I’ve been trying to find the principles makes someone an effective leader. Startup Artisan is the culmination of that research. It comes down to mastering five things: Maslow's Hierarchy of Needs, Time Management, Knoweledge, Power and Influence, and Finance. If one can master these five things then they are able to be effective business leaders.
Maslow's Hierarchy of Needs
- Did you eat breakfast, vegetables and fruits?
- Did you drink alcohol today? Why?
Exercise & Nature
- Did you exercise one hour today even if you were busy?
- Lift weights the more weight you can lift the more mental weight you can also lift.
- Did you spend some time outside in a green space?
Relationships & Leisure
- Do you have good relationships outside of your work?
- Do you have an activity that you do for fun without any expectations of return?
- Time is valuable, are you spending time on things that will maximum value relative to your objectives?
- Are you delegating tasks? If not what is one task that you do that you can delegate to others with clear instructions and outcomes?
- 80/20. What 20% of things provide 80% of value? Are you spending things on the 80% that is not creating value? What can you completely remove and no one will care?
- Did you have three agenda items that you will absolutely get done during a day with clear measurable outcomes?
- Did you plan for the three items for the next day's agenda?
- What one thing can you improve by 1%?
- Are you doing fewer and fewer but higher and higher value things over time?
- Did you read a book for 15 minutes today?
- Are you reading outside of your comfort zone?
Influence and Power
- Did you give people a Why instead of just the What?
- Have you asked people to commit to the smallest things? i.e next meeting, next step, next small project.
- Are you treating other people with empathy? Remember:
- The other person is human.
- They have their own fears, insecurities, love of different things from you and aspirations.
- They may also think differently from you. Visually, Verbally, Written. Figure out how you can better communicate.
- Delegate your team's success, assume your team's failure. (The buck stops with you.)
Are you thinking in terms of the buyer?
- What is the problem they are having?
- How can we make their life easier?
- What would make them love us?
- How can we surprise them?
- Mirror the Other Person
- Be funny, positive and playful. Relax and smile while talking, even when on the phone.
- Slow Down When Speaking. Slow it down. Calm it down. Speeding things makes people think they are not heard. Listen, Don't Interrupt.
- Ask How and Why questions. (Makes them think)
- Label all bad things the other entity can say about you. It cuts the power of their criticism.
- Get the other side to say no as soon as possible.
- No is a default because people fear change. So get to no early so the other side can then be more open to your ideas. What about this doesn't work for you? It also makes them feel safe. Persuade from their perspective.
- Get them to say, "That's right." A challenger with bunch of questions from their perspective.
- Say that we only want, "what's fair." This puts the other person in a predicament of whether they are good or not.
- Don't say I understand because it makes you sound like you are not listening to them.
- Ask for help. Let them feel like they are in control
- Do you have a lot of debt?
- Can you pay off your debt immediately if you need to?
- Is your debt working for you?
- How are your Financial Ratios?
- Free Cash Flow? (Cash from Operating Activities - Cash Invested in Capital Equipment)
- Days Sales Outstanding - How long does it take your customers to pay their bills?
- Quick Ratio - Ensure that we are not running out of cash and are growing at a steady rate. (Current Assets / Current Liabilities)
- Gross Profit Margin - How can we reduce the cost of delivering our services?
- Net Profit Margin - How can we increase the revenue while reducing the cost of getting additional revenue?
- Debt to Equity - We want to use financing to grow our business but we shouldn't be over leveraged?
- Cash Conversion Cycle. How long do we have to convert outflow to inflow to have working capital?