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Protect your business from interruptions

Last week my father, who is a self-employed environmental engineer, suffered a serious life-threatening medical emergency. He is in hospital recovering now, and will slowly return to health with the help of many skilled caregivers and loved ones. For this, I feel extremely blessed. What it has reminded me is that as business people, we sometimes avoid thinking of the scary possibility of suddenly being cut off from our livelihood.

There are two major points that this family event has highlighted for me. The first is the utmost importance of having some kind of insurance in place for yourself, as a business owner, in case you are unable to work. I prefer and recommend disability insurance with a clause that covers you if you’re unable to work in your own industry again (otherwise you may be forced to seek a job wherever you can get one). Critical illness insurance is very popular with insurance companies and insurance salespeople these days, but it does not cover everything, and the money can eventually run out. Knowing that if you did have to stop working and sell your business due to illness or injury, you will still have some kind of regular income, is very important for those of us who don’t have employers’ benefits to rely on.

The second major point is to think of succession not in terms of “when I’m ready to leave my business” but also “what happens if I have to be away for a while?” It’s one thing to take a vacation for a few weeks (this is hard enough) but what happens if suddenly you’re unable to work when you have projects in the pipeline, or you can’t open the shop in the middle of your busy sales season? Whether you’re a solo businessperson or you have staff, you need to have a plan for emergencies. Somebody needs to be prepared to step in and check your email, pay your bills, communicate with customers about your expected return to business, and keep the fires lit while you get back on your feet.

I don’t have this person right now. It’s not a position that you post a job for, but it’s something I’m going to give some thought to. It’s dreary to think about, but I know that if I got hit by a bus and had to spend 3 weeks in the hospital, I would certainly want to have my customers looked after (not wondering what cliff I just disappeared off) and my banking done properly. It’s part of an emergency plan that every business owner should put in place, as unpleasant a task as it seems.

(A note – I think I’ve also seen a Business Interruption Insurance, and a Key Person Insurance. If anyone reading this is in the insurance biz, feel free to post a comment explaining whether these cover what I’ve talked about above).

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What’s your networking objective?

Rule #1: It is not to make sales to the people you meet.

Now that I’ve stated the obvious, let’s move on to the more nuanced issue of setting networking objectives.

There are many approaches to networking – almost as many as there are people out there. Perhaps you are aiming to raise awareness of a cause or initiative; perhaps you seek to make friends in a new town; maybe you hope to build a reputation for yourself (a good kind). The problem is that a good portion of people out there have not articulated their objective so they are wasting good time and money.

Rule #2: Declare your networking objective, and don’t keep it a secret.

There’s no need to be like a sledgehammer about it, but if you casually drop into conversation that you want to raise people’s opinions of travelling mimes, for example, then your correspondents can figure out how to file their meeting with you in their mind (and can account for the white facepaint). Better yet, by declaring your intentions, you open the door for people to help you with advice and introductions.

Rule #3: Every introduction is gold (almost).

When people truly know your objective, the introductions you get will be more relevant. More importantly, every introduction is a sign that the go-between has taken the time to think of you and try to help you. Thank them accordingly and either repay the favour or pay it forward.

Victoria has some of the awesomest networkers – we are a small town but very supportive. Thank you to all you connectors out there who have helped me “land” back in my hometown! I’m honoured to be a part of this community.

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The book club continues…

Today I’m getting into Guy Kawasaki’s book “Art of the Start.” I’m just one chapter in (anyone seeing a pattern here?) Already I think it has great potential.

It’s always nice to read books that have the same kind of mindset as me – a real emphasis on “keep it simple”. Kawasaki’s five steps to starting anything are things anyone can wrap their mind around and DO.

More reviews to come… this was just a teaser.

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Best business/work books of my year

Made to Stick, by Chip and Dan Heath (links take you to Chapters/Indigo to buy the book)

Thanks to Matt Sims for the recommendation of this book. I am waiting for the library to tell me the authors’ other book, Switch, is available. If you need to get an idea to stick in people’s heads, or wondering why certain rumours or urban legends just won’t die, Made to Stick is the next book on your must-read list. An easy to remember mnemonic device makes their own basic formula stick in MY head. It was an entertaining, thought-provoking read. I wouldn’t say inspiring because it’s not really that sort of Oprah thing, but it sure got my creative mind clicking with new ways of thinking and communicating about stuff.

