10/8/2008
I have been looking at the pros and cons of buying a business versus starting up a business from the ground up. In my previous two entries, I discussed the pros to buying and starting up a business. I am going to look at the cons of buying or starting up.
When you look at buying an existing business, you need to understand some of the hidden challenges that could thwart you from achieving your goals.
Have your eyes wide open… No matter how well you do your due diligence you will find things out that you did not expect. One such experience was a project that was committed under the previous was a database project. It was to be the foundation for how we were going to manage our clients and speakers. Our expectation was to complete the project and rollout the new technology. However, we realized after spending some additional money that this project would never see the light of day. Therefore, we killed the project and moved on to another solution. We did not plan on the solution not working or having to find another solution.
Implementing change takes time… When you get the keys to your new venture, you have wild ambitions of making lots of change. However when you sit behind your desk and begin the new journey, you realize quickly that the change you want to make will not happen quickly. You cannot bring in the broom and make wholesale changes without the risk of potentially damaging the business. You will need to make you changes in a structured and systematic way.
Building "buy-in" from your current team takes even more time… When you have been given the keys to your new venture, one of the biggest challenges you will encounter is turning skepticism into buy-ins. Rightfully so, your team members are anxious because they don't know if your plans are going to impact their job. They do not know if you will be better or worse than the current management. It will take time to get the buy-in you need to fuel your growth.
Funding Growth the growth, you want… After taking over your business, growing it is your # 1 priority. Since you inherited a company with ongoing operations and revenue, you need to have an environment that supports the current operations and obligations. The biggest challenge an acquired business has is balancing out growth plans with meeting the operational and capital needs. If you funded your growth through a bank, your access to capital will be dependent upon on profitability. Your bank will want you to guarantee more of your life than they already have. As we seen with the credit crunch caused by the hysteria of D.C. and access to capital becomes limited, your growth plans stop.
Improving your systems is not as easy you hope… One of the biggest assumptions you make when you take over an existing enterprise, is you will be able to improve efficiencies and productivity. I made the same assumption. I was able to change some of my systems, which improved processes or availability to information so we manage the business better. However, I am still being challenged to improve some of our systems or processes that would better be managed by technology. The challenge anybody has with changing systems is you cannot disrupt your business. In addition, you need to be able fund the changes or will the changes create dramatically improve over your current staff. If you have ideas, let me know.
No matter what side of running a business you are on, by having an insight into the upside and downside of running a business you will be able to understand and anticipate changes you need to navigate through. 9/24/2008
As mentioned in the previous blog, I acquired FIVE STAR Motivational Keynote Speakers in 2005. It seems every person I connect with is an entrepreneurial type. Whether it is my friend Bruce who started his business from an idea or to my friend Ben who working on becoming a real estate magnate in the Kansas City area. Being an entrepreneur takes guts, takes drive, takes patience and takes optimism. When I made the leap forward into entrepreneurship, I saw some pluses for starting a business from scratch.
You get to lay the foundation… I believe there is nothing more exhilarating than working with your hands and building something. The same thing can be said for starting a business from the ground up. You get to dream of ideas until you settle on one killer cool idea that will change the whole world. You get to build the business plan. You get to raise capital (beg for money).
You get to create the culture… When you start a business, you set the foundation. You get to hire your founding employees who will help you grow the business. During this time the culture begins with pizza boxes, beer Fridays, company sponsored sodas, ping-pong tables, and Xboxes. You want to set a culture that will cultivate and plant seeds of growth so who hire the best people to that you can get.
You get to sell, sell, sell… When you are a start up, you sell baby sell 24x7. Nothing is as important to a young business as brining revenue in the door. You need sales. Therefore, when you are a young business you have no systems or marketing collateral, you sell on your good looks and charm.
You get to build the systems… When you acquire a business, you inherit the systems that made the business work. Some of the systems are excellent and some need to thrown out with the trash. On the other hand, when start the business, there are no rules or systems in place. You get to undo every system or policy you hated from your employers. The new systems can leverage the best of people or technology.
You get to create products and services… The greatest fun of a start-up is bringing a product or service to life. Creating the concept, building the components to the service, getting to market, and generating revenue from you concept is the rewarding process of moving the journey from start-up to stability.
No matter the phase your business is in, being an entrepreneur is filled with challenges and joys. Enjoy the ride, pass along ideas, and share your successes.
9/10/2008
In 2005, I made the big jump. I officially became an entrepreneur. I bought FIVE STAR Motivational Speakers and Trainers. I set out with my business partner to seek the Holy Grail. I am still on this quest for the Holy Grail, but have made some observations on running a business, comparisons between starting a business from scratch versus acquiring a business (we acquired a business), and essential elements to growing business no matter what stage you started the business.
I am writing four articles that will walk through the pluses and minuses on buying or starting up a business. I will write one final blog outlining some key elements for growing your business. Let's get started….
I have owned FIVE STAR Speakers since February 2005. After getting the keys to the car, we began to examine the business for areas of strength and weakness. When you acquire a business, you inherit the following pros:
- The business is OPERATING….When we acquired FIVE STAR Motivational Speakers, our business was already running. Depending on your stage of entrepreneurial growth having a business up and running, you speed up your development and ability to grow a business.
- The business has a STAFF… When you buy a business, there is a staff that has been working in the business for some period of time. You have a sales team. You have a product or service. You have accounting. You get good people who know your business.
- The business has CUSTOMERS… When you acquire a business, you inherit a customer base which is the most important and hardest to develop. In a startup business, you spend a lot of time and energy convincing someone to do business with you. In an existing business, you spend time retaining the client.
