The following content is designed by Christopher Justice to help establish the mindset for building a modern company. The class was taught by Christopher Justice on August 23rd, 2013 as a part of a forthcoming book which is still in draft form. At over 43,000 words, we find the content is changing every day and there are new approaches that are redefining modern entrepreneurship. The final book may never get published but it serves as a record and reminder.
Never forget, never stop, live, love, fail fast, and be resilient.
These principles are derived from people I love and admire as entrepreneurs. Joshua Baer, Brian Spross, Sam Decker, Gene Austin, Andrew Eye, Bob Burg, and a few more. Frankly too many to thank.
We focus on core principles:
What are the fastest steps to develop new business opportunities?
How to organize a revenue generating sales strategy?
How do you price the value you and your company provide?
What contracts do you need and how contracts can help you?
How to develop referrals and focus on what matters?
What are the 6 key reports you should look at each day?
What insurance should you have in place?
What are the most critical roles in your business and which ones can you outsource?
How many employees do you need and how many should you have?
What business software do you need and which programs to avoid?
This is a foundation book for building a business with a seven digit balance sheet. This course has been developed from best practices from entrepreuers and will train you to mentally react, adapt and build a revenue generating business. Attendees will be challenged mentally and emotionally to embrace and respond to the pressure of owning, operating and developing a profitable business.
In closing, entrepreneurship is certainly not what I thought it would be and not for the feint of heart. You can be successful, you must never give up and constantly reinvent yourself.
All in all, work with love and loyalty, everything else will fall into place.
2. Christopher Justice
SEVEN DIGITS
‣ Husband
‣ Father
‣ Friend
‣ CEO
Christopher Justice is Chief Executive Officer and co-founder
of Sparksight. He oversees operations and strategy but Chris
is a key component of each Sparksight project and client.
Combining wisdom and humor with common sense, Chris is
a featured speaker and is a master at building better
businesses through a combination of face-to-face and online
marketing techniques. Chris has developed local, national
and international marketing programs and events that capture
the imagination and generate a sense of opportunity from
attendees, customers, partners and employees. His fun and
joking personality spreads through each employee and client,
allowing for a casual but always professional experience.
2
3. introductions & Purpose
‣ Who are you?
‣ what do you do?
‣ what do you want to do?
‣ what is a business to you?
‣ be personal, be specific.
‣ WHAT ARE YOUR EXPECTATIONS
‣ HOW CAN YOUR EXPECTATIONS BE EXCEEDED
‣ THIS IS A TEST AND EXPERIEMENT
3
4. accountability video
4
You will have the opportunity to commit on video.
You can describe your dream company or business.
You can comment on the session and topics of the seminar.
5. AGENDA AND TIMELINES
‣ We are fluid
‣ your input is key
‣ questions at any time
8:30am Introductions and Purpose
9:00am The First Digit: Foundations
9:45am The Second Digit: Multipliers
10:45am Break
11:00am The Third Digit: Money
11:45am The Fourth Digit: Love
12:30pm Lunch (on your own)
1:30pm The Fifth Digit: In vs On
1:45pm Break
2:45pm The Six/Seventh Digit: Sustainability & Accountability
3:30pm Questions and Answers
5
6. 6
business types
Legacy
An system that lives
after you are gone.
Liability
A unsustainable
system that relies on
one person to
support it.
Hobby
Casual or occasional
work that can be
abandoned.
Job
A job is a regular
activity performed in
exchange for
payment. 48
7. • ATTORNEY
• INSURANCE AGENT
• ACCOUNTANT
• DESIGNER
• HUMAN RESOURCE PROFESSIONAL
• WEB DEVELOPER
• COPYWRITERS
• VIDEOGRAPHERS
• EXPERIENCED ENTREPRENEUR
ESSENTIAL RELATIONSHIPS
7
10. First Digit: Foundation
Principle Two: Authenticity
Be true to yourself. avoid
lies and liars. Speak your
mind no matter the
consequence.
