Gallery Mint Museum

Part Ii: Summary And Review of The Art of The Start: The Time-Tested, Battle-Hardened Guide For Anyone Starting Anything by Guy Kawasaki

Continued from Part II: Summary and Review of The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything by Guy Kawasaki

The Art of Partnering

Partnerships should speed up cash flow while increasing revenue and reducing costs. Partnerships built on solid business principles have a much better chance of success. On top of that, the key to a partnership is having everyone on board believe in what they are doing.

-Partner for “spreadsheet” reasons – partnerships should be entered into for reasons that will affect financial spreadsheets. Too many companies form alliances because the press and critics seem to think the company is missing a link in the chain to success. “Never form a partnership to make the press happy.”

-Define deliverables and objectives – a list of what deliverables and objectives are to be fulfilled needs to be defined: what will each organization deliver, when will they deliver it, and where will they deliver it?

-Ensure that the middles and bottoms like the deal – before organizing upper management’s appearance at the press conferences to announce the partnership, make sure those who do the actual work are on board. This will be when there is a true win-win deal. So, don’t announce the partnership until after it is affectively working, because the best partnerships are when management is barely involved.

-Find internal champions – empower one person, or a small group, in each organization that will live or die by this partnership. They are the interfaces between the two companies, and with the added accountability, they will ensure the success of the partnership. It creates one line of communication between the two companies. I don’t need to explain how big of a mess it can be with a matrix of employees communicating across different departments in different companies.

-Accentuate strengths; don’t cover weaknesses – just as with pleasing the media, forming a partnership to try to cover up the other company’s weakness is the wrong reasoning. Instead, each company should identify the other’s strengths and determine how each can make the other better.

-Cut win-win deals – many partnerships are formed because a bigger company can muscle a smaller one into it creating a win-loss. As stated above, a successful partnership starts at the bottom and the bottom won’t cooperate if it isn’t a win-win. Win-loss partnerships don’t last, so even if you are the winner, is it really worth it?

-Follow with the file – many think they can send over a document requesting a partnership and this will get things rolling on our terms. Then the other company turns the file over to a lawyer and a ton of red flags come up. This is not a good start. Instead, a face to face meeting should be held first followed by a series of written negotiations and the deal should be finished off with the filed document.

-Wait to legislate – as hinted at above, involving a lawyer too early in the process can destroy a deal. Agree on business terms first then bring in a cooperative lawyer who wants to make a deal, not prevent one.

-Put an “out” clause in the deal – although good partnerships involve serious commitment from both sides, a contract making it easy to terminate the deal can sometimes motivate partners. This promotes longevity, puts everyone at ease, and ensures both parties that no one is trapped if things get hairy. Everyone can chill out and work harder knowing that in a worst case scenario we go our separate ways.

The Art of Branding

Some people believe branding is nonsense that only marketers practice. Guy says applying the 4 P’s of marketing (product, place, price, and promotion) to your strategy gives the customers something to remember.

-Create a contagion – branding starts with the product, and your product needs to be golden. Successful branding is easy when the product is irresistible, so you want to find or create contagious products.

-Lower the barriers to adoption – barriers to adoption are anything that would make a potential customer shy away from your product. You should make your product easy to use and provide detailed instructions. High prices obviously make it more difficult to build a brand, along with the cost of converting from the customer’s old product.

-Recruit evangelists – evangelists are your most loyal customers who believe in your product as much as you and are on board to spread the word. Positive word of mouth advertising can be as powerful as any other marketing method. All it takes is asking them to help you by sharing their experience with others.

-Foster a community – after recruiting enough evangelists, they will form a community around your product. These are groups of customers that actually get together because of your product and can provide customer service and support. The also form a social relationship that will make owning the product a better experience.

-Focus on publicity – advertising may maintain and expand brands, but publicity establishes them. Having an article written about you creates much more buzz than a paid advertisement in the back of the paper. And just like evangelists, it’s free!

The Art of Rainmaking

Just like the Native American who chanted to make it rain, your organization needs a rainmaker who can generate a lot of business. The rainmaker gets your product out to the mass market, which will be apprehensive to hop aboard. So the second objective for the rainmaker is to find ways to break down that barrier of customer resistance.

-Let one hundred flowers blossom – plant many seeds, observe which take root and blossom, then nurture those flowers. Quite simply, when your product is out there and it gets used in any way at all, capitalize on it and take the money. Do not try to interrupt what is happening because you feel your product is being misused.

-Pick the right sales lead method – start up products are not bought, they are sold. In order to sell, entrepreneurs must establish credibility and have personal contact with potential customers. The number one sales lead for a start up is not advertising, rather conducting small seminars.

-Find the key influencer – intelligence is concentrated in the middle and bottom of your organization, not at the top. So ignore titles and truly find the key influencers.

-Suck down – you tend to suck up to the executive that you are trying to sell your idea to, but who controls their time? The assistant, so to ensure you get penciled in the schedule most often, suck down to and really get to know the assistant.

