A Roadmap for High Performance
Entrepreneurship
Clive Butkow

1

A roadmap for high performance entrepreneurship © Clive B...
Welcome and introduction
Demystifying Entrepreneurship :
How to think and act like an entrepreneur – Key
lessons from my e...
Why so many entrepreneurial
businesses fail?

3

A roadmap for high performance © Clive Butkow 2013
Entrepreneurs envision themselves succeeding

“Whether you
believe you
can do a thing
or not, you’re
right.”
– Henry Ford
...
Why so many entrepreneurial
businesses fail?


No exit strategy



Do not know their nature
(artist, manager, leader and...
Why so many entrepreneurial
businesses fail?


They do not build their business
into an asset of value that one
day can b...
Why so many entrepreneurial
businesses fail?


Lack of clinical execution (not
about ideas but rather
execution)



Do n...
Why so many entrepreneurial
businesses fail?


Do not recognize that revenue is
vanity, profit is sanity and cash
flow is...
Why so many entrepreneurial
businesses fail?


Stuck in their box and hence
cannot see behind corners and
jump into trend...
Why so many entrepreneurial
businesses fail?


Do not focus 80% of their
energy to the areas that
generate the most rewar...
Why so many entrepreneurial
businesses fail?


Not willing to listen to feedback
(fall in love with their ideas,
product ...
Why so many entrepreneurial
businesses fail?


They do not lose their business
plan and hence do not build a
road map to ...
Why so many entrepreneurial
businesses fail?


Fail to bootstrap and quickly run
out of cash



They do not understand t...
Why so many entrepreneurial
businesses fail?


The founders cannot lead
people which is the hardest part
of running a com...
Why so many entrepreneurial
businesses fail?


The leaders will not accept
feedback from peers, mentors or
employees in t...
Why so many entrepreneurial
businesses fail?


Not financially literate and do
not know the difference
between cash flow ...
Why so many entrepreneurial
businesses fail?


When it comes to legal and
accounting, there are 3 basic
mistakes entrepre...
Why so many entrepreneurial
businesses fail?


They do not recognize that
being able to sell is the basic
number one skil...
Why so many entrepreneurial
businesses fail?


Many entrepreneurs have a great
product or service but don’t
have the busi...
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Entrepreneurial lesson number 1 : Why so many entreprenerial businesses fail

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Entrepreneurial lessons from success and failure. This presentation includes a few of the lessons I have learnt from my exposure to numerous entrepreneurial businesses from pre and post-revenue start ups to more established businesses. Titled "Why entrepreneurial businesses fail"

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  • A ROADMAP FOR HP LEADERSHIP - FROM VISION THROUGH EXECUTION TO SHAREHOLDER VALUE
    Outcome 
     
    Boost your capacity to change and move to the next level of your leadership performance 
     
    Good afternoon, o come on one more time good afternoon.
    Before we start I want to make sure I am in the right place.
    Who believes leadership is the key attribute that differentiates a high performing company from the rest? Yes / no
    Who believes the company or government entity is a High Performing company today ? Yes / no
    Who believes they can still develop on their leadership journey? Yes / no
    Who believes that leadership is a destination and you have arrived? Yes / no
    Good then I am in the right place
    Title: A Roadmap for High Performance Organizational and Personal Leadership - from vision through execution to shareholder value
     
    Challenges  
     
    A leadership crisis looms. Trust in leaders has tanked, new business challenges sprout up virtually overnight, and experienced leaders are in short supply. Plus there's a pitched battle for employee talent. Today's leaders must be able to identify, build and retain talent and then effectively lead these people and teams to achieve the highest level of personal and organizational performance. 
     
