One of the things we work on with our clients and business owners is developing systems for their business.  It’s critical to build a systematic approach, figuring out the best way to do something and making sure it’s done that same way consistently…regardless of who’s doing the work.  Often the easiest way to rollout that kind of systematic thinking is to develop a checklist.

I just finished reading The Checklist Manifesto by Atul Gawande. It’s a great read and a lot more entertaining that I thought it would be.  Gawande is a medical doctor who decided to investigate the effectiveness of Checklists and how if they could be applied to the medical profession.

My experience with doctors is that they traditionally aren’t great writers or story tellers (although to be fair, I would much rather they be great doctors first…).  Having said that, Dr. Gawande writes in a way that makes it very easy to read, telling several stories to help illustrate his points.

He begins by clarifying the difference between errors of ignorance (when we don’t know enough) and errors of ineptitude (when we don’t use what we know properly) Then he leads you through the findings of his research he accumulated while writing the book.

He started with the aviation industry and Boeing…where they have championed the idea of effective checklists for over 75 years.  It’s not by accident the chance of dying in a plane crash is 1 in 25 Million. If there is the potential for something to happen in the air, chances are pretty good there is a checklist nearby the pilots will be able to refer to.

What his book points out is that it isn’t that people don’t know what to do. It is that it’s almost impossible to be prepared on your own…to know what to do under any circumstance without a framework to refer to. He isn’t discounting anyone’s knowledge; it is having a guideline that keeps you from missing the obvious.

If you are a fan of Van Halen, you will learn the real reason that David Lee Roth requested all the brown M & M’s be removed from their candy dishes back stage. It had nothing to do with his ego. Another great story is Walmart’s ability to respond after Katrina flooded New Orleans.  Both stories driven by the power of using checklists in creative ways.

Building a checklist doesn’t have to be overly complex – here are the 3 high level steps:

Development => Drafting => Validation

A couple of the take-a-ways on building a checklist is to keep it simple and talk in the language of the people who will be reading it. He even provides a Checklist for Checklists to help guide you through the process.  Obviously he’s a pretty methodical thinker…but he’s also an interesting guy – check out this interview he did with Stephen Colbert to get a better feel for why he’s so interested in this topic (and why it makes sense for you as well).

Could you implement some checklists?

The challenge with implementing Checklist with professionals in any industry is that you risk insulting their intelligence because they feel they already know all “the stuff”. Why do they need a list? I guess, that may be a question to ask the 155 people of Flight 1549 who landed safely on the Hudson River on Jan. 14^th, 2009.

As you start the New Year are there areas in your business where using a simple Checklist could reduce the chance for errors?  If you need some help, don’t be afraid to ask. If you already use Checklists in your business, I would love to hear some success stories – share them below.

Happy New Year!

Chris Steinlage, Kansas City Business Coach.

Photo by The U.S. Army

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If you’re like a lot of business owners and entrepreneurs that I’ve talked to recently…you’re feeling pretty tired.  One guy described it as feeling stretched thin.  Worn out, dragging, physically and mentally drained…and all for good reasons!  Let’s face it, for most of us the last 2…maybe even 3 years have been challenging in many ways.

However it’s a new year and NOW is the absolute best time to start making great things happen for yourself.  (And if you’re worried…even a little bit…that 2012 is the end of the world, the super smart folks at NASA can reassure you there’s nothing to worry about!).  The way I look at it, you’ve always got two choices, you can stress and fret and let the world beat up on you, or you can choose to go out and build your own future.

Where to start?  Here are a few ideas that will help you kick off the New Year the right way.

Play to your strengths

As a business owner you have to wear a lot of hats, everything from IT support to accounting and customer service.  Early on you didn’t have a choice, you do pretty much everything, but as you grow and find some success you have to find other answers or you will collapse under the work. 

If your goal is to grow your business and get more enjoyment out of it, then you have to start playing to your strengths.  When you’re focusing on things you’re really good at, everything seems easy and time flies.  When you’re spending time on things you’re not particularly good it, it’s a struggle and no fun.

What are the 1 or 2 things about your business that you absolutely love?  The parts where you make a huge difference?  What would it take to have you start spending more time on those aspects of your business?

Conversely, what are the 1 or 2 things about your business that you dread doing or just don’t do very well?  What would it take to delegate or outsource that work?  Yes it might cost you some money, but that will be more than offset by the gains you’ll have from investing that time and effort into your strengths.

Focus – what’s most important right now?

One of the reasons you’re feeling tired is that you’re trying to do too much.  Too many things are at the top of your list as critical items.  You work hard, but because you’re spreading your time and attention across 10…maybe even 20 different activities, you’re not getting anything done.  Which would make anyone feel tired!  It’s time to start thinking about doing less!

Take a hard look at what you want to achieve this year.  Out of all the things you could spend your time on, what are the top 5 things you could do that would make the biggest difference to your business?  That list might include eliminating a constraint (i.e. hiring more help, streamlining processes).  That list might include generating more leads and opportunities (developing a marketing plan, more purposeful networking, emphasizing specific marketing tactics).

