Steps to Starting Your New Enterprise

Steps to Starting Your New Enterprise

Perhaps you have always had a dream to start your own business. You have a great idea and believe you can turn that idea into a marketable and creative company. The Small Business Administration (SBA) states that 30% of new businesses fail in the first year, and approximately 50% fail in the first five years. Starting a new business is not easy. It takes time and tenacity to work through the steps to get the right start. Listed below are some necessary steps when starting your new company.

Complete Market Research

 The top reason a new business closes is the failure to investigate the market potential of what you are selling. Researching market demand and competition on the Internet is a start. Look at target customers, pricing, and the offerings by price point. Complete a market survey using live participants with a research company or an online survey.  Establish if the consumer responds to your product or service and quantify the response. Look at social media sites and go out and visit similar local businesses before completely jumping in to determine if you have enough funds and infrastructure to take the product nationwide.

Fund your business

 Funding your business may not be as easy or inexpensive as you might think. Determine how you will finance your business and identify the interest rate you are able to obtain. Will you use your own funds or credit line, or will you take on an investor? Let’s say you suddenly inherit $10,000 and decide that is enough to kick off your operation. You start up the corporation without any plans on how you will continue to fund it until you make money and “surprise” you fail in six-months.

Starting a new enterprise requires a reliable and conservative business plan. In the blueprint, you will define realistic goals for your business, and identify how your company will successfully achieve those goals. You will also identify possible problems and create anticipated solutions. Development of such a plan can help you figure out if there is a need for the new enterprise through research and surveys. You will also need to identify the costs and inputs required to start up and run the company and outline strategies and timelines that need to be implemented and met. Development of this roadmap will give you an understand if $10,000 is enough to keep the company going, or if you need to find additional funding. Important Note: Don’t expect to get paid in the first year. Do you have a source of income until you start making money?

Write your business plan

 Creating an accurate business plan will help you understand the market and provide you the facts needed to sell the idea to those who finance your program. You will need to put together a comprehensive five-year financial plan that shows revenue growth and a return on your investment to make your concept for the business a reality.

Your business plan begins with the market demand for the product and or service. You need to understand what a realistic revenue input is in before developing a plan for expenses. Be sure to brainstorm all the costs for a start-up to understand your financial needs to begin operating.  Next, consider ongoing costs and place them in a separate category. It would be most helpful to have a CPA build the financial portion of your business plan.

Rigidity

Often new owners build a plan, establish their business, gain an initial customer base, and begin to become complacent. After all, they have been working many hours and things are looking brighter. Do not be disillusioned. Business changes rapidly and you need to change with it. Being on top of critical trends will allow you lots of time to adjust your strategy so that you can remain successful. Think of your business plan as a living document – one that changes as your operation changes.

Pick your business location

Location, location, location is everything if your business relies on foot traffic. Just as important is your Internet location. People shop, search, and research online for everything these days. So, if the need is already there, the virtual ability and visibility of your business is crucial.  Will you work from home or have a retail space? Remember it is all about location so be sure to pick the right area whether it be retail or web.

Select your business name

Caution: Do not try to be too cute with your business name. You want the name of your company to reflect what your operation is all about. Have a business attorney validate that the name of your business is not already taken. After that research is completed and you are sure you want this name, ask your attorney to trademark your business identity so no one else can use the name when your business takes off.

Legal Requirements

You will need an attorney to help you establish your small business. There are several elements that need to be completed. You will need to create a business structure and apply for a Federal and State ID and business licenses. You will need an EIN (issued by the IRS) to open a business account.

Business Structures

  • A Limited Liability Company (LLC) is a corporate structure in the United States that limits the owner’s liability for the company’s debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. An LLC is the least complicated business structure and a good place to start.
  • If you wish to raise capital and offer shares in the company as part of the business plan, you may need to start a corporation or an INC. A corporation is defined as a form of business operation that declares the business as s separate legal entity guided by a group of officers known as a board of directors. A corporate structure is the most advantageous way to start a business because the corporation exists as a separate entity.
  • Doing Business As or a DBA is a legal term meaning that the name under which the business is conducted and presented to the world is not the legal name of the person or persons owning and being responsible for the operation.

Register your business

 Register your company with the Federal and State governments and obtain an EIN number (similar to a Social Security number but for the business) to file tax returns, obtain licenses, permits and open a business bank account. An attorney should be able to guide you through these steps.

