Q: What do business owners have that employees don’t?

A: The strong personal qualities of a successful leader.

Cultivate these qualities in yourself and watch your business explode with success.

1) Be Self-Directed

As employees, we were so used to being told what to do that it’s often how we think of work: someone tells us what to do and we do it. As a business owners, on the other hand, you have to tell yourself what to do, even though it’s often easier to be lazy.

2) Be Goal-Oriented

Unlike employees, who often trade their time for a paycheck, as a business owner you must constantly work towards goals that are clearly outlined and explained to everyone on the staff. The best way to do this is to write down your goals.

They can be in the form of a business plan, a list of short-term goals posted on the wall of your office, a list of daily tasks hung up in a work area, a print-out of long-term goals that hangs in the break room — whatever — just as long as you and everyone else know exactly what you’re working towards.

These goals must be focused on OUTCOMES. A goal in itself is meaningless unless it produces an outcome. And if you don’t have the outcome in mind when you’re designing the goal, you can never really be sure if the goal was met or not.

3) Keep Your Eye On Long-Term Goals While Completing Short-Term Tasks

It’s easy to get wrapped up in the day-to-day trials of business ownership. Always keep one eye on the long-term goals, with measurable milestones along the way, and your enthusiasm will stay strong even when things are rough.

4) Be Flexible

Things often will go differently than you expected or planned. Accept this sort of unpredictability and, instead of being frustrated, you’ll enjoy the twists and turns on the road to success.

“The only thing that’s gonna stay the same is change.”
-Richard Butler, songwriter

5) Manage Your Time Effectively

When you’re the boss it’s really easy to get lazy and demand less of yourself than a boss would demand of you. It’s also easy to get off task — checking email, sending jokes to friends, engaging in long, unnecessary phone calls, taking extra long lunches, spending more time “preparing” a task than actually completing it.

One of the most effective ways to stay on task is to make yourself an employee of yourself. That is to say, give yourself specific tasks to complete with specific deadlines.

DO THIS >>> Each day before you leave, make a list of specific tasks that you must complete by the end of the day tomorrow. When you come in the next morning, look over these tasks and immediately start on the most difficult one. Then do the next one, the next, and so on. If you finish early, great! Enjoy the rest of your day without feeling guilty.

6) Be Decisive

When faced with a decision, give it some careful thought, then make a decision and proceed. Don’t put off decisions, and don’t second-guess yourself.

One of the things that separates leaders from followers is the ability to make decisions.

In other words, the difference between a manager and an employee comes down to decision-making skills. Cultivate a feeling of personal confidence and don’t be afraid to make the wrong decision. When appropriate, ask someone for their opinion, then make the decision. This makes the other person feel like they are part of the decision-making process.

Decisions should usually take the form of action plans — things that you or someone else can go and do immediately.

Decisiveness goes hand-in-hand with assertiveness. People need to understand that your decisions aren’t made in a haphazard way and that you’re not going to come back later and change your mind — after they’ve started working on your action plan.

7) Be Courageous

Allow yourself to take calculated risks. Most people are afraid to make decisions because they are afraid to fail. You, on the other hand, shouldn’t be afraid to fail at things in order to discover success.

Whereas most people are afraid to fail even one single time, successful business leaders fail multiple times on their way to success because they forge new paths and take risks.

Don’t be impulsive, but don’t be afraid to take a new road — do something that isn’t 100% guaranteed of success.

Most importantly, make sure you bounce back after failing and strike out on a new route without losing faith in yourself.

8) Maintain an Attitude of Openness and Honesty

Unfortunately, a lot of bosses like to have some sort of mystery to what they do because — often — they don’t do anything! They keep others in the dark, as if they have some kind of special powers that mere mortals wouldn’t understand.

Successful leaders, however, are open and honest about their work. Communicate your goals to employees and team members. Let them know that they are part of the big picture. When people work in the dark, they quickly get frustrated and turn against their boss. This leads to the inevitable feeling among the employees that “we” do all the work and “the boss” doesn’t do anything.

