Tuesday, May 15, 2012

Tony Robbins, Sly Stallone and overcoming obstacles

You think you might have had it rough? Have you known difficult financial times? Well, if you've never sold your best friend for $25 and been rejected after being rejected, you've had it easy compared to Sylvester Stallone. This clip shares the story of how the iconic movie Rocky might never have come to pass, and the passion, persistence, and determination that went into making Sylvester Stallone a success rather than a failure. 10 minutes of time that will make your life better. You deserve the investment... http://www.wimp.com/sylvesterstallone/

Friday, April 13, 2012

We Are What we Repeatedly Do

You’ve heard the axiom before, I’m sure:

“You are what you repeatedly do. Excellence, then is not an act but a habit.”

Another one I really like says:

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

If these two quotes tell us that we are the sum of our daily habits, then surely our habits are important. Everything from brushing our teeth and a morning cup of java, to internal criticism of a colleague or watching TV every night after work, surely must matter.

Thanks to inspiration from a friend, my wife and I have undertaken a 100 Day Burpee Challenge. First, for those of you who don’t know, a burpee is a physical exercise where you start in a standing position, squat down and thrust your legs back and do a push-up, pull your legs back into a squat and then jump into the air. That’s one. The 100 Day Burpee Challenge inspires participants to do one burpee on day one, two burpees on day two, three burpees on day three, and so on, until you reach 100. And of course, there’s a catch; if on say day 75 you neglect to do your burpees, on day 76 you are expected to do 75 burpees from the day before and 76 for your current day.



Our Burpee Challenge systematizes a daily exercise habit. For 100 days, we are accountable to perform this exercise on a regular basis. And frankly, the benefits trickle down. I’ve noticed a difference in how I feel, and the level of energy I have. On nights when I go out with friends for a drink, I moderate my consumption actively, because I know that once I get home I’ll have some burpees to do.

Successful people will tell you that one of the things that contributes to their success, is the sum of the daily habits they have created for themselves. The legal thriller author, John Grisham, began his career as a writer by committing to write one page a day, before getting started on his legal work for the day. Eventually he produced a book and sell millions of novels around the world.

John Grisham is not the only one who purposefully bakes a habit into his daily routine. A recent study of CEOs revealed the following:

• Almost 80% wake up at 5:30 or earlier
• More than 70% exercise in the morning and only12% admitted to not exercising, regularly

Coincidence that the similarities are so high? Likely not.

So if we should develop habits to improve our lives, what areas should we focus on? I’ve come up with a few:

1. Exercise – Our bodies are the temples for our spirit. When it feels good, so do we. Develop a HABIT of taking care of it.
2. Mentally – In today’s fast moving world, if you’re not moving forward you’re falling behind. Learn something new everyday.
3. Spiritually – At least once a day find something in your life that your thankful for and genuinely give appreciation for it as though you will lose it tomorrow.

Our daily habits define us and our lives and affect those around us. If we don’t actively and mindfully manage them we risk falling short of our potential and achieving our goals in life.

What are some the regular habits in your life that improve the quality of life? What are some of the ones that might inhibit a better life?

Thursday, April 5, 2012

The circle of futility – and wear your undershirt

I was recently having a conversation with a friend who’s engaged. He’s super excited, but his wife is stressed and feels out of control. He explained that her biggest fear is letting others down and people having a critique about what she’s done.

The conversation evolved as we agreed that you CAN’T worry about others’ opinions, especially on your wedding day. I shared an example of times where I had tried to please others and how it created a circle of futility. One day I was in the office of the CPA firm I was with at the time and was talking with an older manger. As he took stock of my attire he felt compelled to opine; “You’re wearing a crew neck undershirt!” he blurted out. “What the hell’s the matter with you? They look terrible. I can see it you know? Why don’t you wear a V-neck?” he went on. I didn’t know how to react. I had just been jolted by a verbal stun gun. And, I had just always worn crew neck undershirts. I thought that’s what you’re supposed to do.


Heeding the comments of the older and supposedly wiser manager, I switched to V-neck shirts. I felt proud of my new style change. I was a modern man in my young 20’s! That was…until a few months later. My brother spied me one evening and caught sight of my undergarment. “What is that?!” he questioned. “You’re wearing a V-neck? Ha. Why would you do THAT?” he continued as he grimaced. “Oh no!” I thought. “I’m letting down my own brother!”

