You failed in your last business start-up. Excellent — play it up when you go out looking for funding in your next endeavor. Here’s why.
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You failed in your last business start-up. Excellent — play it up when you go out looking for funding in your next endeavor. Here’s why.
The primary source of learning how to lead is experience and stories. As a business strategist and executive coach I hear many life stories and learn a great deal about business owners and their leadership strengths and weaknesses by just listening carefully to these stories. What I’ve discovered is that your life story and the lessons you […]
Are you ‘sticking to your knitting?” As a business strategist and executive coach let me remind you that this is the golden rule for business in times of downturn. So why have 53 per cent of businesses spent more time planning new products and services than they did the previous year and 66% invested more resource […]
For some businesses, finding ways to build their brand through exclusivity and scarcity is a way to create special value about their product. Take Old Rip Van Winkle Distillery for example.
The company produces some of the finest aged bourbon in the world, but you won’t find it on the shelves of your local liquor store because the company only makes about 7000 cases a year.
Due to that scarcity, more often than not, stores don’t even stock the bourbon, they just let their best customers know the bourbon is on the way and the rest takes care of itself.
This strategy hasn’t slowed down sales, in fact it’s helped. The two- person, family owned company generated sales of more than $2 million last year.
By creating an exclusive feel around their product, they can raise prices just about every year while keeping demand for their product high.
Their market share is not predicated on price, it’s predicated on quality and scarcity, and that has allowed them to carve a sizeable niche and run their company profitably.
“What’s the hardest part of your job?”
“Tough conversations,” he answers with a sigh.
There it is again. Over the last six years, I’ve been conducting an informal survey in Fortune 500 companies. I keep expecting managers to say their biggest challenge is something like, “Keeping control of the budget.”
But tough conversations continue to be a serious issue. No matter your industry, or your position in an organization, engaging in important or difficult conversations is an uncomfortable aspect of our jobs.
Why? Conflict makes most people nervous, so we avoid having those tough conversations, even if we know it may produce a better outcome. A study of more than 1,000 project managers across 40 companies found that if project leaders were willing to break a code of silence, they could substantially improve their ability to execute on initiatives. This included over 2,200 projects, from $10,000 IT projects to billion-dollar restructuring efforts.
But what did the code of silence surround? The key problems that lead to most project failures: unrealistic deadlines, sponsors without internal influence, or unsupportive teams. These issues should have been addressed immediately. But the code of silence allowed them to balloon into major problems.
We have many reasons to avoid difficult conversations:
“If I ignore it, perhaps it will go away.”
“She’s so busy. I shouldn’t waste her time.”
But what happens then? The behavior continues. Many managers have admitted they are uncomfortable addressing even small issues: coming in late, failing to collaborate, and believe it or not, personal hygiene!
They avoided the issue until they had to involve HR. What a disservice to the employee, the organization and themselves! One small conversation, though uncomfortable, could have turned that person around—saved a career and avoided the need for costly actions by the organization.
Honest conversations build trust and appreciation. Everyone can tell a story about someone giving them straightforward advice. It stung at the time, but gave us insight into others’ perceptions. What a gift! Those tiny conversations are often the turning point in a life or career.
Coaching Isn’t Telling
Coaching techniques ease the pain of tough conversations. Coaching is different than supervision. It is not about telling someone what to do. It is about two people working together toward a positive outcome in performance, behavior or relationships.
Connect, learn, act. Follow these three simple steps every time you engage in a tough conversation. It creates an environment of trust, reminds you to listen more than tell, and creates a proactive action plan.
Step 1: Connect
Identify an opportunity to help.
What performance metric or behavior needs to be discussed? Example: John’s been coming in late.
“John, I’ve noticed that you’ve been arriving about 15 minutes late for two weeks.”
Are you both prepared?
Pay attention to the setting and mood. If it’s not right, set a different time.
“I’d like us to sit down and talk. Can we do that now, or would it be more convenient during lunchtime?”
State your positive intentions.
Let the person know that this is not punitive.
“John, I value everything you bring to our team. I want us all to work together.”
Step 2: Learn
Uncover perceptions.
Ask open-ended questions. They require long, narrative answers and are the opposite of closed-ended (“yes/no”) questions.
“John, could you please tell me about your mornings and your commute?”
Listen reflectively.
Reflections clarify your understanding.
“What I hear you saying is that your wife’s new job is farther away. You’ve had to reverse morning duties permanently. Tuesdays are tough since the kids take a special bus. Is that right?”
What strengths can be leveraged now?
