A reflection on business, three years' on...

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Time flies when you're having fun... time also flies when you're in business.   While I might be accused of telling a tiny fib if I said that building a business from start-up was fun - I don't think I could be contradicted when I say it's, well... challenging, exciting, nerve-wracking and most definitely one of the most intense learning experiences anyone could possibly have.

Reaching the end of year three, and looking into year four of this - I'm sick of the phrase 'journey', so I'm opting for 'excursion' - provides a really timely opportunity to consider what has passed and take the opportunity to reflect.  If I could say definitively, the specifics of what I've learned in three years - and not the day-to-day management 'stuff' - but the real qualities of survival and personal development... what would they be?

First and foremost, being successful - e.g. achieving goals in any context of your professional life - requires commitment and an unerring sense of bounce-back-ability.  Ostensibly, I'm sure many people would expect that I've never experienced a failure or disappointment... however I can say wholeheartedly that I have. It may not have concerned a magnum opus coming crashing down around my ears, but I have experienced my fair share of un-won tenders [despite very good odds], the high praise and enthusiasm of a great prospect [which fell by the wayside] and the general regret of discovering that something wasn't 'as you thought'.

In the very early days of any venture or enterprise - these disappointments / outcomes become the 'norm' - you battle daily with them.  In a lot of ways, you are no different than a musician chasing the all-important record deal - and can expect a lot of 'nos' until someone realises your talent. Resilience is key.

Another nugget of great import: if it's broke, do fix it.  I write regularly about the vanity complex many businesses suffer when they are so in love with what they do, they can't see that nobody wants to buy what they're offering.  Even the best-researched, well-thought-out and developed service or product can experience road-bumps [and of course, we're all subject to changing times and demands] - keep your eyes wide open, remain innovative and fresh.

Don't dwell on things that haven't come to pass; if it's not for you... is probably the hardest accepted reality [and not always confined to business].  Having the ability to let go of the things that haven't come your way is a skill to learn, and the sooner you do, the better.  In the fast-pace of business - it becomes easier to see why things happen the way they do, and in every instance - it's for the best, though it might not seem like that at the time.

Finally, I think the significance of connection - with others - both virtually and in person, is critical.  I can honestly say I have learned more in three years of this excursion than a degree and several years in various managerial roles could ever have taught me - much of this learning came not just from experience, but from the generosity of spirit and kindness of colleagues.

Getting the Green Light - The Safe Cross Code for Funding Applications [Mark II]

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I'm on a funding and finance 'tip' at the moment, and with this in mind, thought it would be timely to revisit this post on getting the 'green light' for your funding application.

So, what do you need to know before you go for funding?

1. Identify your 'point in time': there are many different sources of finance - from the enterprise agencies offerings, to crowd-funding, VCs, and traditional routes, such as bank finance.  Knowing where your business currently stands in terms of its 'point in time' or juncture in the business life-cycle is critical... which brings me on to point [2]...
2. Identify the right funding option for your business: Having a clear sense of your business's "point in time" also means it will be easier for you to determine which funding / form of finance is best-suited to your business.  For example - start-ups requiring working capital or cash-flow for initial costs may apply to the micro-finance fund at MicroFinance Ireland, or for priming grants via their CEB; VCs or large SME investment funds [such as the recently announced Bluebay SME Fund] are typically the right route for large scale investments / acquisitions... whereas crowd-funding may be more appropriate for new products, as are R&D funds from Enterprise Ireland, including their innovation partnership portfolio, due to the fact that they are tailored to new products / services and testing / validating or researching these propositions.  
3. Do the homework: Understand what is required of you in applying for any funding mechanism or support; avoid duplication of work by defining which internal documents [such as business plans, strategy documents and business cases] can be used as support documentation or form the basis of your application.
4. Crunch the numbers: Spending time on understanding the financial requirements of your proposal is a no-brainer, though you'd be surprised how many businesses fail to spend adequate time on this key area.  Start with the overall figure [maximum total investment / funding requirement] and work backwards, breaking down each element in detail.  Expect to be rigorously questioned regarding every figure - its relevance to the project - and just how neccessary the cost element is.  
5. Value the proposition: Like any proposition or proposal, being able to identify, clarify and 'pitch' how valuable, unique and distinctive your proposal, product or service is, is key to delineating yourself from others.  Ensure your proposition is compelling, focused and has considerable 'niche' potential.
6. Make sure your case stacks up: Again, a pointer which many would think is as obvious as the nose on your face - however it is sometimes overlooked in the melee of paperwork and the day-to-day.  However, it is crucial that all the various components of your application or pitch 'stack up' - and connect with one another - from formal application documents, to business case / plans and financial data - interlinking, referencing and notations should be clear and resonant.  
7. The four-eyes approach: Always [always, always] have your key [and most honest] advisors or team-members review the application and associated documents - when you've spend countless hours poring over it - it's a struggle to see the 'woods for the trees' and often simple things can be missed.  

