Picture this: earlier this year, I had the incredible opportunity to soak up some serious business wisdom straight from the mouths of Shark Tank's heavyweights—Daymond John, Robert Herjavec, and Kevin O'Leary. At an event that felt like a crash course in entrepreneurial excellence, I came away with not just inspiration but six killer insights that have since become my business north star.
In this blog, I'm peeling back the curtain and sharing the insider knowledge I gained from these business geniuses. These aren't your run-of-the-mill tips; these are the kind of gems that can steer your ship through the stormy seas of business and come out on the other side stronger and more successful.
Now, let's dive into each of these lessons and uncover how they can transform the way you navigate the unpredictable waters of entrepreneurship:
#1 Numbers Are Your Lifeblood
Navigating the labyrinth of entrepreneurship and business in general requires a profound appreciation for the lifeblood of business—numbers. As Kevin O'Leary succinctly articulates, "If you can't measure it, you can't grow it." This sentiment underscores the pivotal role that understanding your business metrics plays in fostering growth. Regular scrutiny of key financial indicators not only unveils areas for improvement but also creates a sturdy foundation for strategic decision-making. Daymond John further amplifies the significance by asserting that a company devoid of a firm grasp on its numbers stands as an unattractive investment. It's not merely about the present; it's about discerning trends and having the acumen to pivot or reinforce successful strategies. In the wise words of Robert Herjavec, "You can't be in business if you don't like numbers," solidifying the notion that a fundamental affinity for numbers is intrinsic to entrepreneurial success.
This numerical narrative extends beyond the financial realm to encompass operational Key Performance Indicators (KPIs), intricately woven into the fabric of gauging your business's overall health. Just as the Entrepreneurial Operating System (EOS) provides a holistic framework for managing and growing a business, understanding your numbers becomes the guiding force in implementing and fine-tuning this operational infrastructure. It's about aligning your financial metrics and operational KPIs with the broader vision encapsulated by an effective operating system, ensuring seamless integration and coherence in your business strategy.
Moreover, the mantra of "Numbers Are Your Lifeblood" resonates not just at the leadership level but also within the realm of employee success. Numbers become the language through which individual contributions are recognized and celebrated. Employee Key Performance Indicators (eKPIs) play a crucial role in evaluating and nurturing the success of your team members. By fostering a culture that values and understands these metrics, you empower your employees to contribute meaningfully to the overarching goals of the business. Through numbers, success becomes a collective journey where every individual, armed with a deep understanding of their metrics, contributes to the thriving heartbeat of the entrepreneurial venture.
In the EOS system, this is called the Scorecard. The scorecard lets you know when you and your team are winning at the end of the day. Done correctly, scorecards can head off train wrecks before they happen and let you know where you need to reallocate your resources. In our case at Business Data Services, the scorecard helped us get a handle on our marketing and sales funnel, our response time to open tickets, and customer satisfaction. All important things for a growing service business! Note: A scorecard is a growing organism. It will grow and become more mature as you and your team do!
#2 Create a Focus
Derived from the insights of Daymond John, the concept of "Create a Focus" delves into the art of honing one's focus not merely within a generalized market but precisely onto a specific industry. This process involves the meticulous cultivation of profound understanding and expertise, an unfolding journey that becomes possible through concentrated efforts within a specialized sector. Beyond surface-level comprehension, it necessitates immersion in the intricacies, challenges, and unique opportunities that a chosen industry presents.
This strategic shift, akin to Robert Herjavec's evolution from a small MSP to leading the world's largest MSSP, Cyderes, underscores the immense potential for growth and dominance within a targeted industry segment, even for those commencing on a modest scale. As entrepreneurs channel their efforts and resources into this carefully defined industry, they position themselves as experts, finely attuned to the distinctive needs of that sector. It's not a matter of casting a wide net; rather, it involves crafting a precise and targeted strategy that penetrates deep into the veins of the chosen industry, fostering relationships and ultimately achieving dominance.
