Предприниматель | Информационно-аналитический журнал - Part 31

What if you can not agree

Advice for entrepreneurs who do business in Russia: every euro and every minute that you spend on building relationships , you go back to fivefold .

Negotiate failed. Opponents sit opposite each other , not saying a word. They both really wanted to close the deal , but both realize that any alternative is much worse than the agreement . None of them is not ready to compromise , without which it is simply impossible to make a deal . Nobody wants to take the first step , because it is the inheritance of the weak. But in this situation, there is a way – to understand why failed to agree .

There are three reasons for which negotiations could come to a standstill . First, this process is devoid of what is called in the language of negotiation ZOPA (zone of possible agreement – zone of possible agreement ) . Secondly, the parties do not trust each other . In – treth , each side hopes to weak opponent.

You can find a way out of any of these situations , you only need to understand the reason .


If initially absent in negotiations ZOPA, it means only one thing: one of the parties has better deals. Simply put, the A side is willing to pay less than what the party is ready to accept V. In this case, party B knows that he can get a better offer from another person. To avoid this situation , it is necessary initially to understand whether there is in these negotiations zone of possible agreement . To do well to explore the market and gather as much data about these transactions took place in the past. In addition, you can just ask your opponent what the minimum amount he would get . This will help to understand whether there is in these negotiations is the same ZOPA. If you find that it does not, it is better not to start negotiations . If there is an area in the negotiations of a possible agreement , but they are still at an impasse , it is for another reason .

Talks in Russia

In Russian culture, negotiations evolved over centuries. And if you want in the shortest time to achieve the desired result, you need to know all the features of a culture of negotiation in a particular country . Was the case when Japanese investors attracted companies in Silicon Valley in the United States . But negotiations between the Japanese and Americans were complicated by the fact that none of the parties not only know the language partner , but did not understand his gestures and facial expressions and ways of decision-making. All I knew Steve Jobs – that’s what the Japanese agreeing to a compromise , thus showing their respect for the opponent. Steve Jobs did not wear a suit to the talks , as did all the others, he came to the sweater. And he did not start a conversation with the amount that he was interested in the fastest and quite uninteresting with neither side projects. For a half hour, he heatedly discussed these projects that surprised and irritated tormented Japanese. Then he went out for 15 minutes. And when he returned, he began to compromise with the Japanese, renouncing all projects that have so long and diligently defended until the conversation did not go to the extent that it is so interested in it . The Japanese were glad of this, and so quickly agreed to provide the desired amount .

In the U.S. and Europe the culture of negotiation is almost the same . Both the Americans and Europeans are confident that relationships with people – this is the tool that helps to earn money. They do not like to spend a lot of time building relationships with a partner, and the deal they have is for one or two meetings . For Russian entrepreneurs is simply impossible. Russian is very important to build relationships first , and then move on to the figures and transactions. The advice I always give to entrepreneurs who plan to negotiate in Russia is such that every minute and every euro invested in building relationships , return to fivefold . If no time, and the relationship is not established , it is necessary to turn to a third party. This can be a lawyer , or just a friend who can help to make a deal .

Compromise – this is for wimps ?

It should be remembered, and the third option – the so-called tactical stalemate. It happens that the opponents in the negotiations already know a lot and therefore trust each other . Furthermore , it is clear that the negotiations have ZOPA. And still worth negotiating process . For Russians, this situation is worse than any other : the Russians often mistaken for weakness compromise , and if the negotiations reach this point, then the game starts , ” who will blink first .

“In such a situation there are two solutions . First, the first step you can do . If you care to make a deal than the fear of ” losing face ” , say: ” I would have agreed to reduce the price by 10% if you … “. Then follows a proposal that would give you an opportunity to throw off the 10 %. This will help to bring the negotiations deadlock. In addition , you will understand whether your opponent is ready to go on any compromises. The second way – to change the situation , where the negotiations . You can transfer the round table , invite a cute secretary , treat your opponent a good dinner , or vice versa , go to a small room where only two chairs and a bottle of water on the table. This will help you a bit more control over the situation and continue to negotiate further .

How to earn income on the packaging

One day ahead of the tractor on the highway in Nevada , Michael Enos noticed lying in the sight of the boats , which were packed in white shiny plastic . As he recalls , such packaging is very interested in him , and he promised himself to get the same for your boat .

