Wednesday, November 30, 2011

Business Beginnings: How I Handled My First Unforeseen Disaster


The original article is from http://www.businessinsider.com
Written Young Entrepreneur Council | Nov. 8, 2011, 11:17 PM

If you want to read more, please refer to the link above.

The biggest unforeseen disaster I faced was when an employee fell from one of our trucks during a big moving job, fracturing his arm.  Workers compensation was issued for the ensuing medical bills, but this was the first time we had to deal with a severe injury and incident report.It began with a big office job where we were using a 26ft heavy duty box truck to handle the volume of desks that were to be loaded.The loading process went smoothly for the most part, we carried very heavy desks out of offices down the elevator, out the front doors and into the truck, without harming any property or the items themselves. But then something happened.The last item loaded in was the top of a conference table which was incredibly bulky, long and heavy. Since we already filled up the truck with other items it had to be placed at the very back of the truck, not a safe spot for such a heavy item.  Ultimately it was placed at an awkward angle and awkward position and slid out of place, knocking the team member loading it off the truck.


What went wrong? It was a new unfamiliar situation with the office move compared to our usual residential jobs. It was also one of the larger jobs we had completed, and one of the first times we had a full team of employees doing the work rather than my partner and I just doing the moving ourselves. We failed to prioritize the items going in the truck properly (i.e. heaviest should have gone in first) and our crew was not properly trained for the job. But when a business owner is just getting started, a lot of times they don’t think proactively. A simple question at the beginning of the job to the client would have reconfirmed all the items to be removed and helped us load more effectively.
Here are some lessons we learned from this experience:
  1. Be extra cautious when the situation has unfamiliar components. The job we were doing was way bigger and more complicated than any we had done before.
  2. Always train first. We should have trained our crew on how to load the truck properly before loading the truck. This would have made the crew more efficient and safer way to  handle the workload, and we might have also avoided the on-site injury.
  3. Be pro-active. Injuries happen but they can also be prevented. This includes everything from ensuring the team has the right tools and safety equipment and having the guys working in tandem to safely complete all activities. More importantly this means implementing the training procedures and coaching (both in the locker room and on the field) necessary to perform job duties correctly when hiring your first employees.
  4. Always confirm the details. Sometimes items can be overlooked but sometimes items can be “thrown in” by the client last minute. This is why we confirm and re-confirm all the details associated with the job by the client, especially with large commercial jobs.
In business there are many challenges and a lot of them are truly unforeseen. However, you can always be more prepared and resilient when such incidents arise. Pay close attention to your operation and ask people on the ground level what they see, need and want.  Remember, an ounce of prevention is worth a pound of cure.

Nick Friedman is President and Co-Founder of COLLEGE HUNKS HAULING JUNK, the largest and fastest growing US-Based junk removal franchise opportunity. He was recently named one of the Top 30 Entrepreneurs in America Under 30 by INC Magazine and is an Ernst and Young Entrepreneur of the Year Award Finalist.


The Young Entrepreneur Council (YEC) is an invite-only nonprofit organization comprised of the country’s most promising young entrepreneurs.  The YEC promotes entrepreneurship as a solution to youth unemployment and underemployment and provides its members with access to tools, mentorship, and resources that support each stage of a business’s development and growth.

Startup Financial Models: Best Practices in Spreadsheet Design


The original article is from http://www.businessinsider.com
Written David Tetenff Venture Capital | Nov. 8, 2011, 11:14 PM

If you want to read more, please refer to the link above.

While some entrepreneurs may think that financial models are just a formality that needs completing in order to placate straight-laced venture capital types, the reality is that models can be essential tools for creating and analyzing the roadmap an entrepreneurial venture should follow.  As soon as you’ve figured out the general area in which you’re building a business, you should have at least a simple model. 

I know some people will ask, “Did Mark Zuckerberg build a financial Facebook?”  The answer is, almost certainly not.  But then again, very few of us will cofound a billion-dollar company which gets massive traction on day 1.  A lot of entrepreneurs waste time and energy on companies which they don’t understand are destined to fail; one of the reasons for that is that they haven’t done any basic financial analysis.  In particular, if you talk with VCs, they’re going to want to at least get comfort that you know the value of the key variables that drive your business, e.g., advertising rates.

A well-designed financial model has a clear purpose, flows intuitively from inputs to final outputs, is well documented, and is easy to use and read.  (There are obvious parallels with how to write code.)

Given those objectives, I've compiled a list of the best practices in spreadsheet design. I've tried to summarize the most useful and easily achievable steps, so that even casual users can start making their spreadsheets more valuable without delving into macros or VBA programming.

Purpose of a Model
A financial model should be a virtual re-creation of the actual business. A good model should have the ability to test assumptions in order to analyze the impact on future financial performance, including growth rates, operating margins, product lines/individual segments, and refinancings/recapitalizations. The purpose of the model should directly influence how you think about its design and functionality.

An Effective Model
The effective model should be realistic and be backed by reasonable, defensible assumptions and projected performance. It should have adaptable and dynamic schedules and should be easy-to-follow. An effective model should be modular and have a logical cascade, so that anyone can audit the drivers.

Atomize.
It's sometimes tempting to drive towards a final answer by hard-coding numbers inside a formula, but in reality, doing so destroys a lot of the potential value in your model and prevents it from transforming into a tool (which every good model should aspire to be). Therefore, always atomize your formulas.Extract all the inputs from each formula -- those should be the only hard-coded elements in your model.

Standardize.
The test of a model's quality can be determined by how easily it can be used or recycled by another person. Therefore, the more you're able to standardizeelements of the spreadsheet design, the more likely it is to stand up under a variety of use cases. Consistency of a model will make your model more understandable and easier to construct. Make sure the model is easy to follow for yourself as well as for others.

