tag:blogger.com,1999:blog-68746557675750891422024-03-14T08:13:34.181-05:00Red Rocket Ventures Blog (Growth Consulting, Small Business Experts)Learn and engage on various business topics and lessons with the Partners at Red Rocket. This blog serves as an executive's strategic "playbook", with actionable "how-to" lessons on a wide range of topics, including business, strategy, sales, marketing, technology, operations, human resources, finance, fund raising and more. Click the index link below to dig in by topic.George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comBlogger777125tag:blogger.com,1999:blog-6874655767575089142.post-26209265536708393152024-03-06T12:12:00.000-06:002024-03-06T12:12:19.071-06:00Lesson #359: How to Cut Dead Weight Out of Your Business<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTqCYfnVAnC9XZ6jlvxN1HEAWY1qc9wqkHzVlD70aQa5WMZiE4FRUygtgngNue-ZpHK3mmhRsMppYrFVSNh2Bzwp3RypLyUGjfaxpm11bgJw1STtiPhWddk1UtBETZNgVCoI8aYh3HwBcr_CuFTpv1oOdM7eA8VRpFRWPEvIPudL1Dt3yhkjMjVeY-ldKo/s543/blog-dead%20weight%202.7.24.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="362" data-original-width="543" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTqCYfnVAnC9XZ6jlvxN1HEAWY1qc9wqkHzVlD70aQa5WMZiE4FRUygtgngNue-ZpHK3mmhRsMppYrFVSNh2Bzwp3RypLyUGjfaxpm11bgJw1STtiPhWddk1UtBETZNgVCoI8aYh3HwBcr_CuFTpv1oOdM7eA8VRpFRWPEvIPudL1Dt3yhkjMjVeY-ldKo/s16000/blog-dead%20weight%202.7.24.png" /></a></div><br /><p></p><p>In business, you need to be running as efficiently as possible. But, I have seen many businesses carrying a lot of “dead weight”, which is holding them back. Some of that dead weight are smaller things, like being overstaffed or spending too much for services. Or, poorly investing their sales and marketing dollars. And, some of that dead weight is pretty material, like operating too many divisions or focusing on channels that don’t have a material payback. This post will help you learn how to identify the various types of dead weight, so you can assess your business and see if there is any pruning to be done.</p><p><b>Strategic Dead Weight</b></p><p>Strategic dead weight is building a strategy plan that has you focusing in areas that the business really shouldn’t be focused on, investing resources in a way that is either not driving an ROI or it has become a distraction to more profitable areas of the business. This could be things like supporting too many brands or divisions, or too many products, or too many sales channels, collectively taking focus away from the real core competency or most profitable product line of the business.</p><p><b>Operating Dead Weight</b></p><p>Operating dead weight is basically running the business inefficiently. That could be having a staff that is too large in relation to the true business needs, or renting an office that is larger than you truly need, or paying more for services than is truly market rate, or worse, paying for services you really aren’t using at all. Every penny matters in early-stage businesses, and ineffectively investing your precious cash resources means you are flushing dollars down the toilet that couldn’t have been better invested in other higher ROI activities.</p><p><b>Sales and Marketing Dead Weight</b></p><p>Sales and marketing dead weight, is investing your payroll dollars into salespeople that are not driving enough sales to hit their goals (or at least cover their costs) or investing your advertising dollars into campaigns that are not driving a profitable return on ad spend (ROAS). You need to be religiously studying your sales team’s performance and your advertising team/agency’s performance to ensure they are hitting their goals. And, not only in the aggregate, but line-by-line for each specific campaign, to optimize and prune accordingly. You always need to be cutting your “losers” and re-investing those dollars to “double down” on your “winners”.</p><p><b>A Strategic Case Study</b></p><p>As a strategic example, when we acquired my current business, it was operating two brands, Restaurant Furniture Plus, targeting commercial buyers, and Your Bar Stool Store, targeting residential consumers. When running two of anything, that meant double the effort. We needed to build and maintain two different websites and two-different marketing campaigns, as an example. When we studied the financials by brand, we learned that Your Bar Stool Store was driving around 20% of the revenues, but only 5% of the gross profits, as its average order size was only $2,000 compared to $6,000 at Restaurant Furniture Plus. And, there were material operating inefficiencies with serving the consumer market, which often resulted in a lot more phone calls to answer and a lot more claims and returns, which created a lot of extra work. At the end of the day, Your Bar Stool Store was break even at best.</p><p>We decided to shut down Your Bar Stool Store, the original brand of the company, to help us cut our “dead weight”. It helped us increase our strategic focus on more profitable commercial buyers, it helped materially improve operating efficiencies, and most importantly, it helped us re-invest those marketing dollars into the higher performing commercial business to materially accelerate our revenues and profits. The “sacred cow” of the founders was sacrificed, to help propel the “better business” to newer heights.</p><p><b>Closing Thoughts</b></p><p>Small businesses cannot afford to be carrying any dead weight. They need to be nimble for maximum speed, and laser focused on what will drive the most profits. Any things that get in the way of that goal, need to be sacrificed for the greater good, no matter how much you like that “sacred cow”. It may result in some short term pain, but trust me, the long term gains in focus, efficiencies and profits will quickly mend those wounds. So, what are you waiting for? It is time to take out your magnifying glasses and start scouring for any dead weight in your business. And then, take out your hatchets for larger inefficiencies, or scalpels for smaller inefficiencies, and start cutting away. Your bottom line profits will thank you!!</p><div><br /></div><div>For future posts, please follow me on Twitter: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</div><div><br /></div><div><br /></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-15139252113230506972024-03-06T12:04:00.002-06:002024-03-06T12:04:32.420-06:00Lesson #358: Revenues Lost is More Important to Measure Than Revenues Won<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgM8niGUUwp9A9QOsBl9g0oo27WWYA4RrVKr-PNDu1RD-dwjJiO-AQXba5fVC8wkOwFW6dR7QOr50hwjQJFIjLAlTN07mB91cMPbV-g3PqIvOO862vskW3p5VkJzxKhUe63-Ruw4OrLYViZ4HfFiUzoWlxaQ0mwBS6EYb_HHAQZFobqq19nFAVu8leMM89O/s612/blog-revenues%20lost.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="357" data-original-width="612" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgM8niGUUwp9A9QOsBl9g0oo27WWYA4RrVKr-PNDu1RD-dwjJiO-AQXba5fVC8wkOwFW6dR7QOr50hwjQJFIjLAlTN07mB91cMPbV-g3PqIvOO862vskW3p5VkJzxKhUe63-Ruw4OrLYViZ4HfFiUzoWlxaQ0mwBS6EYb_HHAQZFobqq19nFAVu8leMM89O/s16000/blog-revenues%20lost.jpg" /></a></div><br /><p>Revenues, and resulting profits therefrom, is often the primary metric that businesses use to measure their success. I would argue there is an even better metric to measure, which is “lost revenues”. What revenues did you lose during the course of the year, and what were the specific reasons you lost those customers? Why do I say this; because you typically close 20% of your leads and lose 80% of your leads? If you can figure out how to reduce that 80%, you can materially grow and accelerate the 20%. And, increasing your conversion rate by 10 percentage points, is the equivalent of increasing your revenues by 50%!! This post will help you figure out how to best define and measure your potential reasons for lost revenues, to help you get your arms around how to best lower that amount.</p><p><b>What Are the Typical Reasons for Lost Revenues</b></p><p>There is a wide range of reasons for losing revenues. Some are related to your company, including your product, pricing, sales and marketing efforts. Some are related to your buyer’s company, including having management approval and budgets in place. Some are related to individuals involved in a transaction, including your salesperson, the buyer at your customer’s company or some other middlemen that may be involved. And, some are related to other outside factors, including competition and economic conditions. The key is figuring out which of these is the exact reason you lost each sale, documenting those reasons in such in a way you can build reports to learn from, and putting action plans in place to address each of these hurdles, to remove those constraints from your future sales efforts.</p><p><b>Issues Related to Your Company</b></p><p>Remember the four P’s of marketing you learned in business school—product, price, promotion and place? Each one of those are variables in whether or not someone will buy from you, or they will look for solutions elsewhere. So, you need to do lots of research here? Ask your customers what they do and don’t like about your product. Lean into the positives in your marketing messaging and fix the negatives and try again. Test the elasticity of demand by changing your pricing and seeing at what price the most revenues are created. Test different marketing messages, to see what offers resonate the most in terms of driving conversions. And, make sure your products can be discovered at any and all places a customer may be looking for them.</p><p><b>Issues Related to the Buyer’s Company</b></p><p>The largest issues at the buyer’s company are whether or not they have the management approval to proceed, with an established pre-approved budget in place. No matter how much a junior level staff member wants to purchase something, if their bosses won’t let them or they do not have enough funds in place to purchase your product, they won’t and can’t. So, as you are going through the sale process, make sure you ask these very important questions—who are the key decision makers involved here, and have budgets been approved? Then, you can work the decision makers to get them sold on the idea, and know you won’t be wasting your time on projects that don’t have a cash budget in place to afford the purchase.</p><p><b>Issues Related to Individuals Involved</b></p><p>Like the band Depeche Mode said, “People Are People”. You may not get the sale because of the specific people involved. Maybe your salesperson is not very good, and needs training? Maybe your client has personality conflicts with your salesperson, and doesn’t want to work with them? Maybe you are working with a middleman, like a design agency, and the designer is just using you for ideas and doesn’t really have a contract in place with the client yet. It could be a myriad of reasons like this. So, make sure you have a firm handle on the “people issues” of the persons involved in the transaction, and maybe try selling into other people at the same target company that are more open to a transaction with your business.</p><p><b>Issues Related to External Factors</b></p><p>Sometimes you are not getting the sale because of external factors that are out of your control? Maybe your big competitor just dropped their prices, and you didn’t react quickly enough. Or, maybe the economy is soft, and buyers are just nervous about making a big discretionary purchase right now. Maybe your product is seasonal or cyclical, and people just aren’t going to buy snow shovels in July, or voting booths in non-election years. Or, maybe government regulations are getting in the way (e.g., they won’t purchase your product because it is made in China with high tariffs incurred)? So do whatever you need to do, to track these external drivers, and have a message that best resonates with your customers despite whatever hurdles are presented in the market.</p><p><b>What Needs to Be Measured Here?</b></p><p>You pretty much need to be measuring every single thing that was discussed above in this post. Are you tracking the success of your marketing campaigns, A/B testing with different offers and creatives? Are you measuring the success of your various salespeople, and cross fertilizing best practices and weeding out underperformers? Are your tracking your competitors’ moves? Are you asking the right questions of your customers that didn’t purchase from you, as to the specific reasons they didn’t purchase from you? You will be amazed how much intelligence can be gleaned from your customers by simply asking them the question. And like with anything else in business, you can’t manage what you are not measuring, so make sure you have reports that measure all of the above “lost revenue” drivers, so you can see “no” turning to “yes” more frequently through higher conversion rates over time.