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Employees Entrepreneurs Ideas Improvement

Feeling stuck?

Without a plan and a strategy to implement that plan, we’ll always be slaves to economic factors beyond our control. – Anonymous

I don’t know where I originally found that quote. I keep a list of quotes in Evernote and this one was dated 10 years ago. Regardless, it makes a good point, particularly if your job and financial situation have you feeling like you have no control over what happens next.

You do have some control, though it may seem so small at the moment that you might discount it as meaningless. Don’t.

Most people feel stuck at some level, but you may feel like you’d prefer someone else’s “brand” of stuck to yours. Most likely, there’s someone who would prefer your current situation to theirs. In both cases, we’d prefer to extract ourselves from the current level of stuck, whatever that might be.

Why “stuck”?

While the idea of “being a slave to economic factors” seems like a fairly clear message, I prefer to be a bit more precise with my words. The “being a slave” simply isn’t accurate, and it ignores rather vast differences between actually being a slave and the pressure, inconvenience, and discomfort of feeling subject to the whims of the economy.

An obvious difference: Your boss isn’t going to shoot you if you quit working for their company, even if you can’t financially afford to quit. While you and your family will probably suffer substantial inconvenience and discomfort until a few months after things get back to whatever normal is, it’s not the same as being a slave.

“Feeling stuck” is a more accurate description, isn’t comparable to slavery, and is relatable. If someone comments about their job, their boss, a downturn in their industry, their pay, the impact of a new tariff, etc – they feel like they have no choice. They’ll almost certainly answer “Yes” if you ask them if they feel stuck.

Figure out what’s next

One of the mistakes we make when we’re stuck is that we look at the ultimate destination as the place we want to be and declare that our goal without considering all the destinations we’ll pass through on our journey to that goal.

There’s nothing wrong with that. We’re really good at adapting. When we take a punch, we usually change our behavior. While we may not avoid taking another punch, we prefer not to take the same one repeatedly.

We’re going to have to tolerate milestones along the way. It’s not much different from earning a new skill. A year from now, we’ll laugh or shake our heads at how naive / uninformed our original grandiose thoughts were. It’s much the same as when we look back on our abilities of a few years ago and realize how much we’ve learned.

We may decide somewhere along the journey that we want something a little bit different. The industry might change, we might select a slightly more interesting, appreciative, or better-funded customer segment. We may find something else that attracts us and makes our direction veer a bit to the left or right.

I don’t know the first step!

When I said figure out what’s next, I don’t mean the ultimate goal. Just get started and take the first step. Until you do, you’re still stuck.

That’s how journeys work.

Even if you don’t know what the first step of your journey should be, you can’t let that stop you from taking it.

Start by reverse engineering a path from where you want to end up back to where you are now. What’s the last milestone before you get to your ultimate goal? What has to happen before you get to the next to that milestone? Repeat that process until it leads all the way back to where you are now.

Now you have a first milestone and for now, a set of directions. It’s possible this set of directions and milestones won’t change. It’s critical that you expect change along the way. Your needs, wants, and motivations may change. That’s OK.

Being stuck is hard

There are many unknowns. There will be time spent outside your comfort zone. You’ll feel pressure from family, parents, peers, etc. Most of them aren’t the ones who are stuck. You are. It’s your goal, not theirs.

Getting unstuck is hard work. So is being stuck. Which would you prefer?

Photo by Tomas Tuma on Unsplash

Categories
Banking Employees Entrepreneurs

Boomer business for sale

I noticed a decades-old retail business that’s closing soon. There’s no “For Sale” sign in the window. The newspaper article about the upcoming closure says nothing about the owner’s desire or attempts to sell it. It appears they’re simply closing. I suspect their staff are looking for a new job. Later that day, I was listening to a podcast discussing data showing that 60000 U.S. boomers retire every day and that boomers own 57% of the 28.7 U.S. businesses. The impact of closing rather than selling a “boomer business” will not go unnoticed by local economies.

This boomer business data comes from the U.S. Census, Social Security Administration, the SBA, the BLS, and the financial industry. Per a JP Morgan Chase analysis of U.S. Census data, 48% of the people U.S. employees work at a small business. 18% of them work at a small business with fewer than 20 employees.