The standard design elements I use:

-       Color-code your inputs as blue, formula cells as black; references from another schedule or worksheet as green and warnings to another user/links to another model as red.
-       Use exact figures.  Excel can easily round for you  according to your specified format.
-       Never input the same number twice – let Excel flow and be dynamic.
-       Don’t embed inputs in formals; instead, break out inputs into separate line items.
-       In tables, try to structure them so that you have only one formula per row or column, so that a single formula can be copied across or down en masse.  This constraint may take some thought to work around, but it's so worth it when you need to make changes and know that all you need to do is copy straight across.
-       If you're using multiple worksheets, use each column for the same purpose, e.g., Columns D-G in all the tabs are equal to the next four calendar quarters.
-       Include as many Checksums as possible.  Sometimes the idiot against whom you need to idiot-proof your model is, in fact, you.
-       Add cell comments to “leave a paper trail” and to highlight where you have follow-up questions.  However, I dislike using the 'comment' feature, because these comments don't print well and are often overlooked and accidentally deleted.  Instead, i'll set up a column where people can see my comments.
-       Calculation settings should be set to: (1) “Automatic except tables” (if “Manual” is checked); (2) “Iteration” should be checked (default settings typically fine: “maximum iterations” = 100, “maximum change” = 0.001).  A circular model will not calculate if iterations are unchecked.
-       If possible, stress test each of your assumptions
-       To maximize efficiency, you must learn the  basic keyboard shortcuts.  A sure sign of an inefficient worker is someone who uses the mouse heavily when in Excel or Word, instead of using keyboard shotrcuts.
-       Make formatting consistent and nice – sloppy formatting will certainly give the  impression that your analytics are also sloppy.

Summarize.
Finally, create a summary sheet that contains key statistics, assumptions, and outputs from the model. Include a documentation section that notes who developed the model, who last edited it, key assumptions, and which version is currently being used.

Google + For Businesses: At Long Last, It’s Here


The original article is from http://www.businessinsider.com
Written Small Business Trends | Nov. 8, 2011, 10:12 PM

If you want to read more, please refer to the link above. 

After much anticipation, we’re finally seeing Google + Pages for business. They function much like Google personal profiles do: you can update your status, add people to Circles, host video Hangouts (video conferences) with others, and interact with other brands and people.

The Official Google Blog says:

“For businesses and brands, Google+ pages help you connect with the customers and fans who love you. Not only can they recommend you with a +1, or add you to a circle to listen long-term. They can actually spend time with your team, face-to-face-to-face.”

The first feature is called Direct Connect.  If you are searching on Google for a brand, simply put the + symbol before your search term to find the direct link to the company’s Google + Page (if they have one). You’ll automatically follow the company by searching with the new “+ company name” if you choose this option, and be taken to its Google + Page.

The other feature is simply that Google + Pages (and Profiles) appear in Google search. In searching my own name, my Profile was the first result. I’m not sure if this is a good thing or not.  But at the very  least, if you regularly update your Profile, it seems like a good way to connect with other Google + users.

There are a few drawbacks at this early stage of Google +. One is the lack of vanity URLs. Right now, your profile URL looks like this: https://plus.google.com/u/1/112445753792040250232/posts.  I’m sure Google will get around to putting in user names or brand names in this, but for now, it’s unsightly.  And long and non-user-friendly.

Google + Pages are also lacking analytics, and I’m sure that will be addressed as well.  But for now, I want to know why I should put more effort into using Google +, and analytics are a great way to convince me.

Looks To Buy For


The original article is from http://www.fastcompany.com
Written BY Martin LindstromMon Nov 7, 2011

If you want to read more, please refer to the link above.


Some years ago one of my friends, a former photographic model, decided to participate in a documentary that set out to study the advantages enjoyed by the more attractive people in our society. Part of the process involved her dressing down, changing her posture, and adopting a surly, scowling demeanor. Her job was to engage others in helping and supporting her in a variety of situations. She would then transform back into her normal impeccable self and attempt to replicate this exercise.
What did she experience? As a dowdy shadow of her usual self, she only managed to enlist two out of 15 people to help her. But as soon as her usual gorgeous self re-emerged, 12 out of 15 were more than willing to offer whatever assistance she required. The only difference between the two scenarios was her looks.

An interesting conclusion and, now, a scientifically proven fact. Last week, four scientists from the University of British Columbia published a paper on just how willing we are to open even our most private doors to people of beauty. The Canadian academics used hotornot.com; a site designed to sort the beautiful from the not-so-beautiful people. Then, targeting Facebook, they used the "Hottest" photos when they created 102 robots--or "bots"--whose sole mission was to infiltrate the pages of 5,053 random subscribers to the social media site. Initially, 19% of cases accepted the bots, but when the bots changed tactics and plugged into friend networks, the uptake rose to 59%.

Are we really that fickle? It appears so. As such, we should have no trouble at all imagining an outrageously good-looking woman managing to infiltrate an "enemy" network as in, say, a James Bond scenario. After all, this was the downfall of a disaffected Israeli nuclear technician by the name of Mordechai Vanunu. In 1986, he approached the British press with details of Israel's nuclear program. Mossad, the Israeli intelligence agency, immediately sprang into action. They sent a beautiful, blonde woman to seduce him. Before he knew it, he was kidnapped, whisked out of England and taken back to Israel, where he was charged with treason.

Seductive beauty, however, is only part of the story. Our ability to imitate people's behavior seems to have an equally powerful influence on us. Over the years, a range of studies has shown that we are predisposed to people who imitate our behavior. Take for example, an experiment carried out at Duke University, which involved conducting studies around the globe. The results showed that a person's trust and likeability increased when their personal gestures, like head movements, arm positions, and seating posture, were correctly mimicked.

Taking this one step further, researchers infiltrated Second Life, the online virtual world where users--or "residents"--interact with one another through avatars. By placing avatars designed to mimic the customer (or resident) in the game's retail shopping stores, the interaction was firstly extended by several minutes, but they also noticed a significant increase in revenue.

Unpublished preliminary research shows that it doesn't stop here. In fact, the words and phrases we use subconsciously will affect us if the person we're dealing with chooses to mirror our speech. In other words, if you tend to use words like "awesome" or "freaking idiot," and the person you're communicating does likewise, you're more likely to think you're more of one mind and, so, trust levels rise--the sense of camaraderie is established after sharing just a few short words or phrases.
Scientifically, this could be explained by nerve cells called mirror neurons. It's a phenomenon more commonly termed "monkey see, monkey do." Think about something as simple as a yawn; one person's big inhalation of air quickly spreads to the next. Several fMRI studies show that the person observing has a physical sensation of performing the task. This may go some way to explain why watching sports is one of our most enjoyable pastimes. Not only are we observing elite athletes on a field, but we tend to become so involved that we also feel as much a part of the action as those on the field.