</p><p><b>Closing Thoughts</b></p><p>Hopefully, you now have a better understanding on why it is so important to focus on the reasons behind the 80% of sales you lost, instead of celebrating the 20% of sales you won. If you focus on the 80% of lost revenues, you may be able to increase your win rate from 20% to 40% and double your sales in the process. Good luck!!</p><p><br /></p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p><p><br /></p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-50635303128773475102024-02-29T11:46:00.000-06:002024-02-29T11:46:18.748-06:00[VIDEO] What Milestones Should Your Startup Track?<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4aJcbPPKk9B-z3GJdVvbGJlP2a_lwqleH5SUoOjuiTosMeV_B6fxXVLxdcBB_OZP5Hw5yccslA05N3gJdjm98_sAelU4fn9HGl8BXIGXzU586VsqK4iesoS2IFFHzvLuPF1XKO6ng8kcJYaSAJ4gm_1SA7LvdfcJOIaMTohUWgNuX512V7M2-gMKi0AoM/s583/asbn%202.29.24.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="342" data-original-width="583" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4aJcbPPKk9B-z3GJdVvbGJlP2a_lwqleH5SUoOjuiTosMeV_B6fxXVLxdcBB_OZP5Hw5yccslA05N3gJdjm98_sAelU4fn9HGl8BXIGXzU586VsqK4iesoS2IFFHzvLuPF1XKO6ng8kcJYaSAJ4gm_1SA7LvdfcJOIaMTohUWgNuX512V7M2-gMKi0AoM/s16000/asbn%202.29.24.png" /></a></div><br />I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about what key milestones a startup should track as it is getting its business off the ground. As you will learn, you can manage what you are not measuring, and these milestones will help you set the proof-points that will impress prospective investors. I thought this video turned out great, and I wanted to share it with all of you, to make sure you are defining the key milestones and metrics for your busines. I hope you like it!!<p></p><p></p><p></p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6347402823112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick, Shyann Malone and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-48934415377474843612024-02-23T13:59:00.000-06:002024-02-23T13:59:24.874-06:00The 5 Steps to Survive a Difficult Funding Environment<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_xAUNu70FO3CsdU_DL4btE4c6hNw_Q3yjS_xYxoJk0id7G_9QKUxtVvHASulkILlaDda4vxFhbcxqbZzdP8jrchRp_X3F9-6gseIJJyaEDheKb5T6XXSAfUOP-W7YjNv7AxOH54646Rm1Nv-XMr4LyXxEO9G9YSjHvFWt0RR1CxjRwZ49ZuNfKhzIW2VU/s506/blog-difficult%20venture%20market.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="332" data-original-width="506" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_xAUNu70FO3CsdU_DL4btE4c6hNw_Q3yjS_xYxoJk0id7G_9QKUxtVvHASulkILlaDda4vxFhbcxqbZzdP8jrchRp_X3F9-6gseIJJyaEDheKb5T6XXSAfUOP-W7YjNv7AxOH54646Rm1Nv-XMr4LyXxEO9G9YSjHvFWt0RR1CxjRwZ49ZuNfKhzIW2VU/s16000/blog-difficult%20venture%20market.png" /></a></div><br /><p>CB Insights, a leading research organization that tracks venture capital financings, recently released its <a href="http://www.cbinsights.com/research/report/venture-trends-2023/">report</a> on the state of the venture capital market in 2023 and, most recently, the fourth quarter of 2023. Long story short, it was a terrible year for raising capital. The global market was down 30% year-over-year to its lowest levels in six years. The U.S. market fell to its lowest levels in 10 years, down 21% in the last quarter alone. Gone are the days of "unicorn" creation (companies worth more than $1 billion), mega-sized financings, and excessive valuations. And, investors simply can’t exit the investments they have already made, with an anemic IPO market. A pretty bleak picture if you are a startup raising capital today. So, what are you supposed to do to navigate these choppy waters? Buckle up and read on, for some useful tips based on my past experience surviving markets like these.</p><p><a href="https://www.entrepreneur.com/starting-a-business/5-steps-for-startups-to-overcome-the-difficult-funding/469274">Read the rest of this post in Entrepreneur</a>, which I guest authored this week.</p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-68906034541796308642024-02-07T08:44:00.000-06:002024-02-07T08:44:30.943-06:00Dead Weight Expenses Are Costing Your Business<p style="text-align: center;"> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwJQ2v5pCjVgpjCIjvIG3OKdiqSb2VtUr6J8c_J9YzPtKwjIZpapBmvzdfEI8GWrPyAj4IivrZ_o-Swk036Lxnjy2cM_Okp-oYmVi1Y-mPxa5ly9OMpIyD7S42cUtfr30hB0B-SkfT-XiPAYsPWafKMFOVEKd8MnzuZWNpR4IsIMeW5XX66Xq_44-9PqHS/s543/blog-dead%20weight%202.7.24.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="362" data-original-width="543" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwJQ2v5pCjVgpjCIjvIG3OKdiqSb2VtUr6J8c_J9YzPtKwjIZpapBmvzdfEI8GWrPyAj4IivrZ_o-Swk036Lxnjy2cM_Okp-oYmVi1Y-mPxa5ly9OMpIyD7S42cUtfr30hB0B-SkfT-XiPAYsPWafKMFOVEKd8MnzuZWNpR4IsIMeW5XX66Xq_44-9PqHS/s16000/blog-dead%20weight%202.7.24.png" /></a></p><div>In business, managing with a steady eye on efficiency is pivotal, of course, yet I have seen a great many operations carrying unrecognized burdens — from being overstaffed to spending too much for services, from poorly investing sales and marketing dollars and operating too many divisions to focusing on channels that don't have a material payback. This post will help you assess your own enterprise — particularly with respect to growth prospects — in order to determine if there's pruning to be done.</div><p><a href="https://www.entrepreneur.com/growing-a-business/the-2-types-of-dead-weight-expenses-and-how-to-cut-them/467985">Read the rest of this post in Entrepreneur</a>, which I guest authored this week.</p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-12020331062565912002024-02-05T13:09:00.003-06:002024-02-07T10:15:05.313-06:00Lessons in Leadership: A Jim Harbaugh Case Study<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9leC8N0D_IvFPuFN43q86g6cyi7QRVERNKBnA1LY0lCaU-KRcBgmlu1kWHJP-efTfBi6y2IkU7qejIHndgUjbXAgRx54IxwWX-yPlIjFdkwOKcw1qBPkeN7UB-N0r6VVgMZ25CuDAmul4pZSriNxqtnZnoTUyUB8jgig8O14hqjXAi94obhjQNg7Pe2Ku/s519/harbaugh.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="345" data-original-width="519" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9leC8N0D_IvFPuFN43q86g6cyi7QRVERNKBnA1LY0lCaU-KRcBgmlu1kWHJP-efTfBi6y2IkU7qejIHndgUjbXAgRx54IxwWX-yPlIjFdkwOKcw1qBPkeN7UB-N0r6VVgMZ25CuDAmul4pZSriNxqtnZnoTUyUB8jgig8O14hqjXAi94obhjQNg7Pe2Ku/s16000/harbaugh.png" /></a></div><br /><p></p><p>I am a graduate of the University of Michigan and lived through the roller coaster ride of the Jim Harbaugh era in Ann Arbor, which has recently come to an end with him returning to the NFL after winning the national championship at Michigan. But, the last nine years has provided many nuggets for entrepreneurs to learn from, in terms of how to approach leadership. This article summarizes the best of those leadership lessons to potentially apply in your businesses.</p><p><b>A Quick History</b></p><p>Michigan football is the winningest program in college football history, with a rich tradition of excellence and a rabid fan base that expect nothing less than winning championships every year. But, when head coach Lloyd Carr retired after the 2007 season, nobody expected it would be followed by the lackluster coaching tenures of Rich Rodriguez and Brady Hoke between 2008 and 2014. This had Michigan fans even hungrier to restore its championship ways. And, who better to call on to "right the ship" than Jim Harbaugh, a true "Michigan Man", a beloved Bo Schembechler disciple and former Michigan star quarterback, that had realized head coaching success everywhere he had been (e.g., San Diego, Stanford, San Francisco 49'ers). Jim Harbaugh agreed to take the reins of Michigan football starting in the 2015 season to "save" his beloved alma mater and return Michigan to greatness.</p><p>The first five years of Harbaugh's tenure as Michigan head coach were "ho hum" based on Michigan's goals. He won 8-10 games in each of those years. But that meant there were 3-5 losses in those years, and the losses were usually on the biggest stage, losing to ranked teams, in bowl games or to Michigan's arch rival Ohio State. The fans were most panicked after the 2000 season (COVID year), when the team went 2-4 and people we calling for Harbaugh's firing. But, the athletic director stood behind Harbaugh, they restructured his contract in light of poor performance, Harbaugh retooled the program, and then magic happened. In the following three seasons, Michigan's record was 40-3, they beat archrival Ohio State in each of those years, they won three straight Big Ten championships and capped it off in 2023 with a 15-0 season and winning the national championship on the biggest stage. Michigan had finally returned to being an elite program, and the fan base was beyond ecstatic. After the season, Harbaugh decided to pursue his dream of winning a Super Bowl, and returned to the NFL as head coach of the Los Angeles Chargers.</p><p>Now, here are the resulting leadership lessons that come from this story:</p><p><b>Your Strategy Really Matters</b></p><p>When Harbaugh got started, he was talked into trying more of a spread-style offense, with speed in space, which was what the better teams were employing at the time. But, with all the big bodies of the Big Ten, they simply weren't winning the battle in the trenches on the offensive and defensive lines. It wasn't until Harbaugh reverted back to his "tried and true", "smash mouth" style of playing football, that he truly started to excel. That wasn't a popular strategy, with slow style of play resulting in "three yards and a cloud of dust", but it was a strategy Harbaugh knew well and succeeded with in the past. So, he pushed in all his chips, doubled down on that strategy, and the wins started to follow. So, like with anything, do what you know and think is best, regardless of whatever "noise" would suggest otherwise.</p><p><b>Your Management Team Really Matters. </b></p><p>Harbaugh cycled through a bunch of assistant coaches during his tenure. It wasn't until he tapped into the defensive schemes used in the NFL, by his brother John Harbaugh at the Baltimore Ravens, that good things started to happen for Michigan. Harbaugh hired two defensive coordinators out of the Ravens, Mike McDonald and Jesse Minter, and those guys helped to turn Michigan's defense into the #1 defense in all of college football, in multiple years. And, that doesn't even talk about adding in world class strengh and conditioning, and nutritional coaches, as Harbaugh knew those areas were just as important to success as learning the playbook. So, surround yourself by the best people possible.</p><p><b>Your Employees (Players) Really Matter--Win The Recruiting Battle</b></p><p>When Harbaugh got started, he did everything he could to stand out with recruits and push the envelope within the rules of the NCAA. He would set up satellite football camps in other states that were recruiting hotbeds, with the logic if they won't come to visit Michigan, we will bring Michigan to them (which irritated the competiting football programs in those states). He would take his team on big international team building trips (to give the players more than a football experience at Michigan). He would have dinners and sleepovers at recruits' houses, to show those families how important that recruit was to him. He launched a documentary about the Michigan football team on Amazon Prime, to get the program more media exposure nationwide, with an "inside look" at how business is done in Ann Arbor. He may have gathered a lot of strange looks along the way, but there was clearly a method to his madness. Figure out what you need to do to attract the best talent, and stand out from your competitors.</p><p><b>Your Employees (Players) Really Matter--Recruit the Right People</b></p><p>Equally important was recruiting the right type of player. Harbaugh was critcized for not recruiting enough five-star players. But to him, it was more about the character of the person he was recruiting, knowing he would "coach up" a three or four-star player, into a "five-star" NFL prospect. He wanted the guys that were underappreciated, had a chip on their shoulder, had a lot of hurdles they overcame. He wanted that drive and mindset, as you can't teach that. So, when the going gets tough, he would have a tough-minded team that would get going, driven to succeed no matter what challenges they were presented with. And it worked, as evidenced by this year's Rose Bowl, when Michigan's 2 five-star players beat Alabama's 18 five-star players. So, make sure your hires fit your desired culture, as you can't afford to have any "bad apples" in the bushel.