Let’s Talk About The Rocket Fuel For Great Business Ideas

executive leadership blog

I was recently having breakfast with a close friend and business associate and he said something to me that was the basis for this blog. We are working together to get a second investment fund up and running and the opportunities that we have for investment and significantly positive returns are unlimited. However, as my friend said at breakfast, those opportunities await the team or business that simply has the capital to deploy to close on them and unless we can really move the needle on raising funding and converting prospects to investors, we will not be the team that succeeds in this venture. That same thing said in simpler terms is that a prospect is just a prospect until you close and have them become a buyer. Therefore, the rocket fuel for any great business idea is selling, closing and having the invested capital to deploy to turn your great ideas into reality. It simply will not happen without closing and raising the capital necessary!

We went on to discuss the amount of time spent and the data that we have collected on various leads and prospects. We feel many of those prospects will invest and in fact some already have done so. However, what we really lacked was really systemic clarity on the amount of time they have been a prospect, the source of their funds to invest and their timeline for decision making with good follow up processes. We are working on several fronts now to create more regular visibility to the status and aging of our prospects. That will be the baseline for us knowing week to week if we have enough prospects flowing in to our plan and the close rate over time that is the best indicator of the work to be done to achieve our objectives.

As we work this on a weekly basis, there are three things that will be critical data for us to discuss and review. First, we need to know that our prospects have the money available to invest. If the money is not really there and available for this investment, that is the first and biggest disqualifier. Second, we need to know the prospect and be close enough to the status on a regular basis to understand if this investor has the approval of others close to him/her to make this investment decision. The others that could stand in the way of a decision could be a financial planner, a spouse, a close relative or a co-worker. We need to understand their commitment versus others with whom they interface daily. Last, we need to create a desire for them to invest. What are their needs? How will this investment help fill their needs. So, the obtainment of the rocket fuel is simple but complex and it must be looked at regularly on all these fronts in order to obtain and fuel you great business ideas.

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Is Your Business Leaving A Big Financial Upside On The Table?

executive leadership

I know you have all heard the reference phrase at some point in your life, “how much money did you leave on the table?” It might have been a reference to what you paid versus the asking price or it could have been a reference to what you sold for versus the price you could have received. I know that whenever this phrase has been spoken to my benefit or I was not the one leaving money on the table, I always felt much better about that outcome. I do not think that anybody wants to feel that they have achieved less than a good outcome either personally or in their business when it comes to a financial result but it is always amazing to me how many businesses do leave a real financial upside on the table.

The upside I am talking about leaving on the table that is familiar to most businesses is the upside of price. It is amazing to me that not only do businesses spend so little time thinking about price but many businesses spend even less time measuring price. Price is one of those few actions that can be taken in a business that when implemented and achieved will drop through straight to the bottom line of the business. I talk with many CEO’s who are desperately looking for ways to improve their bottom line performance. When I get to conversations about price, it is astounding the blank stares I get as I ask a series of questions. Those questions often include things such as when was the your last price action to your market, how much of your increase was realized, how much of the price increase was actually collected, and what did your competition do before or after your action on price? So, little is known by most of them about a subject that has so much power to change their profitability.

It has often been said that one percent price increase is more valuable to a business than five percent improvement in productivity! If all this is true, then why is so little accomplished in planning and implementing price increases in the day to day business thinking. I will talk about this and more in the upcoming blogs; but for now please begin to think about the past actions and future potential of more strategic pricing actions in your business.

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Having Great Integrity Does Not Mean Always Being Right

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I believe I have found a subject that many are anxious to discuss more as with all the feedback I have decided on a third article dealing with leadership integrity. In my previous two blogs I focused on integrity as the cornerstone of a transformational leader and that real committed leaders don’t compromise integrity just because things do not go their way or tough times confront them. With this blog I want to change gears and talk about the fact that strong integrity DOES NOT mean that you have to be right all the time. In fact trying to be right all the time will make you a very ineffective leader as others will be fearful of speaking up and making you feel wrong. That is a blog for a later date so let me further discuss not always being right.

As leaders we have been taught to have great confidence in what we do and say and quite often to be convinced that we are correct even if there maybe some doubt about the complete correctness of our opinion. I have seen and I suspect that many of you have also seen that leader who literally fears being wrong as he/she thinks it goes with the job to always be right. It is my opinion that if you lead with the belief that you will never be wrong then it is possible that your integrity can be as compromised as if you had failed to be completely open and honest in your communications. For you see the leader who has to always be right is the leader who has failed to realize that it takes much more than a title and facts to gain respect, and even outstanding integrity will not resolve that flaw.

As much as people want to work in a high integrity environment where they trust the direction, the communication and the leaders, they want just as much to be able to have an opinion and to know that everyone is capable of being wrong and learning from it. People don’t care how much you know or how right you are. People care about the integrity of their work environment and how much you care about them being a part of the team. So, you should worry about never compromising your integrity but you should spend little time worrying about always being right!

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Randy’s Blog

Good Leaders Do Not Manage Change……They Lead Change!

As I mentioned in my last blog, I have had several interesting consulting engagements recently and they have provided me some great experiences to … [Read More...]

Motivational Leadership Speaking Motivational Leadership SpeakingRandy continues to be an exciting motivational leadership speaker, which has been his passion for over 25 years. He honed his skill as a motivational speaker and business coach working at GE under the tutelage of Jack Welch. From line supervisor to President & CEO, Randy has successfully lead individuals through his specific motivational methods that produce tangible results. Randy is personable, authentic, and driven. He has a speaking ability that motivates and energizes individuals to achieve beyond their potential.
Executive Leadership Mentoring Executive Mentoring & Leadership ConsultingRandy Dobbs is a proven CEO with strong operational/execution skills who has demonstrated success in fix-it situations. Randy has been a mentor for over 30 years helping individuals, senior leaders, to CEO’s at GE, Phillips Medical, USIS and wcasportfolio companies. Randy was trained in mentoring while at GE and subsequently pushed to train all the top leaders in Philips and USIS while implementing mentor programs at both organizations.Randy mentors/coaches CEO’s and some of their direct reports today in his current role.
Buy Randy’s book “Transformational Leadership” Transformational Leadership

Sharing personal experience and practical business blueprints, Dobbs takes the reader on a journey through the transformational process. Leaders working in organizations of various sizes--and facing diverse challenges and opportunities--will find Dobbs' ideas transformative, personally as well as professionally. This is a book for persons who want to be change agents within their respective organizations. It is for all who want to make a difference for themselves and their coworkers.