Zen and the Art of Business

In case you hadn't noticed the Chinese know a thing or two about business and have been pretty successful at it for a few thousand years. The communist revolution put the brakes on entrepreneurship for a while, but you can't keep a good thing down and the leaders of China know it. Entrepreneurship is the new religion in China again capitalism is not a dirty word any more.

I thought you might like to look at a few Chinese proverbs and how they are applicable to business. You could do a lot worse that incorporating some of this Chinese Zen philosophy in how you lead your own business, so read on.......

1. “In every crisis, there is opportunity.”

Most entrepreneurial ventures arise from a solving a problem. If you are faced with a problem, craft a solution and sell that solution to others. As an interesting side note, it’s a common misconception that the word crisis and opportunity mean the same thing in the ancient Chinese language. This misconception initially gained momentum when John F. Kennedy incorrectly cited it in a speech in 1959. (source: smallbusiness411.org)

2. “Sow a thought, reap an action; sow an action, reap a habit; sow a habit, reap a character; sow a character, reap a destiny.”

Entrepreneurship starts with an idea and ends with a destiny. You craft your destiny with your actions, habits and character. You make your destiny, it doesn’t make you.

3. “The best time to plant a tree was 20 years ago. The second best time is now.”

Aside from 20 years ago, there is no better time to start a business than today.

4. “If you want one year of prosperity, grow grain. If you want ten years of prosperity, grow trees. If you want one hundred years of prosperity, grow people.”

The goal of every entrepreneur should be to start a business and find capable people to run the business so that they don’t have to.

5. “A bad workman blames his tools.”

A bad entrepreneur places blame on someone or something else when things go bad. First and foremost, you should hold yourself accountable for a negative outcome of your business.

6. “A closed mind is like a closed book; just a block of wood.”

As an entrepreneur you always have to be open to new opportunities. If you aren’t actively looking for new ways to make your business more innovative, you won’t be very successful as an entrepreneur.

7. “A fall into a ditch makes you wiser.”

When bad things happen, a good entrepreneur learns from them.

8. “A fly before his own eye is bigger than an elephant in the next field.”

When you focus only on the opportunities that are right in front of you, you might miss the larger ones that take effort to find.

9. “A jade stone is useless before it is processed; a man is good-for-nothing until he is educated.”

A strong education is often the foundation of a strong business. The more you know about entrepreneurship, the more equipped you will be to face its various challenges.

10. “A journey of a thousand miles begins with a single step.”

Every entrepreneur in the history of the world started their business with a single action.

11. “A person who says it cannot be done should not interrupt the man doing it.”

As an entrepreneur, you will undoubtedly encounter people who will doubt you. Don’t let those people get in your way. Instead, use their doubt as motivation.

12. “A single conversation with a wise man is better than ten years of study.”

You can learn a lot from talking to experienced entrepreneurs. They have been through the process and can teach you more than most any book.

13. “All cats love fish but fear to wet their paws.”

All people love to make money but few people pursue entrepreneurship because it’s full of challenges and uncomfortable risks.

14. “Cheap things are not good, good things are not cheap.”

As a small business owner, always focus on providing quality.

15. “Customers are jade; merchandise is grass.”

What good is a business without customers? You should value your customers more than any other aspect of your business.

16. “Defeat isn’t bitter if you don’t swallow it.”

You will encounter setbacks, but don’t let those setbacks defeat you.

17. “Defer not till to-morrow what may be done to-day.”

One of the most challenging things for an entrepreneur is simply getting things done. According to numerous entrepreneurs I have spoken with, procrastination is one of the largest causes of failure in new businesses.

18. “Don’t count your chickens before they are hatched.”

Though a good entrepreneur isn’t afraid to take risks, never rely too heavily on projections of profitability, success in a certain market, etc. A good entrepreneur always considers, and has a plan for, the worst-case scenario.

19. “Don’t stand by the water and long for fish; go home and weave a net. “

Instead of complaining about how you aren’t making much money, find new ways to earn it.

20. “Easy to run downhill, much puffing to run up.”

It’s easy to run a business when the going is good, but the true test of an entrepreneur is how he or she behaves when faced with challenges. As the current economic climate makes overwhelmingly clear, every market has its ups and downs.