Whatever you do... don't panic if you're unsuccessful on the first attempt.  Oftentimes an initial proposal which may not be approved on a first attempt will provide ample learning for the promoter / proposer - in terms of focus, proposition or business case data.  I have worked with several SMEs and promoters whose initial submissions to various funders were unsuccessful on their first attempt - the learnings and builds we were able to generate from these experiences provided the basis for successful, second-time applications.

Finally... if at second, third and fourth time you don't succeed: ask yourself why.  Don't plow on regardless ignoring the inevitable messages which [surely] must be coming your way by now.  Learning what's not working is an absolute must in business as ignoring this, in the long-run, is perilous.  

Good luck!

Avoid the Vanity 'Trap' - Get Behind Your Customer's Eyes...

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I was reminded of this topic from the recent SFA Conference, which featured a really energetic and engaging presentation by Gerard Tannam of Islandbridge - focusing on the importance of understanding your customer's values [indeed a strong pitch on the importance of value proposition], matching your offering to these values and needs, and ensuring your brand promise is delivered.

So, Gerard automatically had a converted audience member in me, as this is an argument I regularly have to make to clients, programme participants, and indeed - colleagues.  The 'build it and they will come' view just doesn't cut it, folks - and more importantly - related to other posts on failure or strategy, not knowing your customer is one surefire way of pressurising your business to the point of implosion.  That's not mentioning the huge waste of time involved in finessing a product or service to the point of obsession, only to discover that - uh-oh - your customer segments [if you have done that bit of homework] don't want what you're offering.

Sure - I hear you say - but how do I develop strong customer intelligence on a shoe-string, if I'm starting out and trying to juggle the myriad of 'hats' involved? It's not hard... take Gerard's advice and turn the mirror around, stop obsessing over how amazing your product or service is, and actually talk to your customer.  You'd be surprised how easy it is!

... I don't want to know... yes, yes, I know, you might find out something you didn't know, or more importantly, didn't want to know.  I'm afraid to say, this happens - and you've got to roll with it. Market insights, customer views and real-time information regarding your offering aren't always nice but they are always [pretty much] relevant - why? Because what you don't know, in business, will always hurt you.  Sit up, pay attention and understand how you can use this information to shape how you will redefine your offering.

Boot-strapping or lean approaches often don't require massive R&D / market research investments to generate good data which will inform your product / service development, in fact - simple ways of conducting good research can be done through focus groups, one-to-ones and demos.  However, as your business progresses, more detailed analysis work can be conducted to validate the instinctual or 'fed-back' concepts.

More? Try this for size... Small Business Can | Special Edition Newsletter  Keep Your Eye on the Ball

The 'F' Word...

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A subject of the moment, and one which never really goes off the 'agenda' - it's the 'f' word... AKA, funding, finance, figures, forecasting.

Businesses, at all points in their 'life cycle' will need access to finance.  Regardless of whether it's at the early stages of start-up, during expansion or at a juncture where acquisitions / mergers or further development / scale plans come into focus - finance is central to facilitating growth / development... it's the life-blood of any business.

