Tricky Truths in Small Business
Posted by: craigj under Uncategorized
Tricky Truths:
If you own a small business or are planning to, there are a few tricky truths you may be looking at.
The enthusiasm for small business startups is high and getting higher – but the success rate is low – 4 out of 5 are gone in 4 years.
So why do so many small businesses fail?
The SBA offers three reasons:
- Inadequate capital
- Inadequate experience
- Inadequate planning
For the next year, I’d be writing a small-business newsletter designed to meet conditions #2 and #3. (Sorry I can’t help with the capital!) I’d be looking at all the issues around building a small business that bedevil the entrepreneurs Why can’t you get good help? Why is everything urgent? Why are you working twice as hard and making half as much?
And there are the other issues’s should you incorporate, write a business plan, hire your dumb brother-in-law because he’ll work for next to nothing, and so forth.
Here’s an abbreviated outline’s the real deal runs 5 pages.
- Envisioning the business – plan no small plans around mission and vision.
- Creating the business – goals, corporations and incorporation, finance.
- Marketing- strategy and tactics.
- Writing your business plan – not easy, not hard either
- Building your human resources – choosing, training and managing
- Using experts – accountants, attorneys, consultants, coaches
- Market research – should you?
- Protecting intellectual property – copyrights, patents, trademarks, trade secrets
- Setting up your office - computers, phones, other equipment, people-needs
Are you still with me? Here’s a bonus – I’ll send you an idea for a self-assessment that surprises most entrepreneurs, and helps small businesspeople decide where to do it themselves, and where to ask for help. Just send an e-mail to craig@craigjennings.com.
Invitation to the Dance
Posted by: craigj under Uncategorized
An invitation to a New Year’s Dance
How do you get you going? How do you commit to a plan or set of tasks, get them done, and then move on to the next steps? How do you avoid the “I’ll do it later” syndrome, or the “I’ve gotta deal with these emergencies first” where the former is probably nothing but a stall, and the latter possibly an avoidance.
So let’s have a look at how you get yourself moving this New Year. I’ve identified two little dances, and you can choose between them.
Dance #1 - Let’s call it the Failure Fandango!
I have a picture of an elegant woman in a red dress with castanets, Spanish guitar music, and a dark shadowy partner that I can’t quite make out. They’re dancing around in a circle and they’re doing the Failure Fandango. And I know the dance! Have you ever done it? It goes something like “Darn, that really wasn’t good at all. I’m really awful. I’ll never get it right. I need to look at how dysfunctional I can get and kick myself in the butt so I can drive myself forward.”
What’s powerful about this approach is that every time you fail, you can use this to drive yourself away from the failure point. And you’ve probably done it many times before. You may have been taught to “learn from your mistakes.”
What’s insidious about this approach is that it works only when you fail! It doesn’t work at all if your last effort was pretty successful, unless of course you find the one thing that didn’t work according to plan, and slam yourself for that! Does this ever happen for you? What happens if you do something well, and someone compliments you for it? Can you just say thank you, or do you have to deprecate your way out of it?
Summary: In order to employ this “kick in the butt” motivation technique, you must fail or identify something you did as a failure. Each time you try to move forward with success, professionally or personally, you take yourself out of the reach of the “kick in the butt.” Therefore, if that’s your primary motivation technique, you just don’t dare get too successful. You have to create failure somewhere in order to get yourself going! What a strategy!
Consider that this is kind of a cyclic process - and here are the career steps.
- The kick (ouch!).
- The move forward, one or two steps Olè!
- The full stop. (Discovering that your favorite motivational technique is no longer available)
- The move backward (failure).
- You’re ready to begin the cycle once more.
I have to admit that this sounds a little absurd - why would we do something so elaborate, and something so inconsistent with our best interests?
OK, then try this on. Have you ever heard the lyrics to the Failure Fandango?: “I’ll never get it right”,” I’m no good at that”, “I always mess upÖ”. Have you ever heard this coming out of your mouth? Do these conversations put you back into the Failure Fandango?
Dance #2 - Future Foxtrot!
First, blow off the guitar and the lady in red. We’re going to need some cool jazz, or maybe the choral piece from Beethoven’s Ninth. Now, on a metaphorical chalkboard, draw yourself a picture of a future where things are working well for you. Let it include money, relationship, career, etc. - all the issues or values that are important to you. Leave ancient history out of it - just imagine a spectacular future, and write it down. Call it your vision. Write it down in detail.
The steps to the Future Foxtrot..
- Imagining a desirable future.
- Writing it down.
- Setting up long and short-term goals, waypoints or milestones.
- Getting in action around some of them.
This can really be a fun experience. If you find yourself leaning back towards the Failure Fandango, catch yourself as soon as you hear that music, and see if you can really create a great possibility, a future for yourself that’s spectacular, your own personal “I have a dream”.