SEVEN DIGITS
10
12. Principle four: Strengths & Being Smart
Your business is a child who
relies on your soul to survive and
your mind to thrive.
First Digit: Foundation
SEVEN DIGITS 12
14. Second Digit: Multipliers
SEVEN DIGITS
Principle Five: Not the Idea but the Person
IDEAS have no value. You
hold the ability to create
your wealth
14
15. Second Digit: Multipliers
SEVEN DIGITS
Principle six: Goals Are Success Personified
We work flexibly with
clients to fulfil their print
and web needs.
15
16. Second Digit: Multipliers
SEVEN DIGITS
Principle seven: SIMPLICITY
Explaining yourself and
your value should take
seconds not sentances.
16
18. PRINCIPLE eight: Deception Of Money
Money is a thief of value and a
core deception of success.
Third Digit: Money
SEVEN DIGITS 18
19. Third Digit: Money
Seven Digits
Principle NINE: Be a CASINO
GENERATE IDEAS that have
MULTIPLE OPPORTUNITIES FOR
Generating income.
19
20. Third Digit: Money
SEVEN DIGITS
Principle TEN: Hire for Values, Not Skills
You can teach anyone most things, but
you cannot beat the jerk out of anyone.
20
22. The Fourth Digit: Love
SEVEN DIGITS
Principle eleven: purpose to promise
your soul is the guide of
your heart. commit to
following it.
22
23. The Fourth Digit: Love
Principle TWELVE: Fun, EASY, Fluid, Seamless
make business fun and easy.
stop, reset and respond if it
is anything but.
SEVEN DIGITS
23
24. The Fourth Digit: Love
SEVEN DIGITS
Principle Thirteen: Fail, often
more scars than trophies.
24
26. The Fifth Digit: Working In vs On
SEVEN DIGITS
Principle fourteen: Valuation
Manage your business in an impersonal
way and create a business that is of
value to someone else.
26
27. The Fifth Digit: Working In vs On
Principle fifteen: systems
operational, technological, financial,
legal, human capital and marketing
SEVEN DIGITS
27
28. The Fifth Digit: Working In vs On
SEVEN DIGITS
Principle sixteen: ASsETS and EXITS
developing a foresight and
a forward-looking vision
28
30. The Sixth Digit: Sustainability
SEVEN DIGITS
Principle seventeen: results and emotions
your business and your
employees are a direct
reflection of your state of
minds and happiness.
30
31. The Sixth Digit: Sustainability
Principle eighteen: leveraging performance
find what works and apply it
in every possible way
SEVEN DIGITS
31
33. The Seventh Digit: Accountability
SEVEN DIGITS
Principle nineteen: Simplicity and volume
Small things done consistently in
volume with a good margin, nice
profit and repeatability
33
34. Principle TWENTY: Compound faith and finance
profits realized as cash compound
exponentially and creates true
business and personal alignment
The Seventh Digit: Accountability
SEVEN DIGITS 34
37. 37
defining a DReam business
‣ Determine your value and the equations of your success.
‣ Get a set of mentors and peers for brainstorming.
‣ The product of your business is love but the language of
business is finance.
‣ Be happy and ready to pivot if the finances are not working.
‣ If you get in trouble, call a person on your Oh Shit List.
39. SEVEN DIGITS
AWESOME PRESENTATION TEMPLATE
‣ NO
‣ no
‣ no
‣ yes
Should you start a business if you have a lot of debt?
Should you start a business if you can't fund it?
Start a business if you can't afford to quit your job?
Join a business that has momentum / learn as you earn?
honest questions
39
40. 40
defining a business
‣ Are you a product or service?
‣ What investment will your business require?
‣ How quickly do you need to process customers?
‣ Are you a Entrepreneur, Manager, Technician?
41. 41
defining relationships
‣ Is this a social or business relationship?
‣ What does this person expect from me?
‣ What can I provide them that is within my direct control?
‣ Will there be a next step to our relationship?
‣ How does this person fit into my network of relationships?
THE FIRST DIGIT: RECIPROCITY
42. 42
Authentic challenges
‣ We often live by the values we inherited from our parents, authority
figures and childhood socialization.
