Archive Page 2 of 8



Jul242008

Which side of the curve will you be on?

Ah, one of the things that entrepreneurs like the most - academic research.

…Well, probably not - but I an interesting study came out last year about a subject that I like to talk about a lot - outsourcing.

Last year, Princeton economist Alan S. Blinder published a research paper which concluded that up to 38 million jobs, or 29 percent, of U.S. jobs are potentially offshorable within the next couple of decades. Yes, you read that right: 38 million.

Does this mean that no job is sacred any more?

Perhaps.

Does this mean that you can expect your neighbor to be competing as much against Steve from St. Petersburg, Florida as he will against Sergei from St. Petersburg, Russia?

Maybe.

Is this the real death knell for the American middle class?

Depends.

Nothing is a birthright; not a $100,000 a year job, not two houses, not three cars, not retirement - nothing. You aren’t entitled to anything here on planet earth. You have to earn it (sometimes this gets lost on a lot of people). We have a choice as to which side of the curve we are going to be on: you can be outsourced or you can be the outsourcer.

As much lip service as there is paid to “innovation,” “continuous improvement” and “global competitiveness,” how much are you putting into practice?

For as many things as there are to be outsourced, these are the many things that you can use to your advantage as an entrepreneur or working professional. If you keep taking a step up, if you make a conscious choice each day to leverage your strengths - you will be able to not only survive but thrive in the increasingly competitive global business environment.

So, which side of the curve will you be on?

bell curve

Jul222008

Tuesday Top 5: 5 Minutes a Day to Results

I was talking to a real estate investor the other day and something he was saying during the conversation kept jumping out at me. At first, I couldn’t figure out what it was. I leaned in, listening closer and closer. Still nothing.

Driving home later that day it hit me - this investor was telling me everything they were doing, but I couldn’t tie any of it back to an end result that made any sense (sense in this case equating to profitability). This individual was going to implement a certain system for ‘X’ or a process for ‘Y’ and so on. I could definitely tell that they had spent some time as an indentured servant in cubicle-ville.

I reflected on this for a while and realized that it wasn’t really all that uncommon that former employees turned entrepreneurs struggle with being 100% results focused. They never had to be at their jobs - they just had to be good at their part of the process, perhaps not even knowing what the end result or ‘big picture’ was.

To break yourself of this mindset, take 5 Minutes each day and do the following. This has helped me tremendously.

zen

Minute 1: Clear the mechanism

Push all the junk out. You mind becomes cluttered beyond imagination. I think if you took an X-ray of most people’s minds it would look like the belly of a Great White Shark.

Minute 2: Reflect

Take stock of what your strengths are, what makes you unique and give you an edge.

Minute 3: Visualize

Picture where you want to be, what you want to be doing. If you want to move past a certain physical obstacle, picture yourself beyond it already in your mind’s eye.

Minute 4: Focus

Focus on YOU and become cognizant of the fact that you have all the tools within you to realize your vision. All of your collective experiences, thought processes and knowledge are ready to be tapped at any time.

Minute 5: Get energized

When you have a clear focus and sound mental picture, your energy level will automatically increase.

You need not be a Zen master to get something out of this practice. Sometimes, just being still and in the present moment will benefit you greatly. You may even take more than 5 minutes with it.

This practice has helped me re-tool each day and strip everything down to a ‘bare bones’ level of importance. Knowing what is truly important and key to your objectives will do more to drive results for you than anything else.

Jul192008

Sex and the Art of Overcomplicating - Part 1

whisper in dark

For some reason humans have some gene that wants to make simple issues complex.

Overcomplicating. Making something bigger than it is. Creating a mountain out of a molehill.

Call it what you want, but there aren’t very many things that mess up situations in life more than making a problem or situation grow to disproportionately. Think of the last time you had an argument or disagreement with someone - did you find it escalate? Each side digging their heels in more?

I think we (all of us) have a tendency to read too much into things - we make assumptions and judgments and conclusions without having anything real to base them on. It seems that our brains don’t like to sit on issues for very long. It suits us better to make a snap decision, check the thought off of our mental list and move on.

In relationships, how many times have you heard: “sex will just complicate things”? Why is this? The pressing emotional and physical needs get ‘checked off’ by the brain, regardless of the consequences.