It was in 1993 when 26 -year-old Enos just started his own business – the company Johnny on the Spot, which was engaged in that rented out mobile toilets . And he used the boat on the weekends when traveling to hunt ducks. He tried to find such a package across the city ( he hails from the city of Reno, Nevada ) , but the search yielded no results . Then he bought shrink film , spent $ 2,000 on tools and only the eighth attempt managed to do the same packaging. It took three days.

And only 14 years later Enos remembered the interest that caused his trailer packed with boats. Then he sold his business and launched a new project – the company Fast Wrap, which is engaged in the production of packaging. It all started with the opening of six branches, and two years later the network Fast Wrap totaled 64 points packages throughout the United States . When we pack can be anything – from child to watercraft octopus for water parks . This year, Enos expects to receive $ 8.6 million in revenue , while , as in 2009 , the figure was $ 1.3 million

Before you open a business , Enos studied at taksidermita and for seven years engaged in the manufacture of stuffed hunting trophies – foxes, bears , marlin . At first he wanted to do video rentals . But when he learned that the founder of Blockbuster Video began with the fact that garbage collection, Enos decided to use their strength in the industry waste Pumper. Then he saw an advertisement of mobile toilets and immediately contacted the manufacturer to find out the price. He spoke with the owner of the enterprise Sanson Clyde , who told him that you can get all the details just arrived in St. Louis. Already after 12 hours Enos was in place. Seeing him, Sanson , hlovnu his knees , exclaimed: ” Wow! “.

Then he decided to assist Enos , giving him 300 mobile toilets , which had to take $ 100 per month for each . Then Enos earned $ 30,000 . Soon after , he sold his business , which earned him $ 5 million An avid fisherman , he bought a boat and went to Cape San Lucas on the hunt for swordfish . But soon he became bored with this lifestyle . Nine months later, Michael remembered with boats and trailer package, which he was producing . Then he realized that he was too young to have a rest, and decided to begin his own business again .

After analyzing the market shrink packaging , Enos found it empty niche . Then were either very large companies like Global Wrap, dealing exclusively with global projects , or small firms , like ShrinkOrSink, who were engaged in packing boats. Michael realized that can pack anything from motorcycles to entire buildings. Could sell the franchise worldwide. So a company Fast Wrap.

As Michael says to pack a 12-foot catamaran and the building of 20 000 square meters. m area need the same materials : industrial dryer and not very tightly with plastic wrap . First object wrapped with film , which is heated with a hair dryer , causing it to shrivel .At the end of the 1980s . Fast Wrap took packing buildings. Earlier for shelter construction sites used canvas or plastic film of Visqueen. Shrink film is much easier to seal . Inside the building , packed with such a film is easy enough to maintain the required temperature , and if the money to build an end, it is possible to preserve it . Global Wrap also engaged in the production of tents for various sporting events and holidays.

Enos used film gives us Up North Plastics, which makes plastic sheeting and garbage bags . He pays part of the costs of shipping UPS customers so that they can return it for processing .

How much revenue it receives ? Pack 20 – foot yacht can two employees ( $ 15 per hour ) , it only takes one hour and $ 25 for the film . For the client the cost per foot of film is $ 20 . Cost of this package is $ 55 , and the client receives a bill for $ 400 . Large projects receive more income . For example, one franchisee bargained packing hospitals Kaiser, which is located in California . Area Hospital is 22 000 sq. m. m , the cost of such a package – $ 40,000 , the transaction value of $ 250,000 , but in the end – a considerable profit.

Doing this business does not require any additional costs other than insurance that all franchisees are obliged to buy on-demand Fast Wrap. Since this business is working with movements , and tools and plastic can be transported in wagons , to open a branch of the company can be in any part of the country . Garth Harris, who is the franchisee Fast Wrap, working at home , and all materials and tools kept in the garage .Enos also works in a large office building with total area of ​​550 square meters. m, in addition to which is open and a large training center . In his company’s 16 employees , including his 64 -year-old father , Richard , holding the position of Managing Director . According to Enos , the discovery of cost him $ 750,000 , which he used his savings , but a year later returned the entire amount.

Since April of 2008 Enos began selling franchises , which cost $ 144,000 for a single franchisee. The money enough to buy tools , film , truck license. License fee is $ 30,000 , and it includes management , marketing materials , and training for one week . Also, the coach is going to Fast Wrap franchise to within one week to help him in starting a business . Paying $ 35,000 can qualify for the service areas where the population is 600 000 people. 6% from each sale – this income Enos .

