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Tag: Grow Your Business

  • Why Having a Great Plan Isn’t Enough to Grow Your Business

    Why Having a Great Plan Isn’t Enough to Grow Your Business

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    Opinions expressed by Entrepreneur contributors are their own.

    If you’re familiar with the Antoine de Saint-Exupéry saying: “A goal without a plan is just a wish,” you’ve probably only heard the TL;DR version. Here is the full version:

    A dream written down with a date becomes a goal. A goal broken down into steps becomes a plan. A plan backed by action makes your dreams come true.

    This is why your plan isn’t going to be enough. A plan in itself is just a piece of paper or a bunch of 0s and 1s that make up words. Luckily, I have had experience with failing and succeeding in business (more of the latter), and these are the five things I focus on to turn my plans into realities.

    Related: Planning To Grow Your Business? Five Tips That Can Help You

    1. Focus

    Focusing on one primary goal per quarter is crucial. As much as we like to brag that we can multitask, we can’t. When was the last time you saw a population that throws 10 balls in the air and catch them before they hit the ground? Exactly. A much better skill is learning how to take all the tasks at hand and realizing which one will have the most impact.

    2. Transparency

    More specifically, internal company transparency. Does your team understand the finances of the company? Do they understand what a burn rate is and that revenue doesn’t mean you are profitable? Internal company transparency means educating your team on how a business works and bringing them into the inner circle that used to be reserved for leadership only. If you add stock options on top of that, you can trigger an ownership mindset that makes your team your partner.

    3. Accountability

    Now that your team has become your partner in success (and failure), they need to be held to a different standard, and being accountable is key. There may be 3-10 people responsible for a priority (remember, only one per quarter) but there is one person at the helm, or what I call the champions, that makes sure everyone does what they need to do. This person needs to understand something, though. They aren’t “the boss.” A lot of times when someone is given this type of responsibility, they believe that they can just shout orders and they only take credit when they succeed and blame others for “not listening” when they fail. That isn’t the case. Accountability goes both ways.

    Related: 5 Keys to Promoting Accountability in Your Business

    4. Hiring

    This is probably the hardest part of the process. Your company is only as good as your weakest employee. When you are small (under 50 employees), you don’t have the luxury of hand-holding — you either find a team that learns quickly or one that is already experienced. Once again, I suggest the latter. You will thank me later. Understand that salary will be your biggest investment and you should treat it just like that — an investment.

    Hire fast and fire quick, especially if you are smaller. Yes, I know this is not the usual battle cry (“Hire slow…”), but you have to realize a day in the life of a small, growing business is like a month for an established one. You need to trust your gut or trust someone else’s when hiring. I also strongly suggest you set expectations with new hires to understand they are in a trial period and that they need to step up. This may seem harsh, but as you grow, you can be a little more lenient and mentor with a softer touch.

    5. Stay healthy

    It’s important to stay healthy financially, physically and mentally. Create an environment that endorses the importance of all three. Physical and financial are usually easier concepts to grasp and fix (I said easier, not easy), but mental is a tough nut to crack. Just saying there is an open-door policy is great and must be said, but sometimes that isn’t enough. Keep in mind that the time you spend doing one thing — for example, focusing on revenue — usually prevents you from focusing on your employees’ well-being. Finding the balance is sometimes not worth the effort when you are smaller but should definitely be on the table as you grow and can afford to implement a mental health check system.

    Related: Keys to Planning for Smart Business Growth

    Did you notice a trend here about plans? There was only one point that spoke directly to taking action, and the rest was to help others be effective at their duties — which has always made me think about Antoine’s quote. I always wanted to add the following to it …

    But remember, a dream is nothing without someone to appreciate it with you

    Without your team running smoothly, a plan can’t take action. And if you really want to make it big, you aren’t going to do it yourself. Don’t you agree?

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    Doug Walner

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  • Should You Prioritize Growth or Profitability in a Recession? The Answer May Surprise You.

    Should You Prioritize Growth or Profitability in a Recession? The Answer May Surprise You.

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    Opinions expressed by Entrepreneur contributors are their own.

    This year has seen economic slowdown, inflation and war combine into a cocktail that’s now fueling fears of a recession across business sectors, driving uncertainty in everyone from business leaders to investors to employees. Such uncertainty is forcing business leaders to reprioritize and scale back their once-ambitious growth plans. And now, as interest rates go up and valuations go down, more and more businesses are returning to prioritize what was once the only way to ensure a business’s success — positive free cash flow.

