What makes a business tick?
Is it the economy?
Is it the industry you choose?
Or is it the people you hire?
Your company’s performance depends on one thing – you.
You, the leader, entrepreneur, and business head, are responsible for growing your organization.
Don’t worry; this blog is not a reprimand.
We’re here to tell you how you can take back control by helping you understand the business fundamentals.
The key lies in embracing EntreLeadership.
Wait…what IS EntreLeadership?
Well, it’s a blend of outstanding leadership and entrepreneurship.
A leader guides and inspires others; an entrepreneur starts a business idea and manages the risks to establish its ground.
An EntreLeader leads people in a way that brings growth and prosperity to an enterprise.
According to the author of the book EntreLeadership, Dave Ramsay, there are 14 secrets to becoming an Entreleader.
Here’s how you can become one.
How to Become an EntreLeader?
Develop Your Dream – Vision – Mission Statement – Goals
“Visions are dreams with more clarity. Dreams become reality only when you pull them gently from the clouds and convert them to visions.”
Dreams are vital to creating something new.
But to bring them to reality, you need to crystallize your vision. The best way to do that is by sharing your vision with your team so you can all work towards the same vision.
Next comes creating a mission statement.
It’s a combination of your dream and vision.
Unfortunately, many business owners start without a mission statement. The common argument is that they don’t know what it should be about. The simplest way to develop a mission statement is to identify your dreams, values, and passion. When combined, these tell you:
- Who you are (and aren’t)
- What you do (and what you can or want to do)
- How you’ll do it, and why
Don’t worry if you struggle initially. Eventually, you’ll get there.
The last step is translating your dream and vision into an actionable form. Define your effective and shared goals to reach your targets.
Make the Most of Your Time
We’ve heard it a million times – time is money.
And yet, the real challenge is directing your time purposefully.
According to Dr. Stephen Covey, this happens because of four quadrants of time use.
- Quadrant I includes bills and contract deadlines that people focus most on.
- Quadrant III includes emails and calls that distract people the most.
- Quadrant IV includes TV and social media on which people waste the most time.
Wondering why we left out Quadrant II?
Well, it’s the one we neglect the most. These include important things like exercise, strategic planning, and personal growth. It’s the one that makes the long-term difference.
You can focus on the neglected Quadrant by making a prioritized to-do list.
- Categorize your priorities according to the top one in list A, the secondary in list B, and so on.
- Realize that meetings are essential but a real time-waster. So, set clear agendas and ensure proper follow-ups after meetings.
- Organize your desk to organize your thoughts. And lastly, use technology to make the most of your time.
Dare to Make Hard Decisions
As an EntreLeader, you must become used to criticism.
At the same time, you should be privy to making hard decisions. This happens when you conquer your fears.
Examine your worst-case scenarios, craft a way out of them, and then decide.
Some tips to make good decisions:
- Set a firm deadline
- Allocate time according to the decision size
- Have lots of options
- Invest time in gathering information
- Coach your team
- Establish clear principles
- Break down complex decisions into smaller versions
- Consider the financial implications
According to Ramsay, it’s important not to make a decision until you’re sure it won’t include borrowing money and causing financial strains.
Know the Recipe for Great Marketing
Selling and advertising your product or service is one side of the picture.
The other, bigger side involves marketing.
Though many people confuse it, there’s no magic behind it.
It’s all about having the right ingredients.
In essence, you need:
- Accurate timing – for example, if you open a retail store in February, you’ll have to wait till Thanksgiving to make sales out of the peak seasons.
- A prototype – starting small allows you to improve and revamp.
- Several options – that you can test, measure, and refine.
- Right actions – to know where you stand
And the ingredients to make marketing work include:
Start a Business & Realize your Dreams
Starting a business is not about making a stunning entry right off the bat.
Instead, it’s okay to start small and then grow because there’s no point in starting big if you have to take loans and collapse after.
Do the hard lifting yourself until you get some profits out of it. Here, you’ll have to realize a business idea made for profit.