</p><p><b>Your Team Culture Really Matters</b></p><p>I have watched over 40 years of Michigan football, and I have never seen a "team first" culture like this year's team. They all had the singular goal of winning a national championship (after getting so close the previous two years), they knew they all needed to do their part on the field and in the weightroom, they all truly loved and inspired each other, and they were all "selfless". Quarterback J.J. McCarthy sacrificied individual passing stats, if the coaches thought Michigan's vaunted running game would win the game. Back-up running back Donovan Edwards, who could have easily started at any other school, was happy to play second string behind Blake Corum, if the coaches thought that would help them win the game. Culture is one of the hardest things to build, and Harbaugh masterfully built his. You need to do the same.</p><p><b>Patience Is a Virtue</b></p><p>It would have been very easy for Athletic Director, Warde Manuel, to cut ties with Harbaugh after their dismal season in 2020. But, Manuel believed in Harbaugh, and was willing to give him another chance. It may have taken 9 seasons instead of 5 seasons to win a national championship, but Harbaugh ultimately delivered on the goal of restoring Michigan to greatness. So, when making your hiring and firing decisions, be sure not to throw out "the baby with the bathwater".</p><p><b>Sometimes You Need to Eat "Humble Pie"</b></p><p>You have to know that Harbaugh was frustrated with his performance in 2020. He was hired to restore the Michigan brand as one of the elites. He wanted that more than anybody. But, Harbaugh was willing to make the hard sacrifices. He voluntarily cut his lofty salary in half, and made it more of a pay-for-performance structure, where the better the team did, the higher he got paid. And, he pushed more of the team's salary budget, into the hands of his assistant coaches to increase their rewards for their hard work. And, during COVID, even took personal monies to save certain staffers from getting fired. That was not normal actions in the egomaniacal world of college football coaching. But, these actions all instilled trust with the adminstration and loyalty by his team. What can you do for your teams, to replicate this level of trust and loyalty to you?</p><p><b>Don't Publicly Disclose Your Actions Unless You Have To</b></p><p>The one big criticism of Harbaugh was his perennial flirtation with the NFL. In 2022, it was with the Minnesota Vikings. In 2023, it was with the Denver Broncos. In 2024, it was with the LA Chargers who ultimately hired Harbaugh. Even if Harbaugh's intent was to create negotiating leverage for his contract renewal with the University of Michigan, you don't do it publically in the media, for all the current players, coaches and recruits to see. It doesn't create a sense of stability, and would naturally have everyone looking for the door, especially with rival coaches fueling that messaging in their recruiting pitches. Which is part of the reason Michigan's recruiting class ranks suffered. So, keep your cards close to your chest any time your actions could have a negative impact on the team.</p><p><b>Timing Is Everything</b></p><p>If Harbaugh had left Michigan after his disastrous 2020 season, his reputation would have been permanently stained. It would have been his first real failure, and his reputation with the university he loves, would have gone from beloved Michigan Man to a pariah. But, by righting the ship, and leaving after winning the national championship, all is good with the world. Harbaugh accomplished his goals, the fans are euphoric and he will be fondly remembered as the man that "saved" Michigan football. And, even if he wants to go scratch that itch of coaching in the NFL and leaves Michigan, sobeit, we wish you the best. In three short years, Harbaugh legacy evolved from "loser" to "legend". And let's be real, there is only one way to go when you are at the top, and it was unlikely for Michigan to have another undefeated season in 2024 with top ten programs like Texas, Washington, Oregon, USC and Ohio State on the schedule, in the wake of four Pac-12 teams joining the Big Ten next season. Timing is a critical compotent to your success and reputation, so use it wisely in your own efforts.</p><p><b>If It Isn't Broken, Don't Fix It</b></p><p>On the heels of Michigan's first national championship since 1997, losing your head football is not what an athletic director wants to deal with. But, Manuel's actions were swift, and rightfully so. He promoted Offensive Coordinator, Sherrone Moore, to head coach. Why? Firstly, because Harbaugh said he was the next guy to carry the torch, and Manuel trusted Harbaugh's opinion. But, more importantly, the players loved him, and he would maintain Michigan's very unique culture going forward, hopefully giving the team increased odds for additional championships in the future with a "winning recipe" in hand. And, everyone remembers Moore's success filling in for a Harbaugh during his three-game suspension last season (for the sign stealing scandal), winning all three games against Michigan's three toughest opponents that year (Penn State, Maryland and Ohio State). So, he was a known entity. Could Michigan have hired a big name coach out of another program? Sure, it could have. But, it would have risked toppling the entire apple cart in the process.</p><p><b>Closing Thoughts</b></p><p>Thank you Coach Harbaugh for everything you accomplished during your tenure at Michigan, you exceeded everyone's goals with three straight wins over OSU, three straight Big Ten titles, three straight trips to the College Football Playoff, and a national championship this year. It may have taken you a couple extra years, but you ultimately did it. The Michigan fan base wishes you nothing but success in Los Angeles. And, for all you small business owners out there, see if you can apply any of these leadership lessons in your businesses. Go Blue!</p><p><br /></p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-23693014594818993612024-01-17T09:16:00.000-06:002024-01-17T09:16:09.494-06:00[VIDEO] How Passion Drives Entrepreneurial Success<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh21fGNQ7_LVvmaUtSwChYUGpFF92p2xSaE_K2kPCeDh76JKFH1igjcgr42KAgMYaphHEwwXSn-qz_uFlMNg7xGXwniLYzWk035b9bjIZYrbUWj82yXcCelbd7_UbrL2wte4XBOW-ezPyz0u_1zVdsjBsiSLlenymBvHZMns_H-nu5TCWMWkRuJ-wfGad5J/s566/asbn%201.17.24.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="319" data-original-width="566" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh21fGNQ7_LVvmaUtSwChYUGpFF92p2xSaE_K2kPCeDh76JKFH1igjcgr42KAgMYaphHEwwXSn-qz_uFlMNg7xGXwniLYzWk035b9bjIZYrbUWj82yXcCelbd7_UbrL2wte4XBOW-ezPyz0u_1zVdsjBsiSLlenymBvHZMns_H-nu5TCWMWkRuJ-wfGad5J/s16000/asbn%201.17.24.png" /></a></div><br /><p>I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about how passion is a key driver of entrepreneurial success. As you will learn, without passion and a true love of what you are building, it will be very hard to get your business to succeed, especially through the bad times. I thought this video turned out great, and I wanted to share it with all of you, to make sure you are doing all the right things to instill a passion for the business in all of your employees. I hope you like it!!</p><p></p><p></p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6344936756112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-9472106367301155782024-01-03T10:58:00.000-06:002024-01-03T10:58:24.473-06:00Increasing Conversion Rates Can Materially Boost Revenues<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio3RxEfTu7CFkxXon1XR-iqWkdmRkuDjEzhFuDgmAR71xRm-txZKWrMQ37XvYh4B3D8SGM_UlYPgkDB8WiZRtNgg1okb3XPW-VrNzIi0tMalIfcHpUbQ3h6cgBPud2jNswj_1f291fyQo6_kyewqdsPmcpkZHFy6lDdR89HB_YjBYRzgOWzwdcjSDQqpPy/s559/blog-conversion%20rate.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="314" data-original-width="559" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio3RxEfTu7CFkxXon1XR-iqWkdmRkuDjEzhFuDgmAR71xRm-txZKWrMQ37XvYh4B3D8SGM_UlYPgkDB8WiZRtNgg1okb3XPW-VrNzIi0tMalIfcHpUbQ3h6cgBPud2jNswj_1f291fyQo6_kyewqdsPmcpkZHFy6lDdR89HB_YjBYRzgOWzwdcjSDQqpPy/s16000/blog-conversion%20rate.png" /></a></div><br />It's common to close approximately 20% of leads and lose 80%. What's frequently overlooked in the search for growth, however, is that increasing that conversion rate by just 10 percentage points can be the equivalent of increasing revenues by no less than 50%. That's why, in my experience, a rigorous analysis of lost opportunities is among the most pivotal steps to consider when a change in strategy is needed.<p></p><p>Some missed sales are directly related to the selling company, including the product and its pricing and marketing. Some are related to buyers' companies, including having management approval and budgets in place. Some are related to individuals involved in a transaction, including salespeople, the buyer at a customer's company or some other middlemen. Finally, some are related to entirely external factors, including competition and economic conditions. The key is figuring out which of these is/are the reason you lost each opportunity, and then putting detailed actions into place to address each.</p><p><a href="https://www.entrepreneur.com/growing-a-business/boost-your-revenue-by-50-with-these-conversion-strategies/466469">Read the rest of this post on Entrepreneur</a>, which I guest authored this week.</p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-77832934752215431252023-12-21T06:02:00.000-06:002023-12-21T06:02:42.661-06:00Red Rocket's Best Startups of 2023<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-nEk6oAf5fqE9Xi3xZvEIzw3khkHnAbWDihUDBa3eFz6gLaoWPhYIaI3GRciV7tanUq_xGrQJmzxKOXPJP2ZkNjIW-CqKoCYoTp_f2BNkKeO1CDtA8HWBSnAzGJ5ogaSeBSFDpwu0MaCw1_sECbdN82thcxLgSl8N7nfQ9Lstig82EQX-q59ftYfX243B/s466/2023.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="311" data-original-width="466" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-nEk6oAf5fqE9Xi3xZvEIzw3khkHnAbWDihUDBa3eFz6gLaoWPhYIaI3GRciV7tanUq_xGrQJmzxKOXPJP2ZkNjIW-CqKoCYoTp_f2BNkKeO1CDtA8HWBSnAzGJ5ogaSeBSFDpwu0MaCw1_sECbdN82thcxLgSl8N7nfQ9Lstig82EQX-q59ftYfX243B/s16000/2023.png" /></a></div><br /><p>Red Rocket gets introduced to hundreds of startups each year, in the normal course of doing business, or via our involvement with various startup groups or events. We wanted to honor the best of these startups that we met in 2023, in Red Rocket's 12th Annual "Best Startups of the Year". This list is not intended to be an all-encompassing best startups list, as there are many additional great startups that we are not personally exposed to each year. And, this list is not intended to be only for businesses that launched in 2023, it is open to startups of any age, that they or their advisors had some personal interaction with us in the last 12 months. The business simply needed to have a good idea, good team or good traction, that caught our attention. Congrats to you all!!</p><p><br /><b>THE BEST STARTUPS OF 2023 (in alphabetical order):</b><br /><br /><a href="https://www.atomlimbs.com/">Atom Limbs</a> (CEO, Tyler Hayes) - B2C next-generation artificial limbs</p><p><a href="https://avawatz.com/">AvaWatz</a> (CEO, Rajini Anachi) - B2B AI platform for robotic teams in military</p><p><a href="https://overplay.com/">Overplay</a> (CEO, Caroline Strzalka) - B2C turn any video into a game</p><p><a href="https://www.powerhero.com/">Power Hero</a> (CEO, Esmond Goei) - B2B car charging stations for apartment buildings</p><p><a href="https://purebluetech.com/">Pure Blue Tech</a> (CEO, Ryan Vogel) -B2B self-cleaning membranes for water reuse</p><div><a href="https://www.vehiko.com/">Vehiko</a> (CEO, Edward Agabs) - B2C reverse auction car buying (dealers bid for sale)</div><div><br /><div><br />And, don't forget to check out the <a href="http://redrocketvc.blogspot.com/2012/12/red-rockets-best-startups-of-2012.html">2012 winners</a>, <a href="http://redrocketvc.blogspot.com/2013/12/red-rockets-best-startups-of-2013.html">2013 winners</a>, <a href="http://redrocketvc.blogspot.com/2014/12/red-rockets-best-startups-of-2014.html">2014 winners</a>, <a href="http://redrocketvc.blogspot.com/2015/12/red-rockets-best-startups-of-2015.html">2015 winners</a>, <a href="http://redrocketvc.blogspot.com/2016/12/red-rockets-best-startups-of-2016.html">2016 winners</a>, <a href="https://redrocketvc.blogspot.com/2017/12/red-rockets-best-startups-of-2017.html">2017 winners</a>, <a href="https://redrocketvc.blogspot.com/2018/12/red-rockets-best-startups-of-2018.html">2018 winners</a>, <a href="https://redrocketvc.blogspot.com/2019/12/red-rockets-best-startups-of-2019.html">2019 winners</a>, <a href="http://redrocketvc.blogspot.com/2020/12/red-rockets-best-startups-of-2020.html">2020 winners</a>, <a href="https://redrocketvc.blogspot.com/2021/12/red-rockets-best-startups-of-2021.html">2021 winners</a> and <a href="https://redrocketvc.blogspot.com/2022/12/red-rockets-best-startups-of-2022.html">2022 winners</a>, many of whom continue to be doing great things.<br /><br /><br />Congratulations to you all!! Keep up the good work.<br /><br /><br />For future posts, please follow us at: <a href="http://twitter.com/RedRocketVC">@RedRocketVC</a></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-83819999819801394842023-12-13T14:50:00.001-06:002023-12-13T14:50:53.842-06:00Lesson #357: Prioritizing Investment Return Objectives<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEii3Ctp_L5J9cw4rUbnsy5LJs-bEeJJz8cBUYoqM6We9o9RwqSa7pg5sV2wWLiXLllLY5trPiOfel6nORoFp2XUTiUUU61GLsOIKVqN182kx0G9ac5prd7rxHC-6MZP3JkxdMbMmeUlfvWwN4TMqzDqwT5UKjyd7pVZBEk4VR2fkDvDP4E2nNSXz5v5TKYd/s479/blog-prioritizing%20ROI.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="269" data-original-width="479" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEii3Ctp_L5J9cw4rUbnsy5LJs-bEeJJz8cBUYoqM6We9o9RwqSa7pg5sV2wWLiXLllLY5trPiOfel6nORoFp2XUTiUUU61GLsOIKVqN182kx0G9ac5prd7rxHC-6MZP3JkxdMbMmeUlfvWwN4TMqzDqwT5UKjyd7pVZBEk4VR2fkDvDP4E2nNSXz5v5TKYd/s16000/blog-prioritizing%20ROI.png" /></a></div><br />I was
