Do you know the difference between small business owners and entrepreneurs? How about understanding being reactive, proactive, or predictive in your business? Our guest today talks about this and other useful information for small business owners. Brian Moran is the CEO of Small Business Edge. Where he helps entrepreneurs achieve their objectives and run really great businesses.
In the past, he was the executive director of sales development at the Wall Street Journal and president of Veracle Media and Moran Media Group. He also co-authored Lessons from the Great Recession. Brian has been in the publishing industry for over 20 years and was named as one of the top SMB influencers in the country. He's a really smart guy, and we are excited to have him on the show today.
[03:30] Cash flow and finances are always one of the common challenges that businesses have.
[04:03] Most business owners don't understand what type of business owner they are.
[04:32] There's also passionate business owners who are in between small business owners and entrepreneurs.
[05:29] SMB is a small to mid-sized business. Less than 100 employees is a small business. One hundred to a thousand employees is a mid-sized company. Anything over that is an enterprise company.
[06:57] Entrepreneurs are all about growth and that's how they look at purchases.
[07:31] Small business owners look at purchases as expenses. Work-life balance is also very important.
[08:39] Passion businesses are people like a chef or a yoga instructor who opens their own studio our restaurant.
[09:45] When starting a business, you need a focused GPS like plan. You don't want to be reactive, you want to be proactive.
[10:52] Opportunities come up for people who are successful.
[11:21] Play the what if game, so you will be ready for opportunities and obstacles.
[13:00] When you have a goal in your business like a revenue number, everything you do should be a means to that end.
[13:27] When an opportunity comes up, ask if it will get you closer to your goal.
[14:31] Have monthly milestone markers and look at your plan and see if you are where you need to be.
[15:59] Most business owners spend their day in the weeds of their business. Are you reactive, proactive, or predictive?
[16:43] You react to situations when you don't know the root cause of that problem.
[17:55] Proactive are people who take the 20,000 ft view of their business. You can draw a map and decide how you are going to respond to obstacles or opportunities.
[19:46] Predictive business owners know where they want to be five years from now. They do the things they need to do to control their destiny.
[24:00] With a little bit of homework a business owner can go from reactive to proactive.
[24:33] If you look at the cracks in your foundation, you can fix what is wrong and run a better company.
[25:20] Put together a plan and execute it. Also treat your plan as a living breathing document.
[26:26] Have an adviser or a mentor who can see things that you miss.
[27:37] Businesses need to connect to their customers in a digital social way.
[30:08] Brian has a friend who has a pest control company. With a company like pest control, a better approach for social media would be to provide educational tips.
[35:54] Brian walks us through a scenario with a fictitious woman who owns three daycare centers in Chicago. She could license or franchise her model. It could also be corporately-owned. Start looking at the big picture.
[37:38] Start with where you want to be in 10 years. Then back things down to where she is now and see how efficiently things run.
[41:22] The right people will come up with business ideas that you have never thought of.
[42:26] Small Business Edge Community platform is launching next year.