i’ve got an idea, now what: a recipe for success
DESCRIPTION
Curtis Nelson, serial entrepreneur and President and CEO of the Entrepreneurial Development Center (EDC) in Cedar Rapids will address one of the most fundamental question in starting a business: How To Start. This session will be based on his book The Recipe for Business Success. A recipe for success, whether business or culinary, requires a finite set of ingredients and specific execution. Each ingredient and amount is equally important as is their related quality, and all must be matched to the outcome desired. Also essential are the proper guidance, the talent to execute, and the required resources. Straying from the simplest of recipes creates results that range from mediocre to catastrophic. If you run your business “off-recipe,” success will be reduced with performance that is lower than your potential. If you execute a well-balanced business “Recipe,” success will be easier and net results will be greater.TRANSCRIPT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Ingredients & ExecutionCurtis R. Nelson
SM
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Another Speaker …
• Who’s presenting?
• Who’s engaging?
• What do you want?
• What can you take away?
• Your challenge
INTRODUCTION
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
INTRODUCTION
“Year 2000”
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
“It’s like baking a cake...”
INTRODUCTION
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
INTRODUCTION
In the culinary world great results come from a great
recipe!
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
INTRODUCTION
A great recipe includes:
Ingredients & Execution
Each amount and quality of equal value!
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Results
Quality results come from a balance of:– Quality ingredients– Quality execution
INTRODUCTION
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Results
Quality results come from a balance of:– Quality ingredients– Quality execution
Poor results come from:– Missing or poor ingredients– Missing or poor execution
INTRODUCTION
The further “off-recipe” you get – the worse the results!
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Optimal Business Recipe
Ingredients:– Strategic Fit– Business Plan
Execution:– Talent– Leadership– Resources
INTRODUCTION
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Strategic Fit
Page 5
Why you should get into business
Why you should stay in business
Foundational component
Critical ingredient for success
STRATEGIC FIT
Quality ingredients require …
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Wrong Reasons
Looks like fun …
Can’t work for anyone else…
I’ve invented a cool product…
I want to be my own boss …
We’ve always been in business…
Reasons to start planning – not execute!STRATEGIC FIT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Right Reason
Opportunity exists to:– Provide a product or service– Customers will buy from YOU– Adequate volumes– Profitable margins
What do you need to know?
STRATEGIC FIT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Strategic Fit
Valid need:– How intense is the need?– Will they buy yours – is your baby prettier?– Can you get to market?
Intensity of NeedIntensity of Need
STRATEGIC FIT
Sal
es &
Mar
keti
ng
Sal
es &
Mar
keti
ng
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Strategic Fit
Valid need
Valid opportunity:– Identifiable target market:
• Demographics, Geographics• Psychographics, Behaviors*• Number and location
– Ability to compete:• Differentiate, protect and sustain
STRATEGIC FIT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Strategic Fit
Valid need
Valid opportunity:
Valid product:– Benefits needed to differentiate– Able to be produced
STRATEGIC FIT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Strategic Fit
Valid need
Valid opportunity
Valid product
Valid price:– Priced to sell and make money
STRATEGIC FIT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Strategic Fit
Valid need
Valid opportunity
Valid product
Valid price
Valid operation:– You can produce it effectively?– You can support it?