Influence, by Robert Cialdini

If you have seen the contest I am running (ends this Friday) you may be eager to know where I got that idea. Blame it on this book, a classic work in marketing psychology. Much of what Chip and Dan Heath discuss in modern pop culture stories actually owes its origins to Cialdini’s research and writing in Influence. You will learn how the human brain is programmed to respond in predictable ways to certain stimuli, and you’ll read stories that show how these programs can be used by “compliance professionals” as Cialdini puts it. A good antidote to overexposure to commercial messages!

Business Model Generation, by Alexander Osterwalder

The business model canvas introduced in this book is a brand new way of looking at your business to find the strengths and weaknesses, as well as pinpointing where you need to focus your efforts to lead the competition in your industry. I am using the business model canvas in Visual Planning Retreats with very revealing results. An aside: the crowd-sourcing model for this book is a harbinger of things to come in the publishing industry.

What are the top three business books for you this year?

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From my home to yours… Merry Christmas!

‘Tis the night before Christmas,
and at the Low house,
I’ve been very busy
With keyboard and mouse.

Today I’m making turkey dinner for 5 (and pre-dinner cocktails for 9) and tomorrow we’re doing a Provencal dinner for 9. My approach to turkey dinners has always amused my family because, you see, I’m a planning sort of gal. So my first step in creating a turkey dinner is not to bring out the roasting pan but rather, to boot up Excel and plan out my every move for the day.

In case you’re facing your own turkey armageddon tomorrow, I’d like to share (in the spirit of the holidays) my #1 secret weapon for a happy holiday meal: my Turkey Dinner GANTT chart!

Insert your own side dishes, etc. as you see fit… and have a wonderful time!

Christmas Eve GANTT chart

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Can-can you do the kan-ban?

This afternoon I finished marking and submitting grades for the Intro to Marketing course I’m teaching at Camosun College. With this completion, a significant amount of my timetable and energy gets freed up to return to focusing on my main business, which is (in case you’re new here) strategic planning – that means helping businesses plan and implement actions for change, such as revenue growth or product expansion.

I also have the luxury this year of my husband taking time off work during the week after Christmas when our daycare is closed, so I can spend that time focusing on work and my business when the phones are slow. To make sure I make the most of the rest of this month, I’m currently setting up a personal kanban. It’s actually a modified kanban in the planning stages, but it will be morphing as the month goes on and tasks are completed in more or less time than expected.

What this looks like:

  • I have a large stack of notepads with identical 8.5*5.5″ sheets of paper. I have written down as many tasks as I can think of, each task on its own piece of paper with a number beside it indicating how long I think the task will take in hours.
  • I have a series of small post-it notes with a date and a number of hours on it. Each small note represents an open time block in my life when I can work on these tasks.
  • I’m beginning to assign tasks into time periods, shuffling the pieces around so that tasks which are dependent on other tasks being completed are assigned to time periods AFTER the originating task.
Personal Modified Kanban

Personal Modified Kanban in the planning stages

Once I finish assigning as many tasks as I can think of, I will take this collection and adapt it to a white-board, using that blue sticky-tack stuff*. On the desk to the left of the white board I will put all “assigned” tasks that are coming in the future. On the whiteboard there will be a “work in progress” column on the left, where I post the day’s tasks using blue sticky tack. As tasks are completed, I’ll move the task page to the right side under “Completed”. Each day, the Completed section will be recycled (I use both sides of the paper) and a new set of tasks will be moved into “Work in Progress.”

Should I fortuitously find myself with unexpected spare time, or complete tasks faster than anticipated, I’ll be able to either pull tasks from upcoming days into the Work in Progress, or I will take a wee holiday break for myself. (Although chances are I’m more likely to just come up with more tasks to pile on top of everything).

We’ll see how this goes. I do enjoy managing my time with a kanban, probably because there’s a clear celebration of “Completed” work, but also because it makes me stop and think about how many different tasks I can realistically juggle in one day. It reduces my stress by putting the brakes on unrealistic expectations.

What do you use to manage your time when you have a bunch of unstructured “free” working time?

*Did you know? Using post-it notes on a whiteboard can leave a sticky residue behind which attracts the ink from markers. It takes a fair bit of scrubbing to get this clean. I speak from experience.

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The Unwritten Rules of Small Business

Understanding your target market is absolutely crucial to making sales, and that boils down to knowing the unwritten rules that your client is playing by when you start talking to them about business. Every industry has some of its own unwritten rules, and the farther away from government you get, the thinner the written rulebook becomes. Every business community has some of its own unwritten rules which take a while to learn when you move into a new market.

