Leadership

America Began With Freedom And The World Is Better For It

July 4, 2023 by Jim Blasingame

The first Plantagenet King of England, Henry II, is important to America’s small business owners because he’s considered the founder of a legal system to which entrepreneurs owe their freedom to be.

His intelligence only exceeded by his ambition, Henry’s attempts to consolidate all of the 12th-century British Isles under his rule necessitated the need for order. And while his motivations were for his own political expediency rather than to empower the people, Henry’s subsequent reforms actually gave birth to the legendary English Common Law, which ultimately replaced elements of the feudal system that included such enlightened practices as trial by ordeal and inquisition.

By the 18th century, [Continue Reading]

Feed Your Spirit And Starve Your Alligators

June 29, 2023 by Jim Blasingame

Small business owners know all about that metaphorical business reptile – the ubiquitous alligator. They slither in from everywhere, continuously chomping holes in your business, tearing apart projects, taking a bite out of performance, and eating away at momentum.

We know three things about these caustic crocodilians: 1) every small business has them; 2) they don’t go away on their own; 3) besides the operational intrusion, they take an emotional toll. And as good as we may get at minimizing the business damage alligators can cause, we’re too often not as good at dealing with that emotional thing.

As the CEO of your business, if your enterprise is to survive, let alone flourish, you have to deal with each alligator that pops up. To paraphrase Rudyard Kipling, your business’s sustainability and organizational effectiveness depend on the ability to keep your head when all around, hungry alligators are trying to take it off.

To keep your head and at least stay even with the alligators you must do three things. [Continue Reading]

Are You Prepared For The Next Business Interruption?

April 9, 2023 by Jim Blasingame

This year marks an ignominious 20th anniversary. On August 13, 2003, a single outage in the electric grid cascaded across eight northeastern states, putting 55 million people in the dark for days, and thousands of businesses out of business. The Great Blackout of ’03 was a catastrophic reminder that we’re all one nosy squirrel in a transformer away from an instantaneous, put-you-out-of-business event.

Two decades later, the evidence isn’t in favor of less exposure for the next 20 years. Consider this report from CNBC: “The FBI warned Russian computer hackers had compromised hundreds of thousands of home and office routers.” And this one from the Department of Homeland Security: “Russian government cyber actors have been targeting U.S. critical infrastructure sectors, including energy, nuclear and commercial facilities, since at least March 2016.” And more recently, experts allowed that the Chinese balloon that recently circumnavigated the U.S. could have been carrying an EMP, or electromagnetic-pulse device, that when detonated, essentially fries the electric grid below.

Prior to 2003, most businesses surveyed reported they were aware that a business disruption/interruption was possible, but incredibly, they also admitted they weren’t prepared for one. Thankfully, that response is different these days, as one of our recent online polls indicated. [Continue Reading]

The CEO Question: Where Is My Company Going?

March 30, 2023 by Jim Blasingame

In a column a few weeks ago, I pointed out that every business, including small ones, has assignments that can only be performed by the Chief Executive Officer (CEO). In that article, I covered two of those Big Jobs:

1. CEO strategic responsibilities are not optional.

2. Small business CEOs have to periodically transport themselves from the operating trenches to a 30,000-foot strategic orbit.

There is the third Big Job that’s the sole domain of the CEO, and it’s what we’re going to cover now.

3. The CEO’s three Big Pictures: Where have we been? Where are we now? Where are we going?

The last part of this Big Job, “Where are we going,” becomes easier if you focus on what I call the 21st-century Big Four Factors: Bricks, Clicks, People, and Capital. Take a look at these handy parameters and let them help you focus better on this CEO Big Job.

BRICKS

Location and space are considered for a span of years: one, three, five, twenty, etc. What will your operation need to look like in five years? How long will your current location serve you? Will the physical space align with your strategy? What infrastructure and equipment will you need in one year, or five? Your future square footage requirements per dollar of revenue will likely be different in the next five years than in the past five.

CLICKS

This is both internal and external technology. Internal is hardware, software, networking, and connectivity required to both buy and sell efficiently and productively. External is the technology you ask customers to use in order to do business with you. This timeline is shorter than BRICKS; usually months or a year or two. Be prepared for this Factor to increasingly occupy more of your time every year.

PEOPLE

The line between consideration for PEOPLE and CLICKS is becoming increasingly blurred, especially regarding technology acquisition to mitigate the lack of available qualified employees. What will the company need humans to do in one, three, or five years? How many people and what kind of talent will you need? What kind of technology and training will team members need to meet those requirements? How will technology adoption impact the organization chart? Which jobs require employees, and which could be filled by an outsourcing contract?

The second part of PEOPLE is customers. What will your customer profile look like in one, three, or five years? What will be their expectations? What do you have to do to meet those expectations with relevance, not just competitiveness?

CAPITAL

How will you fund the future? What financial management systems and standards will you need? What combination of retained earnings, debt, and investment will produce a successful capitalization strategy? What do you need to know about new funding sources?

Only someone filling the role of CEO can ask and find answers to these strategic questions. Who’s asking these questions in your business?

Write this on a rock … If the buck for your business stops on your desk, you’re the CEO. Do the job.

Small Business Owners Are Still Crazy After All These Years, Thank God

February 2, 2023 by Jim Blasingame

“Still crazy after all these years.”

That’s the title of a 1975 song and album by the legendary Paul Simon. Hearing that song – for the zillionth time – makes me think about what makes small business owners different.

It’s the crazy way they look at the world.

Entrepreneurs think about challenges, imagine outcomes, appraise risk, project potential, and measure all of that against their resources and themselves, differently than everyone else. And when they decide to move forward, [Continue Reading]

Success Will Come From Relationships You Build With People

December 19, 2022 by Jim Blasingame

Dave was the fifth of twelve children raised during the Great Depression. His father worked at a sawmill and was a part-time basket weaver.

Dave had some problems: He was a stutterer, he had epilepsy, plus a learning disorder, all of which prevented him from graduating high school until he was 21. How do you like Dave’s chances in life so far?

But Dave was a good employee: first a Fuller Brush salesman and next a route man for two bakeries. Then, with all of his personal challenges, he purchased and successfully ran a restaurant and a grocery store.

Remember Dave’s father’s part-time basket weaving? Well, he started selling baskets: first from his father’s hands, and later from Dave’s factory. Oh, that’s right. You didn’t know Dave had a basket factory. Well, it was the basket factory Dave sold his two very successful businesses to buy. Turns out Dave had serious entrepreneurial sap rising in his bark.

Dave’s friends, family, and bankers were incredulous. Why leave a successful and sure thing to make baskets? By the way, they knew Dave didn’t know anything about how to make baskets himself. Would you have invested in Dave?

We now know that Dave also had vision. He envisioned a world that would need baskets – lots of baskets. And Dave Longaberger wanted to fill that need. [Continue Reading]