January 4, 2011
Lake Superior State University annually publishes a list of words that should be banned from the English language. Many are overused or hackneyed phrases that serve no useful purpose in the language. As I was reading through the list, I realized there were many phrases and words that should be banned from use in the business world. I came up with a list of just under 100. Looking through my list I picked my top ten phrases to be banished. Here they are in no particular order:
- Low Hanging Fruit – This term has been used for years, primarily by salespeople. Low hanging fruit is much easier to pick than having to climb up a ladder to pick apples, oranges and other fruit that grows on trees. In the sales world it describes getting the easy sales while disregarding sales that take time and effort to get to a purchase order. Why not just use the phrase easy sales, instead? Don’t neglect easy sales, but work for the harder ones as well.
- Core Competencies – Can anyone really define this concept well? It is generally meant to be the primary skill sets that a person must have to be able to perform a job well. For some reason, it has become the mission of many Human Resource departments, particularly in large companies to issue a set of core competencies around various positions in the company. In my mind the only thing it accomplishes is to create new or more work for someone in HR. Now a company can go out and hire a Core Competency Chief who can get everyone else to explain why they hire the people they do. Whatever happened to good old fashioned skills needed to get the job done?
- Bring Your “A” Game – Really? Like I am going to do anything, but do my best. This phrase along with giving 110% has to go. Suppose my B game is better for a particular occasion? Should I shelve it because I am supposed to bring my A game. This one is just pure nonsense.
- Fast Paced – This is usually used to describe a corporate or company culture. Many people use this term on a resume to describe their current or past position as
in “worked in a fast paced environment.” Can’t you just imagine a gaggle of people running around, getting in each other’s way and accomplishing nothing because no one is taking the time to think or plan? Fast paced is not necessarily the best “pace”. Can this one along with multi-task. - Going Forward – I hate to admit it, but I have used this one more than a few times. It is generally at the start of a statement that goes something like this. “Going forward, we are going to ……..” What it means is that there is no more discussion of an issue and that the boss has issued an ultimatum of some sort. Why not use, “Thanks for your input. I have made a decision and it is…..” Besides, in business, do you really want to go backward or stagnate?
- At this point in time – Come on people, let’s just use good English. If you have to ask, you just don’t have the core competency to understand the skill.
- Bottom line – I cringe when I hear this one. It has to be one of the most overused phrases in existence. How about exchanging it for results? That’s a good old fashioned word, as Andy Rooney would say.
- End of the Day – I lied. This one is more overused than bottom line. Doesn’t business go on 24/7? I hate that one too. Get rid of both of them.
- Wrap My Head Around It – When I hear someone say this I can just picture their head splitting and trying to surround some object or idea. Is there anything wrong with someone saying they are trying to understand a concept? I think not.
- 30,000 ft. View – Here’s another one that is odd. It means an overview or summary usually pertaining to a strategy, idea or plan. Why not just say so?
I had fun reading and gathering these useless pieces of terminology. I will share more of them from time to time, or maybe, at some point in time. I am sure you all have your own words that make you stop and wonder why someone used a phrase. Chances are they picked it up in some training, an internet article or some business book that likes to use analogies.
Happy Entrepreneuring!!
Filed under News by on Jan 4th, 2011. 2 Comments. 
January 11, 2011
Normally, I keep my posts positive in nature, preferring to look at how we build a business to succeed. But, there are lessons to be learned from the negatives as well. In this post, I will mention just a few of the things you as a business owner or leader can do that are detrimental to your business and its’ success. Most require some introspection to determine if you are at the heart of causing your business to fail or to not reach its’ full potential.
I have chosen 5 that I believe are the most egregious errors you can make. So, take a deep breath, sit back and prepare to be challenged. Don’t just read and say none of these apply to me. I can pretty much guarantee you that at least one does.
- Be a Control Freak – This is OK if you are a sole proprietor. But if you have employees that work in your business with you, this is not good. If you are the sole maker of decisions, your business can never grow. No decisions can be made without you and you can never take a break from your business. Further, the control freak owner believes the only right decisions and visions for the business can be made by the “BOSS”.
Let’s get real about this one. If you hire people only to complete tasks, you may be hiring the wrong people. (See my series on hiring the best people.) link You should be hiring people not only to complete tasks but to think and take appropriate action and make decisions that are in the best interest of your business, You should be training people and coaching them to make virtually all decisions in the operation of your company. Once they know you respect their opinion, they will bring you many ideas you never thought about.
- Failure to Plan for the Unexpected – Your business is humming along and things are great! You are feeling good and business will continue as it is with no end in sight. You have no contingency plans and no monetary reserves. You decide you want to expand and put everything you have into it. Then, your top salesperson or manager you had counted on gets sick or joins a competitor. Or, you have new powerful competition. Or, the entire market changes. Can you say recession? What are your plans if this happens to you?