It happens all the time in business (if it didn’t, then Dilbert writer Scott Adams would be out of a job). Meetings and discussions ad-nauseum for the sake of more meetings and discussions. The more time, effort, analysis are wielded to decide to make decisions to make an end decision.

Overcomplicating can be insidious. It creeps up on you when you least expect it.

We were recently looking financing for our real estate investment business. The structure, terms and payment schedule were what we expected - however, when it came down to which properties to finance the water got a little murky. We started to analyze things more and more. We questioned our original plan; was it still valid? What about “X” or “Y” or “Z”? It seemed like our minds were playing tricks on us. We had lost sight of the overriding goal and intent of our actions. We had overcomplicated a situation that, in its essence, was really quite simple.

Too much information can cause analysis paralysis - which we experienced. Fear and uncertainty can also cause us to make things much bigger than they really are - if we overcomplicate it, we can analyze it more and more and avoid making a decision.

Remember the KISS principle? Keep It Simple Stupid. The more we adhere to this the better off we will be - in all situations.

Jul152008

Tuesday Top 5: 5 People I’d Like to Meet

If you could have dinner with any 5 people in the world today, who would you pick? Variations of this hypothetical question have been discussed for ages (historical figures, athletes, etc.). What I find interesting is that my list has changed a lot from the last time I really thought about it.

**Now, when I say “really thought about it” I don’t mean that I am dedicating serious time on a regular basis to thinking about who I’d like to meet, well…maybe too much time but not really that much - does that make sense? sure…**

I thought I would have a little fun with today’s Top 5 and list the 5 people in the world today that I would like to have dinner with along with a brief explanation of why. The list is not in any particular order of relevance or importance.

1. Barack Obama

obama

I want to look into his eyes and see if this guy is for real or not. I honestly don’t know which way I am going to cast my vote yet in November, but Obama seems to be a candidate that has such an abundance of charisma and charm that it would be a lot of fun to be around him for a few minutes. Although I wasn’t around when John F. Kennedy was running for president, I think that there are some definite similarities between the two and I would like to hear Obama’s candid take on what he thinks of the parallel.

2. Alan Greenspan

greenspan

I want to get his truly candid thoughts about what it will take to put American’s economy on the right track for the long term. I’d like to get a few glasses of wine in him and get him to open up about his real feelings about the current credit crunch situation and what he feels like his role was in precipitating it. Also, I’d like to know how he managed to successfully navigate the dicey political waters of Washington politics so deftly for so many years and how he was married to a professional reporter and somehow no real big or meaningful information ever leaked (secret underground lair, anyone?)

3. Robert Kiyosaki (aka: Rich Dad)

rich dad

I first read Rich Dad, Poor Dad about six years ago, and I can honestly say the book helped change the way I thought about money and wealth accumulation. However, I have had some lingering thoughts since I put the book down, such as: was there really a ‘rich dad’? Was Kiyosaki truly ‘financially free’ before releasing the Rich Dad book series? Why did he wait so long to have ‘Rich Dad Coaching’? Maybe there is a hidden skeptic inside of me, but I just can’t help wonder these things. I think this book really re-launched what I call the “self-help wealth” information marketing movement, so I think it would be fun to have a candid conversation with a catalyst.

4. Tim Ferriss

ferriss

The Four Hour Workweek has to be the ‘paradigm’ shifting book for a new generation of entrepreneurs and workers. I like this book and his companion ‘Lifestyle Design’ blog so much that I think it would be a blast to have dinner with him. For anyone that has read the book or blog, you know that very few writers and bloggers could gain such immense popularity and worldwide attention with such a seemingly wide (but actually well-niched) focus on all things relevant to a mobile and flexible lifestyle.

5. Hu Jintao

hu

The leader of the world’s most populous nation (hint: China) has such a big job that I wonder how one deals with that level of responsibly. With China becoming a rapidly rising world superpower (not just economic superpower) I can’t help but wonder what goes through his mind as he looks at his to-do list every day:

  • feed 1.4 million people left homeless by earthquake
  • merge communist party politics with 21st century global capitalism
  • lunch
  • escalate rhetoric of taking over Taiwan by force
  • practice speech for Olympic games opening ceremony

I’m not sure if it really looks like that or not, but it would be fun to ask him.

