Start and Grow a Low Risk Business

jumping from fire.jpg

I heard from a friend that their big corporation just laid off hundreds of people. It could be from mismanagement, market downturns or simply another industrial age company ending their cash cow ride.

It’s easy to lose sight of the bigger picture. If people don’t want what you offer, then your business is going to simply go away. Businesses exist to meet demand. No demand, no business.

But, new businesses can also emerge simply from new demand. That’s great news for entrepreneurs that can notice what people want. And, for those that already have a security blanket – a job or a business – it’s easier than ever to start a new business with low risk.

There’s no such thing as no risk. You can only lower it in the face of competition, uncertainty, complexity and market dynamics. And it’s critical to manage risk when it comes to new ideas and ventures.

I’ve written a lot about managing downside and pursuing opportunity. You can check out my resource on productizing for creating options for yourself.

If you feel secure, then it can be a time to put energy into new opportunities for hedging your cash flow in case your gravy train runs out.

If you have had success and sold a business or had a payday, then you can open up a new game for yourself to see what opportunities might emerge.

If you don’t know what to do, there is nothing like action to help you get more clarity.

Being a sitting duck and waiting for something to happen can be a painful jolt when the shoe does finally fall.

While there are businesses that are shuttering up, the great news is there is a ridiculous amount of opportunity out there as well for those that are proactive, smart and eager.

How could your cash flow disappear? What’s holding you back from creating new business options?

Take Risk and Give

rohan-makhecha-jw3GOzxiSkw-unsplash.jpg

I like businesses where the need is obvious. People line up because they need a solution. Dentists, divorce attorneys, grocery stores and gas stations will always have demand. We have a problem and they are a known solution. The challenge for them is to meet the known demand with delightful service and care. That’s a known way to stand out.

But if your offering is less than obvious for having built-in demand, a strategy to apply is to take give generously. Share insights and content that is valuable. Give real answers to real problems. This may feel like you are giving a lot away or taking uncomfortable risk.

But, the world is filled with a lot of generic, safe information online. If you have real answers that stand out and work, you get through the noise. Teasers, generalizations and saying a bunch of platitudes will not create engagement.

Truly helping people with strategies and insights that work will do far more than creating some kind of funnel manipulation.

Can you solve my problem? Can you articulate my problem?

Take the risk of being overt and generous to see what opportunities might open up that would otherwise never arise. It’s your chance to be helpful, contribute and a person of great value.

You Need Strategy

blurry .jpg

Many times when we are working in the grind we get so busy that we can’t see the forest from the trees. You may be working hard, but your hard work may be on things that don’t contribute to the bigger priorities.

It’s why having a regular and focused time for strategy keeps you from wasting energy on the wrong things.

If you are growing a business, you can’t afford to be unclear. It becomes costly quickly.

And if you have had much experience in business, you realize that there are not any shortcuts. The reality is that two things matter: strategy and hard work.

Knowing what to do and doing it consistently moves the needle. There’s no gimmick, magic or back door that hands you success on a platter.

You have to work just as hard at clarity as you do the actual work. And clarity is not free. It comes with thinking through the competing priorities, opportunities and constraints that are part of your mix.

Has the work you have been putting forth the last month mattered?

How can you make space for strategy regularly?

How to Create Content that People Care About

helping others.jpg

I have a lot of resources on my site from many years of helping people in concrete, real-life ways. Check out the most recent resource on creating content that is valuable to people.

helping others resource

At the end of the day, you either truly contribute and help people in specific ways, or are simply in the way, ignored and irrelevant. There’s so much content and information out there already. And with all that effort to create something new, it can be futile. I think it’s why a lot of people start activities like content marketing and eventually quit.

In my opinion, it’s better to be generous, specific, and real. It’s about caring and truly helping people solve the problems they are seeking solutions to. See if you can be valuable and share what solves real problems with real people. It’s a strategic way of standing out and making your content count. The resource should help you with a process to make your content matter.

Manage By Outcomes

clutter and outcomes.jpg

How do you know most of your work matters? There are probably a few things that matter to produce the outcomes important to an organization. Most work is simply effort and cost and does not produce meaningful results. You can see this with the ridiculing of office politics and people doing busy work in cartoons and TV shows.

If you are a manager, getting results starts with a system that focuses on outcomes. You have to be clear about what the key metrics that matter are. Then build your system to output those results.

It’s not easy because getting people doing what you need takes pig-headed determination. Furthermore, creating clarity is hard without clear strategy and vision. This often takes dialogue to get clear on what really matters to your business. Your attention and day-to-day is pulled by a ton of distractions and things that don’t matter.

If you’re not moving the needle lately, then think about how all the work that you and your team do contributes to the outcomes you want.

Maybe you’re working on outdated priorities. Or you have not refreshed your near term and long-term goals based on what you know today.

Anyone can work and be busy. But, getting the right things done requires taking pause and managing to the right priorities.

What outcomes are important to you now? Is your work set up to support those outcomes?

Help, I’m Never Getting to the Important Work

unclear and urgent.jpg

I understand. It can be really comforting to do what is urgent and stay in the groove of knocking out tasks. In a given day of work, there’s always the tasks that have to get done to keep pipelines moving, make customers happy and ensure our teams are motivated and productive.

However, that nagging feeling, for those business owners and executives that need to move the needle, will be there. Being busy can keep you from giving attention and focus on what really can 10x your business. You feel busy. You are getting things done. The problem is that you may not be getting the right things done.

It’s out of reach because distractions and busy work give you that dopamine hit and attachment to the work that simply has to get done.

If months have gone by, then consider, like someone who realizes that a personal trainer helps them get fit, to get clear and get the important work done. Get above the noise of your business and see what matters and does not matter.