The world of perception and persuasion is quite simply far more powerful than we think. Imagine for a moment an avatar bot, designed to be immensely attractive, that imitates your gestures, uses your expressions, and simulates your moves. It's likely the researchers from Canada would be recording a far greater conversion rate than their already large 59%.

Even though we're reluctant to admit it, we're hardwired to be selfish. We tend to be attracted to attractive people, whose beauty might reflect well on us, not to mention the possibility of creating beautiful children. This aspect of human nature will pave the way for sophisticated bots to come into our lives and harvest our personal details--be it our favorite ice-cream flavor or our email address.
Next time someone seriously good-looking asks to be your friend, seriously consider whether you're willing to accept, or reject. Either way, you stand to lose.

Sunday, November 27, 2011

JAMES ALTUCHER: How To Create Your Own Luck


The original article is from http://www.businessinsider.com
Written James AltucherThe Altucher Confidential | Nov. 8, 2011, 5:56 PM

If you want to read more, please refer to the link above.

1) Luck is similar to “being at the right place at the right time”. So you can easily position yourself there. We know that the right place for right now is somewhere in social media. There are still many niches (plumbers, diamond wholesalers, etc) that aren’t properly using social media correctly. The big agencies are ignoring them and they are too small and focused to understand how to use direct marketing via social media.

If I were starting a business right now I’d either do lead generation via social media for a small but focused niche (diamond wholesalers, small restaurants, etc) or I’d provide financing/lending for companies that are doing this and have established records of turning profits on money spent. I know several companies doing the above but it’s an incredibly wide open, gaping hole in the industry.
If I were a banker I’d look to buying companies all over the country in this space and then bringing the combined entity public in the IPO boom that’s about to start happening.

2) My venture firm being sold I learned one thing: have at least one partner who is a great negotiatior. “Be bad” and someone will be willing to buy you usually doesn’t work. I was lucky there. Although, I will say, I had good, professional partners that knew how to negotiate very well. The one guy’s main technique was to act like we always had alternatives when we never did. And he would ignore the other party for a day or so while they got desperate. It’s a gutsy way to negotiate but it worked. Here’s part of the reason it didn’t work out for me as a big VC.

3) The mental health facility I sold I learned some very important things. Quantity, persistence,  and story-telling. You need to hit everyone and then call everyone back twice. We must’ve made 30 calls and then 30 follow-ups to make sure we spoke with the right person. And then with each person we pushed to have a phone call with the company. Then once we had a potential buyer on the phone we had to make sure we told at least three different stories: how the company doing (and was going to do ), the reasons why growth was a LOCK, and the reasons why management was incredible. Then we got the deal done.Which was a story unto itself. (Here’s my prior post on TechCrunch on how to best sell a company).

4) Stockpickr, as I mentioned before was a matter of being both proactive, and having friends in the right places. But it also was a matter of vigilance. I had a particular passion about how a financialcommunity could develop with NO NEWS. I hate the news. It also was a matter of nourishing relationships built up over a five year period of non-stop work in the financial media space.

So here’s how you “Create your luck”:


A) As Wayne Gretzky says, “skate to where the puck is going”. Don’t start a soft drink company competing against Coca-Cola. Start a company in a fast growing industry that has a wide-gaping hole in it. It’s not hard to identify those industries and holes.

B) If you can’t create the company in that space, can you arrange financing for companies in that space through some of the techniques roughly described above. This still allows you to leverage in the growth of the sector.

C) Learn how to negotiate.


D) Quantity. You’re never going to win if you depend on one potential buyer or one potential customer. The first time I tried to sell my company, Reset, I tried to sell it to HBO. I had only one potential buyer. No good and it didn’t work out. But that god because the next time I tried I made sure I had ten potential buyers. Ever since then I almost get a reflux reaction in my stomach when I realize I’m back down to the one buyer-one customer model, which is never good.

E) Persistence. When we were selling the mental health facility there was one time we got a wrong number when we called a public company. We got switched to the wrong person in the company repeatedly. My business partner, Dan, kept calling until he finally convinced the operator she was connecting him to the wrong person. This was one of only 30 companies he was calling so he could’ve just left a message and given up. Instead he got her one the phone eventually and she was the one who coughed up $41.5 million in cash, three times the closest other offer.

F) Story-telling. Everyone is a little boy or girl at heart. We all want to sit on the floor and bounce a ball and watch Saturday morning cartoons. A story has a beginning, middle, and end. Make sure your story is down pat when you are talking with anyone about your idea, your company, your self (on a date, for instance). It doesn’t have to be so “planned”. But make sure you are constantly improving your storytelling abilities. For instance, before I gave a talk last week in Arizona I watched 30 minutes of Ellen Degeneres and Jon Stewart. Comedians are excellent story-tellers with perfect timing.

G) Nourish relationships. The size of your network increases your luck exponentially. But
relationships take Time to nourish. When I wrote here two weeks ago about “the 9 Skills for Becoming a Super Connector” I mentioned that I forgot what “Time” was for one my list. Now I know: over time relationships get nourished. A simple connection becomes a friend, becomes family, becomes someone who actively wants you to succeed. That takes weeks/months/years to happen. Important to note: expressing gratitude across your network is the surest way to strengthen it.

H) Passion. Luck will ALWAYS follow your passion. Warren Buffett was, of course, extremely luck that his passion was investing in 1950. But almost every passion can be used to make money if you have all of the above. Even if your passion is just “how do I meet the love of my life” and you apply all of the above you will “get lucky”, so to speak, and find success at your endeavor.

What Productivity Really Is?


The original article is from http://www.businessinsider.com
Written Tim BerryPalo Alto Software | Nov. 7, 2011, 11:45 AM

If you want to read more, please refer to the link above.

I think it’s a concept that grew up with the industrial revolution. Productivity was measured as factory work, in units produced per hour. Visualize finished cars flowing out of the assembly line. Later I saw Four Destructive Myths Most Companies Still Live By on the Harvard Business Review, by Tony Schwartz. These myths are also about productivity. I really enjoyed his myth number two:

Myth #2: A little bit of anxiety helps us perform better.

