| “People are not lazy. They simply have impotent goals / that is, goals that do not inspire them.” – Tony Robbins | |
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Archive of Habits
Road Map
Monday, April 16th, 2012Politics as Usual
Wednesday, April 11th, 2012I distinctly remember the day I first met Senator Lugar. It was the summer of 1993 and I had just graduated from college.
I had applied for a job as an assistant in his Washington DC office and was lucky enough to make it to the final interview with the Senator.
We met at a hotel near the airport for breakfast. I had never met a senator before and I was extremely nervous. For some reason I remembered that he ordered 1 egg and toast. I was starving, but didn’t want to look like a slob so I ordered the same thing. He probably thought I was an idiot.
We talked about a whole host of different subjects and I remember thinking “What an amazing guy. He meets with the president one day and then can have a normal conversation with an awkward 22 year old unsure of what he wants to do when he grows up.”
From that day on, Senator Lugar was one of my favorite people in the world. I was at the announcement when he decided to run for President and just knew that the country needed someone like him. A intellectual who stayed above the fray and never stooped to the level of the other politicians who felt the need to slam the other party every time they got the chance.
I was proud to have him as my senator.
Then it happened. After one of possibly the most distinguished careers in the history of the US Senate, Lugar decided to run for a 7th term. For some reason, he didn’t feel that 36 years representing the state of IN were enough.
I was disappointed.
Unfortunately, he ran into an opponent who was able to raise some money and mount the first real campaign he’d faced in 30 years.
And it got worse.
Instead of staying above the fray, Lugar decided to respond to the challengers negative ads with those of his own. As a alumni of political campaigns, I recognize that in order to win he really had no choice.
Now, every 5 minutes we see an add on TV that is one of these candidates bashing the other.
Win or lose Senator Lugar’s reputation has been forever tarnished.
I wonder aloud – “Is getting elected worth it?”
Change in Perspective
Monday, April 9th, 2012| “A ship is safe in harbor, but that’s not what ships are for.” – William Shedd | |
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Move the Needle-Know your numbers
Wednesday, April 4th, 2012Raise your hand if you are interested in starting a small business because you love accounting.
I’ll assume that unless you are starting up a small CPA practice, most of you kept your hands down. Let’s be honest, accounting is no fun. For nearly all small businesses, it generates absolutely zero revenue, doesn’t help find a new prospect and isn’t going to improve your marketing.
However, you can’t run a small business without a crystal clear understanding of your numbers. In fact, I often tell entrepreneurs that if you aren’t committed to getting your arms around the financial fundamentals, you should shut your business down. That’s right – close the doors.
Here’s why.
Unless you know your numbers you can’t effectively monitor your progress and you won’t have any idea how to grow profitably. For those of you who are thinking, “I didn’t get into business to make money, I just want to do what love/help people/be in control/etc.” that is OK – but please understand that you don’t have a business, you have a hobby and there’s a huge difference.
The good news is that getting your arms around the financial essentials isn’t rocket science. Like most of the concepts we discuss it can be boiled down into a handful of simple fundamentals.
First, you have to carefully calculate your gross margin on sales. Gross margin is the profit that is left over after you have subtracted all of the variable costs (cost of goods sold) associated with each sale.
For example, if you are a general contractor and remodeling a kitchen your variable costs would be all materials, subcontractor and labor costs associated with this particular job. Subtract all of these from the price your charged the customer and you have your gross margin.
Next, develop a budget. Most business owners ignore this simple piece of advice because they don’t know how or believe that it’s a waste of time because they are just guessing with the numbers. These are terrible excuses.
All you need to do to build a budget in whatever accounting software you are using is to go to the Help section and type in “create a budget”. Minutes later you will have your fist budget in place. And, it’s OK if your numbers are completely wrong in the first year of having a budget – guessing in year one is encouraged!
The most important number you need to understand in this first year is your break even which is calculated by taking your fixed costs and dividing them by your gross margin percentage. This number represents the bare minimum you need to sell each month to stay in the black.
Finally, you need to find a good accountant. Your accountant should be much more that the individual who prepares your tax return. They should help you with these financial fundamentals throughout the year and serve as a trusted advisor through many of your toughest business challenges.
Future
Monday, April 2nd, 2012| “When I let go of what I am, I become what I might be” – Lao Tzu | |
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Passion
Thursday, March 29th, 2012This is my fourth post regarding a book I am reading with my clients called “What Matters Now”, by Gary Hamel…
Last year, I wrote a white paper called “Human capital is the Final Frontier”. And yes, I do recognize that the name is silly.
