Business Lessons

How can we make “Better Mistakes Tomorrow? Using a simple 5-step approach, our mistakes become fantastic platforms for growth. Yes they may be painful, but in the long run there is wisdom, knowledge and growth in our mistakes.

If you want to increase your sales, focus on customer pain. Benefits of your products and needs of the customer are important. However buy decisions will first focus on customer pain. The customer may not even recognize the underlying reason that select your product or service. #sales #salestechniques #CPA #CEO #vpsales #coaching #salescoaching

PART 4 - 4 Essential Considerations Before Going into Business! Part 1 – Why be your own boss? Part 2 – Ideas and dreams. Part 3 – Risk. Part 4 – Your significant Other. These items precede your business plan, entity creation, and business structure. This video is the 4th and final consideration #entrepreneur #startup #startupadvice #coaching #boss #CFO #cpa #franchisee #franchise

PART 3 - 4 Essential Considerations Before Going into Business! Part 1 – Why be your own boss? Part 2 – Ideas and dreams. Part 3 – Risk. Part 4 – Your significant Other. These items precede your business plan, entity creation, and business structure. This video is the 2nd consideration #entrepreneur #startup #startupadvice #coaching #boss #CFO #cpa #franchisee #franchise

PART 2 - 4 Essential Considerations Before Going into Business! Part 1 – Why be your own boss? Part 2 – Ideas and dreams. Part 3 – Risk. Part 4 – Your significant Other. These items precede your business plan, entity creation, and business structure. This video is the 2nd consideration #entrepreneur #startup #startupadvice #coaching #boss #CFO #cpa #franchisee

Recall the idiom, "Practice Makes Perfect?" In society, we can see our sports heroes, political leaders and business leaders blatantly lie. It typically is a habit, refined over the years, and practiced regularly. Avoid it like the plague. #ethics #lying #cpas #controllers #cfos #leaders

4 Essential Considerations Before Going into Business! Part 1 – Why be your own boss? Part 2 – Ideas and dreams. Part 3 – Risk. Part 4 – Your significant Other. These items precede your business plan, entity creation, and business structure. This video is the 1st consideration #entrepreneur #startup #startupadvice #coaching #boss

Registration is Open! Please join me on December 28 for your Year-end CPE. Please visit https://thorstenconsulting.com/webcasts to Register. Year-end CPE for CPAs, Controllers, CFOs, Accountants, Accounting Professionals "Controller/CFO Strategic Outlook-2023," or "Data and Predictive Analytics / Business Intelligence." You can also register for both at the same time.

Entrepreneurs must be comfortable with risk and uncertainty. Choosing the entrepreneurial path is not for the faint-hearted. In the following image note the number of businesses that started in any given year and the corresponding percentage of businesses that are still in existence as of March 2017. The Bureau of Labor and Statistics is the source of the data.



This data shows that:

Only 80% of the businesses make it beyond their initial year of existence.

Slightly more than 69% of businesses continue through their second year of operation.

Approximately 50% of businesses only make it to the fifth year of operation.

Undertaking the entrepreneurial path is not easy. The odds of failure may be unacceptable for would-be entrepreneurs. It is imperative that prior to starting a business, an entrepreneur must be diligent about understanding: their vision, their product or service offering, the competitive market, potential risks (both SWOT and PESTLE analysis), the business' financial needs including cash flow, ramp up timeframe, business demand for time commitment beyond 40 hour work weeks and most importantly the impact on their personal life.

©2018 Thorsten Consulting Group, Inc.

Today's Controller or CFO must Focus on the evolving nature of their role. This evolving role has four major points of emphasis. They are:

1. Gold prospector.

2. Casting agent.

3. Team player.

4. Meteorologist.

The Controller or CFO as a gold prospector must find ways to be strategic. They must identify the value to the organization beyond traditional accounting functions, accounting process improvement or efficiencies. This individual must also be a casting agent. Every company will acknowledge that their most valuable asset is their people. Therefore the Controller or CFO must be excellent in recruiting, developing and retaining staff. It is imperative that the Controller or CFO as a team player practice servant leadership. When any support service department such as accounting, human resources, or information technology, desires to participate in the Strategic Planning process of the organization, they must practice servant leadership. When support departments complain about not having a voice in the direction of the company it is usually a result of not understanding their role in the organization as well as their inability to be a servant of operations. Finally, a Controller or CFO must be a meteorologist. They must be able to tell what happened to the organization regarding traditional Financial results. They must also be able to predict or forecast what is going to happen to the organization in the future. This not only includes tracking and forecasting the organization results but also includes interpreting the business environment in which the company operates. A Controller or CFO that understands how economic trends impact the organization will always be valued. ©2017 Thorsten Consulting Group, Inc.