Now Enos may already work in Canada , he also wants to enter the market of Mexico, Turkey and the UAE. He plans to sell five thousand years deductibles.Anthony Serafin , president of rival Global Wrap, do not believe a single word about franchises online Enos . According to him, he still experienced enough to realize such large-scale projects . For example , such as packing houses damaged by Hurricane Katrina in Louisiana , which held Global Wrap.

And small business owners believe that packaging such simple items like boats or furniture, license and do not need . Owner Euroglass Mobile Shrink Wrap Neal Lawson argues that Enos just creates a lot of noise about nothing . Yes and training , and license fees , which conducts Michael is not worth the money .

But Garth Harris did not agree with him . It has already received $ 110,000 , which invested in the project , and now plans to expand. His business is growing steadily , and he gets not only small orders , but such as packing two hotels in Las Vegas , which was not completed due to lack of finance.

Michael himself is confident that his business is unique , as no one does anything that they do. “I’m doing more and better ” – says Michael .

Four secrets of successful negotiation

Tips Business School professor Skolkovo on how not to allow the enemy to seize the initiative .

Remember how beautiful woman in the store, begged you to buy something that you do not need . There may have been situations where sitting in a stuffy room , you had to make an important decision ? Or maybe you went to a meeting where instead of one met three gloomy opponents? If your life were such cases , it means you gave the enemy an opportunity to seize the initiative . The first rule of negotiation – do not let it happen again !

I should say that advise something to negotiate – it’s almost the same thing and create a PowerPoint presentation on how to learn to ride a bike. But still try .

To keep the initiative on your part , you need to follow the four rules.

First, you are mistaken if you think that you know everything , because never have enough information. Neither leader does not lead his army into battle without having studied before this number of the enemy and the terrain . In the age of social networks and search engines information about the person becomes available to everyone. But this should not stop . Even before the start of the negotiations you have to understand what awaits opponent , and how important it is for him that agreement . Well aware of what motivates the opponent , and what is at stake in both of you, you can have more control over the situation.

Secondly, you need to plan negotiations. Do not be afraid if the negotiations have to change it . And change it will likely need ! But in the process of negotiation , you can celebrate the decision for themselves different questions : information gathering, building relationships , getting alternative proposals to establish a framework of price , etc. Only novices tend to close the deal . But this is not the only goal , because we can always do better.

Thirdly, we must control the situation . Engage the organization process. In what way will your negotiations – in the restaurant, in the office, at the round table . Decide on the negotiating parties – it can be like talking one on one, or they may be invited other participants . If you want to show that you have other suggestions , make sure that potential buyers to call you several times during the meeting. How long these negotiations will be conducted : one or a few days? If you want a bit of pressure on the opponent , invite to a meeting with your lawyer is willing to contract. As practice shows, in the negotiation process achieves great success the party that organizes .

Finally, the fourth rule – no less important than the previous three . Always write all the agreements reached during the meeting . It happens that the most important thing to forget , or not memorize what your opponent remember : different people have different interpretations of what was said. No need to get your opponent signed a document , it is important that he agreed with everything in it stated. Do not forget : the control in the hands of someone who takes notes .

How to succeed in the negotiations

Pro Tips

Operation of any head is half of negotiations , the outcome of which depends on the success of the company. Professionals talk about how to make the most productive negotiations .

Vice president of IBM’s Inna Kuznetsova

– Collect information

Carefully collect the facts , because of this very often depends on the success of negotiations . As a rule , the party prepared better , you win just because the reasons given on the basis of facts and figures , much more effective and convincing.

– Pre- define its position

The position should be formulated in advance : it is important to specify not only what results you want to achieve , but also on what conditions are ready to conclude an agreement . If you are negotiating about working conditions , it is necessary to determine for themselves what wages you want to receive a minimum payment in which you agree to work , what kind of vacation , schedule or stake you are satisfied , moreover verify their relative value.

– Understand the logic of your partner

Based on my experience , I can say that the most effective approach to negotiations is to understand the logic and causes of action partner. Many people think that in all the negotiations that do not get you , your partner gets . In fact, most of the negotiations resemble a parable about how a brother and sister could not share one orange until it found what it was needed for each of them. As a result , it turned out that his brother wanted to squeeze the juice , and my sister wanted to add orange zest to the filling of the pie , although it was possible to satisfy the desires of each of them without unnecessary disputes.

