TOP BUSINESS LESSON FROM THE ITALIAN SERIE A

The Serie A, Italy’s top flight football league is one of the best in Europe. Each of the major leagues in Europe have their own identity, and the Italian game is known for its tactical superiority and attention to detail. Teams from the league, most notably “AC Milan” have conquered the European continent and the world time and time again. As a matter of fact, AC Milan is adjudged to be the most successful club in the world by virtue of the number of international titles won. Juventus, AS Roma, and FC Internazionale are some of the other Italian giants to have done the country proud on the global stage.

You are right to ask, “What has soccer got to do with business?” Well, I have found that some of the factors that make the Italian game so successful can also be applied to achieve business success. Here is a critical look at one of such factors.

BEST DEFENSE WINS 

It is no secret that the Italian game places a high premium on defensive solidity. More often than not, the team who wins the league is the team with the best defense. As long as you minimize the goals you concede, you will be safe…so it is in business. The key to a successful business is the ability of the entrepreneur to keep costs at the minimum; and I am not just referring to the ‘cost of sales’ alone. The ability of an entrepreneur to create a business model which runs on little or no financial costs is pivotal to the long term sustainability of the business.

Every new business venture is a risk which can go either way. The best thing any entrepreneur can do to minimize his exposure is to ensure that he creates the business, product, or service with minimal resources. This resonates with the principles of bootstrapping, and the lean startup methodology. It is unwise for a business to invest in infrastructure and systems when the concept has not been proven through sales. 

Football matches are won on goals, businesses thrive on sales income. Where there is no sales income, the business begins to die…except in instances where the entrepreneur had prepared himself by creating a business model that burns little or no cash; a situation similar to keeping a clean sheet in a football game…you will end up with a draw at worst.

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Did I hear you say it is impossible? It actually is possible because I did it with my first business. I started Flytitude Ventures without rental costs, salary costs, and other key recurring costs. I launched the venture at a time when the buying season was over so we couldn’t get a sale in the first five months. But because my costs were limited to marketing and customer acquisition, the lack of sale wasn’t a threat to the business. The business entered into its season and it has been smooth sailing ever since. 

It feels great to win this way; a feeling comparable only to FC Internazionale’s 2-0 Champions league victory over Germany’s Bayern Munich in 2010.

Forza Milan

9 Entrepreneurial Routines for Success and Happiness

By: Janet Choi via LinkedIn

Whether it’s a nice cup of tea or coffee or reviewing your diary — routines and rituals help forge the discipline, energy, and mental space to consistently make progress.
We reached out to some productivity superstars to ask:

What is one routine that contributes to your happiness and success?

Routines and rituals are inherently very personal. What works for you won’t necessarily work for somebody else — but the main takeaway here is to prioritize aspects of your life to create balance. Here's what they had to say:

Nurture your health.

1. Make exercise a priority — especially when you're busy.

My most important routine is getting some exercise each day. Whether it’s getting out on my bike, going to yoga, or lifting a few weights at the gym, making that a priority makes me a happier person. Without that ritual, I get grumpy, so even when I have tons of work, I fit it into my day.
— Alexis Grant, Founder, Socialexis; Managing Editor, Brazen Life

2. View exercise as an energizer.

Daily exercise in the morning gets me energized and fired up for the day ahead. Exercise makes me feel happy and great about myself. This then flows into the day and helps me stay focused and sleep better.

Research has shown that exercise is a keystone habit which makes other habits much easier to develop. My exercise habit has spawned off a number of other habits, such as daily meditation and an evening walk — which also contribute to my personal happiness and success.
— Joel Gascoigne, Co-founder & CEO, Buffer

3. Bike to work.

Biking to work, and taking the long way home. Being at the helm of a growing startup while finishing up my undergraduate education means it is difficult to ever truly unplug. The way that I plant two flowers with one seed (my dad raised me not to kill birds) is by biking to work.

Although it is only two miles each way, it is a decent amount of exercise that I automatically get each day, and biking is wonderful solitary time. I often take the long way home or do a lap around my city late at night to clear my mind or shake up my thinking about a problem.
— Khalil Fuller, Co-founder & CEO, NBA Math Hoops

Connect with family, friends, and yourself.

4. Spend time with loved ones.

Taking a walk on the beach with my 22 month-old-son every morning.
— Ari Meisel, Achievement Architect, Less Doing

5. Recharge with "me-time."

Mindful meditation and 'me time.Work will always be there. The stresses of life and of tasks left undone will always be there. Those are the constants, and how we react to them is the variable. How we’re able to affect change is the variable.