I wrote this document because, I have come to the conclusion that everything is a commodity – except people.
After reading “What Matter’s Now”, I realized that Gary Hamel been talking about this same issue for a long time. His data and research confirms what my “gut” has been telling me for the last few years.
He theorizes that there is a “Hierarchy of Human Capabilities at Work” that starts with obedience and moves all the way up to passion. The best companies will figure out how to move someone “up” this ladder.
He states perfectly what I think we all need to hear:
“Audacity, imagination and zeal are the ultimate wellsprings of competitive differentiation. And there’s the rub. The higher order human capabilities are gifts; they cannot be commanded. You can’t tell someone to be passionate or creative.”
His point is that our challenge as leaders is to create an environment where our only long term competitive advantage (our employees) needs to be inspired to think differently.
My experience tells me that this is extremely difficult to do. But, #1 it’s worth it and #2, you have no choice.
Making this shift will require you to get way outside of your comfort zone. However, I guarantee it’s worth the effort.
Move the Needle – Prioritization
Wednesday, March 28th, 2012Tell me if this story sounds familiar.
You get to the office at 7:45am on Monday morning. The first thing you do is to open your email. A few minutes later you get a call and then dive into your weekly staff meeting. The next thing you know, you look up and realize that it is 4:30 on Friday afternoon. Exhausted, you wonder, “What just happened?”
Unfortunately, this narrative is far too common in the life of a small business owner. You wear so many different hats and have so many different responsibilities that most days are a blur. The result is often a whole bunch of activity but very little achievement. The worst part is that come Monday morning you just repeat the routine hoping that this is the week you finally make some measurable progress.
It doesn’t have to be this way. You can change this pattern and the good news is that it doesn’t require a Franklin Planner™, an iPad™ or an executive assistant. Intellectually speaking, the solution is simple. However, like most challenges facing the small business owner, changing your behavior is hard.
For the last eight years, I have helped hundreds of business owners implement a straightforward solution for managing their time that is guaranteed to work. All you need to do is follow these simple rules.
First, set aside fifteen minutes on Monday morning before you open your email and write down a list of the activities/projects that absolutely must be completed by Friday at 5pm. This is a short list of critical items that will help you to achieve your goals (if don’t have goals, go read my last column). Keep this list in front of you so that you can refer to it throughout the day.
Next, buy a nice journal that looks different from every other notepad in your office. Use this notepad to document the many “to-do’s” that pop up throughout the day (a Post It® note is not a to-do list). The items that make it to list are the simple activities (call a client, send TY note, and download a relevant podcast) that most people assume they will just remember. Unfortunately, most people recall this “to-do” at 3 in morning.
Finally, limit your email correspondence to no more than 4 times per day. There is a significant amount of research indicating that keeping your email open and checking it sporadically throughout the day is killing your productivity. The reason is that these interruptions, although minor, distract your train of thought and it takes a long time to get it back.
I very much doubt that I am the first person to suggest that you should plan the week in advance, keep your to-do’s in one place and limit email interruptions. Sadly, very few people practice these simple habits on a regular basis because they don’t deliver an immediate result.
I guarantee that if you develop these simple habits you will see a significant change in your life. You will feel more in control, make better progress towards your goals and feel less stress.
As with just about everything, it’s your choice. Choose wisely.
Life’s Experiences
Monday, March 26th, 2012
“I think we all wish we could erase some dark times in our lives. But all of life’s experiences, bad and good, make you who you are. Erasing any of life’s experiences would be a great mistake.”- Luis Miguel |
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Reach Leadership Series – Life is only about relationships
Thursday, March 22nd, 2012|
RLS – Dr. Sipes Follow Up Blog
“Life is only about relationships” – Dr. Greg Sipes
One of my mentors and good friends, Dr. Sipes taught me this lesson many years ago.
This past week, at the Reach Leadership Series, he expanded on this idea and argued that your happiness and joy has very little to do with your professional accomplishments.
Deep down, we all know this to be true. We’ve all set a big goal, achieved it and then wondered “What’s next?”
This constant obsession with the next achievement is healthy up to a point. The problem is that most of us allow it to drive all of our behaviors.
The next thing you know, we’ve out achieved everyone else but have forgotten what’s important.
Here’s a reminder – it’s only about relationships. That’s it.
The simple question then becomes – What are you doing to strengthen the most important relationships in your life?
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