As I mentioned in a post yesterday morning, we had Eric Flamholtz, author of Growing Pains, on campus for a lecture. His book is at the top of my “must read” list for all entrepreneurs.
Here are some highlights from his lecture here at Belmont:
– “What you can’t measure, you can’t manage.”
Developing systems that allow you to collect and track key data that helps you see where your business has been and where it is going is critical to the success of a growing business.
– Set a specific quantitative goal for your business and develop a plan to get there.
Having a clear goal will allow you to understand the infrastructure you will need to develop to reach your goal. It will help you develop specific plans that map the developmental steps your business will need to take as it grows.
– Niches are not always small — they are defensible positions within a market.
Entrepreneurs often equate a market niche with a small business. Actually, many large companies have well developed and well defended large market niches.
– A mission should have a qualitative and a quantitative component.
Flamholtz offered the example of Starbucks’ mission statement from 1994:
To establish Starbucks as the leading retailer and brand of coffee in North America by the year 2000, by creating distinctive daily coffee experiences for our customers wherever they live, work or play.
2 Billion + 2000 Stores = 2000
– Companies compete not just with products and within markets, but through their operating systems, management systems, and culture.
Wal-Mart offers the same basic products in the same markets as K-Mart. Any questions?
– “You make your own luck by being prepared.”