21. “Failing to plan is planning to fail.”

This one is so clear, it requires no explanation.

22. “Falling hurts least those who fly low.”

The less amount of money you spend, the less it will hurt if your business fails. It’s common for entrepreneurs to bootstrap the initial costs of their business. Bootstrapping means doing whatever you can to spend as little as possible.

23. “If a thing’s worth doing, it’s worth doing well.”

If you’re going to put effort into starting a business, then make sure you put 100% effort into every aspect of your business.

24. “If you get up one more time than you fall you will make it through. “

When you get knocked down, get back up. If you don’t get back up, your business will fail.

25. “If you pay peanuts, you get monkeys.”

When you get to the point of hiring employees; the more you pay, the higher quality effort you will receive.

26. “It’s as difficult to be rich without bragging as it is to be poor without complaining.”

As an entrepreneur, it’s important to remain humble, especially when you’re rich. Humility is difficult to maintain when things are going well.

27. “Learning is a treasure that will follow its owner everywhere.”

Learn from your business and it’s something you will never lose.

28. “Make happy those who are near, and those who are far will come. “

If you make your customers happy, they will talk and those they talk to may become new customers.

29. “Patience is a virtue.”

Having patience with your business is essential to your success. Very few businesses are profitable in their first year.

30. “Rich not gaudy.”

When you become rich, don’t become gaudy, or tastelessly flashy.

31. “Teachers open the door. You enter by yourself.”

Being taught something will only get you so far. You must independently apply that learning to become successful.

32. “The diamond cannot be polished without friction, nor the man perfected without trials.”

You will encounter trials and tribulations as a business owner, but these trials and tribulations will mold you into a better entrepreneur.

33. “The emperor is rich, but he cannot buy one extra year.”

Your business and the money it generates are not the most important things in your life.

34. “The loftiest towers rise from the ground. “

Even the most successful businesses in the world started with the conception and implementation of an idea.

35. “The palest ink is better than the best memory.”

When you conceive an idea on how to improve your business, write it down!

36. “There are two perfectly good men, one dead, and the other unborn.”

No one is perfect. Always be open to learning from other people.

37. “To open a shop is easy, to keep it open is an art.”

Starting a business is simple in comparison to keeping it.

38. “We all like lamb; each has a different way of cooking it.”

Entrepreneurship is like an art: there is not always a right and wrong way of pursuing your business goals. Let your personal taste and style as an entrepreneur be your strength.

39. “Who is not satisfied with himself will grow; who is not sure of his own correctness will learn many things.”

Remember you don’t know everything. Actively seek out advice and information, and you will learn.

40. “A smile will gain you ten more years of life.”

What’s the point in owning a business if you’re not having fun with it? If your business doesn’t make you smile, then it’s the wrong business for you.

Need More Time in Your Day?

(Adapted from an article by Trent Hamm, March 2009)

If one of your New Year resolutions was to spend more time doing _______ , (you fill in the blank) just how will you find the extra time to achieve it? One way is to stop doing some other activity, but that is not always practical as it may be important and necessary for the successful running of your business.

Another way is to get better organized and find some “extra” time in your day to use as you see fit. But how do you do this? There are many books and systems around on time management. Some are good and some are not. Rather than investing a lot in new software, try a few of these no cost ideas, implement them CONSISTENTLY, and together they should enable you to find some of that extra time you need to help achieve your New Year resolution.

1. Avoid multitasking like the plague.
Research has shown that multitasking has a similar level of effectiveness to someone smoking marijuana (without the benefit of feeling good). Switching from one task to another makes it difficult to tune out distractions and can cause mental blocks that can slow down your progress

Focus on only one task at a time. Pick the most important one and let the rest slide. Work on that one task in bursts – at most an hour in length. Then stop and catch up on any incoming messages you need to deal with, take a break, and so on. To optimise your results, bunch similar activities together and block out dedicated time in your calendar to complete them. If you have client calls to make, set aside a regular time each week in your diary, then commit and follow through, without getting distracted by any other activity.

