Should You Be the Leader of Your Small Business?

Some entrepreneurs are born to start businesses -- often more than one. But not all of these idea people really want to lead a company. They simply don't have the leadership traits that would make them the best choice to head the company, especially as it grows larger. That's why so many founders are replaced before a company goes public -- investors want to know that a vibrant, inspiring figure whose core competency is leadership will be there to drive growth.

It's common for founders to step back from being CEO and take on some other role -- common titles for founders who have stepped away from the top spot include chief technology officer, board director, chief operating officer or research and development director. Some people are full of creative spark and have a passion for coming up with new concepts or for marketing their idea. Others love to lead teams of people and inspire them to do their best.

But rarely do these two innate drives reside in one person. Many entrepreneurs cling to leadership simply because they fear the loss of control, even though their business would be better off if they brought a passionate leader to the helm and focused on the part of the business they love.
So how do you know if you should lead your business? Here are some questions you should ask yourself:

• Do you get a bigger thrill out of energizing workers and seeing your employees succeed than you do when you are successful yourself?
• Do you feel that you wouldn't know what to do with yourself if you weren't heading the company?
• Do you know instinctively what you want to do when confronted with managerial problems such as a team that has failed?
• Do you feel compelled to lead? Dave Logan, a management consultant and an associate dean at the University of Southern California's Marshall School of Business, recently wrote, if you feel you could do no other job,that's a strong sign you have the drive to continue leading your business to success.

On the flip side, if managerial tasks bore you, and you find yourself wishing you could get back to the lab/computer/workbench to tinker, your company might be better off without you at the top.
Do you feel driven to lead your business? Leave a comment and tell us if you'd rather take another role.

How to Build a Brilliant Team

BY Katherine Duncan | March 15, 2012|

 

An innovative idea may inspire a new business, but it takes brilliant people to make that business a success. Michael Crom, executive vice president and chief learning officer of Dale Carnegie Training and co-author of The Leader in You: How to Win Friends, Influence People and Succeed in a Changing World, discusses the first step to startup success: assembling your team. Read on for Crom's advice on finding the best people and filling leadership roles--while still saving some cash. 

 

What's the most important position to fill at the outset?

No. 1, you need to assess your own competencies. As the founder, you really should have a very strong vision and clear goals for the company. If you're not able to meet that need, that may be the very first thing you have to fill in terms of leadership roles. You need to look at creating a competency map of what you need for your own company: Very often for startups, fundraising and relationship-building are going to be key. Selling skills, project and management skills--those are ones that come to my mind instantly.

What personality traits should entrepreneurs look for?

It's important to look for people who are real go-getters and are passionate about the goals you have for the company. Also, look for people who have past work experience that's relevant to what you're doing, particularly people who have worked in small companies, because they aren't used to having to worry about other people doing things for them. They're not used to worrying about corporate rules and regulations, which you may not have in a startup, so they can be more independent in their ability to do things, and they don't mind crossing over barriers and doing multiple tasks. Experience in a large company can be valuable, but save those hires for when you're beyond the initial startup phase.

Where can valuable team members be found?

New business owners tend to really love what they're doing and are so excited by it, they live with gusto. That enthusiasm will actually begin to attract people to your team and attract people who want to help--that's a great starting point. You also need to take some time to be active in your community. I even encourage you to do something for people who can do nothing for you; you'll be surprised by how many fellow business owners are attracted to that. Volunteering is a great way to get out and meet people to expand your network. In lieu of that, there are some great social networking resources online: LinkedIn and Facebook, for example, are tremendous tools to help find people with talent.

Do you have any tips for adding staff when the budget's tight?

A board of advisors may be the way to do that. By looking at your own social network, you can often find people who just enjoy being around the excitement of a startup entrepreneur. Look for a diversity of backgrounds when assembling your board of advi-sors; you might look for someone who has a financial background, someone who is a great marketer, a person who is strong on business context, etc.
Your first hires should be people who are different from you. The other thing that I would look for in my first group of hires, or the people who are going to help out at the onset, are people with multiple talents.

This article was originally published in the March 2012 print edition of Entrepreneur's StartUps with the headline: Build a Brilliant Team.

