Category Archives: Business Lessons

Using psychology to be an influential leader

How to use psychology to be an influential leader

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As a leader, your role goes beyond just delegating tasks and making strategic decisions. You must inspire and motivate your team to achieve their best performance. To do this, it’s crucial to understand the psychology of human behavior. Knowing what drives people and how they react in certain situations will make you an effective leader. In this blog post, we’ll explore the importance of understanding human psychology to become an influential leader.

Build Strong Relationships

As a leader, building relationships with your team is crucial. When you understand human psychology, you can tailor your communication to each individual team member. This means you can use the right language, tone, and body language that resonates with them. You can also identify their communication style, whether they are visual, auditory, or kinesthetic learners, and adjust your communication accordingly. This helps to build trust and rapport with your team, making it easier for them to follow your lead. It’s all about ensuring you can individualize your approach.

What works to motivate and influence one team member will not work on another.

Motivate Your Team

Understanding human psychology also helps you to motivate your team effectively. By recognizing what drives them, you can incentivize and reward them in ways that inspire them to achieve their best performance. For example, if a team member is driven by recognition, you can give them public praise for their work. If they’re motivated by personal growth, you can offer them training and development opportunities. Motivating your team can lead to higher levels of engagement, productivity, and job satisfaction.

All too often we default to our own preferred method of recognition. It’s important to remember that you aren’t the one being recognized. There is also a long-held belief that monetary recognition is the best form. In fact, some of the best motivators are recognition that connects to personal goals or purpose of an employee. Consider supporting a cause they are connected to, or doing something outside the box that shows them you appreciate them.

One of the best recognitions I have ever received wasn’t even for me – it was for my wife. Her employer sent ME a letter to thank me for everything I do to support her in the background so that she can do the work she does. It was a feel good moment for both of us, and a great way to recognize a team member.

Manage Conflict

Conflict is inevitable in any team, but it’s how you manage it that makes the difference. Understanding human psychology can help you identify the underlying causes of conflict, whether it’s a clash of personalities, miscommunication, or conflicting values. With this knowledge, you can approach conflict resolution in a way that takes into account the emotions and perspectives of everyone involved. This approach can help to de-escalate conflicts and find mutually beneficial solutions.

And it doesn’t need to get to the point of conflict to manage the conflict.

As you hone your observation skills, you’ll become much more aware of some of the indicators that might tell you trouble is brewing. It gives you the opportunity to address the issue sooner and deal with it before there’s any impact at all. Specifically, look for changes in behaviours like showing up late or missing meetings, not talking in social situations where once they would contribute. These are signs something is going on, and is a good opportunity to check in and see where or how to provide support.

Foster Creativity and Innovation

Human psychology plays a critical role in creativity and innovation. By understanding how people think and process information, you can create an environment that fosters creativity and innovation. This includes providing opportunities for brainstorming, idea-sharing, and experimentation. You can also encourage diverse perspectives and approaches to problem-solving, which can lead to breakthroughs and new ways of thinking.

Develop Emotional Intelligence

Finally, understanding human psychology helps you to develop emotional intelligence. Emotional intelligence refers to the ability to understand and manage your emotions and the emotions of others. This skill is critical for effective leadership, as it enables you to empathize with your team, read their emotions, and respond appropriately. Emotional intelligence also helps you to regulate your own emotions, communicate effectively, and build positive relationships.

In conclusion, understanding human psychology is essential for effective leadership. It enables you to build strong relationships, motivate your team, manage conflict, foster creativity and innovation, and develop emotional intelligence. As a leader, investing in understanding human psychology is one of the most valuable investments you can make in yourself and your team.

Entrepreneurship 101: How to love it from the start

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Entrepreneurship is a challenging but rewarding journey. It requires creativity, resilience, and a willingness to take risks. But where do you start? In this blog post, we’ll explore the steps you can take to become an entrepreneur, drawing on the experiences and insights of successful entrepreneurs, as well as scientific studies that shed light on the qualities and habits that contribute to entrepreneurial success.