2. Keep a notebook with you and write down your ideas.
We all have lots of good ideas float through our heads throughout the day: things we need to do, ideas for future directions, facts we need to look up. Many people try to just trap these in their conscious mind until they can do them, but doing that makes it harder to concentrate and really bear down on an important task.

Instead of doing this, keep a pocket notebook with you at all times to jot down any small things that pop into your head. This enables you to quickly clear the mind and return your focus to the (more important) matter in hand.

3. Process documents/mail/ideas once or twice a day.
Take some sort of action on all of those stored-up items – toss them in the trash, file them away, take care of the task, pencil it in on your calendar, or so on. I have a small sticker on my monitor saying R.A.F.T. This reminds me to handle a piece of paper only once and do something with it: get RID of it (give it to someone else), ACTION it, FILE it or TOSS it in the bin.

The goal needs to be eliminating everything in your “inbox”. You should strive to get to “empty” once a day, with everything in there dealt with in some capacity. If you let it build up, it will grow out of control.

4. Keep a project list – and focus on it at least an hour a day.

Keep a “to-do” list that is a maximum of thirty items long for projects that are perhaps not urgent but you would like to get done. Order it by the date you thought of it so that the oldest one is always at the top of the list. If the list has thirty projects on it and you want to add another one, you need to decide on which one to delete. It probably will be the oldest one as it will be the project you are least interested in.

5. Stop procrastinating

Procrastination in itself isn't bad. What's bad is what happens to whatever you're procrastinating about when you do it. Problems grow. Misunderstandings multiply. Rubbish piles up. Dealing with things when they're smaller not only saves time but makes it much easier on yourself too.

6. Learn what your personal time wasters are and eliminate them. Personally, I can easily spend forty-five minutes browsing the internet in the morning checking out the Herald online, Metservice and other “essential” information sites. Guess what? It will make NO positive difference to my business and I will eliminate it. Once you know what your favourite personal time wasters are, it's usually easy to come up with a strategy to stop doing them. Can’t decide on what to wear in the morning? Decide the night before and lay it out.

5. Keep a PRIORITIZED to-do list for each day.
Keep a to-do list and review it each day. Decide on the 5 MOST IMPORTANT things that need to be done and then rank them from most important to least. As a guide to deciding what to start on use the self-question, “if I could only work on ONE item today, what would that item be?” This will be your #1 item. Start on it and try to finish it (or reach a logical stopping point) before moving on to the next item.

The most important task may not be the most fun or the easiest. In fact it may be the worst one and one that you would prefer to avoid. Suck it up and as Brian Tracy suggests, Eat That Frog! Look at your lowest pay-off activities and consider delegating to someone else, or contracting these out. Consider a bookkeeper for example to process your day-to-day accounts.

6. Check email only twice a day.
Email is almost always a major time sink. It’s rarely a simple matter of just reading messages. Many messages demand responses, and some messages demand follow-up tasks. Leaving that email window open throughout the day ensures only one thing – your concentration will be interrupted constantly by messages that come in that need responses.

The solution is to simply close the program. Open it only two times a day or so and do an email session, where you deal with everything in your inbox. Then, close the program completely (including notifications) and move onto something else. If it’s truly urgent, someone will come directly to you, so don’t worry about missing out on something vital.

7. Create Procedures and Check Lists

Document the specific way you do things and begin to standardise your processes. Creating ‘How-To’ guides for your core activities will make it easier for you to tweak them over time and hand them over to someone else. Plus, by using your processes, you can start to repeat your successes time after time.

8. Automate Actions

Creating ‘set and forget’ systems will save you buckets of time. Assess each activity to determine how you could put it on autopilot. For example, when people sign up to your online newsletter, you can automate the thank you message they receive. You could set up a series of autoresponder messages to provide clients with information at pre-determined intervals. Or create a FAQ page on your website to direct people to, rather than repeating yourself.

9. Take lots of microbreaks (or at least switch to very different tasks regularly).
One of the biggest enemies in a workday is lethargy. It’s easy to find yourself in a low-energy period, sitting there having trouble keeping your eyes open or concentrating on anything. Once you’re there, it’s often very hard to pull yourself out of it – you’re running on low energy for the rest of the day, even if you do rebound a bit.