– Prepare a “pocket question “

There are many methods of negotiation , for example, “Pocket question ” to be decided almost on the fly, when both parties are tired and want to quickly complete the process. Imagine that lengthy negotiations have been completed and your partner are ready to say goodbye. Hardly, he wants to argue if you casually think about such trifles as the preparation of a press conference on the launch of the project . Thus you will be able to improve their position.

– Take into account the entire company

Negotiations are always conducted on the basis of relations between the two sides . There are situations where it is necessary to conclude a single transaction , there is a lasting relationship , and sometimes it is necessary to conduct negotiations within the company. Sometimes attempts to improve its direction can harm the entire company just because one of his colleagues was more adept at negotiating . It is important to be able to look at the whole situation through the eyes of senior management and to improve the situation in the whole of the joint efforts , even if it may slightly degrade the performance of one of the branches .

Team leader for the training and development of KPMG, a business coach company ” Oratorika ” Alex Peshekhonov

– Be ready for any top”

We have received more lucrative offers from other companies,” – this phrase uttered at the beginning of negotiations , can unbalance . Unfortunately, this technique is a very common way of manipulation during the negotiations. Opponents tend to hide their emotions , trying not to betray himself, so to find out if this is true or just a bluff, it is very difficult . Best answer something like this: “We have also received other offers, but let’s discuss further opportunities for the development of our relations .”

– Know how to be silent

Silence is one of the powerful weapons negotiator , which allows us to weaken the opponent’s position and go for a more favorable concessions for you . But it is important to know when to pause and when to make a new proposal.

– Respond quickly

You should always know by heart all the clauses of the contract , to be able to quickly respond to the actions of your partner. In addition , it will allow you to quickly make the right decisions . If necessary, change the terms of the contract , but do it quickly.

– Learn how to count money on the go

Professional negotiator should be able to calculate the financial impact of all concessions in price and the variables . Therefore it is very important to always remember the cost of the transaction and competently carry out a ” price negotiations .” Try to go to solve the following problem: “Your margin products in this group is 20%. Buyer asks you discount 2,5% on invoice and the same amount off invoice. According to the plan increase in income will be 18 %. What will be your decision and what the maximum discount you can afford ? ( at the end of the text provided the correct answer ) . ”

– It is important to have a trump card

Your negotiating partners will immediately feel when you are in doubt . ” And if the parties fail to agree , then what? “. If you do not know the answer to this question, doomed to defeat. In this case, do not even begin to negotiate! You must be a trump card . It is this card is an alternative to this agreement.

Independent expert on business development Denis Zapirkin

– Prepare a negotiating strategy

Try to anticipate the opponent’s actions depending on your behavior , ask for this question, “What if .. ? “. It is important to prepare a number of options out of the box in case the negotiations go beyond the limits. This will be helpful in the event that your opponent wish to make significant changes in conditions , or if the negotiations reach an impasse .

– The opponent should be aware of all the benefits of a deal with you

Most advantageous situation when your opponent before the start of negotiations is aware of the benefits of signing an agreement with you. There are effective methods of ballot box stuffing information ( analysts’ opinions , authorities , information about the situation on the market or in the right environment) , predictive information, creating a background risk , fear or positive, the correct formulation of subdivision and leading questions – it all depends on how you need to direct the consciousness and sensations opponent.

– Hold negotiations in an atmosphere of mutual trust

The most important in the negotiations is the control of openness and trust between the opponents . When the opponent feels threatened or impairment of its interests tenses or guards, he hears worse and perceives you , and sometimes disabled. To bring it out of this state , you must take a step back , or go on a long-planned assignment or take a break in the negotiations , during which to apply the methods of soft power .

– All register the results in writing

During the negotiations, it is very important to record all results (even intermediate ) . Such a protocol ( key issues , plans , decisions , opinions and subsequent steps ) should be agreed with all stakeholders to give their comments or clear evidence . Should not translate this process into a long discussion , otherwise you will never come to a particular decision. Typically, this situation indicates unDeveloped interest or hidden conflict.

* Correct answer: The proposal purchaser can not agree ! Total discount at the planned increase in revenue of 18% can not exceed 3 %.

The real entrepreneur should burn eyes

Founder “Sbarro” talks about the five signs of the businessman.