Step 1: Find Your Passion

The first step to becoming an entrepreneur is to find your passion. As Richard Branson, founder of Virgin Group, says, “Entrepreneurship is about turning what excites you in life into capital, so that you can do more of it and move forward with it.”

Scientific studies suggest that passion is a key driver of entrepreneurial success. In a study published in the Journal of Business Venturing, researchers found that entrepreneurs who were passionate about their work were more likely to persist in the face of challenges and setbacks, and were more likely to achieve success.

Step 2: Identify a Problem to Solve

Once you’ve identified your passion, the next step is to identify a problem to solve. As Steve Jobs, co-founder of Apple, famously said, “Innovation distinguishes between a leader and a follower.”

To be successful as an entrepreneur, you need to identify a problem that people are willing to pay to have solved. In a study published in the Harvard Business Review, researchers found that successful entrepreneurs were able to identify a gap in the market and create a unique solution to address it.

Step 3: Develop Your Idea

Once you’ve identified a problem to solve, the next step is to develop your idea. As Mark Zuckerberg, co-founder of Facebook, says, “I think a simple rule of business is, if you do the things that are easier first, then you can actually make a lot of progress.”

This means starting with a minimum viable product (MVP) and testing it with potential customers. Scientific studies suggest that this approach can increase the chances of success. In a study published in the Journal of Product Innovation Management, researchers found that companies that used the MVP approach were more likely to launch successful products.

Step 4: Build a Team

As your idea begins to take shape, the next step is to build a team. As Elon Musk, founder of SpaceX and Tesla, says, “Great companies are built on great products by great teams.”

Research suggests that building a diverse team can increase the chances of success. In a study published in the Academy of Management Journal, researchers found that teams with diverse backgrounds and skills were more innovative and performed better than homogeneous teams.

Step 5: Get Funding

Finally, to turn your idea into a successful business, you need to get funding. As Mark Cuban, entrepreneur and investor, says, “Sweat equity is the most valuable equity there is. Know your business and industry better than anyone else in the world. Love what you do or don’t do it.”

Research suggests that there are several ways to get funding, including venture capital, angel investors, crowdfunding, and bootstrapping. In a study published in the Journal of Business Venturing, researchers found that bootstrapping, or funding a business with personal savings, was the most common method of financing for early-stage ventures.

Becoming an entrepreneur is a challenging but rewarding journey. By following these steps, and drawing on the experiences and insights of successful entrepreneurs, you can increase your chances of success. As Mark Twain once said, “The secret of getting ahead is getting started.” So go ahead and take that first step on the path to becoming an entrepreneur!

Top 10 Entrepreneur Tips

Entrepreneur in Canada? You’ll love this top 10 list

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Starting a business is an exciting and challenging journey. As a new entrepreneur in Canada, you will face many obstacles and opportunities. It is essential to understand the legal, financial, and practical aspects of entrepreneurship. In this blog post, we will explore the top 10 things that new entrepreneurs in Canada need to know.

Conduct Market Research

Before launching a new business, it is crucial to conduct market research to understand your industry, customers, and competitors. You need to know who your target audience is, what they need, and how you can provide a unique solution to their problems. This guide to market research from the Canadian government is an excellent resource for new entrepreneurs.

Choose the Right Business Structure

You must choose the right business structure for your company. The most common options are sole proprietorship, partnership, and incorporation. Each structure has its advantages and disadvantages, so it is essential to consider your specific needs and consult with a legal professional. The Canada Business Network has an excellent guide to choosing the right business structure.

Register Your Business

Once you have chosen your business structure, you need to register your business with the appropriate government agencies. The process and requirements vary depending on your location and business type. The Canada Revenue Agency (CRA) has a helpful guide to registering your business.

