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The classic financial benefits derived from small business ownership typically fall under two categories: 

1. Earned income: salary and bonuses reported on a W2 each year.

2. Unearned (investment) income: distribution of profits from the operation and/or sale of the business.

But there are other small business ownership advantages that I call “stealth benefits,” because they’re not as evident as operating opportunities. Arguably the most dramatic stealth benefit, which often has the most wealth creation potential, is for the business owner to also personally own the real estate in which that business operates.[Continue Reading]

Few contemporary prophecies have stood the test of time better than this one by John Naisbitt, from his 1982 watershed book, Megatrends: “The more high-tech, the more high-touch.” I’ve named that jewel, “Naisbitt’s Razor.”

The reason for Naisbitt’s accuracy is simple: High tech, by definition, means digital. But you and I are not the least bit digital; we’re 100% analog. And our analog nature manifests as a desire to connect with – or as Naisbitt says, “touch” – other humans. So the value of touch increases proportionally with the increase in the velocity of our lives.

Digital is fast; analog is not. We may transport ourselves virtually at the speed of digital, but once there, we touch –eye, ear, hand – at the speed of analog. So how do we reconcile the fact that as high-tech consumers who desire and eagerly adopt each new generation of digital, we’re still, and will always be analog beings? One word: trust.[Continue Reading]

Author’s note: I wrote the sentiments below a long time ago and have offered them to you every four years on behalf of these two subjects. Of course, small business owners haven’t changed much over the years: each one still – increasingly – deserves your fullest admiration. And in truth, for most Olympians, the same is true. Unfortunately, our world has become so politicized and narcissistic that now the audience’s Olympic experience has been diminished.

Every four years, you can watch special people participate in a noble cause – the Olympics.

These heroes commit countless hours over many years to achieve a level of excellence that might somehow qualify them to represent their country in the Olympic Games.

Notice no mention of winning, medals or glory. Most Olympians find neither. And yet they train and compete.

Watching an event, we’re at once self-conscious and grateful as the camera’s lens permits us to invade that private moment just prior to competition. Self-conscious because of the intrusion, but grateful to share the moment and benefit vicariously from the Herculean effort and sacrifice.

The TV camera moves in closer. We can see the color of their eyes – even imagine their thoughts.

The swimmer: “Twelve years of training and it all comes down to the next few seconds – must remember the fundamentals.”

The gymnast: “Today I will perform my personal best.”

Then the long lens captures the mouth. There’s a lick to fight the cottonmouth that only those who risk failure have tasted. The lips move ever so slightly as if to offer a short prayer or claim an affirmation.

Every day, you can watch another group of special people participate in a noble cause – small business.

Small business owners are a lot like Olympic athletes. They commit countless hours over many years, pushing mind and body to achieve a level of excellence that might somehow allow them to merely … make a living.

Notice no mention of winning, medals, or glory. Most small business owners find neither. And yet they show up, year after year, to work, compete, and contribute.

Like an Olympic race, sometimes the future of a small business’s success rides on how well the owner performs over a very short period of time. If the camera could take you in close, you might see an owner thinking: “All these years of work and risk could come down to how well I deliver this proposal in the next few minutes – must remember the fundamentals.”

The long lens would also capture the lick to lessen the cottonmouth that only those who risk failure have tasted. Then the lips move ever so slightly as if to offer a prayer or claim an affirmation.

Olympians and small business owners are dedicated to what they love. Both work hard in search of excellence and take great risks against all odds, usually at their own expense.

I’ll gladly spend my admiration on that kind of spirit.

Write this on a rock … Because of Olympians and small business owners, the world is a better place.

Watching a television program about how American pioneers trained and employed oxen in the 19th century reminded me of how our brains work.

Like a yoke of oxen, our bilateral brain hemispheres are hitched side-by-side, meeting the world head-on. But also like the bovine, they don’t always pull together.

In addition to their names, oxen are also identified by their position in the yoke: the animal most favored by the driver is the nigh ox, always on the left, while the off ox is always on the right. The nigh ox is usually the senior animal and takes the lead in pulling the load.