We both know that if you create a dream there’s no guarantee you will achieve it; but if you don’t create a dream or possibility, there’s every guarantee you won’t achieve it!
So this is my New Year’s offering to you - creating a future so compelling that you can avoid the Failure Fandango, cavort with the Future Foxtrot and finally achieve what you always knew you could
Ahem! I’d like to offer my coaching services here to those who want to tackle this project but aren’t sure they can make it on their own. I have 2-3 slots open for people in this kind of inquiry - if this makes sense to you, send an email to craig@craigjennings.com and we’ll talk. If you are a little cautious, first go to my website at www.craigjennings.com and check it out - please check out the testimonials while you’re there, and call the people who’ve used me successfully in the past and left you telephone numbers for that purpose.
And finally, my very best wishes for your amazing New Year. Mine’s going to be great, and I hope you’ll dance with me!
The Planner vs. the Free Spirit
Posted by: craigj under Uncategorized
Tip #3 - The planner vs. the free spirit as CEO.
“Life is day-to-day. Don’t bug me about long-term plans. Haven’t got time. Ya gotta take care of today’s business today.” Have you ever heard yourself say that? On the other hand, you know that planning is something you “should” do, and you know how you deal with things you “should” do.
Here’s the promise. If you spend two good hours on this process, you’ll notice positive results in 30 days and they won’t ever stop coming.
If you’re currently running a small business…
Would you like to see a serious positive change in your results in just 30 days? I’d like to persuade you to take on a form of business planning that some avoid, and some treat pretty casually. If you already do all this, by the way, send me an e-mail, and tell me what your planning routine is.
If you don’t have a serious business plan, you’re rowing a boat where the water comes right up to the gunnels. First, the damn boat is very hard to row and maneuver. Second, the least wave, the first weight shift, and you’re a submarine.
You may have taken my class, where we looked at 2 elements of a business plan. One was the focus for the whole life of the business - a mission and a vision. A second was a set of goals - long-range and short range. Specifically, at least 3 goals for 1000 days out, and a short-range plan - at least 3 goals for 100 days out or less. If you want to see how much control you are really exerting over your business, make an additional set of weekly goals each weekend. (By definition, a goal is something that vanishes when you achieve it.)
What happens when you set a goal and fail to achieve it? You just learned something very important. (It’s called failure, an extraordinarily valuable business collectible, about which more in a later installment.)
If you haven’t started your business yet…
Isn’t it great that you still have some time to do your planning?
Whichever the case, let me spell it out. I request that you take yourself to the outhouse or to Starbucks with a notebook and pen. Build yourself a vision, a mission, and some goals. Here’s the structure.
Mission: A target which, completed, describes your business as a success.
Example: Christopher Columbus explains to his men, and Isabella, that they will find a new trade route to the Indies.
Vision: A possibility which is somewhere between unreasonable and impossible.
Example: Chris says - we’re going to go East by sailing West.
Another example of both in one statement: Bill Gates says: I want to see a computer on every desk and Microsoft software on every computer!
Sounds easy, and it’s not. It may take a friend or colleague and more than one Latte Grande to get a vision and mission that will each fit on a Tee-Shirt. I’m open for a call if you get stuck.
Long-term - 1000 day - goals. Make three. Make them specific, measurable.
Short-term - 100 day or less - goals. Make three, as above.
OK, I’ve got the mission, the vision and the damn goals. Now what?
1. Put them up on the wall!
2. Read them out loud once or twice a day.
3. Share them with a friend or colleague.
4. E-mail them to me. Email them to someone else.
5. Take them seriously. It is part of the process of creating. You really are creating your business - and this is exactly how you create your future.
6. Watch what happens. You’ll notice positive changes in 30 days.
Options:
For a Mission-Vision-Goals worksheet, send an email to craig@craigjennings.com. Put MVG in the subject line.
Creativity in Business
Posted by: craigj under Uncategorized
February - Is Creativity an airy-fairy notion, or an absolute requirement for the small-businessperson?:
I admire artists and poets. But I say to you that a peak creative effort is to envision something in business, to say it’s going to happen when no-one else can see it, and then make it happen according to your vision. You may not get mentioned in the same breath as Rembrandt or Mozart. Your friends or your spouse may take your creativity for granted. But you can’t make a small business work without it. This note is to ask you to examine your own creative force, and give you some tips on calling on it when you need it.
3 Observations:
Observation #1. - “Creative” looks differently, depending on your point of view.
1. Creative is glorious when you’re in the early planning stages. “First, I’ll get this, then I’ll do that, then I’ll conquer the world.” You’re not even at the level of reality TV!
2. Creative is a real test when you actually enter the business world - how much money are we going to need for how long and where do I get it? And who is “we?” Or -”I don’t have a clue how much I’m going to be making, and you’re talking about a 10-year lease, for $480 thousand dollars!”
3. And, finally, creativity looks like a reliable partner when your business is running and you must create the plans for income, and then create the actual income, every month.
