asked about the socio-economic importance of his work not knowing what to say he laughed out loud and replied, this is the stupidest question I ever heard, matter of fact it is so easy I will let my chauffeur sitting at the back to answer it.
The analogy here is simple, entrepreneurs are just like anybody else in this world but they have distinctive qualities for instance they see opportunities as challenges and every problem as a disguised solution. They are risk tolerant people and know what they want in life. By staying positive a lot of people could help heal the world, we say motivation does not last is just like bathing that is why recommend it daily _zig ziglar
The journey to success in every business starts with discovering the total you in you. David Datter has done a great deal of work on the purpose of life, one of his popular quotes is lock yourself up in a room with a pen and paper, it could take you minutes, hours, days, week in week out or even years but do not get out until you get it.
Every creative business from the outset will face either rebuff or teething troubles, the onus is on the entrepreneur to punch through whatever adversity as he progresses so we say Starting a business is like jumping out of an airplane without a parachute. In mid-air, the entrepreneur begins building a parachute and hopes it opens before hitting the ground_ Robert Kiyosaki author of Rich Dad
Mr. Lartey started on a brief account of some famous entrepreneurs of our time which includes Thomas cook been the first to come up with the idea of travelers check instead of going through the headache of converting currencies.
Henry ford who is revered as the father of motors, though he was not the inventor of vehicles but he was the first to manufacture on mass production as opposed to the custom built as of years passed.
Steve jobs came up with the GUI interface, IPOD (was very innovative, suddenly became a smash hit because DJ’s had to carry over 200CD’S to play shows, he thought why cannot you have all on one platform) and currently the IPAD –convergence of telephony and data.
Bill William Gates who happens to be a computer programmer came up with an idea to revolutionize the PC WORLD with usable software and mobile computers. Mainframes was the order of the day but Bill’s dream was to see laptop or desktop in every home in the world connected to the internet with a printer attached to it and that he did justice to it.
RAISING CAPITAL FOR YOUR START UP
If you want to know the value of money, go and try to borrow some _Benjamin franklin. In short, trying to convince people to build an idea which doesn’t exist is like pulling teeth. Raising capital requires a lot of information; however it does not necessarily mean going to borrow from clearing banks. You might as well extend ownership but it comes with the real cost of losing full control over your business. Alternative financing sources, such as borrowing from friends and relatives or using personal savings could also be considered. One could also resort to any of the following;
Initial Public Offering: Ready for a whirlwind ride? Take the ultimate funding trip by going public. This guide will help you prepare.
401(k) financing: Fund your new company with your retirement account from your previous job–but watch out for the tax man
504 Loans: If you’re buying a fixed-asset like land, buildings or long-term equipment, look into a 504 loan.
Royalty Financing: Got a product that will bring in the bucks? Use it to get a loan based on your future sales.
Federal Government Venture Capital: SBA-licensed one-stop funding shops SBICs and SSBICs are looking for businesses to fund. Could your business be next?
Angel Investors: These individual VC investors seem like they’re from heaven, but be prepared to give up a chunk of your company for funding.
Microloans: When you need only a little cash to grow, it’s time to check into microloans
Private Loan Guarantees: You’re early stage, the bank is ignoring your pleas–what do you do? Find an investor to guarantee your loan.
All else been equal, the most important resource the entrepreneur needs is time and personal resources. According to Jim Rohn, formal education will make you a living; self-development will make you a fortune. Another cardinal factor has to do with Honesty to your stakeholders (suppliers, customers and employees). Honesty is very expensive do not expect it from cheap people _Warren Buffet the most successful entrepreneur in the world.
In addition, you need to possess the finesse to sell your idea, if you CANNOT SELL, DON’T BOTHER THINKING ABOUT BECOMING A BUSINESS OWNER
FINDING GOOD EMPLOYEES
If you want to go fast go alone, if you want to go far go together that is to say we win with people. INDVIDUALS DON’T WIN IN BUSINESS, TEAMS DO- SAM WALTON
BUT, It is imperative to learn that; if you own a butcher shop, do not employee vegetarians _ Rich Dad
Mr. Lartey does not employ GOOD CV’S but looks out for something more than that, which philosophically has been proven to be 100% in alphabetical calculation, it is in the magic word ATTITUDE. It is not your aptitude but your attitude which will determine your altitude, sure you can get employed but lasting in the company is another ball game.