Brain hemispheres also have names – left and right. For most of us, one or the other is our nigh hemisphere as it seems to be the most dominant in our behavior, but we favor it more because of who we are than its location. So for effect and fun, I’ll be referring to our brain hemispheres as our nigh ox, and our off ox.

According to experts, when we think more logically, rationally, and analytically, like an engineer, the left hemisphere is the dominant, nigh ox. For someone more creative, intuitive, subjective, and emotive, the right hemisphere is pulling the hardest as our nigh ox. Gender also seems to play a role in our nigh/off predisposition. But I’m leaving that angle alone today as a tangent potentially fraught with peril – for me.

All of this brain stuff might be unremarkable to small business owners if it weren’t for two things: 1) As leaders, we’re called upon to perform and respond to issues that are closer to our off ox than our nigh ox; 2) regardless of our nigh ox, we have to work with those whose behavior favors the other side of the brain yoke. Let’s take a look at examples of how these two realities manifest in the marketplace and in our small businesses.

As a small business owner, you likely won’t have the luxury of favoring one ox over the other for very long. Regardless of which brain hemisphere is your nigh ox, any given day is filled with demands on both, and often simultaneously. For example, developing a marketing campaign causes the right brain to take the lead with creativity. But your left brain will be pressed into service by the cold, hard analysis of media buys, demographic strategy, and ultimately, operational fulfillment of the business your plan generated.

The good news is that as your business grows, you can look forward to delegating your off ox work to an employee whose oxen are opposite yours. But as the leader, the small business reality is that you must be able to successfully work and do business with people whose nigh ox is your off ox. For example:

• If your nigh ox is right-brain creativity, you still have to employ, manage, and work with left-brain accountants and engineers.

• If your nigh ox is the by-the-numbers, detailed analysis-loving left brain, you’ll have to suffer gladly the seemingly non-linear expressions of those whose nigh ox pulls from the right side of the yoke. Indeed, a critical counter-balancing trait your nigh ox desperately requires.

But all of that is inside the organization. Outside your four walls, you have to be able to quickly assess which ox any particular prospect or customer favors. For example, you no doubt sell stuff desired by customers of both ox yoke configurations. Even though the two groups buy the same product or service, they likely lead their purchasing process with the side of the brain that’s nigh to them. Consequently, regardless of which ox is nigh to you, you’ll need selling skills to help you lead with the other.

Although in the minority, there are whole-brain individuals whose brain hemispheres pull together, like having two nigh oxen. Members of this group are naturally well-suited for small business. But whether by protoplasm or by practice, more than any corporate CEO, a small business CEO has to perform like a whole-brainer to deal with the bi-polar demands of the workplace and the marketplace.

Write this on a rock … Small business owners are required to behave as if they have two nigh oxen.

In this space in May 2020, I predicted that there would be an increase in baby boomer-owned small businesses for sale in the coming year or so. As you’ve likely seen, 2021 reports are coming out on how the pandemic has weighed heavily on the retirement motivations of all Boomers, including the business owners. And that change of plans for these owners could become opportunities for the younger generation of entrepreneurs.

So, as you consider this tend and associated opportunity, you’re likely to think, “Hey, I’ve made big purchases before – a sofa, a car, a house – this can’t be that different, right?”

Wrong!

Paraphrasing Mark Twain, the difference between making a large consumer purchase and buying a business is like the difference between lightning and a lightning bug.[Continue Reading]

What is our value proposition?

For 10,000 years, during a period I call the Age of the Seller, answering this question was the focus of every business as it went to market. Indeed, customers refined their search for products and services down to the semi-finalist sellers based almost entirely on components of the classic competitive value proposition: price, product, availability, service, etc.

But then something happened.

The Age of the Seller was subducted by The Age of the Customer. In this new era, where value is now presumed, the prime differentiator is no longer competitiveness, but rather relevance. Today the question every business must focus on when they go to market is: What is our relevance proposition?[Continue Reading]