In the last article we talked about the first phase of how to be an entrepreneur.
Once you’ve established that base it’s both excited and can be overwhelming with where to focus. Going from nothing to actually having sales is a gratifying experience. The problems become better quality but there are still problems…Look at them as opportunities.
If you’re under $100k in revenue it’s hard to have a team and there’s a lot to do. Somewhere in this range you’re going to have to start hiring your team if you haven’t already.
In this phase you have to move into being the leader and that’s easier said than done. I lot of people “want” to be leaders and think they have what it takes but the first key to real leadership is understanding why you need to put others needs as a priority.
Management does not necessarily equal leadership.
In this phase of becoming a leader there’s a variety of areas to grow, most entrepreneurs have a hard time stopping doing the things that they mastered in the first phase and giving up control to be able to focus on what they need to do.
I do business coaching and was working a gym owner who started it by themself training but as they grew they were still training years later even though it was getting in the way of what they needed to focus on. 20+ hours per week. May sound obvious from your standpoint but what are you doing in your business that you shouldn’t be?
If you want to even think about going to $1 million or more in revenue you no longer will have the focus to be the person doing the work.
Here’s the list of things that can’t take up your time to become a successful entrepreneur:
- Product or service fulfillment
- Customer service
- Delivery of goods
I usually see 2 sides of the coin: either they focus on sales and marketing or they focus on doing the work/creating the products.
Don’t get me wrong those are both the life blood of the company but if you want to think about getting above a few hundred thousand in annual revenue or making a million dollar business you must build a team and unload.
Here’s what you have to focus on to own it like a CEO style leader:
- Cultivating your brand by developing marketing personas
- Creating duplicatable processes that anyone can step into
- Find and hiring the right team
- Creating culture that people love to be a part of
- Learning your financials and regularly monitoring your cash flow
- Becoming a compassionate coach/leader
- Measuring and managing the resources in place handling the business operations
Financials and managing resources are usually the ones that most people avoid and the reason they don’t become the successful entrepreneur that they’re capable of.
I get it…financials are confusing and intimidating. Until you learn.
99% of business owners hand off their financials to an accountant or bookkeeper right away and then have no idea of what their profit margin, cost of goods, percentage of overhead and instead are just trying to sell more.
The answer is not just grow sales. I know I used to have that mentality until I reached $100k per month in revenue and wasn’t really making any money. That’s when I decided to learn and it was surprisingly not that hard even at that volume. I went from next to no profit to being highly profitable in a few months with the right focus.
If there’s one message you can take away from this article it’s:
- Build your team so you can focus on learning the things you need to learn
This article has been about the transition of “becoming an entrepreneur” to “CEO style leader”.
Next I’ll write about how to go pro tie it into your lifestyle, have better relationships and balance a life and your business.