What Have You Overcome to Be Successful?

Entrepreneurs who don’t win business plan or pitch competitions often get down on themselves. They may wonder whether they will ever get the funding needed to turn their idea into a commercial venture. The sense of frustration when circumstances don’t appear to go the right way can lead to despondency.  Vivian Giang, writing for Business Insider in an article published earlier this week, reminds that others have overcome greater odds.

Giang shares Ryan Blair’s story of coming from a broken family, learning disorders, and gang life to become a multimillionaire serial entrepreneur. In his bookNothing to Lose, Everything to Gain,” Blair writes:

“I quickly saw how the system worked, how the street lords kept themselves in power through influence and manipulation. I observed how the older people used bribery and fear to get the younger kids to do their crimes, and I saw how the young people willingly went along with it because it seemed like the only power structure that had any kind of respect in the neighborhood.”

“Long before I became a millionaire entrepreneur, I was a kid with a criminal record, street gang experience, and a lot of emotional scarring from years of abuse from my father. My teenage years were hardly the typical starting point for a normal, productive life, let alone a successful business career. Turns out, that didn’t matter.”

Blair was arrested more than ten times. Living the street life left him facing a four year sentence and the tender age of 16. His mom began dating a businessman a couple years later who showed modeled how to make money legally. Giang observes that Blair was insightful when he decided to apply the survival skills learned on the street to make money the right way. His “street smarts,” she writes, were gained from observing the strengths of the gang system through a new lens.

“There’s a hierarchy in gangs, a hierarchy of positions and power,” he says. “A gang is an economic system, and there’s a lot of similarities between gangs and some legal companies. I know that it’s not always the most powerful organization that’s going to make it, it’s the one that’s most adaptable with the changing times, the one that understands how to manage their politics.”

At 21, Blair launched his first company (24/7 Tech) and brought his understanding of street economics, plus a determination to turn himself around, to bear on the effortToday, he’s the CEO of ViSalus and won the DSN Global Turn Around Award in 2010 when he actually turned the company around from being $6 million debt in early 2008 to sucess 16 months later.

When trying to get his first business off the ground, Blair says he was nervous about ‘taking his skeletons out of his closet,” because people were always “looking for a reason to see why they are better than you. People look at people who don’t have pedigree upbringings differently.” But “if you avoid it, or hide it, others might feel as though there’s a dishonesty there, and hiding something is a very expensive emotional thing for you.”

Blair’s belief that others, too, can overcome mistakes and troubled histories influences the way he runs his own company. He said that he’s willing to hire people with a criminal record–provided they are honest about the past in the present. It seems to be working well for him!

So, if you as an entrepreneur feel that you have long odds for success, consider what Blair and others have been through. He has faced similar challenges to your own–and additional ones that, thankfully, do not confront you. With that in mind, hopefully smaller challenges will be seen for what they are.

 

 

 

Real Estate Agents Must Understand Content Management

Today was a good day. In addition to meeting with some smart minds about artisan entrepreneurship, I had the opportunity to plan a pitch event for would-be entrepreneurs and meet with an existing business owner who desires to invigorate his enterprise. His business is real estate–specifically residential sales. What he’s hoping to accomplish is to build a powerhouse brand that competes statistically with the leading agents in our community while targeting an under-served niche market. He asked me about my philosophy on how to accomplish his goal(s).

We began with a conversation about the role of social media in marketing services organizations. Fairly quickly, I felt the need to draw a diagram to make a key series of points. The figure below is what I drew for him–allow me to explain it to you so that you can be on the same page as we ended up:

 

Everyone knows that Social Media is on the rise and important to reach niche audiences in engaging conversations. What I was able to point out to this entrepreneur is that social media is a subset of Content Management Marketing. Knowing what messages you want to get across is a precursor to sharing the right information through online channels. To begin making posts, tweets, updates, etc without in-depth knowledge of target prospects and their needs is like wearing a blindfold in an archery contest.

Whether it is your strategy as an agent to build your business through referrals from prior clients, key centers of influence, or new campaigns, it is unwise to get spread too thin and not have deep relationships. Given the huge number of users on many social networks, the agent must devise a strategy that isolates niches and pursues them with targeted strategies.

The diagram shows that thought leadership is obtained by creating great content that is shared through social media. In response, the various media provide a built-in feedback loop that should drive future thought leadership strategies. For instance, some agents provide insights in multiple categories for their target audience(s). Whether it is local community, national real estate trends, the agent’s own interests, or local real estate content, the point is to demonstrate that you know what you are talking about.

Lead generation is the holy grail for many agencies that advise real estate firms. They think that, if they can generate enough new prospects for the agents to pursue. they have earned their keep. However, as the agent with whom I was meeting explained, leads that are not qualified and filtered can waste a lot of time. Smart lead generation comes from site visitor capture initiatives that are driven by a content management system that relies on social media to create online experiences for web fans.