Remember, you’re not the Wizard of Oz. It didn’t work for him, and it has no place in your business.

9) Accept responsibility for mistakes — even when they’re not yours

Let’s say an employee spent 2 hours creating a report and brought it to you, but it was done all wrong. Did they do it on purpose? I doubt it. Instead of going off on the employee for wasting 2 hours, say, “I’m sorry. I don’t think I did a good job of explaining this to you.” Apologize for wasting their time, and it will create a lot of good will.

When it comes to customers, this is pretty much a no brainer. Never blame an employee for a mistake. It’s YOUR business and YOU are the boss. Take responsibility for correcting the mistake until the situation is rectifed.

10) Give credit for success — even when you can take the credit yourself

Remain humble and always remember that the people in your organization contribute to every success you have.

11) Be a teacher!

Always look for opportunities to educate employees, customers, and even competitors — without being preachy or condescending.

12) Ask for help when you need it

Some people think asking for help is a sign of weakness. Screw that. A good leader shouldn’t be afraid to ask for help, instruction, or explanation. You can’t make informed decisions until you know all the facts!

Don’t be afraid to not know something.

When you ask for help, you show people that you have faith in them. It’s also a sign that you’ve done a good job of delegating responsibilities. Avoid asking for help and you’ll just continue down a spiral of ignorance.

13) Have a Predictable Mood

Don’t you hate those people who seem to be in a different mood every time you see them? You never know which “version” of them you’re going to meet — the happy one, the depressed one, the angry one, the lazy one.

Those at the top often believe they have the luxury of inconsistency because no one can tell them what to do — therefore they don’t face any consequences.

They’re dead wrong!

Inconsistent and unpredictable behavior lead to distrust, low employee morale, and loss of customers/clients. The effects may not be immediately obvious, but like a virus, they slip in quietly and destroy an organization.

Instead, be the most level-headed person in the company. Gain a reputation for being “cool under pressure.”

Then, instead of fearing you, people will respect you.

14) Manage emotional people without getting emotional

This goes along with maintaining a level mood. Employees, partners, customers, clients, suppliers, landlords — and anyone else who’s having a bad day — will come to you with problems that have them all bent out of shape. Most people can’t control their emotions when they’re upset about something. It’s caused by frustration and a feeling of helplessness — the inability to solve a problem by themselves.

In situations like this, you need to be like a Buddhist monk — calm, rational, and comforting. Be tolerant of people’s emotional response to their problem, then ease their suffering by taking on the responsibility of solving the problem.

Good leaders resolve conflicts before they grow out of control. Bad leaders are afraid of conflict and allow it to fester until it explodes and causes everyone to get emotional.

15) Don’t be “one of the boys”

One of the most difficult aspects of being a leader is separating yourself from the rest of the group. No matter how friendly you are, there will always be an invisible line between the manager and the employees. Some managers have a hard time with this and try to compensate by being “one of the boys” — constantly trying to fit in with the group and always reminding them that he is just like them.

But you’re not one of them.

No matter how hard you try, your employees will never forget that you’re the boss. In fact, they need to know that someone is in charge! It’s reassuring for them to know that someone holds them responsible for their actions, that someone expects their success, that someone more level-headed/mature/intelligent/motivated/whatever — is captaining the ship. When you try to be one of the boys you rob your employees of that much-need reassurance.

As a result, tasks don’t get completed. Employees lose focus. Goals start to become more and more distant.

One of the burdens you take on when you start your own business is the burden of leadership.

Accept that the invisible line exists. Be friendly and a team player, but don’t cross the line. Have good relationships without having intimate friendships.

16) Delegate tasks and responsibilities without micro-managing

Bill Gates says that a manager must “define success.” Let people know exactly what you consider success and show them how they can reach it. Delegate tasks without micro-managing and they will do them without you having to stay on their backs all the time.

Ideally, this would create a situation in which employees learn to do their individual jobs better than you could do them yourself, thereby leveraging their skills and knowledge to make your business more successful than you could possibly make it on your own.