Well, there you have the Top 5 people I’d like to meet - at least as of right now.

Let the proverbial #!%! hit the fan (this is my way of saying I welcome your comments and feedback).

Jul112008

Too Big to Fail? What the Heck is Really Going On?

godzilla

Since just about every other blogger under the sun has weighed in on the pending financial meltdown that an insolvent Fannie Mae or Freddie Mac would create in the global credit markets - I feel compelled to throw my hat in the ring as well (what better thing to do when getting buzzed on caffeine at Caribou coffee on a Friday night?).

Many of you are probably familiar with the “too big to fail” tag that has been attached to some large financial institutions in times of trouble, most recently Bear Stearns. This tag has been thrown on the Government Sponsored Entities Fannie Mae and Freddie Mac in recent days as their stock values have plummeted and their financial woes have raised eyebrows across the world. “Too big to fail” means that the government should step in and prevent an institution from failing so as to preserve the greater good of the public.

I can tell you first hand, from an entrepreneur’s standpoint, that having the credit markets get worse right now would be bad news for me and a lot of my brethren. I know that the age-old argument of government interference in private enterprise is alive and well here, but I can’t help but take a look at what the implications would be if financing real estate transactions slowed down further or the capital markets failed to function in getting companies from small to large the money they need to work and grow.

Our economy has become so overly dependent upon credit and liquidity to even operatethat things will really come to a standstill if big shocks occur. The speed with which markets react to information is stunning and it wouldn’t take long for banks and credit card companies to put the screws on small business owners - squeezing profits and impeding growth.

Much of the commentary about this situation right now is focused on big companies and Wall Street banks. The entrepreneur is left out of the discussion but not out of the equation. I think that something should be done from a cooperation standpoint between the governments and other institutions that are close to Fannie and Freddie. We can’t afford to go ‘cold turkey’ in changing our credit dependency overnight - we need to enter rehab first and work it out of our system.

I am hoping and praying for sanity during this whole mess. Though I am confident that things will work themselves out over the long term, the short term will mean pain for somebody, portfolio companies, pension funds, investors, etc.

We can only look forward and learn from what is going on right now and eliminate the ‘irrational exhuberence’ that has once again penalized investors and, most likely taxpayers, again.

“I can calculate the movements of heavenly bodies but not the madness of men.”

Sir Isaac Newton

Jul32008

Did you actually grow up to be a firefighter?

Backdraft was a cool movie. Ladder 49 was pretty cool as well. Heck, being a firefighter might actually be neat…

Maybe you already are a firefighter and you just don’t know it. Curious? Read on…

fire

Do you spend more time during the course of your day putting out fires than anything else? Do you find yourself in reaction mode all the time?

If so, then the order of the day is: becoming proactive. (if you said no, then I think you nose might have grown an inch or two)

Surprisingly few people in the world are truly proactive. Few people plan ahead and put themselves in a position to accomplish what they need to do.

Most people are reactive, living in a constant state of having decisions made for them and being ordered to and fro. This translates over to the entrepreneurial realm as well. Many entrepreneurs and small business owners are constantly in ‘fire-fighter’ mode. Everything is an emergency. All the plates are spinning at 9,000 RPM.

How can you slow the plates (or even set a few of them down)?

It’s not an easy transition. Something in the human psyche love martyrdom. We love to be exasperated fighting the good fight. We love to one-up others’ stories of plight and hard dealings with our own (think about the last conversation you had with somebody…did you say something and then, immediately after you were done hear them say “well, if you think that’s bad, listen to what happened to me…). It’s no surprise, then, that people like to be constantly running around at mach 3 with their hair on fire. It seems that most business owners are quite content to run around without any real method to their madness.

The reactive entrepreneur is always putting out fires. They always have some problem they are dealing with, some distraction from the main focus of their business.

This commercial is a perfect example of what the life of a reactive entrepreneur is like:

The proactive entrepreneur, on the other hand, is almost always in control. They don’t operate from a permanent residence in crisis-ville.

How can you move from reactive to proactive? It will vary. For some, it will require a complete re-wiring of their brains and a complete change in their lifestyle. For others, it will be some simple changes in thought process and planning.

