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Archive for the Strategy Category

The Pointillism Maserati

 

Every action that we take either enriches us or impoverishes us.

When we have perfect clarity about which is which, we’ll have the keys to the vault.

Expenses

I was driving through downtown Naples on a beautiful October Saturday. You have probably heard – and rightly so – what a beautiful city Naples is, and certainly there is a lot of wealth here, in the city itself and on lovely Marco Island.

On U.S. 41, the main north-south road connecting the main cities in the area, there are plenty of luxury car dealerships. I don’t mean the Honda Acura. I mean Maserati, Aston Martin, Tesla.

That’s fine.

But these are, for most people, expenses. Most people will not leverage a vehicle into a (spoiler alert!) ROI.

In the heart of downtown Naples is the difference between spending 6 figures to enrich your life or spending 6 figures to impoverish it. Just where U.S. 41 turns to the southeast is a cluster of establishments that spells out that difference in 2 words:

art galleries.

Art appreciates in value. Most vehicles do not. In a given transaction, one type of disbursement is an expense whereas one is an investment.

But while the dealerships are all up and down U.S. 41, you have to go to one special place for those art galleries.

What are the questions you’re asking yourself right now?

 

After the Storm

 

Be careful of working with contractors and repair professionals who might be overwhelmed with business after a natural disaster.
Not everyone has a solid business model; many small business owners act without planning and then get into trouble. There are too many entrepreneurs who say “yes” to too much work, they don’t manage their receivables, they don’t forecast and plan their cash inflows and outflows…
…they’re paying for labor and materials on time but the insurance companies or other customers are slow to pay them…
…and then *your* project stops without warning because this has multiplied in a dramatic business uptick and they’re insolvent.
There’s a name for this. It’s called “growing themselves out of business.”
Business owners aren’t going to tell you about this. So when you choose someone, do it on a warm referral, not just based on their quality of their work and the timeliness with which they keep their promises, but also how solid the business itself is.
If YOU’RE the owner of business with a sudden uptick, share your own successful business model with potential customers. Mention your consistent stream of employee candidates who want to work for you, your automated hiring and vetting process for employees, your diversified supply chain, your sparkling accounting records and low/no receivables that make your cash flows work, mention that you get a good night’s sleep daily because you have an amazing administrative team, not just the people on the front lines providing the services. (And if you don’t have these, you know how to reach us…don’t you??)
They’re shopping around. You know they are. So share with them the above warnings. Educate them as to what to watch out for with others in the industry, build credibility while you’re doing so, and position you own business as the one to trust.

When Should I Outsource My Bookkeeping?

You say that you’re not ready to outsource bookkeeping. I’m going to challenge you to get there. Here’s how:
[1] Become a leader in your own company
Make sure you get trained in how to delegate your bookkeeping, not abdicate it. That’s how microbusinesses go out of business. No oversight, and their money is gone, no legal fund either to pursue it. Just gone. And even if there’s no theft, what’s the point of bookkeeping if you’re not doing anything with the information? Delegate, and interpret the reports to make a decision (see #3 below for more on that).
[2] Get an ROI
If the money isn’t there yet to pay for it, that’s because you don’t have an engine to turn your time into dollars. You will be ready to get your bookkeeping outsourced when you are aware of how much more time will become available to you and how much profit you can reliably generate with that extra time.
[3] Learn how to turn your data into cash
Get trained on how to turn your accounting information into cash. Why bother with bookkeeping at all? There’s no point at all…unless you’re prepared to learn how to make money or save money (or both) with the information that you get from your bookkeeping records.
Until all 3 of the above are in place, don’t bother with your bookkeeping and don’t fret about outsourcing. Take it off your plate. Then make your time more financially valuable. Then get trained in how to monetize your accounting information. Then get trained. in how to delegate. Then find an expert.

Course Corrections and Your Board of Directors

Shocking news: Life doesn’t always go as planned.

Where does this leave a not-for-profit organization with a board-approved budget and a mid-year realization that something has changed.

So how does one approach this conversation with the Board?

Go with the high-level points of the journey:
* because of [a] we had envisioned [b] * when we observed/learned [c], we realized that [d] * we made a financial plan in order to create workability in making mission
* the principal differences from the original budget include [e], [f], and [g].
* here is the updated plan, and we have tactical plans in place to make this a reality.

It’s important to be committed to the mission, not attached to a circumstance, process, or goal that you realize is an unreality.

So keep your eye on the prize, develop new strategies and tactics and include a financial plan for workability. Inspire your board and go after that mission!