17) Roll up your sleeves and get your hands dirty

Some people think a good manager should know how to do the job of everyone under their supervision. I don’t agree with that.

It is, however, important that those in management positions are willing to “get their hands dirty” every once in a while by doing the “grunt work” — the boring, challenging, or repetitive tasks that you ask your employees to do every day. This goes a long way to defusing any resentment that workers naturally have for bosses. It’s one more way to earn respect.

Tell me what you think!

I’m sure you can think of a million other leadership qualities that a business owner needs. I’d love to hear your thoughts. Leave a comment below and let me know what I left out!

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Imagine dozens of investors in designer suits waiting — absolutely salivating — in anticipation of your business plan. Eager to read it from cover to cover. Ready to start a bidding war just to do business with you.

Weird Clock

You only have about 5 minutes to convince investors to read the rest of your plan

It’s nice to dream, right?

In the real world, investors spend about 5 minutes glancing over a business plan and deciding if they want to read it or not.

5 MINUTES?!?

I’m serious. Some people spend weeks reading a bunch of business plan books, months writing and rewriting their text, and many sleepless nights worrying about their financial projections, only to have their plan tossed aside after a quick glance.

Sucks, doesn’t it?

So does that mean investors don’t read business plans? Absolutely not. Investors HAVE to read business plans, otherwise they’ll never find that golden business idea.

Investors are sort of like gold miners — chipping away at rocks to discover the gold. The trick is to turn your plan into a chunk of gold — not a rock.

It would be nice if investors opened your plan, started at the beginning, read your plan like it was the latest bestseller, sitting on the edge of their seat, rushing to the climax, yet hoping it would never end.

The fact is, when investors sit down to give a business plan 5 minutes of their time, they jump back-and-forth, focusing on three specific parts of your plan:

    1) The Executive Summary
    2) The Management section
    3) The Financials

So why do I say that these are the only 3 parts that really matter?

Because unless you’ve hit the right buttons in these 3 sections, investors will just toss your plan aside and start reading the next one. Remember, they have a STACK of business plans on their desk, a 12 o’clock lunch meeting, and a 2pm tee time. Your business plan is the LEAST of their concerns.

So how do you make sure that your business plan shines like gold among a pile of rocks?

>> Mind Control <<

No, I’m not talking about magic tricks or hypnosis. I’m talking about writing a business plan that specifically addresses the wants and needs of investors, hits the triggers that cause investors to take notice, and CONTROLS THEIR THOUGHT PATTERNS so they WANT to read the rest of your plan.

How do you control an investor’s thoughts?

Well, I could spend hours explaining the Mind Control method, but the basic premise is pretty easy to understand.

Think of your business as a marketing tool. You’ve seen those crazy infomercials they show at 3 in the morning, right? Infomercials are some of the best marketing methods out there for selling goofy gizmos that you don’t really need. Why do they work so well? Because they address YOUR needs, YOUR desires, and they show YOU why you can’t live without their product. It’s all about YOU.

There’s a valuable lesson here:

If you want someone to give you their money, your business plan MUST be entirely focused on THEIR needs and THEIR desires.

Read that line again. It’s the most important line on this page, and it could be the difference between starting your own business and working for someone else your whole life. In fact, write it down (with a pen, don’t just print it out!) and post it above your desk so that every time you sit down to work on your business plan you’re reminded of this one fact.

I’ll say it again (it’s that important!):

If you want someone to give you their money, your business plan MUST be entirely focused on THEIR needs and THEIR desires.

Let’s take a look at these 3 important parts and see you how you can use Mind Control to get into the heads of investors:

Sell the Plan With a Strong Executive Summary

Investors always start reading at the Executive Summary. And that’s where some of them STOP reading! It’s a lot like the blurb on a book cover. How many book covers do you read before you finally decide which book to buy? You don’t have time to read every book in the book store, so you base your decision on the cover blurb. The Executive Summary serves the same function. It’s how investors decide if they want to read your plan or not.