Before that incident if you had asked me if undershirts would one day serve as a vehicle for a powerful life lesson I would have said “no.” I would have been wrong. This experience taught me, in no on uncertain terms, that it really doesn’t matter what you do. Someone will be able to find fault with it and critique it. You have a choice of going through life as a ping pong for other people’s opinions, or you can take a stand, embrace who YOU are, and DAMN THE NAYSAYERS. Clearly half of them have it wrong anyway! Today I continue to stick with my V-necks (I find them more comfortable) and don’t care what people in the crew neck camp have to say about it. Meanwhile, my friend’s fiancĂ© needs to pick an undershirt, and embrace it.

Taking my undershirt life lesson leads to my next thought which has to do with Burpees. But for now, I’ll let you try these thoughts on for size.

Friday, March 23, 2012

And I need some work...

Yup, clearly I'm an amateur, at least when it comes to producing videos. But I take a few seconds to reflect on what that means. In this video I think I'm intending to reference Voltaire and say that Perfection is the Enemy of Good Enough, which is not in contrast to Good Enough is the Enemy of Great. (can't we all just get along - no enemies?) And my comment about my age, well, I think that's just a realization that I have some catching up to do of what I want to accomplish and believe I'm capable of accomplishing.

I'm ba-ack!

Like the Terminator promised, I'm back. I'm taking that first step(yet again). But, persistence is the key, right? So I'm back to posting here. The people I'm following on Twitter, and blogs, and so forth have been really inspirational and I think I'm taking their messages to heart. So, I think the best homage I can pay them is to spread the word...

Monday, September 19, 2011

Do not go gentle into that good night

Sometimes you just have to bust out the classics:

by Dylan Thomas
Do not go gentle into that good night,
Old age should burn and rave at close of day;
Rage, rage against the dying of the light.

Though wise men at their end know dark is right,
Because their words had forked no lightning they
Do not go gentle into that good night.

Good men, the last wave by, crying how bright
Their frail deeds might have danced in a green bay,
Rage, rage against the dying of the light.

Wild men who caught and sang the sun in flight,
And learn, too late, they grieved it on its way,
Do not go gentle into that good night.

Grave men, near death, who see with blinding sight
Blind eyes could blaze like meteors and be gay,
Rage, rage against the dying of the light.

And you, my father, there on the sad height,
Curse, bless, me now with your fierce tears, I pray.
Do not go gentle into that good night.
Rage, rage against the dying of the light.

Tuesday, February 1, 2011

Are you devout in your worship of a god?

Taking a brief tangent from my typical business related posting here: I came across this quote today and absolutely love it!

"Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones" - unknown

I think this hits the proverbial nail on the head about religious practice, the fear of falling short in devotion to a God that drives so many people to a house of worship on a regular basis, and the whole "what if there is, what if there isn't a God" debate.

Unfortunately, this quote falls short on the definition of what is a good life. Various cultural norms, differences in moral standards, you're life experiences (including how you were raised), and much more, all contribute to an individual's standard of what is a "good life." The best guide I've come across that transcends these challenges comes from the Buddha: All sentient beings suffer and therefore you should show compassion to them all.

Compassion - seems like such a simple word, yet in practice, it's amazingly complex.

Any thoughts?

Tuesday, October 26, 2010

You're so beautifully tall...now sit down!

It never ceases to amaze me how important the delivery of a request or question impacts the response. How many times have you asked your significant other for something and it did NOT turn out the way you expected? Or seen people get into an argument over what initially seemed like a reasonable request? Regardless of how the situation turned out, it is YOUR FAULT if you are the one making the request.

That's right! Buck up and take responsibility. If you are trying to say something and the receiving party doesn't hear or understand what you tried to communicate, you did it wrong. In a class for leaders in the California Society of CPAs the instructor, Bill Reeb, made a statement that went to the core of all the participants. "WHATEVER happens in your life, you are responsible for it." was all he said. When you embrace this level of responsibility in your life, believe it or not, things change. You view the world differently. (of course there are some limitations to this, but, arguably, not many)

Recently, watching the final game of the MLB NLCS Giants vs. Phillies, I met a woman who executed this approach beautifully. In a crowded bar, some friends and I were sitting down cheering on the Giants. My girlfriend Shanna got up for something and stopped next to me before leaving the table. After a little while, the woman behind us commented to my better half, "excuse me," she said. "You know, you are so beautifully tall." Immediately, Shanna realized that she had been blocking the view of the people behind us and felt terrible. "Oh, I'm so sorry I'm in your way!" Shanna replied and quickly moved on out of the way.

