Mediaboss Marketing

Being an entrepreneur reminds me almost on a daily basis of my times during Navy SEAL training and combat. Success in combat, as in business, requires constant adaptation in order to remain efficient and competitive. Over 14 years of fighting, the SEAL teams have adapted tactics many times in order to maintain our critical elements of combat superiority. Entrepreneurship and growing a business requires the same attention to change.

Entrepreneurship demands a myriad of varying skillsets. And as the business grows one quickly transitions from an individual with a great idea to a manager, strategist, team builder, and key leader aligning that team to execute the vision of the company. None of these are easy tasks by any means, especially as the company and its industry experiences change.

Here are seven core principles I believe to be imperative for any business owner or leader experiencing change.

Understand industry volatility. Know how and where to steer the ship as the tides change. My business partner and I started our first company in 2005, just a few years before a recession. That business was specific to the real estate industry. When the housing market crashed, that business started to shrink rapidly. As entrepreneurs, we had to make some big decisions very quickly. We ended up recapitalizing that company, and using some of its resources to start our marketing agency which services all kinds of industries. Had we not kept a very close eye on these economic cycles and read the writing on the wall, we would be in a very different situation. Use the data on hand to foresee what lays ahead as best you can.

Have a solid foundation. Agility requires strength and a solid framework from which to maneuver. Think of your business as a well-trained athlete. Agility is crucial but does not come without significant preparation and the right systems in place. Being agile without the right foundational elements can cause the business to crumble. Make sure you have the right resources before making drastic moves.

Intimately know your financial situation. I have been on some pretty disastrous missions that were a direct result of bad intel. Accurate financial data and projections are critical for responsible decision making. I have made this mistake in the past by not having a proper finance and accounting team in place. It goes without saying that without accurate cost accounting, resource planning, and financial analysis you are literally flying blind. But with the right team and great data, you can transition from making reactive decisions, to making proactive decisions. And remain calm doing so. Dont wait to invest in the right team and tools.

Create a culture accepting of change. And have managers that understand the art of change management. Change can be scary for the team, but it doesnt have to carry a negative connotation. Its really all about how the leadership team communicates the positive reasoning behind the change. As our company has grown, we have gone through many layers of inevitable change. Its a good problem to have. A young business will grow utilizing a certain set of systems and processes, but those will eventually have to be upgraded to remain scalable, efficient, and profitable. This phenomenon is explained in great detail in Marshall Goldsmiths book What Got You Here Wont Get You There. The team has to understand that change is good and necessary for the business to grow.

Know your enemy. This one seems obvious.One of the key responsibilities that entrepreneurs and business owners have is to know what the competition is up to. What are their strengths and weaknesses? If they beat you out on landing a new customer, why? Take time to understand how your larger competitors got to where they are, what worked, what didnt, and use the information to avoid possible pitfalls. A great way to do this is to hire team members that have worked for competitors or similar companies. They will bring with them a wealth of knowledge.

Read this article:
The Principles of Entrepreneurial Adaptation