The main tasks of the business owner – to be able to motivate employees , inspire new projects coming up with new ideas as well as to assume all risks associated with the business. For me it is always important to meet personally with the owner who is interested in buying a franchise in our restaurant to determine whether it has potential. There are also cases when we deprive the entrepreneur the right to our brand , but lately it happens less . For example, one of the owners of the franchise for the city did not want to develop the network , as he had enough and one point. The other did not want to carry out our instructions : not built production line , the products are not so cheated , he supposedly lacked margin . As a result, I have identified several types of people , which I am willing to give the franchise – that is, evidence of these businessmen.

Desire to do business

There are entrepreneurs who expect the franchise much more than he can give them – they think they have enough to give their money , and someone will build a business for them. Often that come to me and mediators say there wealthy man who wants to buy the business for their child. And when I ask where the child , get the answer that he is studying abroad . In such cases, I always refuse because I need someone who has the desire to do business.


Well, if a potential buyer of the franchise already has experience in trade or any other business and wants to strive to create something big . Typically, these businessmen are very practical – they carefully calculate what to buy frashizu much easier than to come up with the concept of his restaurant. And then when they have had enough experience Sami start to think and run their own concepts , because they understand that capitalization can grow in both businesses.


The real entrepreneur eyes burn . I always try to determine what motivates a person , what motivates him . It happens that the young come that differ considerable tenacity. If a person has no desire to become a millionaire, I have nothing to talk to him , because neambizioznye not achieve anything.

Structural thinking

I always appreciate , in the case if the potential buyer says and how it is structured speech. If he did not specify what he wants to talk hard. Some promise that for the year will open 50 points. I ask why this figure , where employees take and ready to invest in marketing.


A person must have some principles . What do I mean ? I would not own the restaurant holding , if not go on principle 15 years ago. Then I had my own business related to import-export – I had food warehouses and distribution of 800 points in the capital . Then I already knew how to make money. But I wanted something a little more civilized , network .At first I thought about the stores , but eventually decided to open restaurants . Together with his brother , we chose a franchise Sbarro. Then I was 22 years old, had the money , but the Americans were very difficult to prove that we can trust the brand. But we are persuaded. In the first point , which is located near the ” Three Stations ” then we have invested $ 2 million all was in marble and looked pompously : Now the same area we build restaurants are much cheaper. Then in 1998 came the crisis . And we have all been in the currency . ” Dunkin ‘Donuts ” and ” Pizza Hut ” turned their business. What was I in comparison with them ? Then I was a newcomer to the restaurant business , and our partners are overseas, because it was not consult with anyone. But I was determined that this business is not going anywhere. Whether pride , or principle. Already in December 1998 , we opened a second point in “Manezh” . Then lost a lot of money each month had to report $ 200 000-300 000 out of pocket : $ 2 pizza we had to sell for 60 cents .

Employees see that every day I was in the restaurant as I was rooting for this business, supported by saying that it is difficult , it is possible to work without a salary and understood what the situation . Each of them had been enthusiastic. I chased outputs , we have to buy more local products , to listen more to customers . And we managed to survive. I think this is due to the iron will and unwavering firmness.

The Ministry of income and fees: Evidence for a single tax payer canceled

On the basis of the law number 657 -VII ” On Amendments to the Tax Code of Ukraine concerning the recording and registration of taxpayers and the improvement of certain provisions,” which was approved by the Verkhovna Rada and dated 24.10.2013 , the testimony of a single tax payer is replaced by the “registry single tax payers ” .

That is , the evidence of single tax is no longer necessary, for example when calculating with legal entities or testing of the supervisory authorities.

However , we draw your attention to the fact that from 1 January 2014 to increase the responsibility for violating the terms of the simplified system.

Register and make changes , or change in the system of taxation for the business entity with simplified the total will be carried out by making the necessary changes to the registry.

Recall a single tax payer certificate will be canceled January 1, 2014 .

How to overcome stress

How to keep the line between obsession and passion and what to do if this limit is already worn off .

Stress – this is the human condition, which can not even say that it makes you stronger , so far does not kill .Stress makes a person weaker results in human errors , which are often fatal. But the most unpleasant thing is that stress is an integral part of the work of top managers. It is a kind of occupational disease of those who put career and success at the forefront.