So instead of constantly struggling to get ahead, I make it a point to take an hour of each day, or sometimes a whole afternoon in a week to recharge. This is the time I spend refueling, doing creative things that not only satisfy me but give me ideas for the work I’m doing. I also feel less like my clients own me, because I’ve made a decisive effort to take back and own my time.
— Felicia Sullivan, Writer, Baker, Digital & Consumer Marketer

6. Unplug from your devices and tune into your head.

Once a month, I get to completely zone out and just think. Since I live in San Francisco but work for General Assembly, which is based out of New York, I spend a lot of time on airplanes. At first I was dreading the frequent cross-country flying but I’ve grown to love it. Sometimes I read, sometimes I code, sometimes I write, but going off the grid for 5-hour stretches allows me to come up with thoughts and ideas that just aren’t possible for me on a normal workday.
— Nathan Bashaw, Dash Builder & PM, General Assembly

7. Get up early.

I get up at 6:00 a.m. to have an hour to myself, before the rest of my family wakes up.
I don’t do heavy writing work, but just catch up with my email and social media. Clearing the decks in this way helps me feel calmer during the morning rush, and means that when I sit down at my laptop to do real writing, I’m not distracted by wondering what’s in my various in-boxes and updates. Plus I love the quiet, still atmosphere of morning.
— Gretchen Rubin, The Happiness Project

Treat yourself.

8. Critters and vacation.

Adopt a pet. I had two kittens during Meebo. At the end of a long day, nothing soothes your nerves like being greeted at the front door by warm, fuzzy critters who think you’re wonderful. In the thick of Meebo, the weekdays and weekends flowed together so I planned 3-day weekends to refocus. My favorite California trips include the Phyllo Apple Farm, Mar Vista Cottages, and kayaking in Point Reyes.
— Elaine Wherry, Co-founder, Meebo

9. Coffee breaks.

I buy coffee (usually at Peet’s) each morning on my way to work. It feels like a splurge but it’s totally worth it. Caffeine makes me a happier, better person — and I get through emails that much faster!
— Angie Chang, Co-founder, Women 2.0; VP Hackbright Academy

FROM DEBT TO WEALTH IN FIVE STEPS

A young American businessman was walking down the street with his wife sometimes in the early nineties. They came across a homeless man and our young businessman said to his wife, “that man is richer than I am”, “I don’t understand” said the wife, then our young businessman responded: “that man is worth Zero, he is richer than I am because I am worth -$900,000,000” referring to how staggeringly indebted he was. Today, Donald Trump is worth over $9billion.

On the average, seven out of every ten people are indebted one way or the other. In the Nigerian economy where there are huge economic challenges, the ratio seems even higher. However, in spite of these mounting debt issues, everyone still aspires to wealth. We have unfulfilled dreams and visions. How then do we make the leap from indebtedness to wealth like Donald Trump did? 

 

STOP DIGGING: If you wake up one morning and find out that you have dug yourself into a big debt-hole, the first thing to do is to stop digging. It is commonplace to see people borrowing more to settle previous debts. This approach will only get you deeper into debt. If at the time of reading this you are in debt, resolve to stop borrowing. Be responsible, go to your creditors , own up to them and ask them for a fair period of time to settle your debts. Create and show them a loan repayment plan. Thereafter, work your socks off. Do whatever you have to do (within legal bounds) to make sure that you pay back within the set timeframe.

CHANGE YOUR ORIENTATION: Understand that money is only a measure of value. Become value-oriented instead of money-oriented. Begin to think about ways by which you can help others, think about problems you can solve with little or no financial cost. Doing this will help you spot some of the numerous opportunities that exist in your environment. Do not let your ego derail you; use whatever opportunity you get to create value for others. Always remember that “money only goes out in exchange for value”.

LEARN ALL YOU CAN: In order to maximize your potential to create value and prepare for bigger opportunities, learn as much as you can about the things that interests you. Read books, subscribe to blogs, attend seminars, or go and intern with someone who is already doing what you want to do…and do it for the education. One thing that worked for me here is that I stopped listening to music and listened to audiobooks and podcasts instead. This can help you learn more about opportunities which you can explore for free.

SAVE AND INVEST: Money will never be enough. Therefore no matter how little you earn, save some. A practical thing to do is to save 10% of all your income. Be faithful to this and you will be surprised at how much you have saved in a short period of time. In addition, keep track of your expenses to the last penny, record them so as to trim away excesses overtime. Finally, at regular intervals (6months, 12months...depending on how much you are able to save), invest your savings; make your money work for you. Again, if you have been faithful to learning, there are tons of ways you can invest your money, no matter how small.