    Solution
     
    High Performance Leadership - one intensive day with the focus on you and growing your business or Government entity. The session will cover practical experience of how High Performing Leaders create High Performing Teams resulting in High Performance Results. The session will help you inspire, trust, build credibility with people and unleash the talents and energy of a winning team. The session will also include how leaders should spend their efforts and create a place where people want to stay and contribute their best effort, time and time again, helping your organization execute and achieve its most critical priorities.
    STOP
    How many of you have heard this comment - Yes no, you heard that folks how many of you believe it is true yes/no - not true at all
    Ask the question if I am in the right room “about the importance of leadership to driving business success”? Who believes more effective leaders will outperform their competitors?
    You can improve as a leader in whatever role you currently play in your organization and help drive business success?
    Before I start by the show of hands how many of you are working in corporates? How many as entrepreneurs in your own business, how many working in government or parastatals?
    STOP
    Real leaders are ordinary people with extraordinary determination
    Leaders do not force people to follow but rather invite them on a journey
    A leader is someone who believes in you and gets you to believe in yourself
    leaders make the impossible possible
    Leaders consider the past and evaluate the present and create the future
    4 things to get right:
    Strategy is different in a volatile world
    Strategy is a marathon 8 years plus a series of sprints and reassess where you are – permanent reassessment
    Vision where do we want to be in 2020
    Have a 3 year rolling plan and stress test every quarter stress test the hypothesis what if china,. Talent. Pricing Attrition, etc.)
    Permanent stress test the hypothesis to reconfirm or correct the trajectory
    Need to be nimble agile flexible which is not easy
    feedback to leadership must be at speed
    Business model must be clear – what is your portfolio be clear what you do
    Pierre Leadership
    Truly global flexible nimble
    Need to be relevant to know what is going on around the globe
    Do not move people but rather ideas export them from the south to the north at speed
    Cloud strategy got it wrong my 10 years estimated to would take 10 years and it took 10 months
    Speed of change has a profound impact on leadership – leadership needs to cope with this
    VUCA – leading in this world (volatility, uncertainty – cannot predict events , complexity- at ease with complexity, ambiguity - no clear answers, management and leadership has to be reinvented). Need to try thing and need a 2020 vision as well as a 3 year rolling plan.
    Need to try things out in a world where you try things rather than know exactly what you are betting on
    Difference between leading and managing in this world
    Leadership is to drive, inspire, to manage is to run something and delivering results (ply by the rules)
    Leadership starts by inspiring and mobilizing and driving in a VUCA environment
    People are looking ta you to lead ask you as the CEO where you are going and how we are going to get there (communicate inspire and mobilize the managers)
    leverage the ecosystem of partners to be successful recognizing that sometimes you partner and sometimes you compete
    You are permanently watched by your people and the market and lead your corporate values
    Drive drive drive and be out there with your people
    People do not trust the ceo
    Be relevant informed and learn learn and learn
    Speak to your people and listen to what is happening around the country and the globe
  • Introduce myself and why I am qualified to be her today
    Privilege and honor for me to present o the current and future leaders
    I am pleased to be here with you and It is a privilege for me to be here today and have the opportunity today to address/speak to so many current and future business and government leaders
    I have been at Accenture for my entire working life which has been 28 years after graduating with a computer science and maths degree.
    I have played a key leadership role in leadership development since I made partner in the then Anderson Consulting in 1997.
    I am now in an entrepreneurial role having bought into a technology start up and running the company. For the next hour I
    Introduce myself – who am I and why am I qualified to speak to you all here today
    I will talk about the good the bad and the ugly of leadership in a high performance company
    Make the session interactive to also hear what is on your minds regarding running a HP company
    Ran leadership development for 15 years in Accenture since a made partner in 1997