Apply for licenses and permits

Various licenses and permits are required to operate a business. These requirements vary by Federal, State, and County Laws. Use an attorney to understand what is needed to run your new business.

Open a business bank account

Now you are ready. Go to several banks to determine the optimal terms and conditions for maintaining a bank account and accepting credit card payments. You will pay a fee for accepting credit card payments of 2% to 4% until you can prove that you take care of your customers. Shop around for the lowest fees.

Your business has been growing for the past year. You now think it is time to expand. Before you do so remember the steps you took to get started. The expansion should follow a similar path. Complete your market research, update your business plan, obtain feedback from your customers and shareholders. Too little research and expanding too fast can sink the whole enterprise. Don’t let that be you after you have gotten such a great start.

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Business Start-ups

What Creates An Organizations Culture?

Leaders are facing enormous business challenges, and need to make changes in their organizations. Gain insight on how best to effectively make these changes and form a new culture.

Leaders at all levels are facing enormous challenges in achieving and sustaining planned operating results. Challenges are emerging from every business arena. Executives need to be cognizant about globalization, political opportunities, economic change, tariff negotiations, additional costs due to enforced regulations, and tightened accounting governance so that incidents such as Enron, World Com and the banking crises never occur again.  The CEO and his/her staff have one primary responsibility and that is providing shareholder value, yet this obligation has become even more difficult than in the past. CEOs are typically driving an organization’s culture and its associate’s sense of trust and well-being.

The way things are done in a company from recruitment, rewards, punishments, team building, achievement of goals and objectives, meeting management, handling conflict, dealing with competition and more are all a reflection of the organization’s culture. Yet, one wonders how does a corporation change the establishment’s culture when the business has become so challenging even for the best leaders.

Culture is the framework within which businesses operate and the binoculars through which others view an organization. If we view a business as a system of interacting and interrelated parts, then culture simply creates, defines and supports that philosophy. However, it is extremely unwise to consider that culture is only defined by what companies do today. This can lead to costly and painful problems for the company later. Cultural change efforts that focus only on the what are doomed to failure before the change ever begins. The greater question is why do organizations do things the way they do? One has to ask the question, is there a particular benefit of doing things in a certain way. Are we doing things this way because we have always done them that way and now the technology has changed to offer a better way? Culture can sometimes be described as an anxiety-reducing agent. Because of this phenomena, company cultures are extremely resistant to change.

Consider businesses that failed due to their inability to change their culture. IBM is a great example from the 1980s when the company ran into serious financial difficulties. Up to that point the company was unwilling to change the ways in which it was approaching the market even though the market was rapidly changing around it. Consider your own business. Are you willing to change even if it means breaking tradition?

To determine your readiness for change, take a few minutes and evaluate the organization’s characteristics. Consider each characteristic and how deeply rooted the current business practices are in the organization. Ask yourself, why do we do things the way we do on a particular trait. Then rate the need to change from one to ten. One should be an urgent need to change, while ten would represent no reason to change. Next, rate the ease of change from one to ten – one being the most difficult and ten being the easiest.

 

Organizational Cultural Characteristics

Characteristic Need to change Ease of change
Associate development
Leadership development
Team accomplishments
Innovation
Risk Taking
Stability
Trust in management
Attention to Detail
Meeting management
Project implementations
Managing and achieving goals
Total

Now compare the total score on the need to change to the total score on the ease of change. If the two scores are close together, your company’s ability to change should not be difficult. However, if you honestly evaluate each characteristic you will often find a behavior that needs to be addressed.  Unfortunately, what we often see is that there is a perception of cause and effect and that is enough to cause a behavior to become a cultural value. Assuming that the behavior and the result occur together often enough, the behavior will be taken for granted. Team members will no longer question the behavior because it is the culture and that is how their world works. Other cultural values will arise to support and enable the behavior and in the end, a simple behavior leads to an interlocking network of beliefs, assumptions, and values. Attempting to change any piece is extremely difficult because every other piece attempts to pull it back into place. Suffice it to say that cultures do not change easily.

