Unconventional business reads

Summer is coming. You really need a mental-health break, but you also really need to keep learning and thinking fresh thoughts. Pack these books in your beach bag and achieve all of the above.

Disrupted: My Misadventure in the Start-Up Bubble by Dan Lyons: Dan Lyons, a former Newsweek journalist and author of the popular Fake Steve Jobs blog, accepts a job with Boston-based start-up HubSpot, and the misadventure begins. At 52, he's twice the age of the typical employee, and nobody lets him forget it. Moreover, he rapidly becomes turned off by a culture of “forced fun,” an exceptional lack of fealty by management toward a team from which management expects TOTAL loyalty, and ultimately the disparity between the company’s mission of inbound marketing and its reality of its aggressive telemarketing. Not to mention the fact that HubSpot is at that time bleeding money. And yet Lyons stays, hoping to cash out nicely when the planned initial public offering (IPO) happens. The result is a hilarious, snarky and ultimately disturbing read that will have you questioning fast-growth startups, IPOs and the better-than-everybody-else we-change-the-world attitude of companies that aren’t and don't.

No B.S. Ruthless Management of People and Profits by Dan Kennedy: If the word "ruthless" doesn't give it away, Dan Kennedy is nobody’s Mr. Nice Guy. If he can manage his company from a back room with one employee and a security camera monitoring that employee's every move, and make more money by doing so, he will. He scoffs at the feel-good management guidance promulgated by HR managers who don’t have to manage the bottom line, instructs readers not to over-hire to impress anybody with the number of employees the company has, and advises that employees are loyal only as long as you feed them. He provides painfully familiar examples throughout the book. Kennedy coaches business owners on specific tactics to take control, set and enforce standards and maximize profits. Whether you agree or disagree with his approach, Kennedy’s “no B.S.” theory is worth a read. By the way, this is one of a series of “No B.S.” books by Kennedy.

The Choose Yourself Guide To Wealth by James Altucher: “Things fall apart; the centre cannot hold,” warned Yeats in his epic poem The Second Coming. That was a hundred years ago. Today, Altucher, no less compellingly, argues that everything is changing, that the bottom falls out of the economy every few years, that the traditional "safe route"" of long-term, secure employment and owning a home is disintegrating – and that the best, albeit winding, path to whatever you call success is to “choose yourself.” Altucher is as eccentric as he is brilliant. Some will dismiss this book, which encompasses both theory and excruciatingly personal details of Altucher's insecurities and failures, as the stream-of-consciousness ravings of a man who, despite his financial and business success, is a little unhinged. Others, including me, will find inspiration in a number of his ideas and earned wisdom. I highlighted about a quarter of the text. In either case, reading Altucher is like playing a wild game of ping pong with the world’s most unpredictable opponent.

Enjoy.

Deal-making for business owners

We've been hearing a lot about the art of the deal lately. For many business owners, making deals is less about thinking HUGE and more about getting deals done right, not that the two are mutually exclusive.

So how can you get your deals done, and done right?

-Some people believe that business deals are a zero-sum game, with a winner and a loser. If you will be working with the other party after the deal, or if you may want additional deals with the same party in the future, OR if you may want to make deals with other people in the party's circles of influence, the win-win deal works better. Period. Business expert Stephen Covey agreed.

-You can make deals only with the decision-maker. If the decision–maker isn't at the proverbial table, you are wasting your time.

-Know who has the power in a deal. Who needs this most? If it isn't you, find ways to assure you are not desperate – or at the very least, that you do not appear so. Here's a fun article on the topic.

-Don't bury important issues just to get (an inferior) deal done. Get them out in the open and get your important questions answered.

-Know what issues are negotiable and what ones are not – on both sides.

-Learn to read subtle signals during negotiations. Here's a good Entrepreneur article on that topic.

-If a deal feels bad while you are making it, it's probably even worse than you think. Apply a multiplier to that gut feeling.

-Unless you are getting married, most deals shouldn't have "forever" or even very long-term clauses. Situations change, and escape hatches or exit plans can be valuable when they do.

-Deadlines can be advantageous. Urgency of real need helps get deals done.

-Aside from deadlines, many deals have organic shelf lives. When stale or stuck, they really aren't happening. Know when to stop chasing a deal.

-Also know when to keep lightly in touch, because some good deals come back to life when you least expect it.

-Negotiating, at its best, is the art of coming to an agreement, not conquering an opponent.

-Not good at negotiating? Attend a seminar or webinar (there are many) or read a negotiation book.

As in all matters, model your negotiation skills after people you admire, not only for their ability to make advantageous deals, but for their overall reputations and ethics as well. This article was originally published in Succeeding in Small Business.

Image © 2004 van Schouwen Associates, LLC, by Stephen van Schouwen.

 

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Pinpoint your small company's vulnerabilities

For small business owners, it is not the case, sadly, that the only thing we need to fear is fear itself. On the contrary, we must remain vigilant that we don't miss the one vulnerability, or the several, that could spell doom for our companies.