Observation #2 - How do you keep it up? It’s like The Magic Lamp - just rub harder and faster!
1. One of the best examples of creativity starts with “In the beginning there was the word.” You remember what that started!
2. You will fundamentally risk making a damn fool of yourself day in and day out by telling yourself and others what you are going to do, even when you’re not sure you can pull it off. You will get your creativity going the same way - with the word -
* by speaking it,
* writing it,
* declaring it,
* publishing it
* And then, making it come true.
Observation/Question #3 - can you keep creativity coming when you’re too busy to be creative? If you wait for the moment to strike, it may be a long wait. One creates his/her business by sitting down to do just that. Try this outline.
1. Set aside 1 hour a week.
2. Have a look at something you need that you don’t have. Or something you have that you don’t need.
3. Think about creating your business within the framework of change you’ve just described.
4. Keep notes and save them. Even if you come up with zeros today. When you sit down next week, have a look at where you’ve been. You may surprise yourself.
* When you come up with an idea, nourish it, publish it, and schedule it! a. Nourish it - write it down in detail. Don’t edit, just keep the ideas coming until you’re empty.
* Publish it - put it up where you can see it. Tell other people about it.
* Be on guard for the “it won’t work” response, usually our first response to someone else’s imagination. If you get that response, use the word “why?” repeatedly. See what you learn.
* Schedule it - plan a date when your new idea gets adopted, a date when it gets implemented, a date when it becomes a fundamental part of your business. Then watch what happens. The world will teach you how important creativity is to business.
Conclusion: The creative businessperson is not an oxymoron, s/he’s an occupational necessity.
Owner vs. CEO vs. Chief Employee
Posted by: craigj under Uncategorized
Good news / bad news:
You and I have the power to win or to lose. We can create a business of extraordinary power, or… Some 500,000 of us end a small business each year, mostly because we just give up. What an amazing movie! It has multiple endings, a cast of thousands, and you and I have a starring role!
Here are some “truths” about small businesses, yours and mine.
1. They’re defined by an idea that appeals very much to you, or to me.
2. They’re usually run without a detailed and well thought-out plan.
3. 3. Owners frequently work twice as hard for half the money as when they were employees.
How are you different from the usual small-business owner? Which of the “truths” above don’t apply to you?
Schedule: I’m going to publish this newsletter monthly. I’ll try to include tips for the businessperson who’s up and running, and for those who are still in the planning stage.
If you’d rather not receive it, just click here.
Tip #1 - Owner vs. CEO vs Employee - how do you manage being all three!
Would you, as an owner or CEO, keep you on, as an employee? My compliments to John Hajisava of http://globalresultsunlimited.com for expressing the concept (and for trying it out on me!)
1. You need to see yourself as a company. You first are the owner. “Owner” means you have money in the business and you want more money out. So you the owner measures each month in terms of return on investment. What did I put in? What did I get back? For many entrepreneurs these are unpleasant questions. But you have to face up to them each month or each year to determine the value of what you own. Did a friend, relative or bank put up some money? They’re asking the same questions, aren’t they! You need monthly answers. It’s the owner’s business to know what’s so. Are you working between 1-4 hours a week as an owner?
2. You need to see yourself as a CEO. You have a vision of what the business can become, a mission, complete with short and long term goals, and a purpose (which last may not be entirely about money.) You are responsible for all the strategies and tactics of running this business, from Marketing and Sales to Accounts Receivable and Accounts Payable. Are you working from 5 to 10 hours a week as a CEO?
3. You need to see yourself as the key employee and manager. You are doing most of the work, or making sure it’s getting done. Has the owner provided enough money? Has the CEO created a vision which lights you up, and provided goals which you are striving for? Are the working facilities and personnel adequate to the task. And have you noticed that, as an extremely close relative to the Owner and CEO above, that you take advantage of that relationship and don’t work hard for 40 hours a week.?
Sounds like the Three Faces of You, right?!
Here’s how you get all those personalities to work for the one of you.
1. Agree (with those other guys) that money is the primary reason for being in this business. Be very careful about the CEO who wants to make the world a better place. That rarely pays and is often a cover for not having a clue on how the business is going to work.
2. Create a very simple monthly report. Call it the Owner’s Report. It will include:
* Capital on hand
* Income
* Outgo
* Income - Outgo = Profit or (Loss)
* It can include projections for future months.
3. Create/revise your business plan. I’m assuming that you got started without much of one and have managed OK. If you’ve taken my teleclass you have a 9-point worksheet, if you’ve taken my full course, it’s much more detailed - and the good news is that you’re brilliantly started. But a bank is going to want to see from 20 to 40 pages worth of detail. Half of the plan is going to say in words what’s happening and what will happen. Half of the plan says it with numbers. If you suddenly hear a conversation about “I didn’t start my own business to be a slave to the numbers,” give that “employee” a kick in the ass and tell him to grow up or get out!