Some business models are set up to induce chaos for the owner. The owner is the centerpiece of everything and every decision hinges on them. This is a mistake. In other instances, ‘control-freakism’ on behalf of the owner is responsible for the owner not being able to escape any minute decision - critical mission failure again.

If you really want to stop putting out fires everyday, you have to:

a. Plan - clear up objectives and priorities

b. Simplify - eliminate, reduce and retread

c. Delegate - get rid of all the crap work you find yourself doing on a daily basis

It takes a while to reverse the chaotic inertia. When people are paralyzed relying on your decisions, when you don’t have simple and clear objectives, when you don’t plan your next moves you won’t be able to put out the fires - you’ll just keep running around with a fire extinguisher until you collapse from exhaustion. Then, you’ll get up, repeat the process again - unless you makes some simple changes.

If you work for the fire department, well, please keep doing a good job.

Jul12008

Tuesday Top 5: 5 More Reasons to Start Outsourcing - NOW

If you are still on the fence about outsourcing and making yourself more virtual, the time to get off the fence is now. Outsourcing has become more and more a part of my business and personal life in the last six months - I wonder how I ever got things done before.

I’m pulling out my crystal ball and predicting that there is going to be a growing disparity in the productivity of entrepreneurs and professionals that utilize outsourcing and those that do not. The most obvious spot that this disparity is going to show up is on the bottom line. Businesses that outsource, separate and delegate non-core functions are going to become more significantly more profitable than those that do not in the very near future.

Just for fun, I am kicking out 5 more reasons why you need to start outsourcing right now…

1. Make ‘work from anywhere’ a reality

The Four Hour Work Week need not be just the title of a book. Outsourcing should be one of the main components in your strategy to achieve flexibility and geographical freedom in your business or profession.

If you are tied to employees or an office, it’s pretty hard to manage from a distance for extended period of time. Using outsourcing service providers, on the other hand, will allow you to build your business with an inherent flexibility - you can ‘plug & play’ on certain type of projects, tasks and ongoing operations (just like when the A-Team was getting ready to get things done).

ateam

Increased peace of mind and confidence will befall you when you know you can pick up your computer and work for a few days (or weeks) from the poolside in Las Vegas.

2. Get 10 times as much done

Surprise! Surprise! Unloading tasks from your plate and freeing up your time to put your focus where it needs to be = making money. The more you focus on what you are good at, what you like to do and what makes you money the more higher your personal satisfaction will be and the better your business will perform.

Perhaps this sounds like garbled business cliche to you. Rest assured, it has rung true time and time again in my business. As my businesses have grown, there have been times where I wondered ‘where did this day go?’ It’s often hard to measure your productivity as a business owner - you are forced to wear so many hats. I feel that any advantage I can get from clearing tasks and processes out of my way (or out of the way of my company’s daily internal functions) is going to be beneficial - financially and mentally.

3. Get a global perspective

3d

Just about every entrepreneur I know is either:

a. not focused on taking advantage of the global economy or,

b. blissfully unaware of the effects of globalization on their business.

No matter what business you are in you are affected by the global economy. I think this is a good thing. Entrepreneurs that ignore or fail to take stock of this fact are in for a rude awakening; either in terms of lost opportunities or vanishing customers.

The more you think of your business as a global business, the better off you are going to be. The more you outsource, the more you will come into contact and work with service providers from across the world. When you start working with companies and individuals from countries like: India, China, Brazil, Mexico, Philippines, Romania and others you will get a glimpse of what is going on around the world of global business and this will make you a better business leader.

4. Cocktail party conversation

You’ll have something more interesting to talk about at your next chamber of commerce or networking event when you start outsourcing. Gone will be the days of witty banter about the new property tax credit legislation or the donuts they served at the last event. While you might not want to gush the details of your business operations to others, you will definitely be more in tune with the market and your customers because you will have had more time to focus on it (since you are spending less time on the junk, non-value added work).

5. Intellectual growth capital

Outsourcing will force you to learn more about: communication, technology, business processes, management and will make you a better leader of your business. Combine all of these things on an accelerating path and you will have a force to be reckoned with.