- The business has a BRAND… Another area where business owners spend a tremendous amount of time is building the brand identity of a business. When you begin as a start-up you go through trying to determine what the business is about, what story you are going to communicate, who you are going to reach out to. When you acquire a business, you don't have to start the brand from the beginning.
-
The business has REVENUE… When you take over a business, you get the most important commodity a business needs for sustainability and growth cash. Having sustainable and consistent revenue may afford you the opportunity to self-fund your growth.
It does not matter whether you are a start-up or existing business there are pros and cons to being on either side of the business spectrum. No matter what, running a business is a fun, rewarding, and exhilarating experience. It is worth the risk! 8/25/2008
Wow! Is the only thing you can say as millions of people have been watching Olympic Gold Medalist, Michael Phelps pursuit of 8 Gold Medals? It has been quite a site to watch him reach and exceed the 36-year record of Olympic Gold Medalist, Mark Spitz.
On Friday, I saw something that is very important to note for us leaders. If you watched Michael Phelps 100m Butterfly race, you will know that he was trailing in the race to the Silver Medalist, Milorad Cavic of Serbia. Phelps was charging to the finish while of all thought his chance of matching Mark Spitz record looked in doubt. However, right at the end of the race Michael Phelps took on more strokes while it appeared to me that Milorad Cavic coasted into the finish. No matter what Cavic did during his finish, Phelps continued pushing through the finish.
FIVE STAR Speakers leadership and motivational speakers, Brian Biro demonstrates this point at the end of his keynote speeches when he gathers the members of his audience in circles to break boards. People of all sizes, age, and sex encourage members of their team/company to break through. In order to successfully break the board, Brian emphasizes with the audience the need to look through the board. I believe this is one of the key reasons for Michael Phelps phenomenal success. He sees beyond the finish line, a breakthrough experience.
We need to do the same thing with our teams. We need to help them breakthrough their personal obstacles. We need see our companies’ obstacles and breakthrough. Being a growth organization is not easy requires discipline, work, and an unwavering commitment to win.
8/1/2008
I finished a conversation with one of the mobile phone companies. I was asking questions about my account and things I would like to do. Most of the questions were met with "you'll have to have a 2 year agreement and if you had to cancel there would be a 2 year cancellation agreement." There was no flexibility, no adaption to my needs, and no creativity. It was not the person I was speaking with but inane policies created by people who forgot look at themselves as consumers.
My general take on services like phone service, cable, and other utilities is people do not want to switch. However, they want a fair price without feeling they are taking it in the shorts. These types of companies think they are doing us a service by providing us the right to use their company's products. Another industry that has been undergoing tremendous upheaval is the music industry. They thought they were the creators of the music and not the artist. When Apple came out with iTunes they became a true disruption to the industry because it monetized the electronic download, but also made a service that is fantastically simple, a service that matches the needs of the user, and a service that becomes the core of a person entertainment world. What most people do not know is that to build a service, product, or company that is simple to use takes a tremendous amount of time, requires resources of money and people, under the covers is tremendously complex. Also, a simple system is founded on a rule breaking & disruptive vision. When a simple system works beautifully, it is tremendously disruptive and fuels growth, See iTunes, iPod, iPhone, Toyota, Zappo's, Facebook, etc.
To build simple systems, you must start with the simple assertion that change is occurring. Second, then you need to look at the current methods of delivering the current service. iTunes, iPod, & the iPhone are replacing the need for cd's as it integrates with the mobile society we are a part of. Third, you need to look what you would like to experience, this is wish list and nice to haves. Fourth, you need to take your wish list an break down it down in smaller pieces to build it into bite size pieces. iTunes built their service in chunks starting with music and ending with movies. Fifth, you need to release version 1.0 and begin planning version 2.0. Finally, keep tweaking and improving.
One of the goals FIVE STAR Motivational Speakers has is dramatically change the rules on how people select motivational, business, or keynote speakers & entertainers for their events or meetings. Under discussion are how we are collecting information from the speakers, how we are providing that information to our clients, where they can find that information, and how they might book a leadership speaker in the future. The ultimate goal is an experience that is so simple for our clients and speakers that they do not want to work with anybody else but FIVE STAR Keynote Speakers.
A truth…to build a service or solution that so simple it is not so simple, but well worth it. 7/15/2008
I have heard that people say that the new generation of the workers is significantly different from previous generations. I am not so convinced that is the case. I think the new generation of workers is very similar to the previous two generations. We know the baby boomer generation was born between 1946 to the early 1960's. The Generation X is defined as being born between 1965 and 1979 and Gen Y as 1980 to 1986. Are there similarities? Yes!
Why would I make such a proclamation, because I believe it is true, but you will need to hang with me to learn why? What gives me the ability to make such a claim? I am a founding member of Gen X and hired by members of the baby boomer generation. I am going to break down the similarities, differences, and what all of us workers want from our senior leaderships.
First, every new generation of workers always thought their stuff does not stink and they were wrong. Every generation thought they deserved more than they have accomplished. I thought this coming out of college 20 years ago. I turned down a position to work from the ground up for a business owner who could have been a mentor and assisted the development of my leadership skill to attempt to land with IBM or some other company. I thought working from the ground up was beneath my skill level and accomplishment.
Second, every new generation has benefited by new technology to increase their knowledge and skill sets. They were hiring leadership and managers that had the experience, but maybe not the exposure to new advances in technology that enhanced personal productivity. The new workers believe this to be their greatest strength and one of the reasons for their personal cockiness.
