The last post on Starting a Business was popular so I thought that I would share a very key lesson learned and then provide links to previous posts that will provide insights as you move forward with launching your own business. If you have any questions just post them as comments and I would be happy to reply.
The COVID-19 pandemic has created a great deal of uncertainty and opportunity. For many, now is the ideal time to explore their dream of starting a business and jumping into the waters of entrepreneurship. That can be exciting, fun, stressful, financially rewarding, and financially challenging, all within the same short period of time.
Being prepared for that roller coaster ride and having the ability and strength to continue pushing forward is important. Something to understand is that “Things don’t happen to you. They are the Direct Result of your own Actions and Inactions.” That may sound harsh, but here is a prime example:
When I was closing my consulting business down I trusted my Accountant and Payroll company to handle all of the required filings for Federal, Wisconsin, Ohio, and Colorado – something they stated they would handle and I accepted at face value. Both companies had done a great job before so why would I expect any less this time?
About nine months later I started receiving letters from Ohio and Colorado about filings due, so I forwarded them along to the Accountant and Payroll company. In my mind, this was “old business” and was being handled, plus I had moved on. It was probably just a timing error, something easy enough to explain away.
Skipping forward nearly three years, I had been threatened by the IRS and the Revenue Departments from both Ohio and Colorado. I started with a combined total of nearly $500K in assessments. Slowly that dropped to $50K, and then to $10K. I spent countless hours on the phone and writing letters trying to explain the misunderstanding. It wasn’t until I finally found a helpful person in each department that was willing to listen and told me specifically what needed to be done to resolve that situation. My final cost was around $1,000. I was relieved that this fiasco was finally over.
For the longest time, I blamed both the Accountant and Payroll Service for these problems. Ultimately I realized that it was my business and therefore my responsibility to understand the shutdown process – regardless of who did the actual work. I would have saved hundreds of hours of my time and several hundred dollars by simply gaining that understanding in the beginning.
I was not a victim of anything – this situation was the direct result of my own inaction. At the time it just did not seem very important, but my understanding of the situation and its importance was incorrect and I paid the price. Lesson learned. It was my business so it was still my responsibility to the very end.
Below are the other links. You don’t have to read them all at once, but it would be worth bookmarking them and reading one per day. Every new perspective, idea, and lesson learned could be the thing that helps you achieve your goal a day, week, or month sooner than expected. Every day and every dollar matters, so make the most of both!
- Comments on and a link to an on Curt Culver about Entrepreneurship.
- Comments on and a link to an HBR article about Start-ups and Entrepreneurship.
- Innovation, Intelligent Failure, and Failing Productively.
- Acting Like an Owner – Good Preparation for Becoming an Owner.
- Profitability Through Operational Efficiency.
- What Are You Really Selling?
- Continuous Improvement and a Growth Mindset.
- The Value Created by a Strong Team.
It is interesting how often you see ads for some franchise offering that touts, “Become your own boss.” While that may not be all bad it is just the tip of the iceberg. The presentation below is intended to provide insight to people who may be considering starting their first company. This was from a one-hour presentation and glosses over a lot of things, such as the need for registrations and insurance, but for a first-timer, it could be helpful.
One of my first and most important lessons learned when I started my consulting company long ago was that paying attention to cash flow was far more important than focusing on my balance sheet. Once you understand a problem it becomes easy to alter what you do to manage it. For example, using fixed pricing based on tasks where we received 50% up-front and the remaining 50% upon acceptance of the deliverable smoothed out cash flow and that was a big help.
So, take a look and post any questions that you may have. If one person has a question it is likely that many more do as well! Cheers.
The last few months have been very disruptive to nearly everyone across the globe. There are business challenges galore; such has managing large remote workforces – many of whom are new to working remotely, and managing risk while attempting to conduct “business as usual.” Unfortunately for most businesses, their systems, processes, and internal controls were not designed for this “new normal.”