Boomer business closures

If you combine the 60000 per day figure with the 57% figure, what you get is a picture of a massive group of businesses that will change hands over the next decade or so. The troubling thing is that the sale of the business isn’t the only option.

Many business owners choose to close up shop and walk away. Perhaps they don’t have children who wish to take over the business. Maybe they don’t feel their “boomer business” is worth anything to anyone else, even though it’s probably producing an income. They may not be interested in dealing with the hassle of finding a buyer who can pay the price, much less the effort required to train the new owner.

At first, I thought this apparent hesitance to sell and train was because a long-term business required very specific, and perhaps disappearing, skills. Some fit this profile, but the JP Morgan analysis shows that 51% of small businesses are less than 10 years old, so many likely aren’t limited by that problem.

Over 99 percent of America’s 28.7 million firms are small businesses. The vast majority (88 percent) of employer firms have fewer than 20 employees, and nearly 40 percent of all enterprises have under $100k in revenue.

JP Morgan Chase analysis of U.S. Census data

Why this matters

There’s somewhere around 155 and 160 million Americans employed. I know, the numbers are weirdly calculated, politicized (as always), and may count people with multiple part time jobs as more than one person.

There are probably other problems with the numbers, but for the sake of discussion, let’s assume they’re inflated by 20% – a wide margin of error. That means roughly 128 million individuals have at least one job. Interestingly, a little research after the first draft of this found a Statistica report showing that same 128 million figure for full time employment in the U.S.

If 99% of the employers of these people are small businesses, and 57% (percentage owned by boomers) of them have owners nearing retirement in some form, there are a lot of jobs at some sort of risk.

You can’t simply take 57% of 99% of 128 million, of course. What we can do is accept that it’s reasonable that a very large number of people work for businesses that will either close or change hands over perhaps the next 10 years.

With the average number of employees across all businesses being fewer than 20 (16 is one of the averages I saw from BLS.gov data), every time a business sells or changes hands, 15 jobs are at some level of risk (on average, assuming one owner is an employee).

That’s a significant impact on employment, even if these calculations are off by 50%.

SBA/SUSB data shows about 115,000 businesses in Montana – a number growing by ~3400 per year. About 51% remain open after five years.

If half of them close/sell over the next decade, that affects about 118,000 employees. While these numbers are rough, it’s reasonable that resulting life upheaval will ripple through local economies.

Collaboration required

Owners: Consider a creatively-structured sale. No matter how it pencils out, you gain little by closing the doors.

Employees: Tell the owner you’re willing to keep going. Look into how the business can be kept running. Someone who already owns a business is a good candidate.

Locally-owned banks: Is it OK for these businesses to disappear? No bank understands and can serve these folks like you can.

All three groups: Look for the win-win, rather than the fantasy outcome. Everyone can be rewarded by a successful transition – including the community’s economy.

Photo by Tim Mossholder on Unsplash

Categories
Entrepreneurs Management Small Business

What does freedom mean to business people?

When you ask business owners why they started their company, you frequently hear these words: Freedom and opportunity.

Opportunity tends to have a narrow definition. Someone sees potential in a market and goes after it. Opportunity may also mean the ability to make more than they could make at a job.

Freedom’s meaning seems to vary a bit more from owner to owner, at least as it relates to “I started my business because I wanted more freedom“. Knowing exactly what it means to you is critical. Those specifics will impact on how your company takes shape, how it’s run and eventually, how it appears to potential buyers.

I bring this up because I’ve recently been in a number of conversations with owners who are planning or considering the sale of their business. Some haven’t made the “I want to sell” decision yet. Those who haven’t decided yet are still  focused on improving their business practices. These changes will make their businesses more attractive to potential buyers if and when that time comes.

Working toward a better freedom

When discussing what needs to be done to sell your company, there’s usually a long list of things that the owner wants to improve before looking for buyers. Since your company will benefit from a subset of these improvements even if you don’t sell the company, be sure to focus on those things first.

Why?

First – Anything that makes the company better also improves it for you between now and the time you do close a deal. If you never close a deal, you still benefit.

Second – Some of the things you’d to prepare will only benefit you in situations where an “investor-class” buyer is involved, such as a private equity group.