    All of this is a very strong reminder for all businesses, but particularly startups and small businesses, that it’s vital to build a company to make money — in both good times and bad. Prioritizing free cash flow is the only way to manage against forces outside of your direct control.

    Related: Never Worry About Cash Flow Again by Using These 5 Strategies

    Positive free cash flow isn’t a luxury

    Many entrepreneurs, especially as they start their businesses, begin at a deficit. While this is expected (“You’ve got to spend money to make money,” as the saying goes), too many businesses, especially in the last decade or so, have spent too long in the unprofitable growth stage. Many notable companies in tech are now faced with hard decisions with real consequential and disruptive effects, including dramatically curtailing investments and layoffs.

    This recent and too-common strategy of sacrificing profitability for growth’s sake can and has worked for some companies. Private and public capital markets faced with a low-interest rate environment have been heavily anchored on the high growth segments of the economy to deploy their capital. This capital glut has distorted long-term value drivers of business, i.e., the relationship between revenue growth rate and free cash flow margins. Given the valuation rewards, too many have solely built their businesses for high growth at all costs.

    For most companies, prioritizing profitability and free cash flow should be seen as the norm. Many business leaders might be surprised that doing so doesn’t materially impact revenue growth.

    Speaking frankly, if you’re running a $100+ million organization that is just burning cash, it is a hobby. That doesn’t mean leaders shouldn’t invest in the business, it’s simply a question of prioritizing investment with the goal of also generating positive free cash flow.

    Businesses are meant to turn a profit. While Wall Street has recently been exceptionally forgiving to growing but unprofitable companies, this historically has not been the case. With extremely low interest rates since the financial crisis of 2007-08, there have been little to no penalties for taking risks on fast-growing but heavily cash-burning companies. The phrase TINA — there is no alternative — came about as a result of the extremely low interest rates providing a significant incentive for investors to chase growth without considering risk, as they had few opportunities to realize returns with lower risk. With interest rates normalizing, however, there are very real investment alternatives to high growth, and valuations for growth are down substantially as a result.

    Now that we’re trending towards a “normal” economy as interest rates return to something approaching long-term historical levels, it’s time for business leaders to return to managing their business operations for these “normal” times. Capital access is going to be tougher now, and investors will demand more balance between growth and free cash flow after the initial phases of product-market fit are established.

    Related: How to Maintain Profitability in a Changing Market

    Prioritizing what’s important

    For small business owners and startup founders who have been less concerned with generating free cash flow and are looking to bolster their balance sheet, there are a few things you can and should do immediately.

    First, you must determine the math that will allow you to control your burn. You and your team need to find a realistic revenue trajectory and break-even point. Without realistic expectations for your near and long-term revenue and fixed expenses, you and your team can never plan for responsible, realistic and profitable growth.

    Once you have your revenue and break-even point, you should be able to figure out what you can plan to spend. Armed with that spend number, it’s time for leadership at all levels to take a look at how their activities connect to revenue. This is where you need complete buy-in from your team and likely a significant change in mindset.

    People get sloppy in good times, which we’ve all been fortunate to enjoy for the last decade. There’s more room for experimentation when horizons are far out, but now as horizons shorten, pies shrink and forecasting becomes less sunny, business leaders must get ruthless about prioritizing projects that are driving revenue — everything else must be seen as a luxury. Projects outside revenue drivers will likely need to either operate off a slimmed-down budget and with more creativity or put on the shelf until sunnier days come.

    Being honest is going to be important here. Be honest with yourself as the business leader about your growth and spending trajectories, with your team about what can and will be prioritized and with investors about what you’re doing to generate cash flow. Setting these expectations will be key to keeping your employees motivated and engaged during what can be a stressful time.

    Related: Positive Cash Flow and Smart Financing Solutions

    Focus on productivity

    As I’ve seen various economic cycles come and go, there are always two terms that seem to come back with a vengeance at every downturn — efficiency and productivity. While there is nothing wrong with having an efficient operation, it seems to me that many companies and leaders only prioritize efficiency when times get tough.

    Instead, I wish leaders focused more on productivity. For many, it will be a return to early startup days when teams were lean and scrappy. It’s incredible what teams can do when focused on making the highest impact on the highest priority work. Get your teams focused and aligned on the right things, and cut out the low-priority items. You’ll be amazed at what can be accomplished.

