#25a – Leading in a Time of Crisis by Bill George, The Women’s View

Penny and Bill George - Leaders in Business and Life

I was running so hard to be CEO of Honeywell that I was losing it. I was trying to impress the board of directors.  I came home and told my wife this. She said, “I’ve been telling you this for a year, and you didn’t listen.” It’s always those closest to you who see it. When I walked in the doors of Medtronic, I knew it was where I fit. It was like coming home to a place where I’d never been before. We were making a difference in all kinds of tough diseases.

What are you going to do when you leave this world? What is your legacy? Be part of that small group of people that is changing the world.

The above is an excerpt from Bill George’s speech at the 2009 World Business Forum in New York that I’m attending with an eye toward women’s issues. Bill George is an HBS professor and former CEO of Medtronic. George gets a high rating from the ChiefHotMomma for addressing issues and trends important to women, their lives, and their businesses.

Here are his top seven leadership skills for leading in a crisis. Aside from the recession, I always feel there is some sort of crisis going on whether it’s life or business. I really liked these points.

#24b Techniques for Learning to Improve Your Business – Building a Million Dollar Business Part Time

This post continues the summary of key takeaways from Network Solution’s first annual GrowSmart Biz conference in Washington, DC. Here is the first post. Here is the livestream.  In this second post, I highlight the broader topics discussed by WIRED Editor in Chief Chris Anderson. Sometimes we wonder how larger economic and business trends impact us. Well, this is how.

Chris Anderson addressed the concept of the changing – and sometimes confusing – new models of business in this new economy. His new book Free discusses the finer points of a “Freemium” economy. It’s where things are heading, and we better get on board.

About Chris: One of the most knowledgeable, articulate voices at the center of the new economy. In addition to serving as the managing editor of WIRED, he is an entrepreneur and the author of two New York Times best sellers. Below are my primary takeaways from his talk.

Takeaway  #1. Doing something niche and focused in the global marketplace is a completely viable proposition. Anderson elaborated on some examples that allow businesses to find their customer, in a niche, wherever they are in the world. For example, Italian designers; The fashion industry is dominated by small designers with global impact. Anderson also spoke about the ability to go online, find a manufacturer to make your product in China, and order 100, or 10,000, or 1,000,000 of that product. Niche…the small guy…agility. The market is heading in a direction wherein the little guy will likely learn to scale up before the big guys learn to scale down.

Action Steps:

1. Define yourself and your customer.
2. Find your customer, and let them find you.

Takeaway # 2. The power of free. Lower the barriers and allow the customers to dip in, then charge them. In 20^th century terms it’s called “cross subsidy.” Jello was an unsuccessful company until undertaking a specific promotional campaign. Approximately five million free recipe books were printed and given out to households, door-to-door. Jello then, in turn, went to stores and said, ”You’re about to get a flood of people asking for this product.” Jello had created a situation in which the book was useless without the ingredient. They created an enticing, and free, promotion which compelled a purchase.

Takeaway #3 – If you have a digital arm to your business, Freemium is the way to go. Giveaway one thing, and create a lifetime demand for something else. Anderson says the Freemium model is about giving away 90% of your product, and charging for 10%. Customers are able to experience the product, and then have the choice to upgrade (note: you need to develop a second product for which you charge). Customers who continue with the free product continue on in their role as a pooled audience which has value (e.g., advertising value). The customers who convert to paid, Anderson notes, are the “best customers.” They are familiar with the product, they upgrade based on knowledge, and there is very low churn. The old model is to seduce the consumer into buying the product, and then hope that they like it. We’re forced to distort and over-sell the product to entice them to buy it. Their only chance to experience the product is to buy it. They feel like a sucker afterwards if they don’t like it.

Action steps:

1. Create a free, enticing offering allowing consumers to experience the product.

2. Create a paid, second product (this is the challenge – What is the second product you’re offering?)

For more on Chris Anderson, please see this blog post from Steven Fisher.

