3 STEPS FOR A MORE PROFITABLE BUSINESS IN 2017

Some months ago, I shared an inspiring post by Mike Kostis, an entrepreneur who successfully led his third-generation family business through the worst of Michigan’s economic downturn. He is a fellow Certified EOS® Implementer and a contributor to the Entrepreneur Operating System (EOS) Blog.

He has launched 2017 with an article about the importance of identifying and documenting your business’ core processes.  These are excerpts from his advice:

1. Identify Your Company’s Core Processes

Your core processes are your WAY of doing business. Every organization has a handful of core processes that make the business run.

2. Document Each Core Process

Document your core processes using a 20/80 approach: just document the essential 20% that will give you 80% of the results. This isn’t a detailed training manual—think high-level Cliff’s Notes. Each process should be between 1-10 pages (think checklists or bullet points).

3. Make Your Processes Followed By All

Everyone in your organization needs to understand your core processes, and they all need to be following them.

Read his article to learn how to successfully implement these steps. And good luck for a successful 2017!

10 BOOKS EVERY ENTREPRENEUR SHOULD READ IN 2017

Polina Marinova, the deputy editor of Fortune Venture, was inspired by Bill Gates’ release of his favorite books of 2016 to compile a list of some of the best-selling business books of the year. She recommends these “10 must-reads that we think have the potential to transform your business and take it to the next level.”

Shoe Dog by Phil Knight

A Bill Gates favorite, Shoe Dog offers an inside look at Phil Knight’s entrepreneurial journey and how he built his startup Nike into the global brand it is today.

Tools of Titans by Tim Ferriss

In his latest book, entrepreneur and strategist Tim Ferriss shares the productivity secrets of the more than 200 “world-class performers” he has interviewed on his podcast.

The Power of Broke by Daymond John

Shark Tank star and Fubu founder Daymond John explains that starting a business with limited resources is a competitive advantage, not a liability.

The Code of the Extraordinary Mind by Vishen Lakhiani

What if everything you thought about love, work, and life is wrong? Vishen Lakhiani, founder of MindValley, challenges your most entrenched beliefs in an effort to help you redefine the meaning of personal success.

Disrupted by Dan Lyons

This is a messy, tell-all account of what happens when a seasoned journalist from an established news magazine takes a job at a software marketing startup. He chronicles his time at Hubspot where he encountered “devilish angel investors, fad-chasing venture capitalists, entrepreneurs and ‘wantrapreneurs.’”

Originals by Adam Grant

Author and professor Adam Grant examines how people can reject conformity and improve the status quo by generative creative, original ideas.

Hustle by Neil Patel, Patrick Vlaskovits, and Jonas Koffler

This New York Times bestseller guides readers through the process of “breaking free from the drudgery” in their daily lives and turning potential into opportunity.

Grit by Angela Duckworth

Psychologist Angela Duckworth claims that success is the result of passion and persistence, not talent and luck.

Building the Internet of Things by Maciej Kranz

This is a practical handbook for entrepreneurs who are focused on the business implications of the Internet of Things.

Thinking, Fast and Slow by Daniel Kahneman

Renowned psychologist Daniel Kahneman does a deep dive analysis of the two cognitive systems that shape the judgments and decisions we make in our everyday lives.

Check out her other stories at Fortune Venture. (“I Know How to Hustle’: The Jeezy Guide to Business Success”, is a stand-out.)

CHECKLIST FOR NEGOTIATING A BUSINESS DEAL

Negotiating is an integral aspect of business operations. Anita Campbell, the founder, CEO and publisher of Small Business Trends, has extensive experience in the practice. Her checklist for negotiating a business deal includes this step. It is one worth emphasizing:

Weed Out Tire Kickers

“We’ve all encountered them at one time or another — the tire kickers. These are people comparing prices or “seeing what’s out there.” They will pump you for information but have no intention of buying from you.

Don’t waste your time trying to negotiate with anyone not serious.

To separate tire kickers from serious parties, ask how soon they plan to purchase, what specific needs they have, and other probing questions. Try to get them to do something that takes a bit of effort, such as setting up a face-to-face meeting, or filling out a short questionnaire, or confirming your notes from an initial phone discussion. Tire kickers usually melt away if called on to get specific or commit to anything.”

Read her full article here. And bookmark her organization’s site, Small Business Trends. It is full of free, helpful guides for entrepreneurs.

SMALL BUSINESS RESOLUTIONS TO KEEP IN 2017

Good business advice is important to help entrepreneurs stay focused and thrive. Carbonite's Norman Guadagno recently shared six New Year's resolutions that will help your business stay strong, relevant and competitive in 2017.