Gorilla customers: Do one or two customers provide too high a percentage of your revenues? Would you suffer a great deal if those customers left? Make sure you market aggressively to balance out your base. Gorillas walk away. Believe it. (See an earlier Succeeding post on this topic).

Embezzlement and theft: How many stories have you heard about the employer who realized, too late, that accounts had been bled dry, often by a trusted employee with too much access? Employ financial safeguards.

Overdependence on any one employee: Dan S. Kennedy, in his book No B.S. Ruthless Management of People and Profits, reminds readers that "one is the loneliest number." In other words, if you have one employee holding unduplicated skills or knowledge, you are vulnerable if that person leaves. Either cross-train someone, have a second person in the department (if you can afford it) or, at least, have a few job candidates or contractors on your short list for that fateful day.

Potentially litigious employees: Maybe you didn't do anything wrong. Or maybe one of your staff members said something inappropriate to another. Perhaps you fired for cause and the former employee said it was because of age or race. Who knows. Whatever the reason, and whether or not you triumph in the end, fighting a legal battle over employment issues is expensive and distracting. For less than you may think, you can purchase Employment Practices Liability Insurance (EPLI) and, largely, leave the litigating to the insurers.

Empty piggy bank: Does your business have two to three months cash available, whether in the bank or as a line of credit? If not, the specter of customer loss, general business downturn or a slowing of customer payments is scary. Start building a fund, or find cash alternatives to which you could turn.

Falling behind on taxes and obligations: It's a sad day when a company makes the news because it hasn't met its obligations, whether for payroll taxes, employee retirement account funding, sales tax payments, or similar commitments. If you fear you may fall behind, talk with your accountant immediately and get help. Failing to pay important obligations is a losing game.

Neglecting your reputation: It's one of your most important assets. We've blogged about this before. Build and protect your small business' reputation.

Your business may have its own unique vulnerabilities. What are they? And how will you repair them before they negatively impact all your hard work?

This article was originally published in Succeeding in Small Business.

 

Trendspotting and idea generation build your value proposition

[caption id="attachment_2051" align="alignleft" width="281"] Illustration © 1990 van Schouwen Associates, LLC. Created by Steve van Schouwen.[/caption]

Entrepreneur, writer and engaging character James Altucher advocates becoming an "Idea Machine," coming up with ten new ideas a day.

Good ideas are the best starting point for good business. In an ideal world, your products and services will respond to a need so great, so obvious, that they will practically sell themselves. With this in mind, our two preceding blog entries focus on what climate change means to the architectural, engineering, building products and systems, and construction industries in terms of future customer expectations and new opportunity. Climate change and its impact is going to become an increasingly significant factor in architecture, building design, products, construction, location, repair, maintenance, and value – among other factors. The intent of each post was to inspire readers to check out the buzz and start generating ideas of their own.

But it's not just climate change or the need to build for resilience that matter. Change continues to accelerate in every business sector, and in our entire world. Which leads us to ask...

What emerging trends are relevant to your business? How can you leverage these trends? Can you come up with five or ten ideas today, to spark your thinking?

Change is a primary driver for new value propositions and new success... when you spot trends, generate ideas and move forward with the best of these ideas. It's a great feeling for our team to work with clients who have discovered a need, a trend or a pain point that the client feels uniquely qualified to address.

Resiliency in building: Why it's hot, what you need to know now

[caption id="attachment_2593" align="alignleft" width="388"] Image courtesy Union of Concerned Scientists[/caption]

Launch marketing for architectural and building products, systems, services, and tools has a whole new focus. We urge our clients to take a close look...

Check out the clear and growing opportunities in resilient building. "Resilient building" is a hot topic with USGBC (including via LEED), The Rockefeller Foundation, GreenBiz, and too many other forums to list here.

Climate resilience, from which the term "building resilience" most likely derived, is defined by Wikpedia as: The capacity for a socio-ecological system to: (1) absorb stresses and maintain function in the face of external stresses imposed upon it by climate change and (2) adapt, reorganize, and evolve into more desirable configurations that improve the sustainability of the system, leaving it better prepared for future climate change impacts.

For companies in the architectural and building industries, questions to ask now include:

-Are we already involved in resilient building?

-How should we develop or increase our involvement to provide meaningful value to our customers and stakeholders?

-What should we tell our stakeholders about our contributions, products, services, and commitment?

Climate change and its impact is going to become an increasingly significant factor in architecture, building design, products, construction, location, repair, maintenance, and value - among other factors.

The time to build your value proposition in resilient building is now.

Make one change

As a lifelong sucker for the new year's resolution, it's not surprising that I'm also an advocate for using January 1 as an inspirational start point for business change. However, just as a list of five or ten personal resolutions is hard to remember, let alone to achieve, let's agree that in business too, less may be more.

Start with one important change you want to make. Make it the challenge, concern or irritant that:

A) keeps you awake nights

B) makes Monday mornings tough to face, or

C) drives you to drink... or whatever.