Understand Tax Obligations

As a business owner, you will have tax obligations, including income tax, sales tax, and payroll taxes. It is crucial to understand your tax obligations and keep accurate records. The CRA has an excellent resource center for small business owners.

Obtain Necessary Permits and Licenses

Depending on your industry and location, you may need to obtain permits and licenses to operate your business legally. The Canada Business Network has a comprehensive guide to permits and licenses.

Secure Financing

Starting a business requires capital, and you will need to secure financing to fund your operations. You may consider traditional bank loans, venture capital, angel investors, or crowdfunding. The Canadian government provides several funding options for new entrepreneurs.

Build a Strong Team

As a business owner, you cannot do everything on your own. You need to build a strong team of employees, advisors, mentors, and partners to help you grow your business. The Canada Business Network has an excellent guide to building a strong team.

Develop a Marketing Strategy

Marketing is crucial for the success of any business. You need to develop a marketing strategy to attract and retain customers. The Canada Business Network has a helpful guide to marketing your business.

Protect Your Intellectual Property

Intellectual property (IP) is essential for many businesses. You need to protect your trademarks, patents, copyrights, and trade secrets. The Canadian Intellectual Property Office (CIPO) provides information and resources for protecting your IP.

Stay Informed and Adapt

The business landscape is constantly changing, and you need to stay informed and adapt to new trends, technologies, and regulations. Networking, attending industry events, and reading business publications are excellent ways to stay informed. The Canada Business Network has an excellent guide to staying competitive.

Starting a business in Canada requires careful planning, hard work, and perseverance. By following these ten tips, you can increase your chances of success as a new entrepreneur. Remember to seek advice from professionals, learn from your mistakes, and never give up on your dreams. Good luck on your entrepreneurial journey!

Entrepreneur's guide to market research

How to do market research as a new entrepreneur

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Market research is a crucial step for any new entrepreneur in Canada. Conducting market research allows you to understand your industry, target audience, and competition, which is essential for developing a successful business strategy. In this blog post, we will explore the steps involved in conducting market research as a new entrepreneur in Canada and provide links to helpful resources.

  1. Define Your Business Idea: The first step in conducting market research is to define your business idea. You need to have a clear understanding of your product or service and what problem it solves for your target audience.
  2. Identify Your Target Audience: Once you have defined your business idea, you need to identify your target audience. Who are the people that will benefit most from your product or service? What are their needs and wants?
  3. Conduct Secondary Research: Conducting secondary research involves collecting information from existing sources such as industry reports, market research reports, and government statistics. This research can provide valuable insights into your industry and competition.
  4. Conduct Primary Research: Conducting primary research involves collecting data directly from your target audience. This can be done through surveys, focus groups, or interviews. This research can provide valuable insights into your target audience’s needs, preferences, and opinions.
  5. Analyze Your Data: Once you have collected your data, it is essential to analyze it to gain insights into your industry, target audience, and competition. This analysis will help you identify key trends, opportunities, and challenges.
  6. Develop Your Business Strategy: Based on your research findings, you can develop a business strategy that addresses your target audience’s needs and wants while differentiating you from your competition.

Resources for Entrepreneurs:

  1. Canada Business Network: The Canada Business Network is a government resource that provides a wealth of information for new entrepreneurs, including a guide to conducting market research.
  2. Statistics Canada: Statistics Canada is a government agency that provides a wide range of statistics and data on Canadian businesses and industries.
  3. Canadian Federation of Independent Business: The Canadian Federation of Independent Business provides support and resources for small business owners, including access to market research reports.
  4. Canadian Marketing Association: The Canadian Marketing Association is a professional association for marketers that provides resources and training on market research and other marketing topics.
  5. Entrepreneurship Manitoba: Entrepreneurship Manitoba is a government agency that provides support and resources for entrepreneurs in Manitoba, including access to market research reports.