We've all heard the other ways that woman could have made her point. "You know, you make a better door than a window!" "Hey, we're trying to watch the game too ya know...." The list goes on. The grace and tact our barroom neighbor exhibited by offering a compliment to make her point was stunning. Who wouldn't want to be obliging to someone who just made you feel good about yourself? I can't begin to guess the potential impact of taking this example into other requests you make throughout your week, but I aim to find out!

You're such a smart reader for having found this posting! Would you mind taking a brief moment and sharing it with a friend? :>)

Friday, July 16, 2010

Apple's iPhone 4 antenna response: a PR model for crisis

Have you watched Apple’s press release about the iPhone 4’s antenna issues?  Apple, the company widely revered by its passionate customer base for its innovative products, has also been known for its hubris and occasional PR trip ups.  With all the hype around the incredibly successful launch of iPhone 4, there has been an abundance of press around problems with the phone’s antenna.  Gotta love it when media companies ride the coat tails of highly popular products and tear them down as a means to generate press.

This time Steve Jobs and Apple fought back and did a great job!  As I watched, I noted the structure and response to the current public outcry.  Steve Jobs took the opportunity to turn what’s been a PR nightmare and turn it into a promotion for what’s been done with the phone and how it compares to previous generation iPhones and other popular smart phones.  This is basically the outline of what he said:
     •    This is the hard data / These are the facts (they ultimately said there is an issue but its tiny)
     •    We love our users
     •    This is what we’ve done in development and design and the resources we’ve put into this product (spent millions of dollars and have lots of PHDs on staff)
     •    Acknowledged the  problem
         o    Problem is inherent in all smartphones
         o    We will continue to work on this issue
     •    We are being completely transparent (acknowledging these problems)
     •    Put the scope of the problem in perspective with competitive products and previous gen iPhones (the iPhone’s  antenna issues is virtually the same as all other phones)
     •    These are the actions we are taking to address the issue (we want EVERYONE to be happy)

It was clearly a carefully engineered response but my impression was that they nailed it! 

This framework can serve as a model for many other situations when companies need to respond to a crisis.  Take note, BP!  If there’s an issue, acknowledge it.  Provide the facts.  Promote what you’ve done.  Explain what you will do.  Tell your customers you love them.  Sounds like a fairly simple communication plan.

While I was at bidz.com we received an onslaught of criticism and accusations that ranged from misleading pricing structures to our CEO having ties to organized crime to SEC investigations.  We didn’t respond to all of them because doing so would have helped fuel the critique and given validity to those voices.  In the ones we did respond to we fell short of this model and (perhaps) as a result, had less than stellar success. 

Ultimately, you hope you don’t come across a crisis our public outcry where you need to respond.  But, when you’re pushing the edge, beating the competition, or have huge success or failure, critiques are bound to arise.  Hopefully this helps when that time comes.

To watch apple's video, click here .

Monday, July 12, 2010

Social Media Framework

Whether they are in a typical brick and mortar business or some virtual world in the cloud, good entrepreneurs recognize the power and potential of social medial tools.  They facilitate interaction with your business's audience, are very inexpensive if not free, provide trackable information, allow "enthusiasts" to pass along their passion for your company, and can virally promote your product or service.

My challenge has not been whether to use social media or not but rather, which outlets to use.  More vehicles come up every day, across so many different segments.  At mindmeister.com, I came across the below framework that someone has created.  See the original version here.  I think it does a great job of outlining the various social media services for what you want to do.

Are there any you use that aren't on here?

Wednesday, July 7, 2010

Customer Service Gone Bad

It was an odd phone number from Nebraska that wasn’t listed in my phone.  I racked my head trying to figure out who it could be that was calling me; was it someone whom I had recently met and given my number to?  I wasn’t in a spot to take the call and they didn’t leave a message so I was left to wonder.  It was a mild annoyance but I was in the middle of a short vacation and quickly moved on to other things.

