Originally aired Saturday, August 13, 2016.

Episode 5: Avoid the Money Pit Syndrome- Investors Won’t Throw Good Money Into Bad Companies

[bctt tweet=”Investors don’t want to throw good money into bad companies.” username=”@talentdiva”]

1- Being obsolete is a danger to your bottom line. As Monster found out, when you dominate in your field from early, you get comfortable and lazy. When you see competitors coming up behind you, know that they are looking for your flaws to exploit and give customers a better way to do what they currently do with you. Having name brand clients means nothing if you’re not evolving with the times, technology and economy.

2-  Be absolutely sure of your business model and that it will generate long term revenue. If it doesn’t make dollars it don’t makes sense. Just because it worked for another company doesn’t mean it’ll work for yours or even at this time in the market. If you can’t service your customers effectively, efficiently and timely, you will lose customers and opportunities. Your company will become a money pit because you won’t be able to keep pace with the competition and it will do damage to your bottom line.

3- Growth requires investment. Without a doubt, you must invest in people, processes and products (or service) improvements. If you still have antiquated technology, machinery, equipment, etc, you’ll fall behind. If you don’t invest in improvements, investors won’t take you serious. If you don’t take your company serious enough to keep it current and relevant, and make operations more streamlined, investors won’t be as inclined to invest in your company.

4- Focus on your core service or product and get it monetized and profitable before adding spin offs. It’s only logical to add as you grow. Customers’ needs change and evolve. Tastes change. New and improved ways of doing things emerge. But if you can’t successfully satisfy your customers in a way that converts them to long term customers, the dynamic shifts from relational to transactional. You generate more revenue from relational customer base than transactional.

5-  Monetize EVERYTHING properly. I can’t stress enough that free isn’t a business model, it’s a marketing tool. And free without conversion strategy leads to closed doors. And under charging will keep you a broke brand. If you’re not constantly looking for opportunities to monetize, your company will definitely become a money pit because you’re putting in more than you’re earning from it.

6-  Pay attention to the details. Pay attention to what customers and the market are telling you directly and indirectly. Customers will let you know what they need, expect and want. The market will give you clues on what direction you must take. Don’t ignore them, or else you risk falling behind. 

 

GUEST:

No guest this episode. Just hostess Adrienne Graham talking about the issues and bringing you things to think about.

SOCIAL:
Twitter: @talentdiva
LinkedIn: http://www.linkedin.com/in/adriennegraham
Web: www.mogulchix.com and www.empowerme.org

 

In the News:

– The Collapse of Music Dealers and Music Licensing’s “Race to the Bottom”

– The disruptor disrupted: Why Monster had to sell itself to Randstad for $429 million

– Blab is dead…long live Blab

 

Noteworthy:

Arianna Huffington steps down from Huffington Post

 

Upcoming Events:

Mogul Chix is kicking off with the Weekend Intensive in Miami, FL September 24-25, 2016. Our Weekend Intensives are designed to help you solve those pressing business growth problems and get objective feedback, while helping you prepare your company to become investment-attractive. This intensive will give you a glimpse into what it would be like to be part of the Mogul Chix experience, understand what it takes to become an investment worthy company, and give you a look at the possibilities for your company to grow and scale. The cost is $899 per person, and an additional $250 if bringing a partner or co-founder. Or get a Saturday ($500) or Sunday ($300) Day Pass. Registration information is available at www.mogulchix.com/weekend-intensive/.

 

Join Us In Miami- Mogul Chix Weekend Intensive Join Us Remotely in Miami- Mogul Chix Weekend Intensive

 

[bctt tweet=”Investors don’t want to throw good money into bad companies.” username=”@talentdiva”]

 

Do you like this podcast and want to reshare? You can, as long as you include this in its entirety:

Adrienne Graham is the Founder of Mogul Chix (www.mogulchix.com), a global company and community for female founders and women entrepreneurs. She works with female-founded companies to grow, scale & making them investment ready. She is CEO of Empower Me! Corporation (www.empowerme.org), a growth strategies consultancy for high growth companies. She provides Strategic Business Growth consulting services to companies with high growth potential to assist clients in creating processes and strategies to effectively scale, run, grow and position their business for success. Adrienne is an author, serial entrepreneur and avid techie dedicated to promoting inclusive diversity in the tech, VC and startup community. She is steadily building her empire one company at a time. She is also a Mentor for the Straight Shot Accelerator in Omaha, NE, which helps guide startups into successfully launched ventures.

 

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