The best way to combat it is to never let your energy level get that low. That means not sitting at your desk or your work area for long periods. Get up and move on a regular basis. Instead of eating a big, heavy lunch, eat smaller snacks throughout the day. Stretch. Drink water. Do this as often as you can – bookend task sessions with a microbreak where you do these things.

10. Become fitter.
I know that I perform better and can get through work faster if I am feeling good and physically fitter. Do not ignore your personal well-being and schedule some time (ie. book an appointment with yourself in your diary) every day for some physical exercise.

A bit of short term pain will have tremendous long term gain, both for your work and your personal life.

There's a saying, "It's better to light a candle than curse the darkness". The good news is that these strategies to leverage your time and get more done in less time will help you light the candle in your business and help lower your stress. For help in implementing any of these strategies contact me at andyburrows@iconbusinesssolutions.com or phone me on 09 912 1901 for a no obligation chat and further information.

Are Business Plans a Waste of Time?

As a business advisor it may seem strange that I should ask that question at all. Don’t all advisors/mentors/coaches stress the need to have a business plan and say things like, “fail to plan is a plan to fail”?

In my opinion it comes down to the type of business plan that is produced and the length of time it takes to produce it. Many business plans ARE a waste of time because they are too wordy, too “corporate”, don’t motivate staff and are not connected to the day-to-day operations of the business. I read an article recently on writing a business plan (unfortunately I can’t remember where) and it said that a business plan could take between 400 and 500 hours to produce. ARE YOU KIDDING! Who in small business ownership world has a spare 500 hours to produce a business plan, and probably one that no one will look at again for another year! Get real. That would be a HUGE waste of time.

What is of real value is the PLANNING PROCESS involved in putting a business plan together. It’s all about the journey, rather than the destination, in my opinion. I do encourage business owners to take some time (not 500 hours however) and examine where their business is at, what went right and wrong over the past 12 months (a SWOT analysis can help here), set some realistic goals for the next 12 months and think about the strategies, budget and tactics that will be required to achieve those goals. Then regularly review progress towards their goals using a combination of monthly reporting and quarterly themes that aligns people’s daily activities.

The output from this process need not be a 50 page document that is put on a shelf to gather dust, but a summary on a couple of pages that remains a living, working document on a constant basis. There are a million planning templates out there that you can use to base your own planning process off. Most unfortunately focus on the end document and tend to result in a long and dusty plan that fails to inspire. One model that I have used with success in several businesses is the 1-page plan (actually 2 if you use A4 instead of A3) developed by Verne Harnish of Gazelles.com.

It takes a bit of time and effort to develop the foundation part, but once you have done that, you can quickly update it on a quarterly and annual basis to provide a short but clear path to guide your business into the future. Here is the link to download a copy of Gazelle’s classic 1-page plan and then you can either go to their website to download a guide on completing it, buy his book, The Rockefeller Habits, that also explains it, or book a planning session with me to fast track you to success in 2012.

Andy Burrows

Business Advisor Phone 09 912-1901

Create the Right Environment in Your Company

An owner/manager is a motivator and hence you need to ensure that you, and any supervisors or managers reporting to you, are motivating your staff to come to work every day.

To generate job satisfaction and an environment that will stimulate and encourage your team to attend work you will need to assess and apply the following where possible;

1. Encourage internal promotion and select new recruits with care. Hire for attitude and cultural fit first, skills second.

2. Recognise and give regular feedback to your employees. Understand the importance of their work and show your appreciation.

3. Ensure people are paid fairly and competitively. Remember under-paying staff does de-motivate them and they should be rewarded accordingly.

4. Provide acceptable working conditions for all staff. Where possible implement new systems and technology and give your staff as many facilities as possible.

5. Always have regular meetings that identify work in progress. This can also be an ideal time to have group discussions and input for certain business activities or decisions.

6. Set and revisit objectives or targets. These must be clear, concise, measurable and regularly assessed to ensure that everyone is on track.

7. Measure individual staff member’s contribution.

8. Set high standards. These may require people to take an extra step or go out side of their boundaries, however this is what it is meant to do. You want your team to be able to take calculated risks and grow with your business.

