Three posts in 7 days – this is a record.

I was talking with a professional acquaintance the other day and was fascinated by her stories and the amazing experiences she has had.  After listening to these stories, it was easy for me to point out specific aspects of those stories that really highlighted her uniqueness as a consultant and the valuable perspective, skills and capabilities she has to offer.

Of course my advice to her was to write these stories down and share them on her web site, blog – or in a book.  Easy to say, harder to do for many of the reasons I listed last Friday.  I then suggested she write one or two stories in the next couple of weeks and send them to me to read.  When she turned the tables and suggested we hold each other accountable for writing something I found myself ‘balking’ at the thought… which she immediately picked up on.  I was a bit embarrassed and mumbled something to try to justify myself; but it was a telling moment.  I heard the echo of my dad’s voice saying ‘do as I say, not as I do.’

I have always found it so much easier to create structure and accountability for someone else than to do it for myself.  I don’t think that I am alone in this given that there are so many counselors, therapists, spiritual directors, coaches and, yes, consultants around.

Most of us have learned that an outside perspective along with some external accountability can be life-changing.  Three years in the Army taught me that very quickly.  I often use the personal trainer effect to illustrate this truth.  Another truth is that there is always a tendency to revert back to the mean.  I’m proof of that as well.  When I stopped seeing my personal trainer, I reverted to my old exercise habits (or lack thereof) and watched the results of all that earlier time, effort and financial investment slowly slip (sag) away.

The moral of this story? An outside perspective and some external accountability really can be life-changing.  But sustaining and building on that change usually means continuing the practice of seeking that outside perspective and external accountability on an ongoing basis – even when we don’t think we need it anymore.

A recent Wall Street Journal Article (WSJ 8/31/12) ’The Economy Stole My Retirement‘ presents the issue of small business owners who can’t sell their businesses – at least not for the amount of money they want or ‘need.’   They blame the economy for being ‘robbed’ along with many aging baby boomers exiting their businesses in the coming years (one way or another) creating a glut of businesses for sale.   It’s like the housing market; depressed values and a lot of inventory.

On the other hand, houses are selling every day; some more quickly and at a higher price than than others.  A well maintained and updated house in a desirable location with curb appeal, a solid foundation, a smart layout and nicely finished interior is going to attract more attention and fetch a better price and terms.   And, even if it doesn’t sell as quickly as expected, it is much more enjoyable to live in.

Like a house, there are ways to increase the value of your business in any economy; like making your business less dependent on you being there.  Some things are simple (not easy) like changing habits (stop stepping in so fast to solve problems yourself), being intentional about staff formation, and delegating more effectively by being clear about purpose, outcome and accountability.  Other improvements require a financial investment like hiring the right people and updating technology.  Avoidance and delay is the well-worn path of least resistance, but “deferred maintenance” is always more costly in the long-term.

So, what kind of shape will your business be in when the time comes to sell?  Will it be prime property or will you be trying to unload a fixer-upper…

Twice this week I have been told by respected colleagues that I need to write about the stuff I am talking about with them.  Writing (or my lack thereof) is a theme that keeps coming up for me; yet it is something that I have failed to do (with any consistency).  Thoughts, ideas and perspectives that come out clearly, concisely and confidently in conversation become complex, convoluted, and confused when I begin to write them down.  Even before I start, the interior dialogue begins…

“Why bother… Hardly anybody looks at my web site anyway…”

“There are SO many people writing SO much cr@# already.  I don’t need to add to the pile…”

“Everyone knows this stuff already, it’s common sense…”

“What I have to say isn’t new or special…”

“What if I write something really stupid and people DO read it…  Forget it…”

If I get past all that and actually begin writing something, then the dialogue becomes analytical to the point of paralysis…

“That idea could be looked at many ways – there are so many exceptions – too many variables…”

“That concept may apply to certain people/businesses, but not to others. Why bother…”

“Ugh… Too many words – I’m confusing myself !!!”

“Hmmm… Maybe I can distract myself with some unecessary task so I have an excuse to stop…”

“Arghhh!  I’ve spent 6 hours on this stupid post and I’m still no-where.  What’s the point!  forget it…”

However, on this Friday afternoon, I have persevered to complete this.  That way, if someone comes to my blog, they will understand why there aren’t very many posts there (especially not recently)…  Of course if I were to start writing more consistently, this post will get buried and all will be ok then too…

By the way.  If any of you clients/colleagues/friends read this and think “What’s the heck is Fred doing posting this bunch of cr@#…”  please email me right away so I can delete the post before people who don’t know me run across it…

When I talk with business owners about the focus of my work, this phrase seems to speak to them in a relatable way.  A lot is wrapped up in these words both from a business and a personal perspective  (It also kind of rolls of the tongue and is a good conversation starter).  Taking each a step further:

Growth:  The ability to operate profitable and increase the value of the business.  It’s about developing people and processes while leveraging resources and technology in ways that preserve and expand those factors that made the business successful in the first place.  It is also about the growth of the owner as an individual – changing habits and priorities in support the goals of Growth, Innovation and Emancipation.

Innovation: Having the time, focus and awareness to think strategically along with a strong, flexible operational foundation that can respond to opportunities and improvise without losing control or damaging the core activities of the business.  It also means developing the entrepreneurial capability of employees – especially those responsible for allowing the Emancipation of the owner(s).