    There is nothing wrong with making operations more efficient, but this can’t and shouldn’t be a short-term fix that goes out the window the second things look brighter, and neither should a focus on productivity. If and when we climb out of inflationary and recessionary periods, and your team goes right back to prioritizing growth over cash flow, you will likely find yourself in a similar situation the next time the markets begin to dip.

    Related: Why Founders Should Focus on Productivity Instead of Efficiency

    It is easier to burn cash than to generate positive free cash flow. That is to say, it’s easier to defer hard decisions instead of making them now. If the last few years have taught us anything, it’s that the future is unpredictable, and businesses — especially SMBs and startups — would be wise to shore up a safety net built on a foundation of profitability. Be realistic with your revenue and spending expectations, and prioritize projects that represent the best opportunities to drive growth and efficiency. This will enable long-term sustainability in good and bad times.

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    Yancey Spruill

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  • The Pros and Cons of Your Brand Using Affiliate Links

    The Pros and Cons of Your Brand Using Affiliate Links

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    Opinions expressed by Entrepreneur contributors are their own.

    In today’s world of digital publications, online shopping and influencer recommendations, more media outlets are turning to affiliate marketing programs to make easy money. Essentially, these programs partner with editors and media outlets to promote your products in exchange for a percentage of commission. The affiliate program, and the outlets that partner with them, get a piece of the profits from purchases made through their links — in turn, your brand gets in front of bigger audiences.

    On top of being a helpful sales tool for some companies, we’re also starting to see more and more top-tier media outlets that only recommend brands with affiliate links. Brands that don’t have them may miss out on some great coverage opportunities.

    There are tons of programs to choose from, and you can expect them to take anywhere from 5% to as much as 30% of sales. Programs like Amazon, CJ Affiliate, GiddyUp and so many others can help your company get into high-performing articles in popular publications. So, the question is: to affiliate or not to affiliate?

    Before you make a decision, it’s important to review the facts. To help you know if this move is right for your company, let’s talk about the pros and cons of signing up for affiliate links:

    Related: An Affiliate-Marketing Program Might Be the Perfect Move

    Pros

    The most noteworthy benefit of affiliate marketing is the increased press coverage, which hopefully results in higher sales. As a PR firm, we see our clients’ opportunities increase significantly when they work with an affiliate program since outlets are much more incentivized to include them. It is an especially helpful advantage for brands in more competitive industries such as beauty, fashion and tech — where just a few great press placements can truly make or break your year.

    Another benefit of affiliate marketing is that the coverage received is considered an earned media placement, which holds much more value in the eyes of consumers. Affiliate link articles are less conspicuous than traditional paid ads and appeal to viewers seeking authentic, trustworthy recommendations.

    As experts in the communications field, we know that authenticity matters to audiences, with statistics consistently placing it high on the list of consumer values. One recent study showed that 88% of respondents desire to support brands that appear authentic in their marketing efforts. A well-crafted affiliate article reviewing and recommending your products just may be the perfect strategy to resonate with those buyers.

    Affiliate programs provide great opportunities for marketing, brand awareness and potential sales. Before deciding if they are the right step for your brand, let’s review some of the downsides to keep in mind.

    Related: A Step-by-Step Guide to Your First Affiliate Marketing Campaign

    Cons

    Before joining an affiliate program, consider whether or not your brand’s profit margins will comfortably allow for the percentage of commission to be paid. The sweet spot for affiliate marketing seems to be midsize-to-large companies that benefit from the press coverage and can afford the cost of it. Small brands need to take a look at their books and review all options when it comes to marketing strategies.

    Consider working with an external agency that has the expertise to decipher if an affiliate program is a good fit for your brand. Our clients often ask us if affiliate marketing is right for them, and the truth is, it varies on a case-to-case basis.

    In addition to knowing what your brand needs, an agency can help you review the various affiliate program parties and the differences in percentage commissions they take. For companies that are short on staff members, navigating the market for the best-fitting affiliate partnership, setting the account up, and monitoring the program can be too heavy of a lift. Don’t be afraid to ask the experts to step in.

    If you’re unsure if your company can afford the cost and labor of managing an affiliate program, consult with an agency or public relations expert to learn more about your options. The right partnership just might offer the press coverage (and revenue) you’ve been looking for.

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    Bryanne DeGoede

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  • 3 Problems Most Small Businesses Face and How to Avoid Them

    3 Problems Most Small Businesses Face and How to Avoid Them

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    Opinions expressed by Entrepreneur contributors are their own.