As someone who continually expounds the value of strategy in business, a key 'FYI' in funding acquisition is to fully understand not just what your funding requirements are, but more importantly, why they exist and how you can justify [depending on the type of funding you're pursuing] return-on-investment, long-term potential, scale opportunities and a strong vision for the product, service or business.  Remember that funders and financiers are buying into the strength of the proposition and the individual ability exhibited [or team, depending on the pitch / proposal].  An ability to clearly highlight vision, purpose and strategy, all stacked up by strong financials can certainly offer higher probability of a successful funding application.

More?
No Plan | No Future  Sailing the Four Cs  Getting the Green Light | the Safe Cross Code for Funding

SMEs & the Entrepreneurial Contribution to the Economy | Job Creation | Presentation to YFG

Growing Pains: The Pinch Points of Starting Up

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A subject I write about regularly, and I suspect, will continue to do so... The pinch-points of start-up and how to manage them.  However, on this occasion I've decided to call on a friend and colleague to provide her insights - and I'm delighted to be co-writing with Orlaith Carmody of MediaTraining.ie for this post.

Unless you've been hiding under a rock, you'll know Orlaith as a dynamic and focused speaker, mentor and writer. With oodles of experience in SMEs, broadcasting, media training and entrepreneurship, Orlaith is a strong advocate of female entrepreneurship as well as a real believer in the power of the SME Community in driving economic recovery.

I asked Orlaith what she considered to be the key 'pinch points' for start-ups and SMEs, and how to best manage their impacts.

The Knowing ... and the Not-Knowing!

I do feel for people who take to the Den's floor to pitch - it takes a certain brand of craziness to put yourself out there, no-holds-barred and await a grilling.  Relaity television likes the barmy or the brilliant, and not much in between, so there are many good ideas that don't showcase well. However, there's a lesson to be learned here; and that is the fact that you have to know your business inside-out and upside-down before you attempt to pitch it anywhere, let alone on televison. Why? Because in every area of business, awareness of your product, service, pricing, message, growth plan, target-markets [to name but a few!] are key drivers in successful business development.  Only fools rush in, and taking the time to research, clarify and strategise your business offering are wise ways to dodge some major growing pains.

Sweating the Small Stuff... 

.. but not paying attention to the big picture.  As start-ups and SMEs in growth stages, there is often a propensity to obsess.  About everything.  And yes, I understand that everything has to be 'just right', but do you know what? You can end up spending so much time on tweaking the logo - one. more. time. - that you miss out on a great opportunity to showcase to a potential client, make a new connection or produce a good proposal.  Understand what matters, and move on. 

Getting "Hung-Up" Online

Apropos the last point, I have come across start-ups where the owners have given huge chunks of their lives to designing a wonderful website and establishing a social media presence without a customer base.  You are not in business until you have customers, and when you have customers you need to mind them, and give them the required time. I am a huge fan of social media, but it has to be corralled into small windows in the working day. It should work for you, not the other way around.

What's Your Vision?

I know Olwen talks a lot about strategy, something I'm also a fan of - but we share a very strong view on the importance of vision [pardon the pun!].  Developing a small business or start-up requires determination, focus, drive and an unerring commitment to do what it takes to succeed.  Business can be testing at times and you need to have a vision which keeps you on-track, tests you and drives you onwards when the going gets tough. Most true entrepreneurs believe that the world can't do without their product – it is what keeps them motivated in the lean times.

Scream for Help!

Don't ask for help, scream for it. Believe it or not there are lots of people a bit further up the ladder than you are currently who remember what it was like and are willing to share a few shortcuts. You don't have to plough a lonely furrow all the time – use networking events to connect with the right people in your industry and ask for advice. One short conversation with the right person might save you a lot of time and money.

Find a Mentor

Mentoring is increasingly being recognised as one of the key factors in determining the likely success of a start-up.  A regular mentor can provide expert advice, experience, a sounding board, and above all a requirement for accountability.  Until you are ready to form a non-executive board of directors, to facilitate some serious growth, a mentor can do wonders in getting a new business well established.

The Pushy, Bossy Note-Takers' View on Gender and Entrepreneurship

I started my business three years ago.  To this day, I remember the first networking event I attended 'flying solo'.  In fact, I can recall the sick-to-the-stomach edginess I felt as I stood up and 'pitched' my service - it was dreadful.