These three especially resonate:

Fight ransomware by backing up your data

A recent Ponemon Institute survey of 618 IT workers at small businesses revealed that about half had been hit with ransomware, and half of those victims were forced to pay the ransom — many times because they didn’t have a clean backup copy of their relevant customer data or business files. This year, resolve to invest in a cloud backup solution because that’s the only way to be certain you’ll get your data back if the business falls victim to ransomware or any other type of disaster.

Three words: Specialize, specialize, specialize

Face it: There’s a lot of competition out there — a lot of noise in the marketplace. A great way to stand out from the pack is to stop trying to serve everyone’s needs and instead focus on the key areas where your business truly shines.

Get on top of your financial situation and stay there

Resolve to spend more time digging into the minutia of your business’s finances because you may be surprised at how many opportunities you find to slash costs, increase efficiency and grow profit margins. Choose one area to focus on each month and you’ll be very happy with the results.

Read his full article here and follow him on Twitter @ThinkTone.

IS ENTREPRENEURSHIP FOR YOU?

Many people dream of being their own boss…and owning their own company. If that is one of your goals, the Small Business Administration recommends you assess if you have these characteristics and skills commonly associated with successful entrepreneurs:

Comfortable with taking risks: Do you avoid uncertainty in life at all costs? If yes, then entrepreneurship may not be the best fit for you. But if you enjoy the thrill of taking calculated risks, it may be.

Independent: Entrepreneurs have to make a lot of decisions on their own. If you find you can trust your instincts — and you’re not afraid of rejection every now and then — you could be on your way to being an entrepreneur.

Persuasive: If you enjoy public speaking, engage new people with ease and find you make compelling arguments grounded in facts, it’s likely you’re poised to make your idea succeed.

Able to negotiate: As a small business owner, you will need to negotiate everything from leases to contract terms to rates. Polished negotiation skills will help you save money and keep your business running smoothly.

Creative: Are you able to think of new ideas? Can you imagine new ways to solve problems? If you have insights on how to take advantage of new opportunities, entrepreneurship may be a good fit.

Supported by others: Before you start a business, it’s important to have a strong support system in place. If you do not have a support network of people to help you, consider finding a business mentor. A business mentor is someone who is experienced, successful and willing to provide advice and guidance.

The SBA has created these 20 questions to help ensure you’ve thought about the right financial and business details. 

DO YOU HAVE TOO MANY BUSINESS GOALS?

Worse, are you overwhelmed by your business goals?

If so, Jeff Whittle’s observations will help clarify your focus. His advice is to dumb down your business goals…literally. This excerpt from his recent contribution to the EOSWorldwide blog explains more:

“Simplicity is the antidote to complexity, and it isn’t easy to achieve. When you find yourself drowning in a plate of unachieved goals, remember the truism attributed to Albert Einstein – if you can’t explain it simply, you don’t understand it well enough.

I can promise that your business will never, ever suffer from a lack of things to be done. What it will suffer from, however, is a lack of focus and execution on the very critical few things that – if achieved – will have the biggest impact on your business. Identifying those critical few things, and then staying focused on their achievement, is the difference between great companies and floundering ones.

Here’s the key question: can you (and everyone else on your team) simply state the 3-5 most important things that you must achieve this quarter? If you can’t, you’re carrying around that plate of goals and action items that almost certainly will not get achieved for the simple reason that there are too many of them for any of them to be true priorities. Until you simplify the goals of any period down to a critical few, you will remain stuck, your tires helplessly spinning in the muck of business complexity.”

Read his full article: Too Many Business Goals Is a Very Bad Thing.

IS YOUR EMPLOYEE READY FOR A PROMOTION?

Most employees want promotions sooner, rather than later. We can all relate to that sense of urgency.

But your employee could want a promotion for reasons that could make him ineffective, warns expert Don Tinney. According to him, those reasons include:

·         Money driven—seeking the pay increase

·         Control driven—wanting to have control over others

·         Ego driven—wanting the recognition or status of the job title

·         Entitlement driven—believing he deserves it

·         Socially driven—wanting to work with friends

·         Ignorance—not understanding the entire scope of the seat

“Filling a seat simply because someone says they want it can be dangerous for many reasons,” he advises on a recent AOS Worldwide blog post. “Look and listen beyond those initial expressions of interest for indicators of the true want.”

Read his full article here: Does Your Employee Really Want That Job Promotion?