However, technology has created greater gap in today's hiring environment than when I began my pursuit of glory 20 years ago. I was having a conversation with the Chair of my Vistage group, who is 62 years old. The use of technology in 1988 was greater than 1968, but no significant enough to alter the hiring and employment practices. However, technology has dramatically changed how today's workers have been educated and what skills they bring to the work force.
I taught myself to use a pc because I was a bad typist. Today's new workers have grown up using personal computers and other devices to communicate, navigate, and solve problems very rapidly and accurately. I had to use paper to attempt to solve a problem. The new generation of workers is using technology to communicate with their friends. We are now becoming adept on linked in, facebook, and other social networking sites. They are dreaming of how to be Sergey Brin of Google. How do we manage this perplexing scenario?
What should a leader do to manage this new generation of worker? Do you want a hint? It is the same thing from my peer group to the worker in their 60's. We all want to our leaders to be strong. We want our leaders to value our co-workers and ourselves. We want our leaders to develop us. We want our leaders to respect us. The final requirement we expect from our leaders is to provide coverage from senior management.
If we as leaders take care of our workers regardless of the generation they were born in, these workers will be loyal, productive, and enthused about their work. However, if we they do not the Gen Y worker will move on.
FIVE STAR Motivational Speakers work with many business or leadership speakers & experts who speak on managing the new generation. Jim Welch, Jason Dorsey, Cheryl Cran, J.P. Pawliw-Fry, and others are working with corporations around the country on how to hire, communicate, manage, and lead this new generation of workers.
P.S. If you are interested in learning more about how to handle the new generation of worker, on July 29, 2008 FIVE STAR Leadership Speakers is holding the Big Disconnect with Motivational Speaker and Leadership Speaker J.P. Pawliw-Fry and Leadership Speaker Bill Benjamin. 6/25/2008
Over the past three months since we launched our new website, Lori Turec, Steve Gardner and I have had the great opportunity of interviewing some of the top professional speakers who are leading experts covering topics such as Sales, Business, Leadership, and Health & Wellness. You gain insight from our experts/speakers who have personal knowledge of such great organizations Hallmark Cards, Starbuck's & Ritz Carlton. Our business speakers/experts have worked have grown companies, created barriers of entry from competition, inspired teams to achieve greatness. I encourage you listen to all of the interviews. Download them to your IPod or computer to enjoyment. If you want more information or would like to hire an expert for you company contact FIVE STAR Motivational & Business Speakers.
Here is a list of the people we have interviewed so far and a link to the interview.
|
Speaker, Expert, and/or Author |
Expert Profile |
Topics |
Link to Interview |
Buy The Latest Book |
|
Barry Moltz |
Small Business, Entrepreneur, Sales Speaker & Author of Crazy & Bounce |
Small Business Growth, Entrepreneurism, Business Growth, Innovation, Leadership, Change, Resiliency, Business Strategy |
Listen to Business, Leadership, Entrepreneur Speaker, Barry Moltz |
|
|
Chin-Ning Chu |
International, Women, Business, Leadership Speaker, Author, & Authority on Sun Tzu's Art of War |
Leadership, Sun Tzu, Art of war, Business, Women Leadership Issues, Business Strategy, International Business, China, International Marketing, Business Development, Leadership Strategy & Development |
Listen to International, Women, Leadership Speaker & Author Chin-Ning Chu's Interview |
|
|
Dan Buettner |
Longevity Expert, National Geographic Writer, Adventurer & Author of The Blue Zones |
Health & Wellness, Adventurer, Longevity Expert, Aging, Personal Improvement |
Listen to Motivational, Health & Wellness, Adventurer, Speaker, Author Dan Buettner |
|
|
Dr. Oren Harari |
Business, Leadership Speaker & Author discusses the essential tools that will help chief executives, business owners, and senior leadership break from the copy cat economy. |
Business, Leadership, Competitive Advantage, Corporate Strategy, Business Strategy, Consulting, Innovation, Economic Resiliency |
Listen To Business, Leadership Speaker & Author, Oren Harari |
|
|
Jason Dorsey |
The "Gen Y" Guy, Motivational Speaker, Generation Y Expert, Entrepreneur, & Best-Selling Author |
Generation Y, Leadership, Managing Across Generation, Entrepreneurism, |
Listen to Motivational, Generational, Business, Leadership Speaker, Jason Dorsey |
|
|
Jaynie Smith |
Business, Marketing, Leadership Speaker, Consultant, Vistage International Chair, Author of Creating Competitive Advantage |
Business, Marketing, Leadership, Competitive Advantage, Sales, Women Leadership, Employee Recruiting, Employee Retention |
Listen to Business, Marketing, Women, Leadership Speaker & Author Jaynie Smith |
|
|
Jim Jacobus |
Business, Sales, Leadership Speaker, Consultant, & Trainer |
Business, Motivational, Leadership, Sales, Employee Recruitment, Employee Development, Peak Performance, Christian |
Listen to Business, Motivational, Leadership, Sales Speaker & Expert, Jim Jacobus |
|
|
Jim Welch |
Business, Marketing, Leadership Speaker, Executive, Consultant, Former Chief Marketing Officer of Hallmark Cards, Author of Grow Now |
Business, Marketing, Leadership, Emotional Connection, Managing across generations, Customer Connection, Retail Marketing & Sales |
Listen to Business, Marketing, Leadership, Speaker Jim Welch |
|
|
John Sileo |
Business Owner, Security Expert, Identity Theft Expert, Consultant & Speaker, Author of Stolen Lives |
Business, Financial Security, Identity Theft, Strategy |
Listen to Business, Security, Identity Theft Speaker & Expert, John Sileo |
|
|
Joseph Michelli |
Consultant, Psychologist, Radio Talk Show Host, Motivational Speaker, Best Selling Author of The Starbuck's Experience and The New Gold Standard |
Business, Leadership, Customer Experience, Starbuck's, Ritz Carlton, Motivational |