Now, I am all-too familiar with this sensation - however it's a fleeting feeling when I take to a podium or chair an event - or do a live radio interview.  Nerves are good, they keep you sharp.  However in August 2010 it wasn't the reality of being out of [the age-old, overused term] my "comfort zone", but in fact, it was the sense that I was atypical in my surroundings.  Staking a claim in the sector I work in, as a [then] twenty-something year-old woman, just wasn't [and to a degree now still isn't] the norm.

Big deal, I hear you say - well, actually - it is.  Though times are changing - the change is gradual - and often those with the wish to do something at the top of their capability register simply don't, because it's not the norm.  Sadly, this is especially true of women - often more risk-averse than their male counterparts - and in most cases, more highly-qualified [reference European Commission]... across Europe, women account for just 30% of all entrepreneurial activity, and in Ireland women are only 15-18% of entrepreneurs.  In my case, I knew that I was unusual - most "business development" or "strategy" specialists are twenty years older than me, and male.

However, this didn't stunt my growth - though it did dent my confidence once or twice... hearing disgruntled competitors using my age, my gender [in a veiled manner] and the experience I had [mainly in "female" areas of business - marketing, HR] as a means to question my credentials.  Some jibes over my involvement in women's business organisations - "knitting clubs" - and comparisons between financial planning and the household budget, at a business meeting 'so I'd understand'.  It might sound like I just wandered into an episode of Father Ted, but in fact, this is absolute reality.  I might add that it’s the tip of the iceberg.

So, what's my point? I've written much about the plight of women's economic engagement on this blog, as it's a subject I genuinely care about.  I also believe that those of us who have successfully taken the 'leap' should show the way for others.  I agree with my colleague, Orlaith Carmody, when she says [in relation to women on boards] that simply because those who've battled hard 'did it', everyone else should have to fight the same fight... in my opinion, it's up to us who have reached our own goals, to help others to follow theirs.

As for the other side of the gender argument, I think I agree most with Moira Forbes and others who say 'we need to change the story' and ignore the old-school paternalistic rhetoric.  When the balance sheet versus household budget comment was raised on that fateful day, I realised that the person uttering it simply just didn't understand how ludicrous what he had said, was.  This dinosaur may [thankfully] be part of a dying breed, but our young generation must work hard to ensure his ideologies remain six-feet under.

Sadly, a more insidious form of sexism does exist outside the blunder-bus variety - it's the one which repeatedly attributes values of the past to women's current status, and I have come in contact with this on many occasions.   I have been referred to as 'pushy' or 'bossy' [as opposed to focused and driven] - suggested as the note-taker [women are better at secretarial work, apparently], and condescended to or spoken over at meetings.  A common thread exists where projects I have proposed for or have proposed collaborations for, have been unsuccessful - and indeed I have referred work to colleagues, not to receive any referrals in return.

You might say, ah c'mon, that's just bad luck - but believe me, it's not.  Having amassed a fairly significant portfolio of projects in my short three years, patterns become painfully clear.

So, what's the answer to this quandary? It's down to all of us, male and female - and particularly our young generation - to change this thematic emblem.  No-one with ability to do something, anything, should be intimidated on the grounds of the norm - like the household budget analogy, it's ludicrous.  Our youth are key drivers of change and can make the case for new norms, positive ones which will expedite the pace of change on all fronts.  Business success is centred on capability, and without diversity, businesses cannot expand, grow and create.  Through my work, I'm proud to see more dynamic, more focused leadership in SMEs headed up by Ireland's new swathe of entrepreneurs - they hire capability and diversity - they invest in their staff, and their own development.  It's so refreshing to see this change.  As highlighted by Dr. Gareth Jones of the London Business School at a recent IMI presentation – authenticity, clarity and focus is key to success.

In sum: Ireland needs to continue to embrace this new, dynamic form of leadership which is inclusive, focused and firmly kick off the shackles of traditional paternalistic values. Dinosaurs may be extinct, but their successors live on.

More:

Guardian | Pretty and colourful: what women bring to the DB boardroom, says Ackermann

Women's Economic Engagement & the Europe 2020 Agenda