9. Never make promises. You shouldn’t make promises if your intentions are otherwise. Offering rewards and then retracting them will make your staff angry and lack confidence in you.

10. Be honest with your staff. If you have bad news tell them as it is better coming from you instead of anyone else. Honesty also relates to good news. Praise them where you can.

11. You must set an example to your staff as if you imply a bad or unprofessional impression then they will assume that this is the standard the behaviour will be accepted.

12. Measure absenteeism and staff turnover. This will be clear indicator if staff are finding their positions difficult or unsatisfying and will present a pattern of what the company must do to ensure that the position is filled should staff leave.

Having a fair, diplomatic and structured environment will keep your employees active and enjoying their jobs. By simply applying the techniques above you will be able to have a more efficient and accepting work environment for your employees to attend to every day.

For help in building the right environment and culture in your company, Contact Me by email or visit my website for other articles and resources - click here: Business coaching

Andy Burrows - Business Advisor

DO Sweat the Small Stuff

As the old adage goes, “perception is reality”. In the absence of facts or prior knowledge, what a person perceives about a business becomes reality in their mind, even if it not actually correct.

Business owners should keep this in mind when hiring and training staff, and in all their future interactions with customers. It can be particularly important when the owner is focused on the technical delivery of the core business function and becomes detached from thinking from his customers’ mindset. Many customers have a limited understanding of the technical aspects of what the business actually does because they do not have the specific knowledge or skills of the trade, or actually care about such things for that matter. What they DO understand however, is how the business and staff PRESENT to them, and often in ways totally unrelated to the core function of the business. A restaurant may have the best award winning food and the top chefs in the country, but if the toilets are not clean many customers won’t come back as they assume the kitchen and chefs are in a similar state.

These are things that Paddy Lund, a famous dentist in Australia, calls Critical Non-Essentials. Aspects of business that have little or no bearing on the core service delivery process, but are just as important, BECAUSE THE CLIENT UNDERSTANDS THEM. Ignore them and you risk your business suffering, even if you are the best at what you do and have the best products or services on offer.

The famous management guru, Tom Peter, reported another example of this phenomenon in action. A study of 140 former patients from 225 U.S. hospitals revealed that of the top 15 factors determining “patient satisfaction,” none—NONE!—was related “to the patient’s health outcome.” The two biggest contributing factors were “staff interaction [with the patient]” and hospital “employee satisfaction.” The implications are clear: An obsession with the “simple” human factors pays off—and, furthermore, these sorts of reactions grow rather than diminish in the patient’s recollection with the passage of time. The rallying cry of one successful hospital, derivative of these findings, is their “kindness is free” strategy. Listening to patients or answering their questions was encouraged, and by-the-way costs nothing. Being non-responsive to patient needs or requests for information results in them being angrier and less co-operative, thus increasing the time and therefore cost of interacting with them. Being nice pays off.

What are the Critical Non-Essentials in your business? Have you ever taken the time to consider this? If not, I suggest you contact me and we can review your business and develop a customer orientation program that will help you build greater customer satisfaction, more referrals and lead to better profits. Either email me direct andyburrows@iconbusinesssolutions.com or visit my website here: Coaching in Business to find out more about what I do with the owners of private businesses.

Confessions of a Micro-Manager

I know that modern management books and HR people at seminars tell you that you should hand duties to your staff and let them get on with it. Great in theory, but I hear from a lot of business owners that it doesn’t work. “People never listen”, they say, or “They only do a half-arsed job and take twice as long as me”. So what is going wrong?

A common scenario is that the owner is handing over control of some relatively important jobs and not following up like they should, often because it was a job that they didn’t like anyway and were glad to get rid of it. It may not be a core production job (most owners like to keep those) but an equally important support job that is equally as critical to the success of the business. Maybe invoicing, for example. What often happens is the owner ABDICATES the job to another person rather than DELEGATING it. There is a big difference and it is around the process used and the control retained by the “delegator”.

Like many things in business, delegation is a process and involves several steps. Miss one or two and the process breaks down, the job doesn’t get done properly and the boss gets (more) stressed. So step one is to delegate properly, don’t abdicate.