For some business owners, cash flow or profitability rises to the top. For others, it may be the long hours they perpetually work, or an employee that is a perpetual challenge. Maybe you need to write an employee handbook, or promote or reassign a key staff member. Whatever it is, you've been putting it off.

Once you've identified your #1 trigger, the real work begins.

Let's take a complex example first. Cash flow and profitability is a big issue. What is the first and most important step you can take to improve your company's financial situation? Write it down. Write down subsequent or supplemental steps as well. Don't know what the first step is? Do some research, or get some help. This blog and many books on the topic will help. Try Six Steps to Creating Profit for starters. Your accountant may have recommendations for improving your numbers as well. Then, get to work.

In some cases, the change you need to make is less complex but difficult for other reasons. Take the example of working overly long hours. You've probably developed the habit over years. Again, break the problem down. Figure out why you are working too much, and what you can do about it. Do one thing to reduce the hours you work on a regular basis. For example, leave work an hour earlier one or two days every week. Or delegate a few additional tasks to staff members.

When you have addressed your most important single change, or at least have set the desired change in motion, you can move on to a second challenge.

While this approach may sound overly simple, it works well. Business owners have a raft of everyday responsibilities, so big changes tend to get pushed back. By focusing on one important change at a time, you can make it happen faster and more surely than if it remains one item on a long list.

Here's to a happy, productive and successful new year.

Post adapted from Michelle van Schouwen's article in Succeeding in Small Business.

Fine-tuning your management style

Forbes contributor and longtime corporate manager Victor Lipman recently published the book The Type B Manager: Leading Successfully in a Type A World. He contends that, while Type A people have long been regarded as the best managers, many of those hard-driving, competitive characteristics aren’t optimal for directing employees. Type Bs, more reflective, slower to anger and in some ways less competitive, may in fact motivate and manage more effectively.

Of course, for any manager – whether Type A, Type B, collaborative, self-motivated, quick or slow to delegate, with great or so-so social intelligence – supervising people can be a challenge.

As managers, understanding ourselves is the first step to unlocking our best performance. Once we better understand ourselves, we can leverage our management strengths and mitigate our weaknesses. The following examples apply to business owners as well as team managers in large companies.

-George, a young, bright and eager researcher, had recently taken on his first management position. Having excelled as a lone wolf, he soon found himself in conflict with the people he was charged with directing. His staff regarded him as condescending and dismissive. Once George became aware of this, he worked to adjust and manage his attitude. Admitting to himself that he did at times consider himself smarter than other people was an important first step, which he eventually followed by 1) not allowing himself to reveal these feelings (even subtly) when they cropped up, and 2) teaching himself to look for and respect a broader range of personal strengths in others (for example, kindness, energy or dedication). In other words, while George had always valued intelligence above all other characteristics in himself and others, as a manager, he needed to look at people in a broader and more compassionate way.

-Miranda had been a manager for nearly three years when she realized she was exhausted. She asked a more seasoned manager to mentor her. The senior manager advised Miranda that she was allowing perfectionism to rule. If Miranda had any concerns that a staff member might not do an outstanding job on a project, she would either micromanage the project or take it over completely. Miranda’s mentor showed her how to back away enough to allow employees to do their jobs as completely as possible, checking in only at specific intervals.

-Jane directed her team well on projects and mission. However, she learned that her close-knit group regarded her as uncaring. She didn’t join them in social events, forgot their birthdays and failed to ask even the occasional “how is your family” question. Jane found a compromise solution. She admitted to the staff that she had been known to forget even her own mother’s birthday, and asked them to keep a calendar of events they wanted to observe as a group, and to give her a heads-up. Jane also marked her online calendar with regular reminders including a bi-weekly “Today, ask someone how they/their family etc. is doing.” The combination of letting her team know she did indeed care about them, while also admitting to them that reaching out personally wasn’t her greatest strength, healed earlier tensions.

-Diego was conflict averse. As a manager, he hesitated to talk with employees about their performance shortcomings, and thus faced ongoing issues with several staff members. Diego began reading about proactive problem management techniques, and came to recognize the shortfalls of his approach. He then planned how he could summon the nerve to discuss problems with employees. He set aside meeting time with individual employees. To make the meeting easier for everyone, Diego would begin each conversation with a positive. “I’ve appreciated your work on the ABC project, which has helped us keep this customer happy. However, I did want to bring up one aspect of your reporting in this project.” He also asked employees to help him devise solutions to the problems he brought up. His thoughtful and collaborative approach helped Diego with what he considered to be the most difficult part of managing people.

-Rebekah was busy, so much so that managing her equally busy staff was starting to feel like a burden. She found a single tactic that helped. When a staff member approached her with a problem, she asked that person to provide at least one, and possibly two, solutions to the problem. This empowered employees, created more options in dealing with challenges, and freed Rebekah – just a little – to cope with other demands of the day.

All managers tread some common ground, so whatever your area of concern, there are probably great books and articles to reference. In addition, seasoned managers are happy to advise or mentor others. So don’t operate in isolation. There’s help out there!

Originally published in Succeeding in Small Business.