It wasn’t until I got back that I decided to do some quick internet sleuthing to see who this mystery caller had been.  Maybe I’d gotten lucky and won the lottery…in Omaha?  I did a quick Google of the number and the answer surprised me.  It turns out that many people had been receiving calls from the same number; Omaha Steaks (OS).  There’s a whole list of frustrated (ex)customers here.  A few months ago I placed an order from them for a Father’s Day gift and now I was receiving calls from them.

The thing is, this company is trying to do the right thing but doing it all wrong.  It would be much better off had they not tried in the first place.  Most businesses that want to stay around implement some form customer service outreach.  It’s a good way to stay engaged with customers, solicit feedback and hopefully, gain additional sales.  After all, previous customers are the best source of future sales since they’ve already discovered your company and expressed an interest in your product/service.

So what is OS doing wrong?  By not leaving a message they are coming across as, well, quite frankly, dirty.  Assuming they absolutely feel its imperative to speak with someone live, all they have to do is say “Hi this is Omaha Steaks calling.  Sorry we missed you.  We’re calling because you’ve previously done business with us and want to let you know about a current promotion we’re running.  We’ll try back again soon and hope to catch you at a more convenient time.  Until then, keep those BBQ’s fired up!”  I would have been much happier to receive that but instead, got nothing.

I called OS’s customer service and spoke to a friendly lady named Robin.  She explained that my call would have come from one of their Outbound Call Specialists and that they don’t ever leave a message.  “They’ll keep calling every couple of weeks,” she explained, “unless you’d like me to take you off our calling list.”  Well, there you go! 

I’d like to praise them for offering to take me off their calling list…but I just can’t.  Clearly it’s been an issue for many customers and that’s how OS is addressing it.  Rather than provide quality, helpful customer service, essentially, they are volunteering to stop talking with customers.  According to the company’s web site OS has been around since 1917 and opened a telemarketing facility in 1999.  Presumably that’s where my call originated from.  Someone should tell this family run business that “the way we’ve always done it” isn’t the best way to keep doing it.      

Omaha Steaks represents itself as a high quality meat company but calling customers and not leaving a message does not support that.  Ultimately, this gets to the idea that EVERY touch point you have with current and potential customers is a reflection of your brand.  In this case, OS’s actions are misaligned with the brand identity they are trying to create.  But that’s a conversation for another time.  Until then, stay focused on delivering QUALTY customer service that WOWs people.  If you have any similar stories, please share the lesson!


Monday, June 21, 2010

How to hire a programmer to make your ideas happen

Timothy Ferriss recently tweeted this blog posting from Derek Sivers.  Great article!

http://sivers.org/how2hire

Inspiration for change

I recently came across this and like it: "At the root of all growth, we find change.  Allow it to work for you not against."

Friday, June 4, 2010

What Motivates Us

This is a great video introduced to me by my brother, Greg.  Thanks, bro!!  Love what it has to say!  It echos so much of what Tony Hsieh has to say in Delivering Happiness or what Patrick Combs tells us on an almost daily basis.  Watching this video will be a good use of the next ten minutes of your time.  What are your passions?!

Sunday, May 23, 2010

Culturally Playful; new genre? web 2.5?

Some could say it all started with improv everywhere's mainstream "missions" such as their Grand Central Station Freeze, or their ground breaking MP3 experiments.  Others might argue that the dawn of the Twitter age and its fast, micro communications spawned new creative luminaries.  Regardless of who or what you think is responsible for its genesis, there's a new game afoot over the internet.

There's a growing number of web sites, twitter feeds and youtube channels that are engaging people to be active participants in their "games."  Sites such as Shitmydadsays, failblog, and textsfromlastnight, just to name a few, are growing in popularity and engaging visitors an an offline way that we haven't seen before.  They're spurring book deals, webby award nominations and much more!

On May 7, Twitter user Ferris_Bueller_ gave a practically line by line, real time recreation of the movie, employing foursquare, movie quotes and ad lib commentary.  Aside from great entertainment throughout the work day, it popped my proverbial online cherry with an experience I'd never been through before.  I'm now looking forward to my second time experiencing IT online!

Awkwardfamilyphotos hosts a collection of family portraits that evoke all too familiar memories of childhood, family get togethers with distant cousins and family portraits done at Sears.  It's almost like that trainwreck on MTV, Jersey Shore, where you just can't turn away, but differs in that we probably have something that contributes to the fun.   