While there have been many predictions around Blockchain for the past few years it is still not widely adopted. We are beginning to see an uptick in adoption with Supply Chain Management Systems for reasons that include traceability of items – especially food and drugs. But large-scale adoption has been elusive to date.
My personal belief is that we will soon begin to see large shifts in mindset, investments, and effort towards modern digital technology driven by Data Governance and Risk Management. I also believe that this will lead to these technologies becoming easier to use via new platforms and integration tools, and that will lead to faster adoption by SMBs and other non-Enterprise organizations
Here are a few predictions:
- New wearable technology supporting Medical IoT will be developed to help provide an early warning system for disease and future pandemics. That will fuel a number of innovations in various industries including Biotech and Pharma.
- Blockchain can provide the necessary data privacy, data ownership, and data provenance to ensure the veracity of that data.
- New legislation will be created to protect medical providers and other users of that data from being liable for missing information or trends that could have saved lives or avoided some other negative outcome.
- In the meantime, Hospitals, Insurance Providers, and others will do everything possible to mitigate the risk of using the Medical IoT data, which could include Smart Contracts as a way to ensure compliance (which assumes that there is a benefit being provided to the data providers).
- Platforms may be created to offer individuals control over their own data, how it is used and by whom, ownership of that data, and payment for the use of that data. This is something that I wrote about in 2013.
- Data Governance will be taken more seriously by every business. Today companies talk about Data Privacy, Data Security, or Data Consistency, but few have a strategic end-to-end systematic approach to managing and protecting their data and their company.
- Comprehensive Data Governance will become both a driving and gating force as organizations modernize and grow. Even before the pandemic there were growing needs due to new data privacy laws and concerns around areas such as the data used for Machine Learning.
- In a business environment where more systems are distributed there is increased risk of data breaches and cybercrime. That will need to be addressed as a foundational component of any new system.
- One or two Data Integration Companies will emerge as undisputed industry leaders due to their capabilities around MDM, Data Provenance & Traceability, and Data Access (an area typically managed by application systems).
- New standardized APIs akin to HL7 FHIR will be created to support a variety of industries as well as interoperability between systems and industries.
- Anything that can be maintained and managed in a secure and flexible distributed digital environment will be implemented as a way to allow companies to quickly pivot and adapt to new challenges and opportunities on a global scale.
- Smart Contracts and Digital Currency Payment Processing Systems will likely be core components of those systems.
- This will also foster the growth of next generation Business Ecosystems and collaborations that will be more dynamic in nature.
All in all this is exciting from a business and technology perspective. It will require most companies to review and adjust their strategies and tactics to embrace these concepts and adapt to the coming New Normal.
The steps we take today will shape what we see and do in the coming decade so it is important to quickly get this right, knowing that whatever is implemented today will evolve and improve over time.
Originally posted on LinkedIn.com/in/chipn
For most businesses now is a time of caution and uncertainty. Mitigation and emergency planning is likely underway. The CDC has provided solid guidance and new information is forthcoming daily. Communication Plans are being rolled-out and revised as needed. Travel and meetings are being curtailed. Disruption may become the new normal for the next few months.
Alexander Fleming, the Nobel Prize winner who invented Penicillin, is quoted as saying:
“The unprepared mind cannot see the outstretched hand of opportunity.”
More people will be working from home, face to face meetings will be limited, and large gatherings will be avoided as well as travel to those meetings or gatherings. Working from home can be challenging for people who are not accustomed to it so helping them make the transition may be very important to your financial bottom line.
Collaboration tools such as Slack, Basecamp, and Asana can help maintain productivity and foster necessary interaction. Some tools include video conferencing, but even so, having tools like Zoom or Webex can help both internally and externally. Seeing the person you are speaking with helps increase engagement and lead to more effective communication by spotting nuances such as facial expressions that could otherwise be missed.
Tools that are secure, are easy to implement (cloud-based solutions have an advantage here), and are easy to learn and use can be a cost-effective way to keep your business on-track. An additional benefit could be the creation of an effective distributed workforce.
But wait, there is more!