Here are some unwritten rules I’ve heard of that I think might be among the “modus operandi” of the Victoria small business community. They’re not all good or bad. I’d love to hear what you think about some of these rules: do they have a good or bad effect? Do you believe they’re common in Victoria or not? If you’re from elsewhere, do you have these or other rules operating under the surface in your business community?

  • Only do business with customers – that is, when you need to buy something, look to source it from somebody who already buys things from you. Good rule/bad rule?
  • Always bargain for a better deal – never take the first price you’re offered. Good rule/bad rule?
  • The starting budget is always zero when somebody wants to sell you something.
  • Don’t tell somebody “no” right up front – keep your options open. (I’ve heard from a few newcomers to Victoria who find that decisions seem to take forever in this town, and not just in government!)
  • Help new people figure out who is who, where to go to meet people, how to network, etc.
  • The longer you’ve lived in Victoria, the more you “belong” or the more you seem to be trusted. (Is this really out there or am I just imagining it?)
  • If you refer business to somebody, you should/can expect they’ll refer back to you at some later date. (Not sure on this one)

It’s worth reflecting on these and other unwritten rules to examine how these assumptions impact your business practices. Do they tie you down or free you up?

What other unwritten rules of business come to mind for you?

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Discovery-driven planning

I’ve got my hands on the September 2010 Harvard Business Review, and am devouring it rapidly, my notebook at my side. Expect a few posts from me over the next little while, translating HBR wisdom into business ideas for the rest of us.

Discovery-driven planning (explained in typical academic writing style in this wikipedia article) is essentially what most start-ups do, although usually unconsciously unless they are challenged by a funding source to provide more carefully prepared business plans and milestones. In Sept’s HBR James D. Thompson and Ian C. MacMillan have applied the disciplines of discovery-driven planning to a social venture (article title: “Making Social Ventures Work.” Some of their advice for social ventures is relevant for all entrepreneurs starting out down a new path.

What are the boundaries of the ballpark you’re playing in? Define your deal-breakers, your conditions of success, and your rules of engagement. Many people enter entrepreneurship with a noble cause to serve or vision to bring to life, but fail to define the rules they want to play by. See under: becoming an underpaid slave to a deadend business.

Recognize the discipline of discovery-driven planning. Define a business model on certain assumptions, trying to anticipate the challenges of growth. Do this with the knowledge that (here’s the amusing and important bit) your assumptions will turn out to be wrong. But since you don’t know which of your assumptions will turn out wrong or how seriously wrong, you should start your business at the lowest possible cost and use the events that transpire to continuously update your assumptions.

Use your assumptions to build a revenue model. Know how much money you’ll be earning, and when (and what the associated costs will be). Test the model as events unfold. The “discovery” aspect of discovery-driven planning means that each new piece of information is treated as a discovery that feeds the business model. When you experience success, examine why. When you experience failure, ask why and what have we learned? How does new information affect your plan?

The crux of this is having a disciplined routine for examining what’s happened and what you were right or wrong about when you did your initial planning. A series of checkpoints, possibly at the first quarter, first year and so on, provide opportunities to evaluate your venture and decide whether you want to put more time, money and sweat equity into it.

This applies for a business that is currently in full swing and looking to expand, just as much as a small business. Any project or program for growth or improvement can be managed using discovery-driven planning.

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Dueling with change

I was trying to type “dealing” with change but my little motorola keyboard input something else. This is an autocorrect mistake I can live with.

Just got off the phone with a client who has been dueling with lots of change this autumn. He has two new senior employees and a large stock of changes he has still to make in the company to keep his clients happy. This is the right moment for him to use an objective third party as a facilitator for the team. I will be helping them put together an action plan compiling and reconciling the myriad of projects on their plate for 2011.

This company has 20 employees, many of them telecommuters. When a company gets to this size it becomes a challenge to manage, because there isn’t enough scale or money to really have “middle management” but the coordination tasks become daunting. This is the sort of situation where my services have a big positive impact. And it just so happens that I ADORE working with clients like these!

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The Four D’s of Personal Development

This came today in an email from my aunt-in-law, a very wise and loving woman:

Reflect on this pathway for meaningful growth:

DISCIPLINE – To create change in our lives, we need to consistently focus on what we want.

DETACHMENT – Practice the art of detached observation. Let go of automatic defenses and patterns.

DISCERNMENT – Seek to discern the lower from the higher. What is self-serving and what is soul-inspired? Discernment carries no judgment. There are no goods and bads. Remain as a detached witness.

DHARMA – This is an East Indian word meaning “living your unique purpose.” How do you find meaning and fulfillment in ways that are natural to you? How do you best serve and contribute to the world?

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