4100weeks

Starting a business . . . in a recession

Starting a business is always a challenging proposition. How about during a recession?  Well some people think that's crazy. Not Richard Branson of Virgin fame. Here are his 5 tips for starting up in a recession.

The Consultants Creed

I can do it right.

I can do it cheap.

I can do it fast.

You get to choose any TWO.... 

An interesting story about being dull . . .

How can a dull story be highly profitable? Business management consulting guru Tom Peters tells a great 4 min story about two dull guys making millions of dollars . . .

Just Ask Leadership - Interview with Author Gary Cohen

Just Ask Leadership - Why Great Managers Ask the Right Questions

Gary, what experiences inspired you to write the book?

In growing our business from 2 to 2,200 employees, Rick Diamond and I were continually reinventing ourselves. It is said that every time you double in size you need to replace every system and process that you use. We grew 50% compounded annually for our first 12 years. You can imagine the amount of learning we had to do as owners/leaders of the business. In an effort to keep up, I attended Covey Leadership Institute, Disney Leadership Institute, Harvard  Business School, and the Aspen Institute (as a Crown Fellow). I had some incredible instructors, who asked terrific questions that motivated and challenged students, but I was never taught question-asking as a leadership skill. Growing up with learning differences (relating to poor graphomotor skills, low active working memory, and inattention), I relied on questions to succeed in school and build social connections. As a business owner, I used questions as much, if not more. I suspected there was a connection between question-asking and leadership, so I interviewed more than 100 successful leaders. They confirmed that I was onto something and inspired me to write a book. Just Ask Leadership is a compilation of these leaders’ question-asking wisdom and an effort to inform readers about a skill that is practiced by the best leaders in this country and rarely, if ever, taught. 

From your research and experience why do find that many leaders are "tell" rather than "ask" oriented in their communications?

As kids, we have an insatiable curiosity. Every parent knows this with the “why, why, why” coming from their toddlers. Over time, parents grow tired of explaining and their response becomes “because I said so!” Telling of this sort is also favored in schools. Our school system was originally designed for the industrial age with the intention of preparing students for factory jobs. The goal was not to teach about the art of the question, but to learn the right answers. Whatever the teacher said was what students were supposed to copy down and internalize. When they entered the workforce, these teenagers followed instructions and were rewarded for doing it well. Even today, we’re rewarded far more for providing good answers than asking good questions. So it’s not surprising that many leaders are oriented toward telling rather than asking. We also have a neurological inclination toward telling. Our brains are wired for two main functions: storing information based on invariant patterns and predicting what will come next. These two functions lead the brain to want to believe it has the answer. When you are finishing someone’s sentence, you are using both of these key functions. First, you are associating what the other person is saying with some past stored memory, and then you predict an answer based on where you think the person is going with their thoughts. If you are extraverted, you might finish the sentence out loud; if you’re introverted, you’re more likely to finish it in your head. Either way, you want to believe you know what the person is going to say—rather than revise your beliefs and memory-storage system. Everyone wants to provide answers, including leaders. To do otherwise requires considerable self-discipline.    According to a survey I conducted, only about 30% of leaders say that they ask more than tell. And yet 97% of these same leaders prefer to be asked rather than told what to do. I think leaders need to think deeply about these results.

What is the most interesting feedback you have received from readers and leaders after completion of the book?

Of the 100 or so leaders I interviewed for the book, only two had thought deeply about the subject of questioning beforehand. Some of the leaders I interviewed called to thank me later for making them consciously competent about a technique they have been doing for years unconsciously. It requires a different mindset to succeed as a leader (asking questions in order to motivate others) vs. the one needed to rise up the ranks of an organization as an answer-provider. If leaders realize this early enough in their careers, they can keep from burning out—which is what commonly happens to leaders who try to provide all the answers for their organizations (a near impossibility with the pace of business and information today).

I think that you make a good point that some leaders do ASK questions, however their misguided intent is manipulation as opposed to gaining insight and buy-in.  What advice do you give in this situation?

Just Ask Leadership should not be confused with the Socratic Method. According to Plato, Socrates did not know the answers to the questions he asked, but that’s hard to believe. I have had many teachers use the Socratic Method and I know if the class diverted them from their learning target, we would quickly learn that there was a right and a wrong answer. Often for leaders, there are no right answers only different choices. Smart educated employees don’t want to be manipulated into a cat-and-mouse game of finding your answer. If you have the answer and aren’t willing to explore other possibilities, TELL your employees. To ask under these circumstances is to play games, and your employees will resent you for it.  

Why do some leaders roll their eyes when building a great CULTURE is suggested as a means to performance improvement and building a great company?

Mike Harper, who built ConAgra from $500 million to $20 Billion in 17 years, said to me that the greatest tool in the CEO’s tool bag is the culture. The reason less successful leaders roll their eyes is that they don’t understand that some “soft skills” are essential to creating lasting, hard results. By asking more and better questions, leaders will create a culture that is engaged, aligned, and accountable. And there will be far less eye rolling in that culture.