Whatever you think it is – write down your top 5 priorities for the year and and focus on getting those 5 things done. 

It can be really difficult to prioritize and narrow down your list, but I guarantee you will see a lot more progress and feel better about it if you can stick with a focused approach.

Give

When you’re trying to make things happen, it’s easy to fall into a taker’s mentality.  To focus on what you need from other people in order to win.  Here’s the thing…it’s completely counter-intuitive, but if you really want to succeed, your best bet (and shortest path) is to focus on how you can help others out first.

You build fans, friends, relationships and referral partners by helping people out.  You should always be giving value.  Find out what someone needs…and then help them get it! 

Try this – identify those people who could be great connections for you and figure out how you can help them.  Don’t ask for anything in return, honestly go in with a giving mentality.  (Read the Go-Giver if you want some inspiration on this idea).  Not only will you feel good about yourself, but you will be surprised at the unexpected doors that open because of your efforts.

Reflect and be grateful for today’s gift…

It can be really difficult to find perspective…the big picture that helps propel you in a positive way through good days and bad.  If you’re just treading water and not looking at the big picture…not consistently thinking about why you do what you do, then it’s going to be exhausting. 

Conversely, if you can get into a mindset of purpose and meaning, a lot of things start falling into place.  Obviously you have to find your own answers, but this short TED video from Louie Schwarzberg might give you some ideas.  Check out Nature. Beauty. Gratitude. for a lift.

There are plenty of days when things are going wrong that you’re not likely to feel grateful, but imagine if you could carry that feeling around all the time…pretty powerful stuff.

Challenge

Here’s my challenge to you – give the 4 ideas above a real shot in the next few weeks.  Spend time thinking about and implementing them into your life and business.  Then let me know if you can sense a difference in your progress and how you feel about it.

What other ideas would you recommend for getting off to a great start in a new year?  I’d love to hear your thoughts in the comments below.  Seriously – let us know what you think.

Shawn Kinkade  Kansas City Business Coach

Photo by Stuck in Customs

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The end of the year is a great time to think about money – today we have a guest post from Carolyn K. from the BlogContentGuild.com – take it away Carolyn.

The holidays have descended upon us, and the end of the year is rapidly approaching. If you are a business owner, you’ve probably noticed how difficult it can be to manage cash flow around this time of year. One of the greatest things about November and December is that your sales usually go up during these months. One of the worst things about this time of year is inventory management and order management become more difficult largely because of all the sales you you’ve made.

Here are some tips to help you control your cash flow this holiday season:

1. If you sell goods, double-check your inventory every day. Don’t solely rely on the stock information logged in the computer. Clerical errors are easy to make, and you could end up thinking you have enough of a product to go around when you simply don’t.

2. Make sure you ship orders or deliver services to customers in a timely fashion. Customers don’t want to wait around for you just because it’s a busy time of the year. They expect what they ordered to reach them as soon as possible, just as they would expect any other time of the year. You and your employees may need to work overtime around the holidays to ensure that customers are satisfied with your swift service.

3. If your customers pay you on a monthly basis, make sure you call or email them to remind them about their payments in November, December, and January. These months are when customers are least likely to pay you on time because they have a lot going on in their lives and many of them are low on cash. However, the health of your business during the holidays may depend on payments received.

4. Have a talk with your employees about stepping up their game around the holidays. Everyone at the company needs to be on the same page and devoted to accomplishing all necessary goals before Christmas and in between Christmas and New Years. You might want to ask employees to work overtime for a few Saturdays just to make sure everything gets done.

5. Don’t be too hard on yourself. Mistakes happen. If you and your employees work your absolute hardest during the holiday season, your company’s cash flow situation will remain favorable.

Some great ideas from Carolyn – we’d love to hear your thoughts on holiday cash concerns.  Let us know what you think in the comments below.

Shawn Kinkade  Kansas City Business Coach

Photo by TibChris

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It’s that time of year – the end of the calendar year and for most the end of the fiscal year. For many businesses, when it comes to their financial statements, it’s the time of year spent reviewing their “numbers”. 

In fact, it’s likely that small to medium sized business owners spend more time looking at their financials between Christmas and New Year’s, than any other time of the year. Why? Because it tends to be a slow time of the year (unless you’re in retail), it’s planning time for next year, and everyone is anxious to see how their year ended, even if everything isn’t entered yet.

However, if you’re like most business owners, you probably didn’t get into business to spend all day looking at financials. You got into business to deliver your product or service. The financials are just a by-product and your accountant pulls information off them to keep Uncle Sam happy. Sound familiar? You are not alone – most business owners have a real fear for numbers!  You know they’re important, even if they’re sometimes baffling, but it’s likely you aren’t really learning what you need to from those numbers…!

Try This

The basics are important…but you need to go deeper than just the accounting reports or the tax impacts that your accountant is looking at.  This year, as you look at your Balance Sheet, Profit & Loss, and Income Statements, try focusing on questions like these:

- Did I really make any progress this year?   (How do I know?)

- Why do I have less cash in the bank but my sales increased?