Listen to Motivational, Leadership, Business, Speaker Joseph Michelli |
|
|
Lance Secretan |
Provocative Leadership, Author, Former Executive, Consultant, & Trainer |
Business, Business of Healthcare, Consulting, Healthcare, Inspirational, Leadership |
Listen to Business, Leadership Speaker & Author, Lance Secretan |
|
|
Lon Safko |
Business, Marketing, Social Media & Marketing Speaker, Expert, & Author. Lon will be releasing the Social Media Bible in March 2009 |
Business Innovation, Marketing, Social Media, Social Marketing, Web 2.0, Social Networking, Technology |
Listen to Business, Social Media & Marketing Speaker & Expert Lon Safko's Interview |
|
|
Scott Klososky |
Serial Entrepreneur, Technology & Internet Expert & Consultant, Speaker & Innovator |
Business Innovation, Technology, Strategy, Leadership, Automation, Social Media, Social Marketing, Web 2.0, Leadership, Innovation |
Listen to Technology, Business, Leadership Speaker, Scott Klososky |
|
|
Scott McKain |
Business, Motivational, Leadership Speaker Scott McKain discusses the key essentials for connecting with your clients. |
Business, Leadership, Customer Services, Customer Connection, Sales, Motivating Customer |
Listen to Motivational, Leadership, Business Speaker & Author, Scott McKain |
|
|
Steven Little |
Business, Leadership, Entrepreneur Speaker, Inc. 500 Senior Consultant, & Best-Selling Author of The Milk Shake Moment and The 7 Irrefutable Rules of Small Business Growth |
Business, Leadership, Small Business, Growth, Entrepreneurship, Resiliency, Innovation, Management, |
Listen to Business, Leadership Speaker & Author, Steven Little's Interview |
|
|
Susan Fletcher |
Business, Women, Leadership, Speaker & Author of Working in the Smart Zone |
Leadership, Motivational, Women's Issues, Business Growth, |
Listen to Business, Leadership, Motivational Speaker Susan Fletcher's Interview |
|
|
Tom Flick |
Business, Leadership Speaker & Consultant, Former Pac-10 & NFL Quarterback.
|
Business, Leadership, Motivational & Inspirational, Change, Leading Change, Managing Change, Senior Executive Development |
Listen to Motivational, Business, Leadership Speaker, Consultant, & Expert, Tom Flick |
|
You can subscribe to the podcast by going to iTunes search FIVE STAR Speakers ASK The Expert. 6/24/2008
FIVE STAR Motivational Speakers is the business of providing motivational, business, leadership & other keynote speakers, entertainers, & trainers for company meetings and events across the world. We have the unique opportunity of meeting the thought leaders, authors, and speakers on business, leadership, sales and management. You would think we would be the most eager to put into practice some of latest and most progressive concepts discussed in leadership. Well, I have news for you all. I am just like you where I learn these cool concepts, but I get delayed in implementation. Thus I become a barrier to progress and growth inside our company. Why would you or I be a barrier to unleashing the talent of our teams?
- We think we don't have the right foundation laid to start the task.
- We think we can do it faster, quicker, and easier than most people.
- We don't have the right people under us to do the work.
The project is way too complex to hand off and gets stuck between the inbox and trash can.
The Big One……
- We don't trust our people to do it the right way.
The result of this is projects being dragged out unnecessarily. You burn yourself out at both ends of the candle. You get agitated. Results are produced but at a slower than optimal rate. For the classic Type A/Oldest child/High D (Director from the DISC) person like me, it is essential for your team and the impact as a leader to get the heck out of way of your people because you will find brilliance. We recently launched a new website and we continue to refine the site for users. I have a need of a new feature on the site. The new feature requires time to document & define all the elements of our business. Being an agency that books motivational speakers for meetings and events, the team member assigned to the project has not only trolled our site, but has leveraged the internet as a tool to find the relevant terms and concepts to move the project forward at faster pace than the dust being collected on the project requirements. Here is the cool thing. She will be done with the research today. We will then need to build the pages on the site, but the hard work has been done.
One last example, I was looking to fill my lead accounting position. The person we hired has been able to put in place tools that have made our company more efficient and streamlined. I conceived these tools shortly after I took over the ownership of the company 3 ½ years ago. She has not only taken my conceptions and made them a reality, but she has taken us way beyond our simple tool. She has provided a forum for going beyond our own limitations.
As a leader, I must continue to challenge myself to get out of the way of my team, because there is brilliance waiting to shine if I am willing to sit back and smile.
Get out the way…..
6/4/2008
Hooray! Wahoo! Yippie Yie Yay! Our primary season is over. Now that the circus and chaos caused by DNC is over the selection of their candidate for president is complete and the choice of candidates is narrowed down to two of the worst options in my life, I'm reflecting on my trip to Hungary a couple months ago and what I learned. First observation, whoever concocted the DNC process should be fired. What a way to turn your base away from the voting process. Second, now that the true rhetoric is about to begin between the 2 candidates, here are my observations on America and what is important and what should be guarded at all cost:
- We need to do everything in our power to keep the government from confiscating our resources and funds. In the Western or Eastern Europe, Socialism creates a choking effect on the economy. Hungary has a tax burden that exceeds 60% per person in the country. They can't pay back their debt because their economy isn't growing. The country is projected to be the poorest in the European Union within the next 10 years, because the resources that are needed to create growth are being used by the most inefficient organization in an economy, the government.
