4 Keys to the Millionaire's Club
by Susan Wilson Solovic
Here is a brief outline of the four strategic keys to growth that I explore at length in "The Girls' Guide to Building a Million-Dollar Business." The key areas for growing your business are:
1. MISSION: Creating the mission and vision of your company.
2. MANAGEMENT: Developing a scalable business model with the right team.
3. MARKETING: Creating unique marketing strategies.
4. MONEY: Obtaining the necessary funding.
Transitioning your business from a startup to a growing enterprise requires the development of more sophisticated operating procedures. As the owner of a startup, you are a hands-on operator. You make the sales calls, fulfill the contracts, send out invoices, make collection calls, answer the phone, and empty the wastebaskets. You are the business. Entrepreneurs thrive on juggling a lot of balls in the air -- it's exciting. They enjoy having total control over every aspect of the business so they can do it exactly the way they want to do it.
A growing organization can't "manage by the seat of its pants." As you build your million-dollar business, your organization needs to develop an infrastructure with formal policies, procedures, and processes. I'm not suggesting you create an inflexible corporate bureaucracy, but you need to make sure you have some structure in place so your business won't become a house of cards.
1) Define The Vision Of Your Company
A vision statement is sometimes referred to as a picture of your company in the future but it's really so much more than that. Your vision statement is your dream -- your inspiration, the framework for all your strategic planning.
To create the vision for your business, step away from and take a fresh look at your company. What's happening in the world today? What are the market trends? This is your chance to gaze into your crystal ball and see into the future. Imagine there aren't any constraints such as money, people or resources. What direction would you take? What will your business look like? The vision is all about what it is you are going to do -- not how you are going to do it. It's not about the execution.
Don't rob yourself of the time you need to create your vision. Once you have defined your vision, your next challenge as a leader is to articulate your vision to your team and get them to embrace it, as well. Everyone within your organization needs to understand where the company is heading and how he or she can help.
2) Develop The Right Team
One of the most difficult transitions for growing business is morphing from a fledging startup to a more established, mature organization. Many entrepreneurs who want to grow their firms stumble because they can't adjust their business operations appropriately. I liken it to going through puberty. It can be awkward, confusing, and frustrating, but it's part of growing up.
One of the biggest areas of change comes in the management of the company. Processes, policies, and procedures must be implemented to ensure success. You may need to make personnel adjustments. One of the first changes that you, as the CEO, need to make is to let go so you can work on the business, not in the business.
~ Let Go to Grow ~
If you are like most entrepreneurs, you think no one in your organization can do the job as well as you can. If you micromanage, you get bogged down in too many minutiae to execute the strategic vision you have crafted. Your time gets eaten away. The business is driving you, instead of you driving your business. You should put together a crackerjack team of individuals and let them do their thing. Get out of their way. It's time to let go and learn to work on your business, not in the business.
In many respects, delegation is one of the most critical skills you need to achieve personal and professional success as an entrepreneur. There is, however, more to delegation then assigning projects and tasks. It's important to be able to wisely choose which responsibilities to delegate. Take a look at your current workflow and decide what responsibilities to give and which to retain. Sometimes an outside consultant or executive coach can help you make your selections, because they can see things more objectively.
3) Implement Key Marketing Strategies
Nothing happens until you sell something. So it should go without saying that every business needs a marketing plan. There are great resources that can help you draft a solid marketing plan. Check some of the resources listed in Chapter 10 of this book.
Did you know the average American mentions specific brands fifty-six times a week in conversation, according to market researcher Keller Fay Group? Your mission -- should you choose to accept it -- is to make sure one of those brands is yours. In order to develop your company's brand, go back to your vision, mission, and value statements. These should be the foundation of your marketing plan, because they state where you are headed, what your core business is, and what value you deliver to your customers and employees.
Then take a long hard look at your current branding. Does it project the image you want for your business? Your brand should be designed to create the buzz that will get your business noticed. A well-crafted brand often becomes synonymous with the product or service offering. Think Starbucks -- and you think high-end, quality coffee drinks. Think Midas, and you automatically think mufflers. Kleenex is the term often used for a facial tissue.
