marketing

From Entrepreneurial Management to Professional Management

Posted by the7stages on August 29, 2013
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Becoming an entrepreneur is a dream. An entrepreneur has big ideas, with this dream comes the need for a lot of dedication, hard work and luck to turn that dream into a successful business. I t can quickly become a nightmare if the management structure is not established to manage the growth of your business.
The time commitment for managing the business will soon become too much of a burden for the Founder to handle. There are two management ‘jobs’ that need to be addressed. Managing the core operations (order fulfillment, and all other activities related to deliverable), and non-core operations (support, administration, sales and marketing, strategic planning, HR, compliance and finance) When transitioning from an entrepreneurial management to professional management, we are typically speaking of non-core operations. Entrepreneurs are very typically savvy at the core operations, so the first place to begin contemplating Professional Management is in the non-core operational side of the business. Cost structure, problem solving, strategy, operational and contingency planning along with detailed oriented goals are a few of many bullet points you will need to think of. At some point during the entrepreneurial management stage, the company will need to grow and mature, this is when the Founder will need to face a decision – should this company remain as-is (an entrepreneurial dream) or continue to the next step; how to manage the company.
As an entrepreneur you will need to contemplate if you should step back and hand over “the wheels” (company) to experienced managerial professionals or should you as the Founder stay and attempt to implement a structured management style. Once your business has grown to the point that your time is spread thin, and the non-core management activities are being neglected (or not performing as they should be), it is time to make that decision.
So how do you make this change? – And what could be some of the challenges that the entrepreneurial manager (that would be you…?) will face?:
1. Change in leadership style. Management is the talent of getting things done through OTHER people, resources and skills. Therefore, your professional manager needs to possess these attributes. Also, you will need to allow the manager to express their own personal style so they can be effective in their job. The manager will most likely have a style that is not exactly the same as yours. Bite your tongue and let them do their job! (No micro-managing here).

2. In-house or outsource? Hiring a professional manager as an employee is a good option if you have the financial resources to take on the financial responsibilities of an employee (payroll taxes, health benefits, vacation time, etc.). Figure 1.5 their gross salary as your financial commitment. Outsourcing to a firm that provides such professional management is also a viable way to secure the professional management services you require, without the overheads that a salaried employee would require.

3. Professional management will be cash flow and profit oriented. They will oversee the sales and marketing functions so you can focus on delivering an even higher quality product or service to your customers

Transitioning is a big (and necessary step). This is a decision that should not be taken lightly. Please contact us a CarlGould@CMTmentors.com, and receive an analysis for what type of management would work best for you.

Carl Gould is a business strategist, and growth expert. He has written 5 books in the area of creating business success, and is the co-host of the weekly radio program, ‘Quit and Get Rich’ (www.gteamradio.com). Carl and his team of experts advise companies and organizations to grow to the next level. What is the next level for you?

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Focus Groups Can Improve Your Marketing Efforts

Posted by Carl Gould on September 07, 2010
7 Stage Success with Carl L Gould, marketing / No Comments

Here are my responses to an on-line interview that I gave. Enjoy!

Q: What can small companies do to set up focus groups on their own to save money? 

CLG: Reach out to your existing customer base. They are a great source of valuable information as to whether or not a new product or service would be worthwhile. Also, you can query those who have rejected your product or service as they can provide valuable information as to the improvement of your products and services.

Q: How do you develop questions?

CLG: Here is a tip, take all of the complaints that you have received from your company from customers and turn them into questions. For example, you may have received a question, ‘Your customer service representative was not very friendly.” You can reformat that statement into the following questions, “How can we improve the friendliness of our customer service representatives?”

Q: How does one prepare and then make the most of the results?

CLG: You can make the most of the results by documenting each of the responses from your focus groups using type written responses, audio and video. For example Dominos Pizza has a currently running add campaign where they took unhappy customers, video tapped their complaints about their pizza, and then systematically worked to make those individuals happy. It is a very compelling add campaign and has helped increase the perceived quality of their pizza. Just as Dominos did, I would suggest you publicize the results!

Q: Is it even worth it, or is it best to hire a firm to help?

CLG: You can do either or both. I would suggest that you first try it on your own. It shows tremendous good faith and good will when a company directly contacts its customers and asks them for feedback.  They will appreciate it and you will be a better company for it.

Carl L Gould is the president and Chief DISCoverY Officer CMT International, LLC (www.CarlGould.com), the farthest-reaching business mentoring organization in the world. Carl’s unique approach to executive coaching, business mentoring and performance training helps his clients achieve results worldwide.  His upcoming book, The 7 Stages of Small Business Success – From Startup to 7 Figures in Three Years or Less, will provide entrepreneurs and business owners a step-by-step formula to taking their businesses to the next level.

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