Emancipation:  Reducing the operational dependency the business has on the owner allowing him/her to focus on the important – both in and out of the business.  It means developing customer and employee loyalty to the business and not to the individual owner.  It is about creating intrinsic value in the business and laying the groundwork for exit and succession.

No one discipline is responsible for achieving Growth, Innovation and Emancipation.  It is an ‘integration’ and ‘synthesis’ of all aspects of the business – tangible and intangible.  It requires taking into consideration the top-down, bottom-up, inside-out, outside-in view in charting a path from the current reality to the ideal vision.  The effort is exciting, challenging and rewarding since every individual owner, business operation and market is unique.  Certainly there are some common principles and frameworks – but no one size fits all. Each must work toward and achieve Growth, Innovation and Emancipation in a way that work for them.

So what’s the purpose of this post?  Simply to express the term Growth, Innovation and Emancipation as the coinage of my realm.   I thank my client Monty Rostad for initially ‘coining’ this phrase for our work together and then graciously allowing me to use it as my calling card.

Customer Relationship Management or CRM is and has been a hot topic for quite a while.  CRM may be a popular acronym, but it is a misnomer since Customer (or other) Relationships aren’t ‘managed’, they are initiated, developed and maintained through quality interaction, good communication and the exchange of value.  CRM refers to a system of tracking information and is simply a tool or a ‘means’ to achieve the ‘end’ of great relationships with the right customers who are loyal, profitable and refer others like them.

These days there is no excuse for not knowing a whole lot of things about your customers that can help you understand them better and serve them more effectively (or let them go). It just take some thought and a bit of effort – and you don’t need a fancy system or a huge initiative to get going.  You probably have what you need already.  Nearly all basic accounting or operational systems provide designated or ‘custom’ fields where you can track things like:

• Useful Attributes (Industry type, size, market. etc.) – to determine your reliance on (or opportunities in) different segments of your market
• Source (referral, marketing campaign, web, phone call, etc) – to evaluate your ROI on different channels
• Referred By  (i.e. another client or business associate)  - so you can track the total value the referring client or source and acknowledge and/or further develop the relationship
• Related Companies/Organizations – so you can track your concentration with any one ‘parent’ organization of affiliated group to capitalize on additional opportunities or protect from over-dependence
• Key Dates (initial, latest transaction / next follow-up date) – so you can contact those who have not done business lately and thank those who have (while offering additional value) and be sure to follow up in a timely way

And if for some reason your program really doesn’t handle this type of tracking, there’s always web based apps or good old fashion spreadsheets.

I was pointed to Evernote by a client recently – and I love it.  I can consolidate my notes from any source, keep them organized and view them from any where on any electronic gizmo I might be using at the time.

Check it out www.evernote.com.  Tell them Fred sent you.

Choosing to build your business as a valuable asset versus a paycheck has a significant impact on how you invest your time and resources. An asset requires a strategic perspective and a consistent focus on management (hence the term ‘asset manager’ in the financial world). A paycheck requires putting in the time to do the job you get paid for (and for business owners, that’s one paycheck for a lot of different jobs).

Many owners fall into the trap of working so hard for a paycheck that they lose sight of their business as an asset. That is, until they want to sell and wonder why the business isn’t worth as much as they think it should be.
If you want to build an asset that pays its manager a salary, throws off a good income return and delivers a strong capital gain you need to focus on the right things to make that happen – like these ten I wrote about a while back. the sooner you take action the more value you will gain (think compounding).

As Seth Godin says with his elegant simplicity, don’t confuse building a job with building a business. Either approach is fine – as long as it is a conscious decision.
Other Posts related to this subject:
Nearly every post I have written…
One of my recent favorites…

It seems that every day we hear about some internet security breach where sensitive information is stolen or put at risk. With so much data sent flying over wires and through the air, it’s not surprising that keeping confidential information secure is more difficult than ever.
Our dependency on computerized information means data security needs to be addressed by businesses of all sizes. The complexity of this issue is growing and ultimately you can’t control what happens on the Internet. Just don’t overlook the basics that you can control… things like:

• Making sure you have the latest software updates and security patches installed

• Using anti-virus software and keeping it updated
• Logging out or shutting down computers at the end of the day
• Using strong passwords and changing them consistently
• Making sure that your backup media is protected (and usable)

Simple practices such as these can significantly improve security. Ignoring them is like leaving your house with the doors unlocked, windows left open and the alarm system turned off.

Most of us have heard the expression “the elephant in the room” as a metaphor for a significant issue or problem that is obvious to nearly everyone yet still get’s ignored. These are usually emotionally charged issues that are hard to deal with so it’s easier to pretend they are not there.

Successfully running a thriving business depends on timely, accurate information that aids you operationally as well as financially.
For many owners, the only information system they have is their accounting software. These programs are usually set up by accountants for the primary purpose of financial and tax reporting. These purposes are certainly very important and appropriate. But when it comes to running your business the tools and resources that your accountant finds useful may not provide everything you need to make informed decisions. For instance:

• Making real-time decisions about deploying cash or acting on potential collection issues

• Tracking profitability by channel, product line and customer
• Measuring productivity along with the true cost of delivery
• Understanding trends and comparing your performance with industry standards

Even if your software (e.g. Quickbooks) has the necessary reporting capabilities, your accountant may not know to provide you with this type of decision support information. If you are not getting it, ask for it.
When it comes to utilizing your information systems remember that you are in the driver’s seat of your business and your needs come first.