recently talking to an entrepreneur that passed on an investment because it
would not need yield the company at least a 10x growth opportunity. I told him those level of returns are
reasonable when investing in small businesses under $5MM, but that he should
consider lowering his ROI threshold when investing in larger companies. My logic was twofold: (1) bigger companies
are harder to grow as quickly as small businesses, so the growth percentages
will be lower; and (2) you can make “oodles” more money in dollars on the
bigger company investment, even if the ROI was only 3x-5x. This post will help you know when to focus on
percentage returns vs. dollar returns when assessing your investment
opportunities.<p></p><p></p><p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><b>Path One—Invest in a Small Company for a
10x Growth Opportunity</b></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;">Let’s say
you are looking to invest in a $2MM revenue business that you can grow to $20MM
in revenues (10x opportunity). That $2MM
business was generating $200K in cash flow and you purchase it at a 3x EBITDA
multiple for $600K. And, when you sell
it, the business is doing $2MM in EBITDA, and you can realistically achieve a
4x EBITDA multiple on the sale as a bigger business. So, you sell it for $8MM, which results in a
pretty 13x return on invested capital. You made $7.4MM in the process, over the
five years you owned the company—that is a whopping 68% average annualized IRR. Nice job!</p><p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><b>Path Two—Invest in a Medium Company for a
5x Growth Opportunity</b></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;">In this
case, you are investing in a $20MM revenue business that you can grow to $100MM
in revenues (5x opportunity). That $20MM
business was generating $2MM in cash flow and you purchase it at a 4x EBITDA
multiple for $8MM. And, when you sell
it, the business is doing $10MM in cash flow, and you can realistically achieve
an 8x EBITDA multiple on the sale as a materially bigger business, as private
equity investors are willing to pay a premium for high cash flowing
companies. So, you sell it for $80MM, which
results in a nice 10x return on invested capital. You made $72MM in the process, over the five
years you owned the company—that is an impressive 58% average annualized
IRR. Amazing!</p><p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><b>Comparing Both Paths</b></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;">If you were
the entrepreneur that I mentioned earlier, you would have only pursued the
first path, as that is the one that enabled the 10x growth opportunity. And, you would have been happy at the end of
the day with your 13x return on invested capital and 58% annual IRR. But, should he have been happy? If he can gone down path two instead, which
was only a 5x growth opportunity, he would have returned $64.6MM more capital,
albeit it a lower 10x return on invested capital and lower 58% annualized
IRR. He was so focused on hitting that
one 10x growth metric, that he lost sight on the big picture of there being a
ton of money left “off the table” by not investing in path two.</p><p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><b>Key Things to Understand</b></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;">One of the
key things to digest in this comparison is what happened to the business
valuation multiples as businesses get larger.
The business in path one started at 3x EBITDA multiple as a $200K EBITDA
business, and expanded to a 4x EBITDA multiple as a $2MM EBITDA business. That means 25% of the return had nothing to
do with the growth of the business, it had everything to do with how investors
value bigger businesses.</p><p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;">And then, if
you continue this exercise for the sale of the bigger business in path two, the
EBITDA multiple grew to 8x as a $10MM EBITDA business, after starting at a 4x
valuation. That means 50% of the return
had nothing to do with the growth of the business, it had everything to do with
how investors value even bigger businesses.
The point here, there are material economies of scale here when valuing
companies, and bigger is typically better for driving a higher sale multiple. Several roll-up stories are modeled on that
exact hypothesis: buy 10 companies at 3x and sell them at 8x without having to
do a single thing operationally. You
simply put the businesses together into one entity to create shareholder value.</p><p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><b>Closing Thoughts</b></p>
<p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><o:p>S</o:p>o, what
does this all mean for you? Don’t be so
focused on hitting your one single metric (10x growth in this case study), that
you lose sight of the forest of through the trees. Would you rather be bragging about your 10x
growth story that helped create $7.4MM, or your 5x growth story that helped
create $72MM. I don’t know about you,
but the latter certainly sounds a lot more appealing to me. Hopefully, you have a better grasp on when to
focus on multiples or percentages of growth, and when to focus on the dollar
growth instead. Good luck resetting your
growth and return objectives and you will be celebrating all the way to the
bank.</p><p class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;"><o:p></o:p></p><br /><p></p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-43886293506368666832023-11-24T05:46:00.001-06:002023-11-24T05:48:13.034-06:00[VIDEO] The 5 Key Skills for Good Decision Making<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDCRZJrxYT-IU4pz-0D9R3Yy5BjhBLNGZLpRHFSeaQj9_OzadUNQcPAzIF-A2igY-chPQW6xn3II87VaN3ytxds2kwKN958QmcT1CkklUa3aJyQzTHUL5LSXk3D675atxbUOk8WcUR8K-7xhAz2c68HC3B-upGZWjCmAov5zgPfK62yKtOXGkpL7iJ6r67/s717/asbn%2011.22.23%20v2.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="395" data-original-width="717" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDCRZJrxYT-IU4pz-0D9R3Yy5BjhBLNGZLpRHFSeaQj9_OzadUNQcPAzIF-A2igY-chPQW6xn3II87VaN3ytxds2kwKN958QmcT1CkklUa3aJyQzTHUL5LSXk3D675atxbUOk8WcUR8K-7xhAz2c68HC3B-upGZWjCmAov5zgPfK62yKtOXGkpL7iJ6r67/s16000/asbn%2011.22.23%20v2.png" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p>I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about the five key skills in good decision making. As you will learn, being knowledgeable, intuitive, receptive, nimble and flexible are your keys to success here. I thought this video turned out great, and I wanted to share it with all of you, to help you make better decisions in your business. I hope you like it!!</p><p></p><p></p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6341066759112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-20624592537033642192023-11-08T10:43:00.002-06:002023-11-08T10:43:54.953-06:00Lesson #356: Artificial Intellegence is Revolutionalizing Sales Coaching<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzWmrNxqlOn3D9gCystoOreuOBopr42xZ5apzUy7srK7jLN-RE6bjWBI_MPkDI5dTxyAS2GYuOfx9aKTyULfymY6eIneq6eDHTSo-mKKMiPQZT7LyL405dJmqhaCjQqtlqwixuw-GBEuzU_3NHJC5jCZzTBH0J92YYrmpffp-PyasiyaXum44Oar8oHV40/s1024/AI4.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1024" data-original-width="1024" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzWmrNxqlOn3D9gCystoOreuOBopr42xZ5apzUy7srK7jLN-RE6bjWBI_MPkDI5dTxyAS2GYuOfx9aKTyULfymY6eIneq6eDHTSo-mKKMiPQZT7LyL405dJmqhaCjQqtlqwixuw-GBEuzU_3NHJC5jCZzTBH0J92YYrmpffp-PyasiyaXum44Oar8oHV40/s320/AI4.png" width="320" /></a></div><br />I was recently introduced to <a href="https://www.linkedin.com/in/jcritelli/">James Critelli</a>, a startup sales and marketing expert that is advising a company called <a href="https://www.sybill.ai/?">Sybill</a>, who is using artificial intelligence (AI) and automation to streamline the workflows of B2B sales reps. One of the applications of that technology is helping to revolutionize how sales coaching is done. They had some great ideas and solutions on this topic, and agreed to collaborate with me on this Red Rocket lesson, to help jump start your sales coaching to next generational thinking.<br /><div>___________</div><div><br /></div><div>The world of sales coaching is changing rapidly, and as a sales leader, you need to be on top of the game. That's where generative AI, like ChatGPT, comes in. While generative AI has found a ton of use cases already in marketing and software development, its potential in sales, sales coaching, and training, and revenue operations is still in its infancy to be explored. In this post, we'll discuss how generative AI can elevate your sales coaching game, drive your team to hit quotas and propel your business forward.<p><b>The Role of AI in Modern Sales Coaching</b></p><p>AI has permeated almost every aspect of our lives, and sales coaching is no exception. Traditional sales coaching methods are increasingly being replaced by AI-driven tools and techniques that can help sales leaders and coaches analyze data, identify areas of improvement, and provide personalized training to their sales reps.</p><p><u>Why Generative AI Matters for Sales Leaders</u></p><p>Generative AI, such as ChatGPT, can generate human-like text based on a given input, making it an invaluable resource for sales leaders. All you need to do is figure out what to give ChatGPT as the context and the prompt, and it can play a variety of roles for you. In this post, we will discuss how you can use ChatGPT (or similar generative AI text systems) to roleplay a customer call, serve as a learning management tool for the product marketing material and other company-specific context for new reps, and help you identify weaknesses in reps’ handling of customers by analyzing call transcripts and emails and pointing out the issues. </p><p>With the power of generative AI, sales leaders can automate various aspects of sales coaching, freeing up time for more strategic tasks and enabling them to focus on what matters most: driving revenue and leading their teams to success.</p><p><b>Identifying Coaching Opportunities With Generative AI</b></p><p><u>Analyzing Sales Rep Performance</u></p><p>Generative AI can analyze vast amounts of data, including sales rep performance metrics, to pinpoint areas that require attention. By identifying trends and patterns in how the rep has handled customer conversations on the phone, video calls, and emails, AI-driven tools can help you develop targeted coaching initiatives to address specific weaknesses.</p><p>For example, we fed the transcript of an old call to ChatGPT, and asked it to pinpoint the salesperson Nishit's areas of improvement from this call. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdeP0TPyQzoBY58J-SKgiEBJicXJA0B7pOeAEd8Zs9_-VWWFXEdr-29JNtvEynChpPycTG-AT5Xavq6CDkDl16v4Q3ls0sTqT8W8mSm7KwJYFSCCfBUjxgzFMTQYGnf6wKtTrEGCxxGuXUjU0NFRi9RpMqr2G3I5ByJckyfsI3FJItvYJrGV3B5koh7Ph6/s1600/AI1.