Selling your business to “someone in your town” is much different than selling it to investors. The more sophisticated the buyer, the more complicated, annoying, and costly the due diligence process will be. Be sure that the prospect is dead serious before venturing into this process because it won’t be fun, cheap or easy – and it’s possible their intentions won’t be honorable. Doing your homework is essential.

How does this relate to freedom? The improvements you make should improve the freedom your business provides – and these things are almost always the same things that make the business more attractive to buyers.

What does freedom mean to you?

Specifically, what freedom does your business provide – or what freedom do you want it to provide?

Whether you are looking at what happens after you sell your business, or simply what will happen once your business reaches the point of being able to support you – it’s critical that you know exactly where you want it to take you.

Does freedom mean more time? What’s that mean for you?

Working fewer hours than at your last job? Working at home vs. having to commute? Being home every weekend? Not having to travel 25-30 weeks per year? Having the ability to come and go at will? Having a more flexible schedule day to day than at your last 8-5 job?

Businesses that provide time freedom typically have a team doing the day to day work. At first, the owner might be managing the team. Over time, owners need to recruit and/or develop someone to manage their team.

Companies structured like this can be easier to sell because they aren’t as dependent on the owner to run them day to day, much less to create revenue. They also provide smoother continuity if the owner dies or is disabled.

Does freedom mean more money? What’s that mean for you?

Does it mean that your income is more secure? More resilient? More diverse? Less likely to be at the whim of someone else?

What aspects of the business protect that income, your pipeline, etc? How resilient is that income if you have to interrupt your work (as owner) to care for a family member for more than a day or two?

Companies where income freedom is more important than time freedom can be harder to sell if the owner is critical to day to day operations.

Either way, the important thing is knowing what you want & structuring your business to support that over the long term.

Photo by USAG-Humphreys

Categories
Entrepreneurs Small Business startups

Lessons from working at home

Geoffrey James put together a good list of 10 lessons learned from his 10 years of working from home. I’ve worked at home (and in my kayak, as shown above) since 1999 so I thought I’d chime in on the topics in his list.

1) Solitude: Solitude can be addicting, but like all good things, you can’t let it become a required condition for work (See #3). Pros perform well regardless of crowd noise.

2) Cut your hours: “you’ll be able to get twice as much done in half the time” – This can be true, but never assume it will happen simply because you’re working at home. Other interruptions that only happen at home can fill the gap left by interruptions you’d only encounter at the office. You have to manage your work environment and interruptions in both places.

3) Avoid Starbucks: Working at a neighborhood coffee shop has positives and negatives. If you’re likely to run into a bunch of people you know, go to a different shop. I used to do this a couple times a week simply to get out of the house back when I wasn’t traveling much. In a small town, it’s very likely that you’ll run into someone you know and that can easily consume an hour of time intended for real work, so don’t set yourself up for that. Going to a shop where you won’t likely run into friends / clients / etc will eliminate the interruptions. Some people filter the white noise of a coffee shop better than others, so use headphones if necessary. Avoid coffee shops that don’t use the sound-proofing systems for their 110 decibel smoothie machines / blenders. Learn to work productively in these environments because you will inevitably find yourself needing focus time in an airport or out of town.

4) Stay out of the kitchen: The draw of the fridge is a big one because it’s so convenient.

5) Limit gaming time: I’m not a gamer, but if you are, manage it as well as you do trips to the fridge or you’ll find yourself out of work and/or out of clients.

6) Don’t setup shop in the bedroom: James is right on point on here. Anywhere but the bedroom, for so many reasons.

7) Limit phone time: This depends on the work you do, of course. I strenuously avoid taking calls without an appointment – particularly conference calls. If you can’t do this, “train” co-workers (or clients) when to call you (if you can) or try to schedule planned calls immediately before or after another disruption to focus time (such as another meeting). Even if you can’t get anyone else to change their behavior, it’s on you and no one else if you pick up the phone during focus time. You’ll likely have to remind clients that you don’t allow interruptions from other clients when working on their stuff, and that this rule works for everyone equally. If you need to be available in an emergency, give people a way to let you know they need you ASAP. Text messaging works well, but only for people you aren’t regularly texting with.

