Tax Deductible- So What?
We have done ourselves a disservice as business owners. Too often we have justified an expenditure to non-owner friends as "tax deductible" to show how clever we are. In doing so, we have confused the public. They see the Federal Government throw billions at favored projects, and they think it is the same money that we are discussing. Tax credits are not tax deductions. Tax credits are for companies that make a profit, and are then forgiven from paying the taxes on that profit. As many small...more
Employees aren't Partners
Many of my clients are recovering from the recession. They are running lean, and have restored their profitability, even if at lower revenues than prior to 2008. Those that had to reduce or freeze employee compensation are seeking ways to share their recovering success. When cuts were made, whether layoffs, wage reductions, curtailed working hours or just freezing costs, profitability was the universally quoted reason. "We are losing money" or "We have to maintain a safe operating margin" were...more
Another Lost Generation?
I had the opportunity to present "Beating the Boomer Bust" twice this week, one of which was recorded for a Texas Public Radio show this weekend. For those who aren't familiar with the piece, it discusses the massive changes that are unfolding as Boomers retire from their businesses. As usual, members of the audience said afterwards "I knew all those things, but I never thought through the implications before." A quick recap before I get into today's topic. "Beating the Boomer Bust" is a look...more
A Return to the Handshake?
There are five words that strike fear into the heart of every business owner. They are "Let me call my lawyer." I'm not talking about threats. If I had a nickel for every person who threatens "I'm going to call my lawyer" I'd be very rich. I've found that to be a tactic used by those who really don't understand how to talk through a problem. Something goes wrong in a business deal. Someone has a fixed idea of what the problem is, and what the solution just has to be. When the other side demurs...more
Do Goals Make a Difference?
To start the New Year right, let me tell you a true story about a goal. It was a little goal; or at least it started out that way. It certainly wasn't a goal that was intended to be life changing, although it looks like that will be the result. For the next few weeks my morning workout at the gym will be tougher, as I'll have to get to machines around all those folks who will dissapear by mid-February. It's a new year, and millions of people will make tens of millions of "resolutions" that have...more
Thanks for Everything
A British friend was commenting to me on how "odd" he found the American celebration of Thanksgiving. "There is no equivalent holiday in Europe, or anywhere else in the world." he said. "You have an entire day devoted to conspicuous consumption, where everyone anticipates eating and drinking far more than usual, and boasts about how excessive their indulgence was. It's so quintessentially American." Of course, Thanksgiving Day is just a warm-up to what follows; the holiday shopping season. How...more
When is the Right Time to Sell?
In the last few weeks I've had several conversations with owners about selling their companies. In one case a professional firm with whom I've worked for the last 4 years completed a merger with a large national company. That was a "Boomer Bust" transaction, driven by an ageing partner group and a lack of willing successors in the next generation. In another, a relatively young client received an unsolicited offer for the company. He wasn't planning to sell for at least another ten years or so...more
Can Startup America revive US small business?
A couple of weeks ago in my opinion blog "Awake at 3 o'clock" I pointed out that politicians pronouncing small business owners as the saviors of the economy is a misplaced strategy. ("SMB isn't the cure for the economy") Most SMB owners are ageing Boomers, disinclined to take big risks as they seek greater retirement security. Now the government is rolling out a new program "Startup America" to foster the development of innovative entrepreneurs. The program will support early-stage companies by...more
It's Time for the Boomers to Step Up
Why I Need to Say This Three years ago I wrote an open letter titled "Last Chance to Save America" and sent it to my entire email list. It went viral, and I received almost a thousand emails in reply. I also promised not to send another letter to my entire contact list, ever. So today I am using my blog, with the hope that you will forward a link to others if you agree with me. Like before, discussing a complex and important issue can't be done in a few hundred words, so please bear with me....more
Who are the Real Business Performers?
A business owner told me a story the other day... "After I was in business a few years, a large corporation made me a terrific offer to come work for them. I left my company in the hands of my manager, and accepted the offer." "A friend who works for a large corporation said 'You will do a great job, but you will fail. You just don't understand the politics.'" "A few years later the company ran into some difficult times. We knew that cuts would be coming. I was unconcerned, because my team, despite...more
The Third Factor- A Third Eye?