    On a weekly basis, I have the opportunity to work with small business owners in a variety of ways. Unfortunately, I am often helping them to overcome a challenge that they really didn’t need to have happen in the first place. For instance, one area that far too many owners face is the inability to get working capital because they never dealt with their own poor personal credit. Another example is when I am helping a business owner get out from underneath a loan they took out from a hard-money lender.

    Both are prime examples of situations that can easily be avoided had the business owner done a better job of getting the personal credit in order. So, what issues are you facing today, that if you had prepared just a little more in the past, would simply be nonexistent?

    Here are some ideas on how to ensure that you can limit tomorrow’s challenges by taking steps today:

    Related: 7 Mistakes That Make or Break Small Businesses

    1. Credit/finance

    Small business owners will be mostly looking at the bottom line — what they brought in this month, last month and what’s expected next month. They are also thinking about much further in the future, like next year, next 3 years, next 5 years, etc. What they are not always thinking about is “What can I do now to avoid future mistakes and to make sure my business is set up for financial success in the future?”

    So, if you need to expand, are you ready? Do you have those funds readily available in the bank? Do you have a business credit card? How much can you get on a loan or line of credit? Do you have any business credit at all? If you don’t already have a business credit card/line that is open, active and paid on time, then you most likely won’t get as much as you’d like or need at the time you really need the money. The time to start building business credit is several years ago. The next best time to do this is now. Like right now.

    Here are a few ideas around finance to get you going in the right direction:

    • Savings account: Put aside 10-20% of all profits into a savings account as soon as the funds are received. This way you won’t have to pay last year’s taxes with this year’s profits.

    • Personal credit: Clean up your personal credit now because YOU are the personal guarantor of your business credit.

    • Business credit: Establish (and use) business lines of credit now, and increase them each year. This way, when you need to expand, you’ll already have the capital waiting to be used.

    • Taxes: Consider not writing off EVERYTHING. Your accountant will tell you that the less you pay in taxes the better, and I agree. However, when a business owner writes off nearly everything and pays next to nothing in taxes, they show no profit. When that happens, you can’t get funding. After all, if there is no profit, how can you pay back the money you borrowed?

    Related: The 7 Financial Habits of the Most Successful Small Business Owners

    2. Staff

    You ever get a few angry customers calling you because a job was not done correctly? Ever have prospects and/or customers write bad reviews for your company on social media? Ever get heartburn or high blood pressure because you know it could have been avoided if “that dang employee had just used their head?” This type of unneeded occurrence happens every day when employees drop the ball.

    Small business owners usually fall into two categories here: They either hire people who are exactly the same as themselves, or they hire whoever is breathing. Both are big mistakes. The problem with hiring people exactly like you is that there will be no new ideas, no fresh outside perspective — it will be the same old, same old. In other words, there will be no growth. When you hire whoever is breathing, it’s worse. You will have employees who are not engaged, who don’t care and who don’t see your company as one to stay with for the long haul. This is the employee who causes problems more often than they’ll offer solutions.

    Here are a few tips on hiring and training quality staff members:

    • Resumes: Take the time to review each and every resume that crosses your path with a fine-tooth comb. Look to see if the person leaves their job every six months or so to see if they have the ability to stay committed.

    • Cover letter: Require a cover letter. This gives you an idea of the person’s thought process and how well they can communicate, which is crucial if they are interacting with customers and/or other departments.

    • Training: Make sure you have a well-designed training and onboarding program. This goes two ways. It shows the new hire that you are professional and have high expectations, and it also demonstrates that you value them because you are providing top-notch training. The other is that it allows you to PREVENT issues with customers before they arise.

    • Reviews: Have employment that is conditional upon their 30-, 60- and 90-day reviews.

    • Skill set: Look for other skills than just industry experience. Oftentimes I have found that employees who have been in an industry for a very long time do not do well with change. People from outside the industry can often be easier to train and have an easier time learning new things.

    Related: Asking These 2 Questions Will Improve Your Hiring Process

    3. Industry change

    Okay, so you know all about the Blockbuster vs. Netflix story, right? You also know who won that battle, and of course, you know why. In fact, almost everyone knows this information, yet there are still so many business owners who refuse to update aspects of their business, even when they know they are losing business and need to make changes.