I do not believe that stress can be combated . The only way out of a stressful situation – to rethink their attitude towards work and life in general . For example, I am familiar with these top managers who think too hard about their responsibilities to shareholders, employees , managers , do not give yourself the opportunity to relax , rest and think about something other than work .

The boundary between passion and obsession go very easily. And we are not talking about the fact that almost every top manager who seriously busy with his career , does not keep a balance between personal life and work , and that there is a difference of effective and ineffective efforts . After all, there is a considerable difference between what a person sits up to night work and working on the weekends before the surrender of an important project or the conclusion of an important contract, and when he does not give himself a break from the corporate correspondence or internal reporting . You can not turn the work into a form of self-torture .

Everyone knows that to bring yourself to a state of complete deadline is very easy : people constantly running, but the time to the most important things he still does not have . According to John Kotter , author of many books on leadership and a professor at Harvard Business School , it is called a false sense of urgency. In this state, a person always has to choose from a matrix Eisenhower less important but more urgent task.

Everyone is different and everyone has their own way to observe the harmony between work and personal life. I identified myself to the following principles :

1. Build your schedule so that as little time was spent on solving minor problems , and solve important issues before they become urgent ;

2 . Maximum engage in any business ;

3 . The principle of balance of life should be an important task, both in life and in work .Of course, not everything is always so perfect , but it helps me to avoid stress and not to choose between personal life and work.

To prioritize

It’s not that hard to get rid of the need to carry out urgent but minor problems: they must be delegated to subordinates , and those that remain unresolved, distribute , so that they do not take the time constantly . For two things are necessary : the presence of a good team and the ability to trust the people with whom you work. If readers are interested in this topic, I can tell you about it later in more detail.Must learn to identify the strategic issues that will be addressed only you – this is one of the first de , which must be met before you begin working . In fact, time management and prioritization are very interesting and challenging topic to which I will return to my new column .

Concentrate on the task

The maximum focus on the task at hand is not just a question of management, as a matter of psychology. It is not easy to maintain a continuing interest in any occupation . It is important to analyze the past and predict the future, but to give it too much time and effort is not worth it . I always try to remember that today – the main day , the thing that you are busy at the moment – that’s the main thing , the person who is in front of you – the main man . From my colleagues I demand the same . That is why our meetings are usually not boring. We try to talk as little as possible about the past silt future if it is not connected with the present. The main theme for us – the urgent needs, capabilities and results that can be achieved today. And it’s really interesting.

Do not become a hostage to the mood

It is important to learn to manage your mood. After all, if you yourself are boring , everything can not be interesting. For example , consider the problem Monday morning. Everyone is familiar: bad weather, you do not get enough sleep , a meeting or a meeting is very boring , does not reach the result , and you are sitting sullen , not fully awake and realize that there are two options : you can agree to these terms and the rest of the hour , and even day to spend in such a counterproductive state or shake , laugh , joke and offer ourselves and others a different view.

If you have any ideas or interesting experience in this matter , I will be happy for your comments .

Three mistakes new entrepreneurs

The lack of competition , global scale entrepreneurs and other errors at the start, which deterred investors.

In business, the correct positioning of your project is no less important than leadership.

“We have no competitors”

Hear a phrase from the owner is not very nice. After all, you should always keep in mind that the indirect competition exists in any case , in the form of any substitutes. When they began to appear automatic teller machines, indirect competition made ​​them scratch cards . Delayed competition is always : we need only will a new interesting product or service as soon as they appear imitators , pull out a piece of the market. As we began to work with one interesting project on the Internet, I have agreed with the investors, the feedback has been good . However , that is inherent in venture capital , the negotiations drag on for a long time , in this case for three months. During this time, the internet has appeared several projects that were different except that the registration and list of partners .

Often, we offer our clients an exercise in kontrpozitsionirovanie client must tell the difference between Sanchez in his business and business competitors. The best response was: ” Our company produces the same as Siemens (Bayer, Adidas – you fill in ), but we can do it in one and a half times cheaper and twice as fast ! “. If the employer can not distinguish between its rival project to the project , the investment is risky.

Income in 17 years

The ability to position itself not only useful in terms of competition . The entrepreneur must place their project in the chain from research to the final consumer, which will bring the greatest benefit to him . One of our clients came up with its own technology and a unique set of instruments designed for remote Upper Air Intelligence , explores the changing electromagnetic field of the planet. Was created and was successfully tested a prototype of a mobile station exploration sized to accommodate all of the equipment in the cargo compartment of medium-range airliner .

