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Jeremy Gray – Practical Solutions to Difficult Problems S8 E 29-32

20/2/2022

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Jeremy Gray – Practical Solutions to Difficult Problems
IBGR. Network. The World of Business at Your Fingertips

Season 8 Episode 29 to 32. You think you want to be an entrepreneur. What you need to know.
​

Based on an eBook published by Harvard Business Review. “So, you want to be an entrepreneur: How to get started.”

​
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Episode 29 Characteristics of Successful Entrepreneurs.
Last week in episodes 25 to 28 we learned how your personality type will impact on the way you grow your business. The who drives the how.

We talked about four personalities that can be found in entrepreneurs.

The Driver, The Explorer, The Crusader, The Captain

The Driver is product focused.    
  • Identifies his own self with the products success The archetypical driver, the driver’s driver Steve Jobs. Obsessed on product design

The Explorer
is focused on the problem or puzzle.
  • Tend to be systems thinkers Attracted to complexity How to connect with friends at college was the problem facing Mark Zuckerberg

The Crusader
thinks about the mission and a business builds up around the mission.

Ben Cohen and Jerry Greenfield, founders of Ben and Jerry ice cream founded their business in a disused gas station in Burlington Vermont. To engage their customers, they used to show free movies and hand out free ice creams. 

The Captain is focused on the team.
  • They see themselves as managing through we rather than me. Does not mean they are indecisive or do not have a clear vision on where they want to go
  • When Jack Ma had the idea for Alibaba he gather 17 friends in his apartment to get their thoughts on his idea.

Whatever personality you have, you can be a successful entrepreneur. In this episode we will consider the characteristics that many entrepreneurs possess.

1.    Curiosity
Successful entrepreneurs have a sense of curiosity that leads them to continuously seek new opportunities. Rather than settling for what they think they know, curious entrepreneurs ask challenging questions and explore different avenues.

Entrepreneurship is described as a “process of discovery.” Without a drive to consistently ask questions and challenge the status quo, valuable discoveries can be overlooked.

2.    Structured Experimentation
With curiosity comes the need for structured experimentation. As new opportunities arise, an entrepreneur must conduct market research and run tests to determine whether they’re worth pursuing.

Business is ever-changing. It’s nearly impossible for entrepreneurs to be prepared for every scenario they encounter. They need to know how to evaluate situations and adapt so their business can keep moving forward when unexpected changes occur.
 
3.    Adaptability

Business is ever-changing. It’s nearly impossible for entrepreneurs to be prepared for every scenario they encounter. They need to know how to evaluate situations and adapt so their business can keep moving forward when unexpected changes occur.

4.
    Decisiveness

An entrepreneur has to make difficult decisions and stand by them. They’re responsible for guiding the trajectory of their business, including every aspect from funding and strategy to resource allocation.

Being decisive doesn’t mean having all the answers; it means having the confidence to make challenging decisions and see them through. If the outcome turns out to be less than favorable, deciding to take corrective action is just as important.

5.
    Confidence

Accomplished entrepreneurs exude confidence and are their business’s biggest advocates.

Whether pitching to investors, communicating with clients, or making conversation at an event, the way they talk about their business and its potential can influence how others see it, too. Showing a lack of confidence can deter investors or lead customers to question their buying decisions.

6.
    Team Building

A great entrepreneur is aware of their strengths and weaknesses. Rather than allow shortcomings to hold them back, they build well-rounded teams that complement their abilities.
In many cases, it’s the entrepreneurial team—rather than an individual—that drives a venture toward success.

7.    Risk Tolerance
Many things can go wrong when launching a venture, but many things can also go right. The key is for entrepreneurs to actively manage the relationship between risk and reward and position their companies to “benefit from the upside.”

Effective entrepreneurs are comfortable with encountering some level of risk to reap the rewards of their efforts, but they also take steps to minimize their chance of failure.

8.
    Comfort with Failure

A startup can fail for various reasons, such as a flawed business model or lack of focus. While many obstacles can be avoided, some are inevitable.