    Here are some areas in which you can easily make sure that you are handling change in a fast-paced and yet still well-thought-out manner:

    • Sending/receiving funds: How do you send and receive funds between customers and vendors? Are you still using checks or a debit card? Maybe cash? There is a tremendous amount of fraud surrounding checks and debit cards, and you take on most of the responsibility with those. And cash? Once it’s gone, it’s gone. Having and using safer and more effective methods of sending and receiving funds will make your customers happy and keep your accounts safe.

    • Staying on top of industry trends: For your business to stay profitable, it needs to stay relevant, so what changes are happening in your industry? Is there new technology? New business methods? What changes are happening with your customer base? To keep up with change, go to at least two industry trade shows each year. You’ll learn what is new, what’s old, and who is leading the way and getting the best results. Take time in the trade shows to meet people you can network with to push your company forward.

    • Advertising and marketing: Still doing coupon clippers and the local newspaper? Today, if you’re not using Facebook, Google and the rest to market your business, then you’re most likely losing to your competition on a daily basis. The companies that use Google Reviews and take it seriously, win. I can’t tell you how many people refuse to hire companies that get a score below 4.5. So, get involved in social media, and take it seriously. Don’t know how? Just hire someone.

    Pro tip: Write down the top 10 biggest challenges that you have faced and/or are facing now. Next to it, list out all solutions that you need to solve it. But now, list out what created the issues in the first place and what could have prevented it from happening in the first place. Once you see a pattern, you will be in a better position to prevent any negative experiences from happening in the future!

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    John Kyle

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  • Top 5 Mistakes Entrepreneurs Make When Scaling Their Business To 7 Figures

    Top 5 Mistakes Entrepreneurs Make When Scaling Their Business To 7 Figures

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    Opinions expressed by Entrepreneur contributors are their own.

    Scaling your business to seven figures is not that hard. But it also isn’t easy. At least, it’s not easy to maintain a seven-figure business and continue to scale it.

    I’ve learned this the hard way after building and growing several businesses to seven figures and beyond — as well as mentoring and investing in dozens more. It’s strange how easy it can feel once you build some momentum. Growth leads to growth and everything seems to be okay. Until all of a sudden, it isn’t.

    Having gone through this cycle myself, I’ve discovered a few common mistakes most of us make when in a period of growth. I share these in the hope they not only inspire you to scale your own business to new heights but maintain these levels so you can continue to smash through one glass ceiling after another.

    Related: 4 Ways to Build a Seven-Figure Brand and Sellable Business

    1. You hire too fast

    No matter what industry you’re in, it’s important to expand your team when growing your business. You can only do so much. You must delegate and work on the business instead of trying to do everything on your own. However, the timing around all this has to be right. If you push too hard too soon, you can overwhelm and halt all momentum.

    So although you need to grow your team — and constantly think about the different types of roles you need — it’s essential that you get clear on your priorities. By honing in on the roles that offer the most return, you ensure you maintain your momentum without putting too main strain on yourself, your existing team members, and, most important of all, your cash flow.

    2. You create too many offers

    I see this mistake all the time, often because an entrepreneur gets caught up comparing themselves to other business owners. You’ve heard the advice before, to diversify your portfolio and add multiple income streams. It’s good advice, in part. Yet you have to tread carefully because launching too many offers too soon places far too much pressure on your shoulders. Worse than that, it creates a disconnect between you and your audience because they don’t know what they should do next.

    Should they buy your course? Maybe hire you to coach them? How about that membership they can subscribe to? Or that other course, program or product?

    The last thing you want to do is overwhelm and confuse. Adding new income streams is important, but you don’t have to do it all now. Make sure you become a “go-to” authority in one or two areas and provide huge value to those you serve.

    Related: Meet the Mother Of Three Making 7-figure Income Working Part-time From the Beach

    3. You increase your expenses

    This mistake is a byproduct of the previous two because as you grow your team and add new income streams, your expenses rise exponentially. It can seem manageable at first, but before long it can spiral out of control. I’ve experienced this firsthand as my monthly expenses practically doubled month-on-month. It’s a disaster waiting to happen unless you get crystal clear on your finances.

    This is a continuous habit you need to nurture, ensuring you check in on your revenue and expenditure each month. It’s not that you shouldn’t spend more as you make more, but you have to give everything you invest in purpose. Whether that’s a new team member, improving your lifestyle or placing new resources into the business, you always have to have a reason for spending your money. If not, you can quickly run out of it.