Which he tears apart elegantly with this: The more anxious we feel, the less clearly and imaginatively we think, and the more reactive and impulsive we become. But my favorite of Tony Schwartz’ myths is his number four:

Myth #4: The best way to get more work done is to work longer hours. No single myth is more destructive to employers and employees than this one. The reason is that we’re not designed to operate like computers — at high speeds, continuously, for long periods of time. Instead, human beings are designed to pulse intermittently between spending and renewing energy. Great performers — and enlightened leaders — recognize that it’s not the number of hours people work that determines the value they create, but rather the energy they bring to whatever hours they work.

As technology changes the world, physical presence is no longer the same as work presence. I can be sitting at a desk in my office and miles away, and that’s much, much easier now than it used to be. So how do we measure productivity?

I think we have to look for results. Numerical results. Measure productivity by outcome, not input.

Office Politics 101 C


The original article is from http://www.forbes.com
Written April Dykman April Dykman, Contributor



Dealing with bad office politics
It can be difficult to stay positive if you feel like you’re living in an episode of The Office, but there are ways to deal with bad politics. Here are some tactics to deal with the negative:
  • Don’t participate in the telephone game. Gossip will inevitably reach your cubicle, but ask yourself if there’s any credibility to the rumors. Whether there is or there isn’t, don’t pass it on. People who enjoy gossip usually only have half the story, and taking part is a sure way to wind up with your foot in your mouth.
  • Get to know the people who practice bad politics. Instead of distancing yourself from them, as I once did, get to know these people better. Try to understand their motivations and goals to work more harmoniously with them (or at least avoid being in the crossfire as much as possible). Be polite, but be careful about what you say, too, which brings us to the next point…
  • Watch what you say “in confidence.” Most things said in confidence will get out, usually starting with “I’m not supposed to say anything, but…” Disclose at your own risk. I tried to be professional and polite to everyone I worked with, but there were very few coworkers I trusted. Just because you like someone doesn’t mean you can trust them with your confidential information.
  • Want to give someone a piece of your mind? Keep it to yourself. You might think it would feel good to “put someone in their place,” but it comes at a steep price. You’ll lose a potential ally (the target of your rage), and you’ll be viewed as unprofessional and difficult, which will affect future promotions.
  • When all else fails, keep documentation. Sometimes you’ll encounter a particularly difficult person. If that’s the case, it’s unfortunate but necessary to keep records in case the situation escalates or winds up in human resources. Again, keep it to yourself. The last thing you want is for your coworker to hear that you’re keeping a file on them — that’s a quick way to make a bad situation worse.

Office Politics 101 B


The original article is from http://www.forbes.com
Written April Dykman April Dykman, Contributor



  • Network up and down. Politicians go on the road to meet “the people,” and you have to do the same, but within your company. For example, I had a department head who weighed in on my evaluation, but I had no interaction with this person. Once again my favorite supervisor had the perfect solution: find a project that will get you some face-time. She helped me get in on a project in which the  head of the department was involved, and I was able to make a favorable and direct impression.
  • Find a mentor (or two). If you don’t already have one, make it your goal to find a mentor in the next two weeks. I had a couple of them at my last job, and they helped me navigate difficult personalities; look for solutions when I needed a sounding board; and check my e-mails for sarcasm (priceless if, like me, sarcasm comes as naturally as exhaling). Most people like to help others — just be sure to come to him or her with a problem and a few possible solutions. Your mentor isn’t there to listen to you complain or to solve all of your problems for you.
  • Take initiative. Start something new, even if it’s just a fun thing for your coworkers to do together. Some of my coworkers organized yoga-at-work classes during lunch, fundraising activities, and office holiday celebrations. It doesn’t have to be something that increases revenue to show leadership and team-building skills. (Although if you can identify a way to increase revenue, by all means, go for it!)
  • Overcome your fear of speaking up. Many people have good ideas, but they’re afraid of being shot down or of what might happen if the idea bombs. But participation is an important part of good office politics. It shows that you’re engaged and thinking of solutions. If you’re too scared to speak up, talk to your mentor about ways to present your ideas at the next meeting or try joining a speaking group, such as Toastmasters.
  • Look for ways to look good. And not only ways to make yourself look good, but find ways to make your team, your boss, and your company look good. For example, I knew a designer who entered every design contest she could. If the company paid her entry fee, she entered something. She tried to get her coworkers to enter, too, but if one declined, she’d enter a second design into the contest. When she’d win one, it made her look good, and it made her design team and department look good, which in turn made her boss look good. And every boss wants to look good.
  • Think about the best interest of the team or company. Before asserting your opinion or arguing your case, ask yourself who will benefit. Are you against change because you don’t want to take the time to learn something new, even though it’ll improve a system? Think big-picture and beyond your immediate desires. When a disagreement starting going downhill, try to get the group to refocus on the big picture.
  • Be positive. This isn’t always easy. Believe me, I’ve never been accused of being Little Miss Sunshine. But the people who constantly complain and play the victim are no fun to be around. People will start avoiding you, even if what you say has some merit. One coworker and I had a routine to deal with tough days at the office: We’d meet at the picnic tables for lunch and spend the first 10 minutes or so venting, then we’d move on and discuss anything but work. Sometimes it’s cathartic to get things off your chest, but it doesn’t lead to positive solutions, so don’t dwell on it. You want a reputation as a problem-solver, not a whiner.

  • Office Politics 101 A


    The original article is from http://www.getrichslowly.org
    Written  (by April Dykman)

    If you want to read more, please refer to the link above.