‣ Technology has introduced unhealthy distractions that reduce
authenticity and focus.
‣ Ask questions, be here, be now and be attentive to what’s actually
happening in every situation.
THE SECOND DIGIT: AUTHENTICITY
43. 43
THE SECOND DIGIT: AUTHENTICITY
personal exercise
‣ What have been your three greatest accomplishments?
‣ What have been your three greatest failures?
‣ What are any common rules or themes that you can identify?
‣ Identify one trait that you want for every person in your company?
44. 44
decision mistakes
‣ Relying too much on expert information.
‣ Overestimating the value of information received from others.
‣ Hearing what you want to hear/seeing what you want to see.
‣ Not listening to your feelings or gut reactions.
‣ Lack of resource and cost estimation required.
‣ Baseless time estimate / working example used for comparison.
THE FIRST DIGIT: RECIPROCITY
45. wise decisions
“Politics is the art of postponing
decisions until they are no longer
relevant.” Henri Queuille
45
Do not over think, most business decisions can be reversed.
After your decision is made, new major information may
come to light suggesting alterations to or the wholesale
reversal of your original decision.
Don't get too hung up on keeping your options open.
Remember that at some point, indecision becomes a
decision to do nothing, which might be the worst decision of
all.
47. 47
Initiate
- We hire smart, friendly and driven people that are self-starters, detail-oriented and strong communicators.
- We honor our commitments and communicate proactively to ensure trust and respect.
- We foster collaborative relationships and continually share ideas and knowledge.
Innovate
- We are visionaries that exploit technology to transform experiences, processes and lives.
- We are creative, open-minded and bold without losing focus on the needs we are serving.
- We carefully select resources to that achieve the maximum benefit at the least cost.
Inspire
- We are designers that dedicate our collective energy to amaze, engage and motivate action.
- We look for new and exciting opportunities to increase our value to our customers.
- We treat ourselves well and feel that passion and determination are contagious.
48. 48
A binary decision is one that can have only two
outcomes.
Social influence determines collective outcomes of
individuals faced with binary decisions.
binary decisions
49. 49
IDEAS and people
‣ choose wisely your company
‣ Be observant of traits
‣ disassociate as necessary
All the great ideas in the
world are meaningless until
someone takes them and
applies energy to actualize
them.
50. 50
multiplier
‣ Leverages time, energy and resources,
‣ Expands something beyond its original dimensions,
‣ Increases its efficiency over time, and,
‣ Projects forward in terms of interactions that define the business.
51. KARBON PRESENTATION 2 • 24
Outside In
Devise your company and cash-flow model from the
outside in - starting from a point of view what people
want and structuring a business around meeting
those demands.
51
52. 52
pricing and value
‣ product value
‣ service value
‣ BRAND value
‣ hourly Rate
‣ SaaS
Your value is defined as what a person is willing to
pay for your idea, product or service.
Creative services: $50 - $150 per hour
Programming/Engineering: $60 - $160 per hour
Copywriting: $60 - $100 per hour
Legal Services: $125 - $250 per hour
53. 53
developing core values
Initiate
- We hire smart, friendly and driven people that are self-starters, detail-oriented and strong communicators.
- We honor our commitments and communicate proactively to ensure trust and respect.
- We foster collaborative relationships and continually share ideas and knowledge.
Innovate
- We are visionaries that exploit technology to transform experiences, processes and lives.
- We are creative, open-minded and bold without losing focus on the needs we are serving.
- We carefully select resources to that achieve the maximum benefit at the least cost.
Inspire
- We are designers that dedicate our collective energy to amaze, engage and motivate action.
- We look for new and exciting opportunities to increase our value to our customers.
- We treat ourselves well and feel that passion and determination are contagious.
55. THE SECOND DIGIT: MULTIPLIERS
The CEO must be a great salesperson will call upon
any customer or prospect.
Great products and great companies are bought, not
sold.