    4. You don’t reinvest in your business

    This is a huge mistake and once again it’s one I used to make. There’s so much advice out there about how to invest your money. The problem is, most of it isn’t relevant to an entrepreneur because most of it encourages you to take money out of your business and place it somewhere else (stocks, shares, bonds, pensions, etc.). That makes sense for someone with a predictable income. But for an entrepreneur? No way! The best thing you can invest in is your business because this is what you have the most control over. So before you give your money to someone else to invest, make sure you fully support your business with the time, money and resources it needs.

    Related: 4 Ways to Invest More Deeply in Your Business

    5. You don’t take money out of your business

    It’s important to constantly invest in your business, but you have to continue to invest in your own life, lifestyle and personal growth. In the early days, I also recommend entrepreneurs take as little as they can and reinvest as much of it into their business. Yet this can only last so long. Once you build momentum and step into a period of growth, you have to embrace this yourself — not just as a business owner, but as a human being.

    I see this mistake play out too often as successful entrepreneurs struggle to step back and enjoy life. It’s a fine balance, yet it’s an important one if you want to find harmony. The alternative soon turns toxic as you begin to resent your business. It’s an easy fix because all you have to do is to commit to growing as a person as you grow your business. This means you too require (and deserve) investment: money, time, energy and attention.

    The rollercoaster ride you’re on is full of ups and downs. Just because you’re scaling and on the fast track to seven figures and beyond doesn’t mean there aren’t obstacles in your way. Avoid and overcoming these five mistakes will help you navigate your way to success.

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    Scott Oldford

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  • 6 Tips for Building a Successful, Scalable Software Company

    6 Tips for Building a Successful, Scalable Software Company

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    Opinions expressed by Entrepreneur contributors are their own.

    The company I founded as a startup ten years ago has over the years evolved into an international software company that receives orders starting at $100,000. Now our offices are located in six different countries, and the number of my employees has gone beyond one hundred. How did I accomplish this? I’ll share the six tips I learned along the way and I will leave it up to you to use or ignore them.

    1. Start with a well-thought-out plan

    Before creating a software company, I did thorough research on the industry and target market and earnestly evaluated my financial abilities. And while “learning-by-doing” supporters call for improvisation and change, my past entrepreneurial experience persuaded me that nothing would come out of it without a concrete, accurate and prudent business plan. Therefore, I thought over the strategy and rigorously calculated the income, turnover and expected profit for several years to come.

    Related: 4 Things Every Entrepreneur Must Consider Before Starting a Software Startup

    2. Delegate authority

    As the company expanded, we came to the realization that it was high time we started to scale up. The “everyone can do anything” approach is reasonable, especially when starting a software company. I believe multitasking is relevant and works well for startups, but it significantly reduces the productivity of medium and large companies.

    I came to the conclusion that there was no need to make this supreme effort to control everything; what I actually needed was to make sure that the workload was competently delegated. Now, my company exceeds hundred people, and every one of them does an incredible job.

    3. Overcome the urge to quit

    Have you ever heard the expression “survival of the fittest”? This also applies to building a software business. It is morally difficult to withstand the most tricky period — the birth and evolution of a business, and it can easily lead to burnout. At some point, I also had to fight the urge to quit. How did I manage to deal with it? I tried to sleep for at least eight hours, had small vacations with my family and read a lot. I strongly believe that productivity is driven by small things that make us genuinely happy.

    4. Constantly develop your team’s skills and techniques

    One of my main goals was to create a work environment that supports high individual and team productivity. So in my opinion, talent is to be valued more than skills. You can easily teach to be competent, but it’s impossible to make someone talented.

    That’s why I’m always searching for talented people. However, relying only on talent is definitely not enough to form a team of qualified specialists. The main value is the constant updating of skills and methods. The focus of technology changes every year, and we have to adapt quickly to these changes. As a result, we are proud to be a company that provides innovative products to our customers.

    Related: All Entrepreneurs Face Failure But the Successful Ones Didn’t Quit

    5. Trust is more important than money

    Creating a software business is not only about making money. This is a long game, which makes it clear that financial profit cannot be the only measure of a company’s value. The trust between employees, customers and the community also holds a lot of importance in a successful software business. So, I do my best to be open, honest and consistent in all aspects of my business, from products and corporate culture to partnerships.

    6. Invest in business growth

    Additional investment, in my opinion, should be an essential step for business growth. What do I mean by that, you ask? I began to invest more in projects and departments in the business that were producing great results. However, this did not mean neglecting other units. In the long run, this method turned out to keep my company from getting into trouble in the future. Keep balance, but tilt the board if needed.