BUILD STEADILY: Patience is the key. Wealth is not a windfall, neither is it a jackpot; it is what you have been able to build by way of assets overtime. There is no shortcut. Your ability to maintain a value-oriented approach, work hard, work smart, save and invest while thinking big is vital to your success. No one said it was going to be easy, it was never easy for today’s billionaires, and it was never easy for Donald Trump either. Don’t quit when it gets tough, be persistent, and you will get there.

That it has been done before is proof enough that you can do it too; even better”. To the determined mind, anything is possible.

“Idea is cheap, Knowledge is costly, action is scarce” is the mantra I live by. The only way by which you can make the leap from debt to wealth is by taking action. When? Now! Keep at it, don’t quit, because it is possible. DO

Why early stage companies should not spend time thinking about differentiation

There exists a vast body of knowledge to support those starting  a business. In this mass of knowledge, each entrepreneur must apply discretion and balance in order to adopt and utilise that which is peculiar to their line of business.

While general business knowledge requires that we determine beforehand what differentiates us from competitors, I was quite fascinated when I read this post (by Daniel, an MBA candidate at Stanford Graduate School of Business) which basically  states that in certain situations, determining that differentiation is not our job as entrepreneurs....(think) "you are not your customer".
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Know your competitors and know why you’re different. Seems like a simple enough truism in business. Except, in early stage companies still searching for traction, this thinking can quickly cause you to spend time on the wrong things.

I was sitting in a meeting the other day discussing a sales test we wanted to run for a new product offering. We quickly outlined the product offering, the target customers, and the specific problem we could solve for those customers. Then someone asked the next logical question: “How are we different from companies A, B, and C who offer something similar to what we’re proposing?”

The team proceeded to spend the next 30 minutes posing answers to this question. As I sat and listened to the discussion, I couldn’t help but think it was a useless exercise for a product offering with no traction and for a sale we had never yet attempted. Nobody in the room REALLY knew the answer to why our product was different and it wasn’t going to emerge from conversations within the walls of the building.

There are two reasons why spending time thinking about differentiation is a waste of time:

In large, fast-growing markets, there’s plenty of share to go around.

Most startups operate in newly developing markets that are growing fast. In these scenarios, differentiation typically takes a back seat to simply solving a really important customer problem and having a team that can execute on acquiring lots of customers with that problem quickly. In early stage companies, traction IS differentiation. The winners acquire more customers faster than the losers. In short, there’s plenty of market share to go around, so spend less time worrying about how to steal it from your competitors.

In uncertain environments, those who learn faster from customers win.

You might say: “But, in order to acquire customers, we need to describe why we’re different than all the other companies trying to sell them the same thing.” This may be true in some conversations, but a good sales team will figure this out quickly after trying to sell to a few potential customers. Don’t spend time attempting to guess at what differentiates you. Even more importantly, don’t spend time forming a product roadmap that creates differentiation before trying to sell what you currently have to customers. Instead, go try to sell the product and then build the things that are preventing customers from buying. In short, customers will tell you in the sales process if you’re differentiated. It’s more important to learn quickly from customers and adapt to meet their needs.

Next time you’re in a meeting and someone brings up the topic of differentiation that’s not based on direct feedback from customers, stop the meeting and force everyone to go sit in on a sales call or try to sell the product. You’ll likely find that differentiation is unimportant or that your hypotheses about what makes you different were wrong all along.

Work Life Balance; Why you're not balancing

Work-Life balance for most professionals has become a mirage; we've heard of it, we understand its importance, but we never seem to get to that point of perfect balance. While some have decided to quit trying, many of us are still very much interested in having that balance for varying reasons.

The not-so-good news is that work-life balance can never be achieved in the way most of us perceive it. The good news however is that, with better understanding and a little tweak in perspective, work-life balance is something we can all achieve easily.

When most people think about work-life balance, they think of a situation in which they get to devote equal amount of time to their work and their family. This is the first of two misconceptions about work-life balance. Firstly, work-life balance is not trying to share your time between your work and family, there is much more to it.
There are five different sections that make up our lives, two of which are Work, and Relationships(family falls under this section). The other three components are Health, Spirit, and Interests. Therefore when we think about work-life balance, we are trying to create a balance between;
*What you do for a living
* The people that matter to you
*The state of your physical and mental wellbeing
*Your beliefs and a sense of commitment to something bigger than you
*Your interests, likes, hobbies, and passion.

