Posts Tagged ‘Competitors’

7 Lies Entrepreneurs Tell Themselves

Posted on by Barry Moltz

Stocksy_txpd72b69c8tH5000_Small_100354In order to stay positive, entrepreneurs need to lie to themselves a lot. Unfortunately, this can get them in trouble when they have improbable expectations and surprising outcomes. Here are the 7 biggest lies and the truth about what to do instead:

  1. Sales will be better next month. Many entrepreneurs believe that sales will always increase in the future. They reason that with more revenue, there will be more profit. The truth is that they don't change their sales and marketing efforts to give their company a better chance actually increasing sales. To boost revenue, companies need to be there when customers want to buy. Only a systematic sales and marketing effort will accomplish this.
  2. The next big customer (or product or employee) will change their company forever. The belief is that the next big break will take their company to the next level. The truth is that progress in companies typically build slowly and success doesn't usually have a tipping point. Think about the essentially building blocks that will grow the company step by step.
  3. Big money means taking big risks. They read the urban folklore of the few who took big risks and made billions. The truth is that most people fail. The success in business comes from taking small steps, evaluating the results, and taking the next action.
  4. Competitors are slow. Many entrepreneurs think that their competitors are not innovative and can't react quickly. Tell that to Blockbuster and Borders. The truth is that there will always be a competitor thinking up a better mousetrap. The entrepreneur needs to know what their competitive advantage will be when that day comes.
  5. Keeping the financials in their head. Many entrepreneurs believe that they do not need to review their company financial statements. The truth is that most of the time  their expectations do not match what is actually going on. This is why it's important to read and understand these statements every month.
  6. Getting paid last in their business. They reason that they are investing in their company and this is how they justify living off of savings while running a start up. The truth is that if an entrepreneur does not draw a livable wage from their company, they have a hobby, not a business. Always include the owner's salary in the monthly budget.
  7. Being busy means being productive. Many entrepreneurs believe if they are busy at work then they must be adding to the value of the company. The truth is that with all the distractions and interruptions that can enter an entrepreneur's daily life, they need to be very disciplined that they focus on projects that will make a deep impact on the company. Pick the two things that need to get done today and complete them before starting any other task.

What lies do you tell yourself?  

How to Win a Business Plan Competition

Want to win money at a business plan competition?  There is plenty of cash out there in 2014, but it takes team preparation since the rules for contests differ and can be quirky. However, they can be a viable source of funding your business.

Here is what you need to do to win:

Management experience: Tell why your team is uniquely qualified to run this business. An experienced management team always wins over a great idea since success is about execution. For example, explain which members of your team have built a company before and have industry experience.

Market size: Describe the true addressable market of your company. Be as specific as possible. For example, a target market is not toys, but rather educational toys for 0-18 month olds.

Describe the problem your solution solves: Customers only buy when they are in pain. What pain do you solve and for whom? Do they have the money to buy the product? For example, the solutions that Nextiva sells allow companies to reliably communicate with their customers.

Proven concept or just a prototype: Showcase your paying customers since they are the best example that there is really a need for your product.

Strategic alliances: It is difficult for a small company to do it alone. Which larger brands can you get help from? For example, if your product is distributed by Wal-Mart, this is a big advantage.

Sustainable competitive advantage: If your company is successful and a richer competitor comes into the market, what will be your competitive advantage? For example, this could be a patent, trade secret, or distribution rights.

Use of the prize money: Judges want to know how the money will be used and make a difference in your company.

Get the math right: Financial projections are usually critical in any competition. Making arithmetic errors or having projections that are too optimistic can be fatal.

Make it engaging: Make the written entry or presentation engaging. Bored judges stop reading or paying attention. Anticipate the most likely questions, but be ready to improvise when things go wrong.

Rally your tribe: Many contests have a public voting element. Get everyone that your company is connected with to vote for your business.

Winning isn’t everything. Participating in these contests can bring valuable connections that can exceed the value of the cash prize.

Apply to win The 2014 Rule Breaker Awards sponsored by Nextiva, Microsoft, Skype, and Constant Contact. 


Mondays with Mike: Phone Tag

Mike Michalowicz, author of "The Pumpkin Plan", shares a clever way to bring in new business by utilizing former competitors' advertisements.

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