“You are one of the best people on the team for time management. Could you use some office strategies for your mornings?”
Create a vision.
Get a picture of the perfect outcome that you can both agree upon.
“John, if you could describe a perfect week, with you fulfilling your family’s needs and being a reliable team member, what would it look like?”
Brainstorm ideas to make it happen.
“Your kids could stay at the neighbor’s for 10 minutes some mornings. We know Tuesdays are tough for you so we’ll make a 15-minute cover plan. We’ll ask Janice, our intern, to cover your desk on certain mornings. We could team-teach your expertise so others can answer questions, etc.”
Step 3: Act
Take action.
Reiterate why you’ll be taking action immediately.
“We’re making a plan right away for this new schedule because we can’t be left without technical expertise, and we want your family to have a comfortable routine. We also want the team remain supportive of you.”
Collaborate on next steps.
Choose one action for each of you to take.
“John, I’ll speak with Janice today about covering your desk on Tuesdays. You contact your neighbor to trade mornings.”
Discuss how to be successful.
“Please share your new schedule with the team. They need to understand so they don’t make up reasons.”
Set a SMART (Specific, Measurable, Action-based, Realistic, Time-bound) goal.
“I will speak with Janice by the end of today. She’ll cover your desk tomorrow. Please tell the team today about your challenges and your plan. By Friday, we’ll discuss your full plan. Then on the following Monday, you can present to the whole team.”
Commit to follow-up.
“Let’s set a meeting for next month. We’ll assess how it’s going for you, the team and your family.”
Enjoy the Collaboration
One important tip to remember: The step people usually want to skip over is Learn. People want to get to a solution quickly, and we all believe we know best, right? So after supervisors make a connection, they often start telling the person what to do. Instead, be a coach. There may be a far better process or solution inside the mind of the person you are coaching. This person has to come to a solution themselves. Enjoy learning just how creative and collaborative your team can be, and enjoy the outcomes of those conversations.
Handling Tough Conversations in 3 Simple Steps
The key to small business success has always been cash flow. With enough cash flow a small business can expand on its own with less need for credit or outside investment. Good cash flow gives small business owners and entrepreneurs the luxury of controlling the best use of their resources. It also lets them know when it is time to grow or to alter their business model meeting new demand or bringing in new customers. A challenging economy has made attention to cash flow even more critical. Here’s a look at the landscape and how small business owners can and should respond.
Cash flow is the key. If there is any legacy left behind for small business to really deal with after the recent economic recession, it is probably not just the credit crunch. If anything, according to this recent article on small business issues emerging from the recession, it is cash flow trouble, with suppliers demanding payment more quickly and customers holding back payments as long as possible, that remains the key challenge. How are you responding? Bloomberg Businessweek
Don’t make a move without boosting your bottom line. One way to respond to interruptions in your cash flow is to alter your business model, perhaps with new products or services that will boost revenue coming in your door. A few words of caution from CFO Ken Kaufman, however. Make sure any “pivot” your business makes results in more cash flow. It’s a simple but important principal while trying to remain in the driver’s seat in your business. CFO Wise
Improving your existing cash flow with tough changes. Of course, expanding or altering your business model isn’t the only way to boost cash flow. A disciplined look at your existing system may show many places where efforts can be made to boost cash flow dramatically. Check out this important post laying out five tips that will increase your cash flow and make the necessary changes now. Open Forum
Positive cash flow key for your success. The key to small business success is to develop a positive cash flow. And the best way to do that is to put systems in place in your business to guarantee that regular payments come in on time. If you haven’t got a system in place, don’t sweat it. It’s never too late to make the necessary changes in your business to bring your small business to positive cash flow success. Succeed As Your Own Boss
Do you want better cash flow in your business? Check out some of the simple tools in QuickBooks that allow you to manage cash flow for your small business. You may already be using QuickBooks as a simple bookkeeping software in your small business. But did you know that tools like the Accounts Receivable Aging Summary report can help you do so much more. Peter MacDonald of Baseline Business Services explains. Oakville Business Network
How to get your customers and clients to pay. In the end, though it may sound obvious, the best way to manage cash flow in your small business is, well, getting your customers and clients to pay you. Getting them to pay you on time would be even better. If this sounds easier said then done, please visit Katy Cowan’s post for some straightforward tips that should bring in the overdue payments…NOW! Creative Boom UK