Adding a layer to this narrative, in the context of the EOS method, this concept aligns with what is termed “Core Focus”. Emerging from the very core of the organization, it serves as a beacon to remain steadfastly focused. Gino Wickman, the creator of EOS, offers a compelling analogy: "The sun provides the earth with billions of kilowatts of energy, yet if you stand in it for an hour, the worst you will get is a little sunburn. On the other hand, a few watts of energy focused in one direction is all a laser beam needs to cut through diamonds." Aligning yourself and your team with this core focus and vision in the EOS method increases the likelihood of achieving it, much like the precision of a laser beam cutting through the toughest challenges.
#3 Empowering Yourself by Surrounding Yourself with Great People
Daymond John's recommendation to concentrate on your core strengths resonates deeply in the entrepreneurial landscape. As he eloquently puts it, "I want to be Disney. I want to create Mickey Mouse as much as I can." This sentiment underscores the power of focusing on your unique abilities and passions. In the EOS framework, this aligns seamlessly with the concept of Core Focus, emphasizing the importance of remaining steadfastly focused on what your organization does best. As you navigate the complexities of entrepreneurship, maintaining a keen awareness of your strengths becomes a strategic advantage, guiding your decisions and driving sustained success.
The notion of building a strong team by bringing on individuals who complement your skill set is a cornerstone of entrepreneurial success. Daymond John's emphasis on surrounding yourself with great people who fill in your gaps aligns with the EOS principle of "Right People, Right Seats." In the context of his experience, he speaks to the broader landscape where many individuals have control over various levers in life but may be slightly disconnected from the intricacies of specific domains. This insight encourages entrepreneurs to collaborate with individuals whose strengths compensate for their weaknesses, creating a synergistic dynamic that fosters innovation and resilience.
Daymond John's pragmatic approach to outsourcing tasks that fall outside your expertise is a strategic move echoed in the entrepreneurial playbook. His words, "I don’t want to grow my company and hire an HR person for every 50 people," encapsulate the essence of strategic outsourcing. In the context of EOS, this aligns with the concept of Delegate and Elevate. Recognizing areas where external expertise can enhance efficiency and outcomes allows you to focus on high-impact activities that leverage your core competencies. This outsourcing strategy is not just about delegating tasks but also about elevating the overall proficiency of your business. As you navigate the intricate landscape of entrepreneurship, strategic outsourcing becomes a powerful tool for optimizing your operations and driving sustainable growth.
These words of wisdom could not have resonated with me more as I help run our family business, Business Data Services. Outside of our core services and offerings, there are many things that we need to do to keep the business functioning. Take, for instance, the realm of Digital Marketing. While it is a small part of Marketing & Sales as a whole, there are many aspects required to produce results with Digital Marketing. To handle this specialized area comprehensively, an army of skilled professionals would be necessary—an SEO specialist, a web designer/developer, a marketing automation specialist, a graphic designer, a copywriter, a proofreader, a social media specialist, and potentially more depending on specific goals. Daymond's approach of hiring people to fill in your gaps is precisely what allowed us to navigate this landscape effectively. Rather than attempting to build an entire in-house team for every facet, we strategically hired for certain roles and outsourced others, all while meticulously tracking success metrics for both in-house team members and external collaborators.
The key is to delegate, not abdicate. Delegating is turning over the responsibility to someone else but you, the delegator, are still responsible for the results. Abdicating is letting go of the reigns completely and turning your back on the situation. It’s about crafting a dynamic and efficient ecosystem where each element, whether in-house or outsourced, contributes meaningfully to the overall success metrics.
#4 Commit to Become a Sales Focused Organization
I want you to read the following comments and take them seriously.
Herjavec said, “Be more aggressive. Growth and sales cure all ills. If you wait for the perfect moment to grow, it’s going to pass you by, so get going.”
John said, “A lot of the time, people are dying to give you the money. They are standing in line, and they say, ‘I’ll come back later’ because there is no register available . . . If you have a viable product, go out and have more registers.”
These perspectives align with a fundamental truth: having the best service or product alone isn't sufficient. The time and effort invested in creating a stellar offering finds true value when translated into sales. Predictable sales not only allow businesses to forecast hiring needs but also empower them to selectively choose customers, avoiding those who might prove detrimental to the team. The concept extends beyond immediate benefits; a business with predictable sales becomes inherently more valuable, a key consideration for potential buyers.
