Working in Your Business or Working on Your Business

Yesterday I was asked to be the guest speaker at a networking event. The topic I was asked to talk about was “what it looks like when small business owners are working in their business and not on their business”.

I was also interviewed this morning by a journalist for one of Australia’s leading national business publications in relation to the same subject. As I discussed with him, unless you as a business owner can remove yourself from the day-to-day operations, you don’t have a business, you have given yourself a job. The key difference is that the boss won’t complain if you arrive late, leave early or take a day off. That is not entirely a good difference as it touches on one of the main challenges business owners face, namely ACCOUNTABILITY!!!

The focus of the interview however was mainly around processes and systems and I found one of the questions particularly interesting. The question was whether accountants are one of the best advisors for small business to help them with their processes, systems, and working on not in their business more generally. My experience is this: 

• By looking at the business processes strategically it is possible to double company profits of most SME's within 12 months. 
• You can generate more profits by either saving on costs (a finite approach but definitely worth doing) or generating more revenue (infinite possibilities) .... or both, and it is this third way that has the potential for exponential growth due to the synergistic effect of the two at once.
• More efficiency creates opportunity for both more effectiveness and more productivity (more income with the same resources) and the systems that deliver that efficiency provide for rapid integration of new resources to increase revenue even further.

This is partly why accountants are not the best to advise business owners in this way. They are good at strategic financial processes! But that is only one aspect of the business; an important one but back-office and not front-line. 

CFO's (the accountants of big business) are taking on more important roles in large companies and in SME's external accountants are riding this wave. The key difference is that CFO's are focused on what they do best, critical evaluation of numbers, creative manipulation of those numbers within the relevant frameworks (e.g. tax, compliance, governance) and risk analysis in terms of financial exposure. Accountants try to be more and the average small business owner working in his business not on it, like a man dying of thirst in the dessert will gladly accept a drink from the first person to pass. 

But a tiger cannot change his stripes, and whilst every bit as regal as a lion, a tiger will never be a lion. If he does he was probably always a lion who at one point walked through tar-soaked underbrush. The same can be said for accountants and entrepreneurs.

About Paul J. Lange:

Paul J. Lange is a business mentor and business performance coach who helps small to medium enterprise and entrepreneurs to apply big business, enterprise disciplines and solutions to gain a competitive advantage and increase profits. 

Paul's 'Business DIET'© system has helped countless entrepreneurs and business owners around the world to launch start-ups, expand existing operations, and greatly improve bottom lines.

Paul is also one of Australia’s most connected management consultants, and leading business strategists, with a passion for helping corporate leaders, entrepreneurs and business owners who are committed to achieving outstanding results.

Paul’s support will help you to develop strategic direction, implement it, execute and make more money. He will have you starting to work on your business, instead of in your business, right from day one; and if you have already started down this path, he will help you to complete the transition to business owner from business manager.

Web: http://www.paullange.com.au

Twitter: http://twitter.com/pauljlange

Facebook: http://www.facebook.com/pauljlange

Ecademy: http://www.ecademy.com/user/paullange

Klout: http://www.klout.com/pauljlange

Peerindex: http://www.peerindex.net/pauljlange

Empire Avenue: http://www.empireavenue.com/pauljlange

Posted via email from Blue Oceans

Your Immediate Business Potential is the Average of Your Inbox

I made a startling discovery the other day as I reviewed my sent items and looked through my email archives. 

We’ve all heard the concept that you become a product of your environment, and that your income will be the average of your five closest friends; or is it business associates?

Revenue had taken a bit of a dip in recent months and I was contemplating why. This wasn’t the reason I went searching through my email program. It simply struck me, as I looked at the recipients, the number of email threads with specific people, and the number of emails per thread with those people, that I was spending a lot of time talking to the same people with no outcome. 

So I invested some more time in looking back historically and without being too analytical, working off memory instead of comparing bank accounts and running complex formulas in a spreadsheet, I compared income during different periods to the type, volume and complexity of the email traffic. Here’s what I discovered.

