Glory Enyinnaya

Visit www.kleosadvisory.com to download the ''Idea-to-Impact'' checklist for running an innovative business.

Achieving Product-Market Fit in your Business

To begin, product-market fit means that your product, on all fronts, meets the needs of your customers.   To achieve this, you must first identify your most important assumptions and hypotheses. Once you have done this,  you need to conduct preliminary experiments. These experiments include the following: Opening a blog to publicise your product and learn from feedback. Visiting online discussion forums such as Reddit and Quora to ask open-ended questions, and gather feedback Creating surveys using tools such as SurveyMonkey Creating a landing page and collecting pre-orders for your product Creating and running test advertisements on social media channels such as Facebook and LinkedIn As you begin to get feedback on your Minimum Viable Prototype (MVP), compare it to your initial hypotheses. If you are correct, congratulations. If there are discrepancies, then it’s time for you to change strategy or ‘pivot.’ Unlike conventional businesses, pivoting isn’t evidence of failure in entrepreneurship – it’s a sign of progress. Oftentimes, a successful startup doesn’t hit on an effective business model until after Plan A, Plan B and even Plan C fails. The important thing is to ensure that you control your financial outlay, and the time and effort required to run the business until you achieve product-market fit. You know you have achieved product-market fit when your target market has adopted your product and is willing to use it and/or pay for it consistently. ACTION STEPS Brainstorm your assumptions and convert ten of these assumptions into key product-market hypotheses to be tested Run tests to prove the validity of your hypotheses Be willing to change strategy or ‘pivot’ if feedback from users suggests another direction until you achieve product-market fit. Creating a product that your customers cannot live without doesn’t happen in a day. The process requires active listening, tweaking, re-tweaking, patience and dedication. 

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Defining Your Business Hypothesis

“No business plan survives first contact with customers” – Steve Blank, Silicon Valley entrepreneur. The lean startup movement, pioneered by Eric Reis, is an approach for dealing with the inherent uncertainty in entrepreneurship. It is particularly well-suited to early-stage startups when: The starting point of the lean startup approach is the creation of a Minimum Viable Product or MVP. The MVP allows you to go to market and test the response of the market to your product and/or service. The MVP could be a physical product, software, or service. How to Define Your Business Hypothesis The form of the hypothesis is as follows: I believe [target market] will [do this action/use this solution] for [this reason] Hypotheses are usually based on assumptions. You need to isolate the most important assumptions for your product and/or service and test them first. Based on the work of Tom Eisenmann of Harvard Business School, assumptions fall into four key categories. Each category could give rise to several business hypothesis as follows: 1. Customer Value 2. Technology and Operations 3. Sales and Marketing 4. Finance and Profit As a team, consider each assumption and rate them: Select the assumptions with the highest scores as your key assumptions and hypotheses. Once you have identified your most important assumptions and hypotheses, you need to conduct preliminary experiments.

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How to Create a Prototype

“A prototype is not an end in itself but a means to an end – the validation of your idea.” – Professor Karl T. Ulrich, Harvard Business School   Creating Physical Goods According to Professors Karl T. Ulrich and Steven D. Eppinger, in their 2015 book “Product Design and Development” there are two focused and comprehensive prototypes. A focused prototype reflects just one or a few dimensions of the performance of the product being developed. It can be referred to as a test rig or a mock-up. A comprehensive prototypes are fully functioning products, which goes through successive refinement and often goes by the term ‘’proof of concept, alpha, beta, pre-production, etc.’’ They go through cycles that help the team achieve milestones and demonstrate progress. Prototypes of physical goods are useful for the following reasons: A tool for learning Solving problems Answering the question “do you have product-market fit?” Proof that the solution works technically Proof of user acceptance and customer adoption Visual communication of your idea Demonstration of your ability to implement the solution Creating Software Practical steps for building a software prototype include: Gather user requirements: Interact with the user and discover his needs and demands Develop an initial prototype that is static and of low/medium fidelity: An example of this initial prototype could be a hand-drawn sketch or a visual tool such as Microsoft Word, Photoshop, Visio, or PowerPoint Get initial feedback: Share this prototype with users and get feedback Develop an interactive prototype of medium to high fidelity: An example of this interactive prototype could be produced from wireframing tools like Azure, Balsamiq, and OmniGraffle Get feedback and iterate: Continue to get feedback on the product and pivot or change the prototype in line with the user’s requirements Proceed to development Creating Services The approach for creating a prototype for a service business is often called the “Wizard of Oz” approach. This entails providing the front-end of the service digitally and delivering the back-end of the service manually. This is not usually very capital-intensive. There is usually no need to work with third parties to develop the full product, as the delivery of the service can be done in-house. An example could be a landing page, or a blog post describing the product. It could be used to test user responses through sign-ups, expressions of interest, etc. Action Steps Test your idea by creating a prototype in any of the following forms: Physical Goods Software Services