In navigating the realm of sales, the advice is not to adopt a pushy approach but to establish a system that effectively communicates the value of services. Part of creating or adopting a sales system is training and accountability. Many entrepreneurs don’t have a system they hold themselves accountable to. After all, they own the business and don’t report to everyone. However, when you don’t hold yourself accountable to system, the results are inconsistent and hard to troubleshoot. What if Chic-Fil-A staff prepared meals in whatever order they felt like in the moment? The lobby and drive-thru would get backed up and their customer experience would suffer. What if Patrick Mahomes ran his practice based on what he felt like that morning instead of strategically following coach instructions on plays that can help overcome the next opponent? We wouldn’t have a winning Chiefs team right now.
#5 Foster Growth in others through education
Knowledge is power. Daymond John cites Listerine’s use of “chronic halitosis,” as a case study for how this statement relates to the business world. Through education, Listerine was able to make people aware of an issue that leads to bad breath. Daymond John elaborated further by stating, “Most of the people who will need you are suffering right now. They don’t know how much they need you, so your communication needs to be improved in certain segments. People need what you’re doing, and most don’t even know they need you and they desperately need you.”
If your business is like mine where the services are intangible, you could have a lot of education to do. This year, we’ve spent a lot of time building core content and pillar content which we’ve then promoted through various avenues. If you’re reading this, you’re seeing a product of those efforts. Sometimes, you have to make your audience aware of a problem that they have but they didn’t know they have. By definition, they don’t know what they don’t know.
I want to challenge you to look at your business from the outside and educate your customers. Ask your colleagues and top clients for feedback on content you create.
#6 Take Cybersecurity And Compliance Seriously
Technology is a part of our everyday life, both business and personal. Hackers know that and try to take advantage of that fact. Unfortunately, we (Kansas City businesses and North America based businesses in general) are the target of many bad actors that are extremely well funded by countries that don’t like us much. To drive home this point, Shark Tank’s Robert Herjavec said, “Cybersecurity applies to every vertical today. We create more data every three months than in the last fifty years – think about that. And on top of that, you have compliance.”
Fun fact: Robert Herjavec’s company, Cyderes, is here Headquartered in Kansas City!
To expand more on what Herjavec said, when people hear compliance and regulation, they think regulations and mandates from the government. If you aren’t already regulated, you might see some requirements around technology and cybersecurity come down from large enterprises or insurance companies. Both of these organizations are looking to reduce their risks and see small businesses as one of their risks.
While compliance itself doesn’t mean a business is secure, some of the compliance frameworks provide a good foundation to become secure. One of the ways to do that is have a 3rd party assess your network. This is actually something we did and do on a recurring basis for our own business! After all, you can’t and shouldn’t grade you own homework. We take that approach to our cybersecurity.
You can do the same for your cybersecurity! Even if it’s choosing a small aspect of your business’s cybersecurity, like password hygiene, to work on each quarter.
If my words aren’t enough, here is what Kevin O’Leary said on cybersecurity and compliance, “I run private equity for governments, and what’s happened there is you must go through an RFP process. What they care about more than anything else is compliance. Can you show them a platform that is 100% compliant that you’re managing right now? That’s more important than returns in some cases because everybody must be compliant now. That’s the fastest cost I have in my business. I’m constantly paying for more tools to have transparency in how we’re investing the Treasury’s money or the state’s money or whatever it is. Everything is compliant, and that’s expensive. You should start focusing on that, even for smaller businesses. Anybody that’s got anything to do with the government or servicing them.”
I trust these insights resonate with you as profoundly as they did with me. Inspired by the wisdom of Shark Tank's Daymond John, Robert Herjavec, and Kevin O'Leary, I've distilled six transformative lessons that have become my entrepreneurial compass. Now, I invite you to delve into these insights and consider adopting one for the next three months. Just as Gino Wickman advocates, focusing on fewer goals yields greater results. In the spirit of this advice, I encourage you to prioritize one key lesson and witness the substantial impact it can make on your business.
If cybersecurity and compliance are areas of concern, I invite you to schedule a 15-minute discovery call with us. This call can pave the way for a comprehensive cybersecurity assessment and a technology roadmap, guiding your business on a secure and successful journey. Choose a time that suits you, and let's fortify your business against the challenges of today's digital landscape. You can book your discovery call here!
