Five more things for you to work on to be a successful entrepreneur.Define the right key metric that matters the most
- Energy and resources need to be channeled in the right direction to maximize the odds of success.
- Define the metric and specify the right ways to measure performance.
- Choose one primary metric and update it as the organization evolves into different maturity stages.
Key Performance Indicators (KPI’s) are one of the most over-used and little understood terms in business development and management. They are too often taken to mean any metric or data used to measure business performance. The role KPI’s play is much bigger and more important.
Accurately assess capital requirements
- Assess how much capital is required by running multiple scenarios; best, bad and worst.
- Know what type of business you’re in. If you want to get investors, understand the risks and effects on stakeholders.
If you raise money from friends and family, be realistic about how you communicate risks and anticipate the consequences of not meeting your financial objectives.
Use the right incentives
- Aim for the right balance based on the behaviors you would like to encourage.
- Incentives can create or destroy value, use them wisely.
- Think of all the unforeseen downsides it can generate and make sure the positives are greater than the negatives.
Have deep empathy
- Empathize with the people you interact with to build a profitable and sustainable business.
- Understand the world as it is, and not according to how you would like it to be.
- Listen to people; understand your customers by putting yourself in their shoes.
Experiment in stages
- Experiment: Try differentiating yourself from competitors and add value to your customers in a unique way.
- Learn: Understand the impact of your hypothesis and evaluate it objectively.
- Adjust: Refine your hypothesis based on the learning.
- Scale: Grow what works, and prune out what doesn’t.
- Ensure that you make the right decisions along the way while keeping in mind your long-term vision.
- Write a journal to introspect and perspective on how you are progressing and dealing with the challenges you face.
- Regularly think of your exit strategy. Do you plan to sell the company, pass it on to the next generation or go public?