Motivating customers and employees means figuring
out what matters most to each person.
chief executive officer
55
56. THE THIRD DIGIT: MONEY
financial health
Profit is why you are in business.
Maximize cash-flow and build accurate forecasts.
Self-funded, equity capital or angel funding.
56
57. 57
• Financial and accounting
• Customer relationship management
• Web Tracking
• Email marketing
• backup and restore
measurement and tracking
If you can track it
you can change it.
58. 58
money is centered in energy
‣ Health and wellness are the foundations for wealth.
‣ The more energy you have, the more productive you are.
‣ A lifestyle change often results in financial benefits.
‣ Sleep, water, nutrition and exercise are essential to success.
THE FIRST DIGIT: RECIPROCITY
60. A cash flow statement can tell you if you’re running
out of money while you’re profitable.
A cash flow statement can tell you if the owner is
taking too much money out of the business.
You will see the results of building inventory, letting
receivables grow or paying suppliers more quickly.
Capital purchases show up as an expense.
You’ll see what your bank loan payments are doing to
your cash.
60
most important: cash flow
61. 61
You are only going to be making 70% of whatever you
charge for your value. So, out of that $100 / hour that
you intend on charging, 30% of that is not yours. It's
sad but true that, in most countries, you will be taxed
on the income you produce.
62. THE THIRD DIGIT: MONEY
salaries and talent
People are typically your largest expense.
Experienced people will cost more but work faster.
Younger people will work for less but cost more.
Experienced people will work for less if they are motivated
and can envision a good outcome.
62
63. 63
surplus and savings
‣ Money is a tool, and it will take on the meaning you give it.
‣ The more money you have saved, the more choices you have.
‣ Taxes are good and demonstrate you are successful.
‣ Multiple products sources of income are essential.
THE THIRD DIGIT: MONEY
64. break time
i do not hear or see my
business, i feel it. the breath i
draw is from its values.
Christopher JUstice
64
65. 65
Emotional Intelligence
THE FIRST DIGIT: RECIPROCITY
The ability to perceive emotion, integrate emotion to
facilitate thought, understand emotions and to
regulate emotions to promote personal growth.
66. 66
Perceiving Emotions: The first step in understanding emotions is to accurately perceive them. In
many cases, this might involve understanding nonverbal signals such as body language and facial
expressions.
Reasoning With Emotions: The next step involves using emotions to promote thinking and
cognitive activity. Emotions help prioritize what we pay attention and react to; we respond
emotionally to things that garner our attention.
Understanding Emotions: The emotions that we perceive can carry a wide variety of meanings.
If someone is expressing angry emotions, the observer must interpret the cause of their anger
and what it might mean. For example, if your boss is acting angry, it might mean that he is
dissatisfied with your work; or it could be because he got a speeding ticket on his way to work
that morning or that he's been fighting with his wife.
Managing Emotions: The ability to manage emotions effectively is a key part of emotional
intelligence. Regulating emotions, responding appropriately and responding to the emotions of
others are all important aspect of emotional management.
67. Results and Cautions
THE FIRST DIGIT: RECIPROCITY
F R I E N D LYC O O P E R AT I V E
G R AT E F U L
P O S I T I V E
The emotional burden to
repay bothers some more
than others, causing some
to overcompensate with
more than what was given
originally.
67
CAUTION
68. break time
Art does not reproduce what
we see; rather, it makes us see.
PAUL KLEE
68
69. laws of simplicity
69
Law #1: Reduce - Thoughtful reduction of all but core activities.
Law #2: Organize - Sort, label, integrate and prioritize.
Law #3: Time - The faster you accomplish things, the more freedom you will feel.
Law #4: Learn - Knowledge makes everything simpler.
Law #5: Difference - Simplicity and complexity are interwoven and congruent.
Law #6: Context - Comfort and directionless.
Law #7: Emotion - Feeling makes ideas human.
Law #8: Trust - Letting go is natural, build integrity into the system first.
Law #9: Failure - Success is not guaranteed but the result of failure is often simplicity.
Law #10: The One - Simplicity is about subtracting the obvious and adding the meaningful.