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1600" data-original-width="1584" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdeP0TPyQzoBY58J-SKgiEBJicXJA0B7pOeAEd8Zs9_-VWWFXEdr-29JNtvEynChpPycTG-AT5Xavq6CDkDl16v4Q3ls0sTqT8W8mSm7KwJYFSCCfBUjxgzFMTQYGnf6wKtTrEGCxxGuXUjU0NFRi9RpMqr2G3I5ByJckyfsI3FJItvYJrGV3B5koh7Ph6/w396-h400/AI1.png" width="396" /></a></div><br /><p>These are helpful starting points, and should already get your wheels turning. What did we do next?</p><p>We asked it to give us specific examples from the conversation where the salesperson did poorly in “asking open-ended questions”, and a few sample ways in which the salesperson could have done better. </p><p><u>Targeting Key Areas For Improvement</u></p><p>Once you've identified the areas where your sales reps need improvement, generative AI can provide insights into the best ways to tackle these issues. By generating personalized coaching plans, AI can empower you to provide tailored guidance that truly resonates with each member of your team.</p><p><br /></p><p><b>AI-Powered Training and Development</b></p><p><u>Leveraging LLM-Generated LMS Systems</u></p><p>Generative AI can also play a crucial role in creating and maintaining Learning Management Systems (LMS). By generating customized LMS content tailored to your sales reps' specific needs, you can ensure they receive relevant training that helps them develop the skills they need to excel in their roles.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXHLKAnAWkdSJbUW8QW02bKA_ZByOsBk-94T_Scze_rv8gssnWLgr7iwGCZHzKDQVBHzWV8cQO2B_yFuUpgpHo5fKdVIFsmFdmOiPh6H4c5ZeOuk25EKWKzQtkyQxhmGsjtVwQ3SJIE9EPn4CSAWfziP5U9xBNU9CxkDBg9k1bREZiYwBgvkfNndpD3NVr/s1600/AI2.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1600" data-original-width="1560" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXHLKAnAWkdSJbUW8QW02bKA_ZByOsBk-94T_Scze_rv8gssnWLgr7iwGCZHzKDQVBHzWV8cQO2B_yFuUpgpHo5fKdVIFsmFdmOiPh6H4c5ZeOuk25EKWKzQtkyQxhmGsjtVwQ3SJIE9EPn4CSAWfziP5U9xBNU9CxkDBg9k1bREZiYwBgvkfNndpD3NVr/w390-h400/AI2.png" width="390" /></a></div><br /><p><u>Customizing Quizzes and Assessments for Each Sales Rep</u></p><p>AI-driven tools can also create personalized quizzes and assessments that test your sales reps' understanding of the training material. This allows you to gauge the effectiveness of your training programs and make any necessary adjustments to help your team reach its full potential.</p><p><br /></p><p><b>Roleplaying Sales Scenarios With Generative AI</b></p><p><u>Preparing for Important Calls</u></p><p>Roleplaying is a tried-and-true sales coaching technique, and generative AI can take it to the next level. By simulating various sales scenarios, AI-driven tools can help your sales reps practice their pitch, objection handling, and closing techniques before they ever step foot in a real sales call.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh33lu28aNyKOPJlFWf5dXbwkkhjzRa7jSpmy0IyDBpGmPHF_v_o64W8jm_dpohlvX3ehA2DOgOXxki2cRhpZbMmusOg1uB0a39gRAS697jBdcWph0RyNBoaPkHJ4d8sxJkf6zsxXRDZK04f81DAJZORQaDtusVmlpBiCBUfvNSOqBBUzt2f1QtHbJqY2hq/s1600/AI5.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1208" data-original-width="1600" height="303" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh33lu28aNyKOPJlFWf5dXbwkkhjzRa7jSpmy0IyDBpGmPHF_v_o64W8jm_dpohlvX3ehA2DOgOXxki2cRhpZbMmusOg1uB0a39gRAS697jBdcWph0RyNBoaPkHJ4d8sxJkf6zsxXRDZK04f81DAJZORQaDtusVmlpBiCBUfvNSOqBBUzt2f1QtHbJqY2hq/w400-h303/AI5.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiAEDYn8cFL_OfwpR16NgGDi_f-_CEx_wPUDhXMXIrDQC6pMyG3hwRNcyJthWvEz95DFv-39MW_mwMRKzzmZP9Hnt1sE1GXYqWDIJ8bQFxacdIS72tAoVSl6w24ssXvSFs09ROufuIXS2voXOKMlaNRepkBrH6_qadp3puJJlYDulOEX2ZVQDZdLwhalYeb/s1600/AI3.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="961" data-original-width="1600" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiAEDYn8cFL_OfwpR16NgGDi_f-_CEx_wPUDhXMXIrDQC6pMyG3hwRNcyJthWvEz95DFv-39MW_mwMRKzzmZP9Hnt1sE1GXYqWDIJ8bQFxacdIS72tAoVSl6w24ssXvSFs09ROufuIXS2voXOKMlaNRepkBrH6_qadp3puJJlYDulOEX2ZVQDZdLwhalYeb/w400-h240/AI3.png" width="400" /></a></div><p><u>Enhancing Communication Skills Through AI-Driven Feedback</u></p><p>Generative AI can also provide real-time feedback on your sales reps' communication skills during roleplay sessions. This can help them fine-tune their approach, resulting in more effective sales calls and, ultimately, higher close rates.</p><p><br /></p><p><b>AI-Assisted Call Scripts for Discovery and Demo Calls</b></p><p><u>Crafting Personalized Call Scripts</u></p><p>Generative AI can generate personalized call scripts for discovery and demo calls based on a sales rep's unique selling style and the prospect's specific needs. This can ensure that your sales reps are always equipped with the right talking points to guide their conversations with potential customers.</p><p><u>Gaining Insights from AI-Generated Script Analyses</u></p><p>By analyzing the AI-generated call scripts, sales leaders can gain valuable insights into what works and what doesn't in their team's sales conversations. This information can then be used to provide targeted coaching and feedback, helping your sales reps refine their approach and improve their overall performance.</p><p><br /></p><p><b>Measuring the Impact of AI-Driven Sales Coaching</b></p><p><u>Tracking Progress and Growth</u></p><p>By incorporating generative AI into your sales coaching efforts, you can easily track the progress and growth of your sales reps over time. AI-driven tools can help you monitor key performance indicators (KPIs) and other metrics to measure the effectiveness of your coaching initiatives, allowing you to make data-driven decisions and continuously optimize your coaching strategies.</p><p><u>Celebrating Success and Motivating Your Team</u></p><p>As your sales reps begin to see the results of your AI-powered coaching efforts, their motivation and engagement will likely increase. Be sure to celebrate their successes and use their achievements as an opportunity to reinforce the value of AI-driven sales coaching, fostering a culture of continuous learning and improvement within your team.</p><p><br /></p><p><b>Conclusion</b></p><p>Generative AI has the potential to revolutionize sales coaching, transforming the way sales leaders support their teams and drive performance. By embracing the power of AI-driven tools like ChatGPT, you can elevate your sales coaching game, boost your team's productivity, and ultimately grow your business to the next level.</p><p>_____________________</p><p>Thanks again to James and the <a href="https://www.sybill.ai/?">Sybill</a> team for helping me with this post. If you have any further questions on this topic, feel free to reach out to Sybill at 650-289-8160 and <a href="https://www.linkedin.com/company/sybill/">follow them on LinkedIn</a> for future learnings here, as I am sure there will be many new advancements with AI in the coming years.</p><p><br /></p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p><p><br /></p></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-92128318179774279222023-11-02T10:16:00.002-05:002023-11-02T10:16:32.288-05:00Lesson #355: Artificial Intelligence is Taking Over Marketing<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgR0Eyag10rJ5aerc0Jv5FNSKDGKcQJXUt42asIxZGPBnSEcQZGVT8t0G0ukYSiZZYlwAKUWGIErDdrQa47VUZS7POgdAjBQ9Lqd7QZogiF0JJ4swfgsCTqV5oqb52tYRXs5kegyA2uCyiDJdTYI_Gna9syoBmR3XVAJ5PKR31qiXyFhqkg5dYwVnbx-FOo/s568/blog-AI.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="568" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgR0Eyag10rJ5aerc0Jv5FNSKDGKcQJXUt42asIxZGPBnSEcQZGVT8t0G0ukYSiZZYlwAKUWGIErDdrQa47VUZS7POgdAjBQ9Lqd7QZogiF0JJ4swfgsCTqV5oqb52tYRXs5kegyA2uCyiDJdTYI_Gna9syoBmR3XVAJ5PKR31qiXyFhqkg5dYwVnbx-FOo/s16000/blog-AI.png" /></a></div><br /><p></p><p>Artificial intelligence (AI) has been around for decades. I won’t bore you with its long history, <a href="https://martech.org/artificial-intelligence-a-beginners-guide/">summarized well in this article</a>. It has even had a significant role in the marketing industry for many years (e.g., predictive analytics used in many advertising platforms). But, what has recently caught storm is the use of generative AI in the creation of many marketing creatives. Largely because the technologies are more accessible and easier to use than ever before. I feel the industry is at the cusp of a major inflection point, and you better learn what is going on in this space, or you may be left behind.</p><p><b>Industry Research</b></p><p>There was a very good <a href="https://botco.ai/wp-content/uploads/Botco.ai_The-State-of-GenAI-Chatbots-in-Marketing_-Digital-Report_V4.pdf">industry research study</a> completed in March 2023 by <a href="http://Botco.ai">Botco.ai</a>, a generative AI cloud chat communications company. They surveyed 1,000 marketing professionals across over 16 different industries and company sizes from 1 to 5000+ employees. The results were fascinating—they learned that a whopping 73% of the respondents are already using generative AI to help create text, images, videos or other content. That was the weighted average of B2B companies at a 78% usage rate and B2C companies at a 65% usage rate (I would have guessed the reverse of that). With me being in the 17% that were not materially using AI today, I figured I needed to learn more here, and fast, to stay competitive with our industry peers.</p><p><b>Content Being Produced by Generative AI</b></p><p>The content getting created by generative AI is broad in scope. The survey respondents said they were using it as follows: email copy (44%), social media copy (42%), social media images (39%), chatbots for customers (37%), website images (36%), SEO content (35%), blog post copy (33%) and marketing/sales collateral (33%). The rationale for using generative AI being: (i) you can improve your marketing performance (58%); (ii) you can improve your creative variations (50%); (iii) it is more cost effective than traditional ways of building creatives (50%); and (iv) it is materially faster creative cycles (47%). I would add the additional benefits of better personalizing the content to the exact user, instead of applying a <a href="http://redrocketvc.blogspot.com/2022/10/lesson-347-do-not-apply-one-size-fits.html">one-size-fits-all approach to your marketing</a> creatives. </p><p>And, to be clear, the content being produced by AI is across all forms of creatives: text, images, videos, coding, etc. It is revolutionizing pretty much everything a graphic designer or copywriter or website developer used to do for you. As an example, check out this <a href="https://share.synthesia.io/940b2519-1c77-4a23-a9ba-09ef0735ddc2">corporate video produced for my Restaurant Furniture Plus business</a> by Synthesia’s AI technology. It was produced in a couple minutes from a simple copy and paste of our About Us copy on our website, without any human involvement or professional actors involved. That is pretty amazing (and scary if this life-like technology is not used in positive ways).</p><p><b>The Generative AI Tools Most Used</b></p><p>According to the survey respondents, these were the technologies most used by the marketers. <a href="https://openai.com/blog/chatgpt">ChatGPT</a> (55%) for human-like text. <a href="http://Copy.ai">Copy.ai</a> (42%) for natural language processing. <a href="http://Jasper.ai">Jasper.ai</a> (35%) for copywriting. <a href="http://Peppertype.ai">Peppertype.ai</a> (29%) for full article copy. <a href="https://prisma-ai.com/lensa">Lensa</a> (28%) for image editing. DALL-E (25%) for text-to-image generation. <a href="https://www.midjourney.com/">MidJourney</a> (24%) for text-to-image generation. I am sure there are many others to experiment with, but these are the ones that the early adopters are using today. I personally played with a few of these. I would summarize my experience as the text based solutions were a lot more impressive in terms of producing high quality output than the image based solutions, understanding we are still early in the learning curve and technology advancements here.</p><p><b>How to Prepare… and What Happens if You Don't</b></p><p>First, it's time to embrace the simple fact that you need generative AI and that you can't ignore it. It isn't going away. So, slowly but steadily, immerse yourself in some (or all) of the tools above — how they work and what they can potentially offer. And, if you are working with a marketing agency, make sure that it, too, is well-versed in all the advancements (if yours is not currently using AI to improve campaigns, it may be time to look for a new one).