Ready

contributed by Jaime Campbell, CPA, MBA, CGMA, CTT, MCT

 

 

You started your business with a vision.

You thought.

You worked.

You inspired.

You produced.

Sometimes, you slept.

 

You planned.

You hired.

You executed.

You delighted.

Sometimes, you cheered.

 

You strategized.

You managed.

You invented.

You chose.

Sometimes, you laughed.

 

You are growing.

You feel freedom calling

And you feel the squeeze

The bottlenecks

You hear your legacy calling

And you hear the competing voices

Of overwhelm

Of not-fast-enough

Of why-not instead of why-yes

Of not-enough instead of here’s-how

 

Join the community

Join the circle

Join the visionaries

The leaders

The possibilitarians

Across every century

Join the pathmakers

Welcoming your creation

Into creation

 

Get clarity

Get it real

Get your team

Get your legacy

So You Think You Can Scale (Part 2 of 2)

(6) Set up team-based communication systems and share information freely with your team leaders.
You heard me. I said team leaders, not team. Even if you think you don’t have enough people to have team leaders, let this sentence be the last time in your business life that you think that.

You relate differently with your team when you recognize that they’ll be leading the next people you hire:
· You’ll train them on your decision-making frameworks, not just give them your decision. You’ll give them resources, not just answers.
· You’ll make sure that their compensation plan aligns with being and becoming a leader.
· You’ll be crystal clear about where they need to follow your lead to the letter and where they have the freedom to create.

(7) Make your calendar strategically reflect reality.
Huh?
There are five classes of activities that fill the life, and therefore the calendar, of every successful business leader. Everything, yes everything, fulfills one of these functions:
· Administrative
· Sales
· Marketing
· Operations
· Personal

Use your calendaring system to block out all of the appointments and classes, and assign each class a color.

If your inner voice is saying, “I don’t have time for that!” then I assert that you’d rather be busy than wealthy. Go get a job and beef up your volunteering. You’ll be happier.
If your inner voice is saying, “I do three or four of these in any 15-minute block!” then I assert that you’re letting other people, each person with a separate set of individual priorities, dictate how you live your life. Whose organization is this, again? Whose life is this, again?

It’s time to design your time to scale.

That means designing your schedule.
That means grouping similar activity classes.
That means creating expectations with others so every block begins and ends on time.
That means reviewing your weekly calendar at a 10,000-foot level to make sure each color is represented in alignment with a scaling organization.

You’ll need to do some research that, or work with a consultant, if you don’t already know what the Scaling Palette needs to look like for your industry, business life cycle stage, and goals.

(8) What is your favorite technique for growing your organization without your life getting busier? Write it in the comments below.

So You Think You Can Scale (post 1 of 2)

It starts with the formula (what else did you expect from me?) that many of us are taught from a young age:

I work -> I get results

Which, if you want to grow a business or a not-for -profit organization, is so horribly, horribly wrong.

Have you already discovered this?

The trick is to increase your organization’s impact without making yourself busier:

I work at creating systems and processes for my inspired team to follow -> I get BIGGER results

Same number of hours in your workday. Therefore…not busier.

What else?

 

(1) Make sure your business model is sustainable.

Never scale an organization that isn’t financially workable.

Unless you *want* to grow yourself out of business (see “How to Become an Employee”)

 

(2) Get the processes of your head.

Use checklists, flowcharts, cross-functional flowcharts, videos, screencasts, a knowledge base.

Or hire telepaths.

 

(3) Combine your processes for accountability and support.

Your empowered, inspired, and integrious team goes to a team-oriented project management tool such as Wrike or Asana that they use to proudly check off their completed tasks AND ask for help and support where they need it.

 

(4) Establish communication protocols.

E-mail is used for what kind of communications? Texting? Phone calls? Video calls? Webcast? Snail mail? Yammer? Instant messaging? Popping your head into someone’s office? Water cooler? Lunch?

To what extent do synchronous communications need to be scheduled in advance and when will you and your team be available to communicate synchronously? What is your organization’s commitment to turnaround time for asynchronous communication?

 

Guess what. You get to design this. You get to choose. Really.

 

(5) Make sure there is / Make sure you can create more market demand for what your organization does.

“But how could anyone NOT want our product/service?” I hear you ask.

No, you’re not asking that. You were actually paying attention while your currently-successful organization was getting off the ground.

So be ready to pivot if the market is changing. (Hint: The market is changing)

 

Which one of these does your organization currently have nailed? Which one of these is “what’s next” for your organization?

More to come next week!

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844-884-3766 | david@tieroneservices.net

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