- We need to keep unleashing the power of the people. I am not talking about protesting for some cause, but the ability for the masses to be owners in our prosperity. The reason our country has stood so strong in the world and has been so stable is because of ownership. In Hungary, it is very difficult for the common man to be owners of local companies. The power is still controlled by a handful of elite people. When ownership is distributed further out, growth and prosperity will happen.
- We do not need universal healthcare/socialized medicine. This issue is the most ludicrous encroachment on intelligence. Thinking that the US is needing to centralize healthcare is insane, our healthcare system is the best in the world and a by a lot. I have a friend that will be in the states this month who lives in Hungary with his two of children. His daughter has been in the US three times this year for medical treatment. They haven't been able to get the quality of care necessary to properly treat two separate injuries even though they sought care in Hungary and Austria. Everywhere except the US, you will see complaints about the quality and access too proper care. Our issue is the cost of care. We need to remove the third party in between the patient and doctor.
- We do not need to cow tow others, but we need to stay the course. We hear in the media on how the reputation of the US has been maligned because of our involvement in Iraq. I think the bigger issue is our current presidents decision to stay the course and make sure our country thwarts and impugns the ability for the free world to be attacked by terrorists. What Europe and our liberal media want us to do is move on, because they can't stomach conflict. We make the stand because of simple belief of a person's right to pursue freedom. When we make the stand it is because no other country will. We look like the bully, because no one will go ahead of us or stand by us.
- We need to continue unleash our full potential. We live in the greatest marketplace of all. We need to continue to encourage innovation that accomplishes both efficiency and longevity. We live in one of the cleanest countries in the world. We need to step back and realize that keeping constrained resources for our people and our land will solve any problems a.k.a. see our energy policy as an example. We have constricted the ability to pursue sources of energy because false premises or science. Let the market drive our resolution and we will see greater expansion.
- We have the best economy and the most resilient economy in the whole world. The biggest observation from my travel abroad was the first hand witness of socialism and communism impugning the full potential of an economy. For the most part, we are able to function to chagrin of the government.
As we get ready to begin the insanity of the general election campaign, I wish I could start a vote for "None of the Above" campaign. Otherwise, I am going to reflect upon which candidate best represents my belief in unleashing the human potential and the free market. 5/17/2008
 What would you do if you were given a short time to live? Would you mope around with a rain cloud over your head? Would live with a new purpose? I just read the lead article in Saturday's (May 3, 2008) Wall Street Journal the Journal Report on Randy Pausch and his last days and last lecture. The story begins with Randy being diagnosed with terminal Pancreatic Cancer and a short time to live. What makes this story touching and emotional is Randy's is a family man with 3 kids under 6 and his wife. Randy was a professor at Carnegie Mellon when he was diagnosed. On a side note the professors at Carnegie Mellon have the opportunity to participate in an exercise called "The Last Lecture." "The Last Lecture" is an opportunity for a professor to address an audience with their final words as if they were about to die. Continuing the story, Randy gave his last lecture challenging the audience to live life in the now, spend time with your loved ones, and make memories that will leave a legacy beyond your death.
When Randy gave his lecture, he had no clue on how this event would change his world. He lecture was videotaped and was put on YouTube and other sites which became viral. The lecture became a strong reminder on what truly matters and what is trivial. Randy had a simple mission is for his last days and that was to make memories and make the transition for his wife and kids as easy as possible. Randy didn't set out to become famous. He set out to challenge his peers and students about leaving a legacy.
This story is extremely touching to me because I lost my father in 2001 to metastatic melanoma and high-school classmate shortly after my dad died lost his battle with brain cancer. Both touched the lives of many. My dad's death has forever affected me. I got a chance to relive and capture the first ½ of my life where my dad had spent his life as a teacher and one the nation's best track and cross-country coaches in High School. His runners spoke to the greatness my dad drew out of them. They spoke on my dad's vision for his team. They spoke on how he built each of them into champions. They spoke about him being able to see greater talent in them than they saw themselves. My dad's legacy lives on in me and my brothers, but he had hundreds of young men and women to be his canvas for greatness
No Matter what we do whether we run a business, work for someone else or coach others. What is the legacy you will leave? My wife and girls will be my judge, but my dad has set me up for with a running chance for a great legacy. Live Large, Live now, and Live your legacy….
If you want to learn more on Randy, click on these links:
Randy's last lecture
Randy's Book www.lastlecture.com
The Last Lecture Book Excerpt
Final Farewell in written by Jeffrey Zaslow in Wall Street Journal May 3, 2008 edition | Edit in Browser | /_layouts/images/icxddoc.gif | /corporate-blog-paul-schmidt/_layouts/formserver.aspx?XsnLocation={ItemUrl}&OpenIn=Browser | 0x0 | 0x1 | FileType | xsn | 255 | | Edit in Browser | /_layouts/images/icxddoc.gif | /corporate-blog-paul-schmidt/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser | 0x0 | 0x1 | ProgId | InfoPath.Document | 255 | | Edit in Browser | /_layouts/images/icxddoc.gif | /corporate-blog-paul-schmidt/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser | 0x0 | 0x1 | ProgId | InfoPath.Document.2 | 255 | | Edit in Browser | /_layouts/images/icxddoc.gif | /corporate-blog-paul-schmidt/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser | 0x0 | 0x1 | ProgId | InfoPath.Document.3 | 255 | | Edit in Browser | /_layouts/images/icxddoc.gif | /corporate-blog-paul-schmidt/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser | 0x0 | 0x1 | ProgId | InfoPath.Document.4 | 255 | | View in Web Browser | /_layouts/images/ichtmxls.gif | /corporate-blog-paul-schmidt/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&DefaultItemOpen=1 | 0x0 | 0x1 | FileType | xlsx | 255 | | View in Web Browser | /_layouts/images/ichtmxls.gif | /corporate-blog-paul-schmidt/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&DefaultItemOpen=1 | 0x0 | 0x1 | FileType | xlsb | 255 | | Snapshot in Excel | /_layouts/images/ewr134.gif | /corporate-blog-paul-schmidt/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&Snapshot=1 | 0x0 | 0x1 | FileType | xlsx | 256 | | Snapshot in Excel | /_layouts/images/ewr134.gif | /corporate-blog-paul-schmidt/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&Snapshot=1 | 0x0 | 0x1 | FileType | xlsb | 256 |
|
|
10/8/2008
I have been looking at the pros and cons of buying a business versus starting up a business from the ground up. In my previous two entries, I discussed the pros to buying and starting up a business. I am going to look at the cons of buying or starting up.
