What do business people need? They need reliable information; quickly, cheaply and efficiently.

What do we do with all this information?  We make decisions!

I would ask only one more question: Is unlimited information helping us make better decisions, or is it complicating our decisions?

I grew up before the digital age. It was a time where the ‘establishment’ or ‘keepers of the information’ were my parents, teachers and the encyclopedia. As odd as it may seem to young people today, those limited sources were actually sufficient to prepare me for a successful career in business.  Some might say it was a simpler time. I prefer to say it was a time with fewer distractions; and this leads me to the title of this blog – Laurie and the Ledger.

I mastered business accounting not by being given tons of electronic information and data, but by simply learning to use a ledger – a proven and easy to understand way to keep track of money.

So let’s roll back the clock. I’m 10 years old (ok…a long time ago), and I’m in my Dad’s store on 33^rd Street in New York City. Across the street is the Empire State building. It’s big, I’m little. The workday had started.  My Dad’s bookkeeper, Dora, taught me how to use an adding machine. She would hand me a stack of sales receipts and I would add them up.

When I finished my job I handed it to Dora. She took out a big black binder and recorded the numbers. She wrote the information on the sales receipts page, imprinting by carbon on a second page, right behind the first. I knew this as double entry accounting. It was the way a business owner tracked expenses, revenue, and profitability.  Since each entry was posted on two different ledgers simultaneously, it resulted in a debit and a credit, and the books would always balance. If they didn’t, you knew you had to go find the error.  The bookkeeping records provided a quick, reliable and efficient snapshot of the company.

By learning how a ledger worked, I learned what mattered and how to account for it.  That business wisdom has never left me; providing a keen sense of awareness to practicality.

Today, when I search the Internet for new information that might help me make decisions, I don’t get confused or distracted. I just remember what really matters: The basic and timeless lessons I learned on the ledger. 

I need timely information from a trustworthy source that is both concise and straightforward.  The information must come from a competent source that has a proven track record and is respected in the specific industry I am working with.  My decisions are made based on the efficient delivery of information; similar to the practicality of the double entry bookkeeping ledger of my youth.

What have you learned in your life experience that is your source of wisdom?   Where and how was your knowledge base built?  When you recognize the important lessons you have learned in your past, you will be able to make sound judgments as you sort through the plethora of online information.

 STOP and REPURPOSE!

 Repurposing is used to convert your message in the various formats of communication. In this case, use your unique idea and infuse it in all of your messaging: newsletter, website/blog, social media, ads and events. Not only will your message be seen by more people, it will become a natural identifier to your company when repetitively read in all of your marketing.

 Spend the time to answer the following 2 questions: 

1. What makes you different or unique in your industry? If you were the “Specialist” or Guru in your industry, what could you teach?
2. What stories can you tell that will highlight that uniqueness?

If the message is authentic then the ideas will flow rather than racking your brain to come up with interesting content. At least once a month – perhaps weekly – think of one story, funny anecdote, interesting link or timely statistic that you can send out to your sphere. If you are in a particularly creative mode, keep a list of ideas saved as you brainstorm. Now, write your current idea in 1-2 paragraphs. Then Repurpose it!

 Spread it throughout your marketing touch points. Be authentic and you will bring your community closer, fuel the referral business and create new content. A win-win situation!  

As Virtual COO’s for the past 3 years we have seen this system work; it’s been proven. If you are unsure of how to start, give us a call for a free assessment of your current systems. We are the Virtual COO’s for entrepreneurs who know when it’s time to bring in the team.

Financial Analysis may sound like a daunting task to some people, especially if the subjects have never really been explained to them in a common sense way.  I had an opportunity to teach a Finance student of mine what I like to call Common Sense Financial Analysis in 20 hours, and within that 20 hours, I’m confident he learned more than in four years at our prestigious local University.

Essentially we reviewed the three critical financial statements, the components of each, why those components were important, when a company reported, to whom they reported to, and essentially, what information you could get out of the numbers you were given.   Sure there are a million ratios and terms to make things sound fancy (like the beloved weighted average cost of capital) but common sense is where you start, and ironically, once you understand basics, the rest comes relatively easy.