The common thread among all these sites is that they take users' web experience out into the real world.  Or, conversely, ask users to take their real work experiences and bring them online.  In fact, they are dependent on it.  Not only are they dependent on it, they are successfully capitalizing on it.  Consider that the founders behind textsfromlastnight found a way to make money from the debaucherous drunken, stoned and sexually exploratory evenings of college students and twenty-somethings!  With the book already released, one has to wonder...when does the movie come out?!

They say that imitation is the greatest form of flattery.  As if a book deal and TV pilot starring William Shatner weren't enought to flatter Shitmydadsays's creator, Justin Halpern, he has inspired a parody on Twitter, shitmydarthsays.  With lines like "I intercepted several transmissions beamed to your phone that I thought were rebel plans, but turned out to be sext messages" and "And now, salad dressing, we will discuss the location of your hidden valley ranch" the parody is almost as enticing as the original.

All these sites, feeds and experiences point to the next generation of internet interaction, communication and engagement.  They are the pioneers at the beginning of the next online movement.  Advertising strives to be more entertainment than ever before and these sites are the next medium for targeted, customer engagement.  They are playful with various elements of our culture and might just represent the next leap in the internet.

Thursday, May 20, 2010

Manage, Take Ownership and Be Proactive

I was recently speaking with a good friend of mine who is a communications consultant for a Fortune 100 Company.  She expressed some frustrations about some of the disrespect the team members had for the communications function and on-boarding people with her efforts.  I suggested she have a team meeting.  Because I see this happen fairly broadly, I’m sharing the advice I gave.

The first thing to do is introduce yourself and your role.  Explain how your work will be furthering the objectives of the team and why it’s important.  You can’t assume that they will automatically understand.  If you have specifically relevant experience you may consider sharing that as well if you feel you need more credibility.

Next I recommend explaining how you will be interacting with the team.  Will it be weekly assignments? Daily?  Adhoc?  If you give a team member a project and a deadline make sure they agree to the deadline.  If you have the flexibility you may even consider asking them when they think they can have it completed by.  If a project deadline is one week and you haven’t heard anything after four days, check in.  “Hey I know you committed to getting me that write up about XYZ in three days and just want to see if you have any questions or problems you’ve run into.  No?  Great!  I’ll look forward to it in three days then.  Thanks!”   This serves as a reminder to your team member and facilitates communication should there be any delays. 

You can NOT assume that since someone has committed an assignment to you that they will remember having done so and that you’re instructions were clear.  In fact, successful managers will assume otherwise until their colleague has demonstrated regular responsibility for their commitments.  At the end of the day, you may have received commitments from people but if their work isn’t done YOU are still the one responsible for the project.  There’s nothing productive about placing blame on others for missing your deadline.  If, despite your regular, proactive, efforts your colleague is late in their commitment, speak to them when you are alone.  “Hey I just want you to know that I was counting on you for your write up.  Because you got it to me late the team leader is really pissed at me and now our project is off schedule.  What could I have done differently so that we would have avoided this delay?”

In short, don’t assume people know what they are doing or will have your request as a priority (until proven otherwise).  Own it.  Own it.  Own it and proactively manage your assignments until you achieve the results you need.  Good luck!

Monday, May 10, 2010

Delivering Happines: Book Review

I just finished reading my advance copy of Delivering Happiness by Zappos.com CEO Tony Hsieh that I received at the Business Growth Conference. Overall, this was a great read! Tony’s casual writing style made it easy to pour through all 241 pages. The official release is June 7, 2010, and I recommend this reading for any entrepreneur who wants to build a solid employee and customer centric (ie successful) company!

The book explores Tony’s background and early entrepreneurial pursuits before becoming involved with Zappos. These provide an important perspective and reference to how and why he has shaped Zappos to be what it is today. Tony then goes into some of the early struggles of the company and how innovation, creativity, out-of-the-box thinking and PERSISTENCE, kept the company going after many flirts with failure. From here, we move into the core of what Zappos is about; its culture. It’s employees!