In addition to the advice you provided here, what is the greatest failure of leadership in businesses?

Leaders don’t recognize that leadership is not about being trusted; it is about trusting those that work for you. It is about having the courage to be vulnerable enough not to know the answers, but to move others to their answers. Leaders often position themselves as teachers and, in the process, forget to engage in new learning. We all have blind spots and, as leaders, they’re not often corrected, unless we seek counsel. My partner and I hired coaches from the onset, and they made more than we did for the first three years. We continued with coaches even after we enjoyed considerable success. Leaders who assume they’ve learned all they need to know and get complacent often get surprised (if not undone) by blind spots. They can’t expect friends and colleagues to give them the objective feedback they need.  

Are you working on another book or do you have plans to do so in the near future?

For the moment, I have put the idea of another book on hold and continue to promote the book and concept Just Ask! 

Hey entrepreneur, 3 important things to remember . . .

Entrepreneur, investor, and senior advisor Anthony Tjan CEO, Managing Partner and Founder of the venture capital firm Cue Ball, discusses the 3 roles of great entrepreneurs in a recent Harvard Business Review blog post. Tjan says that a start-up entrepreneur has a lot on their plate and in order to stay focused, there are 3 important things that need to get done that each require a different mindset:

1. Planning - "Entrepreneurs set the vision, the romance, and culture around a big and daring goal. In doing so, they must have a general plan for where they want to go, but they should not get hung up on developing the perfect plan."
   
2. Selling - "Great entrepreneurs need to be constantly selling the story of their vision, as well as researching how it should evolve. Whether raising funds, evangelizing the vision among employees, recruiting top new talent, or selling the product itself, an entrepreneur needs to constantly pitch — like a salesman out of Glengarry Glen Ross — and act as the company's chief storyteller."
   
3. Executing - "Excellent execution comes from adhering to a tight set of controls and operating principles . . The key to delivering what you want to deliver is to know how to pick the few customer and operating metrics that can serve as leading indicators for the ultimate financial metrics desired."

10 broad strategies that were used to build multimillion-dollar businesses

Author Rene Martin asks  . . . "Is launching a business today a high-stakes risk?" The answer she gives to her own question . . . "Of course. But it's never been easy to build a successful business, in any era or in any economy." She goes on to say that many recently unemployed individuals are avoiding "quietly joining the ranks of the unemployed." Instead they are taking control of their careers by becoming their own boss. they're resolving to seize control over their career and become their own boss.

Here are the 10 broad strategies taken from the entrepreneurs profiled in Martin's book The Risk Takers: 16 Women and Men Share Their Entrepreneurial Strategies for Success that were used to build multimillion-dollar businesses:

1. Go on a treasure hunt and find an under-served niche
2. Spot a new trend and pounce
3. Just start!
4. Buck the conventional wisdom
5. Exploit your competitors' weakness and make it your strength
6. Hit 'em where they ain't
7. Save your bucks and get noticed without expensive advertising
8. Trust your gut
9. Never let adversity or failure defeat you
10. Never stop reinventing your company

You can read the full article here at CNN.com

The 24 hour rule - Communication that works.

It's frustrating  beyond belief when you expect an answer or a call from an employer , employee, vendor or friend. ...  and the e-mail box or voicemail is empty....

Great organizations,  competent professionals and good friends always respond when promised.  Weak organizations, disorganized managers and fair-weather friends don't meet their commitments and leave you hanging.

"The 24 hour rule" is a standard that defines the speed and importance for returning calls or emails in many professional organizations.  That is:  ALL requests, promises , calls or email are responded to within 24 hours.  That may simply be to say:  "I need another 24 hours or 7 days" to fulfill my promise to you but I didn't want to keep you hanging.  In great organizations the response time is even faster.

Slow responders make you mad, reduce your productivity, develop a poor reputation and  put you on the lookout for new employees, suppliers or friends.   If you are going to fill 4100weeks, you need to know where the meeting is, when the flight leaves and whether or not to bring the running shoes... and now.

All of the excuses are dead:   Smartphone's, PDA's, Mobile Phones and Satellite phones connect everyone on the planet except possibly (and maybe not) your 95 year old Grandmother  24/7.   "Oh you were trying to get in touch with me." reeks of no integrity.  It takes approximately  16.3 seconds to hammer out an email reply if you type with one finger.

The other 24 hour rule - Not to be confused with the first 24 hour rule:

The 24 hour rule states that any partially consumed liquor left over at the host's house for more than 24 hours after the end of a party becomes property of the host. The host is not required to notify the owner during this period.

"Hey man, I left some rum here last week, did you see it?"  

"I drank it, 24 hour rule dude."

"Fair enough."

 Borrowed from the Urban Dictionary.

The second 24 hour rule can be employed when the first 24 hour rule is broken.

Labor of Love

Business coaches often say,  "The nastier and less exciting the business venture,  the greater  the chance for financial success."   Owners of  chemical waste disposal,  trash removal, and pawnshop businesses can make double digit profits,  but  the  day-to-day drudgery of  these businesses can be mind numbing since they certainly don't qualify as a Labor of Love.