Conducting market research is a critical step for any new entrepreneur in Canada. By following the steps outlined above and utilizing the resources available to you, you can gain valuable insights into your industry, target audience, and competition, which will help you develop a successful business strategy.

Overcome bias and get results for your biz

Bias in business: how to overcome the top 12

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In today’s diverse workplace, it is essential to recognize and address different forms of bias that can occur. “Bias definition” is a common search phrase, as employees seek to improve their understanding of what they can do differently. From confirmation bias to hindsight bias, The Biz Dojo has you covered with our top 13 biases found in business.

The best way to address a bias? Learn what it is, spot it, and take action. So, to help you on that journey – here is the list of the top 13 biases you may come across in the workplace.

Top 13 Bias in business

Confirmation Bias

With this bias, we tend to seek out information that confirms our pre-existing beliefs and ignore information that challenges them. To overcome this, it is important to stay open to different viewpoints and actively seek out diverse perspectives.

Implicit Bias

This is unconscious bias that affects the process of how we make decisions. To overcome this, we must become aware of our biases and challenge them through deliberate action.

Halo Effect

In this bias, we form an overall impression of an individual based on one positive characteristic. To overcome this, it is important to evaluate individuals based on a variety of criteria rather than relying on one aspect.

Horns Effect

This is the opposite of the halo effect, where one negative characteristic clouds our overall perception of an individual. To overcome this, it is important to evaluate individuals based on multiple criteria and not let one negative trait overshadow their other qualities.

Affinity Bias

It is natural for us to want to favor individuals who are similar to ourselves. But, that also means we’re often surrounded by those who don’t challenge our way of thinking. It prevents us from exploring new ways of thinking, and ultimately stunts our growth. To overcome this, it is important to actively seek out diversity in our workplaces. We must consider individuals based on their qualifications rather than their similarities to us.

Conformity Bias

This is the tendency to conform to group opinions rather than considering alternative viewpoints, even when they conflict with or own beliefs. This can often occur when we have the same groups of individuals working on a project. This often occurs in politics, where members go along with a particular idea simply because it is desired by the broader group. To overcome this, it is important to encourage diverse perspectives and challenge assumptions. It is important to speak up, this is especially true if your “gut instinct” is telling you something contrary to the group opinion. Explore that feeling with the group to ensure your own comfort level with the decision, and to help eliminate any groupthink biases.

Anchoring Bias

This is the tendency to rely heavily on the first piece of information received when making decisions. This is often used in marketing, especially for high-ticket items. For example, if you’re thinking about buying a new car, the first price you see is your anchor point. The salesperson may then offer you a slightly lower price, and you will perceive it as a deal — even though it may be significantly higher than the true value of the vehicle. To overcome this, it is important to gather and evaluate multiple sources of information. So in this example, taking the time to shop around and compare prices is critical before that sales person gets to you.

Availability Bias

This is the tendency to rely on readily available information rather than seeking out more accurate or relevant data. This is another bias that has a great connection to marketing. When you think of facial tissue, you probably think “Kleenex”. In fact, you probably don’t even think “facial tissue”. There are likely brands out there you may be more interested in, but when you go to the store Kleenex is the first to mind. So, it’s what you buy. To overcome this, it is important to conduct thorough research and avoid making decisions based on assumptions.

Attribution Bias

This is the tendency to attribute qualities of others based on incomplete evidence. In business, one of the greatest examples of attribution bias is in the hiring process. In hiring, we often seek out credentials (i.e. University degree) because we are biased towards higher education. The skills and experience of the team member are often not even considered if a candidate doesn’t have that initial “qualification” for the role. So, we are biased even before the process begins, and as a result will often miss out on truly incredible candidates.

Recency Bias

This is the tendency to place too much weight on recent events or information when making decisions. To overcome recency bias, consider historical data and trends, and strive for consistency in decision-making.

Hindsight Bias

This is the tendency to believe that events were predictable and inevitable after they have occurred. To overcome hindsight bias, consider the information and circumstances that were available at the time of the decision. Focus on learning and improvement rather than blame.