#24a Techniques for Learning to Improve Your Business – Building a Million Dollar Business Part Time

Today I am attending Network Solution’s first annual GrowSmart Biz conference in Washington, DC with the goal of:

• Learning stuff.
• Meeting people.
• Not being a troll, which, as a mom of two young kids is a reality I face.

This was a summer of learning, of which this conference is a continuation. Learning is important. Our Hot Mommas Project survey (largest database of teachable role models) indicates that one of the KEY traits of successful women is the interest in life-long learning. So here I am, learning and sharing top takeaways (in a series) from the following incredible folks:

#21 Get Happy, or Get Out – AKA “Making a Deal With Your Entrepreneurial Spouse”

Two busy entrepreneurs, one happy, one sad

My husband and I are both entrepreneurs.  Everyone we know has had to lay people off, us included. It’s a  tough time. The other night we were on the porch talking for the umteenth time about how he is worried about cash flow in his business.  My old boss and mentor Zane used to pace the halls when cash flow was at a worrisome level. However, THEN I did not take that problem home. NOW, I do. We do. It’s hard. It’s money, it’s home, it’s family, it’s “Am I successful?”, it’s all of that. Everything is tied together when you’re an entrepreneur.* 

#18 Top 5 Tips for Getting Media Coverage. Media Training Part 2 – Building a Million Dollar Business Part Time.

 

Here is a pair of underwear I came across in the Gold's Gym parking lot. This will make sense later.

Media. Coverage. How do you do it? How do you get there? The Hot Mommas® Project has experienced a baptism by fire with regard to media training this past year.  We talked with some experts to make it more familiar, and less “TAKE.ME.TO. YOUR.LEADER.” Here are the big things we learned.

#17 How to Bring Red Carpet Cache to Your Event – Media Training Part 1

Last night I attended the premiere of Rock of Ages on Broadway. Here is a review. It ROCKED! I was with my friend who works in the entertainment industry. In this post I share what I learned re: ins and outs of the red carpet. What does this have to do with The Hot Mommas Project and entrepreneurs , in general?  With a little organization, red carpet “cache” can be applied to any event needing to stand out from the crowd. Below are my top 5 observations about the red carpet, how it works, and ideas for applying it (entrepreneurial bootstrap style) to an event.

Building a Million Dollar Business Part-Time #16: How to do a Mass/Blast Email Campaign

Let me start this post by saying: I am not a huge fan of mass emails.

Exception: When someone has opted in, as I have for two of the best newsletters I know (from Harvard Business School and Julie Weeks’ WomenAble, also listed at bottom of this post).

Sections of this post will cover: Popular mass/blast email programs/campaigners, how to write a blast email, challenges of blast emails, and other fun stuff. Everything in this post is totally opposite @TheMogulMom’s summary of Seth Godin’s advice on “How to Write a Personal Email.”

Building a Million Dollar Business Part Time #14b: Confessions and Reflections

This is the second of two posts reflecting on what has worked, and what hasn’t, since conceiving and implementing the Hot Mommas Project case study competition. See first Confessions and Reflections post.

It ain't pretty. Computer + Face Mask = Fake Relaxation

Pictured here, I am “relaxing” with my computer open.  Quite unsightly on a number of levels. First confession: I may be a part time working mom physically, but I am full time-plus mentally. I am constantly thinking about the project. I’m freaking exhausted. I seriously think I have carpal tunnel in my shoulder.

Building a Million Dollar Business Part Time #14a: Confessions and Reflections

Helping me fight the fight every day: Starbucks

Here is a little review of what held true and what didn’t for the Hot Mommas Project journey since March (when this insider’s blog was started). Things that turned out not to be true – that was not by design.  I think I was just hopeful. You know, like, “Here’s how we’re going to do this. YEAH!” Then, reality unfolds.

Building a Million Dollar Business Part Time #14: How to Do a Business Model

The Hot Mommas Project is making CLOGS, but not the kind you think.