There are those individuals who transform their fun and passion into ideas and then
successful businesses that will positively impact others.   After the Eco-Challenge adventure race captivated America with its impossible challenges and steel-hardened endurance athletes, Troy Farrar saw such a niche opportunity.    

Troy was a college soccer coach and  Petroleum Landman living in Houston Texas.  The  job was good, the pay fair and the opportunity for growth underwhelming.  However, deep set in Troy's mind was his desire to develop his idea, which over time resulted in the creation of shorter Eco Challenge adventure races  allowing weekend athletes to build fitness and take on challenges they never thought possible.

He started the first race in Texas with the Terra Firma Adventure Race  in 1998.  His races were the first in Texas and he was one of the first promoters in the country to stage multi-sport races combining off-road running,  biking, canoeing, , land navigation for average athletes..  He used shoe leather marketing and flyers for promotion, enlisted volunteers, marked the courses, established the rules and created a challenging and fun event that spawned other races.  . 

Troy's "work space" was now  the hills, woods and streams of Texas and other states.  His cubicle was a 16' foot branded race truck that held the gear and supplies.  His customers were adventure racers, those athletes who slobber for an endorphin "high" as they explore new territories and challenges with each event. . 

Adventure Racing exploded and after producing  more than 150 adventure races Troy sold his company.  His company was duplicated by others and soon adventure racing followed triathlons as the newest adventure/challenge of choice.  Twelve and twenty-four hour races were supplemented by two hour sprint races and the number of Adventure Racers exploded.

Leveraging  the opportunity to take advantage of competitors that followed his lead, Troy started The United States Adventure Racing Association, www.usara.com. to provide safety standards,  insurance  and guidance to the growing industry, including regional and national competitions .  

Troy married an adventure racer and soon had a daughter. Troy's entrepreneurial lifestyle and control of his work hours allowed him to bike his daughter to nursery school an hour each way.  Troy stayed fit and Izzy became an outdoors girl.  Troy recalls,  "When Izzy was a year old, it started raining during the ride to school and she looked  at me wondering if this was good or bad.  Troy exclaimed, " Rain, Woohoo! " "Rain! Woohoo! " Izzy happily repeated, "more rains Daddy, more rains."  Imagine that happening with most suburban kids.

Troy's kids seldom watch TV; when bored , they go outside.  They also attend  training and racing events.  They experience the outdoors, exercise and competition as a positive thing.   

Troy and USARA are "playing it forward" and they are committed to projects that support the health and fitness of kids as well as adults.  Additionally, there is a new focus on the Collegiate demographic in Adventure Racing and are providing Collegiate National championship races.

See USARA's magazine: www.adventureworldmagazine.com to see how a Labor of Love for the outdoors and competition can become a profitable and enjoyable business.

Navy Seals Philsophy Statement

Have you ever struggled with writing your personal or company mission, purpose or philsophy.  Look a the meaningful power in the composition of the: United States Navy SEAL Philosophy "In times of war or uncertainty there is a special breed of warrior ready to answer our Nation's call; a common man with uncommon desire to succeed. Forged by adversity, he stands alongside America's finest special operations forces to serve his country and the American people, and to protect their way of life. I am that man. My Trident is a symbol of honor and heritage. Bestowed upon me by the heroes who have gone before, it embodies the trust of those whom I have sworn to protect. By wearing the Trident, I accept the responsibility of my chosen profession and way of life. It is a privilege that I must earn every day. My loyalty to Country and Team is beyond reproach. I humbly serve as a guardian to my fellow Americans, always ready to defend those who are unable to defend themselves. I do not advertise the nature of my work, nor seek recognition for my actions. I voluntarily accept the inherent hazards of my profession, placing the welfare and security of others before my own. I serve with honor on and off the battlefield. The ability to control my emotions and my actions, regardless of circumstance, sets me apart from other men. Uncompromising integrity is my standard. My character and honor are steadfast. My word is my bond. We expect to lead and be led. In the absence of orders I will take charge, lead my teammates, and accomplish the mission. I lead by example in all situations. I will never quit. I persevere and thrive on adversity. My Nation expects me to be physically harder and mentally stronger than my enemies. If knocked down, I will get back up, every time. I will draw on every remaining ounce of strength to protect my teammates and to accomplish the mission. I am never out of the fight. We demand discipline. We expect innovation. The lives of my teammates and the success of the mission depend on me — my technical skill, tactical proficiency, and attention to detail. My training is never complete. We train for war and fight to win. I stand ready to bring the full spectrum of combat power to bear in order to achieve my mission and the goals established by my country. The execution of my duties will be swift and violent when required, yet guided by the very principles I serve to defend. Brave men have fought and died building the proud tradition and feared reputation that I am bound to uphold. In the worst of conditions, the legacy of my teammates steadies my resolve and silently guides my every deed. I will not fail."