Successful entrepreneurs prepare themselves for, and are comfortable with, failure. Rather than let fear hold them back, they allow the possibility of success to propel them forward.

9.
    Persistence

While successful entrepreneurs are comfortable with the possibility of failure, it doesn’t mean they give up easily. Rather, they see missteps as opportunities to learn and grow.

Throughout the entrepreneurial process, many hypotheses turn out to be wrong, and some ventures fail altogether. Part of what makes an entrepreneur successful is their willingness to learn from mistakes, continue to ask questions, and persist until they reach their goal.

10.
    Innovation

Many ascribe to the idea that innovation goes hand-in-hand with entrepreneurship. This is often true—some of the most successful startups have taken existing products or services and drastically improved them to meet changing market needs. Innovation is a characteristic some, but not all, entrepreneurs possess. Fortunately, it’s one that can be cultivated.

11.    Long-Term Focus
Most people think of entrepreneurship as the process of starting a business. While the early stages of launching a venture are critical to its success, the process doesn’t end once it’s operational. It’s easy to start a business, but hard to grow a sustainable and substantial one. Some of the greatest opportunities in history were discovered well after a venture launched.”

Entrepreneurship is a long-term endeavor, and entrepreneurs must focus on the process from beginning to end to achieve long-term success.

Tags: How to grow a business, achieve business success, employee individualism, self-assessment, motivation, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes;  IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

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Episode 30 Deciding to pursue entrepreneurship

1.    Is Now the Right Time to Start a Business?
Your idea may never take off if you try to start your business at an inopportune time. Are you currently in a position to pursue entrepreneurship? Consider your relationships, financial well-being, and physical health.

On the flip side, perhaps you’ve recently been laid off from your role in corporate finance. This turn of events could spark an ambition that can be poured into starting your new venture, backed by your professional experience.

Also, consider if the timing is right in the broader economy and the specific market you want to enter. You should ensure your offering meets a current need.

2.    Do You Have a Business Idea, and Is That Idea an Opportunity?
When starting your business, you need to know what you plan to sell. If you haven’t fleshed out those details yet, brainstorm using the following prompts:

•    Why does it take so long to?
•    Why does    cost so much?
•    Can I deliver    with a new business model?
•    What can I change about    to improve it?

Your idea doesn’t need to be a new invention—it simply needs to fill an unmet need. If you have an idea for an original product, that’s great, but an improvement to an existing product’s cost, production, functionality, or accessibility can go a long way.

You should also determine whether your business idea is a viable opportunity. Opportunity is defined as “a proposed venture to sell a product or service for which customers are willing to pay more than the required investments and operating costs.”

To find out if your idea is an opportunity, first come up with a hypothesis. Next, test your hypothesis by conducting market research.

Sahlman recommends reaching out to strangers from your target market segment, rather than friends, family, and colleagues, who may sing false praises. The feedback you receive can inform if your hypothesis was correct or whether you need to test other ideas.

3.    Are You Prepared to Pivot and Adapt?
Entrepreneurship is an iterative process. If you know that absorbing new information and pivoting when ideas fall flat aren’t your strengths, develop those abilities before becoming an entrepreneur.

Say you produce pull-up bars, and 75 percent of the people you interview aren’t willing to pay $80 for your product. Given this information, you need to adapt.

You test further hypotheses and discover the majority of your target segment is willing to pay the original $80 if the equipment is both high-quality and easy to install. This leads you to develop a new prototype, reassess manufacturing costs, and conduct another round of testing.

Your ability to frequently adapt—especially in the early stages of your business—is essential.
 
4.    Do You Have a Strong Team, or the Ability to Form One?
No successful entrepreneur got to where they are by themselves.
“All great companies, even those with iconic entrepreneurs, had many other people who were involved and, without whom, the company might not have made it so big,”.