Making a company cultural change takes hard work on everyone’s part but starts at the top. Initially, leadership needs to gain awareness across the company about the need for change. Doing so requires a solid communication plan and a management team that is locked arm-in-arm. The communication should be designed to create a desire in the enterprise for change. Many times this means educating the employee community about why change is needed and ideas that can help improve business but require acceptance. Once acceptance begins, workers need to be supported with training and education on policies, procedures, and systems changes. Knowledge of what is new must be tested regularly for the first year or more until change becomes the new culture.

Is your organization facing change? Contact Mary Kuniski at mkuniski@me.comor log on to http://www.goldenprofessionalcoaching.com to make an appointment.

 

 

 

 

 

Attributes That Make A Great Leader

Have you ever wondered what you could do to be a better leader? Try Marshall Goldsmith’s Global Leader of the Future 360 assessment and compare your results to this article on attributes that make a great leader!

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Attributes That Make a Great Leader

Building leadership skills take humility, courage, and discipline. When I think about the attributes of the best leader I have ever worked with, I realize he used a servant leadership philosophy to manage his team. Traditional leaders exercise power to achieve results. By comparison, the servant-leader shares power,  puts the needs of others first, and helps his/her people develop and perform as executives. Servant leaders use their power to benefit the people they lead.

The foundation of a servant leader is integrity, which inspires trust. If a leader trusts his/her team, their team will believe in them. Successful leaders show stamina and are tactical, strategic and maintain a positive attitude. These managers empower their team to make decisions, set expectations and evaluate performance. They listen to their staff and serve them. As a result, their teams follow them.

The best leader I ever worked for was not perfect, but he was consistent in his approach and allowed me to do my job. Below is a list of competencies that he possessed that I believe were the most valuable in making him successful.

  1. Leaders remain focused and control their emotions

We face a million distractions in the office each day. If we allow ourselves to lose focus on the priorities, we will become overwhelmed and fail. If we plan our goals, define how we will achieve them, and follow up on the progress regularly, we will stay focused on the targets and be successful. Controlling our emotions plays a significant role in remaining focused. When we lose our temper, we lose focus.

2. Let go of the past

So often in business, we believe we have tried something once and if what we tried failed we think we should never try it again. The industry needs change, and they are cyclical. What did not work ten years ago may easily be what is needed today. One example of this was the demise of Montgomery Ward. In 1872, the retailer opened as the first catalog retailer in the world. The company served the needs of the rural customer and quickly became the largest mail-order company in the world. They never changed their approach and ultimately closed the mail order business rather than take the leap that Amazon made to put all their merchandise online. This may be an extreme example, yet we all have examples where we have said, “we tried that once, and it did not work.” I say time to try it again using a different approach. 

  1. Take ownership

Leaders are only as effective as how much they put on their plate. That does not mean doing the work but does mean owning the results good or bad. If something goes wrong the leader steps in and helps fix the problem. If the team or team member makes a mistake, the leader is responsible and must take ownership, and then ensure the team or team member learns from his/her mistake.

  1. Stay out of your own way (Build a mature ego)

When we first begin as leaders, our egos are immature and we often try to show off our success to our superiors. In some ways doing so works because the acclaim we receive is part of what motivates us to succeed.  However, showing off can also be a problem for us as we take our eye off the ball and start worrying about winning and losing our status. Rather than worrying about the commendations you might receive for doing something special, just do the work and your reward will come later as your ego matures.

  1. Communicate and praise

I can’t say enough about how important it is to communicate to your team. Communicate your goals and strategy. Recite the company’s mission and vision at every opportunity. Meet with your staff members one-on-one on a regular weekly or bi-weekly schedule. Provide your employees with feedback and praise.  Walk the floor and say good morning or afternoon. Learn about your employees likes and dislikes and any personal info they want to share. Talk with them about what makes them happy and they will be happy employees and know that you care about them as a person as well as an employee.

  1. Support your team

The team is the whole game and everyone on the team needs to feel as important as the other guy. The moment the leader or others are out for themselves and their own win, the leader and the team loses. Make sure the work is spread around to all team members and not just to your favorite team member. The only way employees learn effectively is by doing. They can’t do if you play favorites and give the work to only one person.

  1. Simplify – Business can be simple.

We deliver something people want and charge them for the service. But how we do that can get complicated in a hurry. Here’s the catch: A complicated plan is hard to communicate with our teams, and that makes it hard for them and us to win. Look at your business processes and see what you can eliminate. Get rid of checking the checkers – people who check to see if other people did their jobs. Hold people accountable for what they should be doing and streamline the processes. You will find the improved execution of the processes and reduced cost by eliminating the labor used for complicated processes.

