Jim Blasingame

Business futurist, award-winning author, speaker and columnist

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On Veterans Day, and every day, let’s recognize all who served

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Veterans Day has its origins in Armistice Day, which was first acknowledged by President Wilson in 1919. The first anniversary of the signing of the Treaty of Versailles took place “in the eleventh hour of the eleventh day of the eleventh month.” Congress made Armistice Day a national holiday on November 11, 1938.

After World War II, Alvin King, a small business owner in Emporia, Kansas, had a problem with the narrowness of those honored on Armistice Day. Al was so moved by the death of his nephew, John E. Cooper, who was killed in the Battle of the Bulge that he, along with the Emporia Chamber of Commerce, started a movement to rename and redefine Armistice Day as Veterans Day. His goal was to expand recognition beyond military veterans who served in WWI. The idea caught on and President Eisenhower made Veterans Day official in 1954.

But who is a veteran? Having a lot of money at stake in the definition of military veteran, since it comes with the eligibility of benefits, the government sticks to a narrow one: someone who served on active duty for more than six months, while assigned to a regular U.S. armed services unit. Unfortunately, this version omits the service of most of the members of the National Guard and Reserves.

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Will small business decide the presidential election – again?

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Three years ago this week one of the most prominent markers of the 240-year American experiment took place: A national election to choose a new leader of the Executive Branch. Since then, a terabyte of words has been written and spoken – often apoplectically – about the Constitutional result of that election: Donald Trump.

Today, on the penultimate threshold of our 2020 quadrennial, let’s consider an oft-overlooked voting bloc that had – and likely will have again – a significant say in the next electoral outcome. I’m talking about America’s small businesses, of which the SBA reports there are over 30 million. Six million are employers who make payroll for over 60 million employees. The rest are marketplace quarks – the smallest business entity – solopreneurs.

Mathy alert. Here’s an electoral calculation rarely contemplated by most people or pundits: Add the first and third of the foregoing numbers and you get 90 million. Allow me to re-state that in context: Ninety million voters. Now add to that sum their voting age dependents – spouses and children – and the small business electoral critical mass easily grows to well over 100 million of America’s 245 million eligible voters. Let’s call that small business cohort “the stakeholders,” because regardless of how they vote, each one has a stake in the future of a small business.

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Intangible motivation produces tangible results

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Imagine that your best employee just resigned. How much will it cost – directly and indirectly – to find, hire, train and get a replacement to the productivity level of your exiting employee? You already know the answer: maybe years. Not a scenario you want to contemplate, right?

There are many reasons why someone leaves a job, but decades of exit interview records show that compensation is almost never the main reason. Consequently, it’s an article of faith that employees don’t leave companies they leave people – usually a manager. That means that such a disruptive circumstance is likely not only preventable, but the solution is essentially one of those intangibles that cost you little to nothing. Often, just some of your time and attention.

Motivation is one of those intangibles, and smart business owners know about its power. They’ve experienced the direct link between motivating employees to be successful in their assignments and the success of their business.

You can become one of those smart managers before a key employee turns in their keys because he or she merely couldn’t come up with a reason to be motivated to stay. Consider these six motivational best practices.

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Revealed: Financial Mysteries Four and Five

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This is the last of a three-part series covering what I call The Five Financial Mysteries. The first three Mysteries were about the relationship between cash, accounting, and profit.

In this article, I’ll complete my attempt to help you avoid becoming part of the business failure statistics. If you haven’t seen the first three Mysteries, be sure to look for the previous two articles nearby. Now, buckle up as I reveal Financial Mysteries Four and Five.

Financial Mystery Number Four
You can get squeezed between vendors and customers.

Vendors and customers are the prime entities you deal with financially every day your business is open. Understanding your relationship between these two – literally between, because your business is in the middle – is the key to cash flow management. The way to avoid getting squeezed is by managing your Accounts Receivable (A/R) Days and Accounts Payable (A/P) Days. Warning: This will get a little mathy, but not difficult IF you have current records.

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Revealed: Two more of the Five Financial Mysteries

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This is the second of three articles on how to prevent your firm from becoming part of the increasing mortality statistics of U.S. small businesses. That’s right. The SBA reports that 50% of small businesses fail in the first four years, instead of five years, as they reported 20 years ago.
 
In this series, I’m revealing what I call the Five Financial Mysteries. Actually, they shouldn’t be mysteries at all – they’ve been around for generations. But with this much Main Street carnage – a 20% increase in startup failures – it’s obvious to me that a lot of people haven’t learned what you must be able to do to sustain your business: fundamental financial management.

If you think you’re an excellent financial manager, then you won’t find any mysteries here. But if you think you could use a little help with your financial management, then this series could be just what you need. Don’t worry, we won’t get too mathy.

In the previous column, the First Financial Mystery was revealed: Cash and accounting are not the same things. Today you’ll discover the Second and Third Financial Mysteries.

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Revealed: The First of Five Financial Mysteries

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This is the first article in a three-part series on how to prevent your operation from joining those who are driving the increasing mortality of U.S. small businesses.

One of the pillars of the American Dream is the ability of any citizen to start a business from scratch, build it, own it and pass it along to their heirs. Research indicates that there are more than 25 million of these dreams-come-true in the U.S. Approximately eight million that have employees, the balance is independent contractors, professionals, etc., and together they create half of the U.S. economy. All of that is the good news.

The bad news is that the rate of small business mortality – when the dream turns into a nightmare – which was once 50% in five years, has now increased by 20% in the past 20 years (U.S. Small Business Administration). The reason for this unfortunate trend is associated with Blasingame’s 1st Law of Small Business: It’s easy to start a small business, but it’s not easy to grow one successfully.

The smoking gun that kills most small businesses is the Founder’s ignorance of or disregard for the financial fundamentals of business. And most of this business carnage could be avoided if every Founder understood what I call the Five Financial Mysteries. In this installment, I’ll reveal the first Mystery with the others to follow soon.

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