Too often, entrepreneurs get caught up in ‘the now’, the actions we have to do today and lose sight of the future and what we will need to do to equip ourselves for success. Although being too busy to read and study is not an excuse, at least by living and breathing new and faster moving changes in the business world you will be able to keep yourself abreast of what is going on and stay ahead of the curve.

***

I hope you now feel compelled to start outsourcing some tasks and business processes right away. Remember: “the journey of a thousand miles begins with a single breath.”

Go!

jump

Jun282008

Saturday Op-Ed: Defining Your Life

Yesterday I was driving throughout southern Macomb County, in Metro Detroit, looking at some property acquisitions with one of my business partners, Dylan Tanaka. We were stopped at a traffic light and I glanced around, taking in the sites of an area that looked like it had seen better days (better days are ahead, in my view, but not yet on the horizon).

As we sat at a traffic light, I noticed a woman walking across the street in front of us. She couldn’t have been past her mid-30’s. What struck me, however was that she was sheparding six children, all under the age of 10. It was a hot and humid day, and they all looked quite uncomfortable. All appearances and circumstances indicated that they weren’t living in the land of milk and honey. The woman, in particular, looked as though she would rather be somewhere else, anywhere else. She had a look of despair and forlornness that I hadn’t seen in a long time.

The light turned green. We moved on and so did the woman, but the look on her face left an impression on me. I started asking myself questions like: Did this woman ever define what she wanted in life? Did she ever get a chance?

I often talk to other entrepreneurs and prospective entrepreneurs who are eager to quit their jobs about ‘defining their lifestyle’, as in: define the life you want to live, use your business as a vehicle to achieve it. What gets lost in the mix of this message sometimes is a dose of perspective.

When you are in the trenches building your business everyday, it’s easy to become myopic. We become mired in squabbles over changes in the tax code and get upset when our internet is down for more than 30 seconds. We can become so focused on our goals that we lose sight of how far we have come and how fortunate we are. On this count, I plead guilty. My focus and routine almost detach me from the rest of the world at certain points and I have to force myself to take more time to see the big picture. It’s sobering- like getting a cooler full of ice cold water thrown on you.

As I thought about the woman at the traffic light, I wondered to myself: “is this woman existing or living?” Who was I to say (or even wonder)? But, I could not push this question out of my mind. I thought about this as it applied to my own life, family, business and career. I encourage you to do the same thing. Stop for a second and ask yourself if you are existing or living?

There is a difference.

Chances are you will know the answer right away. Being conscious of the fact that there is a difference will help you gain some perspective in short order. And, if you are conscious of the difference, start defining your life, be thankful that you can and stop standing still.

Jun262008

THE Solution to High Gas Prices

Kill everybody!

gas shortage

Just kidding…(sort of)

Here it is…

1. Spend Less

or

2. Make More

A tale of two paradigms? Yyyyyeeeeessssss….

It’s the age-old “top down” versus “bottom up” approach in business management. Meaning = you can either improve profitability by increasing sales and holding costs constant or you can cut costs while revenues remain steady - or better yet, option #3 - do both.

Believe me, I hate paying $400.00 (er, $4.15) for a gallon of gas just as much as the next red-blooded, apple-pie eating, hot-dog gobbling, puppy-dog loving, drive 50 miles just for the heck of it American consumer. But, there has to be a better way to get around this whole gas situation without blaring our lungs complaining like Walther Mathau in Grumpy Old Men.

It’s all a matter of offense versus defense. Sometimes it’s good to play defense, but only as part of an offensive strategy. The whole goal of the game is to make money, right? Why have a defensive mindset, then? Why not play the game to win instead of playing ‘not to lose’?

Worth considering further…

Test your natural instincts by asking yourself what the first thing you do when things in your business show signs of slowing down. Do you look to slash and burn costs right away? Or, do you look to re-double your sales and marketing efforts?

It’s really hard to save your way to success in business. If you take the ‘wait and see’ approach, you will likely be seeing your competitors pass you by. This is why I have found that when times are more challenging, it is best to re-focus on your top line. Always stay mindful of your costs, but if you cut back when things aren’t so rosy, you will be on the short-end of the inertia stick when the weather breaks.