    Related: 6 Tips to Drive Sustainable Business Growth

    Although the possibilities are almost endless, creating a software company requires a lot of effort. But if you develop a sound business strategy, attract the right people and build a responsive corporate culture, you are deemed to succeed.

    Looking back, I realize that I did everything right by following the tips listed above. As a result of my decisions and choices, we managed not to lose momentum during the pandemic and were able to withstand the severe test with dignity.

    I’m not sure I have sage advice for other entrepreneurs, but from my experience, I’ve learned one important truth: You don’t have to be an Ivy League alumni or have deep pockets. You just need to believe in yourself against all reasonable logic, no matter how trite it may sound. And never give up, even if there are seemingly insurmountable obstacles in the way. We all face them, but those who believe in themselves stay at the top.

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    Oleksandr Andrieiev

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  • 4 Smart Ways to Deal With Your Competitors

    4 Smart Ways to Deal With Your Competitors

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    Opinions expressed by Entrepreneur contributors are their own.

    The subject of competition can be a very polarizing thing. Many of the world’s most successful professionals proclaim they’re obsessively competitive, almost to a fault. The reality is that if you’re starting a business and you plan to have your business grow, you’ll eventually run into someone who had or has a very similar idea to the one that you can’t stop thinking about. In fact, there are probably 20 different articles on the subject of competition that are competing for clicks with this very article!

    So as entrepreneurs, how should we be thinking about our competitive landscape? These are a few of the observations I made as I wrestled with our competitors in the process of building my company:

    Related: How to Set Yourself Apart From the Competition

    1. Don’t ignore it

    When starting something new, it’s important to do a complete market scan to understand what and who you’re up against. Size your market, and list out your direct competitors, frenemies, as well as firms that are one or two moves away from becoming direct competitors. Figure out how much they’ve raised, the depth and breadth of their product offering and the experience of their founders and team. Use tools like Google Trends to understand key terms that are popular and commonly searched in your category to help inform your positioning relative to your competitors.

    If you’re unable to find at least three competitors in your space, that’s usually a pretty bad sign. It’s rare to be the first and only product to market. In most cases, entrepreneurs that claim to be “the only product” in the market are still searching for an actual market and problem to solve. Unless you have a unique insight with real customer traction inside of a category you’re creating, it’s usually easier to innovate and disrupt incumbents in an established category with a known problem and a defined buyer profile.

    2. Don’t be afraid to share more

    Oftentimes, entrepreneurs are hesitant to share any information publicly about their business or the product they’re building. In reality, your incumbents, particularly large established vendors, couldn’t care less about what you’re building. You could literally call the lead product manager working on a product in your space and share your business with them. There’s a very low likelihood that they do anything with the information you share with them.

    Big companies have established roadmaps that are difficult to adjust. Even if one of your established competitors wanted to compete with you, it would require them to shift resources off of their current priorities to do so. We went as far as publishing our roadmap publicly for customers and prospective partners to see when and how we were prioritizing things. That actually became an opportunity and moment for us to flex our position and our focus.

    When we built our company, one of our direct competitors immediately signed up for one of our free trials. They even took a prospective “partnership” call to get intel and information about our business. Two years later, that same company came back to us and offered to acquire us for a generous multiple of our revenues. In short, it could work to your benefit to share MORE with your competitors. Established competitors may realize how far behind they are in your category and make you an acquisition offer to accelerate their roadmap or build out their team.

    Related: 3 Reasons You Should Spy on Your Competition

    3. Don’t be an a-hole

    As markets heat up, competition can become fierce, particularly if there’s a limited window or land grab opportunity to establish yourself as a category leader. In the heat of battle, it can be tempting to start trash-talking your competitors when in a shared sales cycle. Don’t do it.

    It’s okay to highlight the differences between your product and your competitor’s product but do so in a way that elevates both positions while allowing you to reinforce your advantage. For example, if you’re selling to an enterprise customer segment and speaking with a SMB customer, there’s no harm in referring that prospect to a competitor that is focused on selling down market. Not only are you signaling that you genuinely care about the product fit for that customer, but you’re also demonstrating that you don’t NEED their business. Confidence is cool.

    When you elect to throw stones at competitors, it suggests you’re overcompensating for something. Prospects can smell desperation from a mile away, and that smell can carry over to future selling opportunities if you let it. Most importantly, don’t disparage your competitors in written form. I’ve had multiple prospects forward me emails from my competitor’s founders/CEOs with all of the apparent flaws in our product and business.