Here are some Mind Control tips when it comes to the Executive Summary:

The purpose of every single sentence in your Executive Summary is to get investors to read the next sentence.

Every sentence is THAT important. Sell them on reading the next sentence, them sell them on reading the next sentence, and so on. If you have one single sentence that doesn’t make someone want to read the next sentence, cut it — rewrite it — NUKE that thing!

Show investors what’s in it for THEM.

Don’t beat around the bush. Say something like, “I’ve outlined a realistic Exit Strategy that allows investors to recoup a 500% return within 3 years by selling the business to a larger holding company.” Make sure what you’re saying is true, but always focus on the wants and needs of the investors. What do investors want? Typically, they want their money back, with a lot more money, in the shortest time possible.

Ditch your industry’s secret language and use the language of investors.

Investors say things like “ROI” and “USP”. Does your industry have its own secret language? Well, unless you KNOW that your reader is very familiar with the language of your industry, don’t use it! Speak in the investor’s language and you’ll put them at ease. Use language they don’t understand you’ll make them feel stupid.

Respect the investor’s time.

doom_clockJust because the Executive Summary is important and you know that investors go to it first doesn’t mean that you should squeeze half of your business plan into it. A good Executive Summary runs 1, maybe 2 pages — THAT’S IT!

Include a lot of white space — that means plenty of room in the margins, lots of headers, short paragraphs. White space makes a page more welcoming and readable. Have you ever opened a classic novel and seen text from edge-to-edge, with paragraphs spanning two or three pages and a font size that needs a magnifying glass in order to read it? Yeah, don’t be that guy.

Don’t Be a Jerk — Let Your Accomplishments Do the Talking

The Management section is where you get to talk about yourself. But it’s a double-edged sword. You don’t want to be a jerk, but you want to demonstrate your value. It’s a cliche for investors to say, “We don’t invest in business plans, we invest in people.” But it’s a cliche grounded in truth. Here’s how to show off what you’ve done without sounding like a show-off:

Focus on your accomplishments, not yourself.

Show what you bring to the business by laying all of your accomplishments on the table. A lot of people are afraid of the Management section because they don’t want to sound like they’re bragging. Your accomplishments aren’t bragging — they’re facts. Sell your accomplishments and you’ll sell yourself.

What does a cute baby have to do with business plans? Read the section to the left!

What does a cute baby have to do with investors and business plans? Read the section to the left!

Remember, you’re asking investors to take your business on as one of their “babies.” Imagine you’re trying to get a job as a babysitter for their chubby little newborn. And let’s say you can truthfully say to them, “I was Brad Pitt and Angelina Jolie’s personal babysitter for 5 years. As their babysitting consultant, I travel with them each year to visit and discuss potential adoptees.”

Do you think that sounds like a qualified babysitter? You know it! As long as it’s true, lay out all of your accomplishments and let them speak for themselves. Contrast the above sentence with this one:

“Brad and Angie thought I was such a great babysitter that they asked me to be their personal babysitting consultant and help them choose babies to adopt.”

Same basic idea, but now we’re getting into bragging territory. And we all know that nobody likes a braggart.

Keep in mind that we’re focusing on what investors want.

What do they want?

They want to know that the management team you’ve put in place can take care of their adopted “baby” — the business and the money they’ve put into it. Convince them that you’re the right person for the job by showing them your accomplishments, not your ego.

Show them that your team has the experience to manage the business.

If you can show a bunch of accomplishments in your industry, great. But what if you don’t have a golden resume? Maybe you’re just starting out in your industry or you’ve been working your way up and you’re ready to go to the next level by launching your own business.

If that’s the case, you want to put investors at ease by assembling a team of managers, consultants, and joint venture partners that DO have strong accomplishments. Outline THEIR accomplishments and paint a picture of the TEAM as a strong, cohesive unit focused on the success of the business.

Stroke investors’ egos by showing what THEY bring to the business.

Sometimes it’s appropriate to point out that the investor is an integral part of the management team.