    It’s a fact of life
    No matter how you try to hide, office politics will find you. Career site Mind Tools explains that it’s an inevitable part of work life for the following reasons:
    • Some people have more power than others because of hierarchy or influence. For example, at many organizations, seniority plays a factor in the decision-making process, even though it’s not explicitly stated.
    • There’s often some form of competition within an organization. It could be anything from a promotion to the corner office to the choice projects. When two colleagues are up for the same promotion, for example, there’s usually a lot of politicking in the office.
    • Many people feel emotionally invested in their job, which means they’ll take measures to get their way. This isn’t necessarily a negative thing, but when two coworkers have conflicting ideas or goals, it can be a problem.
    • Work decisions are affected by professional goals and personal factors, creating more possibilities for conflict. For instance, one employee with a child is allowed to work half-days, while another isn’t given the option.
    • Office teams and departments often compete for finite resources, which is usually short-sighted and ignores the best interest of the organization. When there’s only enough money for 10 new computers, suddenly every department thinks their need is the greatest.
    Even people who don’t work in an office have to deal with workplace politics. My dad, for example, is self-employed, but when he’s on a job site, he still deals with gossip and power plays. It can’t be avoided when you work with people.

    You also can’t ignore it by refusing to practice good office politics, such as networking and self-promotion. I had a coworker who complained that her colleague was getting all of the attention and accolades. She believed people should do a good job and then let the work speak for itself. Unfortunately, her approach wasn’t ever going to pay off. By not practicing good politics, she was missing chances to promote herself, her team, and her organization. You don’t have to brag, but you do have to promote your work in a professional and appropriate manner. Remember, too, that most managers are busy people who can’t be expected to notice (and remember) every success from every employee.

    5 Ways to Keep Your Biggest Customer


    The original article is from http://www.inc.com
    Written By Geoffrey James |  @Sales_Source   | Nov 8, 2011

    If you want to read more, please refer to the link above.


    Contrary to popular belief, a big customer that buys a lot of product from you is not necessarily a good thing.  Big companies have a habit of pigeonholing smaller firms into being suppliers of commodity products.

    That way, they can play you off against your competition in order to push prices down.  They don't care whether you make any money on the deal because they can just switch to another vendor should the price drop drive you out of the business.

    The good news? There are five ways to defend yourself against this kind of pricing game.

    Strategy #1: Differentiate Yourself.  If your firm offers a needed product or service that no other company can provide, then it’s impossible for the big company to play you off against your competitors.

    Strategy #2: Provide Expertise. If you or your firm can offer expertise that the customer needs in order to fulfill their goals, you can be strategic to them, even if you’re a commodity supplier.  For example, a company that sells glue for manufacturing consumer electronics might have world-class expertise in volume manufacturing that, if shared with their customer, would make them more profitable.

    Strategy #3: Create a High Replacement Cost. If it would cost the customer a prohibitive amount to replace your firm's products and services, they're far less likely to replace you with another competitor.  What's important here is that you create the high replacement cost AFTER you've made the sale, because prior to the sale, the big customer (if they're at all self-aware) are likely to see the replacement cost as liability and thus be less likely to buy from you in the first place.

    Strategy #4: Really Know the Account. If you can get yourself involved in the inner workings of the customer account and become part of their strategic planning, they'll begin to see you as a consultant rather than a mere supplier.

    Strategy #5: Generate Reverse Credibility. This one is tricky, because credibility usually flows from the larger company to the smaller one. (e.g. "Our customer list includes GM and Oracle!")  However, if a smaller firm has a market reputation that helps the larger firm create credibility in a new market, the larger firm will may see the relationship as strategic.  Example: the Taiwanese computer manufacturer Acer used to publicly tout its' relationship with boutique studio FrogDesign in order to seem more "cool" in the consumer PC space.

    Way to Be More Creative


    The original article is http://www.inc.com
    Written By Jeff Haden |  @jeff_haden   | Nov 8, 2011

    If you want to read more, please refer to the link above.

    If you think necessity is the mother of invention, you’re wrong. Necessity can overcome caution or inhibition and allow us to try something we may otherwise not have tried, but necessity doesn’t make us more creative. When we need to do something that means something’s wrong, and when we’re under stress we typically fall back on the tried and often not so true—and kick ourselves later for not being more innovative or creative.

    Think about the last time you felt scared or threatened: Your heart rate spiked, your hands tingled… and all you could focus on was whatever threatened you. Creativity naturally goes out the window when all you can think about is getting through the next few minutes.

    So what’s the easiest way to be more creative? Decrease stress.

    • Recognize the power of compliments and praise.
    • Go upside even in the face of downsides. Many people only ask for ideas when times are tough, but that is the worst time to expect employees to be more creative.
    • Adopt a few ideas. A sincere compliment—and isn’t adopting an idea the most sincere compliment of all—makes it much more likely a behavior will occur again in the future. Never ask for ideas unless you’re willing to implement the good ideas you receive. 
    • First, eliminate your major stresses. I know that’s not easy, but you’ll never think of great new ideas if you don’t deal with old problems—and the more stress caused by a problem the less likely you’ll be to come up with a great solution.
    • Get out. Higher-level thinking is hard—and takes up a lot of energy. That’s why establishing great habits is so powerful: We don’t have to think, we can just do.
    • Borrow freely. All around you, businesses and people are doing things really well. Sometimes the best innovations, at least to you and your business, only require that you be willing to learn from the  success of others.  

    Cozy Up to the Competition


    The original article is from http://www.inc.com
    Written By April Joyner |  @aprjoy   | Nov 8, 2011

    If you want to read more, please refer to the link above.


    Find ways to work together
    At the very least, touch base with competitors to stay on top of industry trends. That way, you can gauge how your own performance compares to others.


    Further define your market
    Lancaster says knowing your competitors can help you better articulate your own business proposition. Even if companies have similar offerings, they often differ in their focus or fundamental purpose. Having intimate knowledge of those distinctions will allow you to clarify to customers what makesyou unique.


    Is it advisable to show competitors your entire hand?
    Though she advocates forming as many industry connections as possible, Lancaster acknowledges that some bonds may be more difficult to forge. If your company depends on a first-to-market advantage, for instance, it probably isn't feasible to develop a close relationship with the upstart nipping at your heels. But in most cases, she adds, seeking a relationship with industry peers has more upside than downside. "The biggest challenge I see with the entrepreneurs that we work with is that they get isolated," she says. "Often, they're reinventing the wheel."


    One mistake you don’t want to make
    Lancaster offers one caveat. Though competitors can yield valuable information, take care not to let that information have too much influence on your own plans. "You shouldn’t derive direction from your competitors," she says. "You should get clear answers for that on your own."