Zappos.com has 10 committable core values that they are dedicated to. By committable I mean that they are willing to hire and fire employees around these values. That’s how important they are! It’s not just lip service. While they’re all very relevant, a few values of note are Deliver WOW through service, Create Fun and a Little Weirdness, Pursue Growth and Learning and Be Humble. People who work at Zappos and interact with its customers and vendors LOVE working there! They feel valued as employees and people, feel a shared sense of purpose, and are encouraged to grow. Are these virtues reflected in their interactions with customers and vendors? Absolutely! And this is a big part of why I endorse so strongly that Tony “gets it.”

Having spent five years in HR I appreciate that it can cost a company between 30% and 250% of an employee’s annual compensation to replace them. That’s a whole other subject on its own, but Zappos has created an environment where people are HAPPY to be there and want to stay and THRIVE. While there aren’t any specific turnover statistics provided, I expect its VERY LOW for Zappos. In addition, they encourage people to self select out of the company by offering $2,000 for anyone to quit between weeks 2-5 of their orientation training. Makes perfect sense! If you have happy employees who want to be there, you’ll have happy customers , both of which translate into company profits and smart business.

With such focus on company culture I couldn’t help but be reminded about Southwest Airlines and a book I had read about them, The Southwest Airlines Way. With cover tags such as “Using the Power of Relationships to Achieve High Performance” and “If you want to understand how one organization can change the competitive rules of the game for an entire industry, read this book,” it’s abundantly clear the Southwest book was an inspiration at Zappos. So much of what Tony describes echoes what Southwest set out to do.

Southwest airlines isn’t the only apparent source of solid inspiration for Mr. Hsieh and his Zappos team. There is respect to Sun Tsu’s The Art of War (“when you are weak appear strong and when you are strong appear weak”), Tom Peters and creating “WOW” (The Brand YOU 50 is the first book I came across this), and even Buddhism by stating that while we take different paths to get there, we all have the same goal in life: happiness. There are also many strong customer service themes that I had found in What’s the Secret to Providing a World-Class Customer Experience (endorsed by Tom Peters).

Delivering Happiness is a noble book and great story of the inspiring company that is Zappos.com. Enjoy!

Growth Conference Notes

Following up on my trip to the Business Growth Conference, I attended four breakout sessions: 
* Financing Growth with Debt: Fuel for your business
* Cashing in For Maximum Value: Finding the Best Exit Strategy
* Private Equity Funds: Insights about deals that get done
* CEO Confessions: If I knew then what I know now

What follows are my rough notes and observations from each session. 

Financing Growth with Debt:
            Venture Lenders
                        want warrant coverage as a % of loan
                        want security against loans
                        currently they are in a position to be "highly selective"
                        recent terms for a deal were 3.5% in fees, 12.65% interest, 8% backup fee (fee against the unused loan amount), and 80% warrants
                        monthly and quarterly payment terms

            Asset Based Lending (ABL)
                        primarily against AR (preferred) and inventory
                        80% advance on AR
                        6-18% in fees with 8-12 as the sweet spot
                        different from factoring because - w/factoring there is no risk to borrower, ABLs prefer to lend $500k and more, and factoring is more expensive

            Traditional Banking
                        discussed ways to get around a PG if a Co can stand on its own
                                    look at Cash Flow, LTM EBITDA, Growth, and EBITDA as a % of cash flow
                        often ask the question - is it debt or is it equity that I"m ultimately on the hook for

Cashing in for Maximum Value
            there is currently pressure for PE firms to invest
            acquisitive companies are flush with cash
            expect activity in the deal markets this fall
            strategic buyer valuation = DCF + synergies
            diversification of a company's channels mitigates risk
            an entrepreneur who sold 70% stake to a PE consortium had the following comments
                        had a lot of data and info on the biz which was a plus for the buyers as he was able to anticipate the next three or four questions and provide data against them
                        took 1 year to complete the deal.  Took his time FT and relied on another exec to run the business
                        you need to define your objectives for your exit/liquidity event
            deals are closing in a much longer time frame than in the past - buyers are more actively looking for "things that come up" for which they can they adjust the term sheet
            need to consider 1 time events that are reflected in the financials and are the FS reliable
            consider: what are the industry trends?
            best way to handle due diligence is to prepare ahead of time
            DD will cover several areas, thoroughly
                        Legal, IT, Financial, Tax, People, Commercial (partners, contracts, etc.)
            use an "e-room" for doc storage to allow others access to them
            the entrepreneur described his process for selecting professional service providers:
                        interviewed 5 IB firms, all top and highly qualified
                        wanted to be the "big deal" for them, not just some other deal
                        didn't want big egos to get in the way of the deal