 

Having worked in marketing roles for multiple services firms, I have met many peers who are entirely comfortable being creative, attending wine and cheese events, and spending the money of the business owner(s). What many of them lack are measurement systems (metrics) that validate the marketing ROI.  Furthermore, when metrics are available (web analytics come with every website), the marketers often don’t use the information to change the messaging and means of communication. Smart agents know better and use metrics to verify that what they are doing is working.

Competitive advantage is what is so hard to achieve, yet worth the pursuit. It is that unique place where the audience you target perceives that you can solve their needs “better” than any other provider. “Better” means that the home buyer/seller connects with the agent on a personal and professional basis and feels that the fee they pay to be represented is a value that exceeds what else is available to them.

What is your Content Management Strategy? Do you have one?

Social Media Metrics for Your Firm

Professional services firms (law, CPA, architect, engineer, IT services, consulting, etc.) are struggling with modern marketing. Many firms were founded in an era wherein marketing was seen as a “necessary evil.” As marketing (or business development, client development, etc.) has become more essential for improved books of business, firms have begun to hire marketing staff. In most cases, these folks have been tasked with corporate marketing rather than marketing the individual professionals. With the onrush of social media as a marketing discipline, there is a sharp dichotomy between the corporate web presence and the “sum of the parts” of individual professionals’  social media presences.

 

Michelle Golden, who is  very active in professional services marketing organizations, recommends taking baseline measurements as early in the (any) marketing process as possible, and then identifying very specific objectives as part of an individual’s role in increasing his or her—and ultimately the firm’s—visibility. She writes of the individual versus company promotion trade-off, in a blog postWhy Social Media Rock Stars Are Good For Your Firm.(Sometimes CPA- or law-firm partners get frustrated about the attention an individual “supposedly representing the firm” starts getting when their online visibility increases. This (blog post) helps explain to those partners why they should encourage the individual “fame” and not squelch it.) 

Golden says that “You can rarely truly know exactly where a lead is generated anymore (unless it’s from a specific campaign) and that’s OK. We are looking for overall growth. This is all the ROI that you’ll need.”

Here are some specific ways she suggests to put marketing metrics in place:

BASELINE MEASUREMENTS

To accurately assess growth later, I recommend taking these broad baseline measurements now:

  • number of current clients
  • revenue (average and standard deviation)
  • revenue change % year over year
  • client longevity (length of stay with the firm)
  • frequency of client interactions
  • frequency of transactions (purchases)
  • number of clients lost per month, quarter, or year
  • number of new clients per month, quarter, or year

PLANNING AND GOALS

  • Increase retweets and mentions (by anyone) related to [practice topic] from [baseline #] to [goal #] by [date]
  • Obtain [#] retweets and mentions by target personas including peers and thought leaders in the specialty (i.e., Get on their radar. Knowing exactly who they are in advance is best.) by [date]
  • Receive at least [#] unsolicited invitations from trade organizations to speak or write by [date]
  • Earn [#] appearances as media “expert” in [publication or station] by [date]
  • Receive [#] questions or requests for advice from [define personas] every [frequency]
  • Build up to [#] of [define persona] Twitter (or blog) followers (or subscribers) by [date]
  • Move [# define persona, or specific names] from digital to personal conversations by [date]

TRACKING WORTHWHILE THINGS

  • Where did it appear?
  • Who said it?
  • Was it positive? Y/N
  • What was said? Categorize the nature of the comment and keep a clip file.
  • Was the mention about a particular practice, department, or person?
  • Did the mention include reference to your content or website? If so, to what specific content or page?
  • Who responded and how fast? You may want to keep the response in a clip file, too.

Keep the suggestions above in mind as you develop and refine a social media strategy as a part of your overall marketing plan. Helping your team members become better at their online thought leadership will enhance the brand reputation of the firm. In the process, your best indicator of ROI–increased revenues–should show enhanced performance as well.

 

European Media Incubators PepsiCo Style

Recently, we have noted that intrapreneurship is an emerging trend, perhaps even hotter than entrepreneurship. One of the hybrid expressions of these category leaders is the incubator inside the larger business. In the media industry in particular, the struggle to keep up with digital competitors creates a huge need for innovation. Chip Lebovtiz, writing for Fortune online, describes what two media companies across the Atlantic are doing.

The Irish Times and the BBC’s commercial arm, BBC Worldwide, are establishing intercompany startup incubators to harness young businesses’ disruptive energies. The (Irish Times Digital Challenge).. is akin to the plot of a Hollywood movie: a young up-and-comer works with a grumpy old mentor to overcome a problem, learning a valuable life lesson in the process. In this case, the problem is how to better monetize a company’s online presence and the life lesson is the experience startups get by working with a large company, says TheIrish Times Chief Innovation Officer Johnny Ryan.

Ryan is the brains behind (the competition), in which five early-stage companies  — 81 applied — spend eight weeks working at the Times to translate their pitch into virtual reality. While their ideas widely vary, their end goal is the same, to win €50,000 (about $61,000) from venture capital fund DFJ Esprit. The winning team must prove to the Times that its product provides the largest revenue potential and improvement to reader experience.