We were surprised that we submitted a business plan for the project justified the need for the construction of the plant for the manufacture of devices , opening an office under a development center in the capital , the purchase of 20 Boeing 737 aircraft and the opening of offices for the sale of services of geological exploration in the South- East Asia and North America and Western . By calculations of the project was to be paid back over 17 years , it does not take into account the cost of operating aircraft. It is seen that in one project connected science , services and manufacturing. It’s not always reprehensible , but there is one ” but”. According to our calculations of the production complex of the supplied components that will be collected in rented premises , and the lease / sale of equipment to large companies will go out for 12-14 months to break even . Then the owner changed the positioning of the project and received investments from the second fund, which we sent it .

No one will embrace the immensity

No one will embrace the immensity, so you should immediately determine what exactly you want to do : bake cakes and sell them , to make dental implants or to install them . Of course, many big businessmen like to create a vertically integrated production and distribution companies , but this can not be the subject of venture capital investment . And even such a business should be carefully positioned , highlighting it profit centers and cost .

In our experience, there was a case when one losing depot , owned a large retail chain has become a subsidiary received its share of management , a set of safeguards for the main company , and the right to provide commercial services on the open market . Less than a year earlier , this loss-making company has turned into yet another profit center holding. Sure, and the capitalization of the entire group of companies has increased markedly. It is not needed to attract investment, issue certificates of business processes for compliance with ISO and buy new company.

How to identify a bad strategy

Experts cite other people’s mistakes

Often, the company says in its new strategy , using high-sounding phrases like ” We will provide our Clent perfect service”, “Every year , our earnings will continue to grow “, ” Very soon, we will become an international company , and our costs are decrease every year for so many . ” Author of the book ” Good strategy , bad strategy ,” Richard Rumelt argues that these are not all of announcements strategy , and in themselves they represent a bad strategy.

What is the difference between a good and a bad strategy

After analyzing the work of many companies , Rumelt has identified some factors that should be avoided . Here are some of them: high-sounding phrases , not confirmed any actions lofty goals without specifying how they will be achieved through a lot of priorities and goals are not mutually compatible . According Rumelta like of announcements can be complemented with beautiful figures. The reports of Enron, known for its unsuccessful history, have always been the presence of such beautiful words and numbers that sort of confirmed the plans and strategy of the company . Thus fell the fact that the markets for products of Enron’s very different from the markets for electricity and gas.

It is not enough to be able to reject a bad strategy , you need to be able to see and horoshuyu.V good strategy always three elements: an indication of problems to be solved , how to solve this problem and the list of actions that the company plans to take. As to the first part , everything is clear : it is necessary to outline the range of actual and potential problems in order to find out which of them can be critical for the company . However, determining what zaklyuyaaetsya winning strategy , as it is difficult for people from the outside, but also the management of the company . Therefore, students in the MBA courses are always invited to complete information about the company , from the person of the head and ending with the situation, which at the time was on the market. So students need to figure out the factors that can be both successful and vice versa – to cause problems. After all, it is often such that companies did not mention what she puts any of the mission or in the strategy.

Take for example the slogan of Wal-Mart, which reads: ” Save money , live better.” The company is committed to expanding its network of stores in those places where the discounters have never been . A key element of the strategy is not in the location of individual stores . After all , even the most distant from the retail person is aware that in the village where very few people, the demand for products is much lower than in the city. a key factor in the strategy of the company is exactly how the chain stores : as a network of so many small shops , the distribution of goods between them becomes much easier, and it allows you to beat the competition . Most importantly, this strategy is not easy to copy , because open up a whole chain of stores is much more difficult than to open one store .

The risk that can be avoided

In the book “Choosing to be a great ” Morten Hansen and Jim Collins rassakazyvayut of those strategies that have in the past led the company to success , or , or provalu.Samye successful companies they called 10Xers, are included in this list of the companies , whose business has grown over 15 years 10 times. In this case, were taken into account only companies that were clear strategy and well aware of their plans.

The process of development of these companies authors equate the marathon length of 20 miles . Only properly calculate the forces , it is possible to overcome this distance . That is, you first need to rely on yourself , and then to external circumstances . At the front of the screen than it is in those cases where the circumstances are terrible, and when they are favorable . Also, Hansen and Collins in his book, describe in detail how to care company Southwest Airlines to manage the development of their business. Annually route map of enriched only 4 of the city, despite the fact that hundreds of cities were interested in it. And when washed over the crisis , Southwest Airlines has flourished .

