1. Smart entrepreneurs invest in top talent
In today’s hyper-competitive global economy, the most critical element of success is the ability to attract and retain the best people. Getting the right people to innovate and grow the business is more important in achieving overall goals than any other part of a business plan. People are typically the largest investment a company makes, and bad hires and/or mediocre performers cost a company money, time and resources. Better to invest in top talent and enjoy solid ROI than trying to save money by hiring less than the very best.
2. Smart entrepreneurs invest in measurements and metrics
Many entrepreneurs find metrics intimidating, but they enable smart, informed decisions about their organizations. The ability to identify trends and patterns, quickly spot problem areas, and accurately determine direction before making major decisions (e.g. product iterations, infrastructure investment, raising capital, etc.) contributes significantly to company results. Successful entrepreneurs know they need to get a reasonable, risk-adjusted return on each dollar invested, and focusing on the right metrics is what makes this possible.
3. Smart entrepreneurs invest in expert advice
Most top athletes have a great coach, and so do most top entrepreneurs and leaders. How impactful can a coach be? A Deloitte research study revealed that organizations that utilize CEO coaches are:
- 130 percent more likely to have strong business results
- 33 percent more effective at engaging employees
- 42 percent higher in employee productivity
There is a lot of research to support the fact that CEOs and entrepreneurs get a great return on their investment in coaching.
Here is a great research paper from the Harvard Business Review: https://hbr.org/2015/04/ceos-need-mentors-too
And another from Stanford https://www.gsb.stanford.edu/sites/gsb/files/publication-pdf/cgri-survey-2013-executive-coaching.pdf, which says that “Given how vitally important it is for the CEO to be getting the best possible counsel, independent of their board, in order to maintain the health of the corporation, it’s concerning that so many of them are ‘going it alone,’”
You may take my advice with a grain of salt on this last point since I’m in the CEO coaching business, but there is a lot of data to correlate investment in these three critical areas with entrepreneurial success.