</p><p>The ramifications for non-action will be swift: You either jump on board or prepare to eat the dust of the other AI first-movers — will essentially be going into a marketing battle with one arm tied behind your back. Performance will suffer (including lower engagement rates compared to competitors), as will profits.</p><p><b>What Does This All Mean?</b></p><p>Hopefully, you have a better understanding of all the advancements that are taking place in the marketing world today. Will generative AI end up replacing your human teams? Not entirely. I think it will make the humans materially more efficient, and you may need less humans than before, but humans will still be needed for strategic direction and quality control, to protect their brands. For example, if AI generated copy will upset Google and hurt your search rankings, someone will need to review that content and make sure it follows all of Google's rules. So, think of AI as an augmentation tool built for speed and efficiency, not as a full human replacement. You will still need to engage your marketing agencies or marketing teams, but they will be doing their work in material different, and presumably better, ways.</p><p>Every decade or so, the marketing industry appears to go through a rapid period of innovation and innovation. It feels like we are in the "early innings" of this most recent revolution, and I am excited to see how these AI technologies improve from here, and what additional AI advancements we will see in the coming years. It is time to pull up your boot straps and buckle in, as it is gonna be a helluva ride! Good luck as you experiment with these technologies on your own.</p><div><br /></div><div>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</div><div><br /></div><div><br /></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-3566803386560059862023-11-01T14:54:00.001-05:002023-11-01T14:54:31.689-05:00When Investing, Chasing Growth May Cost You Millions<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZ-_jhVBaOb3nQeTP2mdpmICMGiItPlATXxyiVfVFSie17akq1PGaJewRJ0JMMzq6C9hdaZvJzDYSj9t9AiN1RWNy3FXfqJvbMIrJpXokcfFM9tP9sDM3JPQcHbwmMYx51LIBOI-5quTCrlMVZW-Ej7oqQa6Sjb302W-fGZ_bIWX3pC0TKoiBFFhDUcGLk/s522/blog-ROI.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="274" data-original-width="522" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZ-_jhVBaOb3nQeTP2mdpmICMGiItPlATXxyiVfVFSie17akq1PGaJewRJ0JMMzq6C9hdaZvJzDYSj9t9AiN1RWNy3FXfqJvbMIrJpXokcfFM9tP9sDM3JPQcHbwmMYx51LIBOI-5quTCrlMVZW-Ej7oqQa6Sjb302W-fGZ_bIWX3pC0TKoiBFFhDUcGLk/s16000/blog-ROI.png" /></a></div><br />I was recently speaking with an entrepreneur who'd passed on an investment because it would not need yield the company at least a 10x growth opportunity. I told him those returns might be reasonable when investing in small businesses (under $5 million) but that he should consider lowering his ROI threshold when investing in larger ones. My logic was twofold: first, bigger companies are harder to grow as quickly as small ones, so the growth percentages will be lower; and second, there's the potential to make substantially more money on a bigger company investment, even if the ROI was only 3x to 5x. Here's how to know when it's better to focus on percentage returns vs. dollar returns when assessing your investment opportunities.<p></p><p><a href="https://www.entrepreneur.com/money-finance/when-investing-should-you-go-for-percentage-or-dollar/463138">Read the rest of this post in Entrepreneur</a> which I guest authored this week.</p><p>For future posts, please follow me on Twitter at: @georgedeeb.</p><p><br /></p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-62015313602251185182023-10-24T14:30:00.003-05:002023-12-13T14:56:14.685-06:00[VIDEO] When and How to Pivot your Business<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh6Pl7akATCq3FjcnB1uV9oeYYYDrCPLVosilI_uPGqnjlGyW6j73wZmzMSrVg80z3EfVfwnu2Un4HQsGbWAdvgCbgU1ggPY0V4B8ydDw05WfYjcH36uW3ykDIWGZ24U7tpGPesNY6LiAcNlo3qVdKQ_CeErcjK-9exa64w8Ki-0pTfgCnzMVG82QxNz8w5/s564/asbn%2010.24.23.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="307" data-original-width="564" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh6Pl7akATCq3FjcnB1uV9oeYYYDrCPLVosilI_uPGqnjlGyW6j73wZmzMSrVg80z3EfVfwnu2Un4HQsGbWAdvgCbgU1ggPY0V4B8ydDw05WfYjcH36uW3ykDIWGZ24U7tpGPesNY6LiAcNlo3qVdKQ_CeErcjK-9exa64w8Ki-0pTfgCnzMVG82QxNz8w5/s16000/asbn%2010.24.23.png" /></a></div><br /><p>I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about understanding when and how to pivot as a small business owner. As you will learn, sometimes a business may simply need to fix their marketing efforts to jump start their revenues, but when that does not work, a business model pivot is your next option to save your business. I thought this video turned out great, and I wanted to share it with all of you, to help you assess if a pivot may be needed in your own business. I hope you like it!!</p><p></p><p></p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6339531072112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-33693359380028574022023-10-02T12:07:00.000-05:002023-10-02T12:07:51.542-05:00[VIDEO] Does Age Matter for Startup Success?<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjbWSCr438RAiYn3puPMJwfcUNier5F7yPrrEMALWNwuQeOKBGvZNJYObgZra46YYved8oUVjBPSdwtTcwlXDDUOEclXtGTkioubKMYunMU6E8LYM6q3rgeYhw71tcteYPSLYTBFKnffMQ2aHFvi-IToFm527kEBfqGeJnapwCdFAVEEtfbKkQ_3d2WnoD/s600/asbn%2010.2.23.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="314" data-original-width="600" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjbWSCr438RAiYn3puPMJwfcUNier5F7yPrrEMALWNwuQeOKBGvZNJYObgZra46YYved8oUVjBPSdwtTcwlXDDUOEclXtGTkioubKMYunMU6E8LYM6q3rgeYhw71tcteYPSLYTBFKnffMQ2aHFvi-IToFm527kEBfqGeJnapwCdFAVEEtfbKkQ_3d2WnoD/s16000/asbn%2010.2.23.png" /></a></div><br />I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about whether age matters for startup success. As you will learn, it is less about age, and more about past experience that drives success, and that past experience often comes with age or mentorship. I thought this video turned out great, and I wanted to share it with all of you, to see how age has impacted the several case studies discussed. I hope you like it!!<p></p><p></p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6338018488112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-44580417476587442572023-09-06T14:35:00.000-05:002023-09-06T14:35:51.690-05:00Lesson #354: Owned, Paid and Earned Media Channels<p> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6D8qcwTTOUu00UMJ8OQOtJAZTy4Tce1zMN7gvLIq28zcqoaZx7oAnkJMikIBbZ6HkMG2xVeRngh_L489xkG2nCsqBwMyI65NLVQRngzWIF5LnFUCjp2PlCW3yIzxgavJ8WB2T8-rqujQRaN3kLIND7rfpoA0zOG4PkP_3MbJ0pswzDBeyutTGEdAIKIPI/s574/paid%20owned%20earned%20media.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="319" data-original-width="574" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6D8qcwTTOUu00UMJ8OQOtJAZTy4Tce1zMN7gvLIq28zcqoaZx7oAnkJMikIBbZ6HkMG2xVeRngh_L489xkG2nCsqBwMyI65NLVQRngzWIF5LnFUCjp2PlCW3yIzxgavJ8WB2T8-rqujQRaN3kLIND7rfpoA0zOG4PkP_3MbJ0pswzDBeyutTGEdAIKIPI/s16000/paid%20owned%20earned%20media.png" /></a></p><p>Effective marketers know the "trinity" of a good media strategy is effectively communicating your story across the intersection of three distinct media channels: owned media, paid media and earned media. This post will demystify these channels for you, to ensure you are effectively marketing across all three.</p><p><b>Owned Media</b></p><p>Owned media is exactly what it sounds like, properties that you own and entirely control. That includes assets like your website, mobile apps and email database. That includes ways of communicating to your customers through those assets, like website design, ad creatives, email marketing and SMS text based marketing. And, lastly, it includes data analytics, reporting and conversion rate optimization tools that help you glean actionable insights from your owned media activities.</p><p><b>Paid Media</b></p><p>Paid media is buying your way into getting discovered. For most startups, that includes things like paid search ads (e.g., Google, Microsoft), paid social ads (e.g., Facebook, Instagram, LinkedIn, TikTok, Pinterest, Twitter), paid shopping listings (e.g., Google, Amazon, Walmart) and display advertising across various sites or programmatic advertising networks across the Internet. This too requires disciplined tracking and reporting tools, and can assess campaign performance/conversions and properly attribute cross channel marketing touchpoints to a specific customer.</p><p><b>Earned Media</b></p><p>Earned media is taking actions, other than paid advertising, that result in getting your business promoted on third party websites. This includes things like search engine optimization for organic traffic, press releases that get picked up by other publishers, content marketing on your blog that gets indexed by search engines, affiliate marketing and social media communications or influencer marketing that get shared virally through the social networks. Again, supported by any required tracking and reporting tools for measurement and optimization.</p><p><b>An Integrated Holistic Approach Spans All Three Media Channels</b></p><p>If you are simply sending your messaging through one of the above three channels, you are leaving a lot of potential growth opportunities off the table. It is important for each campaign you are managing that you include a strategy and budget for all three of the above channels, as the real marketing magic happens when they are running concurrently across all three channels. You want to make sure wherever your target users are engaging, that your message is showing up loud and clear. That includes on your sites, marketplaces, news articles, search engines, social media or wherever else customers may be looking for inspiration prior to purchasing products.</p><p><b>How to Manage This</b></p><p>Larger companies typically have departments of people that do each of these stand alone tasks required. But in smaller businesses, they don't have that luxury. So, they often have to rely on agencies that can assist them with each of the above needs. Some companies engage specific agencies for each point solution (e.g., an SEO agency to assist with organic search traffic growth). Some companies engage one agency that can function across all channels, and do all of the above through one service. </p><p>It is harder to find a good "Jack of all Trades" that can do each of these services well, in one agency. But, they are out there. So, if you can find them, that is the preferred path, as they can provide many advantages for you. They can enable consistent goal setting and messaging across all channels. They can also better help you with cross channel attribution measurement, by centrally managing all channels in one agency.</p><p>But, in all cases, it is critical you lay out your clear key performance indicators of success, and measure them religiously. That could be setting lower funnel goals like leads, conversions or sales. Or it could be setting upper funnel goals like brand awareness, brand intent or customer database growth. Figure out what KPI is most important for your business and goals, and make sure all people doing the work, internally or externally, are measuring each of the above campaigns, across all channels, against the agreed upon KPI metrics.</p><p><b>Closing Comments</b></p><p>Hopefully, to many of you, you are already doing a lot of this in your current marketing efforts. But, for those of you that are not, effectively managing each of these three channels is pretty much "table stakes" today, for setting up a winning marketing campaign. Good luck!!</p><p><br /></p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-79082211319338193472023-08-31T12:32:00.001-05:002023-08-31T12:32:32.919-05:00[VIDEO] What Matters Most? Product or Proof-of-Concept?<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxq4rRkO1gT2Zjk6OzmyaDOKODR3rAp1AbeQJJSRYCPGAcnTvj1BADo0fbjj-Osr_EukQPovGfX8aM29hhws5FKFy9dhm7zRqludyktYJu_otb2it4QzEXnIFvF8bSwcKP0lOf_Z1jofkCuK1gMxvAunHV8m2J51MJ18-SnuOJmYlW8Jij5DUgByqeumK8/s597/asbn%208.31.23.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="330" data-original-width="597" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxq4rRkO1gT2Zjk6OzmyaDOKODR3rAp1AbeQJJSRYCPGAcnTvj1BADo0fbjj-Osr_EukQPovGfX8aM29hhws5FKFy9dhm7zRqludyktYJu_otb2it4QzEXnIFvF8bSwcKP0lOf_Z1jofkCuK1gMxvAunHV8m2J51MJ18-SnuOJmYlW8Jij5DUgByqeumK8/s16000/asbn%208.31.23.png" /></a></div><br />I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about what is more important to investors, the product or the proof-of-concept you are getting around that product. As you will learn, most investors are flexible on products, and it is more important that the "proof is in the pudding". I thought this video turned out great, and I wanted to share it with all of you, to see if it can be helpful to you in crafting your investor pitches. I hope you like it!!