  1. Empower your people.

Leaders delegate. That’s a fact. However, they don’t just delegate, they train, empower and communicate in clear effective language employees responsibilities and expectations. Empowerment allows leaders to take on more tasks than one person can do. When leaders do not empower their people they will fail or get frustrated and quit.

  1. Listen to your stakeholders

We all have stakeholders. Stakeholders could be our boss, customers, direct reports, peers or anyone that we work with on a regular basis. Completing an annual 360 evaluation with your stakeholders would provide you with some outstanding feedback that you could use to improve your skills. This 360 can be as simple as sending out a note to ask for feedback or a little more professional by contacting a certified coach to prepare and send out an anonymous request for feedback. The most important step is to provide a response to your stakeholders after receiving the feedback as to steps you will take to correct any deficiencies that were pointed out to you.

  1. Admit when you are wrong

When you are wrong admit to your team that you have made an error and want to correct it. This shows you are human and provides some confidence to your team that they too can try something new and will not get chastised if they make a mistake. They will see that you have humility and courage and will value you more as their leader for admitting you made a mistake.

Final Thoughts

My favorite boss was a class act guy who was a leader with courage, humility, and discipline. He displayed all the competencies I have listed about, yet it is important to note that there were still a few actions he took where he could have had a greater sense of awareness about what his stakeholders needed. This is an important distinction because we learn to be better leaders every day by the actions we take. The next time your leader does something that you think is not right, remember that he/she too is still maturing his/her ego and method of leadership.

 To find out more about Marshall Goldsmith’s Stakeholder Centered Coaching for leaders on the rise, contact mkuniski@me.comor go to http://www.goldenprofessionalcoaching.com.

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 Presented by Golden Professional Coaching LLC

A Marshall Goldsmith Stakeholder Centered Coaching Company

We Build Tomorrow’s Leaders

 

Unrecognized Ineffective Habits of Successful Leaders – Part Four

Did you ever think upholding boundaries as a leader could hinder your leadership effectiveness? No, well think again. Read this blog to surface boundaries that may hurt instead of help!

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Four weeks ago, I began this series with a list of 20 ineffective (unrecognized) habits of successful leaders. This issue is the last installment of those 20 habits. This series is intended to provide, even the best leader, one or two ideas of areas in which he or she can improve his/her leadership style. To read the previous three blogs on this topic, log on to MaryKuniski.com and enter your email address to follow my blog. This week’s blog covers the problems that occur when leaders withhold the necessary information from their teams.

Upholding Boundaries

According to Z. Hereford in essential life skills, personal boundaries are the physical, emotional and mental limits we establish to protect ourselves from being manipulated, used, or violated by others. They allow us to separate who we are, and what we think and feel, from the thoughts and feelings of others. The presence of personal boundaries helps us express ourselves as the individuals we are, while we acknowledge the same in others. (Herefore, Z, www.essentiallifeskills.net)

In business, we see the strong need for boundaries, so employees understand his/her limit, which in turn helps them maintain focus on their tasks. Unfortunately, these boundaries sometimes get in the way of a supervisor in providing the employee with the best workplace they can have. For example, supervisors are often required to maintain certain secret information, and it is up to the manager to determine what that might be. Some leaders go so far as to stop communicating with their employees for fear they are crossing boundaries. Listed below are five common areas where supervisors should break through the barriers and recognize their employees.

Withholding Information

Leadership often assigns special projects or reports to their staff to develop the talent of the associate to move them to the next level. There is a delicate balance between giving the associate enough information to complete the task or project and not giving enough information so the employee cannot complete the project.

I once worked for a leader who refused to communicate with me. He had a picture in his mind as to what he was looking for as an output for a project he assigned to me but refused to share his thoughts with me. I spent many hours reformatting the same data over and over again and never did “get it right.”  The refusal to share information with me appeared to be intended to maintain an advantage over me. What was meant to be a learning experience became an immense frustration and all I learned was not to trust this manager when he assigned projects in the future.  What I should have asked him to do was sketch what he thought the output should look like so I had a starting point. Because I did not ask those questions, we both failed in our communication.