FINDING THE RIGHT CUSTOMERS
Good customers will stay and forgive you of your mistake. It is also worth knowing that good customers are as good as the bad ones. Nonetheless, you do not have to neglect or get rid of your perceived bad customers completely. Find out more for what sinks the ship is not what sailors can always see but what they cannot see(the concept of organizational iceberg). Your most unsatisfied customers can be your greatest source of revenue _Bill Gates
USEFUL INFORMATION TO GET LEADS OR PROSPECTS;
– Develop a plan. Consider who would make the ideal customer. If you sell to businesses, consider what department is most likely to buy your products or services
– Work your local newspapers, Radio & Television if you have the means. Daily and weekly newspapers are an incredible source of contact information and leads to potential customers
– Sponsor Events. Watch for events that may bring your potential market together. Contact the organizers of the event and offer to give away your product or service as a prize during the event in exchange for having the group promote you in their promotions
– Give a little to get a lot. Give away free samples of your product and ask the recipients to tell their friends if they are pleased. Or, if you are a consultant, give away some free advice.
– Study your successful competitors. Where do they advertise? Where do they network? What tactics do they use? What works for them may work just as well for you.
– Claim your “place” in Google Places, Use Online Banner Ads, Videos on YouTube, Craigslist, Connect on Facebook, Linkedin.com, MySpace.
– Ask for feedback when prospects don’t buy
– Follow up after meetings. Contact the people you’ve met to see if they may be prospects. If they say they don’t need your services now, ask when a good time to call them back would be, or if they have business associates who could use what you sell now.
– Work your personal network; ask your friends if they know of people who can use your services
-BUILD RELATIONSHIPS, STOP SELLING AND START HELPING _zig ziglar
FINDING THE RIGHT LOCATION
Location has an impact on your image. Anew, it tells your customers you are in for the long haul. Points to ponder include the following;
-the proximity to your target market + raw materials
-Internet Access, Business Climate, Tax Rates, proximity to hospital and banks in case of emergencies
-Retail compatibility: the benefits a company receives by locating near other businesses that sell complementary products and services helps generate high volumes of traffic.
– Compatibility with the community local laws and regulations (zoning: a system that divides a city into small cells or districts to control the use of land, buildings and sites)
UNFORSEEN BUSINESS EVENTS
Every company goes through her product life cycle (Intro, Growth, Maturity/saturation, and Decline). The first 5years is very challenging,
Once you cross 10years there is a surety of stable business. That been said, Contingency factors should be put in place to counter cases like natural disaster, -inconsistent government policy, unexpected staff resignation, uncontrolled directors expenditure.
HOW TO EXIT YOUR BUSINESS (SUCCESSION PLAN)
You have to plan your exit strategy even before you start your business. Is a simple analogy, no one lives forever or knows tomorrow only it is better safe than sorry. Why does succession planning feel like such a waste of time?
Many CEOs express concern about the lack of bench strength in their companies. They are very worried that they lack sufficient “ready now” candidates to replace planned & unplanned losses of key leaders. As a result, the future continuity and performance of the business is at risk. These same executives also tell us that their companies have been doing succession planning for years. On average, companies give their succession planning process a grade of C+ and they give their execution of succession plans a grade of D. Below are three practical ideas on how you can get more impact from your organization’s succession planning efforts.
1. Change Succession Planning to Succession Development.
Plans do not develop anyone — only development experiences develop people. We see many companies put more effort and attention into the planning process than they do into the development process.
2. Keep it simple.
We sometimes find companies adding excessively complex assessment criteria to the succession planning process in an effort to improve the quality of the assessment. Some of these criteria are challenging even for behavioral scientists to assess, much less the average line manager. Since the planning process is only a precursor to focus the development, it doesn’t need to be perfect. More sophisticated assessments can be built into the development process and administered by a competent coach.
3. Stay realistic.
While development plans and succession charts aren’t promises, they are often communicated as such and can lead to frustration if they are not realistic. Bottom line; do not jerk around high performing leaders with unrealistic development expectations. Only give the promise of succession if there is a realistic chance of its happening!
Hopefully the aforementioned points will shift your company’s focus from “planning to developing”, to achieve an increased depth in your bench strength.