I can give you a real experience I had to work through. Back in the late 80’s, I established a company to sell voice mail services and hardware throughout New England. I was a pioneer an industry so new that I had to educate my customers what voice mail was before I could sell them. Many sales calls by me and my sales staff built a business. Then, in the early 90s, the local telephone company (New England Telephone) decided they were going to get into the business. They offered their services cheaper than I could. I certainly did not have the resources or clout to compete with them. So, into effect went contingency plan A. I exited the service side of the industry, kept the equipment side going and picked up a number of long distance carriers as an agent to resell their services. We were able to survive by quickly changing the direction and focus of the business.
I have another example, but will save it for another post.
- Grow Too Fast – As a typical entrepreneur, you do not lack in confidence in your ability to conquer markets and succeed. After all that is why you started a business. You can do it better and bigger than anyone. You have a successful business and you have several ideas to expand. Or, you want to grow into other territories. Before you move, stop and think. Do I have the capabilities, the money and the people to start this expansion and be successful? If not, what do I need to be able to succeed? Where will these resources come from? Who are my competitors?
Before you expand into another Idea or market, you should complete a full business plan on the expansion. What resources are you going to steal from your main business? Who will you need to hire? Can you really be successful in this new arena? If the answer is yes, than go for it!
- Not Paying Attention to Your Main Business – Do what you set out to do when you started your business. This is a bit of a corollary to the last point. If your main business is selling widgets to manufacturers, then focus your attention on that business. Don’t worry about selling widgets overseas or to non manufacturers unless you have such a superior widget all the world wants and needs it. Focus, focus, focus.
- Not Doing What You do Well – I am not talking about the company now. I am talking about you as a contributor to your business. Are you a great visionary that inspires people? Are you the best salesperson? Are you a terrific numbers person? If so, stick with what you do best. Don’t try to be a little of everything. You can only fail this way. There are people you can hire or contract with that can complement your skills. Concentrate on what you do well and seek expert help in the areas you are not an expert. And, then listen to them!! Do not let your ego get in the way.
That’s my top five. There are others, but I think these are the most important. If you can master these five do nots, you will have achieved a lot. And, I can pretty much guarantee you will be running a successful business.
Happy Entrepreneuring!!
Filed under Hiring and Managing People, News, Start Up by on Jan 11th, 2011. Comment.
January 17, 2011
Guest Post by Tracy Eden
Most business owners will tell you that it’s still pretty rough-going out there when it comes to obtaining commercial financing. This is true despite improvements in the economy and efforts by the federal government to jump-start business lending among community banks.
In such a tight credit environment, the importance of the role played by asset-based lenders has increased exponentially. “‘They are a vital cog in the economy right now,” says Michael Miller, a director with CFO 911 in Playa Del Rey, Calif. “I can’t imagine what the economy would look like right now without them.”
“The credit crunch has taken a difficult situation and made it impossible,” adds Jennah Purk, president of Purk and Associates in St. Louis, Mo. “I regularly refer my clients to asset-based lenders.”
Alternative Financing Solutions
Asset-based lenders provide creative business financing solutions for companies that don’t qualify for traditional bank loans and credit lines, whether this is due to their 
start-up nature, rapid growth, or financial ratios that don’t measure up to a bank’s requirements. These solutions typically include asset-based loans, accounts receivable financing and factoring.
In 2009, factors provided $140 billion in financing, up slightly from the year before, reports the Commercial Finance Association. And total outstanding asset-based loans increased 1.25 percent in the fourth quarter of 2009.
“Banks today have reverted back to a 1980s and ‘90s model with regard to financial ratios,” says Albert Christiansen, a partner with B2B CFO in Phoenix, Ariz. ‘That’s why asset-based lending is so important right now. There are many companies that can’t meet a bank’s lending criteria, but they need to keep their cash flowing.”
Larry Potashnick, the CEO of Capital Performance in St. Louis, Mo., concurs: “Bank underwriting guidelines are getting tighter and tighter. The good thing about asset-based lenders is that they’re able to plug a pretty big financing gap that exists right now: Businesses that aren’t quite creditworthy enough to borrow from a bank, but they still need critical working capital in this tough environment.”
Manufacturers and distributors with creditworthy customers are often good candidates for asset-based loans and factoring, says Purk, because the financing is based on receivables, not inventory. “Most of my clients who have done this kind of financing have been light manufacturers that were startups, or where the owner didn’t have sufficient personal assets to pledge as collateral.”
“Banks don’t want to repossess a warehouse full of steel plates, car parts or frozen eggrolls,” she adds.”‘But an asset-based lender can convert accounts receivable to cash quickly, and cash is king.”
Christiansen tells of a distributor with a strong business model and a good understanding of its market that needed a cash flow boost to weather the economic downturn. “The company got financing from an asset-based lender that provided the working capital necessary to keep going. They grew from about $7.5 million in revenue in 2008 to $10 million last year, and they should hit $13 million in 2010. This growth would have been impossible without asset-based lending.”
A Working Capital Boost
Asset-based lenders can also help companies that have bank loans or lines of credit but need additional short-term working capital to take advantage of opportunities, like an unexpected large order. “It can be hard to get a credit line increase in this environment,” says Miller. “Too many companies aren’t aware of how asset-based lenders can help them in situations like these. I’ve referred many clients to asset-based lenders and will continue to do so.”