8) De-clutter: This is a battle for me. The Fujitsu ScanSnap 1500 helps immensely but you have to stay on top of it.

9) Be comfortable: Absolutely. Comfort, proper posture and ergonomics are critical whether you’re at the office or at home.

10) Don’t assume telecommuting gig will last forever: I’m a bit contrary to Geoffrey on this one. I don’t care what Marissa demands of Yahoo employees. Each of them had to decide to accept the changes she demanded or find another job. Make your choice and make the best of it, or deal with the lack of choice until you can make life and/or career changes that allow you to resume working from home. If telecommuting is what you need or want, then you must use the ability to telecommute as a filter for clients and employers. I understand that some work must be done on premises. For the work that doesn’t, the best people for a project or a job don’t always live where the company is. Businesses who don’t recognize this sharply limit the talent they can leverage.

Working from home is a great thing most of the time. Preparation of your telecommuting environment and management or yourself & others are critical to doing it well.

Categories
Automation Business culture coaching Customer relationships customer retention Employees Habits Improvement Personal development Small Business strategic planning The Slight Edge Time management

The most expensive, most stressful thing on your desk

Nothing destroys a work day like distractions.

Ever realize that it’s “suddenly” dinner time and all you remember doing since lunch is reading Facebook?

That’ll show up nicely on a deposit slip. Hello, stress.

Distractions are a product of your work environment, your work habits and how those two things are communicated to others.

Your work environment

What you surround yourself with is critical to your work. Clutter doesn’t help – and I mean clutter of all kinds – physical as well as electronic.

These things are waiting to distract you, so you have to eliminate them from your work environment. Eliminate doesn’t necessarily mean trash.

Electronic clutter is particularly distracting to me, so I’ve surrounded myself with systems that “protect” me from it. Instapaper helps me get rid of open browser tabs that I was saving to read. Things, a GTD-oriented system, helps me store ideas and to-do items on notes, in my head, in emails, etc.

Because I know they’re not “lost”, they don’t clutter up my browser, mind, desk or subconscious. Don’t take the last one lightly. Worrying about forgetting something is very distracting.

Random phone calls are also a form of clutter, so I only take calls by appointment (with very few exceptions). I know – you think you can’t do this without losing sales. I thought the same thing.

My tools may not fit you. Use what fits. Discard what doesn’t.

Your work habits

Last night at a local restaurant, I spoke with one of my Scouts who’s home from college for the summer. He’s in amazing physical condition and has been for years, despite being a skinny little guy years ago. He says people often say they want to “look like him”, but they don’t want to do the work he did to get that way.

He tells them it’s as easy as working out every day, which may be hard to do until it becomes a piece of your life you aren’t willing to give up for anyone – even your immediate family. That hour a day that no one (or nothing) can take from you for any reason isn’t neglect. It’s building a better you so you can be better for them.

Habits are just as critical at work.

One of my mentors would growl “Just do more of what matters. Make more time by doing less of what doesn’t.” While he’s right and yes, it’s common sense, most people need help doing it.

Consider the three most important tasks you need to finish next week. Do you have to think about it to remember them? That’s not good.

I use my calendar and Things to tell me those three tasks. Neither tool forgets. I review Things every weekend and schedule work tasks on my calendar as if they were meetings, speaking gigs or other commitments.

In an age where you can watch TV on your phone and people can contact you almost anywhere, you have to take managing yourself seriously. Scheduling things (even blog writing) in my calendar is how I make sure that the important things get done – including family stuff and paying bills.

A full calendar makes it easy to say no to less important things you don’t have time for. If the important things like work and family are booked first, stuff that doesn’t matter enough has no place to go.

How those two are communicated to others

People appreciate when you don’t immediately answer your phone, but always return their call.

People appreciate when you don’t immediately reply to an email, but always reply.

People appreciate it when you don’t miss a ball game, a play, a concert or a night out, even if you have to work afterward.

When people see you glance at and then ignore a vibrating phone while in a meeting with them, they’ll ask about it the first time. When you tell them that you aren’t answering because you booked this time solely to give them 100% of your attention, your previously “unreasonable” call policy suddenly becomes reasonable.

If you work (or play) with focused attention, people will notice and appreciate it.

You mentioned stress. What about that?