The reality is that most things do not matter and a very few things matter immensely to help you grow your business. And if you are working on the low-level, have-to-get-done items, at the expense of the most essential opportunities, you are not being effective. You are allowing urgent demands to numb you into feeling busy and productive at the cost of big growth.

You do have to be productive so you don’t bottleneck your commitments to your customers. That’s worth making an established, reliable habit in your work.

However, if that is all you do – get busy work done – then you will struggle to grow your business. You are only refining and making what already exists optimized and at some point, it’s a diminishing return.

Are you getting the right things done consistently?

This is More Productive

forced perspective photography of cars running on road below smartphone
Photo by Matheus Bertelli on Pexels.com

“It is more productive to convert an opportunity into results than to solve a problem – Which only restores the equilibrium of yesterday.” ~ Peter Drucker

I am a sucker for solving problems. And I have to take heed to the wisdom in this quote. Which one makes more impact? A new opportunity or an old problem?

If my goal is to contribute, be useful and make an impact, then making space in my life for opportunities to present themselves and be acted upon is the priority. Busywork, noise, outdated commitments – these have to be pruned out decisively. Otherwise, like weeds, they clutter the landscape and opportunity for new growth.

Creating value for others comes down to solving the right problems. And the right problems tend to be coupled with timeliness.

Perhaps you have a lot of balls in the air as well. Simply cutting out what doesn’t make sense creates space for the new.

Maybe you’re measuring success by how busy you are rather than how much free time you have. The latter can be an indicator of your capacity for taking on new opportunities.

I have found that there are plenty of opportunities that cross one’s path. But working on old problems allows no space for those to be recognized, entertained and acted upon.

Be Clear About Who Your Customer Is

accurate action adult aim
Photo by Pixabay on Pexels.com

In case it doesn’t sink in, remember, you are one of 330M people in the United States. Go to the airport, a concert or any large gathering to get a small glimpse of how minute you are in a sea of people.

The strategy to try and work with everyone is a sure fire way of failure in the marketplace. There’s simply too much competition and it’s hard to understand your offering if you are generalized. It’s the quote,

‘I can’t give you a sure-fire formula for success, but I can give you a formula for failure: try to please everybody all the time.‘  ~ Herbert Bayard Swope

You have to be ok with not making everyone happy or trying to chase every deal. You have to be ok with people that don’t get you.

In sales speak, there is the wisdom of picking a niche or targeting your customer. Both point to being focused, clear and exclusionary. You have to have clear positioning.

Ironically, such specificity is a form of abundance. You are thinking how to be the best for the people you want to serve by solving their specific problem you or your company are designed for.

You are not diluting yourself and trying to be all things to all people.

I am about strategy. Many people do not value strategy. But, people that need clarity, business growth or getting rid of pain in their business know what I offer. I try to stay in my lane and not overreach to areas I don’t have passion, expertise or bandwidth for. I have a network of friends I try to share generously with instead in those cases.

So, maybe it would be a powerful time if you could think about, “Things I don’t do.” It could give you conviction around the things you do well and want to specialize in.

Then be clear with your marketing, networking and outreach to make sure that is understood by those that can do business with you or know people that want to do business with you.

Who do you only want to work with and what do you only want to offer?

How Do You Make it More Expensive?

white curtains on window wall
Photo by Leonardo Rossatti on Pexels.com

When we think about a problem, we like to solve it. Our brains are suckers for the open loop and we want to close it. If you are asking how to make something cheaper, you get solutions and thoughts on cost-cutting or quality cutting. And those that are super efficient at making things cheap have extreme scale to amortize such costs.

If you ask how to make something more expensive, you have to think about value. How do you make something worth more? How do you become worth more?

There are plenty of people that crave better. They can easily get cheap merchandise. But, they can’t always get that exquisite taste, feeling of quality or identity to name a few reasons why we pay more for the things we love.

What if you took the challenge to look at your prices? What would it take to make the value worth double? What would that look like? Can you add a thoughtful gift? What if you followed up with custom service at the right timing? The extra effort or concierge service could easily increase the value perception if you package your offering with some creativity.

Increase the value before anyone even asks. Sometimes it’s cost. Other times it’s care. Then, if you get traction that is repeatable, you can see if the value warrants an increase in price.

In a crowded marketplace with so many options for cheaper options, it would be hard to compete in categories that have people thinking about the low-cost option.

Become more expensive. It’s a fantastic way to differentiate and push yourself to be desired more. It’s not free. But it’s worth it.

Credibility

man wearing blue shorts about to dive on body of water
Photo by Oliver Sjöström on Pexels.com

Does it work?

Was it designed in and for the real world?

It’s critical to take whatever idea you have and see if it stands up to the rigor and texture of people – customers, partners, critics, etc – in the real world. That’s honest design.

Credibility comes from proof that what you conceived can actually work repeatedly in the world.

I like to move to action and engagement quickly. And here’s what I find works:

  • Always be engaging the world and gathering ideas
  • Write those ideas down. I keep a list.
  • Think fast and hard about a next step – reaching out to a friend, posting a thought, starting a project
  • Watch the reaction. And if there’s positive results, build momentum with another action. If not, kill your darlings.
  • Push

Clarity comes through engagement. It’s partly why I don’t think professional writers who are in these magazine content farms are necessarily helpful if they haven’t actually done things like build businesses, drive revenue or worked with teams. They are researching and writing.

Where’s the rejection? How do they know where the land mines are and tune for the chaos?

Look for the credibility with people that move to action and push until results happen. Otherwise, you can have a lot of misinformation from feel good content when what you really need are results.