The workplace should be a space where everyone has an equal opportunity to succeed, regardless of their background, race, gender, or any other factor. Unfortunately, unconscious biases can creep into the workplace, affecting decisions and hindering diversity, equity, and inclusion efforts.

Recognizing and addressing different forms of bias is essential for creating a diverse and inclusive workplace. By being aware of these biases and taking deliberate action to overcome them, we can create a workplace culture that values diversity and promotes equality. It is up to all of us to create an environment where everyone feels welcome, respected, and valued.

Choosing the right business structure for your biz

Business structure: how to choose the right one for your business

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Choosing the right business structure is crucial for any new entrepreneur. It determines the legal and tax implications of your business and affects the way you raise capital. As a new entrepreneur in Canada, it’s important to choose the right business structure to ensure your business’s success. In this article in our Business Support series, we’ll discuss the various types of business structures available in Canada and provide relevant statistics and examples to help you make an informed decision.

Types of Business Structures in Canada:

  1. Sole Proprietorship: A sole proprietorship is the most straightforward type of business structure in Canada. As a sole proprietor, you are responsible for all debts and obligations of the business. According to Statistics Canada, 58% of small businesses in Canada are sole proprietorships.
  2. Partnership: A partnership is a business structure owned by two or more individuals who share the profits and losses of the business. Partners are personally liable for the debts and obligations of the business. Statistics Canada reports that 9% of small businesses in Canada are partnerships.
  3. Corporation: A corporation is a separate legal entity from its owners. It can be owned by one or more individuals or by shareholders. Shareholders are not personally responsible for the debts and obligations of the corporation. According to Statistics Canada, 31% of small businesses in Canada are corporations.
  4. Cooperative: A cooperative is a business structure owned and operated by its members. Members share the profits and control the business through a democratic process.
  5. Limited Liability Partnership (LLP): An LLP is a partnership where the partners have limited liability for the debts and obligations of the business.

Factors to Consider When Choosing a Business Structure:

  1. Legal Liability: The level of personal liability you are willing to assume for the debts and obligations of the business.
  2. Taxes: The tax implications of the business structure you choose.
  3. Capital: The ease of raising capital for your business.
  4. Complexity: The level of complexity and administrative requirements associated with the business structure.

Examples of Successful Business Structures in Canada:

Shopify: Shopify is a Canadian e-commerce company that went public in 2015. It is structured as a corporation and has been extremely successful, with a market capitalization of over $200 billion as of March 2023.
MEC: MEC (Mountain Equipment Co-op) is a Canadian retail cooperative that sells outdoor gear and clothing. The cooperative structure has allowed MEC to prioritize sustainability and social responsibility while maintaining profitability.
Cirque du Soleil: Cirque du Soleil is a Canadian entertainment company that was founded as a partnership. It has since been restructured as a corporation, allowing it to expand globally and become one of the most successful entertainment companies in the world.

Resources for Choosing the Right Business Structure in Canada:

  • Canada Business Network: The Canada Business Network provides information and tools to help entrepreneurs choose the right business structure.
  • Canadian Federation of Independent Business: The Canadian Federation of Independent Business provides support and resources for small business owners, including a guide to choosing the right business structure.
  • Small Business BC: Small Business BC is a non-profit organization that provides support and resources for entrepreneurs in British Columbia, including a guide to choosing the right business structure.
  • MaRS Discovery District: MaRS Discovery District is a non-profit organization that provides support and resources for entrepreneurs in Ontario, including a guide to choosing the right business structure.
  • Business Development Bank of Canada: The Business Development Bank of Canada provides financing and advisory services to Canadian entrepreneurs, including a guide to choosing the right business structure.

Choosing the right business structure is a critical decision for any new entrepreneur in Canada. By considering the factors outlined above and utilizing the resources available, you can make an informed decision that will set your business up for success.