The second misconception, which is what makes work-life balance seem unattainable, is that we need to devote an equal amount of time to all these areas of our lives. This, as you most probably have found out, is absolutely impossible. What then is the whole balance thing about?

Actually, work-life balance is less about making the remaining four sections of your life compete with your work for your time, its more about making "small investments" in the right place. Its less about taking long trips and family vacations;its more about making sure that the little things gets done.

A lesson from my social media class says "one minute everyday is better than 10 hours on Saturday". Work-life balance is achieved using this same principle. Forget the cliches (plan your day to perfection, set goals, prioritize etc) and focus on what really matters. Humans will always live as humans, so there is no point adopting a robot culture. To achieve that balance we desire, we simply have to ensure that we make those small investments in the right places. In context of the different sections our lives here are examples
* Smile even after a tough day, a broad daily smile is better than a laughter filled 2-day vacation.
* A 20 minute workout every morning is better than 5 hours at the gym once a month
* Listen to a sermon on your way to work each morning, instead of trying to squeeze out time for a 3 day retreat.
* Carve out a nice article from your work notes for your company newsletter, instead of hoping to complete that novel when you retire.

The whole idea of work-life balance is hinged upon the need to ensure that other areas of our lives do not get neglected due to the pressing demands of the work area. Therefore, the important thing is to make sure that on a daily basis, we take advantage of every opportunity to give expression to those other aspects of our lives. This will not guarantee a perfect balance of shared time between sectors, what it guarantees rather is a well rounded, happy, and less demanding life; the life of a human.

Here's How To Value Your Business

Understanding business valuation is an essential piece of business start up information that you need to learn as an entrepreneur. If you are considering starting a business or purchasing an existing one, you need to understand how to evaluate the value of a business, and here are a few things to consider about business valuation.

 

There are many different methods that you could potentially use in order to value a business. All of them have some legitimate points and a few weaknesses. Essentially, the value of a business is what someone else is willing to pay for it. Therefore, there is no hard and fast rule when it comes to valuing a business. You have to take several different approaches and weigh them against each other to come up with the closest thing to market value.

Book Value

One of the simplest methods of business valuation is using the book value. This is also sometimes referred to as net worth. With this approach, you are simply going to total up the assets of the company and the liabilities. You are then going to subtract the liabilities from the assets of the company. The value that you are left with is the value of the company. While this strategy is very simple, it leaves out a lot of other variables. For example, you are not taking into consideration the human capital or projects that you have in the works. 

Capitalization of Earnings

Another method that you could use to value a company is the capitalization of earnings method. This method is going to take a hard look at how much the company has earned in the past. You might look at a certain period of time, such as how much was made during the last fiscal year. You would then use a capitalization rate to determine how much the business is actually worth.

Economic Conditions

When you are evaluating the value of business, you are going to need to take a look at economic conditions. Most reports that come up with a business value start out by summarizing the current economic situation. During a good economy, the business is going to be worth more than it is during a down economy.

Total Approach

When you are trying to come up with an accurate value for a business, you are going to need to look at all of the different factors involved. Instead of looking only at the liabilities and assets, you need to factor in the employees, the patents that the company has, and anything else that could affect profitability.

While business valuations might not be at the top of your priority list as a small business owner, it is an essential component that you must understand...if you are really thinking long term. If you want to take your business into the big leagues, learn what the big guys know.

To learn more about the world of business finance, you can visit www.finweb.com 

Thanks for taking out time to learn via this platform. If you have enjoyed this post, please share it with your friends. If you haven't, please let us know exactly how you feel using the comment section.

Cheers to your success

DON'T UNDERESTIMATE THE CASUAL MEETINGS

By: Adam Callinan

 

Building a strong network can be quite an art, one that is often built over years of trial and error, largely resulting in learning through many mistakes.

There are, however, an abundance of opportunities to garner help, connections and support from many of the people around you or that you have the chance to casually meet. You just need to open your eyes and learn to step outside your comfort zone to take advantage of these opportunities.

Here’s the deal: You have absolutely no idea who the person that you just met and are casually talking to knows or to where their experiences may lead. For example, I recently had a casual breakfast with a friend who brought another friend along that happened to live near me. There wasn’t a real purpose or premise for the breakfast aside from 'we live close by and should just know each other'.

Shut up and listen. It turns out, after an hour or so of listening -- note that I didn’t say talking -- I learned he’s been outrageously successful, having built and sold multiple behemoth companies. He's effectively taken over three struggling public companies as the CEO and completely turned them around, making them super profitable. I had no idea prior to having breakfast with him. Who do you think he knows or is connected to, aside from everyone you could imagine?