Boiled down Financial Analysis:

An Income Statement tells you whether or not a company (through selling its goods or services) is making money or not.  Extended analysis will shed light on revenue trends, expense management, margins, consistency etc, but essentially it’s called a Profit and Loss statement because that’s exactly what it tells you:  during a period of time, did this company experience a profit or a loss.

A Balance Sheet tells you at any given point in time, what a company owns, what it owes, and the difference, which is what it’s worth.    If your house was on a balance sheet, what you own (your asset) is worth say $100k.  What you owe (your liability) is $80k, and what you own (your equity) is $20k.  What you own, less what you owe, is what you are worth.   Assets- Liabilities = Equity.  Or on a balance sheet Assets = Liabilities + Equity.   They must equal so the sheet balances, hence the name.   Extended ratios from the balance sheet will tell you if a company is too leveraged (borrowing more than they should), has a good cash cycle (A/R and A/P analysis), Liquidity (can they pay their short term bills) and insights into ownership structures (is the company financed through stock, borrowing, owners capital etc).

Our third statement, a Cash Flow Statement essentially tells you, again over a period of time, what inflows (sources) of cash you had over that time, and what outflows (uses) of cash you had.  The interesting thing about a cash flow statement is it is created by the change of the balance sheet from one period to the next.  So, changes in what you own (buying or selling) would be uses or sources of cash.  Changes in what you owe (borrowing or paying off) would also be sources or uses of cash.  Changes in equity (selling stock, buying stock, and investing capital for example) are also sources and uses of cash.

As you can see, this is not rocket science, but you would be amazed at the number of financial and non financial people that can’t make these simple connections to their work and businesses.  The really cool thing about business financial statements is that they can be applied at a personal level as well.  You can calculate your personal ‘profit or loss’ for a given year, your personal net worth on your balance sheet, and your personal cash flow statement (changes in your balance sheet) over time.

Not understanding your financials is like driving with your eyes closed.  Sure you may be able to make it down the street, but I wouldn’t recommend the highway.

One of the successful businessmen I sought out at church for advice in starting my own business – is a 90 year-old gentleman named Floyd. Some 20 years ago, he and his nephew, Tom started a small manufacturing company here in town that makes kitchen blenders.

To test their blender’s durability – Tom would often ram a broom handle into the glass container – to see if it would “blend”. This little quirk of his would become significant later.

For 15 years or so, they had moderate success locally selling their blenders. Then, 5 years ago – along came an internet phenomenon, called “YouTube”. The marketing department suggested Tom & Floyd make their own commercials for YouTube.

Someone decided the image of Tom “blending” a broom handle might be catchy – so in a small room at the factory, they filmed Tom and his broom. They had him blend other objects – like a Chuck Norris action figure, a gun, a live video camera, an iPod . . . Their commercials went “viral”. Do a YouTube search for “Will It Blend?” and be prepared to laugh out loud.

Their YouTube commercials get tens of millions of views EACH. Last year, their little company, Blendtec did more than $50 million dollars in business. Tom & Floyd are recognized all over the world and have appeared on TV shows from Good Morning America to The Tonight Show.

It all starts with one good idea.   What’s yours?

Yes, that is how important it is! And here are the three reasons why.

1. Your ideal client is one who believes they benefit from your service. They want what you have to offer. They come back to you over and over and then, they refer you to others.

2. Your ideal client makes you feel energized. Because you are clear on the value you bring, working with your ideal client validates your work and makes you want to do more of it.

3. Your ideal client is a better person because of you! When you connect with and serve your ideal client you enrich their lives, which in turn impacts the lives of everyone they touch.

Not working with ideal clients (and not saying “no” to less suited clients) costs you time, money and aggravation.

Before heading east, Laurie joined him in Montana where they toured Glacier National Park in northern Montana. This magnificent park borders Canada and in 1932 joined with Canada’s Waterton Lakes National Park to become the world’s first International Peace Park.

Dave’s photo captures the beauty of Glacier National Park as the fall display of color is framed by the beauty of an early snow in the mountains.

Some of the ways you may increase awareness are:   put flyers/brochures in the office of that serivce provider (passive), insert a link to each others website on your sites, give them a testimonial to send out or hold some type of event that brings your SOI’s together (active).  Obviously the event type is more work but there is more to be gained by it.