It turns out that the difference between ordinary and successful companies is that the latter can anticipate tough times . And if you act on a ” take risks and to act quickly in order to succeed ,” you can very quickly come to failure. Therefore, the authors recommend beginning businessmen remain “constructive paranoid “: it’s better to measure seven times and then cut off, to avoid their full potential , and to always think about what could go wrong .

If you want to experiment , it is best to do so, even in the event of failure , you will not regret it . Do not try to follow new ideas , no matter how promising they may seem at first glance, better use the old but proven methods. Bill Gates does not work on Windows prekraal even after the market has its OS2. Steve Jobs has approached the question of chain stores with considerable accuracy. And if you want to act quickly , it is excessive or samondeyannost or herd instinct . In such cases, svegda stop yourself and try to be a cold and calculating strategists .

Statistics and intuition: how to make decisions

The disadvantage of most start-ups is too optimistic in planning future development.

Can I make decisions , relying on intuition ? According to recent studies , when making decisions play a significant role emotions and from time to time, these emotions can help in decision making – while fighting fires , surgery , or in the choice of the artist to the gallery. But always rely on intuition is very dangerous for beginners in business , as it can lead to the collapse of their business .

The fear of losing something interferes with something to gain

Daniel Kahneman , a Nobel Prize , in his book “Thinking fast and slow ” describes how the intuition : that which intellectual methods used by the people and how the mind processes information , creates connections and forms conclusions. It is these relationships that we believe true, often lead to failure.

In one of his works of Daniel Kahneman and his colleague Amos Tversky argues that because of the fears that are inherent in the human brain , any loss becomes more important than the possible acquisition. As a result, most of the people rather than be guided by mathematical calculations to determine their chances , refuse to submit to them an opportunity. According to studies, when the importance of the event was defined as 95% of people rated it an average of 79.3 %. At what people often overstate the possibility of events , almost unbelievable , and were willing to pay a premium just to protect yourself from them.

Errors in Statistics

Many people make the mistake of relying on statistical data collected by examples of small forms. Kahneman in his work gives it the name “mystique of small numbers ,” explaining that the errors in the statistics occur much more frequently in the calculation of the common parts . For example, according to U.S. government studies , the students significantly smaller schools do well in school compared to their peers who are enrolled in large schools. But were later carried out more in-depth studies that refute the previous findings.

You can test yourself by answering the question: In which hospital is more likely that one particular day the light will be more than 60% of the boys – to the hospital, where every day 15 children are born , or the one where the light appears 45 children? A similar study conducted journal Science. The correct answer is – more chances in the hospital , where every day fewer children , as in the one where they were born more , averaging effect is much higher.

lessons of success

However, talking about the statistics should not be when people do not take it at all. According to official data, in the USA, the main drawback of most start-ups is too optimistic in planning the future of the company, even when statistics belies this optimism . Restaurants open where some had already been closed . Project managers rarely take into account the data on the same project opened in the past , because each of them is sure in their uniqueness.

Thus , people have resorted to generalize in those cases where it is not needed . Statistical concept of regression to the mean number is a phenomenon where improbable events are equal to the average indicators. Luck abruptly ceases to accompany people , poor results are getting better , and good – worse . People tend to attach much greater importance to accidents than they deserve. Analysts are beginning to learn of the unexpected success , look for the causes of success and make predictions for the future, not taking into account the fact that the statistics for single indicators always contains such a term as ” outliers “.

What follow

As proved by researcher Philip Tetlock , long-term forecasts compiled by experts tended to be worse than random selection . Experts are analyzing the current situation , for example, the head of the company ‘s strengths , or performance of the management team , but to predict the company’s performance in the future they can not. They use only the facts , to replenish their own assumptions. According to Tetlock , the only difference between them and ordinary people lies only in the fact that the former are more confident in the accuracy of their forecasts and are always prepared to justify the mistakes committed earlier in forecasting.

So what is to be guided in making decisions ? Of course, you need to take into account all : stats, previous experience and external data . However, to get involved in the facts and figures is not worth it , because it can lead to collapse. Jonah Lehrer in his book “The Moment of solutions ,” says that as soon as the human brain becomes full of information , it begins to rely on intuition rather than logic