Find your calling, match your skillset, and transform it into reality.
Learn to Hire and Fire Effectively
Spending time and existing resources to hire and train another resource is costly.
The same is the case when you have to replace the person you trained.
Prevent this by hiring the right people in the first place.
Fire effectively by sieving out people who don’t fit your organization.
If things don’t go as planned, you always have a 90-day probation before making a final commitment.
However, give people a chance to improve. But release them immediately if you discover a character flaw or find them unsuitable after 90 days.
Master the Art of Selling by Serving
You can deliver a great product or service when you master the art of selling. And it involves everyone from production to logistics and customer service.
The 4 critical steps to mastering this art are to:
- Sell to qualified prospects (those who have money, time, need, and decision-making power)
- Build a rapport and know as much about the person you’re selling to
- Show clients the value they’ll get with the money or time spent on the purchase
- Close the deal when you’ve accomplished these three steps
Apply Sound Financial Principles
According to Dave Ramsay, businesses fail because they make the following mistakes:
- Making decisions based on emotions
- Starting with insufficient capital
- Spending too much money
- Running into cashflow problems
- Investing in non-profitable things
- Taking loans and landing in debts
You can avoid all these things and make sound financial decisions by following the right principles.
- Set aside a part of your profits as retained earnings.
- Invest in things that impact profits
- Use business budgeting to plan ahead
Create a Culture of Communication
An organization is not family, but it shouldn’t feel like being in jail.
Instead of gossip and speculation, promoting an atmosphere where everyone can communicate is vital.
You can play your part by communicating details of possible crises and other things with your team.
Use tools and methods like:
- Weekly company-wide staff meetings
- Focused meetings
- 1-page weekly reports
The goal is to encourage leaders and workers to communicate freely with each other.
Build Loyalty and Unity
Being an EntreLeader puts a tremendous amount of responsibility on your shoulders.
You’re unlike the average leader who expects people to follow and gain unwavering loyalty just like that.
You have to show you’re loyal to them.
Remember, the people you work with also have dreams, goals, and hopes.
So, get to know each person in your organization, fulfill your promises, and help them achieve their goals.
Similarly, unity requires 5 key components:
- Frequent, open communication
- A shared purpose
- No gossips
- Conflict resolution
- Performance management
Magnify Success with Recognition and Inspiration
It’s human nature to desire recognition and appreciation. The same is true for everyone on your team.
Make it a point to appreciate people when they do something write.
Whether you recognize them with a nod, smile, compliment, or an email doesn’t matter. The key lies in being sincere.
Next, create an inspiring environment.
This happens when you reward people for winning, focusing on a broader cause, and role-modeling your values and passion.
Above all, aspire to lead by example.
Get a Grip on Day-to-Day Operations
Contracts, collections, and vendors are crucial factors affecting your business health and sending powerful signals to teams and customers.
Here’s how you can get a grip on them:
Never treat contracts as a protective or controlling measure.
Contracts do not guarantee people’s performances or behaviors. So, treat contracts as a communication tool.
Set up proper collection procedures like reminders, account termination, etc., to avoid problems like poor sales relationships.
Build long-term relationships with vendors supplying vital services to your company
Motivate People with the Right Compensation Plans
As much materialistic as it sounds, money defines a person’s value.
Ramsay encourages being intentional about the message you send to people and rewarding what you want more of.
Compensation can be made in the following ways:
- Profit share
- Profit and loss bonus
- Benefits tailored to the company
How you delegate people affects your business growth.
Delegating is only effective when you’ve taken care of the components we’ve discussed in the blog.
In layman’s terms, delegating to your team is like telling a teenager they’re free to do anything. When someone delivers what’s promised and shows they have the integrity and competency to handle tasks, they earn your trust.
But it takes time.
So, you must invest your time and efforts to teach new people the details that help them succeed.
Once you delegate, give that person the authority, responsibility, and accountability to do it right.
Following these secrets is your gateway to becoming an EntreLeader – one who sets the ground for unparallel business success.
Do YOU have what it takes to become one?