DO YOU NEED A BUSINESS PLAN?
YES – the more you grow you tend to forget a lot of stuff, your 1 terabyte of IQ storage now may drop to kilobits with time there is therefore the need to document your stuff properly, of which you can always refer to the blueprint. This includes goals and objectives. If you cannot explain it simply, you don’t understand it well enough _Albert Einstein
If your business plan is definite it will be easy for your employees to be in tandem with your vision. Every business should cover;
MARKETING MANAGEMENT PROCESS (A P I C)
A-ANALYSIS – it answers the questions where are we now
P-PLANNING- it answers the question where do we want to be
I-IMPLEMENTATION- it answers the question how we would get there
C-CONTROL- DID WE GET THERE?
CHALLENGES FACING SMALL BUSINESSES
A solid organizational structure is a must have for every business. Mr. Lartey elaborated on the importance of organogram (organizational chart); it spells out clearly your road map with the company. It makes it easy for employees to know their starting and ending point, how long it will take one to become a director and so on and so forth.
Else people will come and leave because they do not see any vision in what they are doing and what awaits them.
SCG consulting has operational policies, what makes an employee qualify for a loan or study leave, if policies are absent in any company the manager suffers the fate of telling different stories to different employees forgetting that employees will compare notes.
Do not be disappointed if some of your dreams fall on rocks, that’s alright, happens in every business. Never waste an opportunity to learn even without benefits, chase your dreams first and the money will chase you afterward.
Business is like a wheel barrow. Nothing happens until you start pushing. The demands on your time may be greater than you anticipated, and enough money to keep things going can also be a problem. With some careful planning, you can anticipate some of these challenges and will be able to overcome them.
Sticking It Out
Operating a business can be like a roller coaster ride, filled with ups and downs. In addition to the financial resources to get you through the lean times, you may also need plenty of emotional strength fortitude to persevere when things look bleak. Robert Kiyosaki says “To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game.”
Lack of experience
Most entrepreneurs lack the experience of handling a business independently. Also, most people are not well equipped with the skills necessary to run a business. Starting a new business requires much more than finding a cool product or service to sell. It also requires you to be skillful at sales, accounting and planning to make the company profitable.
Managing Time
“I can do it better myself.” However, this seldom works, as it can lead to a quick burnout. New business owners may feel they need to do everything themselves or spend too much time on things that don’t help the business grow. When planning a new business, you should decide which tasks you should concentrate on personally and which ones you need to outsource or hire employees to perform. This will give you the time to focus on vital business functions.
Obtaining Knowledge
Unless you already possess high expertise or are purchasing a franchise where you receive strong support from the franchisor, you’ll likely need to learn much in a short period of time. Even if you have strong product knowledge, you may be lacking in areas, such as marketing or managing employees.
Lack of Balance
During the startup phase of your business, you may be so focused on making it a success that other areas of your life could suffer. Factors that include stress, overeating and a lack of exercise can cause your health to deteriorate, and you may neglect personal relationships. You will need to set aside time to make sure you have some form of balance in your life. KEEPING IN TOUCH WITH YOUR FAMILY SHOULD BE #1 ON YOUR LIST, IF POSSIBLE NEVER FORGO AN OPPORTUNITY TO SPEND QUALITY TIME WITH YOUR FAMILY IN EXCHANGE FOR BUSINESS. Yes, money makes the world go round but on your sick bed it is your ONLY loved ones who will be there to comfort you and that is priceless.
Overcoming challenges in starting a small business
To overcome these challenges, you must:
Have enough funds in your account. A conservative estimate could be six months of living expenses, apart from the start-up capital. You must also ensure an excellent personal credit record.
Research your product or service and its addressable market properly. (Check if a similar product is already patented or how you can improve it)
Do not start without a business plan.
Try your idea while working in a regular job. This ensures you still have an income, as businesses do not generate earnings immediately.
Obtain all the personal and professional support you would need before you completely transition from a job to business. You can visit your nearest NYDA and SEDA offices for business support.
REFERENCES:
Mr. Justice Lartey CEO OF SCG CONSULTING
http://www.businessknowhow.com/startup/findcustomers.htm
http://www.entrepreneur.com/howto/raisemoney/index.html
http://blogs.hbr.org/goldsmith/2009/05/change_succession_planning_to.html