Why “Why?” is Vital to Every Entrepreneur

by

ARC-Blog-1_11-WHY

Over the past several years, with his juggernaut Tedx Talk Start With Why and best-selling book of the same title, Simon Sinek has popularized a concept first introduced by Stephen Covey in The 7 Habits of Highly Effective People. Although the concept of “beginning with the end in mind” was first applied by Covey to the habits that highly effective people develop, and then later by Sinek to how leaders inspire action, this concept is vital to every entrepreneur.

“Why?” Informs Everything for the Entreprepreneur
Entrepreneurs solve problems. Whether he is a small business owner or a VC-funded entrepreneur seeking to grow and scale a business, understanding the “why” is essential to entrepreneurial success.

The why–or the purpose–drives (or should drive) all strategic decisions for the entrepreneur. As Covey pointed out, the person who has his or her eye firmly focused on the larger why is positioned for success. The entrepreneur who thoroughly understands his “why” and can articulate it clearly is able to inspire others to join his cause, to take action, and to build something that is greater than the sum of the parts.

How to Find the “Why?”
Many entrepreneurs understand the why instinctively. Solving a problem is an impulse for the entrepreneur. He often “just knows” that it needs to be done. And many entrepreneurs are driven, focused and passionate by nature, so they may be able to influence and recruit talent, employees and investors to join them without fully exploring the why. But what does the entrepreneur who understands the power of the “why?” but does not yet have it clearly articulated do?

1. Identify the Problem That is Being Solved
Take the time to clearly identify the problem you are solving. No matter how complex the solution is that you imagine, distill the problem you are solving into one simple sentence. “Our company solves X (problem)”

2. Add The Target Market
You have identified the problem you solve. Now identify who you solve it for. “Our company solves X (problem) for Y (person/group of people).”

3. The “Five Why’s” Exercise
Startup guru, Ash Maurya developed the Lean Canvas as a way for entrepreneurs to easily articulate their basic business model. In the process of filling out a Lean Canvas, Maurya introduces an exercise to help the entrepreneur truly uncover the fundamental problem he solves. It is a simple exercise, but one that takes a little work. Once you identify the problem you believe you are solving, you begin to ask “Why is that a problem?” Once you have an answer to that question, you take that answer and ask the question again (up to five times). Pushing through the simple, obvious answers to this exercise uncovers the deep problem that an entrepreneur is really solving. Once you uncover the problem that is an emotional pain point for your target market, then you are equipped to connect in a meaningful way that will ultimately drive sales and profitability.

How to Defeat the Herd Mentality (at work and in life)

by

Herb Mentality

Last week on the blog, we talked about how to think like a great innovator. But what if you are not an innovator? What if you are stuck going with the flow? How do you break free? Try these helpful hints and incorporate them slowly into different areas of your life and watch your results shift.

“Herd mentality” or groupthink can be defined as “a pattern of thought characterized by self-deception, forced manufacture of consent, and conformity to group values and ethics” (Merriam Webster)

By this definition, we can identify three powerful strategies to avoid the herd mentality at work or in life.

Know Thyself
Avoid self-deception. Ralph Waldo Emerson said it well. “Whatever games are played with us, we must play no games with ourselves.”  Benjamin Franklin said it even more succinctly. “Observe all men; thy self most.”

Self-awareness is a vital component to your ability to go against the flow. If you want to change the status quo, you must become a master of yourself. The greatest knowledge a person can gain is the knowledge of the lies one tells one’s self. It is not the conscious shading of the truth that causes most damage but the unconscious untruths. Surround yourself with and value those who help illuminate your blind spots. Dig them up. Hunt them down. And uncover them. Learn to tell yourself the absolute and brutal truth at all times.

Recognize Manufactured Consent
Have you heard the expression, “he’s preaching to the choir”? That is manufacture of consent. Manufactured consent is “the practice of controlling or manipulating the norms, values etc. held by an audience by controlling what they are exposed to in the media.” (dictionarycentral.com)

Combat this obstacle by seeking out a variety of information sources. News or information sources that challenge your fundamental perspectives of an issue are particularly valuable. When you confront your own biases and beliefs with information that opposes them, you become stronger. Your ideas become more clear. You communicate your opinions and perspective more concisely and effectively.

Ask “Why?”
One of the most powerful questions you can ask (yourself, or anyone else) is “why?”  Dedicate yourself to the task of uncovering underlying motivations for your opinions, beliefs, and actions. When your “why” comes into alignment with your core values, you become powerful. Clarity allows you to step out of the herd. When you have a clear understanding of what motivates you, you are free to choose your own path.

Self-awareness, diverse information sources and an ability to align personal and professional values with driving motivations and a sense of purpose are all keys to defeating the herd mentality. Practice these skills and you soon find yourself rising above the rest.

