When faced with negotiations, people will sometimes “see how negotiations go” before figuring out what they will do if an agreement cannot be reached. But doing so will put you at a disadvantage.

Always Fully Develop Your Best Alternative Before Negotiating an Agreement

Without exploring the alternative ahead of time, it is easy to both overestimate and underestimate the impact of not reaching an agreement, especially in the heat of negotiations. If there are multiple options, you may start to think of them in aggregate—even though you can only choose one option—which will make the alternative seem more appealing than it actually is. On the flip side, the unknown elements may make the alternative seem worse than it actually is, which can lead you to make concessions you will regret later.

Only by having fully developed the alternatives can you make the best decisions in a negotiation.
– The Startup Daily

MBAs and entrepreneurs use two very different approaches to solving business problems, and each has its place. When the goal and each step that must be accomplished to arrive at the goal are known and can be planned sequentially, then introducing a strictly defined process will reduce errors and avoid surprises. This is where the traditional MBA excels.

Entrepreneurs, however, are looking for anomalies, not trying to reduce them.

When There Are Many Unknowns, Process Hinders Progress

An entrepreneur’s plans are made and remade as new details are learned from each interaction with the customer. The solution and each step to arrive at it must be kept flexible, allowing for improvisation without penalty.
– The Startup Daily

People have a tendency to use busyness to prove to themselves and others that they are productive and dedicated to their work. But is all that work really adding value?

Over time busyness becomes a habit. Keeping busy with little things becomes an excuse that allows you to avoid focusing on important long-term goals.

Set Aside Blocks of Interruption-Free Time for Planning and Reflection

Strategic thinking requires that you slow down, clear your mind, and take a break from interruptions and endless minor tasks.
– The Startup Daily

Since the beginning of the Industrial Age companies have been focused on marketing one-size-fits-all products to the masses. The more generic a product was, the broader its appeal was. But people don’t want to be generic.

The Mass-Market is Shrinking as it Becomes Easier for People to Find Unique Products

When you are marketing to everyone, you need to have the loudest message to be heard by anyone. By narrowing your focus you can zone in the aspects of your offering that a specific type of customer is extremely passionate about. These customers will be happy to spread your message to other like-minded folks for you.
– The Startup Daily

As a manager, you will be tempted to intervene when you see an employee who is about to fail. If the risk is not high, it is often better to leave them alone.

Let Your Employees Make Mistakes So that They May Learn from Them

People learn better from their own mistakes than from being told they are making a mistake. When you interfere, the employee will no longer have ownership of the situation. A good manager must strike a balance between controlling and ignoring.
– The startup Daily

Everyone suffers when a jerk is allowed to join your organization. Even if the employee in question is a star performer, don’t discount the effect they will have on the other employees in your company. There are hidden costs associated with a hostile work environment.

A Single Hostile Employee Can Turn a Culture of Collaboration into a Culture of Fear

Hostility can lead to an environment where people are more interested in pointing fingers than fixing problems. Employees will be unwilling to experiment with new ideas for fear of humiliation and ridicule. Innovation and creativity suffer when employees actively avoid the spotlight.
The Hidden Cost of Hiring Jerks
November 7, 2011Volume #222
Everyone suffers when a jerk is allowed to join your organization. Even if the employee in question is a star performer, don’t discount the effect they will have on the other employees in your company. There are hidden costs associated with a hostile work environment.

A Single Hostile Employee Can Turn a Culture of Collaboration into a Culture of Fear

Hostility can lead to an environment where people are more interested in pointing fingers than fixing problems. Employees will be unwilling to experiment with new ideas for fear of humiliation and ridicule. Innovation and creativity suffer when employees actively avoid the spotlight.
– The Startup Daily

To survive in an era of constant change, stay focused on the core of your business; the one problem you solve for your customers.

Stick to What You Do, but Reinvent How You Do It

Remember that your customer’s world is being disrupted too. How can you make it easier for them to take advantage of the new world?
– The Startup Daily

Rewards can be used to encourage creative and nonroutine behaviors in your employees, but they should not be offered before the work is done.

Telling workers what the reward will be and making it contingent on doing the work will cause workers to focus on the reward rather than on the work itself.

Rewards Should be Unexpected and Given After the Fact

To further improve effectiveness, use non-tangible rewards such as praise, and give specific feedback about the behavior you want to encourage.
– The Startup Daily

Mistakes that affect your customers will happen, but most customers will give you a chance to earn back their favor.

Write a Great Last Chapter

Put some effort and creativity into your response, and the customer will be forced to focus on how well you responded to the mistake, instead of on the mistake itself.

People love to share stories of adversity. It’s almost always worth bearing a higher short-term cost to resolve a problem in a way that leaves the customer unable to tell the story of the mistake without mentioning the last chapter.
– The Startup Daily

Don’t get seduced by smart pricing tactics such as pushing inappropriate products, locking customers into contracts, and collecting hidden surcharges. These bad profits undermine your customer’s trust in you.

Good Profits Are What You Earn when You Create Value for Your Customers, Bad Profits Are Created by Extracting Value from Your Customers

Building your business on bad profits will alienate your customers and demoralize your employees. They will become your detractors and actively work to limit your growth.

Good profits are the only way to build a sustainable, successful business.
– The Startup Daily