 Apple is used to illustrate the power a team can have when growing a business. Co-founder Steve Wozniak was the mind behind the company’s early products and, shortly after its incorporation, Mike Markkula and Mike Scott joined as seasoned executives who proved themselves essential to the company’s growth. Co-founder Steve Jobs, who had previously been forced out of the company, returned when it was on the verge of failure and revitalized its products. Without each of them, and countless others, Apple wouldn’t be where it is today.

Keep in mind that successful business owners know when to ask for help and delegate tasks. Whether that means starting your business with a partner or two, building a strong team as you grow, or simply accepting any help and advice you can, know that your potential success relies on the strength of the people around you.

5.    Do You Have Access to Funding?
To launch your business, you’ll need funding to purchase equipment and materials, develop your product or service, iterate on your offerings, and refine your processes. Exactly what funding will look like depends on the type of business you’re launching and your industry. Your options include:

•    Self-funding
•    Securing an SBA loan from the Small Business Administration
•    Raising capital from investors
•    Applying for grants (this may be especially suitable for nonprofit organizations)
•    Crowdfunding from the public
•    Relying on a line of credit

Every form of funding comes with benefits and risks. Self- funding, for example, allows you to retain complete control over your business and potential profits but requires you to carry the risk of failure.

Raising capital from investors, on the other hand, allows you to spread your risk and, potentially, launch your business quicker—but it forces you to give up a portion of your control. Ultimately, you must decide what makes the most sense for your business.

6.    Are You Prepared for the Possibility of Failure?
Entrepreneurs must be prepared for the possibility of failure when starting a business.

“Though every entrepreneur imagines success, they must act with the full knowledge that the odds are against them,” 

The very real possibility that your business may not survive is something you need to come to terms with before pursuing entrepreneurship, and you should have a plan for that scenario.

7.    Why Do You Want to Start a Business?
As you consider becoming an entrepreneur, continually return to the most basic question: Why?

While only you can answer that, understanding the relationship between risk and reward can help illuminate your motivations. Ask yourself what you hope to gain from starting a business and list the risks you anticipate. If the pull of potential rewards outweighs your fear of risks, it’s a good sign you’re ready to be an entrepreneur.
​

 “Successful entrepreneurs are real people and not superhuman. They pursued their passion, followed the principles, and continued pushing forward despite the challenges they encountered. It was something I could relate to, and it helped me understand and know that fear can be good because it fuels your passion to keep moving forward.”

Tags: How to grow a business, achieve business success, employee individualism, self-assessment, motivation, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes;  IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

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Episode 31 What skills are needed for an innovative entrepreneur? Part 1

1. Basic Financial Skills
Financial skills, such as budgeting and financial statement analysis, are necessary for running a business. Creating a reasonable budget and sticking to it can be the difference between your venture’s success and failure. By learning this skill, you can avoid overspending and appropriately allocate your company’s resources.

It’s also imperative to know how to read and prepare financial statements. Aside from being required for reporting and tax purposes, these documents help you track performance, make future projections, and manage expenses. They can also be useful to investors and banks considering funding your startup because they show your business’s financial progress.

2.     Networking
Your network is one of your greatest assets. Networking can enable you to not only meet like-minded professionals but build your future team and keep a finger on the pulse of your industry. Your professional network can consist of: 

•    Co-workers
•    Alumni from educational institutions
•    Professors and teachers
•    Industry leaders and speakers
•    Clients
•    Friends and family members
•    Business professionals in your geographic area
•    Others in your industry with similar interests, responsibilities, and goals

Identify and reach out to people who can guide you in your entrepreneurial journey and inform your decision-making. Ask them about their business, how long they’ve been in their industry, and lessons they’ve learned from successes and failures. Perhaps they’ve started several companies and can offer valuable advice about raising funds, developing products, and building a client base. They may even be able to connect you to professionals in their networks whose work aligns with yours.

In addition to leveraging your network, expand it. You can do so by signing up for networking events or using LinkedIn to find professionals with whom you have shared connections, similar interests, and job titles.