<p></p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6335286583112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-75430374389238605792023-08-04T13:43:00.000-05:002023-08-04T13:43:08.963-05:00Generative AI is Revolutionizing Marketing<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7ijQNPGl3UXXDwLhneI2zyiEhLNY4izRZcwh969LreIUeojcsQ1oIM5ADDzCHH1Iq8UVJjhYFjkpedElYDWLzous4oIsgnq53VJvGXmS9IQlEuOHpvXkAJVA4FmORA9ClsqFyjbj6mp5HKuNoY-4KnQoT-eCtPYxV56-TAOpPl_zqQOTL0ugfcPBq6K7T/s568/blog-AI.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="360" data-original-width="568" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7ijQNPGl3UXXDwLhneI2zyiEhLNY4izRZcwh969LreIUeojcsQ1oIM5ADDzCHH1Iq8UVJjhYFjkpedElYDWLzous4oIsgnq53VJvGXmS9IQlEuOHpvXkAJVA4FmORA9ClsqFyjbj6mp5HKuNoY-4KnQoT-eCtPYxV56-TAOpPl_zqQOTL0ugfcPBq6K7T/s16000/blog-AI.png" /></a></div><br /><p>Contrary to prevailing storytelling that it just arrived in the waning months of 2022, artificial intelligence has been around for decades. I won't bore you with the entire history (though it's summarized <a href="https://martech.org/artificial-intelligence-a-beginners-guide/">well in this article</a>); suffice it to say that it has played a significant role in the marketing industry for decades, including in predictive analytics used in many advertising platforms. But what has recently caught fire is the use of generative AI in marketing creatives, largely because the technologies are more accessible and easier to use than ever before. Though this perhaps goes without saying at this point, the industry is at an inflection point, and businesses better learn what is going on in this space, or they will be left behind.</p><p><a href="https://www.entrepreneur.com/growing-a-business/ai-is-transforming-marketing-ready-or-not/455160">Read the rest of this post in Entrepreneur</a>, which I guest authored this week.</p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-46517105193536960912023-07-26T12:41:00.004-05:002023-08-05T09:39:40.865-05:00[VIDEO] Consider a 'Copycat' Strategy for Your Next Startup<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikxPKMzzzi7fU5xKR5T4eCWSLW5ngDDWPz3FXOsFnPbqAm33A7WUpqrXL1gS0qOszX_MlSEBHPT5zS8i2pGLssBqqM8njDL5Lt3KyNauirQz9IjofGkg-1cBLwT2aGpPJqgBdWomeCohHWqtSpcJ79TyoVl_BQASvUUn5Tg4Blt4GYm1QZxHIuZ80Dwbb8/s629/asbn%207.26.23.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="364" data-original-width="629" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikxPKMzzzi7fU5xKR5T4eCWSLW5ngDDWPz3FXOsFnPbqAm33A7WUpqrXL1gS0qOszX_MlSEBHPT5zS8i2pGLssBqqM8njDL5Lt3KyNauirQz9IjofGkg-1cBLwT2aGpPJqgBdWomeCohHWqtSpcJ79TyoVl_BQASvUUn5Tg4Blt4GYm1QZxHIuZ80Dwbb8/s16000/asbn%207.26.23.png" /></a></div><br /><p>I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about how "copycatting" the successful business strategies of others may be a profitable way to grow your next startup. As you will learn, piggybacking on the research and proven success of others, can help you materially preserve your precious startup capital and realize outsized returns with "proven winner" ideas. I thought this video turned out great, and I wanted to share it with all of you, to see if it can be helpful to you in ideating your next startup. I hope you like it!!</p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6331499674112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-26490459042455220962023-07-14T10:15:00.000-05:002023-07-14T10:15:12.500-05:00Lesson #353: Staffing Your Finance Department as You Scale<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhcrOPNlo9bWCC42fTkufBICPgvwgTWsX4A86nUw2DD-p2-5ZuighRIWvxqbG6dZ43J42gyh9AzchaqL26z_GvBvuJLPcDTm3v-MwFuaRG0IzogDOFOoK0bjVVfA8bqsFAl-hojHfFV0sD9XIf2e9sS3iyadjewdjULr3bSXfqKQCgBf0ROLt3aD1XIviR/s601/blog-finance%20staffing.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="338" data-original-width="601" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhcrOPNlo9bWCC42fTkufBICPgvwgTWsX4A86nUw2DD-p2-5ZuighRIWvxqbG6dZ43J42gyh9AzchaqL26z_GvBvuJLPcDTm3v-MwFuaRG0IzogDOFOoK0bjVVfA8bqsFAl-hojHfFV0sD9XIf2e9sS3iyadjewdjULr3bSXfqKQCgBf0ROLt3aD1XIviR/s16000/blog-finance%20staffing.png"></a></div><br>I was recently introduced to <a href="https://www.linkedin.com/in/timdebone">Tim DeBone</a> a finance and accounting expert with <a href="https://bagchigroup.com/">The Bagchi Group</a>, a business consultancy group in Morrisville, NC. He had some interesting suggestions about how best to staff your finance and accounting function within your company, and how that changes over time as the the company scales. He was kind enough to assist me in writing this how-to lesson and sharing it with our Red Rocket Blog readers. <p></p><p><b>Introduction</b></p><p>As tech companies grow and evolve, the company's finance/accounting requirements and challenges change along with the skills needed to successfully complete them. Because of that, your first finance hire may not always have the right skillset for when the company is 10 times the size, as an example. And, you may need to augment that team with fractional strategic level help. To address the variability in the work and the time required to complete, many high-growth companies use outsourced bookkeepers and fractional CFOs during their early years, until they can better afford full-time talent of their own. In this article we discuss the appropriate resources a CEO can engage to ensure the finance suite is properly managed, along each stage of the company's growth, and whether that talent should be outsourced or internally staffed.</p><p><b>Role Descriptions</b></p><p>Before we dig in, here is a brief description of the roles discussed in this article below, so you can better understand what we are going to be talking about here:</p><p></p><ul style="text-align: left;"><li>CFO – Senior Finance Person with normally 15+ years of finance/accounting experience</li><ul><li>Can come from a finance background with roles that are analysis heavy</li><ul><li>Their accounting background is normally deep in their industry of focus, but weaker outside that industry</li></ul><li>Can also come from an accounting background with roles that were focused on preparing financial statements</li><ul><li>Their analysis background is not as strong, but they may have taken roles in the past to improve this skillset</li></ul></ul><li>Bookkeeper – transactionally focused employee that runs payroll, collects invoices, and pays bills</li><ul><li>Does not require any formal finance or tax background</li></ul><li>Accountant – a certified professional with an educational background in accounting, able to perform all the duties of the bookkeeper</li><ul><li>The accountant is senior to the bookkeeper with a better understanding of GAAP principles and why accounting entries need to happen</li><li>Will partner with CPA firm on financial reviews and audits</li></ul></ul><p></p><p></p><ul style="text-align: left;"><li>CPA Firm – Outside accounting experts that partner with businesses on tax issues and review of financial statements, including financial audits, if needed.</li><ul><li>They can also help identify small business and R&D tax credits to reduce tax liabilities</li></ul></ul><p></p><p><b>At Formation (Pre Revenue)</b></p><p>At the start, the CEO can manage the core finance functions. Software systems are now sophisticated enough that non-finance professionals can manage early-stage payroll, collections, and payments. Depending on the growth path or complexity of the business model, the CEO may want to engage a fractional CFO to help create the forecast and cash planning. But until the company has significant revenue or outside investors, the CEO can complete most activities. We would recommend that the company engage an outside accounting firm at formation to help with annual tax preparation. Even without the need for a financial review or audit, this resource prepares annual tax filings and significantly reduces tax risk for the company. </p><p><b>Pre-Seed Stage (Generating Some Minimal Revenue) </b></p><p>Once the company has revenue and non-founder employees, they should engage an outsourced bookkeeper to take over the back-end transactional work. This involves running payroll, collecting from customers, and paying vendors. While these are straightforward tasks, the CEO hesitates to outsource them and their time is better spent guiding development or aiding sales. At this stage, a fractional CFO can help on a project-to-project basis, but the company will not have enough work for the CFO to require a preset amount of help each week. The CFO can improve metric tracking, evaluate back-office processes to prepare for growth, and help prepare the business for a seed raise. The CFO helps the fundraise by preparing employee and customer documents for investor diligence, ensuring the management team understands their growth metrics and benchmarks, and creating forecasts showing how investor funds will grow the business.</p><p><b>Seed Stage ($250K-$1MM in Revenue)</b></p><p>After raising a seed round, the investors may strongly suggest that the company employ a fractional or full-time CFO to manage the finances and strategic planning. The CFO will introduce budget vs actual analysis, scenario planning, and project out the cap table. Dilution calculations become more complex as the company hires more employees and brings in outside resources, especially when those new funds are SAFEs or Convertible Notes. The company may also switch from cash accounting to accrual (or GAAP compliant) accounting at this stage. Accrual accounting may be outside the skillset of the original bookkeeper so upgrading that role to a part time accountant may be required. Depending on how fast the company scales, that part time accountant may become a full time hire before the Series A fundraise is completed. That accountant, along with the CFO, will partner with the CPA firm to prepare annual tax returns and any financial reviews or audits.</p><p><b>Series A Stage ($1MM-$5MM in Revenue)</b></p><p>Once the company has raised a Series A, the CFO will be spending 8-10 hours weekly on the business. In addition to the previous work around strategic planning, the CFO will be building and training the back-office team, introducing additional risk mitigation processes, partnering with the CEO on tracking company performance, and partnering with the CPA firm on tax issues. The company will be growing quickly with increasing complexity across all back-office functions, referred to as General and Administrative (G&A) on most financial statements. The CFO will be managing and training the HR, Recruiting, Finance, Accounting, and Facility planning teams to enable the company to support the company’s growth. At this stage, a full-time junior level hire is required, either heavier on accounting or finance depending on the business model and the CFO’s background. With the expansion of the employee base and revenue base from additional growth, the CFO will need to identify and mitigate potential risks before they happen. Those risks can involve employees, security, legal, tax, or financial issues. Key Performance Indicators (KPIs) become essential as current investors, and future investors, will need to understand how the company performs versus targets and industry benchmarks. The CFO should also be measuring forward-looking metrics to anticipate whether the plan is succeeding or failing compared to pre-set plans and budgets which have been prepared by the CFO. </p><p><b>Late Series A or Series B Stage ($5MM-$10MM in Revenue)</b></p><p>If a company continues to grow and hit their metrics after the Series A fundraise, the workload will require a full-time CFO to join the team. The amount of effort required to help the next fundraise process, run the G&A team, and support the CEO will be too much for a fractional resource. Hiring this role before starting the Series B fundraising process allows time for the new CFO to learn the business and can assist with the fund raise. The fractional CFO should have the processes in place to enable a smooth transition, along with highlighting which areas need improvement to scale the business. Two full-time finance/accounting employees should be able to manage the business at the Series B start, but the company may want to expand the HR/Recruiting function at this time to include a full-time employee. </p><p><br></p><p>Hopefully, you now have a better understanding of how best to staff your finance and accounting needs as your business scales. Thanks again, <a href="https://www.linkedin.com/in/timdebone">Tim DeBone</a>, for your help with this post. If any of you need additional help around your finance team strategies, Tim is happy to help you answer any of your questions. Feel free to reach out to Tim at (704) 907-5866 or tim@bagchigroup.com.