When you look at buying an existing business, you need to understand some of the hidden challenges that could thwart you from achieving your goals.
Have your eyes wide open… No matter how well you do your due diligence you will find things out that you did not expect. One such experience was a project that was committed under the previous was a database project. It was to be the foundation for how we were going to manage our clients and speakers. Our expectation was to complete the project and rollout the new technology. However, we realized after spending some additional money that this project would never see the light of day. Therefore, we killed the project and moved on to another solution. We did not plan on the solution not working or having to find another solution.
Implementing change takes time… When you get the keys to your new venture, you have wild ambitions of making lots of change. However when you sit behind your desk and begin the new journey, you realize quickly that the change you want to make will not happen quickly. You cannot bring in the broom and make wholesale changes without the risk of potentially damaging the business. You will need to make you changes in a structured and systematic way.
Building "buy-in" from your current team takes even more time… When you have been given the keys to your new venture, one of the biggest challenges you will encounter is turning skepticism into buy-ins. Rightfully so, your team members are anxious because they don't know if your plans are going to impact their job. They do not know if you will be better or worse than the current management. It will take time to get the buy-in you need to fuel your growth.
Funding Growth the growth, you want… After taking over your business, growing it is your # 1 priority. Since you inherited a company with ongoing operations and revenue, you need to have an environment that supports the current operations and obligations. The biggest challenge an acquired business has is balancing out growth plans with meeting the operational and capital needs. If you funded your growth through a bank, your access to capital will be dependent upon on profitability. Your bank will want you to guarantee more of your life than they already have. As we seen with the credit crunch caused by the hysteria of D.C. and access to capital becomes limited, your growth plans stop.
Improving your systems is not as easy you hope… One of the biggest assumptions you make when you take over an existing enterprise, is you will be able to improve efficiencies and productivity. I made the same assumption. I was able to change some of my systems, which improved processes or availability to information so we manage the business better. However, I am still being challenged to improve some of our systems or processes that would better be managed by technology. The challenge anybody has with changing systems is you cannot disrupt your business. In addition, you need to be able fund the changes or will the changes create dramatically improve over your current staff. If you have ideas, let me know.
No matter what side of running a business you are on, by having an insight into the upside and downside of running a business you will be able to understand and anticipate changes you need to navigate through. 9/24/2008
As mentioned in the previous blog, I acquired FIVE STAR Motivational Keynote Speakers in 2005. It seems every person I connect with is an entrepreneurial type. Whether it is my friend Bruce who started his business from an idea or to my friend Ben who working on becoming a real estate magnate in the Kansas City area. Being an entrepreneur takes guts, takes drive, takes patience and takes optimism. When I made the leap forward into entrepreneurship, I saw some pluses for starting a business from scratch.
You get to lay the foundation… I believe there is nothing more exhilarating than working with your hands and building something. The same thing can be said for starting a business from the ground up. You get to dream of ideas until you settle on one killer cool idea that will change the whole world. You get to build the business plan. You get to raise capital (beg for money).
You get to create the culture… When you start a business, you set the foundation. You get to hire your founding employees who will help you grow the business. During this time the culture begins with pizza boxes, beer Fridays, company sponsored sodas, ping-pong tables, and Xboxes. You want to set a culture that will cultivate and plant seeds of growth so who hire the best people to that you can get.
You get to sell, sell, sell… When you are a start up, you sell baby sell 24x7. Nothing is as important to a young business as brining revenue in the door. You need sales. Therefore, when you are a young business you have no systems or marketing collateral, you sell on your good looks and charm.
You get to build the systems… When you acquire a business, you inherit the systems that made the business work. Some of the systems are excellent and some need to thrown out with the trash. On the other hand, when start the business, there are no rules or systems in place. You get to undo every system or policy you hated from your employers. The new systems can leverage the best of people or technology.
You get to create products and services… The greatest fun of a start-up is bringing a product or service to life. Creating the concept, building the components to the service, getting to market, and generating revenue from you concept is the rewarding process of moving the journey from start-up to stability.
No matter the phase your business is in, being an entrepreneur is filled with challenges and joys. Enjoy the ride, pass along ideas, and share your successes.
9/10/2008
In 2005, I made the big jump. I officially became an entrepreneur. I bought FIVE STAR Motivational Speakers and Trainers. I set out with my business partner to seek the Holy Grail. I am still on this quest for the Holy Grail, but have made some observations on running a business, comparisons between starting a business from scratch versus acquiring a business (we acquired a business), and essential elements to growing business no matter what stage you started the business.