3.    The Ability to Accept and Act on Feedback
To succeed as an entrepreneur, you need to be eager to receive and act on feedback. This skill requires you to stay humble and accept that your idea of the perfect version of your product may not resonate with potential customers.

One way to gather feedback is by conducting interviews with potential customers from your target market segment. These interviews

can validate your business idea and provide constructive criticism regarding your product, proposed business model, or assumptions you’ve made about users.

You may also receive feedback from investors, more experienced entrepreneurs, and friends and family. Some of it may be unsolicited. You’re not required to implement all of their advice, but it’s beneficial to consider it. Would their suggestion increase the quality, value, or user experience of your product? If the answer is yes, take steps to make those improvements.

Don’t Fool Yourself
John Osher, a serial entrepreneur behind the SpinBrush toothbrush and other successful consumer products, asserts that the most important thing you can do is find and listen to the truth, no matter how hard it may be. 

He points out that willful blindness to customers’ negative feedback can lead to costly mistakes.

“If an entrepreneur puts truth first, they’ll always find a way to solve the problem,” Osher says. “Putting your personal feelings and passion for the product ahead of the truth is a recipe for failure.”
 
4.    Pattern Recognition
Pattern recognition—in data, market trends, and user behavior—is an often overlooked skill for entrepreneurs. Identifying patterns in cash flow statements, for example, can enable you to make predictions about future cash flows. When observing market sales data, you can identify seasonality or other time-related trends that inform your long-term goals.

When observing how users interact with your product, pay attention to how they react to specific elements and what questions arise during use. Patterns will begin emerging.

If your product is an app, perhaps you notice a pattern among teenage male users who download it and immediately open the chat function. You can use this kind of user behavior trend to learn more about your customers’ motivations and improve your product to fit their needs better.

Testing Your Product or Service
Testing your product with real users can prove invaluable when assessing market validity, and there are two types you should know: alpha and beta testing.

•    Alpha testing is when internal employees test a product in a staged setting. The purpose of alpha testing is to eliminate any bugs, issues, or idiosyncrasies in the product before it’s available to outside users.
•    Beta testing is when a product is tested by a limited group of real, external users who are specifically told to identify problems. In the case of a software or app, beta testing might be open to the public with a notice letting users know the version they’re testing is unfinished.

If there’s a need in the market, but your product is faulty, complex, or difficult to use, customers may opt for a competitor’s offering. The feedback you get from beta testers can help you leverage and meet customer needs. 
​

Tags: How to grow a business, achieve business success, employee individualism, self-assessment, motivation, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes;  IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

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Episode 32 What skills are needed for an innovative entrepreneur? Part 2

5 Strategic Thinking
Strategic thinking encompasses any skills that enable you to use critical thinking to solve complex problems and plan for the future. These skills are essential to accomplish business objectives, overcome obstacles, and address challenges—particularly if they’re projected to take weeks, months, or even years to achieve. Strategic thinking skills include:

•    Analytical skills: To ideate a strategy that helps your organization reach its objectives, you must be capable of analyzing a variety of inputs—from financial statements and KPIs, to market conditions, emerging business trends, and internal resource allocation.
•    Communication skills: Putting a strategy into place for your company, regardless of its size, requires solid communication skills. The ability to communicate complex ideas, collaborate with internal and external stakeholders, build consensus, and ensure everyone is aligned and working toward shared goals are all central to strategic thinking.
•    Problem-solving skills: Strategic planning is often used to solve problems or address challenges, such as missed financial targets, inefficient workflows, or an emerging competitor. Implementing a strategy that addresses the central challenge you face requires you to first understand its scope and potential solutions. From there, you can craft a strategy that solves it.
•    Planning and management skills: Strategy isn’t just about thinking of a solution— it involves implementation, too. Once data has been analyzed, the problem is understood, and a solution has been identified, you need strong planning and management skills to bring everything together.
The advantage of having a strategic mindset is learning how to think rather than what to think. Although you might not always have the right answers, strategic thinking skills can enable you to spot new opportunities, address emerging challenges, and plan for success.
 
