The Entrepreneur's Mentor

Recharging the Batteries

I am tired. I haven't taken a full day off in at least three weeks.  Why not? Because I am really busy and I have a lot of work due. It is not by choice but by necessity. I at least try to pace myself. I don't burn the midnight oil. I take breaks. But it is still mentally  trying.

I recognize it is not healthy. I know my brain is not functioning on all cylinders all of the time. And I know it will be next weekend before I can truly relax. That's life. That's work sometimes.

But doing work requires having the energy to do it well. Entrepreneurs cannot run on empty indefinitely. Some think they must and do so for an extended period of time. As a consultant I have reviewed work product cranked out at 2:00 or 3:00 in the morning. It usually stinks. It usually cannot be utilized. So why bother? We fool ourselves into thinking we can do it and do it well. And we just want to get it done and we stop caring about quality.

If you are in that mode, don't send your work out when it is done. Save it until the morning and re-read it after some sleep. You can then judge it for what it is.

Remember, whatever you send out, be it to employees, or customers, or vendors, is part of your branding. Is your brand full of mistakes- bad math, spelling and grammar? Is that how you wish to be described by others?

If you are going to do it, do it right. To do it right, you need your ability to concentrate and focus on the task at hand.  How about "better late than lousy" as a motto?  Which damages your reputation the most- handing in a sloppy project or handing in a well done project late? Your call, based on your knowledge of your client/customer.

Warren Buffet "nails it"

As this latest financial crisis unfolded over the last couple of weeks, Warren Buffett cogently summed up what was transpiring when he said "it is only when the tide goes out that you can tell who is swimming naked." By this he meant that in tough times those who do not have best practices or those who have cut corners will be laid bare.

In good times, almost anyone can be successful. A good economy and a customer base with loads of money can make up for a multitude of sins. Many fail to focus on doing things right or operating efficiency. If they did, they would be in better shape when the bad times come around.

It is not so different from the old Aesop fable of the grasshopper and the ant, one preparing for the winter, the other not.

Entrepreneurs need to focus on best practices. They may end up being a lifesaver.

Entrepreneurs need to think about bad times when times are good. It will keep them grounded and centered.

Entrepreneurs need to have a selling strategy and a survival strategy that preserves the business when times get rough.

If you are doing this only after times have gotten difficult, it is probably too late.

Entrepreneur's Airline Roadtrip Blues

I am writing this at 5:45 AM from the Las Vegas airport. It is neither a happy place nor a happy time of day. This is particularly so because I was due home last night. Not unusual- USAir delay, delay, delay and cancel. Come in for a 5:00 AM flight only to find out it has been canceled. Such is life when you spend time on the road.

So, what to do? How to react? It is all outside of my control, although I have tried to be proactive and positive. When my first flight was delayed last night, I called and canceled my meetings for today rather than doing so at the last minute. So, no stress there. Just the stress of wanting to get home and hating having no say in my travel plans.

This is like complaining about the weather. You just have to suck it up and find the positive. The airport here has free internet access so there is a lot I can do. I am exhausted from no sleep but can otherwise just relax.

Being entrepreneurial involves managing a lot of things. One big thing we may not think of enough is managing one's energy. Energy determines how much we can get done and how well we can do it.

So, if you travel a lot for business, expect delays. Don't think "Why me?" The question should really be "Why not me?"

Have reading material. Always have your music and your phone and you have options. Anger gets in the way of those options and kills energy, which you need to be entrepreneurial.

Enjoy your day.

Outside Directors: The Good, The Bad and The Ugly

Many entrepreneurs make the decision at some point to bring in some outside directors to add experience, wisdom, contacts, opportunities or just a different way of thinking. This can be a very good idea as long as there is a clear concept of how they will interface with the entrepreneur.

Is the Board an advisory board or a governing board? It may be wise to keep outsiders on an advisory board where they can give advice but the business is not bound by them. If they are placed on the governing board, they can force changes in operating policy, or in some cases, in management. This can be risky.

Should outsiders be paid? Most small business people cannot afford to pay them, so they serve voluntarily. They may get a few nice meals a year out of their service, but that is it.

Others offer shares in the company to their outside directors. This is especially so in cases where the plan is to go public or cash out within a few years.

Either of the above considerations can be offered without putting the outsiders on the governing board. But if you decide to go that way, beware. Board members have a fiduciary duty to the company, not to you. And if they have "skin in the game", they are going to be less forgiving of entrepreneurial missteps.

I have been through situations with both legal clients and consulting clients where the outside board members banded together with one or two management people on the board to overthrow a founder CEO. In each instance it was deserved due to managerial incompetence, but the entrepreneur had nobody to blame but himself. He put himself in that position. The people he brought in to help him have ended up having to remove him in order to save the company.

These situations are difficult and delicate. No one walks away happy. The Board must act to save the company from the founder and then initiate a plan to bring things back to an even keel.

So, in summary, outside directors can be good for the entrepreneur and the company. But they can also be bad for the entrepreneur, and ultimately things may get real ugly.

Knowledge and power do not have to come as a package. When they do, the law of unintended consequences may come into play.

You pay your money and you take your chances with any option. No outside directors can mean your thinking is totally in the box and non-global. Outside directors can cure those shortcomings, but introduce others.

It is your company. You decide. But consider the options and the consequences of each one before moving ahead.

It's What They Want, Not What We Want Them To have

This is a short one.

Make sure you are prepared to give your customers or clients what they want rather than what you want them to have. Retail stores often push customers to higher margin items. Many businesses sell expensive warranties that the customer doesn't need but that are pure profit for the business.

Customers are not dumb (well, most of them are not). They know what they want or what they need. They know when you are not hearing them say it. They want to trust you. You build trust by fulfilling their needs in a cost effective or value added way.

This means not trying to be the solution for everyone's problem.

Know where your product or service fits. Recognize the symptoms of someone in need of it. Don't push it on the wrong people or at the wrong time.

Be professional and be disciplined. Be credible. Help people buy what is right for them and you may win a customer/client for life.