Do your investors want to be a part of your team? Many equity investors have tons of valuable business experience that they bring to the businesses in their portfolios. If you’re dealing with a “hands on” investor who likes to be involved, show how important that investor’s experience is to your business. Treat them like a member of your team.

This, of course, requires an individualized plan and a good understanding of your investors and their experience. But if you’re in this situation, take advantage of the opportunity to make your investors feel special.

Don’t Work For Money — Make Money Work For You With Goal-Focused Financials

The third thing investors look at in your plan is the financial section. This includes various documents like Income Statements, Balance Sheets, and possibly Cash Flow Statements and lists of assets owned, as well as planned asset purchases. It also includes a written narrative — a summary in words of what these documents show.

Focus on your investor’s wants and needs. (Yeah, I say that a lot.)

Some entrepreneurs make a “one size fits all” business plan and plaster the town with it. Bad idea. Every person who reads your plan is looking for something a little different. Equity investors, Venture Capitalists, bank loan officers, and your rich Uncle Bob have HUGE differences in what they want and need from your business.

Learn about your investors and pick one of these approaches:

Plan Your Exit Before Your Entrance

If your business is the type that will make big profits in a short amount of time, show how the investor’s money converts into profits, then — like a bank robber — show them how to get out. Many investors want to get into a business for 2 or 3 years, then pull out and move on. They need to make ALL of their profit in that time.

Financials like this are structured like a movie: Investment comes in, a little time to build the business, a big splash in the marketplace, rake in the profits, cut the cord and start the next project.

To accomplish this, create strong financial documents that are always focused on the Exit Strategy. Getting OUT of the business is the goal.

I could spend all day talking about Exit Strategies, but here are a couple ideas to get you thinking:

  • Your business could be bought out by a larger business in the same industry (possibly a competitor)
  • Your business could be bought out by a larger business that wants to get into your industry
  • YOU or another business partner could buy out your investors’ shares
  • You can close and liquidate your business’s assets after banking a bunch of profit
  • IPO (everybody loves to talk about it, but few small businesses should plan for it)

Show a Build-Up to Expansion

Some businesses grow in stages. For instance, a retail store that sells mixed martial arts supplies may eventually open its own training gym, then start hosting small tournaments, and eventually promote large international events.

If your business grows through market expansion, show how your financial plan enables various stages of growth. The initial investment grows into seed money to launch the 2nd stage, which grows into the funding for a 3rd stage, and so on. With businesses like this, it’s really easy to show milestones.

*A note about MILESTONES. Every business, regardless of the industry and growth plan, needs to show certain milestones. Think of milestones as short-term goals. Then show your reader how your business reaches each of these goals. For instance, with a lawn care business, the first milestone might be securing 3 country club accounts — enough to reach break-even and keep everyone employed. The next milestone would be to secure 2 more large accounts and hire additional employees, thereby generating positive cash flow.

*Another note about milestones — for the overly ambitious. Your first milestone is NOT an IPO. How many milestones do you think Google met before it went public? Plan short-term goals and meet them one at a time.

Show Long-Term Income and Loan/Investment Repayment

Many businesses are simply about creating long-term income for those involved. While you’re unlikely to attract big-time players to a business like this, friends, family, and banks often like to see a business plan that simply pays back its investment while providing a good income for everyone.

For this type of business, you want to show how your business remains profitable over the long-term so that it can pay back any loans and provide income for owners/employees and Return On Investment for any investors.

Although a business like this might take the slow-and-steady approach to long-term success, it’s still important to have milestones. Always have short-term goals in mind and meet those goals in a methodical way.

Control the Minds of Investors to Fast-Track Your Business Funding

These are a few ways you can use the 3 most important parts of your plan to control the thoughts of potential investors. I hope it gives you something to think about.

Remember that line I told you to right down? You wrote it down, right? If not, here it is again:

If you want someone to give you their money, your business plan MUST be entirely focused on THEIR needs and THEIR desires.

With that in mind, get started on your business plan and begin your journey to personal and financial independence. Start right now while you’re excited!

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