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1. Pre-Incorporation Agreement
Limit the primary participants to people who can consciously agree upon and
contribute directly to that which the enterprise is to accomplish, for whom,
and by when. Only consider investors that bring more than money to the
table: e.g. connections,
marketing
skills,
technical expertise, etc.
2. The Customer is King
Define the business of the enterprise in terms of what is to be bought,
precisely by whom, and why. Avoid disaster by
testing the market prior to
development of a product.
3. Use a Rifle Not a Shotgun
Concentrate all available resources on accomplishing two or three specific,
operational objectives within a given time period.
4. Failing to Plan is Planning to Fail
Prepare and work from a written plan that delineates who in the total
organization is to do what, by when. Use your
business plan as a budget. If you cannot stick to that budget, your
business plan is too ambitious.
5. Pick the Winners and Pay a Premium
Employ key people with proven records of success at doing what needs to be
done, in a manner consistent with the value system of the enterprise. When
in doubt, hire your biggest or best competitor's key people. Free agency
works in business too.
6. Reward the Superstars
Reward individual performance that exceeds agreed upon standards. Move the
non-producers into administrative positions, or replace them.
7. Is Bigger Really Better?
Expand methodically from a profitable base toward a
balanced business.
A
smaller, more focused business can sometimes be far more profitable and
stable than a large and fractured one.
8. Cash Flow is King, and the Secret of a Good
Night's Sleep!
Project, monitor, and conserve cash, and protect credit capability.
Over-expansion, failure to
see coming trends or
competition, and poor credit policies are your biggest enemies.
9. Nothing Personal, But You're Fired
Maintain a detached point of view. Never hire family or friends, unless you
are also willing to fire them. Be decisive and do what is best for the
business. This could include firing yourself and hiring a more qualified
manager!
10. The Only
Universal Constant: "Everything Always Changes"
Anticipate constant change
by periodically testing adopted
business plans for their consistency with the
realities of the world marketplace. Read Kenichi Ohmae's books, "The End of
the Nation State", "The Borderless World", and "the Mind of the Strategist".
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