Private Equity Funds
            looking for CEOs with proven track record of success
            and companies with thick Gross Margins
            generally looking for companies with between $20 - $250M in revenues requiring $10 - $50M in equity capital
            I asked a question about target Co's cap structure and how that affects their decision - ans: look primarily at senior debt and anywhere there is 2x EBITDA

CEOs...
            the session had a lot of good stories and anecdotes but nothing specific worth making note of, outside of what I've already shared

Thursday, May 6, 2010

Heart, Passion and Happiness

I'm on my way back to the airport from the 2010 Business Growth
Conference in Anaheim, CA, hosted by the Harvard and USC Marshall
School of Business Alumni Associations and can honestly say I'm blown
away! So many great people with brilliant minds, warm hearts and
passion for what they do.

In my recap, I'll start with the last, first. The last session of the
day was an impressive panel of successful entrepreneurs who talked
about lessons learned. It included Alex Cappello, a director on the
Cheesecake Factory board and CEO of Cappello Capital, Richard
Melcombe, a former TNT exec, Bob Barry,president of John Barry &
Associates and Rob Ukropina, founder of Overnite Express. All great
people! but there was something especially touching that Alex had us
do before we left. "Everyone pull out a dollar" he instructed the
audience of 150. "When you leave, I want you to leave this on your
chair as a tip for the people that clean this room," he explained.
"TRUST me, it will make a difference in these people's lives and it's
the last thing they'll expect from a room full of Harvard and USC
alumni." Consider the power of this one small gesture! I love it! I
can't wait to lead a ro again and copy it. I hope my readers will pass
it along as well.

Next mindblowing excerpt from the day was the keynote address by zappos.com
CEO, Tony Hsieh (pronunced Shay). Tony built zappos to a billion +
company by focusing on....products? No. Price? No. Customer service?
Not really. His secret sauce? Unflinchingly committing to a company
culture of "delivering happiness." I can't wait to read his new book
by the same title. From other companies I've studied and been a part
of, I can tell you, this guy gets it! I feel very privlidged to have
heard him speak this morning.

Gotta run but more to come...

Wednesday, May 5, 2010

Be an Expert!

Last night I had the pleasure of spending time with James Hickey, a managing partner at Tatum (rockin' CFO talent), and Nicole Ward, a fellow Board Member at ArtPoint and colleague of James.  Both are great people, super nice, uber motivated and well connected (for good reasons). 

We talked about a lot of fun stuff but at some point the conversation went into CPA firm partners and their Biz Dev efforts.  James explained that frequently partners will ask him for an introduction into a certain industry where "they'd like to be (and are not)."  What followed from there was a discussion around if these CPA partners want companies to recognize them as experts, or "go to" people, in a certain field, they have to establish themselves there first.  We gave credit to their ambition to recognize where some of the hot markets are and their desire to be there.  We concluded that without having the perception of being an expert, they're not going to be successful in developing clients.

So how does one become established as an expert?  In his book The Four Hour Work Week, Timothy Ferriss outlines some very simple techniques.  The first is to join organizations in the field you want to be in.  So, for example, if you want to provide services to the music industry, join the Blues Music Association or the American Federation of Musicians.  This one step will immediately open doors.  Next, get quoted or published.  Peter Shankman has told me that he founded Help a Reporter Out (HARO) to level out the playing field in journalism.  By doing so he's created a huge opportunity for people to become recognized in and associated with their field of expertise.  Next, attend related trade shows.  Simple.  Easy.  Of course, there's the whole social media field of blogging, tweeting, etc. that are great vehicles to establish credibility as well. 

What I've failed to mention thus far and is perhaps the most important, is to actually BE an EXPERT.  "Fake it 'till you make it" will only get you so far.  If you say you can deliver the goods, you better be able to actually deliver otherwise you'll quickly develop a reputation...and not the kind you want.  Do your research.  Ask lots of questions to people who are already established in the field.  Partner on some projects with them.

The context of this discussion is not limited to CPAs and their firms but is applicable to all businesses.  Motivated entrepreneurs are consistently looking for ways to grow their business and enter new markets.  By following some of the above suggestions, these entrepreneurs can establish themselves as experts and successfully evolve their businesses through strategic growth.
 
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