6.    Negotiation
Building a company requires engaging in negotiation with potential investors, early employees, and prospective partners. As you work to get your business off the ground, it’s vital to know how to create value and overcome differences to form lasting partnerships.

The entrepreneurs behind Unshrinkit, a product that unshrinks wool garments, recount how they used negotiation skills to close a deal with their supplier Sourcentra. After reaching an oral agreement, Sourcentra sent Unshrinkit a written contract with modified terms because its CEO felt his company was assuming too much risk.

Instead of taking a contentious approach and bargaining over contractual obligations, Unshrinkit’s founders focused on the CEO’s motivations to salvage the deal. They emphasized how the partnership would allow them to grow their company, which spoke to the CEO’s entrepreneurial background and desire to help small business owners. By appealing to the CEO’s emotions, the team was able to convince him to proceed with the partnership and reach a favorable agreement.

How to Create Value in a Negotiation

1.    Build Trust
Trust is a foundational component of any effective negotiation strategy. Deal-making comes with an inherent level of risk, making it vital to build a rapport with the other party.

2.
    Find Uncommon Ground

Value creation requires focusing on areas where you and the other party have different interests and perceptions, rather than commonalities.

“It’s not a matter necessarily of finding things you agree on but things that you disagree about,” says HBS Professor Mike Wheeler, who teaches Negotiation Mastery, in an HBS Online video. “That could be the value of something. You might treasure something you own, but somebody else is just nuts about it. You ought to be able to make a swap there.”

3.
    Be Agile

Being a successful negotiator involves knowing how to think on your feet and be agile.

“That means flexing yourself so that you deploy different skills depending on the situation and whom you’re dealing with,” To learn more about negotiating skills Ctrl+Click here

 An effective way to identify underserved customer needs is by using HBS Professor Clayton Christensen’s jobs to be done framework, which centers on the idea that customers don’t purchase products based solely on their attributes, but rather, “hire” products to do “jobs” they need to get done.

One example of a job to be done that Christensen presents is a fast-food chain selling milkshakes. It was found that most of the chain’s milkshakes were sold before 8:30 a.m., and customers typically didn’t purchase any other items. Rather than looking at the customers’ attributes to explain their buying behaviors, the chain focused on the job its milkshakes were being hired to do.

After interviewing several milkshake customers, the job became clear: They needed something to keep them full and occupied during their morning commutes and were hiring milkshakes to fulfill that purpose.
When evaluating market needs, try not to dwell on what products people want. Instead, focus on jobs that need to be done. To learn more about this topic Ctrl+Click here

Validating Your Idea by Assessing Market Size and Share
Before moving forward with your venture, estimate the size of your target market and the share of it you could potentially capture.

Mattress retailer Casper illustrates this idea. In 2014, Casper’s founders assessed the market size for their product by comparing its differentiating factors against the larger market. For Casper, these differentiating factors included its online business model, 100-day return window, and the viscoelastic foam material used in its mattresses.

Based on statistics for the mattress market at the time, Casper’s founders narrowed down which segments they should target and determined they could own a few percentage points of the total mattress market share.

Do this exercise for your target market to determine where your product fits and how much of it your business could own.
 
Tags: How to grow a business, achieve business success, employee individualism, self-assessment, motivation, the successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes;  IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems

I am committed to helping entrepreneurs succeed. I can bring the experience of 30+ years of experience at the C-Suite level in an MNC from Europe, North America, and Asia. Combine this with eight years of helping a diverse range of businesses and I can provide you with practical solutions to any difficult problems you may be facing. 
​

Please do not hesitate to contact me for chat via the following links:
mailto:jeremy@business-in-asia.org
Or schedule time via Calendly:
https://calendly.com/3-continents-consulting
My websites include:
https://business-in-asia.org/
https://thedentistscfo.com/
My LinkedIn URL
https://www.linkedin.com/in/jeremy-gray1

​
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