    Ask where they work corporates , entrepreneurial ventures government etc. – the talk today is relevant to all businesses across all industries
    How to take on big companies and win
    Introduce myself my career at Accenture and various leadership roles
    Passion for leadership and I believe this separates good from the great companies
    Recognizing this as an issue I have started I have started running soft skills (leadership) training courses for a number of schools and currently running these courses for teachers and the matric. I recognize that leadership does not develop in a day but does develop daily and hence I am trying to make a small difference to the students and teachers and hopefully help grow a stronger group of leaders. I am a firm believer that this training needs to commence at the school level and not only commence with tertiary education or in business.
    I have developed a passion for leadership over the years and I am now using these skills in helping a number of companies. Schools and other organizations develop their leadership skills. I am also currently working with a number of schools in rolling out leadership training to the teachers and matrics.
    STOP
  • 2 KEY LEADERSHIP TENANTS ARE THE RIGHT PEOPLE (WINNING THE WAR FOR TALENT) AND HAVING THE COURAGE TO DRIVE CHANGE
    The most stable companies have strong leaders at every level of the organization. The only way o develop such widespread leadership is to make developing leaders to be part of your culture.
    Leadership everything rises ands falls on leadership. Let me repeat everything rises and falls on leadership. Remember the higher the leadership the greater the effectiveness. Secure leaders raise up and empower other ;leaders to positively influence them.
    To reach the highest level of effectiveness you need to raise the lid of leadership ability. To attract better people you need too lift your lid on your leadership ability. The law of the lid – determines the persons level of effectiveness. The higher the leadership the greater the effectiveness. A company cannot grow above the level of its leaders – is the leaders area 4 then the company maximum level will be a 3. It is not how far we advance ourselves but how far we advance others. I believe that everything rises and falls of leadership and to beat the competition and grow market share HP leadership made the difference. I have seen that these HP leaders are visionaries and are able to see the invisible (and the blind spots – see around corners) and make the impossible possible. Leaders find the possible in the impossible establishing a route for others
    From my experience leadership ability is the lid (glass ceiling) that will determine the individual and companies level of effectiveness. The way John Maxwell (one of the words most renowned leadership gurus) describes the law of the lid. He describes leadership and organizational effectiveness on a scale of 1 to 10, (I will be using the 1 to 10 scale through out my presentation today). If you are a leader that is rated a 5 then unless you grow your leadership effectiveness/effectiveness the business that you run and the people that you lead will not be higher than a 4 and hence you create an environment of mediocrity.
    As I have become a more experienced leader I see myself as a lid lifter. That is the main function of a leader. If I can lift the leadership lid on my team members then I am doing my job. If leaders are lid lifters for the leaders in the middle of the company then those leaders become load lifters for the leaders on top of the company.
    Without the right leaders charting the course the ship will never get out of the harbor and we must remember that ships were not built to stay on the harbor. Without the right leadership your company will not out perform the competition on a consistent basis and you will not be running a HP company.
    The first person you need to lead is yourself – we always tend to think that leadership is about leading others and yes whist it is first and foremost you need to lead yourself. I am referring to leading by example having the leadership qualities in you that you want to teach someone else. Giving the leadership values that you want to impact on someone else. I am talking about visually leading people as leadership is visual. Every person you followed you saw first as people do what people see. It is not what you say to them that makes you affective but what they see in you. Visual example is the most powerful leadership tool.
    Everything rise and falls on leadership. This is because a persons ability to make this happen in and through others depends entirely on his ability to lead them. All leaders have 2 things in common they are going somewhere and they are able to persuade to go with them.
    To many leaders are like travel agents they send people places they have never been themselves. We teach what we know but we reproduce what we are. If you want to create great leaders you need to be a great leader.