The ability to accurately forecast the economy and the markets is similar to the search for the Holy Grail. This chart shows the previous two recessions as contrasted with the Industrial Production Statistics (G17) and the respective 3 and 12-month averages. Note that the crossover at the end of 2015 is very similar to the crossovers that occurred just before the onset of the last two recessions. I believe that this does not bode well for the rest of our economy. Six months from now, it will be easy to see in retrospect. The real challenge will be navigating through those six months.

When making your wedding vows, the idea of having an affair or mistress is not at the forefront of your thoughts. I will also suggest that many entrepreneurs have never considered being unfaithful to their spouse. However, the “love affair” or romance that an entrepreneur can have with their business can result in misplaced priorities.

Consider Charles Dickens’ literary anti-hero Ebenezer Scrooge. In a very sad and painful scene, Belle declares that she has been replaced by another idol.

For again Scrooge saw himself. He was older now; a man in the prime of life. His face had not the harsh and rigid lines of later years; but it had begun to wear the signs of care and avarice. There was an eager, greedy, restless motion in the eye, which showed the passion that had taken root, and where the shadow of the growing tree would fall.
He was not alone, but sat by the side of a fair young girl in a mourning-dress: in whose eyes there were tears, which sparkled in the light that shone out of the Ghost of Christmas Past.
“It matters little,” she said, softly. “To you, very little. Another idol has displaced me; and if it can cheer and comfort you in time to come, as I would have tried to do, I have no just cause to grieve.”
“What Idol has displaced you?” he rejoined.
“A golden one.”
“This is the even-handed dealing of the world!” he said. “There is nothing on which it is so hard as poverty; and there is nothing it professes to condemn with such severity as the pursuit of wealth!”
“You fear the world too much,” she answered, gently. “All your other hopes have merged into the hope of being beyond the chance of its sordid reproach. I have seen your nobler aspirations fall off one by one, until the master-passion, Gain, engrosses you. Have I not?”
“What then?” he retorted. “Even if I have grown so much wiser, what then? I am not changed towards you.”
She shook her head.
“Am I?”
“Our contract is an old one. It was made when we were both poor and content to be so, until, in good season, we could improve our worldly fortune by our patient industry. You are changed. When it was made, you were another man.”
“I was a boy,” he said impatiently.
“Your own feeling tells you that you were not what you are,” she returned. “I am. That which promised happiness when we were one in heart, is fraught with misery now that we are two. How often and how keenly I have thought of this, I will not say. It is enough that I have thought of it, and can release you.”
“Have I ever sought release?”
“In words. No. Never.”
“In what, then?”
“In a changed nature; in an altered spirit; in another atmosphere of life; another Hope as its great end. In everything that made my love of any worth or value in your sight. If this had never been between us,” said the girl, looking mildly, but with steadiness, upon him; “tell me, would you seek me out and try to win me now? Ah, no!”
He seemed to yield to the justice of this supposition, in spite of himself. But he said with a struggle, “You think not.”
“I would gladly think otherwise if I could,” she answered, “Heaven knows! When I have learned a Truth like this, I know how strong and irresistible it must be. But if you were free to-day, to-morrow, yesterday, can even I believe that you would choose a dowerless girl—you who, in your very confidence with her, weigh everything by Gain: or, choosing her, if for a moment you were false enough to your one guiding principle to do so, do I not know that your repentance and regret would surely follow? I do; and I release you. With a full heart, for the love of him you once were.”
He was about to speak; but with her head turned from him, she resumed.
“You may—the memory of what is past half makes me hope you will—have pain in this. A very, very brief time, and you will dismiss the recollection of it, gladly, as an unprofitable dream, from which it happened well that you awoke. May you be happy in the life you have chosen!”
She left him, and they parted. (1)

Entrepreneurs may forget the main reasons that they pursued being in business for themselves. Stephen Covey’s 2nd habit of highly successful people is, “Begin with the end in mind.” The earthly end of all of us leads to only one place. I have not seen a tombstone that showed the last 5 years of financial statements or cash available in the bank. Nor have eulogies focused on the rapid growth of the business or market share obtained. Tombstones discuss family. Eulogies will include business; however, they too are focused on family. Therefore, “beginning with the end in mind” focuses the entrepreneur on the importance of family and what trade-offs are acceptable and which ones are not.

As in Dickens’ text above, the entrepreneur must be on guard when he/she declares that they are running the business and making sacrifices for the benefit of the family. This is a dangerous and narrow path. At some point, the entrepreneur becomes so self-absorbed that their end goal changes unwittingly.
What should an entrepreneur do?