How much stress would you have if you didn’t forget important things and routinely completed them?

 

Visa_small_biz_infographic_060713

Disclosure: I am blogging on behalf of Visa Business and received compensation for my time from Visa for sharing my views in this post, but the views expressed here are solely mine, not Visa’s. Visit http://facebook.com/visasmallbiz to take a look at the reinvented Facebook Page: Well Sourced by Visa Business. The Page serves as a space where small business owners can access educational resources, read success stories from other business owners, engage with peers, and find tips to help businesses run more efficiently. Every month, the Page will introduce a new theme that will focus on a topic important to a small business owner’s success. For additional tips and advice, and information about Visa’s small business solutions, follow @VisaSmallBiz and visit http://visa.com/business.

Categories
Entrepreneurs Small Business startups

The most expensive minute of your life

Starting over in business
Sometimes you just have to know when it’s time to move on.

To that end, a quote from James Altucher:

My first business I sold for $15 million. We built websites for entertainment companies. Bad Boy Records, Miramax, Time Warner, HBO, Sony, Disney, Loud Records, Interscope, on and on. Oh, and Con Edison. Mobb Deep would hang out in my office. Trent Reznor from Nine Inch Nails would stop by. RZA from the Wu-Tang Clan would want to play chess.

Then I saw that kids in junior high school were learning HTML. So I sold the business.

Are you ready (much less willing) to get out of the game you’re in?

More importantly, are you ready to start over?

Starting over is hard. It tends to take longer than you expect. It will probably cost more than you expect. But…if you see the handwriting on the wall, every minute you wait is even more expensive and painful than the last.

Categories
attitude Business model Entrepreneurs Leadership Small Business startups strategic planning

What makes an entrepreneur tick?

Lots of nuggets here for small business owners in this panel video from Stanford Business.

There isn’t much need to watch this, but certainly worth a listen for you as well as perhaps family members, managers and yes, even your line employees.

I like the diversity of the panel, from a guy who quit high school and sold his business for $40MM before he was 18, to an engineer, to a woman twice denied partnership.

Categories
Community Competition Corporate America Creativity Economic Development Entrepreneurs Leadership Positioning Small Business Software business strategic planning Technology

Not a nerd? Not a problem.


Creative Commons License photo credit: f_mafra

If you’ve been reading what’s going on in the economy, it seems like a fair percentage of the new jobs that are still out there are going to technical people.

Even today in Silicon Valley, the number of applicants in the job pool for a specific skill are roughly equal to the number of open jobs in that niche.

Meanwhile, local employers here in Montana are telling me they get 100-300 resumes/applications for every open job they post – which isn’t too many right now.

Every day, more and more jobs involve technical knowledge. Even tattoos are technical these days, as evidenced by the ink on this girl’s neck.

It’s html, the language used to create web pages.

Technical people

When I say “technical people”, I mean programmers, engineers and similar folks.

While some of the work these folks do can be outsourced, the work that isn’t tends to require local cultural context that isn’t often available to the technical person in another country.

Cultural context means a knowledge of the culture of the target market for the product you’re designing. Some products require it, some do not.

For example, an electrical engineer in almost any country or region of the world can design a cell phone component because “everyone” knows what a cell phone is and how it’s used.

The same isn’t always true when the design target is something in the cultural context of a particular area.

If you are in the U.S. or Canada, would you know the important aspects of designing a motorized trike designed for the streets of Delhi or Shanghai? Probably not, unless you have traveled extensively and spent time in those places.

That doesn’t mean you can’t learn those critical design points or someone from that region can’t learn those specific to work in the U.S. and Canada, but there is a learning curve.

Not all jobs require that context. Quite often, when you look at the jobs that have been outsourced, you’ll find that those jobs were lost because those jobs *can* be outsourced.

That doesn’t mean they aren’t technical. It simply means that they are technical but anyone with the skills can perform them – no matter what culture they grew up in.

Lots of people get really angry about that, just like they got angry at steam engines, the cotton gin and other advances that changed how our economy works. Meanwhile, that outsourced job went to some guy in somewhere who’s trying to feed his kids like everyone else. He might be making $1.10 a day doing that work, but it could be twice his previous pay.