    Vision is the ability to see the invisible. If we can see the invisible we can achieve the impossible
    Remember the higher the leadership the greater the effectiveness. Leadership ability is the lid that determines a persons level of effectiveness (if leadership is a 6 level of effectiveness will be a maximum of a 5). Everything rises and falls on leadership. Secure leaders raise up and empower other leaders to positively influence them. Your leadership ability always determines your effectiveness and potential impact you make on the company.
    Story about Ray Kroc and the MacDonald brothers (dick and Maurice) opened first Mac in 1937 and by mid 1950’s revenue was USD 350K. They were never able to take the business further even after they tried to franchise the business. Leadership ability or lack of leadership ability was the lid on the brothers effectiveness (or ability to succeed). Leadership ability is always the lid on personal and organizational effectiveness. They were very efficient managers but did not have a vision and could not lead. In 1955 Ray Kroc who was 55 bought into the business and they formed Macdonald Inc. In 1961 he bought exclusive rights to the business for USD 2.7 Million and the rest as they say is history.
    Leadership develops daily and not in a day (John Maxwell defines this the law of process) but rather in a lifetime and it is a journey (it is not static and no matter where you start you can still grow) that we never arrives there irrespective where we start the journey. Leadership development is a process not an event (leadership is developed by doing leadership)
    The bigger problem is the ripple effect that it has on future generations of people is that since they have leant from a weak leader they also reach their lid very quickly and the problem continues.
    The bottom line of leadership is that it is not how far we advance ourselves but how we advance others – be of service to others.
    Leaders need to provide the vision where leaders with vision are able to see the invisible and if you can see the invisible you can achieve the impossible.
    Too often when I have run leadership training I have had someone from the audience ask me or come up to me and ask me what is the one thing that I can do better that will make me a more effective leader. My response which is quite simple is that there is no one thing that will make you a more effective leader as leaders practice various traits every day that makes them effective leaders.
    I also have to stress that leadership is not an event, like a training program, a book on leadership, etc. a presentation from someone like myself today, It is rather a journey and not a destination and develops every day that you are practicing leadership (is does not develop in a day). No microwave process to leadership.
    Q – can you every reach your destination as far as leadership goes?
    As I said leadership is a journey and no matter who you are me, all of you,. Barack Obama. Winston Churchill they will never reach that destination they will never arrive.
    We are all on this leadership journey the only difference is that we are all at a different starting point on that journey.
    Any leader that thinks he has arrives needs a wake up call as I call this destination disease which is the day that you stop progressing or even start gong backwards in your leadership journey. I unfortunately have come across to many supposed leaders that believe that they have arrived and have nothing more to learn. I normally where appropriate sit the person down and have a heart to heart about what real leadership is all about.
    Leadership is about service to lead your people (to serve people something larger – I thought leadership was about being in the driving seat but I learnt that everyone is a leader at different times and in different ways and different situations
    The person who serves others and helps people experience their needs you will achieve anything
    If I serve I can lead as motive does matter –serving someone you become their leader
    STOP
    As a leader you are a servant – servant leader. The person that leads by demand or position can only lead for a short period of time but the person who serves and helps other people experience their needs then together you will achieve anything.
    True leaders do not practice leadership they live leadership – they have a desire and purpose to serve.
    HP leaders are devoted to learning and HP are learning companies – places where ideas are the currency for success.
    If I serve I can lead as motive does not matter as I cam doing things for the other person and my motives are admirable and trustworthy. IF you serve someone you become their leader.
    Leaders consider the past and evaluate the present and create the future.
    Margaret Thatcher said that being powerful is like being a lady if you have to say you are you aren’t.
