The foundation of the widget based business, whether the widgets are medical devices, consumer products or packaged foods, is the Cost of Goods (COG). Every decision that is ever made in the business is built on the fundamental knowledge of “what does it cost completely, to make one selling item”.Read More
Author: Tom Larsen
To be an entrepreneur, have enough conviction to go through the tedious setup steps, create promotional materials or products, bank accounts, email accounts, etc, is to wear many, many hats. Administrative, financial planner, designer, marketer, sales person and plenty of others. That effort and capability develops a certain understandable confidence that the entrepreneur can do it all. If not all, then at least most. But, in reality, there are only 24 hours in a day. No one can answer phones, send emails, work with new vendors, handle shipping, move sales forward, develop marketing calendars or invoicing or whatever else is going on, all at the same time. But, having started one’s own business, it makes perfect sense that the founder can do everything. The real question is should they do everything? The founder’s role is a unique one. It took vision, intestinal fortitude and likely perseverance to create the inertia required to get out of the blocks. Now, with the business starting to run, many entrepreneurs cave to the “somebody has to do it” approach and they try to do everything themselves. At that decision (or non-decision), the momentum moving forward stops and becomes reversed. Why? Because all the things that go into running the day-to-day activities of a business are the result of yesterday’s efforts. They don’t require vision, intestinal fortitude or perseverance. They typically require a completely...Read More
Here’s a link to Machen MacDonald’s short commentary about time. Here’s what got my attention first: From his post: As Benjamin Franklin once pointed out, “Time isn’t money. Time is life itself … Dost thou love life? Then do not squander time, for that is the stuff life is made of.” The rest of the post is incredibly useful for everyone, especially business owners. Wait until Machen blows up the two myths! Link to post...Read More
A couple of weeks ago I reconnected with a friend from high school and provided the life summary to date thing we all do now. In her response she commented it must be hard work getting a business launched. It has stuck with me for some weeks now because, having launched a few businesses in my life, I don’t see the launch as anywhere near as challenging as the subsequent 12 months. Getting the rocket off the ground has its challenges, but, getting the rocket to do what it needs in flight, arrive at the destination (and maybe return, like Apollo) are huge feats. Many startups we run into are very sketchy about what it will take to get to where they want to go. Many don’t even know where they want to go. They have dreams, but, no real approach to achieving them. I thought I would collect up some of the issues that we are always asking people to consider as they go through the earliest stage development of their business. Only each entrepreneur can generate the answers to these questions. There are no wrong answers because the script for the business is being written by the entrepreneur. Our role is to make sure that the best questions are being considered and that the answers are all in alignment. PUtting things in alignment creates a path. Failure...Read More
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