Instead of complaining about high gas prices and cutting back on driving places you want to go (assuming that you are cutting back on driving to save money and not because of your un-abiding concern for the environment) try taking a different perspective - make more money. Once you start looking at things this way, you will feel your mind open up to new possibilities; you will be looking at the world through the eye-glasses of abundance instead of perpetual scarcity.

Treasure chest

So, let’s look at our choices to the gas price crunch once again:

1. Spend less

2. Make more

I hope you go down the rabbit hole of choice #2. But, if you see a lot of talking animals you may have sniffed too many fumes at your last fill-up (be careful)…

Jun232008

Tuesday Top 5: 5 Reasons to Ditch Your Blackberry

Warning: this post is written by a recovering crackberry addict.

I knew things were bad when I was in Las Vegas last summer and my friend was getting stitches in the emergency room (don’t ask!) and I was furiously typing emails and instant messages, oblivious to nearly everything going on around me (including my good buddy’s agony).

In the maddeningly fast paced world of global business, “on demand” has gone from being a tagline from an old IBM commercial to a mantra throughout all rank and file in the business world. I think entry-level college grads are even being given Blackberry’s as some kind of cruel, “thrown to the wolves” corporate initiation so that they can be pawns to their new bosses sadistic Sunday afternoon work whims.

My friends at Research in Motion (RIMM) are going to be gunning for me now (I’ll split the price on my head with somebody).

crackberry

“Crackberry’s” and their ilk, epitomize the perverse notion that we can make everybody happy all the time. The novelty effect is huge (did anybody ever get more done with “daytimers” or Palm Pilots?). At any rate, here are five reasons that I have come up with to help show you the light in ditching your Blackberry and the entire business paradigm they represent.

1. Your productivity will improve

“On Demand” business just doesn’t work for entrepreneurs. If you work for Big Blue, than so be it - bind yourself to the corporate leash. But, if you are an entrepreneur or small business owner, take it from me, the more you condition your customers/clients, suppliers, employees, shareholders, etc. to expect instant results from you - the moment you fail do deliver that instant gratification will mark the beginning of your fall from grace.

There is a mistaken notion in today’s business climate that instant service = good service. This is not necessarily the case. Often, if you have more time to think about a problem or situation, you can put together a better, more thought out response that will end up making you more money.

2. You will see some of your sanity come back

If you’ve ever heard of the stories of wives divorcing their husbands or relationships going into counseling because of crackberry addiction, they are probably all true. Rarely have I seen someone who owned a crackberry who had a good sense of balance (or even a sense of self about them).

When you are constantly ‘at the office,’ the lines between work, family and fun begin to blur. You are always at the office, even if it’s 10:30 on a Tuesday night or 7:30 on a Saturday morning. Not knowing where work ends and where you begin will slowly turn you upside down and inside out.

3. Your thumbs will feel a lot better

Although you may burn a few extra calories as you furiously scroll and type, your thumbs will be glad you saved them the numbing feeling of keying endless emails (who really reads them anyway?)

4. You will definitely look better

The crackberry as a fashion statement is a non-starter. Always has been. Always will be. Men shouldn’t accessorize in the first place, but when you throw the leather crackberry holster in with the business casual ensemble you just look like a guy straight out of ‘geek-fest’ magazine.

**For those of you crackberry heads out there, stop thinking you look important by having your crackberry buzz 50 times with incoming messages during a meeting and then furiously scrolling and glaring at it after the meeting lets out–spare me!!!**

5. Your business will likely improve

This one is from personal experience. When you stop thinking ‘instant response’ and instead think “quality response” you will see your level of customer satisfaction increase significantly. I am now better able to handle client responses in a thorough manner while at the same time being much more productive (getting more done in far less time) than when I was hooked on crackberry.

**Bonus** 6 - Your cell phone bill will decrease

Since we should try to look at all angles, I guess this one should have made the cut for the Top 5, but I didn’t like it as much as the other ones, so I added it here as a bonus. This one is really a no-brainer, because crackberry service puts additional cost on your monthly service plan and also puts you out the higher fees for purchasing the device.

Ahh…now, there it is…I feel much better. It’s theraputic to get things out in the open. As I turn around I am looking to be doused with ‘hater-ade’ like John Madden after a Super Bowl Victory. Let the debating begin and the comments reign in - I am ready.

(Just don’t offer me a free dose of crackberry)