    6 Great Tools to Stay in Touch With Customers


    The original article is from http://www.inc.com
    Written By Jeff Haden |  @jeff_haden   | Nov 8, 2011

    If you want to read more, please refer to the link above.


    Want to stay in touch with customers without seeming obvious or gratuitous? It’s easy. The key is to have a reason.

    non-sales reason.


    Set up a Google Alert on each customer. Doesn’t take long; in most cases getting weekly updates is plenty. Set up an alert on the person’s name, company name, and perhaps his or her industry and topics of interest. Then you can re-connect with something to offer: congratulations, information about new competitor, trends in their industry, etc. The key is to turn a generic, "Thinking of you..." into a much more meaningful, "I immediately thought of you when I saw this."

    Offer to recommend. Many people feel uncomfortable asking others to complete LinkedInRecommendations. Instead of waiting for a customer to ask, jump in and write one. Not only will you strengthen a connection, but you also get the chance to (subtly) describe your business and services when you discuss how you and your customer did business in the past. Besides, people tend to like—and remember—the people who like them.

    Ask for input. While the, “How can we improve our products or services?” inquiry is OK, go a step farther and ask a customer to share their knowledge or expertise.

    Comment. Lots of people write blog posts and articles.

    Offer to provide a credit reference. Most suppliers ask for references before extending credit. If a customer has a solid history of paying on time, offer to serve as a reference if they set up other credit relationships.

    Play J. Edgar Hoover (but in a good way). How embarrassing is it when someone asks you, "How was Patricia’s first year in high school?" and you can't remember their child’s name, or whether their kid is in school, or even whether their kid is a boy or girl so you can at least respond with a weak, "Really good…  and how's your, um, daughter doing?" Conversations are like a gold mine for personal data, but you have to store the conversational treasures you dig up. Add notes to your contacts. Keep a database. Do whatever works for you. Memories come and go, but electronic data is forever—which is exactly how long you want customer relationships to ask.


    Warren Buffett's Two Rules on Portfolio


    The original article is from http://www.forbes.com
    Written Charles Sizemore Charles Sizemore, Contributor


    It’s been a rough year for the hedge fund legend. According to the Financial Times, Mr. Paulson’s flagship Advantage Plus fund was down 47 percent for the year (see article). The unleveraged version of the fund—ostensibly more conservative—was down by “only” a third. It doesn’t matter if we’re talking about a multi-billion-dollar hedge fund or a $50,000 401(k) plan.  The math is the same.  In order to get back to break even you have to double your money, and that’s not particularly easy to do in a short period of time.

    Take a look at Figure 1. This chart shows the subsequent gains that you’d have to earn in order to recover a given loss. A 10 percent loss requires only an 11 percent gain to get back to break even. A 20 percent loss requires a slightly higher 25 percent to recover.

    But now take a look at the bottom of the chart. A 90 percent loss requires a 900 percent gain to break even. A 99 percent loss requires an almost unfathomable 9,900 percent rise. Suffice it to say that, while 90 and 99 percent losses are unfortunately quite common, 900 and 9,900 percent gains are exceptionally rare.


    This is what prompted Warren Buffett to pen his first two rules of investing:
    1. Don’t lose money.
    2. Don’t forget the first rule.
    John Paulson broke Mr. Buffett’s two rules by making an enormous bet on an inflationary boom and by failing to ask that all-important question: What if I’m wrong? Paulson had roughly 30 percent of his fund in financials, 15 percent in materials, and 9 percent in oil and gas. (See John Paulson’s current portfolio holdings here.)


    Good investors—and good gamblers too, for that matter—practice risk control. Whether through careful use of position sizing, diversification, hedging, keeping cash in reserve, or even tools such as stop loss orders, they have processes in place that prevent an investing mistake from turning into a catastrophic loss they may never recover from.

    Know When Your Customer Will Say "Yes!"


    The original article is from http://www.inc.com
    Written By Geoffrey James |  @Sales_Source   | Nov 7, 2011



    Sales Checklist #1: Financial Conditions (True/False)
    1. The customer has articulated a relevant need.  This can be a goal that needs to be achieved or a problem that needs to be solved.  It's relevant if (and only if) your offering addresses that need.
    2. The customer has assessed the financial impact. The customer has estimated or has confirmed your estimate of what it will cost, in terms of lost revenue, regulatory expense, lost profit, etc., if the need remains unsatisfied.
    3. The customer has a budget to address that need. The customer, after assessing that financial impact, has committed (and is willing to spend) funds that otherwise would be spent on higher priority items.
    SCORING: If any of the three items above are "false", then the customer is not going to buy.  If the answer to ALL of the three items above is "true", the customer MIGHT buy, depending on the second checklist.
    Sales Checklist #2: Psychological Conditions (True/False)
    1. You have already helped this customer.  For example, you have provided a unique industry perspective during your discussions or have brought your customer a referral for a potential customer for the customer’s business.
    2. The customer believes your offering is unique or rare.  In general, this means that you have established that your firm is the only viable source for what the customer actually needs to solve the problem.
    3. The customer considers you an authority.  You have revealed something about your specific background or experience that leads the customer to consider you uniquely knowledgeable about the issues involved.
    4. Buying will bolster this customer's self-image.  The customer has made specific statements that define himself or herself as the type of person who needs and buys what you’re offering.
    5. The customer knows peers who've bought from you.  Customers are deeply swayed by "social pressure" which you generally create by providing examples and references that match the profile of the current customer.
    6. The customer likes you personally.  During your conversations, you've uncovered similarities between yourself and the customer, and have communicated in words and deeds that you truly respect that customer.
    SCORING: For this checklist, the scoring is cumulative.  If most of items on the list are "true" you’re likely to get a "YES!" If only a couple of the items are "true" then, it's iffy.  If all of them  are "false," the chances that you’ll get a "YES!" are slim indeed.
    The first checklist is based upon a conversation with Mark Sellers, author of the excellent book The Funnel Principle.   The second checklist is based upon a conversation with Dr. Robert B. Cialdini, arguably the world’s foremost expert on the psychology of influence.

    Saturday, November 26, 2011

    Built to Survive: The Darwin Approach to Business


    The original article is from http://www.inc.com
    Written By Jay Steinfeld |  @BlindscomCEO   | Nov 7, 2011

    If you want to read more, please refer to the link above.