    Not only was this great bulletin board material that motivated our sales and product teams, but it also helped us uncover a new market opportunity that we hadn’t considered and that our competitor was beginning to sell successfully. We were second to market with this product; However, we executed better and ultimately won the category, thanks to the insight from our largest competitor.

    4. Don’t let it consume you

    Competition can be addictive. The highs and lows of success and defeat are what make the game of entrepreneurship fun. It can also be incredibly humbling, particularly when we’re on the losing end of a competitive sales scenario.

    Related: Don’t Declare War. Respect Competitors, and Capitalize on Your Own Strengths.

    I’m not suggesting that our marketing teams put down their battle cards or that we stop arming our sales teams with the resources they need to set “landmines” for competitive sales scenarios. However, your competitors are one data point that can help inform your understanding of the market you’re operating in. Use competition as an accelerant for your own learning and self-improvement. There can (and will) be multiple winners in a category. This is validation that your category is growing, which in turn drives more attention to the space you’re building in. Don’t run from it. Embrace it.

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    Justin Vandehey

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  • How a Clinical Advisory Board Can Grow Your Business

    How a Clinical Advisory Board Can Grow Your Business

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    Opinions expressed by Entrepreneur contributors are their own.

    Our marketing agency is anything but “average.” We don’t churn out content or try to sign anyone and everyone as clients. Instead, we value quality and only work with people who share our philosophy. I’m extremely proud of the relationships we build with our clients and the marketing we produce for their dental practices, but I’m constantly looking for ways to do more and be better. I’ve always believed that you should surround yourself with people who have different skills and abilities than you do, and fortunately, I’ve been able to do that through the team we’ve built and our clients. That is also the reason my agency has a Clinical Advisory Board.

    Related: How To Create An Effective Advisory Board

    Why we have a Clinical Advisory Board

    Our Clinical Advisory Board, or “the CAB,” as I like to call it, is made up of some of the most successful dental professionals in the industry who have agreed to share their experiences and expertise with us as well as with other practices that are interested in taking their marketing to the next level. The CAB allows me and my team to dig a lot deeper than some other marketing agencies are able to and really address the issues that dental practices in particular are facing in the marketplace.

    While I have over two decades of experience in marketing for the dental industry, neither my partner Shawn nor I am a dentist in today’s economy. When I was working in the corporate world, doing the marketing for a national dental laboratory, I noticed one lab was collaborating with a doctor as a resource. That partnership stuck with me, and when I started my own company, I wanted to recreate that same type of alliance, knowing that it could only be beneficial to me, my company and the dental practices I would be working with.

    We started the Clinical Advisory Board at my agency because we wanted to relate to our clients, their experiences and their actual needs more fully, and we also wanted some oversight from real clinicians. We use the CAB as a sounding board and a resource to deepen our knowledge of the current state of the dental industry and what is happening in the various markets my company serves across the country.

    Related: The Benefits of Bringing in an Advisory Board

    How the Clinical Advisory Board benefits our business

    To establish the CAB, we invited some of the most engaged and successful dentists we know to participate. It was important for me to have professionals in the field provide feedback on marketing. We wanted a group of dentists we could call on to answer clinical questions and to help us take our marketing beyond what is typically “expected.” I knew that having this group of clinical advisors to work with would distinguish our agency from other marketing agencies that rely solely on their general marketing experience and don’t delve deeper into industry specifics.

    Having the CAB keeps us on the cutting edge of dental marketing. The dentists who participate give us information about what is happening right now and what trends they are seeing among their patients and within their individual markets. Not only is this valuable information from a business standpoint, as it allows us to be far more competitive than we would otherwise, but it is also valuable for the dental practices we work with. The information we get from CAB members helps us anticipate our clients’ needs and gives us more authority in our decision-making.

    I’m not the kind of person who settles for what is acceptable. I always want to strive for more. When it comes to my company, my team, and the way we do marketing, I’m not afraid to ask for a clinical opinion. It’s the best way to perfect our craft and be more effective. Sharing the information I receive from our CAB members also keeps me accountable to my current and potential clients, because I cannot put something out there I don’t fully stand behind.

    There is always something new to learn in marketing and in dentistry, which makes the CAB an extremely useful resource. Without it, we would definitely have less of a competitive edge. Establishing the Clinical Advisory Board for our agency is one of the best decisions my partner and I have made for our business.

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    Jackie Cullen

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