Failing to give proper recognition or express gratitude

Many managers cannot praise or express gratitude to their employees because they fear doing so will take away their power and break boundaries with the associate. This behavior is the most basic form of rude behavior, yet we see it all the time with leaders. According to Gallup, employee engagement has been static for the last three decades. Gallup also claims that one of the most common areas of employee dissatisfaction is the inability of their leadership to praise and reward them for a job well done. In our interactions with others, we often miss opportunities to show genuine appreciation and recognition. So often, the only time employees hear our praise is during their performance review. Recognizing the strength of others requires a conscious effort, and it does not take much time. If we commit to doing so regularly, we will find it becomes a positive habit, increases morale and creates a confident culture.

The best formula I have found for giving positive recognition is by using the acronym TAPE, written by Dale Carnegie. T stands for THINGS. Perhaps the individual is particularly proud of something they own – could be their baseball collection, jewelry or clothes. Leaders should be aware of their associate’s pride and joy activities and things and talk with them about their interests in day-to-day conversations.

A stands for ACHIEVEMENTS, which can be research, projects, or anything that takes a focused and concerted effort. These achievements are the most often the areas of praise given in the business world. Achievements should always be recognized publicly and promptly.

stands for PERSONAL TRAITS and are the favorable characteristics individuals possess that make them valuable to you and your organization. When leaders recognize their employees for these characteristics, they are providing the most potent praise of all. When giving praise to employees, one needs to be careful to include evidence of the reason for recognition. For example, if the leader walks up behind his/her employee and says you did a great job today, the employee may wonder whom he/she is talking to and what they did to deserve the praise.

Therefore, the final letter is and stands for EVIDENCE.  When offering praise or recognition to one’s employees, the conversation should go something like this: Look the employee in the eyes and state his/her name. Tell him/her what they did well and provide evidence that what you say is true. Close by thanking the employee one more time.

Example

Jane, you offered the executives an excellent presentation today on your project. I was pleased that you included facts, figures, and projections. When presenting to executives, it is vital that you always back up your theories with numbers. Thank you, Jane, for your hard work.

Punishing the messenger:

Have you ever gone to your leader, presented bad news and felt the lash of his/her tongue. This situation occurs much more often than we think. The poorly misguided manager feels like he/she needs to lash out to someone and attacks the innocent person who is usually only trying to help. The result is that the employee will most likely never present lousy news or offer a suggestion to that supervisor again.

A more appropriate response to this type of news is a simple thank you, and according to Marshall Goldsmith, is the only appropriate answer. Although I agree with Marshall that the response should be simple thank you, I believe asking additional questions, in this case, would be appropriate if asked in a respectful manner.

Not Listening

Not listening is likely the most passive-aggressive form of disrespect for colleagues. Why don’t leaders listen to their teams? The leader may be embarrassed by what he/she might hear. Alternatively, his or her ego is so immature that they think they know best. In Marshall Goldsmith’s stakeholder centered coaching program we show leaders how to listen and respond to their teams. Doing so is not easy. It takes hard work, humility, and discipline. If you are interested in experiencing Stakeholder Centered Coaching, contact me at mkuniski@me.com.

“Daring to set boundaries is about having the courage to love ourselves even when we risk disappointing others.”   Brene Brown

Final Thoughts

Firm boundaries, such as prohibiting the use of inappropriate language or verbal abuse in the workplace are entirely appropriate. However, associates should be encouraged to speak in a respectful manner that is not condescending or abusive. With clearly defined boundaries regarding communication, associates use the appropriate tone and language with one another, which improves workplace interactions.

Boundaries discourage inappropriate behavior by setting rules of conduct within the workplace. Codes of conduct define what behavior is appropriate on the job and what behavior is unacceptable. It is a leader responsibility to set boundaries for all and then enforce them for all. However, leaders need to ensure their limitations do not take away from the ability of their workforce from receiving the required information and recognition to complete their jobs.

To find out more about Marshall Goldsmith’s Stakeholder Centered Coaching for leaders on the rise, contact mkuniski@me.comor go to http://www.goldenprofessionalcoaching.com.

 Presented by Golden Professional Coaching LLC

A Marshall Goldsmith Stakeholder Centered Coaching Company

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Reference: “What Got You There Won’t Get You There.” Marshall Goldsmith, pg. 40