-Make prospects talk – just because you are selling doesn’t mean they are buying. So if and when a prospective buyer gives ways that you could have or can sell to him, you better listen and capitalize on the information.

-Enable test drives – a huge barrier to potential customers converting to your product is the simple fact that they are stuck in their ways. So instead of spending money to advertise how your product is better, offer a trial period and this test drive will prove to the customer why you are superior.

-Provide a safe, easy first step – don’t ask your potential customers to take a leap of faith leaving behind everything they know. Provide a smooth buffer process for them to adopt your product.

-Learn from rejection – good rainmakers will get rejected often, and it’s because they are constantly pitching. Simply learn the lessons on how to improve and which prospects to avoid.

-Manage the rainmaking process – key word is process, an ongoing one in fact. This is not a one time event; it lasts the lifetime of the organization. Never stop dancing for the rain to come.

The Art of Being a Mensch

Mensch is a Yiddish term for a person who is ethical, decent, and admirable. Remember why we are building this company: to make the world a better place. There is no better way to define someone who wants to better the world than a mensch.

-Help many people – it’s easy to help those whom you think can help you one day. A true mensch helps people regardless because they truly get joy from helping a fellow man.

-Do what’s right – take the high, and difficult road, and do what is right. If it is a question of helping yourself or helping others, the mensch helps others.

-Pay back society – rather than reaping excessive financial rewards, a mensch would give back for the betterment of society at large. Giving forward is in expectation of a return while giving back is for a goodness already received.

The Video Lounge

About the author & the book

http://www.youtube.com/watch?v=L3xaeVXTSBg

This is a video of Guy Kawasaki discussing this book, specifically explaining why every start-up venture should be motivated by making a meaning that will change the world.

About entrepreneurship

http://www.youtube.com/watch?v=vgOpLzQ0QlE

This is Andrew Zacharakis, professor of Entrepreneurship at Babson College, answering seven essential questions that define the backbone of entrepreneurship.

Personal Insights

Why I think:

The author is one of the most brilliant people around, because:

He has a proven track record of making companies succeed. He was one of the main catalysts that put the Macintosh where it is today. Everything he writes about, he has experienced, and he shares that entrepreneurial knowledge in this book. He provides the motivation that will help someone take the next step when they are on the cusp of something great.

With business conditions today, what the author wrote is true because:

It’s no secret that today’s economy is at historical lows. We constantly hear about the need for small businesses and entrepreneurs to revive the economy and help it strive as it once did. What Guy provides with The Art of the Start is the answer to that calling. Those who have a great idea but are scared or cannot obtain financing and are therefore reluctant to get started will find the motivation and the know-how they seek in this battle-tested guide.

If I were the author of the book, I would have done these three things differently:

1.      Focus more on the art of bootstrapping. Statistics prove how few start-up ventures receive capital, and a number equally disappointing is how many do not even get the opportunity to pitch. One chapter of the book focused on internally funding the operation which is the method most commonly used.

2.      Gone into a bit more depth. This book was extremely helpful for anyone considering a start-up venture while providing a plethora of motivation. It just didn’t seem deep enough for someone in my position seeking more than a step-by-step guide to getting things started. I now know the steps needed, but lack the knowledge of how to implement them.

3.      Direct the instructions to a broader spectrum of entrepreneurs. I continuously got the feeling that the book was concentrating on IT and computer software start-ups. For me, those instructions are not as helpful due to the fact that I have minimal technological knowledge and no desire to pursue a career in that industry. However, judging by the history of the author’s line of work, what else was to be expected?

Reading this book made me think differently about the topic in these ways:

1.      This book does a great job explaining how to start your own business, but more importantly it stresses the motivation behind why you should start one. I have a dream to start my own business and envision it sky-rocketing, turning me into a billionaire. After some deep soul searching I realized my prospective business does have a meaning. It can better the world in big ways, and that should be my motivation, not the dollar signs I see in the future.

2.      I had the notion that more time should be spent planning, and developing your methods of execution. Guy pretty much preaches the opposite. He believes that the soul of entrepreneurship is doing, or starting, hence the name of the book. His message changed my outlook toward the first step of a start-up endeavor: starting and not planning to start is the true essence of an entrepreneur.

3.      It helped relax my anxiety I feel toward trying to start my own business, while opening my eyes to the real difficulties of entrepreneurship. I am scared because I don’t believe I know what steps to take, and Guy solves that by providing a blunt step-by-step “how to” guide.

I’ll apply what I’ve learned in this book in my career by:

1.      Striving to be a mensch in the business world. Give to those in need and help people because it is the right thing to do rather than because there is a hidden incentive for yourself. When karma rolls around, you’ll get your reward in the long run anyway.

2.      Making a meaning with everything I do in life. Whether it’s building a company in my garage or managing a Fortune 500 corporation, every undertaking must be motivated by a meaning that will better the world.