One group, BNI (Business Networking International), that I’ve had relationship building results with, does this on a local level.  BNI uses strategic partners to construct a structured, positive, and professional “word-of-mouth” program that enables them to develop long-term, meaningful relationships with quality business professionals. 

Jump start your own system by sitting down with your trusted providers for one-on-one meetings; go for a cup of coffee and brain storm how to bring the two spheres together.  Remember it has to be organic, meaning natural rather than forced.  So what if your business is not on a local level, that trusted provider is only a Skype call away. 

At FEW we’ve found that the often overlooked Advocates are your best cheerleaders and you want to know who they know.
 
I’d love to hear your stories about how you’ve used Strategic Partners to boost your business, email me at tina@freeenterprisewarriors.com

He’ll be open to what shows up and allow his curiosity to be his guide. Spurred on by his deep interest in the spirit of enterprise, we’re sure to hear stories that will inspire, inform and entertain us.  

We’re looking forward to hearing from him!

My daughter called me from school on Wednesday and told me that it was taken care of and she was happy with her schedule.  Wow, discussing an action plan and a deadline really worked!  She even followed up, I was so proud of her. 

But what happens to this scenario when we grow up and become adults?  As a child we are accountable to our parents and teachers.  Sometimes they put our feet to the fire and tell us we can do better.  Sometimes they check up on us to see if we’ve done our homework.  They always want to see our report card.  The watch us, and they have high expectations for us. That caring and attention (and the inspection) propel us forward.

What happens to that accountability when we are adults and on our own?  Sometimes, if we work for someone else, our boss or supervisor holds us accountable?  But, if we are self-employed or we own our own business, how do we keep ourselves accountable?  Who is watching us and asks if we’ve done what we said we would do?  Who encourages us and then checks on our progress?

The most successful entrepreneurs and business owners build accountability into their lives.  They give another person, perhaps a coach or consultant or even a board of directors the permission to hold them accountable.  They schedule regular meetings with an agenda and a way to report what they have done and how it turned out.  It keeps them focused and on track.

One of the easiest ways is to find an accountability partner – someone you can trust to tell you what you need to hear (not just what you want to hear).  This person should be like-minded and success oriented, like you.  You share with them your clear business goals, action plans and deadlines.  Then you keep track of what happens and report it to them on a regular basis.

In a sense, you allow them to treat you like your parents did when you were young.  This adds structure and rhythm to what you do.  It keeps you focused and alert.  It doesn’t let things get off-track. It prevents you from developing the wrong habits.

Just like when you were in school, this accountability spurs creative thinking and gives you energy.  I call this “accountability partner momentum”.  And, the neat thing is, you can make the process mutual and hold each other accountable.  Of course, if this doesn’t work, you can always go ask your mom!

Setting out before dawn we left our suburban home for the city. Upon arriving I’d watch as he lifted the big heavy gates, turn off the alarm system, and turn on the lights. The day had begun!

He looked serious at the start of the day. Sometimes I thought he looked worried. However today I know it was focus. He had a job to do and he was intent on doing it.

In a little while the employees would file in. Repair men, truck drivers, sales people, and office staff. There was the usual banter of people getting their day started.  I was fascinated with the complexity of the city. Trucks, noise, smells, skyscrapers, and people… lots of people!

Back then my jobs consisted of filing, adding numbers, typing invoices, running the postage machine, and greeting customers. I was eager to learn and my dad’s employees enjoyed teaching me. It was exciting and the day flew by.

At the end of the day when everyone had gone, I’d walk by my father’s side as he went through the building turning off lights and doing his last check on things. Finally, we’d end up in the store where he would open the cash register, thank me for doing a good job, and hand me three silver dollars.

Many years later I realized the profound meaning of those silver dollars. At the tender age of seven I learned a set of values that have guided me in everything I’ve done. I learned that work was fun because there was so much to learn and master. I learned that work was meaningful because I did things that needed to be done.

I learned that if I did a good job I got paid. I received a great lesson about how money and values interact. And I learned that if I saved money I had control. I could make decisions about what I wanted without asking for anyone’s help or permission. That’s my silver dollar mind set!

Thank you Dad!