How to Think Like a Great Innovator

by

innovation, business

Innovation has become a ubiquitous term in the realm of entrepreneurism. So what does innovation really mean and how can an entrepreneur leverage the power of innovation to solve problems and create a profitable business? Work to incorporate these strategies into your own creative development to improve the level of innovation within your organization.

Go With the Trends, but Against the Flow

According to Merriam Webster, innovation is “the introduction of something new. A new idea, method, or device.” By this definition, much of the innovation that receives greatest promotion and coverage in the media and in our society is simply clever imitations or iterations of products or services already on the market.

So what does it take to truly innovate? Wayne Gretzky, one of the greatest hockey players of all time is purported to have said, “A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.” In the same way, a good entrepreneur creates value where the trends in the market are. A great innovator sees the trends and creates solutions where the trends are going to be.

A great innovator is the person who recognizes the trends in the market, but recognizes that the greatest opportunity lies at the point in the future where the trends are leading. A true innovator instinctively goes against the flow because he recognizes where the flow is going and creates a strategy to move there more quickly and more creatively.

Think Like an Innovator

If you are not a natural innovator, that is okay. All human beings are creative. And all of us can harvest that creativity. If you want to become a better innovator, first of all you must become an observer. Next, you must ask questions. Finally, seek out different opinions?

Be smart. Surround yourself with intelligent people you trust and respect who think differently than you do. If you are a creative mind, find some analytical colleagues. If you are an MBA, hang with some MFA’s (Master of Fine Arts).

People of differing socioeconomic, cultural and religious backgrounds have different worldviews. They recognize different problems. They seek to solve these problems in different ways. This is where true innovation happens.

In his little-known play, Back to Methuselah, George Bernard Shaw wrote, “You see things; and you say ‘Why?’ But I dream things that never were; and I say ‘Why not?’”

At the end of the day, the true innovator develops the vision to dream of things that “never were.” The great innovator has the confidence to not only ask, “why not?” but to take action to prove whether those things are possible. And when he finds that what was never dreamed of is, in fact, possible, our world changes. Those types of innovations are written language. The printing press. The cotton gin. The steam engine. They shape the foundations of our society and it is transformed by them.

Startups to Watch in 2017

by

startups

Across the country, millions of entrepreneurs are gearing up for the new year, finding ways to be better, faster, stronger, and make 2017 “their” year. While there’s surefire way to tell who will succeed and who will fail, there are a few companies we can see making huge strides over the next 12 months. Here are the startups we think are on the brink of greatness in 2017.

Slack

Slack has been taking the tech world by storm since it was founded in 2013, and is poised to explode over the next year. Originally created to be an internal program for tech company Tiny Speck, Slack makes communication among groups and teams much more streamlined by creating a chat room in which users can also share files and collaborate on projects.

World View Enterprises

This startup is “Radically Rethinking Access to Space” by sending balloons up into the stratosphere to take photos and collect data more efficiently and economically than any other company on the market. The company is also exploring stratosphere tourism, where they will take people on the edge of space.

Exabeam

Cybersecurity is an increasing important and profitable market, and Exabeam is capitalizing on this opportunity through its security product that tracks human behavior on subscribing networks and identifies people who are attempting to sabotage or hack it. In addition to preventing cyber attacks, it can also work forensically to discover who hacked into a network and how they did it after an attack has been conducted.

Classy

Nonprofits and charitable organizations often struggle with attaining the business operating system necessary to efficiently achieve their important goal of helping people and communities. Classy remedies this problem through an accessible, high-level fundraising platform.

What startups do think we’ll see expontential growth from in 2017? Let us know on Facebook @ArkansasCapitalCorporation or Twitter @ArkCapitalCorp.

Arkansas Capital Year in Review

by

2016 year in review

The final weeks of December are upon us, and we at Arkansas Capital can’t help but look back on the past year and be thankful for all the excitement, success and advancement of Arkansas entrepreneurship brought by 2016. While we couldn’t possibly list all of the highlights that took place this year, we’re sharing a few of the most memorable below.

David’s Burgers

David’s Burgers is widely-known in central Arkansas for its freshly-pattied, Grade A beef burgers, creamy shakes and endless amount of hot French fries. When they needed support from Arkansas Capital to open their Maumelle location, we jumped on the chance to work with this outstanding establishment.

Uncle T’s Deli-Market

Uncle T’s Deli-Market has been serving delicious sandwiches, freshly cut deli meats and cheeses, as well as common grocery items, in the same location on Martin Luther King Drive for almost 40 years. A respected and loved establishment in their Little Rock community, Uncle T’s Deli-Market is an ideal Arkansas Capital client, and we were thrilled to help them open their upcoming Conway location. Be on the lookout for their grand opening in January!

Shared Services Center Fort Smith Expansion

Shared Services Center is one of the largest employers in the Fort Smith area, as well as one of the fastest growing. When we were approached to help expand this outstanding company, we were thrilled to help them improve and extend their space to accommodate new employees.