This is an interesting competition because large revenues and improved reader experience may be mutually incompatible. One has to wonder whether the intrapreneurs have the latitude to recommend strategies that may cannibalize longstanding business practices at the publisher.

BBC Worldwide Labs, a new business accelerator for startups, takes a similar but distinct tack. There is no competition between the fledgling companies and no prize money, but the six-month program offers a trophy of a different sort: the startups get a first client worth billions.

“The BBC can be a great first customer,” says BBC Worldwide Labs Head Jenny Fielding. The broadcasting giant can be “a partner at the point of commercialization for these companies.”

This approach is intriguing because of the built-in customer aspect. Many start-up companies struggle with defining a target market that is both large enough and profitable enough to serve as the fledgling enterprise scales. Yet, by becoming a captive supplier, does the intrapreneur become prejudiced against other viable market development opportunities?

What makes these programs distinctive is that the startups operate just down the hall from the people implementing their products. This proximity to the client is designed to overcome obstacles usually found in interactions between startups and large corporations.

Working with big companies is difficult for fledgling businesses. Fielding, in her role as the head of Digital Ventures at the BBC, often has to personally guide startups through the BBC’s diverse ecosystem. By situating the program in the BBC’s London Media Center headquarters, she expects the smaller startups to more quickly acclimate to and efficiently work with the larger BBC.

Neither the BBC nor The Irish Times will take equity stakes in the young companies they incubate. Instead, the media companies hope to establish a relationship with these startups that is ultimately scalable into a larger, future partnership…

Director of Global Digital and Social Media at PepsiCo Josh Karpf isn’t too surprised to see media companies adopt the (PepsiCo10 incubator approach)…”Technology is affecting every industry today, and media is no different, he says in an email to Fortune. “Companies that are trying to find technologies that will impact their businesses three to five years down the line are the ones who will win in the future.”

 

Helping Companies Innovate On Purpose

 

Organizations large and small have teams that are responsible for executing business objectives. In some cases, the objective is to overcome a challenge; other times to re-engineer a process; still others are tasked with the commercialization of new ideas.  Regardless the initiative, the net result is that change will need to occur in order for a new, preferred outcome to be realized. Instead of the top executive in a group owning the need to introduce change, it is usually better to get a team involved for buy-in and swift implementation as well as diverse viewpoints.

Every team has inherent strengths, unique capabilities, passionate individuals with keen insights, and the opportunity to succeed. Invariably, however, time seems to work against innovation and helping teams find the time to do something uniquely significant can be tough work. Culture can impede team progress. It is important to provide the permission, resources, and support for teams to feel it is okay to brainstorm, invent, and implement new ideas.

Bulldog Drummond of San Diego uses a five step process to guide teams through innovation:

STEP 1:  WHAT’S THE PROBLEM? 

While it sounds obvious, framing the challenge clearly is the first step to take. Use the power of “Why?” to ensure the challenge is clearly stated and that everyone on your team understands the problem or the opportunity. Frame the challenge as a question. 

STEP 2: UNLEASH CROSS-FUNCTIONAL TEAMS

Brilliant minds inside companies are often under-utilized because there isn’t a venue to bring them together. These minds don’t get enough time with their peers and are rarely put into environments designed to produce them with enough time to attack a single issue. When solving a challenge, don’t just have marketing or product development teams attack the problem. Instead, unleash the power of cross-functional teams and, if possible, more than one. 

STEP 3: PUT THE CONSUMER (AND KEY INSIGHTS) INTO THE MIDDLE OF THE CHALLENGE

Millions of dollars are flushed down the drain because people aren’t paying attention to the data and the knowledge it contains is not organized in a manner that tells a compelling story. Bringing the consumer to life as people, not just as data, places the consumer and key scenarios into the middle of the challenge in an organized and insightful approach.

STEP 4: DESIGN AND FACILITATE AN AMAZING PROJECT EXPERIENCE

When attacking a challenge, envision the entire experience from beginning to end so that the teams can focus on solving the challenge. We begin by defining success with the project leaders and then choose an inspiring offsite venue and bring 5 to 10 cross-functional teams together. We make sure there is homework completed in advance preparing the teams for their time together, including gathered research, trends, and suggested work in the field. Next, we design the experience—from music and food, to a range of carefully facilitated exercises—and we model a passionate curiosity to solve the problem. At the end of the one or two days we always have amazing, actionable outcomes. 

STEP 5:  ACT QUICKLY ON THE OUTCOMES 

The key to success is to ensure that the ideas are not lost because they haven’t been framed correctly, or they don’t get the time and attention due to the day-to-day activities. Make sure that post the summit, the learnings and outcomes are synthesized in a compelling way, and that a project champion is chosen to lead the ideas into development.

Well-designed innovation summits are characterized by creativity, fun, and enthusiasm. Your organization can empower its teams with resources, support, and approval to dream big dreams and develop ideas that will benefit the organization. It is then incumbent upon leaders to move quickly to implement the ideas.