The Hot Mommas Project has no business model. Is that wrong? Okay, maybe that is not totally true. We have 5 out of 6 parts of a business model.  The clincher: We’re missing the economics.  So, to rationalize this – I have decided there are two primary ways to look at business models. This can be summarized as:

A. What I teach my students at GW.
B. The “Because it would be cool” theory.

A. Okay, let’s first start with what I teach my students about business models. One of the best business model tools out there is a 6 part process constructed by a team at Syracuse led by Michael Morris.

The 6 parts of the business model – in layperson’s terms – according the the Michael Morris paper are:

1. How we create value – what you do/make and put out there in society
2. For whom – okay, this one is self explanatory
3. Internal comp advantage – operational efficiencies or processes that make you better
4. External com advantage – how folks outside the company know you’re better
5. Economics – how you make money
6. Exit strategy – what is your exit from this business, is there one?

This is an incredibly back-of-the envelope description of the paper by Mike Morris and his team, but, you get the general idea.  There is a grid at the back of the paper I have students fill out using various business examples. First, we start with a seemingly non-businessy example. Mine is Lord of the Rings. I hand out a summary about the filming, the tax advantages they gained filming in New Zealand, how they filmed it all at once, how they locked in the stars for all three in doing that, the rights to the book, the cult following, and some other stuff. Then, using information we just know – because we walk upright and have cable – the students talk about how the movie makes money.  That’s fun. That’s when they realize they know more than they thought about business. Last, is the exit strategy part. This is a zinger. LOTR really shows students how movie makers put in a TON OF MONEY for something that they HOPED would make a ton of money back in a relatively short period of time.  There is, however, no way to be sure.  What does this sound like? Uh?  Venture Capital?  So, the movie industry has been doing this for a loooooong time before VCs became the Britney of finance.  Mark Ordesky was one of the LOTR producers and we have talked about collaborating on this curriculum, which would be cool. Which gets me to my next point.

P.s. Don’t confuse business model with business plan. Here is a good piece on business plans.

B. The “because it would be cool” business model.

I started the Hot Mommas Project because it was needed (See first post, and blog brief or about page).  I also thought it would be cool. People had, and continue to have, all sorts of ideas for how the Hot Mommas Project can make money. However, I am pretty much just forging ahead with what fills a need in women’s education. Exposure to role models correlates with women’s professional success. So, we provide role models on paper so the stories of those leaders can be read anywhere, anytime, free.  (Side note: We used to sell the cases, but, that was a pain.)  Family and work life balance is a HUGE issue globally impacting the supply and demand side of employment. So, Hot Mommas Project cases address the personal lives and backgrounds of case protagonists are discussed along with business lessons such as the 4 Ps of marketing and what have you.  All of this is geared to be taught in a classroom, so educators are preparing the next generation of workers with the toolkits that research – and reality – shows they need. I am not sure how we are going to make money to be honest. I’ve thought of a coaching network with exclusive access to our data. I’ve thought of workshops and conferences. I just don’t know. All I know is I’m doing the right thing by starting this initiative and I’ll let the case readers tell me what they need.

I am intrigued by the term “CLOG” – which I made up the other day – since what we are producing is a hybrid between a case study and a blog. So, maybe we’ll be the inventor of CLOGS, but, a clog we can all be proud of and not just associated with bell bottoms and unattractive hair styles. Here is a sample CLOG (the kind we are building).

Others who I perceive have a “because it would be cool” business model:

Guy Kawasaki and www.Alltop.com. Here is Guy on Twitter.  More on Alltop. Even MORE!

Peter Shankman and Help a Reporter Out. Here is Peter on Twitter. More on HARO.

Both of these guys are successful and intelligent. My guess is they don’t get involved in much of anything that won’t ultimately make scads of money.  However, at the outset they appeared very personally connected to their ventures and doing it because they though it would be cool….not just for money.  Is this true guys? I would love to know and will forward you this post.  Clearly there are big markets for both areas in which Guy and Peter are involved. Ted Leonsis, friend of the Hot Mommas Project, won’t get involved in a market under 10 million clients.

The Hot Mommas Project is involved in the education market, specifically written products which is a $15 billion dollar market globally.  Can you help us brainstorm a financial model for the Hot Mommas Project?