    At Blinds.com (and probably at most companies), our marketers are the ones who lead the charge. They want to get new products and services "out there" pronto, earning income and generating cash. Meanwhile, the information technologists tend to drag their feet, wanting to get our technology perfect before it can see the light of day. I'm glad I started small—because I learned from every experience. On our website—and generally, in our business—it was easy enough to add features and remove bugs along the way. And it has paid off: Now we're the world's undisputed leader in online blinds sales. Had we waited until we had a full-featured, bug-free website, we might still be stuck in development with no sales and no money with which to innovate.

    At many of the world's most successful companies, evolution is standard strategy. Amazon launched with just books; now it sells almost anything it can ship. When Apple launched the iPhone, it couldn't handle multiple apps simultaneously, it didn't have Facetime, and the camera was just OK; now it does all of that—and much more, especially with Siri. Though it still isn't compatible with Flash.

    10 Steps to a Better Sales Rep


    The original article is from http://www.inc.com
    Written By Geoffrey James |  @Sales_Source   | Nov 4, 2011

    If you want to read more, please refer to the link above.


    Here’s how this kind of coaching plays itself out:
    Manager:  How do you think it went?
    Sales Pro:  Pretty well.  (Internal dialog: Uh oh.  What did I do wrong this time?)
    Manager:  Here’s what I think: You should have handled the following things differently … blah, blah, blah …
    Sales Pro: (nodding at each suggestion):  OK.  OK.  OK. (Internal dialog:  My manager thinks I’m stupid.  I’m going to get fired.  I’d better work on my resume as soon as I get home…)
    Manager:  Got it?
    Sales Pro:  Sure.  (Internal dialog:  How in God’s name am I going to remember all those suggestions?)

    It doesn’t work. The raw "tell it like it is" feedback doesn't develop the strategies and skills that will help the sales pro get to the next level or allow the sales pro to independently develop better judgment and self-coaching skills.

    STEP #1: Ask and Listen. If the pro replies, "You’re the manager, what do you think?" respond with, "I want you think this through, then I’ll give my ideas."
    STEP #2: Give Balanced Feedback. 
    STEP #3: Check for Agreement (#1).  Resolve any differences between your perception of the call (step 2) and the sales pro’s perception of the call (step 1).
    STEP #4: Resolve Any Obstacles.  Ask the pro to identify the obstacle that he/she feels is keeping him/her from performing in that area.
    STEP #5: Provide Your Perspective.  Provide your viewpoint on the obstacle and your ideas to address that obstacle.
    STEP #6: Check for Agreement (#2).  Decide together what needs to be done in order to improve the reps performance in similar situations.
    STEP #7: Practice.  Immediately work with the sales pro by role-playing or by providing a demonstration so that the pro feels comfortable carrying out the agreed-upon strategy or approach.
    STEP #8: Commit. Establish an action step with a time frame for follow-up.
    STEP #9: Encourage.  Provide positive input and express confidence in the sales pro’s ability to succeed.
    STEP #10: Follow-up.  Revisit the issue with the sales pro in the agreed-upon time frame.

    Tale of a Doomed Sales Call


    The original article is from http://www.inc.com
    Written By Vanessa Merit Nornberg |  Nov 4, 2011

    If you want to read more, please refer to the link above.


    "Metal Mafia, this is Vanessa. Can I help you?"

    A woman on the other end of the line, with whom I have never before spoken responds,  "Hi! How are you?" I say nothing, already chaffed at having my time wasted with questions not germane to the purpose for her call. "My name is Gina," she continues, "and I am going to be in your area on November 3rd to evaluate your liability insurance needs. I will be able to save you a lot of money by using loopholes we have developed. What time is a good time for me to come by?" Incredulous that someone would think to start a sales call by making what sounds like a questionably legal proposal, I ask: "What kind of loopholes are you talking about?"

    The woman perseveres, "Most insurance brokers get your liability needs rated based on your most dangerous product, when in actuality, your policy could be based on your least hazardous product!"
    Now she has my full attention, for all the wrong reasons. I own a company that wholesales body-piercing jewelry, and products like ours are notoriously difficult to insure. I ask her if she knows what my most hazardous product is.

    She answers flippantly, "No, of course not. I’ll find out about your product on November 3rd when I stop by your retail shop." I quiz her. "If you don’t know what my most hazardous product is, how do you know you can save me money?" She states that she "just knows that she will be able to." I cut her off as she again tries to set her appointment with me on November 3rd. "Do you even know what any of my products are?"

    She answers, confidently, "No. How could I know about your products before visiting your store?"
    I reply testily. "How could you have known? For starters, you could have looked up my company’s website to learn about the products I sell. You also could have engaged me by asking about my current coverage costs and whether or not I find it expensive. You could have shocked me with a statistic about how much money businesses lose by having products classified incorrectly by insurers—but you did none of those things.

    "If you had, you would have known that I am a wholesaler, not a retailer, and thus, I do not have a store. You would also have known that as a body jewelry company, the majority of my products are seen as potentially hazardous.

    "And even given those facts, if you had framed your product in terms of my business needs, I might have agreed to meet with you. Instead, I am going to give you some sales advice.

    "Before you dial, do your homework. You need to know not only why you are calling, but whom you are calling. If you want me to understand the value of your service, I expect you to understand how it might help my business. Whether you are in my area every day or just on November 3rd, you will not get an appointment with this kind of ill-prepared, uninformed call."


    I know this does not make me sound very nice, but too many people waste too much of business owners' time with lousy sales calls. And if Gina got it, she'll be thankful for some hard-won tips.

    How Small Retailers Stand Out for Holiday Shopping


    The original article is from http://www.inc.com
    Written By Nicole Carter |  @ncarterinc   | Nov 4, 2011

    If you want to read more, please refer to the link above.

    Holiday retail projections are upbeat, but what's a small business to do with competition from deep-discounting big-box stores and consumers who are focused on seizing deals?  Indeed small-businesses owners interviewed by Inc.com are setting out to distinguish themselves on factors other than price like customer service and experiences, high-quality products, and creative outreach.