Your brand is more than your logo, business card, and letterhead. It penetrates every aspect of your company, from your office location, to how your phone is answered, to how you present yourself, to the final delivery of your product or service. You can spend thousands of dollars on a marketing campaign touting your customer service, but consistently rude employees will defeat your efforts. Everywhere you go, everything you do, and everything your employees do, says something about your company and its brand.
~ Cultivate and Connect with Customers and Clients ~
It's easier and less costly to keep an existing client than it is to get a new one. Million-dollar women business owners know about 80 percent of their business comes from 20 percent of their customers. So cultivating and connecting with customers and clients to build a loyal customer base is imperative for a growing business.
Develop true relationships with your customers. Know more about them than just their name and title. Learn about their families and their personal interests. Beth Bronfman, managing partner of Leiberman Bronfman Lubalin, a New York-based, full service advertising agency, believes that you must make your client your partner and always maintain a trusting relationship.
~ Enjoy the Rewards of Networking ~
A strong network is one of the most valuable assets you can have for your business success. A strong network can help you open doors to new business opportunities, find dynamite employees, identify professional resources, and provide advice and assistance. I regularly receive e-mails from people in my network looking for a resource or requesting assistance in finding a new employee. We know from research that women owners of million-dollar firms are well-networked. The Center for Women's Business Research shows that these women are more likely to be members of professional groups or associations than other women business owners.
Keep in mind, the best and easiest way to acquire new customers is by word of mouth. Networking can help you create an army of unpaid marketers for your firm.
4) Fund Your Business Growth
Financial risk is a reality of being in business. Women who own the larger, faster-growing businesses are willing to take substantial or above-average financial risks to ensure the success of their businesses, according to research from the Center for Women's Business Research.
In addition to being comfortable with financial risk, women-owned businesses that reach the million-dollar threshold also apply sophisticated management practices on a regular basis, especially the use of financial reports to manage cash flow and expenses. If you aren't educated in certain aspects of management -- get the education you need. A willingness to learn must accompany your willingness to grow.
As you grow your business, it's easy to undervalue your product or service because you are anxious to get the business. Pricing at fair market value is critical if you want to look credible. Don't be fooled by assuming the business will always go to the lowest bidder. In fact, if you establish your firm as a quality, value-added provider, you shouldn't have to sell based on price alone.
Finally, if you are seeking financing for your business growth, an in-depth knowledge of your financial statements is critical. Potential financiers expect you to be able to provide an overview of your company's financials and defend your growth assumptions. This isn't something you can hand off to your bookkeeper or accountant. As the CEO, you are expected to be fully aware of the financial health of your firm.
Every business needs money to grow. But the question becomes, where are you going to get the money you need? The answer is: It depends. Funding for business growth comes from a variety of sources. Which ones you select depends on your level of comfort, and many women are not comfortable with finding funding.
Most women-owned firms start off funding their businesses with personal assets, credit card debt, or loans from friends and family. Typically, start-up capital is about $5,000 to $10,000.
According to research from the Center for Women's Business Research, women business owners' use of capital -- both credit and equity -- lags behind men. Women business owners are more likely than men business owners to use personal funds or business income to fuel growth. Nearly 60 percent of NAWBO members (National Association of Women Business Owners) list business earnings as a preferred source of capital. Using personal funds or business earnings for growth is okay as long as you choose those methods based on an overview of your available options. But selecting that route because of an unfamiliarity of financing options isn't good. You owe it to yourself, your business and your employees to explore what is available.
If you get turned down, don't give up. Sometimes you must hear a lot of no's to get to a yes.
Whatever type of financing you are seeking, in most cases it's not going to be fast or easy. The best advice I can give is this: Be patient, Be prepared, and Be persistent.
Labels: 4 Keys to the Millionaire's Club, excerpt by susan wilson solovic, women entrepreneur's club