    A leader can influence organizational culture – ethics, values, diversity, etc.
    The only way to grow the company is to grow the leaders within it.
    He who thinks he leads but has no followers is only taking a walk.
    Leadership is about daily preparation – boxing is a good analogy because it is all about daily preparation .
    Where will you company be in 5 years from now if you do not focus on raising up leaders? I will tell you not where you want to be. You need to work in an environment that unleashes leaders. Are you growing your next generation of leaders?
    Vision is the ability to see the invisible and if we can see the invisible we can achieve the impossible
    They are not only able to chart the course but
    True leaders do not practice leadership they live leadership
    I have often found that many clients I have worked with and some parts of my own organisation have both feet in today and solely focused on this quarter rather than having one foot in today and one foot in tomorrow and focused both on this quarter and the business for the years to come
    Leadership is about serving others.
    Your leadership will determine the success of the current and future generation of your people. The people you will develop will also impact all the people their lives touch
    Need to demystify leadership – leadership is the ability to translate vision into reality
    Leaders are not born they are made. Any they are made just like anything else through hard work
    Leadership is a journey not a destination and leadership develops daily and not in a day
    Your leadership will determine the success of the current and future generation of your people. The people you will develop will also impact all the people their lives touch
    –example is not the main thing in leading others it is the only thing
    Leadership rises and falls on your attitude which can be your best friend or your worst enemy (it is the currency of leadership and why people follow other people – it draws people to you or repels them)
    Leadership and learning are indispensable with each other – JFK
    IF YOUR ACTIONS INSPIRE OTHERS TO DREAM MORE, LEARN MORE, DO MORE AND BECOME MORE THEN: YOU ARE A LEADER
    A leader is a dealer in hope
    The function of leadership is to create more leaders and not more followers
    Recognize you are a role model and need to set a good example – a leader is an example to others through his own conduct
    Not our position but our disposition that determines success – disposition is our attitude
    We cannot choice what cards are dealt to us but we can choose how we play the cards
    Leadership culture – strong stable HP companies have strong leaders at every level of the company. The only way to develop such wide spread leadership is to make developing leaders part of the company culture. How many companies do you know that have had a successes ion of leaders come up within the ranks of their own company? An example is coke when the leader passed away the share price di not even dip as they have created a long line of successors which were publically known.
    A leaders ability to cast a vision does not make them a leader it does however mean you are a good communicator. A leader needs to not only cast the vision but take people where they need to go.
    Anyone can steer a ship but it takes a leader to chart a course and member that ships were not built to stay in the harbor.
    Real leaders are ordinary people with extra ordinary motivation/determination
    Leaders do nor force people to follow they invite them on a journey
    Never tell people how to do things . Tell them what to and they will surprise you with their ingenuity
    Honor people and they will honor you
    Fail to Honor people and they will fail to honor you
    I thought that leadership was about being in the driving seat but I learnt that everyone is a leader at different times and different ways and different situations.
  • Mcdonalds story about making burgers
    Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Mcdonalds story about making burgers
    Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • SUCCESS LEAVES CLUES : YOU CAN COMPRESS YEARS INTO DAYS IF YOU CAN LEARN MORE FROM OTHER PEOPLES EXPERIENCE THAN ONLY YOUR OWN
    Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Lack of clinical execution (not about ideas but rather execution)
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Slide Time: 1 minute
    Key Point: “Increasing your emotional intelligence has far reaching benefits beyond strengthening your executive presence. “
    Explain: “High emotional intelligence will lead to better self-confidence, ability to handle difficult situations without taking them personally, help you to build strong relationships, etc.”
    Transition to Next Slide: “Let’s now look more deeply at the components of Emotional Intelligence.”
  • Entrepreneurial lesson number 1 : Why so many entreprenerial businesses fail