There may be important projects that you could pull in and start now. That is another means of keeping your teams engaged and focused. This could also be an opportunity to enhance skills with online training or to conduct research on new technologies or business models.
This could also be a great time to buy and sell products and services. Business demands could temporarily decrease in many market segments.
- Sales organizations could leverage that as an opportunity to provide appealing offers to your customers and prospects.
- Buyers could leverage their ability to quickly purchase products and services to secure better deals during this lull in business.
Reasonable concessions are mutually beneficial and could be a boon for both parties.
Negative events like a pandemic are not ideal and should not be taken lightly, but they can provide opportunities to advance your business and be positioned for even greater success once this situation is under control. It is like that wise old saying, “When life gives you lemons, make lemonade.”
One of the best team-building exercises that I have participated in was as a Board Member for the Children’s Hospital Foundation of Wisconsin. We were going down a path that led to a decision on whether or not to invest $150M in a new addition. The CEO at the time, Jon Vice, wisely determined that strong teams were needed for each committee in order to thoroughly vet the idea from every possible perspective.
The process started by being given a book to read (“Now, Discover Your Strengths” by Marcus Buckingham & Donald O. Clifton, Ph.D.), and then completing the “Strengthsfinder” assessment using a code provided in the book. The goal was to understand gaps in perception (how you view yourself vs. how others view you) so that you could truly understand your own strengths and weaknesses. Then, teams were created with people having complementary skills to help eliminate weaknesses from the overall team perspective. The results were impressive.
Over my career, I have been involved in many team-building exercises and events – some of which provide useful insights, but most failed to pull the findings together in a way that was concrete, had context, and offered actionable recommendations. Key areas that consistently omitted were around Organizational Culture, Organizational Politics, and Leadership. Those three areas have a significant impact on value creation vis-à-vis team effectiveness and commitment.
When I had my consulting company we had a small core team of business and technology consultants and would leverage subcontractors and an outsourcing company to allow us to take on more concurrent projects as well as larger, more complex projects. This approach worked for three reasons:
- We had developed a High-Performance Culture that was based on:
- Purpose: A common vision of success, and understanding of why that mattered, and an understanding of specifically how that was defined and measured.
- Ownership: Taking responsibility for something and being accountable for the outcome. This included responsibility for the extended team of contractors. Standardized procedures helped ensure consistency and make it easier for each person to accept responsibility for “their team.”
- Trust: Everyone understood that they not only needed to trust and support each other but in order to be effective and responsive the others would need to trust their judgment. If there was a concern we would focus on the context and process improvements to understand what happened and implement changes based on lessons learned. Personal attacks were avoided for the good of the entire team.
- Empowerment: Everyone understood that there was risk associated with decision making, while at the same time realizing that delaying an important decision could be costly and create more risk. Therefore, it was incumbent upon each member to make good decisions as needed and then communicate changes to the rest of the team.
- Clear and Open Communication: People on the team were very transparent and honest. When there was an issue they would attempt to resolve it first with that person, and then escalating if the two people could not reach an agreement and decided to seek the consensus of the team. Everything was out in the open and done in the spirit of being constructive and collaborating. Divisiveness is the antithesis of this tenet.
People who were not a good fit would quickly wash out, so our core team consisted of trusted experts. There was a friendly competition that helped raise the bar for the entire team, but when needed the other team members became a safety net for each other.
We were all focused on the same goal, and everyone realized that the only way to be successful was to work together for the success of the team. Win or lose, we did it together. The strength of our team created tremendous value – internally and for our customers that we sustained for several years. That value included innovation, higher levels of productivity and profitability, and an extremely high success rate.
This approach can work at a Business Unit or Department level but is most effective when it starts at the top. When employees see the leaders of their company behaving in this manner it provides the model and sets expectations for everyone under them. If there is dysfunction within an organization it often starts at the top – by promoting or accepting behaviors that do not benefit the whole of the organization. But, with a strong and positive organizational culture, the value of strong teams is multiplied and becomes an incredible competitive advantage.