    "How am I going to compete with the Macy's or Bloomingdales on prices? It's not possible. So we compete on quality and value," says Oren Bloostein, owner of New York City-based specialty coffee chain Oren's Daily Roast. I'm actually seeing that customers want more for their money when it comes to gifts, so I'm hopeful." Bloostein, who sells specialty coffee-based gift items during the holidays, says that the unpredictable-but-mostly-sluggish economy this year has put his business in a precarious position going into the holiday season. "I've had to raise prices this year because of a volatile coffee market. The terrible, rainy weather made for a really bad October, and a college closing near one of my shops meant an entire customer base was lost," he says. "I have to be really careful about inventory this year. I don't want to be left with a bunch of overstock come January."


    Small businesses are also capitalizing on, well, what they've always been good at: outstanding personalized customer service. "I think it's an advantage that [small businesses] have over the other guys: direct relationships with customers. Believe it or not, people appreciate that these days," Murillo says.

    Stop Avoiding Office Politics


    The original article is from http://blogs.hbr.org
    Written Linda Hill & Kent Lineback

    Linda A. Hill is the Wallace Brett Donham Professor Business Administration at Harvard Business School. Kent Lineback spent many years as a manager and an executive in business and government. They are the coauthors of Being the Boss: The 3 Imperatives for Becoming a Great Leader (HBR Press, 2011).

     If you want to read more, please refer to the link above.

    "I won't do it," he said. "I don't care who they are; I won't buddy up to people I don't like and respect just because I want something from them." This came from a senior manager at a Fortune 500 company. It was a theme we hear over and over from managers at all levels. They're reluctant to take part in what they call "political games." They consider organizational conflict and competition mostly ego-driven, adolescent games. They want disputes settled through data, analysis, and logic, by what's "right" — not by who knows whom, who owes whom, or who plays golf with whom. To build relationships simply because they want something from other people is, to them, blatant manipulation.

    Ask yourself this: Do I have the influence in my organization that I'd like to have, that I think I should have? Do others listen to my point of view? Do disagreements between my group and others get resolved in our favor? Do we get the resources, information, or the time and attention we need and deserve? Are we constantly distracted by outside pressures?

    Much as you might like to avoid them, the best way to deal with political environments is to engage them, to turn toward them. To turn away is to abdicate your responsibilities as a leader and manager. It is to let down yourself, your team, and even the organization as a whole.

    Some good points:

  • Conduct yourself according to a set of standards important to you — honesty, forthrightness, openness, dependability, integrity — no matter what others do.
  • Build ongoing, productive relationships with everyone you need to do your work, as well as those who need you, not just those you like.
  • Always remember, these are professional relationships, not personal friendships. You don't have to like them or they you; you just have to work productively with each other.
  • Thursday, November 24, 2011

    Why You're a Bad Coach


    The original article is from http://www.inc.com
    Written By Geoffrey James |  @Sales_Source   | Nov 3, 2011
     

    If you want to read more, please refer to the link above.

    In business, a manager is expected to prepare employees to succeed by providing the resources, tools, and development they need to achieve their objectives.  Unfortunately, many managers have little or no idea how to coach effectively. 

    Mistake #1: Confusing Coaching with Performance Evaluations.Evaluations happen every year or every quarter, while coaching, to be effective, must be an ongoing daily or weekly process. Similarly, evaluations focus on what happened in the past, while coaching focuses on what could happen in the future. Finally, evaluations mean paperwork and bureaucracy, while coaching is, by its very nature, informal and personal.

    Mistake #2: Treating Coaching as Low Priority. Unfortunately, without coaching, sales numbers are likely to suffer and, sooner or later, will gather negative attention from top management, investors, and (worst of all) the customers themselves.
     
    Mistake #3: Finding an Excuse Not to Coach

    Mistake #4: Providing Feedback and Suggestions. Many managers coach by telling the person what he or she did wrong, and what to do to fix it.  While this process is time-efficient, most people respond to this kind of coaching by becoming passive-aggressive (quietly accepting but seething inside) or completely defensive (arguing the point). The manager typically fails to get buy-in from the employee and misses a chance to see where the employee is on the learning curve. Worst case, feedback/suggestion coaching damages the relationship.

    Mistake #5: Coaching By Example. This is the worst mistake of all. The manager and the rep go on a sales call together and, the moment it seems as if something is going awry or not according to the manager’s expectations, the manager jumps into the situation and "shows how it’s done."  This type of coaching destroys the sales person's credibility with the customer and, worse, can easily backfire, because the manager may not know the entire situation with that customer.

    How The Founder Of GoDaddy Brought It Back From The Brink


    The original article is from http://www.fastcompany.com
    Written BY FC Expert Blogger Kaihan KrippendorffWed Nov 2, 2011

    If you want to read more, please refer to the link above.

    Last week I attended the Gazelles Growth Summit organized by my friend Verne Harnish. In a roster of amazing speeches, one that still rings in my ears was that of Bob Parsons, the founder of GoDaddy, who revealed for us the strategic value of a near-death experience. Parson shared at least two such brushes with death of his own. The first was a literal one: he was a soldier, he and his team found themselves in an impossible situation, and he was sure he was going to die that day. Once he accepted death, he fought and survived.


    The second moment he mentioned happened in Hawaii. He had sold a previous company for $60 million, and had spent his wealth building GoDaddy. His wealth fell to $25 million, then $15 million. With just $6  million left, he decided to take a retreat and consider whether he should give in. He took a trip by himself to Hawaii and decided to quit while he still had money. He worked out how he would divide what was left: pay off creditors, give employees bonuses, and squirrel away a little for himself. After checking out, about to head home, waiting outside his hotel for his car, he noticed one of the valets. He was about Parsons’ age. He was smiling and joking. He seemed to love his work. This valet changed Parsons’ perspective and thereby his life. Parson thought, "If GoDaddy fails, I'll just park cars." It didn't seem that bad a life after all. He threw out his plans and calculations and decided to go for it. Now GoDaddy commands something like 60% of its market in the U.S. and is worth 100 times or more than the $6 million Parson fretted over.

    The lesson here is to look death in the face and make your choice. Let yourself ponder the worst-case scenario. Without growing defensive or shifting to survival mode, think through what would happen if you failed horribly.