Veteran’s Day at Flyway

We at Arkansas Capital love supporting our clients and celebrating those who have made sacrifices to protect the freedoms we enjoy in the United States of America – and we particularly enjoy combining the two. For Veteran’s Day 2016, we hosted an event at Flyway Brewing (one of our outstanding clients) where we bought all veterans a free beer, as well as a beer for civilians that made a donation to Veterans Villages of America. More than $700 was raised to support local veterans in need that night, and fun was had by all in attendance!

Heartland Renaissance Fund

Heartland Renaissance Fund, LLC, – and Arkansas Capital CDE – was awarded a $65 million allocation in New Markets Tax Credits, the second-largest amount ever awarded to Heartland. These funds will help increase investment in businesses and economic activities in low income and underserved communities throughout Arkansas. Learn more about the allocation here.

Reviewing Your Business Plan

by

business planDecember is National Write a Business Plan Month, and while this month of holiday gatherings and indulgent food may seem like an odd time to write a business plan, it actually provides a much better opportunity to prepare your business for 2017 than the typical January scramble. You want to be able to hit the ground running New Years Day, not be starting from square one. December will also likely bring fewer requests from clients, vendors, employees and partners, allowing you to focus on your business plan without interruptions.

We already covered the steps to building your original business plan here, but did you know you should also carve out time at the end of each year to review your business plan and make necessary tweaks as well? Before you reach for the old plan though, take the following actions to evaluate your company’s current situation and identify new opportunities.

 Pay attention to your customers.

Make note of who your customers are, what demographic seems to be your “bread-and-butter,” which unexpected demographics you’ve picked up, and what value your company seems to bring to their lives. Also, search for customer reviews on your social media channels, Google and review sites. Record the qualities people seem to most appreciate about your business and which they could do without.

 Talk to your employees.

Like you, your employees are on the front lines of your business, and are intimately familiar with your company and its products or services. Unlike you though, they are likely more aware of issues within your business or with your product that you may be blind to. Tap into this wealth of information by having honest discussions with a few of your trusted employees, or pass out a survey around your office.

 Note pleasant surprises.

If you’ve had any wins this year that you didn’t expect, identify them and think about what caused them to occur. Maybe you picked up a new expected customer base, or one of your services was significantly more successful than anticipated.

 Note unforeseen challenges.

When crafting an initial business plan, every entrepreneur has one aspect of the company that should be a breeze, but for whatever reason just doesn’t seem to be coming together. Make note of what that is for your company, and why you think you’re having trouble with it.

List out new industry trends.

In today’s fast-paced world, even the most even-keel industries change and go through different trends year to year. Record what those are for your industry, and try to identify new opportunities and problems you can solve within them.

Once you’ve taken these steps, you’re ready to revisit your business plan. Armed with the knowledge you have from the above research, you’ll be able to map out a strong course of action for 2017.

The Future of the Millennial Entrepreneur

by

While the word “millennials” often carries a negative connotation associated with social media addicts and the “Me” generation, they are actually proving quite the opposite in the small business world. A recent survey released by Sage, a global software company, states millennials – more than any other generation – desire control over their schedule, are socially conscious of those in need, and have a fierce commitment to the happiness of employees they will manage.

According to Sage, 65 percent of this generation want to start at least one business in the near future, no matter the outcome of the global economy.
[Read more…]

Arkansas Women in Small Business

by

women in small business

One of the growing trends in alternative lending for 2016 is transparency, especially concerning loan opportunities for female entrepreneurs. Are loan offices giving women the chance to start and grow a small business? Information on the topic varies depending on the source, but we’re seeing a positive outcome here in Arkansas. What we do know is how successful women can be in growing the economy when given the chance.

[Read more…]

Why Small Business Owners Need A Mentor

by

 

Most business owners would agree a mentor is a positive personal and business relationship to have, but few see it as the invaluable asset it is. Having a mentor in your life isn’t just something worth considering; it’s something you should be actively pursuing if you don’t have one. Read on for a few reasons why you need to find a mentor. [Read more…]

Small Biz Spotlight: Flyway Brewing

by

Small Biz Spotlight - Flyway
Small Biz Spotlight – Flyway

In honor of National Drink Beer Day, we’re spotlighting one of our favorite local breweries, Flyway Brewing. A classic story of a hobby-turned business, the tale of how Flyway Brewing was founded begins in 2012, when beer home-brewer Matt Foster brought some of the fruits of his labor on a yearly camping trip with his friends. [Read more…]

The Importance of Artwork in Your Office Space

by

artwork in offices

Outfitting a new office is an exciting time for any startup or small business. Choosing desks, computers, chairs, printers, break room appliances and other equipment often consumes most of the office set up decisions, but there is one important aspect of office preparation that is all too often overlooked: art. While some may consider it an extra expense, the right art on the walls of your business can be a powerful tool in increasing productivity, connecting with customers and helping your business grow into a healthy, thriving company. Here’s how:
[Read more…]