It’s a good idea to treat everyone that you meet as if they’re the most important person ever. Yes, there are major social benefits to this mentality, but remember that you only get one chance at a first impression.

Look local. Whether you’re building a new business or working inside one that is already moving along, you have no idea how many people you are connected to through people that you see and interact with constantly, largely because they’re casual interactions.

Are you in medical sales and trying to land that top doctor? I bet one of your neighbors knows him or her personally and you have no idea because you’ve never cultivated the relationship or, even more simply, just asked.

I’m not suggesting that you go door to door through your neighborhood and pester your neighbors for their contacts, but spend the time to better know those that you see and interact with regularly. If you have a solid relationship with them, don’t be afraid to ask for help or connections. Good people have a natural tendency to want to help other good people.

Garner respect. It’s also important to reiterate that you can’t ask someone for help or a connection that you don’t have a relationship with. Well, let me rephrase that -- you can but it won’t work and you’ll permanently burn that bridge. It’s really one of the most common mistakes new networkers make.

You must build trust and connection with the person first, because you need them to want to help you and trust that you’re not going to embarrass them when they introduce you to someone. If you are, however, focused on creating real relationships that are built on respect and have the potential to benefit both parties -- even if that’s just enjoying the interaction or from helping you -- you’ll be amazed at where your relationships can take you.

7 TIPS TO GUIDE YOUNG ENTREPRENEURS

By: John Pilmer

The world needs new entrepreneurs. Entrepreneurs create jobs, lift the standard of living, usher new technology into society, and keep competition alive in the marketplace. Starting a business is difficult, and it’s crucial that the next generation has as much ammunition as possible. We are all relying on you to carry on the proud tradition of innovation.

 

As the CEO of a successful startup myself, with decades of experience launching prosperous companies, I know what it takes to make it. If I could go back and give my 20-something self a bit of advice about starting out as an entrepreneur, these are the seven tips I’d start with:

1. Passion. You will fail. That is part of the game. Your failures are most likely to lead to success if you get involved with something you believe in. Starting a business just for its own sake will leave you directionless, burned out and ultimately, back where you started. Choose an interest that you can be passionate about. Marrying charity to traditional business models may be a great way to combine the things you – and potential consumers – care most about.

2. Define your market. You’ve heard this before. It’s one of the most common mistakes that entrepreneurs make. Go with something that makes sense for your scope. If you’re a small startup and still a student, staying local or targeting fellow students might be the best direction. The Internet gives us almost infinite reach, but it’s vital to narrow your market down to what is realistic, and stick with those who have a reason to be interested.

3. Price point. Risk taking is important in any new business venture, provided that it is sensible. Consider providing your product or service at the most basic level possible (also called minimum viable product). A small investment up front can hook new customers/donations before risking more money. Your target defines the ideal price. Survey your defined market and adjust accordingly. You can always reevaluate your prices as you grow.

4. Be honest. This advice applies to yourself, your employees and your customers. Be honest about what you can commit to your business. It doesn’t do any good to over-extend yourself when in truth; you don’t have the cash or the hours to commit to a project. Be honest about what your partners can expect from, and what you expect in return. And be honest with clients. At PilmerPR, our #1 rule is “First be good, then talk about it.”

5. Utilize, but don’t over-use, social media. Young people are always eager to jump online, and that’s not a bad thing. But it is important to think carefully before plastering marketing materials on the Internet. Social media is obviously a powerful tool. Focusing it on your business can get word out quickly and cheaply. That said, be careful not to put all of your eggs in the online basket. Experiment and measure results, then constantly evaluate and decide what is working, and what you are wasting resources on.

6. Don’t forget PR. Traditional and online press relations can yield coverage that has longer shelf life and costs less than advertising. Think about what makes your product new, interesting, and relevant. Then, talk to the media about it. You might get great reviews, mentions on blogs, or even appear on news segments. Many media outlets have sections dedicated to people in the community doing outstanding things. Even an article in your campus newspaper can be a valuable source of publicity.

7. Look for mentors. The beginning of any venture can be exhilarating, frustrating, liberating and terrifying all at once. Remember, although younger generations can be more tech-savvy than those who have been in business for years, there are still basic principles that are refined by experience. Many communities offer networking opportunities for entrepreneurs young and old. Take advantage of this, and you may be surprised at the wealth of knowledge your colleagues have to offer.

These tips won’t earn you certain success, but every bit of knowledge you can gather before you begin your entrepreneurial career can help you avoid serious mistakes.