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How to Create a Brand Identity

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett, Investor Identify the essence of your brand and position your company appropriately in the marketplace. Karen Kang, a renowned brand strategist, in her book “Branding Pays” defined the following five-step system to reinvent your brand. Positioning Define your unique value. Positioning provides the rational foundation for branding. It makes your brand credible. It articulates your unique value and provides meaningful differentiation. Messages Develop the key messages that support your value. You may wish to revisit the elevator pitch we defined in the previous step and flesh it out into a set of talking points that help you articulate your positioning in a clear and concise way. Brand strategy Define an authentic, 360-degree brand by combining your rational and emotional value. The key elements you will need to create are your core values, strengths, brand personality, brand image, and brand promise. It helps you to deliver on your brand in thought, image, word, and deed. Ecosystem Develop a strategy for relationship building and management. In the end, it’s not what you say but what others say about you that determines your reputation. Your ecosystem acts as a marketing and sales team that can catapult your brand from unknown to desired. Action Steps Develop an action plan that includes brand improvement and brand communication so your brand can be known and recognized. Write your top three priority actions for building your brand over the next 30 days.

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How to Build Your 60-Second Elevator Pitch

An elevator pitch is an introductory summary of you and your business goals. It is one of the most effective methods to promote your personal brand and get listeners wanting to know more, be it with potential investors, employees, co-founders, etc. Build your own, outstanding pitch quickly and easily with any of the following positive ‘action’ words: Achieve Assess Broaden Capture Centralize Change Compile Complete Coordinate Create Design Develop Diversify Enforce Enhance Establish Evaluate Exceed Forecast Guide Identify Increase Initiate Inspire Investigate Launch Maintain Manage Who You Are Your success depends on the strength of your first few words, so your opening line is important. You need to engage the listeners and draw them in, by making them eager to learn more. This means providing context to make the pitch relevant to them, before talking about you. Present the problem that you and your solution solve and provide context. Here’s an example: Many entrepreneurs struggle to attract new customers, as they are so busy bringing in revenue by delivering value. Often they only grow through referrals. We specialize in creating marketing systems for successful entrepreneurs in the education industry. What You Do This speaks about your experience and builds on the initial section. You may reference recent projects you have been involved in or interesting opportunities you have had. Pay attention to the context by keeping it relevant to the listener and free from jargon. Here’s an example: We are focused on delivering marketing results for clients in the education industry. I have worked in this industry for ten years and I am very aware of the common business development challenges as well as effective solutions. Your Unique Selling Proposition You should show the unique qualities you have that can benefit the listener. The intention should be to clarify the points that differentiate you from competitors and similar companies in your industry. These differences should not be superficial but focused on delivering unique value. Here’s an example: We have developed a proprietary system for business development called the ASAP Marketing system and have used this system successfully with several clients in West Africa. We serve six of the top 10 schools in the Lagos district and have helped them achieve 20% increase in new business sales revenue over the last three years. Your Goals This section should also include ‘’What’s in it for them?’’ Be clear about what you want and align it to what the listener is looking for. Find out exactly what the listener wants so that your pitch can show how you can fulfill their needs. Use gentle, effective persuasion to avoid causing offense. Here’s an example: We would be interested in speaking to you to see if there is an opportunity for us to help you win more customers. Action Steps Write the first part of your elevator pitch by answering the question ‘’Who am I?’’ Write the second part of your elevator pitch by answering the question ‘’What do I do?’’ Write the third part of your elevator pitch by answering the question ‘’Why am I unique? What are my unique selling points?’’ Write the final part of your elevator pitch by answering the question ‘’What are your goals?’’ For more posts from this author, visit: www.gloryenyinnaya.com ‘’Your audience is waiting for your stories.’’ – Steve Woodruff, Author of Clarity Wins.

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Tips and Tricks of Choosing a Business Name