Regardless of what the pay is, that’s a job that COULD be outsourced. Technical or not, it’s too general.

I received this (redacted) email from a friend today who has forgotten more enterprise network stuff than I’ll ever know.

So now I have another big contract.

These guys build big infrastructure for municipalities and large facilities. Perfect shovel ready stuff for millions of dollars and several years putting America back to work.

My job …. getting a working solution that allows them to move the technical work to a big city outside the US. Seems those folk need the work a LOT more than their counterparts who happen to be in, of all places, a city here in the US).

This is not the first time I have had a project where the purpose was to move American jobs overseas but it sucks more and more each time.

Add the that the fact that the Sr. Management team for this company is amazingly draconian with amazing bad morale and it proves that some people truly have just about sold out to the highest bidder.

The technical work being outsourced here is highly technical, but it is also generalized. It has no local context that matters, has nothing substantial to differentiate it, nothing to keep the work from being done elsewhere, whether elsewhere is Kansas or Kazakhstan.

Not a nerd

What if you aren’t “technical” in the context I’ve described here? Let’s say you’re a cabinet maker (which to me seems very technical).

Have you made the effort to determine what needs these specialized businesses have? Their success and their specialized needs might fuel yours.

Just an example, but worth some thought and perhaps, some effort.

Not being outsourced is as much your responsibility as anyone’s. Make the effort.

Categories
attitude Business culture Business model Competition Creativity Customer relationships Economic Development Employees Entrepreneurs Leadership market research Marketing Positioning Small Business strategic planning The Slight Edge

Uncertainty and Starships

Today’s uncertainty has a tendency to freeze people’s behavior.

It makes us forget, even momentarily, that doing nothing or continuing to do the same old thing may be more risky than doing that next big thing on their strategic plan.

That doesn’t mean you have to take giant expensive steps like people did in 1999-2000 or in 2005-2006 when almost anyone could act big and get away with it.

When everyone else is hunkering down, even more opportunity is left available to the observant and aggressive – even if they are careful.

Are you looking at mergers, acquisitions, strategic partnerships, cross-marketing, new markets, derivatives of your existing products and services? Are you looking harder than ever for those things that can bridge you into your next big thing?

Those are all worthwhile things to consider, but have you considered your customers’ situation? What has today’s economy done for their needs? What’s the uncertainty done to them and their customers?

Have you visited your customers lately, even if you have to do so by phone, Skype or Facetime? What’s on their minds? What’s their biggest concern that didn’t exist a year (or 3) ago? How can you help?

Sometimes a quiet moment of thought yields ideas that your noisy day, week, month wouldn’t let through any other time.

Likewise, a quiet conversation with your smartest customer.

  • What can you show up with that would provoke an Aha! moment?
  • What can you do to tighten your relationship with your customers?
  • What would seal your reputation in their minds as as business that is all about making sure they are doing well?

People start businesses for a lot of reasons. They aren’t necessarily doing so for the comfort of a job but often for something else. Perhaps for the same reasons man will someday step onto the deck of a starship… because risk is our business.

Categories
attitude Business culture Competition Entrepreneurs Improvement Leadership Small Business

Ever have trouble breathing?

Ever have trouble breathing?

Maybe you got hit hard and had the breath knocked out of you or maybe you choked on a McNugget. Doesn’t matter because while you were choking, you only wanted one thing: to breathe. Everyone knows that desire, which sets the stage for this video.

In the video above showing Giavanni Ruffin’s workout, you should know that he doesn’t play football at Miami or Nebraska or LSU or Southern Cal. He goes to East Carolina. Not exactly a name you see in the national championship. Yet that doesn’t seem to alter his work effort. He clearly has bigger aspirations.

Once you’ve seen the video above, you may want to hear the remaining 10 minutes of this Eric Thomas’ talk. Below, you can see the original two-segment piece recorded as he spoke to a class at Michigan State University.

Want more? Here, Eric channels Jim Rohn (“the 5 people closest to you…”).

Think back to the story about the athlete who wants to be rich and whose head is being held underwater. Think about how hard he fought to get back above the water and breathe. Think about how bad you JUST WANTED TO BREATHE the last time you were choking.

Now focus that level of desire on your business.

Ask yourself the question Eric asks….How bad do you want it?