For several years my writing and speaking has focused on two factors that are indispensable for entrepreneurs; creativity and tenacity. Creativity is the drive that not only makes entrepreneurs see opportunities, but also makes them consider every problem or challenge as solvable. It is the part of the business that entrepreneurs enjoy so much. That's why so many of them are poor managers. Tenacity is the refusal to accept failure. Any successful entrepreneur has been told at some time that it...more
Life Imitates Art
I finally got around to seeing "Atlas Shrugged- Part I" this week. I went with a friend who is as much a fan of the book as I am. You really have to begin any critique of the movie by discussing its relationship to the book. Although Ayn Rand's "Atlas Shrugged" is probably the most influential book in my life (I've read it 5 times), it isn't great literature. The characters aren't well developed. The heroes are larger than life, and the villians are without redeeming values. The plot is linear,...more
What are We Afraid Of?
Last weekend I took my sons to see "Battle for LA." It's a WWII infantry movie. All the great lines. "Go on without me." "Mickey can hot wire that; he's from Jersey." "Your father was a very brave man." Nowadays we are politically correct because instead of Gooks or Krauts or Slant Eyes or Commies we use aliens, who do not (yet) have civil rights representation.Battle for LA is only the latest invasion movie. Besides the alien hordes, we are being overrun by flesh-eating zombies (including Walking...more
Humbug!
It happened again last week. I heard a business owner say "I've decided to terminate Bob, but I'm going to wait until the first week in January to do it. I don't want to ruin someone's holidays."I go through this every year. Employers who, in order to make themselves feel better, put their employees in an even worse situation. If you are planning on firing someone, do it now! Here's why:Some 34% of all Christmas spending is done in the last week before the holiday, and that is mostly on credit cards...more
From the Small Business Advocate newsletter
This is from Jim Blasingames "Small Business Advocate" newsletter, and is based on a show we did last week. If you don't get Jim's newsletter, or want to hear the show, I strongly recommenfd that you go to http://www.smallbusinessadvocate.com/ Here is the article:John Dini is the president of Management Performance Network, Inc., and one of the best management minds I know. Recently, on my radio program, John revealed the best questions to ask as you conduct this exercise. Here are some...more
A New View of Who We Are
The economy has experienced 5 consecutive quarters of growth. We are officially more than a year past the end of the recession.I'm guessing that you, like me, responded to that fact with something like "HA!." We all still feel it. Every small business owner knows, in his or her bones, that the problems aren't over. It isn't 2006. In fact, it isn't 2003, or 1997, or anything like what a healthy economy felt like.I've had a dozen owners tell me the same thing over the last few weeks. They are doing...more
It IS all about you.
Why did you want to own a business? If you believe the textbook definition of an entrepreneur, it was to leverage capital and other resources to create wealth. That probably applies to about 5% of us.Or, you might have started it to provide gainful employment in your community. That applies to even fewer business owners.The reason, at least for most of us, is that you wanted to be more successful, provide a better living for your family, and have greater control over your future. In other words...more
Hunters and Farmers
Several times monthly, I interview entrepreneurs who are considering membership in The Alternative Board® as a means to improve their business. Part of the process is asking each one what his or her core skills are - the things that made them successful.Many, and perhaps a majority, start the answer by lowering their voice a bit. "Well first of all," they say, "you have to understand that I think I'm a little bit ADD."No kidding? You started a company because the job you had wasn't moving...more
The Black Donut Hole
Recently, there has been renewed attention to the work of Corrado Gini. An Italian Facist, he published in 1012 the Gini coefficient, a measurement of income equality among a nation's citizens. As happens in the media, one publication picked up on this measurement of a shrinking middle class in America, and others are happily piling on the bandwagon.One problem. They've got it wrong, or at least they only have it partly right. The standard media story angle is that this recession has decimated the...more
Why a Coach?
I had a special session with my business coach yesterday. That's unusual. Typically we meet just once a month to cover my goals and objectives, and see if I am on track.This time we met for the specific purpose of helping me prepare for an upcoming presentation in Las Vegas. I've conducted the workshop ("The Seven Sins of an Entrepreneur") before, but I wanted to make it more interactive, with a few exercises "thrown in." I say that with perfect understanding that throwing such things into a presentation...more
