The Money Show - Aurik Business Accelerator

Build a good partnership to build a successful business

Last night Pavlo and Bruce spoke about partnerships in business. So often these can make or break a small business. You can listen to the full show here.

So what are the benefits of the right partnership?

  • Shared risk
  • Two sets of eyes on the ball
  • Focus
  • Play your strengths
  • Double your resources and networks

So how should you approach finding a partner?

First, ask who your partner is. You'd be astounded at the number of clients who literally know nothing about their partner’s background, their approach to business, and their vision for the partnership. They rush into the relationship so quickly that they don’t even gather this fundamental knowledge about their partner.

Secondly, trust is essential. Talk is cheap. Do your research and check them out. Then understand their values. Know their approach to family because of time, how they view money because of investment direction, and what their purpose is because of vision.

And finally understand their skill set. These should ideally be different to yours. Every business has two main elements - promotion and delivery. Decide who will be accountable for which and who is best suited to which. It doesn't work if you both are doing the same or want to do the same and will be put pressure on the business and relationship.

So you think you've found the right partner? Pavlo suggests the following when entering into the partnership:

  • Date before you…marry Divorce is expensive and a waste of time, energy and potential.
  • Test for compatibility, capability, skill match
  • Structure the partnership Consider the following:
    • Roles and responsibilities
    • Delegation authorities
    • Contributions of resources
    • Rights to remunerations
    • Dissolution or exit strategy.
    • A buy-sell provisions
    • Non performance or delivery.
    • Non competing & confidentiality.
  • Sustain the partnership
  • Work harder than if you are on your own. You're accountable to someone other than yourself.
  • Ensure that your bookkeeping, accounting and compliance is in order.

Build a sales engine - not a sales team

Getting sales right is one of the most difficult tasks an entrepreneur faces, it is the ultimate testament of business understanding and sophistication.

Great salespeople don’t build a sustainable business - they do deals.

Last night Pavlo chatted about the need to build a "selling engine" in your business. You can listen to what he had to say 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?

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!

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

Fire your customer

There comes a point in every growing business that you reshape, restructure and reposition your business!

Bruce and Pavlo chatted last night about if there is ever a time when you need to fire a client. Listen to the full show here.

How to become agile

Last night on The Money Show Pavlo spoke about how tough every day in South Africa is at the moment.  If feels like being in a boxing ring.

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!

How to determine what your business is worth?

Last night Pavlo spoke about valuing your business. He'd attended an event with 250 entrepreneurs and when he asked who was building a business that will be sold, only five people put their hands up. Remember that 94.6% of businesses started, don't get sold.

How to manage personal and business change

Last night Pavlo and Bruce chatted about how to get better at dealing with change. Changes are happening at an alarming rate in SA. Business owners are now expected to make so many decisions and so fast. Often these decisions are not made since the environment is too demanding, the changes too sudden and there are too many variables all in play.

Entrepreneurs have to become “change fit” to outlast the road you have to run that will eventually build your business into the Asset that you want.  

How do you manage both yourself and your business within an ever-changing environment?

Personal Mastery

1. Look for it

Be present and watch the levers of change. Ask what this means for you? Be sure to look at both positive and negative impacts. This allows you to think, plan, consider and have options when change comes.

2. Don’t be alone

Whatever it is, someone has been through it or knows someone who has. On your own, you get stuck in your head and it’s impossible to see things differently after a while.

3. Be future forward in thinking

Focus your energy towards the things that you can control rather than what was

4. Be chilled

You will make mistakes in dealing with change. You will say things that you regret. You will realise that in hindsight… Be chilled with the fact that you will make these mistakes and that retrospectively, there would have been better options that the ones you took.

5. Always be a big thinker 

You have to anchor your thinking and actions into the future towards something.

6. Be positive

Acknowledge that this is simply a challenge and seek to find interesting, novel ways around it. The language you use matters enormously and the view you have of yourself matters equally.

 

Business Mastery

1. Build a customer facing business

This is a business that solves a problem for a group of customers who have that same problem

2. Build a simple business

Don’t try be everything to everybody

This is a business that is designed to solve problem

3. Build a system driven business

Systems control the customer experience. If this is the experience the customer wants to solve their problem. Your business will be supported by your customers as and when you have to change. They will lend you a kind ear.

4. Involve your core team

A business is made up of functions. Good systems delivering the function means you will have people who can operate the systems and deliver the function. Team leaders allow then for a layer of supervision. These supervision or management levels form your core team.

Change means a response from these areas of the business. Get the problems and challenges solved at that level.

This enables ownership, ownership enables action, action enables a response to change.

5. Generate data

Allows you to remove emotion and think rationally

 

Listen to the full podcast here

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.

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.

The business lifecycle (explained by looking at political parties)

Everything created goes through a lifecycle. In business it is called the business development lifecycle and its full of traps and opportunities. Understanding this can offer some compelling ideas, actions and momentum to building your business to the next level. Pavlo looked at the three leading political parties in these elections to explain the structure of the business development lifecycle. EFF represents start-ups, DA is going through the growth phase and the ANC are mature. The way that you deal with particular elements of how you build that business over that lifecycle is going to be different, read more below and listen to the full show here

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.

 

 

 

Understanding Risk in an Automating world

In this show Pavlo and Bruce chatted about how the world we are living in is changing dramatically. More and more is being automated. Listen to the full show here.

We are living in a world that is accelerating faster than most of us can keep up. As an entrepreneur and business owner, forewarned is forearmed.

Weekly chance to promote your business during the Small Business Focus on The Money Show (702 and Cape Talk)

Make sure you tune in to The Money Show on Radio 702 and Cape Talk every Thursday evening at 19h30 when presenter Bruce Whitfield talks to CEO of Aurik Pavlo Phitidis about entrepreneurship in South Africa in a feature called Small Business Focus.

Business owners can share their experiences relating to the topic under discussion. Call +27 (0)11-883-0702 shortly before 19h30 on Thursdays only.

It’s also a chance to punt your business to over one million listeners.