I earned more money when I sent less emails to more people. The overall volume of emails during times of higher revenue generation was approximately 23.5% of the total and generated more than 87.3% of the revenue for the period reviewed. BTW I looked back over a period of almost 9.5 years. Also the ration of revenue in for effort expended in delivery plus hard COGS (cost of goods sold) was much higher … i.e. more profitable.

I earned less money, worked longer hours, and was generally unhealthier (later reflection) when I sent more emails to less people. Upon further reflection I realised I was a lot less happy and this rubbed off on my family.

What does all of this mean? Well I’ll leave that to your own individual interpretation. What’s clear to me is that less is certainly more. The clue though is to recognise what you are doing, interpret it in the context of the situation, and   lead yourself out of what could become a very self destructive parttern of behaviour. It is very easy to become wrapped up in a cycle of business busyness with the same people and delude oneself that the outcomes will follow. There is a time when it is appropriate to cut your losses and change direction. One of the greatest challenges is having the perspective to be able to do that at the right moment!

I encourage everyone to look at their email communications or whatever medium it is you use primarily for your business communications and unless you are very specialised in  your field with less than a handful of other people with whom you need to communicate regularly you may find similar patterns. If the patters are the good ones (i.e. lead to high revenue and profitability) keep doing what you are doing. If they are the negative ones, consider adapting your approach to the way you conduct your business immediately.

About Paul J. Lange:

Paul J. Lange is a business mentor and business performance coach who helps small to medium enterprise and entrepreneurs to apply big business, enterprise disciplines and solutions to gain a competitive advantage and increase profits. 

Paul's 'Business DIET'© system has helped countless entrepreneurs and business owners around the world to launch start-ups, expand existing operations, and greatly improve bottom lines.

Paul is also one of Australia’s most connected management consultants, and leading business strategists, with a passion for helping corporate leaders, entrepreneurs and business owners who are committed to achieving outstanding results.

Paul’s support will help you to develop strategic direction, implement it, execute and make more money. He will have you starting to work on your business, instead of in your business, right from day one; and if you have already started down this path, he will help you to complete the transition to business owner from business manager.

Web: http://www.paullange.com.au

Twitter: http://twitter.com/pauljlange

Facebook: http://www.facebook.com/pauljlange

Ecademy: http://www.ecademy.com/user/paullange

Klout: http://www.klout.com/pauljlange

Peerindex: http://www.peerindex.net/pauljlange

Empire Avenue: http://www.empireavenue.com/pauljlange

Posted via email from Blue Oceans

Become a better networker!? No!! Improve your Business

Purpose is lost in the noise

Since when has ‘become a better networker’ been the point to going to networking functions? It seems that most of the ‘networking experts’ out there are stuck in the features and benefits mode of business networking events.  Almost every general business networking event I have attended in the last six years had someone spruiking the ultimate goal that you should ‘become a better networker’.

This approach misses the mark by miles and from what I have observed commonly creates ‘business networker’ drones. People focused on improving their profile as ‘networker’ rather than learning inter-personal skills and leveraging business networking events to add value to their business. Traditional ‘networking experts’ miss the “Why?” and the “Value”.

Think for a moment about how many networking functions have you attended? How about how many of those networking events had a ‘networking expert’ speaker. Someone at the front of the room giving you tips on how to ‘become a better networker’.

Personally I’ve been to loads of them!

The objection I have in respect of the greater majority of these ‘networking experts’ is that they are no better than the average person in the room. They are teaching what they would like to learn the most; not an unknown thing in any industry. Most have bought into their own propaganda about how good they are.

It’s been said that “The only reason to give a speech is to change the world”. I believe that this is true. On the micro scale of a business networking event, I translate this to ‘the only reason to give a speech is to make a difference and have an impact on the lives of the people in the room’.

So next time you attend a business networking event with speaker profiled as a ‘networking expert’ filter out the noise of why you should ‘become a better networker’. Instead focus on the little gems of inter-personal relationship and communication skills that will help you to improve your business. Most of the time they will be there. If you can learn one more skill at each event you attend, you and your business will grow.