I am writing four articles that will walk through the pluses and minuses on buying or starting up a business. I will write one final blog outlining some key elements for growing your business. Let's get started….
I have owned FIVE STAR Speakers since February 2005. After getting the keys to the car, we began to examine the business for areas of strength and weakness. When you acquire a business, you inherit the following pros:
- The business is OPERATING….When we acquired FIVE STAR Motivational Speakers, our business was already running. Depending on your stage of entrepreneurial growth having a business up and running, you speed up your development and ability to grow a business.
- The business has a STAFF… When you buy a business, there is a staff that has been working in the business for some period of time. You have a sales team. You have a product or service. You have accounting. You get good people who know your business.
- The business has CUSTOMERS… When you acquire a business, you inherit a customer base which is the most important and hardest to develop. In a startup business, you spend a lot of time and energy convincing someone to do business with you. In an existing business, you spend time retaining the client.
- The business has a BRAND… Another area where business owners spend a tremendous amount of time is building the brand identity of a business. When you begin as a start-up you go through trying to determine what the business is about, what story you are going to communicate, who you are going to reach out to. When you acquire a business, you don't have to start the brand from the beginning.
-
The business has REVENUE… When you take over a business, you get the most important commodity a business needs for sustainability and growth cash. Having sustainable and consistent revenue may afford you the opportunity to self-fund your growth.
It does not matter whether you are a start-up or existing business there are pros and cons to being on either side of the business spectrum. No matter what, running a business is a fun, rewarding, and exhilarating experience. It is worth the risk! 8/25/2008
Wow! Is the only thing you can say as millions of people have been watching Olympic Gold Medalist, Michael Phelps pursuit of 8 Gold Medals? It has been quite a site to watch him reach and exceed the 36-year record of Olympic Gold Medalist, Mark Spitz.
On Friday, I saw something that is very important to note for us leaders. If you watched Michael Phelps 100m Butterfly race, you will know that he was trailing in the race to the Silver Medalist, Milorad Cavic of Serbia. Phelps was charging to the finish while of all thought his chance of matching Mark Spitz record looked in doubt. However, right at the end of the race Michael Phelps took on more strokes while it appeared to me that Milorad Cavic coasted into the finish. No matter what Cavic did during his finish, Phelps continued pushing through the finish.
FIVE STAR Speakers leadership and motivational speakers, Brian Biro demonstrates this point at the end of his keynote speeches when he gathers the members of his audience in circles to break boards. People of all sizes, age, and sex encourage members of their team/company to break through. In order to successfully break the board, Brian emphasizes with the audience the need to look through the board. I believe this is one of the key reasons for Michael Phelps phenomenal success. He sees beyond the finish line, a breakthrough experience.
We need to do the same thing with our teams. We need to help them breakthrough their personal obstacles. We need see our companies’ obstacles and breakthrough. Being a growth organization is not easy requires discipline, work, and an unwavering commitment to win.
8/1/2008
I finished a conversation with one of the mobile phone companies. I was asking questions about my account and things I would like to do. Most of the questions were met with "you'll have to have a 2 year agreement and if you had to cancel there would be a 2 year cancellation agreement." There was no flexibility, no adaption to my needs, and no creativity. It was not the person I was speaking with but inane policies created by people who forgot look at themselves as consumers.
My general take on services like phone service, cable, and other utilities is people do not want to switch. However, they want a fair price without feeling they are taking it in the shorts. These types of companies think they are doing us a service by providing us the right to use their company's products. Another industry that has been undergoing tremendous upheaval is the music industry. They thought they were the creators of the music and not the artist. When Apple came out with iTunes they became a true disruption to the industry because it monetized the electronic download, but also made a service that is fantastically simple, a service that matches the needs of the user, and a service that becomes the core of a person entertainment world. What most people do not know is that to build a service, product, or company that is simple to use takes a tremendous amount of time, requires resources of money and people, under the covers is tremendously complex. Also, a simple system is founded on a rule breaking & disruptive vision. When a simple system works beautifully, it is tremendously disruptive and fuels growth, See iTunes, iPod, iPhone, Toyota, Zappo's, Facebook, etc.
To build simple systems, you must start with the simple assertion that change is occurring. Second, then you need to look at the current methods of delivering the current service. iTunes, iPod, & the iPhone are replacing the need for cd's as it integrates with the mobile society we are a part of. Third, you need to look what you would like to experience, this is wish list and nice to haves. Fourth, you need to take your wish list an break down it down in smaller pieces to build it into bite size pieces. iTunes built their service in chunks starting with music and ending with movies. Fifth, you need to release version 1.0 and begin planning version 2.0. Finally, keep tweaking and improving.
One of the goals FIVE STAR Motivational Speakers has is dramatically change the rules on how people select motivational, business, or keynote speakers & entertainers for their events or meetings. Under discussion are how we are collecting information from the speakers, how we are providing that information to our clients, where they can find that information, and how they might book a leadership speaker in the future. The ultimate goal is an experience that is so simple for our clients and speakers that they do not want to work with anybody else but FIVE STAR Keynote Speakers.
A truth…to build a service or solution that so simple it is not so simple, but well worth it. 7/15/2008
I have heard that people say that the new generation of the workers is significantly different from previous generations. I am not so convinced that is the case. I think the new generation of workers is very similar to the previous two generations. We know the baby boomer generation was born between 1946 to the early 1960's. The Generation X is defined as being born between 1965 and 1979 and Gen Y as 1980 to 1986. Are there similarities? Yes!