How cash flow figures into start-up. It should be little surprise that a “cash is king” mentality is key in the start-up world where a fledgling business goes from nothing to positive cash flow based on nothing more than the ability to deliver a product or service and grow based on the revenue created. Businesses with little or no credit or outside investment have no choice but to take this route, but even start-ups with a firm financial backing must take this position sooner or later. memeburn
Surviving the slump. Though simply cutting back on spending is not a long-term strategy for small business survival, it can be an important short-term approach to the problem when a market is drying up or simply going through the doldrums. Not surprisingly, managing cash flow is an important part of this strategy and should be considered a priority especially when times are tough. The Daily Dose
Online banks launch platforms to aid with small biz cash flow. A New Zealand-based bank may serve as the model for a move to serve an expanding market of small businesses in need of cash flow. As many times as cash flow and credit needs among small businesses have been discussed in the media, it is amazing that banks have taken so long to see the opportunity here. This story may serve as both a resource for small businesses and a wake up call for the banking industry. nzherald.com.nz
Could house loans be followed by business loans and credit? This post on the banking situation in Australia poses the question of whether banks in an effort to compete for a small business market will be entering the business credit and loan niche soon. One place that loans and cash flow are definitely connected is in the area of timely payments by customers and clients and to suppliers. Credit availability may make your customers more willing to pay you in a timely fashion and make you in turn more willing to pay suppliers hence more cash flow for everyone. Dynamic Business
Small Business News: Cash Flow Tips and Basics
What kind of genius creates a product and brand that is so strong and so powerful that people will wait outside the handful of retail outlets that distribute the product, even though …
Yeah – I want to be that brand. If you hadn’t guessed what brand I’m talking about, then you must have been under a rock for the last decade or so. It’s Apple.
And the brains and vision behind the brand belong to Steve Jobs. Jobs’ unique way of looking at the world and presenting his ideas has earned him a reputation that’s nothing short of guru status.
Wanna Be Like Steve? There’s a Book for That
When I received a review copy of The Innovation Secrets of Steve Jobs: Insanely Different Principles for Breakthrough Success, I didn’t know what to expect. It was written by Carmine Gallo (@carminegallo), author of The Presentation Secrets of Steve Jobs, so I thought it might have some useful insights about how to innovate or think innovatively.
It did. The book is rooted in the Seven Principles inspired by Steve Jobs:
Overall, it’s business motherhood and apple pie, filtered through the uniquely creative mind of Steve Jobs. It’s important to recognize, however, that each of us is our own unique person, and the only person who can think or be like Steve Jobs is …. Steve Jobs.
As I was reading the book, I really got a sense of Jobs’ unique life experiences and the way he has gone about the business of living and working. When he dropped out of college, he didn’t create Apple – in fact, he didn’t know what to do, so he took a calligraphy class. In fact, Jobs has lived his life following his passion in all things.
The book puts a lot of emphasis on how he followed his heart and that left me thinking that if I had “followed my heart” as much as he followed his, I’d be couch surfing and maybe working at a minimum wage job.
There is no doubt that Steve Jobs has something special. He lives his life in a certain way; in fact, it seems that his focus was never to build an empire, but to be and do what his heart led him to be and do. I don’t mean to sound metaphysical about this, but had he not met Steve Wozniak or had he gone to an accounting class instead of calligraphy, things could have turned out differently. Apple wouldn’t be Apple.
Yet, I believe Jobs would still have the same philosophy of life. Maybe he would have opened a restaurant instead of launching Apple, but his core wouldn’t change.
Don’t Be Steve Jobs – Be YOU
I started my journey through this book thinking that it was a “How to be Steve Jobs” manual and learned that it was a “How to be your best self” manual. In between, I got confirmation on the basics of creating great customer experiences, selling dreams instead of products and all those things that pull at our heartstrings.
I’m not sure exactly what my version of Jobs’ list would be. But I’m pretty clear that this book is calling all small business owners to take a serious look at our core principles. We are all so much more than the businesses that we run.
If you’re remotely interested in CEO biographies and want additional perspective on how to transform your business, your product and how you are in the world, this is a great read. You can expect to have some light-bulb moments in the process. Maybe you’ll grab an insight about a new way to do things. Maybe you’ll decide that what you really need to do is take a dance class or go hiking on the Appalachian Trail. Regardless, you’ll come out of Innovation Secrets with your mind a little more open to thinking innovatively.
The Innovation Secrets of Steve Jobs: Insanely Different Principles for Breakthrough Success
How do stories influence others? And how do our own stories influence who we are and what we can become? In this fascinating clip from Peter Guber’s video series for the launch of his new book, “Tell To Win: Connect, Pursuade and Triumph with the Hidden Power of Story”, Tony and Peter discuss […]
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