STRATEGIC FIT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Strategic Fit
Valid need
Valid opportunity
Valid product
Valid price
Valid operation
Valid environment:– Influences out of your control…
STRATEGIC FIT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Strategic Fit
Valid need
Valid opportunity
Valid product
Valid price
Valid operation
Valid environment
VALID REASON TO BE IN BUSINESS
STRATEGIC FIT
Quality ingredients require …
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Business Plan
Provides focus & direction:– Mission:
• What you want to achieve• How you want to be measured
– Elevator pitch
Quality ingredients require …
BUSINESS PLAN
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Business Plan
Provides focus & direction
Identifies your brand & culture:– Mission should identify your brand– Principles will create your culture
• Foundational beliefs that define• Values, ethics & operational characteristics• Guide your companies action…
– Culture will create productivity• 50 / 150
BUSINESS PLAN
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Business Plan
Provides focus & direction
Identifies your brand & culture
Outlines objectives & goals:– What you want to attain– When you will attain them
BUSINESS PLAN
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Business Plan
Provides focus & direction
Identifies your brand & culture
Outlines goals & objectives
Clarifies strategies:– Marketing*– Operations
BootsBUSINESS PLAN
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Business Plan
Provides focus & direction
Identifies your brand & culture
Outlines goals & objectives
Clarifies strategies
Quantifies resource requirements:– Financial, human, technical– Information, environment
BUSINESS PLAN
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Business Plan
Provides focus & direction
Identifies your brand & culture
Outlines goals & objectives
Clarifies strategies
Quantifies resource requirements
Makes actions accountable:– What, who and when…
BUSINESS PLAN
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Business Plan
Increases your odds of success!
Quality ingredients require …
BUSINESS PLAN
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Quality Team
Necessary disciplines
Quality execution requires …
TALENT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Quality Team
Necessary disciplines
Applicable experience & capabilities
TALENT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Quality Team
Necessary disciplines
Applicable experience & capabilities
Balance
TALENT
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
The ability to build, develop, and motivate a team of diverse,
talented individuals to effectively attain goals &
objectives.
Leadership
LEADERSHIP
Quality execution requires …
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Managers vs Leaders
Managers administer and maintain
Leaders innovate and develop
Managers rely on processes and controls
Leaders rely on people and trust
Managers seek compliance / guide in own image
Leaders seek results through collective capabilities
Managers do things right
Leaders do the right thing
Fortune Magazine – roughly 1988
LEADERSHIP
(Bosses)
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Leaders
Provide passion, vision, and focus:– See where they want to go & set direction– Communicate clearly, consistently, & often– Keep the team on focus / on track– Reduce roadblocks – Focus on strategy
LEADERSHIP
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Leaders Know
People are the most important resource:– People create the best IP / differentiation– Work enjoyment = company performance– People are individuals*– Put their trust in people over processes– Celebrate mistakes*
LEADERSHIP
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Leaders Know
Customers are the company’s lifeblood:– They listen to their customers regularly– Support their customers with every resource– They build a company culture that rewards
unwavering support of their customers
LEADERSHIP
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Leaders
Surround themselves with talent:– Understand their own weaknesses– Listen to & seek challenge from their team– Know their success is in the hands of their team
• “winning from the dugout”
LEADERSHIP
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Company principles and resulting culture mean
everything!
Leaders Know
LEADERSHIP
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
“I came to see, in my time at IBM, that culture isn’t just one aspect of the game – it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value”
LEADERSHIP
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Resources
Tools needed to execute effectively:– Technical– Environmental– Human– Informational– Financial
Quality execution requires …
RESOURCES
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Resources
Financial resources:– Debt:
• Bank• Government• Investor
– Equity:• Love money• Angels• Angel funds• Venture funds
Quality execution requires …
RESOURCES
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Recipe Report Card
Proper Ingredients:– Strategic Fit– Business Plan
Proper Execution:– Talent– leadership– Resources
SUMMARY
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Business Results
Quality results come from a balance of:– Quality ingredients– Quality execution
INTRODUCTION
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Business Results
Quality results come from a balance of:– Quality ingredients– Quality execution
Poor results come from:– Missing or poor ingredients– Missing or poor execution
INTRODUCTION
The further “off-recipe” you get – the worse the results!
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Your Challenge
Taking an honest look at your Recipe and doing something about the
opportunities identified!
INTRODUCTION
For the entire content – you may purchase the book at www.recipeforbusinesssuccess.com
© 2010 CRN LLC - NOT FOR DUPLICATION OR OTHER COMMERCIAL USE - ALL RIGHTS RESERVED
Thank YouCurtis R. Nelson
SM