4 Constituencies Great Entrepreneurs Faithfully Serve
To produce a great symphony, a conductor must be able to direct all four parts of an orchestra – brass, woodwinds, percussion, and strings. Similarly, founders of ventures must earn the trust and keep the confidence of four constituencies: customers, team, investors, allies.
CUSTOMERS
Attracting and keeping customers is the main purpose of a business. Sam Walton, founder of Walmart, shared his secret for customer loyalty: “Exceed your customer's expectations. If you do, they'll come back over and over. Give them what they want -- and a little more.”
There is an underappreciated advantage to being customer-centric. It was explained by another giant in business, Jeff Bezos, founder of Amazon. He said, “If you’re competitor-focused, you have to wait until there is a competitor doing something. Being customer-focused allows you to be more pioneering.” Think about that. It’s a liberating realization.
How you value customers will ultimately determine how they view your company. Do you care enough about them to learn as much as possible about them? Is “customer service” just a job in your business or is it an imperative for the whole company?
A great entrepreneur is driven to give customers not only great products, but a great experience. Why? What is the motivation to be so ambitious that way? Because “success” isn’t just measured by money and metrics, but by a golden rule – to serve customers as you would want to be served. That’s a catalytic principle that can turn a small business into a skyrocketing business.
TEAM
It’s tempting for executives to view their business as an organization chart, but it’s better to see it as an organism – an evolving team. When you appreciate its unique potential that way, you are better able to bring out the best in employees, contract workers, vendors, and consultants.
“Too many companies believe people are interchangeable. Truly gifted people never are. They have unique talents. Such people cannot be forced into roles they are not suited for, nor should they be. Effective leaders allow great people to do the work they were born to do,” explained
Warren G. Bennis, organizational consultant and scholar.
Leadership is both science and an art. To be effective, you need to be many things – confident, knowledgeable, determined...and above all, caring. You must care about the team, and team members must know you care. Richard Branson, founder of Virgin Group, offered this advice: “Train people well enough so they can leave, treat them well enough so they don’t want to.”
INVESTORS
Wise founders don’t just view investors as needing to be cultivated and convinced, but consulted, as well. Investors often provide thoughtful advice, and their constructive skepticism helps founders question assumptions, consider new options, and plan more realistically.
British entrepreneur Deborah Meaden said: “If you're looking for investment you've got to think about what the investor gets from being involved with your business. A lot of people think about what they're getting from their point of view but not about what the investor gets out of a deal.” What does an investor want? A good “return on investment” isn’t only the financial reward; investors also take pride in helping create new businesses, jobs, products, and services.
One investor deserves special recognition: the founder. "When in doubt, bootstrap. Using your own personal resources is the easiest way to start a business. You don’t have to convince investors about the merits of your idea. You just have to convince yourself," observed Ryan Holmes, co-founder of Hootsuite. While many bootstrapping founders go on to raise funds from others to grow the venture more rapidly, they don’t forget the risk they took with their own investment and thus appreciate even more their obligation to investors to do their very best to succeed.
ALLIES
Entrepreneurs must be resourceful, and they often look for allies who can help with needs like research and development – entrepreneurship centers, small business associations, foundations, accelerator programs, strategic alliances with other corporations or nonprofit organizations...
Chieu Cao, co-founder of Perkbox, advised: "Don’t try to do everything by yourself, but try to connect with people and resources. Having that discipline and perseverance is really important.”
If you wonder whether making allies should be a high priority for a busy founder, think back on mentors who made a difference in your life. We don’t outgrow the need for mentors – allies who appreciate our abilities, understand our business model, and will invest time to help us succeed.
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