About Paul J. Lange:

Paul J. Lange is a business mentor and business performance coach who helps small to medium enterprise and entrepreneurs to apply big business, enterprise disciplines and solutions to gain a competitive advantage and increase profits. 

Paul's 'Business DIET'© system has helped countless entrepreneurs and business owners around the world to launch start-ups, expand existing operations, and greatly improve bottom lines.

Paul is also one of Australia’s most connected management consultants, and leading business strategists, with a passion for helping corporate leaders, entrepreneurs and business owners who are committed to achieving outstanding results.

Paul’s support will help you to develop strategic direction, implement it, execute and make more money. He will have you starting to work on your business, instead of in your business, right from day one; and if you have already started down this path, he will help you to complete the transition to business owner from business manager.

Web: http://www.paullange.com.au

Twitter: http://twitter.com/pauljlange

Facebook: http://www.facebook.com/pauljlange

Ecademy: http://www.ecademy.com/user/paullange

Klout: http://www.klout.com/pauljlange

Peerindex: http://www.peerindex.net/pauljlange

Empire Avenue: http://www.empireavenue.com/pauljlange

Posted via email from Blue Oceans

Become a better networker!? No!! Improve your Business

Purpose is lost in the noise

Since when has ‘become a better networker’ been the point to going to networking functions? It seems that most of the ‘networking experts’ out there are stuck in the features and benefits mode of business networking events.  Almost every general business networking event I have attended in the last six years had someone spruiking the ultimate goal that you should ‘become a better networker’.

This approach misses the mark by miles and from what I have observed commonly creates ‘business networker’ drones. People focused on improving their profile as ‘networker’ rather than learning inter-personal skills and leveraging business networking events to add value to their business. Traditional ‘networking experts’ miss the “Why?” and the “Value”.

Think for a moment about how many networking functions have you attended? How about how many of those networking events had a ‘networking expert’ speaker. Someone at the front of the room giving you tips on how to ‘become a better networker’.

Personally I’ve been to loads of them!

The objection I have in respect of the greater majority of these ‘networking experts’ is that they are no better than the average person in the room. They are teaching what they would like to learn the most; not an unknown thing in any industry. Most have bought into their own propaganda about how good they are.

It’s been said that “The only reason to give a speech is to change the world”. I believe that this is true. On the micro scale of a business networking event, I translate this to ‘the only reason to give a speech is to make a difference and have an impact on the lives of the people in the room’.

So next time you attend a business networking event with speaker profiled as a ‘networking expert’ filter out the noise of why you should ‘become a better networker’. Instead focus on the little gems of inter-personal relationship and communication skills that will help you to improve your business. Most of the time they will be there. If you can learn one more skill at each event you attend, you and your business will grow.

About Paul J. Lange:

Paul J. Lange is a business mentor and business performance coach who helps small to medium enterprise and entrepreneurs to apply big business, enterprise disciplines and solutions to gain a competitive advantage and increase profits. 

Paul's 'Business DIET'© system has helped countless entrepreneurs and business owners around the world to launch start-ups, expand existing operations, and greatly improve bottom lines.

Paul is also one of Australia’s most connected management consultants, and leading business strategists, with a passion for helping corporate leaders, entrepreneurs and business owners who are committed to achieving outstanding results.

Paul’s support will help you to develop strategic direction, implement it, execute and make more money. He will have you starting to work on your business, instead of in your business, right from day one; and if you have already started down this path, he will help you to complete the transition to business owner from business manager.

Web: http://www.paullange.com.au

Twitter: http://twitter.com/pauljlange

Facebook: http://www.facebook.com/pauljlange

Ecademy: http://www.ecademy.com/user/paullange

Klout: http://www.klout.com/pauljlange

Peerindex: http://www.peerindex.net/pauljlange

Empire Avenue: http://www.empireavenue.com/pauljlange

Posted via email from Blue Oceans