Basic Negotiating Tips Anyone Can Use

During a negotiation, it would be wise not to take anything personally.  If you leave personalities out of it, you will be able to see opportunities more objectively.  Brian Koslow

From deal making to buying Gucci purses in the streets of New York, negotiating is a part of life.  And yet, many of us are so uncomfortable with it that we cave in and agree to anything!
Some cultures are trained to be ruthless negotiators, and certain areas of America contain more skilled negotiators than others.

I have never been very comfortable with negotiating.  Shopping trips to Mexico would have me paying more than I should just because I don’t enjoy the game of talking someone down on a price.  After all, I don’t mind paying a little more for a box of Chiclets if it means a poor street kid will eat better that night.
But, when it comes to survival in business, I’ve had to learn to negotiate.  I’ve read books such as Getting to Yes and I’ve taken negotiating workshops through Karrass, Inc.  And though I’m not the most aggressive negotiator, I have learned to keep up with the best of them. Just as there are guidelines to cooking a turkey, there are guidelines to negotiating.  These basic guidelines will help prevent you from making a big mistake during your next business deal:
NEGOTIATING MUSTS:

• Research Before the Negotiation:  Do your homework.  In a business deal, you want to find out as much as you can about the company and the people you are dealing with.  This will aid in your negotiation.

• Know your Numbers Before the Negotiation:  Go into a negotiation knowing what you want.  If you don’t know what you want, you’ll never get it!   Write down on a piece of paper three things:

1. Your desire outcome;
2. Your drop dead lowest outcome that you will agree to if you have to; and
3. Your Deal Breaker, which is the outcome that will cause you to walk away from the deal.

• Ask for What you Want:  Often, a client will pay or give more than you thought.  Don’t be afraid to ask for what you want.

• Talk less, Listen More:  Understand where the other party is coming from.  Ask a lot of questions so that you know what their concerns are and their needs are.  Sometimes it’s not what you think.

• Concessions should be Tit for Tat:  Make sure that if the other party asks you to make a concession (give something extra or take less money), that you are given something extra in return.  In business deals, you can get very creative with this.  Ask for free advertising or extra products or plane tickets, etc.  Avoid granting concessions without anything given to you in return.

•  Change your Offer if Need Be:  Often we are wary of changing our offer in the middle of the game. But sometimes it’s necessary, especially when the deal has changed and new information is gained during discussions.  Don’t be afraid to withdraw something you offered earlier, if it makes sense to do so now.

• Brainstorm to make the deal fair to all:  The best deals are ones that have never been done before, so says Seth Godin.  Get creative;  if you reach a point in negotiations where you can’t agree, think up a new way to get you what you want and to get them what they want.

• Follow up in Writing:  Always follow up a discussion with the points agreed to in writing.  Email this to the client and make sure that you both have clarity on what was discussed.

NEGOTIATING NO-NO’s:

• Never Negotiate Against Yourself:  If you gave an offer or a price and the other person didn’t accept it, DO NOT offer them a lower number.  This is called negotiating against yourself.  Instead, ask them to make you a counter-offer.

• Don’t Fall for the “Hurry up and Sign!”  If your new business partner is giving you the rush-rush to sign a contract before you are ready or have time to think about what you are agreeing to, Don’t Do it!  Ask them to slow down and to allow you the time you need.

• Don’t Negotiate with Someone Who Doesn’t Make the Decisions:  If the person you’re dealing with says “I have to go ask my boss now if he agrees” insist that you deal directly with the person making the negotiating decisions.  Don’t fall for this game.  It’s a negotiating tactic.

• Don’t Agree to Something That Feels Wrong:  Look out for Red Flags.  If the deal feels bad, worries you or turns your stomach, don’t agree to it.  Period.

• Don’t Regret your Decision Later:  Learn to trust your decision making.  Once you make a decision on a negotiation, look forward, move ahead, and never look back with regret.  Learn from mistakes, but don’t feel regret.

• Don’t fall for the “But it’s great Promotion for you” Line:  When negotiating a business deal, the price you are paid should have absolutely nothing to do with how well the product will sell or how many famous people are involved or anything else like that.  When a client uses the “But it will be good promotion for you” line , ignore it.  Don’t give it any merit or consideration.   It’s irrelevant 99% of time.

• Don’t be afraid to walk away if it goes badly:  A bad deal is a bad deal.  Don’t agree to one.

I hope these tips are helpful.  If you have any to add in the comments, please do.   You may want to check out an article on this topic that I really liked titled Negotiation Tips for the Beginner

by Man Vs. Debt. Basic Negotiating Tips Anyone Can Use