Until you feel VERY confident that a staff member is competent, check and re-check what they are doing until the process is as smooth as a machine running in a bath of oil. Then check some more. Have the staff member report back to you on a regular basis on what is happening, the roadblocks they are facing and the progress they are making towards activity and performance goals. That might be a DAILY reporting process for some tasks. Like President Ronald Regan said during the cold war, “Trust, but verify”.

Keep control of the cash. There are some areas of small business that I am loathe to encourage an owner to delegate. One is the control over the bank account. By delegating (read abdicating) control over the accounts payable function in particular, a business owner can lay themselves open to less than ethical employees taking advantage of the situation and starting to steal money. I remember being in a network group a few years ago and one of our members was a panelbeater. He employed an office lady to look after the accounts as it was an area that he didn’t like and had little interest in learning about. The office lady was actually the wife of a good friend of his. Not long after employing her, the panelbeater’s wife developed cancer and grew steadily worse. They had 2 young children who needed attention and this started to take an increasing amount of his attention, which was not unexpected in view of the situation. Unknown to the panelbeater was the fact that his office lady had a gambling problem and she started to siphon money out of the business to feed her habit. Remember, this was a family friend who on the face of it was saying she would look after the accounts so the panelbeater could tend to his gravely ill wife. The stealing was eventually uncovered after the business started to perform poorly and an audit was conducted, but tens of thousands of dollars had gone.

The moral of this tragic and true story. Trust no one! I am not saying that you need to retain all the day-to-day accounting function yourself, but don’t pass over control of this area until you have some strict policies and reporting functions in place. If you don’t understand about money matters, learn about the critical issues and find a good accountant to help you put good control measures in place.

It’s okay to micro-manage a bit. Wear your control freak label with pride.

Visit our website for more information here: Coaching in Business

Where's The Tomatoes?

Businesses with a website perform better.

So says the latest MYOB Business Monitor Report and has highlighted the fact that businesses with a website have consistently higher revenue performance, more work in their sales pipeline and are more optimistic about future prospects. A few other highlights that came out in the report include:

· 31% of businesses with a website have experienced a growth in revenue over the past 12 months, compared to 26% of businesses without a website experiencing a growth in revenue.

· 40% of businesses with a website have more work on, while 26% of businesses without a website have more work on.

· 54% of business with a website expect revenue growth in the next 12 months, while only 27% of businesses without a website expect revenue growth.

For the full report click here.

So what is your online strategy and if you have an online presence, especially an e-commerce one, is it effective?

Think of this analogy. You go to the produce super store. It is a flash affair and you can enter the store through a dozen different doors. It sells a HUGE range of fresh food items in all sorts of colours. Beautifully packaged and displayed next to all the awards that the store has won for its design and packaging. But where are the damn tomatoes! All you want is a kg of tomatoes and all you see are Tahitian mangoes, Chilean Red Globes, 15 sorts of lettuce and 10 varieties of potatoes. And to make matters worse the place is crowded. You can hardly move for fear of loosing your place in line, so you give up, don’t buy anything and leave.

Thankfully there is a more simple produce store next door. One door and a limited range of basic items that one needs every day. And guess what. They have tomatoes. They are easy to spot and just behind them are other sorts of tomatoes too. This place is less flashy, but it gives you what, and you buy.

The moral of the story is this. Websites don’t have to be flashy and complicated to work. In fact a basic, well thought out website with the right sort of content that your target buyers want will win out every time. Flashy websites that aim just to attract a big crowd on the off chance it has something that you want and get lucky, don’t tend to have a good return on investment. Focus on what sort of customer you want to attract to your website. Give them a good experience while they visit and make it easy for them to buy.

Of course you don’t need to go the whole way and have e-commerce functionality on your website to begin with. The important thing is to look at the MYOB report and understand how businesses with website are generally ahead of their competitors. The important thing is to “get in the game”. If you don’t have a website for your business, I strongly recommend that you consider talking to a good website company, plan how it fits into your overall marketing strategy and make a start. For help with your marketing strategy development and for a free planning and review session click this link:

Growth For Business

Andy Burrows - Business Advisor