Asset-based lending is often temporary, providing much-needed working capital during a start-up or transition phase until the company has enough financial history or a strong enough balance sheet to become ‘bankable.’ Purk says banks usually want to see three-to-five years of financial statements from potential borrowers.
“Asset-based lenders serve a clear need in the marketplace right now,” says Christiansen. “Some of my clients have improved their cash flow greatly by taking advantage of these types of financing.”
About the Author
Tracy Eden is the National Marketing Director for Commercial Finance Group (CFG), which has offices throughout the U.S. CFG provides creative financing solutions to small and medium-sized businesses that may not qualify for traditional financing. Further information on the company and their services offered can be found at the Commercial Finance Group and at First Vancouver Financial Services. Tracy’s direct email is tdeden@cfgroup.net.
Article Source: http://www.articlesbase.com/small-business-articles/asset-based-lenders-serving-a-true-need-in-todays-marketplace-3964958.html
Filed under Finance, News by on Jan 17th, 2011. Comment.
January 24, 2011
There are many entrepreneurs and salespeople who look at sales as something mysterious, a smoke and mirrors production. That couldn’t be further from the truth. Sales are very simple. The more decision makers you talk to, the more sales you will make. It doesn’t matter if you are selling corporate aircraft, computers, real estate, or business services. Sales are a function of activity.
How do I know this? Every business I have owned had its own set of sales ratios. You can predict your company’s success by knowing your ratios. You can predict how much revenue and how much profit you will make if you know your ratios. Businesses in different industries operate with different ratios.
Let me give you an example. I once owned a company that sold voice mail equipment to other businesses. Initially, I started with two part time appointment setters who were calling local prequalified businesses from a list I bought. They could make about 10 calls an hour or 80 calls a day between them. Of those 80 calls, they would get a decision maker on the phone 18 times. Of those 18, they would re-qualify and set appointments with 3. My first sales person would have 3 appointments set each day or 15 per week. Of those 15 appointments set each week, 2 would result in eventual sales. Knowing what my gross profit would be on each sale I could back out my sales, installation and support costs to know what my average profit would be on each sale. With this math, it was very simple to figure profitability of the company.
From here, it was very easy to scale the business up or down by adding appointment setters and salespeople depending on the market being served and market conditions. Watching the weekly and monthly ratios kept the business moving profitably.
Keep in mind that these were pre-qualified companies we were calling. They had to have a minimum of 50 employees and annual sales of at least $10,000,000. These were quality phone calls and quality appointments. I did not ask people to waste time calling on companies where we would likely not do business. We were not creating activity for the sake of activity. There is nothing worse than that.
Some people will tell you that you need to create relationships to sell. You need to network with the right people and get to know them. And, that is true as well. Even then, you have ratios of how many people you meet and speak with and how many sales that will close from those contacts.
Regardless of whether your sales come from cold-calling, warm calling or networking, there are numbers to be managed. I would also challenge that if you are relying on only one of these ways to get your leads, appointments and presentations, you should expand to include other ways as well.
Inactivity is not a good thing. I will leave you with this thought:
Never stop knocking on doors. You never know who or what will be behind the next door. Will there be that one person or opportunity that will change your life forever??
Happy Entrepreneuring!!
Filed under News, Sales and Marketing by on Jan 24th, 2011. Comment.
January 31, 2011
I was talking with an old friend last week about business and the business climate in the United States. He is a former employee who has been successful in launching his own business ventures over the past two decades. We have both witnessed the ebb and flow of the economy. We both believe the best time to start a business is when the overall economy is doing poorly. At least that is the best time to formulate plans and test to see if the business proposition is valid. We both agreed that it is better if you can catch the economy just starting on an uptick.
Anyone who wants to start a business should note that now there is a perfect storm in the business world. Several elements are coming together to give you what may be a great opportunity to start a successful business. These forces are powerful catalysts that will help you jump start your business in the United States today.
Before you start salivating, please read my post about having what it 
takes to start a business. Once you think it’s for you, check out the easy steps to starting your own business. Still with me? Let’s get started.
- Money is Easing – Banks are starting to ease credit underwriting criteria slowly, the Small Business Association has some new programs ( I’ll cover them next week), and angel investors and venture capitalists are eager to invest. Plus, there are other ways to raise capital
- Economy is Strengthening – forward looking economic indicators are predicting strength in the coming quarters, the unemployment rate has dropped slightly and retail sales and manufacturing are picking up. The one cloud is real estate which may take several more years to unwind.
- Great People are Readily Available – the corporate cuts of the past several years have left many great skilled people either without a job or underemployed. In today’s environment, you can find top talent in virtually any field. People are anxious and eager to get back into the workforce and do what they do best. Decide what you need for skill sets and go find them.
About the only piece missing to be successful is your idea.
Over the past several months, I have seen an increase in queries for business help. People are realizing they need to move their ideas to the “do it” stage. They know that these elements are falling into place and are afraid they may miss a great opportunity. Soooo….. what’s holding you back??
Happy Entrepreneuring!!
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http://waynemates.com/2010/09/hiring-the-best-people/
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Filed under News, Start Up by on Jan 31st, 2011. Comment.
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