3.      Getting started. My degree concentration is entrepreneurship, so this is my calling to get going with that career. If this book doesn’t cause you to get started, nothing will.

Here is a sampling of what others have said about the book and its author:

“Kawasaki has been a Silicon Valley fixture since he helped put Apple Computer Company on the map. Since then, he has started a successful venture capital company and written seven books. His newest work addresses entrepreneurs who want to grow beyond being a company of one as well as innovators who work for large companies. Kawasaki writes in a conversational style that references his own life experience and sources as divergent as Peter Drucker and Seth Godin. The result is a handbook that has lots of useful information, though it will cause most would-be start-up artists to think twice about ever approaching a venture capitalist. It will also inspire people with great ideas to think hard about building a solid business with real cash flow. Unfortunately, the book seems to be written around the needs of technology start-ups and is not quite as useful for traditional businesses” (Turner).

“Kawasaki draws upon his dual background as an evangelist for Apple’s Macintosh computer and as a Silicon Valley venture capitalist in this how-to for launching any type of business project. Each chapter begins with “GIST” (“great ideas for starting things”), covering a variety of facets to consider, from identifying your customer base and writing a business plan to establishing partnerships and building brand identity. Kawasaki covers the basics in an effectively casual tone. Much of the advice, however, consists of generic banalities-start your company’s name with a letter that comes early in the alphabet, use big type in presentation slides for older businessmen with declining eyesight, and avoid writing e-mails in all capital letters-that can be found in any mediocre guide. Fortunately, Kawasaki does rise to the occasion here and there. He goes into great detail when it comes to raising capital and offers effective methods for sorting through the nonsense associated with interviewing prospective employees” (Publishers).

What I Say:

The examples above reiterate my earlier statements of opinion toward the book. For example: it is a handbook full of useful information although it may scare entrepreneurs from seeking venture capital. Also mentioned was how inspiring it is for those with a good idea to work hard and build a solid foundation. My criticism was repeated about the book being geared toward technological start-ups rather than a traditional business. Publishers Weekly criticizes Guy’s use of “generic banalities” which are blunt “do’s” and “don’ts” when preparing a pitch. I actually found them helpful because of the fact that I am often confused on what exactly the audience prefers.

Bibliography

Publishers Weekly (2004). Review of the book The Art of the Start. Reed Business

Information. Retrieved from http://www.publishersweekly.com/pw/reviews/search/index.html

Turner, S. (2004). Library Journal [Review of the book The Art of the Start]. Turner &

Assocs., San Francisco. Retrieved from

http://search.barnesandnoble.com/The-Art-of-the-Start/Guy-Kawasaki/e/9781591840565

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Contact Info: To contact the author of this “Summary and Review of The Art of the Start,” please email john.nugent-2@selu.edu or john.nugent@rocketmail.com

Biography

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:

Management Concepts (http://toptenmanagement.blogspot.com/)

Book Reviews (http://wyld-about-books.blogspot.com/) and

Travel and International Foods (http://wyld-about-food.blogspot.com/).                

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

More Free Art Articles

Start your own art school

Is your career going nowhere? Are you stuck in a dead end job? Have you struggled formerly to get beyond a job interview for that fantastic job? Worry no more – there is an answer to your questions! Simply set up your own art school business – except where do you start off?

So how do you run a new venture? You have constantly been the one who is told what to do. Now the shoe is truly on the other foot – you bestow the commands now. But what guidelines do you give to your staff? What tells do you send out? How do you realize if what you are saying or doing is the appropriate thing for your new art school business? It was painless in the past…the boss spoke…and you carried out what he/she said then you got remunerated at the end of the day. Having your own venture is a little trickier, if you get things incorrect now, not only will you not get rewarded (or get rewarded less), your decisions could impact detrimentally upon your workers.

]]>

Be careful when operating your own business – for definite you would like to make wealth, but not at all costs. What are the costs of business compared with just being a worker? You have more accountability to yourself, your household and employees if you have any – they are all reliant on you for their financial sanctuary. Gulp! Running your own business habitually means running longer hours and you may perhaps not make any funds from working those long hours where previously you may have got paid per hour/day. A guaranteed wage!

However the large bank balance helps!

For your own self respect; think of the feeling you have compared to being in a unremarkable occupation or no occupation at all. It is a lot unproblematic to get out of bed in a morning knowing you are constructing a business for yourself and your family unit; you’re doing it for your boss – who you might not even be fond of.

Persons have different reasons for fitting into the mold of an an entrepreneur – every one is different; and as such you will doubtless intend to do business in a better way than you have seen shown by other bosses in prior jobs you have had.

Impressive art school businesses are designed that way by people just like you. Industrialists thrive because they plan to be unbeaten, they take the time to work out how they want their business to be; they arrange it that way and take momentous pleasure as their venture and their life starts to tally their dreams.

Start-up your art school business today!

More Art School Articles