The Water Break - May Newsletter

The consequences of a weak business model are dire, whether for a well-established company or a startup. For established companies, failure to pivot and recognize that their business model is no longer relevant can lead to eventual failure. Meanwhile, startups that lack an early revenue stream risk dooming themselves and potentially failing due to a poor business model. The graveyard of startups is full of companies that failed to get to revenue early.

To achieve early revenue, startups should focus on executing their business model before innovation. The first step is not to raise investor money early but to find ways to generate real revenue with an early customer. Startups should work on building out their product, testing it with paying customers and adjusting based on feedback. The first version should be simple and ugly, with the focus on executing and testing the idea with early customers rather than perfection.

Startups should also focus on their first 10 customers and learn from them, gradually increasing until they have definitive, repeatable and scalable revenue streams. Early on, the founder should be the product developer, marketer and project leader, using friends, freelancers or SaaS tools if necessary. The aim should be to keep expenses low, utilize mentors and advisors and remain focused on cash flow.

Did you know that button placement actually has a HUGE impact on conversions?

🖥️ When visitors land on your desktop website, their eyes read your page in either a Z pattern or an F pattern. Different studies have revealed different patterns, but regardless, visitors' eyes do not move randomly across the page.

🖥️ Place important text and calls to action along the path that the human eye travels when glancing at a website! The most valuable real estate on your webpage by far is the top right of the page, so put your primary call-to-action here. Put the same call-to-action directly in the middle of the header as well, beneath your headline and subtitle.

🖥️ By repeating the call to action twice, even in the header, you will be letting your customer know that you are interested in establishing a business relationship and you'd like to solve their problem by selling them a service or product.

Cash flow is the fuel of every business. 

That’s why Business Made Simple connects cash flow to the Fuel Tanks of an airplane. Without fuel, a plane can’t fly. Without cash flow, businesses can’t lift off the ground. And as a business grows, finances become more complicated. 

Zephyr Business Coaching offers coaching sessions for entrepreneurs on managing cash flow using separate checking or savings accounts for the five top needs of every business. By funding these accounts with revenue, the business will never run out of cash for all the priorities.  

With the Cash Flow Made Simple playbook, business owners will know when overall profit is shrinking, know they have the money to pay taxes and payroll and know they can invest back into their business for growth. 

From our certified coach, here are some tips on how to start managing cash flow and take control of your business.

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You can generate virtual cards to use for online shopping, ensuring that your sensitive payment information is never shared with merchants or stored online. Plus, you'll earn cashback on every purchase you make. Simply sign up, link your bank account, and start shopping with peace of mind.

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In unfamiliar and high-pressure situations, it's common to default to old habits that have worked in the past, but this can lead to failure when new solutions are needed. This is known as the adaptability paradox, where we tend to react with familiar approaches that may not be suitable for the situation at hand. To successfully navigate through turbulent periods, leaders need to develop a form of self-mastery called Deliberate Calm, which involves being aware of our choices in how we respond to situations, and rationally considering the best course of action without being governed by old habits.

Three skills to develop to become more adaptable

• Learning agility: Setting daily intentions to approach challenges with curiosity and open-mindedness helps leaders remain open to feedback, learn, and adjust their responses for better outcomes. Adaptability and learning agility are critical predictors of a leader's performance.
   
• Emotional self-regulation: Is vital for leaders, enabling them to recognize, understand, and manage emotions in productive ways. Taking note of emotionally-triggering moments can help leaders become aware of patterns and regulate their responses.
   
• Dual awareness: Integrating internal (emotions, thoughts, experiences) and external (objective situation) factors involves awareness of one's feelings and situation. Emotional regulation and reflection are key in understanding what the situation requires and setting oneself up for success.

Change can be difficult, especially since urgency can create a reactive environment. Adopting Deliberate Calm as a skill can help individuals thrive in uncertain times by fostering adaptability. It is an ongoing process that requires continuous learning and practice.