1. “Begin with the end in mind.” Write out the reasons for being an entrepreneur.
2. Make sure that family is part of your daily thought processes and priorities.
3. Commit to being at significant family events – this also means commit to NOT MISSING family events. By the way, your family should tell you what is important.
4. Do not bully those you love into justifying the reasons that the business becomes your mistress.

I can only wish that all of us “be happy in the life you have chosen!”

About the Author: Jim Lindell, CPA, CSP, CGMA is a best-selling author and speaker. Jim is a TEC Chairman (The Executive Committee), which is the Granddaddy of CEO coaching organizations and with its’ Vistage Affiliation is the World’s largest peer group for CEOs and Senior Executives. Jim has been Coaching CEOs through TEC since 2001. His website is www.thorstenconsulting.com.

(c)2015 Jim Lindell and Thorsten Consulting Group, Inc.
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(1) Excerpt from Dickens - Dickens, Charles. A Christmas Carol, n.d. http://www.gutenberg.org/files/46/46-h/46-h.htm

During the 1950s and 1960s, being left handed was seen as a disadvantage. Great efforts were taken by teachers and parents to train students to use their right hand as opposed to their left hand for writing. As a consequence, many kids were forced to focus on hand writing techniques as opposed to learning techniques.

Unfortunately, many managers and coaches still try to force “left handed people to work as if they were right handed.” This metaphor illustrates how people are trained with specific techniques that may not be effective for that individual. Well-meaning coaches and managers may be too narrow in their approach to training or philosophy about business. Unfortunately, their technique or approach may be in conflict with the skills, intelligence or personality type of the individual being trained, managed or coached.

There is a significant danger when the coaching or training approach is “one size fits all.” Let’s consider this example as it applies to the role of a coach and their respective student, customer or employee.

Since coaching focuses on the coachee, let us begin with the left side of the diagram representing the individual that is to receive the coaching service, counsel or advice. There are three main levels of coaching services that an individual can receive:

1. Short term – Short term coaching is usually directed in one of the following areas:

a. The individual has a weakness that needs to be improved.

b. The individual has a serious issue, possibly resulting from disciplinary action, and behavioral change must take place.

2. Intermediate – Intermediate coaching is usually provided when there is a lack of knowledge. This knowledge is necessary for the person to advance to a different level in the organization.

3. Long-term – Long-term coaching is usually directed at individuals that are perpetual learners and are always seeking ways to grow themselves, the organization, and those around them.

In essence, these three levels represent the “needs” of an individual that is to be coached.

The right side of the graph represents the coach’s role. Note that there are two extremely significant principles that apply to a coach. The first is that a coach cannot allow their self-interest to get in the way of helping another individual. The second principle is that the coach should foster independence in the individual as opposed to dependence. Unless an individual is seeking a long-term learning relationship, most coaching assignments should have a specific task with a specific timeframe. The only type of ongoing coaching relationship should be a life-long learning relationship. Beware of the coach that is hired for a short term need who insists on a long-term relationship. The coach may be putting their self-interest ahead of the needs of the individual.

There are many skills a coach should possess including:

Facilitation skills

Counseling skills

Solid experience

Understanding of interpersonal skills and personality profiles

Ability to recognize learning skills of the person that they’re working with

Ability to recognize intelligence types

Desire and evidence of their continued learning.

Now we can reconsider the comparison of left handed and right handed people. A coach that only uses one approach without recognizing the limitations of that approach is not serving his customers well. Failing to understand the needs and styles of the individual being coached typically leads to short and unfulfilled coaching relationships. One of the main reasons coaching assignments do not work out well is that the coachee and the coach are not compatible. A successful coach will be flexible and capable of working in a variety of styles. The greatest of coaches will exhibit the most flexibility in working with a variety of people.

Therefore, it is important for coaches to evaluate personality types and intelligence types to determine how their skills must be altered to bring out the best in the individual.

About the Author: Jim Lindell, CPA, CSP, CGMA is a best-selling author and speaker. Jim is a TEC Chairman (The Executive Committee), which is the Granddaddy of CEO coaching organizations and with its’ Vistage Affiliation is the World’s largest peer group for CEOs and Senior Executives. Jim has been Coaching CEOs through TEC since 2001. His website is www.thorstenconsulting.com. Jim’s latest book, “Controller as Business Manager” is available from the AICPA at http://bit.ly/1zGOYmz.

I remember a story that was shared by a pastor. He said that "if giving a sermon and the argument is weak, pound loudly on the pulpit." When it comes to the economy, the stock market, the unemployment, the student loan debt, the extended automobile terms and interest rates - pundits are pounding loudly all around.