May 24, 2023
Business Rules
- BRT S04 EP21 (183) 5-21-2023
What We Learned This Week
- We are the Average of the 5 People we Spend the most Time with.
- 80/20 Principle – know what levers to pull
- What Business Are You In? – Business need to Understand what their real Objectives are, How they Serve their Customers, What Problem they Solve
- Disruption - History never repeats itself, but it often rhymes
- A good plan violently executed now is better than a perfect plan executed next week
- Marketing needs Clear Messaging
- Information + Contacts = Means Everything in Business to get the Deal
Just like there are Laws in Physics, there are Rules in Business.
Violate them at your peril….
Rule #1: You Are Who You Associate With
Jim Rohn famously said that we are the average of the five people we spend the most time with.
Care full who you let into your inner circle. Take advice from those who have accomplished what you seek.
Rule #2: 80/20 Principle
Focus – what are your priorities?
Leverage
Dominos – there are usually just a few key moves to create success
Learn to Say ‘No’, choose wisely what you spend time on
Rule #3: What Business Are You In?
https://www.linkedin.com/pulse/what-business-you-matthew-battaglia/
‘What Business Are You In?’ This the famous question from the classic business consultant, Peter Drucker. This was one of Drucker’s key questions for management to figure out, the who, what, where, why and how of their business.
The point of the question was to really challenge business owners to understand what their real objectives are.
Don’t assume you know what business you’re in. Drucker loved to ask executives “What business are you in?” because they often missed the mark, defining their organization in terms that were too narrow or not properly attuned to customers’ needs.
https://www.youtube.com/watch?v=uxCL2RqCuiY
The Founder Real Estate Business Scene
"You don't seem to realize what business you're in," Harry Sonneborn says to Ray Croc. "You're not in the burger business. You're in the real estate business." Kroc can't build an empire off a 1.4 percent cut of a 15-cent hamburger. Own the land that the burger is cooked on. "Land. That's where the money is."
Marketing Myopia – thinking short term, and putting the business needs before the customers
Rule #4: Disruption - History never repeats itself, but it often rhymes
Business have Market Cycles, when they are on top one day, and displaced by new industries the next. You have to see around the corner and anticipate if the train is coming.
Innovator’s Dilemma – afraid to shelf old tech because it is your core business right now, for new tech which is the long term future
Black Swan Events are rare events that upend everything
When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.
Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.
Quotes by Warren Buffett
Rule #5: Strategy Needs Execution
Without strategy, execution is aimless. Without execution, strategy is useless. - Morris Chang.
Strategy plus blocking and tackling
A good plan violently executed now is better than a perfect plan executed next week. – George Patton
"The essence of strategy is choosing what not to do." — Michael E. Porter, American economist and founder of strategic management
Rule # 6: Cash is King
This phrase is used to analyze the financial health of a business. Does it have Cash Flow and growing profits to handle any downturns.
Startups often need a lot of cash as they are not profitable yet. Burn Rate is the term for when a startup is blowing thru cash and could go out of business.
Business’ need access to capital and credit lines, to handle situations or when opportunities for investment come along.
https://en.wikipedia.org/wiki/Cash_is_king
Rule # 7: Everything in Life is Sales
Sales and Marketing
How you represent your business, how the receptionist answers the phone, what the lobby looks like, the layout of marketing material or affect how people view your business.
Entrepreneur needs to be the best salesman in his company, who tells the story
Marketing needs clear messaging as confusion is the enemy of sales
Bonus Rule – Follow the $
People vote with their wallets, what are they spending money on, what are people investing in, follow the actions, not the words
To Get the Deal, You have to Know the People in the Deal.
Information + Contacts = Everything in Business
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Business Roundtable with Matt Battaglia
The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving.
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