    1. 1. A Roadmap for High Performance Entrepreneurship Clive Butkow 1 A roadmap for high performance entrepreneurship © Clive Butkow 2013
    2. 2. Welcome and introduction Demystifying Entrepreneurship : How to think and act like an entrepreneur – Key lessons from my entrepreneurial journey 2 A roadmap for high performance © Clive Butkow 2013
    3. 3. Why so many entrepreneurial businesses fail? 3 A roadmap for high performance © Clive Butkow 2013
    4. 4. Entrepreneurs envision themselves succeeding “Whether you believe you can do a thing or not, you’re right.” – Henry Ford 4 A roadmap for high performance © Clive Butkow 2013
    5. 5. Why so many entrepreneurial businesses fail?  No exit strategy  Do not know their nature (artist, manager, leader and entrepreneur)  Do not know the lifecycle/stage of their business  They make the fatal assumption : if they understand the technical work of a business, they understand a business that does that technical work  Do not leverage OPE, OPM, OPR, OPA, etc. 5 A roadmap for high performance © Clive Butkow 2013
    6. 6. Why so many entrepreneurial businesses fail?  They do not build their business into an asset of value that one day can be sold at a premium price  Do not build the systems to required to “run” the business enabling them to focus on growth (they work in the business and not on the business)  They spend too much time on the “busyness” of business and get stuck in the rut of doing what they have always done 6 A roadmap for high performance © Clive Butkow 2013
    7. 7. Why so many entrepreneurial businesses fail?  Lack of clinical execution (not about ideas but rather execution)  Do not take advantage of the fact that success leaves clues and they try and reinvent the wheel (pattern recognition)  They do not make getting clients their number one priority  Wrong leadership team who are not coachable (people matter more than ideas) 7 A roadmap for high performance © Clive Butkow 2013
    8. 8. Why so many entrepreneurial businesses fail?  Do not recognize that revenue is vanity, profit is sanity and cash flow is reality : vitamin C deficiency  Do not have the right sales and marketing skills (no sales no clients no business)  Do not have a clearly differentiated USP  Not pliable, bendable and willing to adapt  Don’t know their target market 8 A roadmap for high performance © Clive Butkow 2013
    9. 9. Why so many entrepreneurial businesses fail?  Stuck in their box and hence cannot see behind corners and jump into trends that are obsolete or do not see the new trends coming  Do not recognize that not all ideas are money making ideas  Do not understand that focus is not deciding what to do but rather what not to do  Products do not sell themselves and there is no such thing as “if you build it, they will come” 9 A roadmap for high performance © Clive Butkow 2013
    10. 10. Why so many entrepreneurial businesses fail?  Do not focus 80% of their energy to the areas that generate the most reward – do not cut out waste (do not focus on the not to-do list)  Do not understand the importance of time management and make every minute of every hour count towards the business main outcomes  They do not make the business work for them and they work for the business 10 A roadmap for high performance © Clive Butkow 2013
    11. 11. Why so many entrepreneurial businesses fail?  Not willing to listen to feedback (fall in love with their ideas, product or service)  They do not deepen their skills and learn about new technologies and other innovation relevant to their business  Inability to balance conviction and stubbornness  Products or services are one of the least important ingredients in the business mix (E Triangle) 11 A roadmap for high performance © Clive Butkow 2013
    12. 12. Why so many entrepreneurial businesses fail?  They do not lose their business plan and hence do not build a road map to take them from where they are to where they want to go  They get to caught up working IN the business and have no time to work ON the business  They do not accept that no business is an island and they try to handle everything themselves, lawyer, accountant, sales, etc. 12 A roadmap for high performance © Clive Butkow 2013
    13. 13. Why so many entrepreneurial businesses fail?  Fail to bootstrap and quickly run out of cash  They do not understand the value of leveraging multiple channels for marketing their product  Do not have a clear and achievable vision and goals for the business  Try to be flawless : goal is not to be perfect but the pursuit of perfection 13 A roadmap for high performance © Clive Butkow 2013
    14. 14. Why so many entrepreneurial businesses fail?  The founders cannot lead people which is the hardest part of running a company  They focus on building better products (e.g. hamburger) rather than building better business systems (selling and delivering the product)  Too little focus on building management skills  Cash flow  People  Personal time 14 A roadmap for high performance © Clive Butkow 2013
    15. 15. Why so many entrepreneurial businesses fail?  The leaders will not accept feedback from peers, mentors or employees in the business  Do not recognize that the world is not short of great ideas or great products, but the world is short of great business people : Bill Gates did not build a great product (MS DOS) he bought it, but he did build a great business that helped him become one of the richest men in the world 15 A roadmap for high performance © Clive Butkow 2013
    16. 16. Why so many entrepreneurial businesses fail?  Not financially literate and do not know the difference between cash flow and profits  Do not ensure that capital is always flowing into the business through sales, direct marketing or investors  Do not know the difference between sales and marketing : sales is what you do in person and marketing is sales done via a system 16 A roadmap for high performance © Clive Butkow 2013
    17. 17. Why so many entrepreneurial businesses fail?  When it comes to legal and accounting, there are 3 basic mistakes entrepreneurs make:  They do not have or do not seek proper legal and accounting advice before setting up their business  They do not include attorneys and accountants as part of their team (this does not mean full time)  Take too much advice from attorneys and accountants on entrepreneurial/business issues 17 A roadmap for high performance © Clive Butkow 2013
    18. 18. Why so many entrepreneurial businesses fail?  They do not recognize that being able to sell is the basic number one skill required of an entrepreneur  They do not have sufficient knowledge of the 5 key components of a business:  Product  Legal  Systems  Communications  Cash flow 18 A roadmap for high performance © Clive Butkow 2013
    19. 19. Why so many entrepreneurial businesses fail?  Many entrepreneurs have a great product or service but don’t have the business skills to build a successful business around that product or service  Many new entrepreneurs start without enough real-life experience and without enough capital  “Put is down on paper” : they do not recognize that a successful business is created before there is a business 19 A roadmap for high performance © Clive Butkow 2013

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