Your Business name will be associated with you for a long time. So, it’s critical to think about it thoroughly before forming a company, developing a website, or making signage and other promotional items. To help you started, here are a few pointers. How important is a name? Apple. Google. Yahoo. History is replete with examples of industry giants who had names that were at best, nondescript, and at worst, irrelevant. So, should you invest time and energy in choosing a ‘good’ name for your company?  And how do you go about achieving this? Choosing a Name The following criteria should be taken into consideration in choosing a good business name: It should be available as a domain name It should evoke the thing it names It should be easy to pronounce It should be inoffensive globally (or at least in your target markets) It should have positive associations It should be easy to say It should have unambiguous spelling It should be memorable It should not be too long You can also create polls, surveys and leverage communities on social media (e.g. Facebook, Instagram and LinkedIn) to get input from the larger world and your target customers when choosing a company name. Registering a Domain Name When choosing a domain name, you are advised to have full dot-com availability. If you can help it, you should ideally endeavor to stay away from the following: Hyphens Special characters Dot-net Dot-org Other top-level domains Country domains Changing Your Name Ideally, the name you choose should reflect: Who you are What you do How you do it It’s not the end of the world if you decide after a year or so that your business name is not quite right. However, you would have largely wasted any earlier marketing effort in building up awareness. Action Steps Brainstorm 5 potential names for your business Use social media to determine the most popular version Check hosting websites such as Godaddy and Bluehost to confirm the availability of your chosen name   Read Also: Converting your Business Name to a Limited Liability Company For more posts from this author, visit: www.gloryenyinnaya.com    

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How to Develop a Financial Plan

A critical component of your business plan is a strategy for managing your company’s operations. A comprehensive financial plan needs to answer the following questions: Strategy Describe how you will fund and grow your company Financial projections Income for 3-5 years Balance sheet Cash flow Breakeven analysis Sensitivity analysis Assumptions – revenue forecast, cost of revenue, margins, expenses Funding Equity Debt Non-traditional – customers, suppliers, partners Risks Describe the risks associated with the implementation of your plans. Market – size, sales cycles, price consumer will pay Competitor’s pricing – predatory pricing Strategic – volatile industry, establishing agreements Operational – managing components, costs, quality Technology – will it work, scalability, time to develop Financial – exchange rates, interest rates Macroeconomic – state of the economy, regulatory laws, government approvals In summary, a financial plan should describe the process for capturing the value from the delivery of your product/service and is a critical element of your business planning exercise. For more posts from this author, visit: www.gloryenyinnaya.com

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How to Develop an Operations Plan

A critical component of your business plan is a strategy for managing your company’s operations. A comprehensive operations plan needs to answer the following questions: Operations strategy How will operations add value? What will you emphasize – cost, quality, timeliness, flexibility? Does your process give you a competitive advantage? Scope of Operations In-house or outsource? Product and process design? Order fulfillment? Customer service/technology support? Installation? Describe how you will get off the ground running as a business Product/process development Intellectual property Rollout strategies – regions, products, channels Marketing strategy – advertising launch, activations, online Agreements with key customers/partners Strategic alliances Facilities and equipment installations Market tests or beta tests Key hires Describe the initial management team for the business Background and experience for each management team – a strong start off management is vital for investors Any holes in the management team? If so how do you plan to address it? Board of Directors or Advisory Board? Organizational chart Ownership structure Corporate Social Responsibility/Impact Investing In summary, an operations plan should describe the process for producing and delivering your product/service and is a critical element of your business planning exercise. Read Also: Key Components of a Business Plan I

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How to Write a Winning Executive Summary

There is no set structure for an executive summary, but there are guidelines you must follow to ensure your business plan or investment proposal gets the attention it deserves. A well-written executive summary needs to contain the following elements, among others: Vision – What problems are you trying to solve? What are your guiding principles? Mission statement – What’s the purpose of your venture? Business model – What’s the rationale of how you create, deliver, and capture value? How will you create value? Who will you create it for? B2B, B2C? How will you generate revenue? How capital intensive is your venture? Describe your product or service – Does it meet customers’ needs? What are its key attributes? Products – function, durability, installation, ease of use, packaging Service – function, environment, reliability, responsiveness, availability, usability Retail – product offerings, ambiance, decor, layout, location What are the benefits of the product? Quality – durability, reliability Good service – on-time delivery, maintenance, tech support Efficiency – ease of use, greater output, less waste Convenience – flexibility Cost savings When you’re trying to sell an idea to a potential investor, you’ll need to craft the pitch-perfect executive summary. The tips above will show you how to write one that will get your business plan read and get your foot in the door.

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Developing a Marketing Plan

A marketing plan helps you identify your target customer and the channels you will employ to reach them, persuade them to purchase your product and deliver your value proposition. Some of the elements of a marketing plan are: Market Analysis How large is the market? What are the historic or future growth rates? What are the market trends and how is the market changing? Addressable market Segmentation Entry point Industry Analysis How is the industry organized? Competitive environment Barriers to entry Competitors Opportunity What is your entry point and why? Is a real problem being solved? Compelling need Can you successfully compete in the industry? Marketing Plan Market research Target Customer strategy – profile/buying decision Channel Positioning Branding Pricing Communication Sales Revenue model In summary, a marketing plan is a strategic document where you make the business opportunity case for your product or services. Read Also: Ten Marketing Tips for Startups

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