Entrepreneurs live with uncertainty, especially in the early days.
They deal with an uncertain future, unpredictable cash flows, uncertainty about how long new employees will stick, as they strive to find product-market fit and become profitable.
But entrepreneurship does not have to be an ordeal. There can be some method to the madness.
To make their journey enjoyable, entrepreneurs should try and find some ‘certainty’ anchor as soon as possible.
There are several levers an entrepreneur can pull to build this certainty anchor.
One of the best levers is a repeatable sales system.
To build such a system, you need to create an ongoing lead flow. Once a lead is in the funnel, the conversion should not be dependent on the founder or a leader. Anyone with a basic sales temperament should be able to understand the system and make a sale.
Service-based businesses can use long term retainers as a certainty anchor. They work better if the profit margins are healthy. Aim for 30% profit margin, after considering all expenses.
The best kind of certainty anchor is growth. It is not so obvious, but if you build a system for growth, you can get rid of a lot of entrepreneurial pains. To build it, you need to do more than just building a sales system.
You need to work on pricing, positioning, templatization of business process for reduced effort, hiring, team building, client retention, culture building, operational efficiencies, ROI tracking and more.
As an entrepreneur, your goal should be to find customers, build some savings, achieve these profit margins and invest in building the growth system as shared above as soon as you can.
Have you built a successful business? Then I’d love to hear from you on how you built your certainty anchors.