- What areas of my business generated the most revenue?  The most profit?

- Is my spending in line with other companies that provide similar products and services?  (If you’re not sure…we have a really cool financial benchmarking tool that can help you figure that out – call us!)

- Are my employees, department, or staff generating acceptable amounts of revenue for our industry?

- What kind of Return on Investment did I get on my marketing investment this year?  What worked the best?  What was worst?

The list of potential questions is long and they are all valid and yes, there are answers. Unfortunately instead of buckling down and finding the answers, many business owners get overwhelmed and shift their focus back to delivering their product or service, because after all that is why they got into business in the first place. Right?

If you want your business to succeed long term, don’t fall into that trap. If you don’t understand what the numbers mean, raise your hand and get some help. If you do understand your financials, but you aren’t sure if they mean you’re doing good or bad or you struggle to figure out where the opportunities lay for improvement, get some assistance. A fresh detailed Financial Analysis of a business can be an incredibly enlightening and profitable experience for a business owner.  Sometimes a 3rd party can see things that you’re too close to (or help you ask questions you might not have thought about).

Do you know what to look for in your financials? Besides sales and profits, what are the drivers that you scrutinize? Feel free to share your comments below.

Chris Steinlage, Kansas City Business Coach

Photo by MeddyGarnet

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From the Kauffman Foundation’s Sketchbook – Three Things!

This week we are celebrating the 3rd annual Global Entrepreneurship Week, started by our hometown Kauffman Foundation.  With all the focus on generating great ideas and starting up businesses, I wanted to pass along some great advice from business owners and entrepreneurs who made their jump in the last few years.

Making that jump to start your own business takes a lot of guts and the more you can learn from those who have done it, the better off you’ll be. To that end, I did an informal interview with a few of my Peer Group Advisory Boards and asked them simply:

“What’s the best advice you would give someone who’s planning to start a business now?”

Here’s the summary of their responses in no particular order.

1. Enjoy the upside to owning your own business – you’re in charge and you get the freedom and control to do what you want to do. Additionally you have the opportunity to build something that’s all yours.
2. Building a business is complex and you aren’t going to be an expert in everything – don’t be afraid to ask for help along the way.
3. Find a mentor. Someone you can bounce ideas off of, who can help you get perspective and hold you accountable.
4. You’ve got to be flexible…the market will change and your understanding of the market and your business will change as well. Be prepared to adjust your course.
5. Do what you can to find multiple revenue streams, more ways to generate money. If you only have one product or service, it’s likely you’ll get stuck and it’s good to have something to fall back on.
6. Even though you’re in a hurry to get started, take the time up front to really plan things out. Your upfront costs and decisions can make or break you.  Take the time to make sure it’s money well spent.
7. Understand your financials and get accounting and payroll help as soon as you can afford it.
8. Have patience, things will take longer and cost more than you think
9. Make sure you have enough financial runway so you’re not panicked or have to shut down if things take longer than you expect to get off the ground.
10. Whatever business you’re in, you’re in the business of marketing first – if you can’t position and market your product / service effectively not much else matters.
11. Make it your focus to add value with every contact you have (clients, networking contacts, pretty much everyone).
12. Be clear on what you’re getting into when you start a business:  Long hours, challenges outside of your comfort zone and a lonely path. It’s a tough challenge (but worth it when you succeed).
13. Get comfortable with risk and uncertainty.  It will be a while before you can count on a regular paycheck (like possibly 12 to 18 months).
14. Make sure you’ve got family support and they’re excited about what you’re doing.
15. Build connections (real relationships) – networking and building the right win-win relationships is crucial to long term success.
16. Give yourself a clear go / no-go date to help you manage the bumps in the road. If you have a bad month early on, you still have time to recover because you haven’t hit your date yet.
17. Be clear on why you want to create your business…if you’re not excited about what you’re doing, no one else will be either.
18. Make sure you create and work off of a written business plan (can be as simple as a couple of pages, but a plan that covers where the money comes from and where it’s going).
19. Starting something isn’t easy and it isn’t quick – it takes hard work to succeed.
20. Have faith in yourself, when things get tough you have to push through.
21. Your business has a gestational age…despite your full commitment few will take you seriously until you’ve been around at least 9 months…sometimes much longer.
22. Read the E-Myth and be aware of your mix between Entrepreneur, Manager and Technician (and understand what that means).
23. Setup an advisory board for your business – people you trust who will tell you hard truths and encourage you.
24. Figure out if you have the disposition to be an entrepreneur. Look for clues in your past – if you’ve never taken ownership and pushed to make money independently it will be tough to succeed in your own business.
25. Passion trumps perfection, you can’t wait for it to be just right  you have to get out there and start making things happen.

There’s nothing as challenging or as rewarding as creating your own business. And a big part of that challenge is getting your new business off the ground. It’s not for the faint of heart, but the above advice can help you succeed in the critical first year.

What advice above resonates with you?  What’s the best advice you’ve heard for entrepreneurs?  (Or business owners in general?)  Share your thoughts in the comments below.

Shawn Kinkade  Kansas City Business Coach

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