</p><p><br></p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-3196388746512520732023-06-23T15:23:00.000-05:002023-06-23T15:23:02.609-05:00[VIDEO] Calculating Addressable Market Size vs. Industry Size<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9tK612pYOA5lCdxa2q8rh5TcyZ9LeQqcq-jwSApUYMBG2QrKMZzl5npt1PaJOL0ny3BRMX_Spptli5LHHxhTbhsS9CWZrSgD5InYUe4DVvsZ-_RftSGdZliJx421DZuhLdBjDK2e5zl9_6I7sNSWb6RgTSm7T2Tge2E_izrHEaoomtAfH091v-M91zQgU/s601/asbn%206.23.23%20v2.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="338" data-original-width="601" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9tK612pYOA5lCdxa2q8rh5TcyZ9LeQqcq-jwSApUYMBG2QrKMZzl5npt1PaJOL0ny3BRMX_Spptli5LHHxhTbhsS9CWZrSgD5InYUe4DVvsZ-_RftSGdZliJx421DZuhLdBjDK2e5zl9_6I7sNSWb6RgTSm7T2Tge2E_izrHEaoomtAfH091v-M91zQgU/s16000/asbn%206.23.23%20v2.png" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><p>I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about how to calculating your total addressable market size, as opposed to your total industry size. As you will learn, your total addressable market size, which investors care most about, is a lot smaller than the industry overall. I thought this video turned out great, and I wanted to share it with all of you, to see if it can be helpful to you in sizing your market. I hope you like it!!</p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6329855395112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-71776396137855221642023-06-07T10:06:00.000-05:002023-06-07T10:06:06.975-05:00Lesson #352: Treat Your Team Members as People, Not as Employees<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglqxURb0h5QZtEY1Hqmmd2-_aQPQBTrG4hD8oZh-db04u_B7PObcNDxQfMLmI0RhsQKP55zfEQQTc_8YNEBfWElfZkJMbyVvZ-JIlFFv964SYBkDBrBi0rqKr_z2DJt-aIIok-JuivR7BtCtOY_0agjHdlNvwhpluFkFG6fuy9h_pd5kQCK2BrDcoyQQ/s399/blog-people%20not%20employees%202.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="266" data-original-width="399" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglqxURb0h5QZtEY1Hqmmd2-_aQPQBTrG4hD8oZh-db04u_B7PObcNDxQfMLmI0RhsQKP55zfEQQTc_8YNEBfWElfZkJMbyVvZ-JIlFFv964SYBkDBrBi0rqKr_z2DJt-aIIok-JuivR7BtCtOY_0agjHdlNvwhpluFkFG6fuy9h_pd5kQCK2BrDcoyQQ/s16000/blog-people%20not%20employees%202.png" /></a></div><br /><p>I have recently written about topics like <a href="http://redrocketvc.blogspot.com/2022/09/lesson-346-how-to-manage-virtual-team.html">how to manage a virtual team</a>, <a href="http://redrocketvc.blogspot.com/2023/02/lesson-349-consider-unlimited-vacation.html">considering an unlimited vacation day policy</a> and <a href="http://redrocketvc.blogspot.com/2022/08/lesson-345-swap-i-for-we-in-all.html">swapping “I” for “We” in all corporate communications</a>. Do you notice a consistent theme here? These are all policies that are very “employee friendly”—let your staff work from home, give them unlimited vacation days and let them all know how important they are as a member of the team. Why is this so important? Because recruiting and retaining employees are harder than ever, and the more things you can do to nurture long term loyalty to your business, the better your business will thrive and your employees will prosper. At the core of this message is learning to treat your staff as the “people” they are, and not the “employees” you may perceive them to be. What is the difference? Allow me to explain.</p><p><b>What is an Employee?</b></p><p>The Merriam-Webster dictionary would say an employee is “one employed by another usually for wages or salary and in a position below the executive level”. To me, the key words being “employed” and “below”. This feels like an employee works FOR the company, as one its “cogs in the wheel”, and not working WITH the company on more of an even footing with their work colleagues. Especially, when this definition starts to speak to layers of management, with employees working “below” higher layers of management. From the vantage point of an employee, that doesn’t sound very enticing?</p><p><b>What is a Person?</b></p><p>On the other hand, that same Merriam-Webster dictionary would say a person is “the personality of a human being”. To me the key words being “personality” and “human”. This suggests that all people are different, with different personalities, interests and personal drivers that make them tick. What works for one, does not necessarily work for another. So, the more you can cater to an individual’s “personal” needs, the better they will respond and the longer they will want to stay with your team.</p><p><b>What is Managing Employees?</b></p><p>Most all of us have been managed as employees at one point or another in our careers. Employees have very specific job descriptions, they are required to work rigid hours (most likely from a centralized office location) and report into a “boss” (who most likely feels more empowered and higher level). Everyone is treated exactly the same, with very little flexibility in what is allowed “on the job”. This is entirely “top down” in its design, with policies getting set by the top management.</p><p><b>How is Developing People Different?</b></p><p>On the flipside, developing people is more “bottoms up” in its design. The people can more freely set the policies of the company that they feel will best meet their personal needs. And, notice I used the word “develop” here and not the word “manage”. I am trying to emphasize that this is a two-way street where both parties need to be happy with the outcome. This could include letting your team members decide which days a week they work, for which hours each day, from whichever location they want and for however many vacation days they want (as long as their performance is good), with a culture where their ideas will be heard and potentially acted upon. Why? Because people have different needs, and the best companies will help them solve those needs and learn how to lean into those personal drivers as individual motivators. Which in turn, helps instill long term loyalty, especially when they can see their own ideas becoming acted upon.</p><p><b>Get Rid of the Word “Employee” in Your Business</b></p><p>As long as we are talking about words and definitions, we might as well throw out the idea of deleting the word “employee” from our company’s internal vocabulary. I much prefer the words “team member” or “associate”, as it speaks more to the theme we are trying to pound home in this article. It puts everyone on a more “even footing” and lets people know they are all beating to the same drum in an environment where everyone has each other’s backs. So get rid of any words in your company that could be interpreted as having hierarchies or rigidity. Maybe get rid of words like “boss” and “manager”, while you are at it, opting for terms like “mentor” instead. Of course, there will be clear reporting lines, but that doesn’t mean they are not equal “people”, with unique needs and ideas of their own who should be equally respected and nurtured.</p><p><b>The Expected Outcome</b></p><p>If you implement this correctly, your team will love your business and would never want to leave. Why would they—you have solved all their needs. Which means if you have very little staff turnover, you aren’t wasting a lot of time with repetitive recruiting needs. And, better yet, you are building long term institutional knowledge from team members who have truly “mastered their craft” over the years, helping to propel your business to new heights and reaching its fullest potential. And, your team will appreciate everything you have done for them, to help them better meet their “non-work” needs at home, and incorporate some of their good ideas into the company’s plans (which makes them feel valued and respected). Pretty much a win-win for all involved.</p><p><b>Closing Thoughts</b></p><p>Hopefully, you now have a better appreciation for what makes “people” tick. And, that most people never want to be treated as an “employee”. The more you can customize the team member’s experience with your company, the better it will be for all involved. You will have happy team members singing your company’s praises, and you will be thrilled with the improvement in your company’s culture, productivity and profits in the process. </p><p><br /></p><p>For future posts, please follow me on Twitter at: <a href="https://twitter.com/georgedeeb">@georgedeeb</a>.</p><p><br /></p><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-75915301825965577462023-05-22T09:26:00.004-05:002023-05-22T09:26:53.346-05:00[VIDEO] Don't Let Short-Term Thinking Hurt Long-Term Results<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlpLFJfAPNdsEOJoq6WcSEO3bKirDLvI803c-4UvLbGT8h_zo-kDmkZ132kQbPiPSfLZqpobJxRR68KNO97DC9bLSrcyj2wfQU_cago1GGKQGtpqttHDIzn0exJUNJs63-i9xlWqzvdw6yMVKaqLIXOyib_cYNGKlJAv-f1VW3kUyZ3YqwCANdt9_V_Q/s567/asbn%205.22.23.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="316" data-original-width="567" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlpLFJfAPNdsEOJoq6WcSEO3bKirDLvI803c-4UvLbGT8h_zo-kDmkZ132kQbPiPSfLZqpobJxRR68KNO97DC9bLSrcyj2wfQU_cago1GGKQGtpqttHDIzn0exJUNJs63-i9xlWqzvdw6yMVKaqLIXOyib_cYNGKlJAv-f1VW3kUyZ3YqwCANdt9_V_Q/s16000/asbn%205.22.23.png" /></a></div><br /><p>I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about how to not let short-term thinking hurt your long-term results. As you will learn, it is very easy to let your short-term cash needs "rule the day", but at the peril of maximizing your future growth efforts. I thought this video turned out great, and I wanted to share it with all of you, to see if it can be helpful to you in knowing when to cut corners, and when not. I hope you like it!!</p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6327758586112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.comtag:blogger.com,1999:blog-6874655767575089142.post-20655801478614504732023-05-01T15:21:00.000-05:002023-05-01T15:21:44.725-05:00[VIDEO] How to Discover and Understand Your Competitors<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgH2miX3lRleqYo4M07CFE-NENZ9ZfzZW34pmw12KCGENQTmVG1grH2w3TaMg3pkgEG-0w6Scmg19LwxKsEA74G-3BVushFJgfOs4httA2GfusMwdrAyB3lRy1eongEUmvJUqnwPa05q4urTICc2efYYTv9il08i1p65M3CoQZwf7YJ14LdGUxOh32zvg/s635/asbn%205.1.23%20v2.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="356" data-original-width="635" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgH2miX3lRleqYo4M07CFE-NENZ9ZfzZW34pmw12KCGENQTmVG1grH2w3TaMg3pkgEG-0w6Scmg19LwxKsEA74G-3BVushFJgfOs4httA2GfusMwdrAyB3lRy1eongEUmvJUqnwPa05q4urTICc2efYYTv9il08i1p65M3CoQZwf7YJ14LdGUxOh32zvg/s16000/asbn%205.1.23%20v2.png" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><p>I was recently interviewed by <a href="https://www.asbn.com/">ASBN</a>, an online "television network" serving the small business community, about how to best research your competitors and apply those learnings to your strategic plan. As you will learn, it is vital to your success that you have a firm grip on what you are up against. I thought this video turned out great, and I wanted to share it with all of you, to see if it can be helpful to you in "blocking and tackling" up against your competitors. I hope you like it!!</p><p></p><p></p><p></p><p></p><p></p><div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" src="https://players.brightcove.net/1813624316001/HkxaAZ3OPz_default/index.html?videoId=6325068081112"></iframe><br /><div style="text-align: left;"><br /></div><div style="text-align: left;">The embedded video player didn't give me the option to change the size of this video. But, if you want to see a bigger version, simply click the expand size button in the player above.</div><div style="text-align: left;"><br /></div><div style="text-align: left;">Thanks again to Jim Fitzpatrick and the ASBN team for having me on the show. I look forward to our next interview together.</div><div style="text-align: left;"><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left;">For future posts, please follow me on Twitter at: <a href="http://twitter.com/georgedeeb">@georgedeeb</a>.</div><div style="text-align: left;"><br /></div></div><p><br /></p>George Deebhttp://www.blogger.com/profile/00019816777269306563noreply@blogger.com