The relationships you form with customers
Last night Pavlo spoke about how most businesses start off the back of relationships and how these first relationships are crucial to your generating cash flow.
Often, to make this happen, you:
1. Make big accommodations in price, quality, service to cherish and look after the relationship;
2. You build it personally, close and familiar;
3. You do things that don’t make business sense to keep the relationship happy
This is fine if you are happy building a small, very small business.
It’s okay if:
1. You building a job;
2. It’s a very small business that is good enough for you;
3. You don’t need the money;
But, it’s not okay the moment you try to grow to the next level because:
1. Growth means that you can’t do everything. That relationship will need to be managed by the business rather than you and that means a staff membe4r
2. If you don’t get this right, you will grow the business to the limits of your time
Getting it right is hard because:
1. People don’t like change
2. Personal relationships are often abusive and to the benefit of the customer – they don’t want to change that
3. The “deal” will most likely have to change because growth requires standardization in deals and agreements
4. You fear it not working
5. You struggle to trust the person responsible in your company to manage it
How do you do it:
1. Identify the activities that you perform in managing that relationship
2. Put them into a sequence
3. Be sure that these activities are trainable and teachable
4. Be sure that these activities are scalable
5. Find a system operator to perform these activities
Listen to the full podcast here.
Morphing your passion and purpose to grow your business to the next level
Last night Bruce & Pavlo spoke about the two critical ingredients at every point of the business development life cycle - passion and purpose.
All businesses grow through a lifecycle of development.
They start, establish, build, grow, accelerate, hit prime and either glide or reinvent, mature and then plop down dead!
Every entrepreneur needs passion and purpose behind their actions…
Passion is the petrol and purpose the destination (which should always be an Asset of Value).
Both of these will change as you traverse the levels in the business lifecycle.
At the start – passion is a product/service, purpose is to get your first customer.
When you're established – passion is about the customer and the purpose is to understand the problem.
When you're building – passion is about building commercial systems and the purpose is to scale your ability to deliver
When you're growing – passion is about people; purpose is about releasing your time from operations
And when you accelerate – passion is about innovation; purpose must be to have it be customer led
Listen to the full show here.
Digitising your business
Digitisation is converting information into a digital format – but why is it important?
Listen to the show here. But why is digitisation important for small business?
How to set your pricing
So how do you know when the price of your product is right? Pavlo spoke about what you need to consider when pricing your product and provides a number of strategies that may be appropriate. Listen to the full show here.
Don’t be a victim
After listening to Bruce's interview last night with Astral and all the news of the past few weeks from Brexit, to the upcoming US elections, to tightening credit, to low growth and poor paying corporates. It's very easy to find reasons not to succeed!
Accelerate your growth through the power of the media
American academic Ralph Emerson said that if a man makes a better mousetrap than his neighbour, the world will beat a path to his door to get it. I don’t agree. Regardless of how brilliant your products or services may be, if you don’t let people know about them, your growth hopes are a fantasy.
How to build (when everyone is scaling back)
I seldom go to shopping centres but was at one of the bigger Joburg centres last weekend. It was heaving – filled with consumers dressed to the nines but they were all empty handed. They are not spending!
Entrepreneurial insights into Juno’s mission to Jupiter
On Monday, at 5.47am, Juno entered into the orbit of Jupiter.
The five-year journey culminated in Juno burning 18 000lbs of rocket fuel to slow down from 150 000mph to the exact speed needed to orbit Jupiter.
On board, three Lego men and women made of space-grade aluminium hope to withstand the perilous radiation of Jupiter for 18 month before Juno crashes into Jupiter’s surface.
Pavlo shared his entrepreneurial insights from Juno's voyage on the Money show last night. Listen to the show here.
1. Juno will get closer to Jupiter than any previous spacecraft ever has
Jupiter is surrounded by an intense "radiation belt."
The probe will circle the planet 37 times over 20 months, traveling between Jupiter and its radiation belt.
Juno, however, will come as close as 2,600 miles from the tops of Jupiter’s clouds.
GET CLOSER TO YOUR CUSTOMER TO BETTER UNDERSTAND NEEDS BOTH PHYSICAL NEEDS AND EMOTIONAL NEEDS
2. Data collected by Juno can help settle a debate about how planets, including Earth, are formed
Formation theories always begin with a collapsing cloud of gas and dust. Most of that material goes into forming a star, like our Sun, and the remainder can be used as building blocks for planets. Its not clear exactly how this is done: do planetary cores form first, and then accumulate their outer layers of gas just through gravitational attraction? Or do particularly large instabilities in that collapsing gas cloud collapse separately to form planets?
Learning more about the makeup of Jupiter’s core can help differentiate between these two scenarios
YOUR MARKETING MUST BE CUSTOMER NEED LED AND INNOVATION MUST BE DATA LED
3. Juno will attempt to measure the water in Jupiter’s atmosphere
Because Juno will be able to travel so closely to the planet, the probe will determine the composition, structure, and motions of the atmosphere below the cloud tops for the first time. In particular, the spacecraft will measure the water and ammonia in the gas giant’s atmosphere.
CONDUCT PROPER ANALYSIS ON YOUR CUSTOMERS OR PRODUCTS OR PEOPLE; WHO MAKES YOU MONEY AND WHO COSTS YOU MONEY
4. It’s Broke a Speed Record
Over the past few weeks, Jupiter’s gravity has been reeling Juno in, accelerating the spacecraft to breakneck speeds. By the time it arrives, Juno will be one of the fastest human-made objects in history, moving approximately 260,000 kilometers per hour relative to the Earth. That’s roughly ten times the top speed of the Space Shuttle.
When it enters Jupiter’s orbit on the evening of July 4th, Juno will shed some of its velocity in 35-minute main engine burn. But even after slowing down to a paltry 210,000 kilometers per hour, it’ll still be the fastest spacecraft ever to enter orbit around a planet. The reason for Juno’s incredible speed? Getting the spacecraft as close to Jupiter’s cloud tops as possible.
BUILD IN THE GRASS BUT SPRINT IN THE OPEN FIELDS WITH YOUR INNOVATION
5. Juno launched aboard an Atlas V rocket from Cape Canaveral Air Force Station on August 5th, 2011
BUILD OFF YOUR REFERENCE CLIENTS AND PIGGY BACK ON THE BIGGER ONES
6. It’s a Nuclear Fallout Shelter
A 180 kilogram titanium box roughly the size of an SUV trunk, the vault will reduce ambient radiation exposure approximately 800 fold. By the end of its mission in February 2018, it’ll have been dosed with the equivalent of 100 million dental x-rays.
PROTECT YOUR IP, STORE IN THE CLOUD, FORECAST WHAT CAN GO WRONG AND LIMIT YOUR DOWNSIDE RISK; NOT EASY FOR ENTREPRENEURS
7. It Runs on Renewables
Juno is the furthest solar powered mission ever conceived, built to run on the sun in an environment 25 times dimmer than the Earth. Even with state-of-the-art solar technology and energy-efficient electronics, the spacecraft needs to catch a lot of sunlight. Spanning 20 meters (66 feet), its three solar arrays contain approximately 18,000 solar cells in all. Total number of individual solar cells: 18,698.
INVEST FOR TOMORROW, ENSURE YOU HAVE RESERVES, IT’S A TURBULENT JOURNEY
Build while you Fly
Last night Pavlo and Bruce spoke about how it is very hard to build a business when you are busy with the day to day operations.
You can listen to the full show here and watch a summary of a recent presentation of Pavlo at Nedbank Business Accelerator breakfast in collaboration with Cape Talk.