Conversations on the art of creative entrepreneurship with David C. Baker and Blair Enns
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Business As Unusual - Managing in a Pandemic
Blair and David address five common questions they have heard from creative entrepreneurs as they both have been helping firms navigate the economic changes being caused by the COVID-19 pandemic.
When Rightsizing Makes Sense...And How to Do It
Given where the economy is currently heading, David offers a framework that can help principals of creative firms make those tough staffing decisions in a timely and considerate manner.
The Power of Options
David asks Blair to clarify his advice on offering proposal options and anchoring. Is it about more than just scope and price? LINKS Implementing Value Pricing: A Radical Business Model for Professional Firms by Ronald Baker The Strategy and Tactics of Pricing: A Guide to Growing More Profitably by Thomas T. Nagle and Georg Müller Pricing with Confidence: 10 Ways to Stop Leaving Money on the Table by Reed Holden and Mark Burton Negotiating with Backbone: Eight Sales Strategies to Defend Your Price and Value by Reed Holden “6 Psychological Tactics Behind the Starbucks Menu” by Kent Hendricks The Soul of Enterprise podcast, episode 233: “Pricing at Starbucks and Six Tactics You Should Know About”
How Digital Firms Are Different
Blair and David record a live episode at the Orpheum Theater in New Orleans for Bureau of Digital’s Owner Summit. Thank you to Carl Smith and Lori Averitt at Bureau of Digital for hosting the live recording at the Owner Summit on February 7, 2020 in New Orleans. And thank you to the amazing staff at the Orpheum Theater for helping us with the production and staging!
The Impact of Agile in the Real World
David does all the heavy lifting for Blair in his recent article so they can finally discuss the overlap between Agile as a management method and pricing policy. LINKS “Pros and Cons of Agile…in the Real World” by David C. Baker 2Bobs episode 78: “Phase Your Client Engagements” Manifesto for Agile Software Development “Agile is Dead (Long Live Agility)” by Dave Thomas
Phase Your Client Engagements
Blair wants firms to get paid to write their proposals, which is the first of his four phases of client engagement. LINKS “Different Pricing Models” - 2Bobs episode 61 “A Beginner’s Guide to Negotiating” - 2Bobs episode 53 “Alternative Forms of Reassurance” - 2Bobs episode 46 Transcript
Understanding Account People
David keeps encountering clients who don’t appreciate how their account people actually contribute to their overall business, and Blair totally identifies with the traits that David describes. 2Bobs episode 44: “The Best Ways to Disrespect Account People” WHAT ACCOUNT PEOPLE DO, IN BROAD STROKES: Pull necessary data from the client, even when it’s tough to get their cooperation. Sell recommendations back to them that are in their best interest. Lead the client. (Interesting fact: “strategy” is latin for “general” in army who leads.) Protect margins. Grow the account. Send the client to hell...and help them enjoy the trip (e.g., change orders). Read social signals and intervene before catastrophe strikes. Manage an account review, disputes, mistakes, etc. Follow client contacts to their next job. Keep ear to the ground as agency innovates client offerings. PERSONALITY: Goal is authority and prestige. Judges others by their ability to verbalize and be flexible. Overuses enthusiasm, selling ability, and optimism. Fears boxed in environment without room to grow.
What Leverage Do You Have With Client Contracts and MSAs?
Blair and David share their frustrations around some contracts that they have been asked to sign, making it clear why they are not attorneys. This episode does not contain legal advice. Get a lawyer for that: Sharon Toerek Candice Kersh Jeffrey Dermer Michael Lasky
When You Put Someone Else In Charge of Your Firm
David keeps seeing principals who get someone else to run their firm, which is not a good idea. Then he gets Blair's thoughts on why he thinks it happens. Links David C. Baker Seminar Win Without Pitching Workshops with Blair Enns Built to Sell: Creating a Business That Can Thrive Without You by John Warrillow Entrepreneurial Operating System Traction Library The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William Thorndike
Productized Vs Customized Services and Monthly Recurring Revenue
David and Blair lay out some of the reasons why they think, in most cases, agencies pursuing recurring revenue models are making a mistake. Links “Why Monthly Recurring Revenue (MRR) Arrangements May Not Be Ideal” by David C. Baker The End of Average: How We Succeed in a World That Values Sameness by Todd Rose Pricing Creativity: A Guide to Profit Beyond the Billable Hour by Blair Enns The Life-Changing Magic of Tidying Up: The Japanese Art of Decluttering and Organizing by Marie Kondō “Unbundling the Corporation” by John Hagel III and Marc Singer for Harvard Business Review
Which RFPs Should You Respond To?
David brings up one of Blair's favorite topics: how they keep themselves and their clients from being trapped by requests for proposal. LINKS 2Bobs episode 70, “The Only New Business Indicator That Matters”
A Podcast After-Action Review
Blair and David share what they have learned as they have recorded 2Bobs podcast episodes for almost 4 years - what has worked well, what has been challenging, and what they would recommend to those agency principals who might be considering their own podcast. LINKS The Soul of Enterprise Episode 15: “The Best Learning Method Ever Devised: After Action Reviews” with Ron Baker and Ed Kless Build a Better Agency with Drew McClellan EconTalk with Russell Roberts Marcus dePaula, podcast producer and consultant BLAIR'S PODCASTING SETUP Telefunken M82 dynamic XLR microphone Audient iD4 audio interface Rolls MS111 Mic Mute Senal SMH-1000 Professional Field and Studio Monitor Headphones Apple QuickTime Player app for AIFF audio recording using the Maximum quality setting Skype for the conversation (audio only) DAVID'S PODCASTING SETUP Sennheiser HMDC 27 Professional Broadcast Headset with custom extension cable (so David can roam as he records) Audient iD4 audio interface Rolls MS111 Mic Mute Rogue Amoeba Audio Hijack for WAV audio recording of both David's mic and the Skype call (as a backup) Skype for the conversation (audio only) MARCUS' EQUIPMENT RECOMMENDATIONS MARCUS' REMOTE RECORDING INSTRUCTIONS USING CLEANFEED.NET
Common Traits of Success
Blair and David consider the hundreds of firms they have each worked with over the years to identify the characteristics of highest performing firms and what they have seen agency principals do to succeed.
The Only New Business Indicator That Matters
Blair shares some new data (at the time he and David recorded this discussion in January of 2016) that points to the one variable that can predict the likelihood of a prospect hiring your firm.
Taking the Team Seriously
David wants to know if Blair thinks it's harder for creative firms to find great prospective clients, or great employees, as they unpack how to attract the right candidates using a “lead generation” plan. Ideas for “Lead Generation” of candidates: Social media presence Guest teach a single class at a known school that typically turns out a best student every semester Offer your facility as a meeting place for trade/association meetings Put a rotating art gallery with an open house when the display rotates Quarterly webinar for prospective employees on topics they would be fascinated with, including guests (or even a podcast) Skill-building workshops open to the community, bringing in expert teachers Build a model that depends on a steady rotation of contractors to test them out Keep a great relationship w/ employees who leave you—they are frequently your best people when they return after an interim education somewhere else