New & Aspiring Business Lunch & Learn Workshop Series

Your New Business... from the Ground UpBusiness

management methods

to become a

highly effective

entrepreneur

and

help your business thrive.

Monday, November 22nd

12:00 – 1:30pmClear Lake City Building

Business Management MethodsErnesto Sirolli, business coaching Demonstrated success in small rural areasBoils down to one concept: Trinity of

Management

Trinity of ManagementTHE “WHAT”3 basic things that any business must have in place in

order to be successful:Product: technical skills necessary to produce the good

or services one wishes to sellMarketing: ability to sell & a market for goods or

servicesFinance: the ability to financially manage one’s affairs

THE “WHY”Businesses need to be solid in all 3 areas in order to

succeed.

Trinity of ManagementWHAT DOES THIS MEAN?Don’t find people that are effective and passionate at all

31 job becomes 3 jobs & must be taken on. (‘Product’

person most common + possibly 1 of other 2 areas – ‘finance’ or ‘marketing’)

Teams are essential! Allows you to focus on what you do best, and limit wasted time and energy in weak areas

People try to do everything, many do it badlySuccessful businesses are always a team effort. A good

team can succeed in nearly everything, and can turn around financially troubled companies

Trinity of ManagementYou do not have to be great at all 3 things, but all 3

must happen in order for your business to be successful.

What do you do best? What do you love to do?Where does your passion lie?What makes your eyes glaze over?Who else would love this project?We can help you build a team, passion and

strength in all 3 areas of your business.2 people can cover 3 functions, but all 3 must be

covered.

Trinity of ManagementExamples of Team Building – you don’t have to do it all

yourself!Sirolli Video: Greg (5:30)(Greg was great at building cabinets, selling, and marketing his

products, but hated and was terrible with finances.) RUPRI Video: Rory (10:40)(Rory was a great mechanic and had lots of business, but

couldn’t manage to pay his bills – not because he didn’t have enough revenue, but because he wasn’t able to organize this area of his business. Listen to how they built a team and helped him improve the finances for his business.)

Other Examples: Steve Jobs & Steve Wozniak, Walt and Roy Disney Bill Gates and Paul Allen or Steve Ballmer

TRINITY OF MANAGEMENTTHE “HOW”How to fill the Trinity (with limited resources):Beg (ask a friendly accountant or marketing

person to help for free, at least for a few months)Promise something you don’t have (“success

fee” or share in future profits)Give shares in your worthless company (form

a company, allocate shares to those who come on board)

**Find volunteer help (convince a volunteer to help you – friends, family, etc)

Total Quality of CompanyGraph how good your business is in the

following areas:ProductionMarketingFinance

What are your strong and weak areas?Who is doing each?What do you have to do to lift the weak area

to the level of others?How and who will address the weak areas?

Graph: Quality of Company

Product Marketing Finance0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

90% 80%

30%

Graph the quality of your company. 100% is the goal for each area. What areas need to be strengthened? Which areas need to be lifted to the level of the

others?

SWOT AnalysisAssess your SWOTs in areas of

ProductionMarketing Finance

SWOT AnalysisKEYS TO BUSINESS SUCCESS

You have just been presented some information on Keys to Business Success related to what Ernesto Sirolli calls the “trinity” or what we call Sirolli’s Law. Bottom line, to be really successful as an entrepreneur in business you must do production, marketing and finances very well. There is general agreement that Ernesto is right and that while we must be really good in all three areas, it is unrealistic to expect us to have motivation and strong skills in all three areas. The following exercise gives you a chance to evaluate your strengths and weaknesses in these three keys to business success.

Production To succeed in business you must be able to produce a good or service that consumers want.

Marketing Identifying and developing customers – marketing – is central to business success.

Provide a few reasons why you feel you are strong or weak in this area:

On a scale of 1 to 5 rank your strength or weakness in marketing.

1 2 3 4 5 1 2 3 4 5 Strength Weakness Strength Weakness Provide a few reasons why you feel you are strong or weak in this area:

Provide a few reasons why you feel you are strong or weak in this area:

Finances Effective financial management is fundamental to business success.

Team Building

Provide a few reasons why you feel you are strong or weak in this area:

It is hard, maybe impossible for any one person to have adequate interest and skills in all three areas. So team building is important. Who might you include on your team to address weakness areas?

1 2 3 4 5 Strength Weakness Provide a few reasons why you feel you are strong or weak in this area:

Assess your Strengths and Weaknesses in the areas of:

•Production•Marketing•Finance

SWOT AnalysisSWOT QUESTIONS TO CONSIDER

Marketing

What is the quality of your marketing plan? What are your goals, and how do you identify to accomplish them within this area? What is your competitive advantage and how are you employing it? What is your value statement? Do you have a deep understanding of your markets? Do sell leading with the features of the product/service: “I think this is the greatest product, so

should you.” Select offerings based on whether you would be willing to buy the product/service Do you sell leading with the value of a product: “Given what you, the customer, need or want,

my offering should be of unique value to you.” (more strategic, higher level)

Finances

What financial management tools are you using? Is your financial management primarily “Rear View Mirror” financial management (hire

accountant only for government tracking requirements, etc) Do you utilize proactive financial management, use financial management tools to look to and

plan for the future and glance in the “rear view mirror”, rather than constantly looking in the “rear view mirror.” (more strategic, higher level)

Do you use multiple financial tools to gauge your business (income statements, revenue and expense statements)?

Do you use multiple financial tools/gauges together and understand relationships between financial management tools, profits and losses?

Do you measure performance of marketing and operations in terms of profitability of results? Do you conceive of and take action on market opportunities?

Production

Do you work in a time frame of 3 – 90 days, or plan further into the future, 1-2 year timeframe? Produce annual budgets based on realistic operating statements Do you utilize lean manufacturing principles (remove inefficiencies, reduce inventory, increase

productivity) Do you use relatively non-inventive solutions to problems, or do you conceive of and implement

innovations to problems?

Here are some questions to help you evaluate the quality of : Production, Marketing, and Finance in your company.

DiscussionWhat areas are you strong in? What areas are you weak in?What do you have to do to lift the weak area to

the level of others?What areas could you use help with? Who might also enjoy the project you are

working on?Who might be the right people?Who and how will you address the weak areas?How can you help your customers build a team?