Why would I make such a proclamation, because I believe it is true, but you will need to hang with me to learn why? What gives me the ability to make such a claim? I am a founding member of Gen X and hired by members of the baby boomer generation. I am going to break down the similarities, differences, and what all of us workers want from our senior leaderships.
First, every new generation of workers always thought their stuff does not stink and they were wrong. Every generation thought they deserved more than they have accomplished. I thought this coming out of college 20 years ago. I turned down a position to work from the ground up for a business owner who could have been a mentor and assisted the development of my leadership skill to attempt to land with IBM or some other company. I thought working from the ground up was beneath my skill level and accomplishment.
Second, every new generation has benefited by new technology to increase their knowledge and skill sets. They were hiring leadership and managers that had the experience, but maybe not the exposure to new advances in technology that enhanced personal productivity. The new workers believe this to be their greatest strength and one of the reasons for their personal cockiness.
However, technology has created greater gap in today's hiring environment than when I began my pursuit of glory 20 years ago. I was having a conversation with the Chair of my Vistage group, who is 62 years old. The use of technology in 1988 was greater than 1968, but no significant enough to alter the hiring and employment practices. However, technology has dramatically changed how today's workers have been educated and what skills they bring to the work force.
I taught myself to use a pc because I was a bad typist. Today's new workers have grown up using personal computers and other devices to communicate, navigate, and solve problems very rapidly and accurately. I had to use paper to attempt to solve a problem. The new generation of workers is using technology to communicate with their friends. We are now becoming adept on linked in, facebook, and other social networking sites. They are dreaming of how to be Sergey Brin of Google. How do we manage this perplexing scenario?
What should a leader do to manage this new generation of worker? Do you want a hint? It is the same thing from my peer group to the worker in their 60's. We all want to our leaders to be strong. We want our leaders to value our co-workers and ourselves. We want our leaders to develop us. We want our leaders to respect us. The final requirement we expect from our leaders is to provide coverage from senior management.
If we as leaders take care of our workers regardless of the generation they were born in, these workers will be loyal, productive, and enthused about their work. However, if we they do not the Gen Y worker will move on.
FIVE STAR Motivational Speakers work with many business or leadership speakers & experts who speak on managing the new generation. Jim Welch, Jason Dorsey, Cheryl Cran, J.P. Pawliw-Fry, and others are working with corporations around the country on how to hire, communicate, manage, and lead this new generation of workers.
P.S. If you are interested in learning more about how to handle the new generation of worker, on July 29, 2008 FIVE STAR Leadership Speakers is holding the Big Disconnect with Motivational Speaker and Leadership Speaker J.P. Pawliw-Fry and Leadership Speaker Bill Benjamin. 6/25/2008
Over the past three months since we launched our new website, Lori Turec, Steve Gardner and I have had the great opportunity of interviewing some of the top professional speakers who are leading experts covering topics such as Sales, Business, Leadership, and Health & Wellness. You gain insight from our experts/speakers who have personal knowledge of such great organizations Hallmark Cards, Starbuck's & Ritz Carlton. Our business speakers/experts have worked have grown companies, created barriers of entry from competition, inspired teams to achieve greatness. I encourage you listen to all of the interviews. Download them to your IPod or computer to enjoyment. If you want more information or would like to hire an expert for you company contact FIVE STAR Motivational & Business Speakers.
Here is a list of the people we have interviewed so far and a link to the interview.
|
Speaker, Expert, and/or Author |
Expert Profile |
Topics |
Link to Interview |
Buy The Latest Book |
|
Barry Moltz |
Small Business, Entrepreneur, Sales Speaker & Author of Crazy & Bounce |
Small Business Growth, Entrepreneurism, Business Growth, Innovation, Leadership, Change, Resiliency, Business Strategy |
Listen to Business, Leadership, Entrepreneur Speaker, Barry Moltz |
|
|
Chin-Ning Chu |
International, Women, Business, Leadership Speaker, Author, & Authority on Sun Tzu's Art of War |
Leadership, Sun Tzu, Art of war, Business, Women Leadership Issues, Business Strategy, International Business, China, International Marketing, Business Development, Leadership Strategy & Development |
Listen to International, Women, Leadership Speaker & Author Chin-Ning Chu's Interview |
|
|
Dan Buettner |
Longevity Expert, National Geographic Writer, Adventurer & Author of The Blue Zones |
Health & Wellness, Adventurer, Longevity Expert, Aging, Personal Improvement |
Listen to Motivational, Health & Wellness, Adventurer, Speaker, Author Dan Buettner |
|
|
Dr. Oren Harari |
Business, Leadership Speaker & Author discusses the essential tools that will help chief executives, business owners, and senior leadership break from the copy cat economy. |
Business, Leadership, Competitive Advantage, Corporate Strategy, Business Strategy, Consulting, Innovation, Economic Resiliency |
Listen To Business, Leadership Speaker & Author, Oren Harari |
|
|
Jason Dorsey |
The "Gen Y" Guy, Motivational Speaker, Generation Y Expert, Entrepreneur, & Best-Selling Author |
Generation Y, Leadership, Managing Across Generation, Entrepreneurism, |
Listen to Motivational, Generational, Business, Leadership Speaker, Jason Dorsey |
|
|
Jaynie Smith |
Business, Marketing, Leadership Speaker, Consultant, Vistage International Chair, Author of Creating Competitive Advantage |
Business, Marketing, Leadership, Competitive Advantage, Sales, Women Leadership, Employee Recruiting, Employee Retention |
Listen to Business, Marketing, Women, Leadership Speaker & Author Jaynie Smith |
|
| | | |
