Three Questions That Will Change the Way You Do Business

Three simple questions. In my work with leaders, helping them decide which of these three questions should guide their time and attention results in a tremendous impact on their business.

SHOULDA, COULDA, WOULDA…

What should I do? This is a question leaders need to ask themselves without shying away from the answer. Do you need to have a difficult conversation with a co-worker? (If so, I recommend Susan Scott’s excellent book, Fierce Conversations.) Do you need to shut down a manufacturing line that’s contaminated? Doing what you should do may not be what you want to do but it’s something that needs to be done for organizational and interpersonal dynamics or to avoid/contain a crisis situation.

What could I do? This is a powerful question for generating options. It expands our world and invites us to consider new possibilities. I recommend leaders set aside a portion of each day to think about the “coulds” alongside other key leaders. Working as a group to consider possibilities generates alignment, builds ownership in the business and establishes or solidifies stronger relationships.

What do I want to do? Asking this question can provide clarity on issues or opportunities that may be emotional or complex. Getting clear on preference doesn’t mean you must act on that preference, but it can guide how you act upon a “should” or “could.” For example, I might want to invest in a new piece of equipment to expand my manufacturing capacity rather than continuing to outsource. My analysis indicates that our contractor delivers excellent product quality at low cost. Logically, I should outsource it. Emotionally, I want to bring it in-house. Addressing all factors (instead of denying or avoiding them) facilitates better decision-making.

Should, could, want. Leaders ask themselves these three questions every day, but learning which situation dictates which question should be asked brings about a much higher level of awareness in decision-making.

Appraise the Value of Your Compliments

“The most exhausting thing in life is being insincere.”  -Anne Morrow Lindbergh

I couldn’t agree more.

Now, that doesn’t mean I am advocating that we all take a page out of Scrooge’s handbook and bring “Bah-humbug” back onto the scene...

Why flood your market with ‘atta boys’ and ‘good job’ compliments?

It’s not that they are not sincere. I am sure you mean that ‘good job’, but what does ‘good job’ really mean? To preserve the value of your compliments, it all comes down to whether or not they are specific enough that the receiver really understands what you are complimenting --  and whether people can really trust that what you are saying is true and free of a personal agenda.

Sincere and specific compliments are hard work. Most people won’t bother. Finding the right words to describe specifically what you appreciate or value in someone else’s actions is not easy. It requires paying enough attention to note the behaviors and then finding the words to describe them with the sincerity you feel.

Every time you give someone the gift of your words, remember, the quality of the gift you give is a direct reflection of the quality of character you have.

Let’s stop accepting or giving gold plated placations …

and instead strive to give the kind of compliments that are so specific and tangible that they are remembered forever.

Who will you give a sincere and specific compliment to today?

Planning for Your Exit Before You Plan on Exiting

It may be years before you are ready to leave your business. You may absolutely love working, and can’t imagine retiring any time soon. Or maybe you want to exit, but you don’t have the financial resources to leave the business just yet. No matter which situation you find yourself in, it is inevitable that you will leave one day. Being prepared ahead of time is crucial to a successful exit from your business.

            Successful owners start thinking about their exit plan now -- long before they plan on actually exiting.  They start by building a successful business that has value to a buyer now! You can build your business two ways: One is defensive and one is offensive. Using a mixture of them both will enhance the quality of your business and ensure that your eventual exit will be a successful one.

Defensive: Although you may have no intention of exiting anytime soon, it is extremely important to “go on the defensive” and be prepared to exit at any time. You never know what the future will hold.

·         The market could take a drastic turn for the better -- or the worse, and it may be time to get out.

·         An offer you cannot pass up may come along unexpectedly.

·         Or in extreme cases, you could fall ill or disabled and unable to run the business

Sadly, we don’t live forever and none of us know when we are going to die. Knowing that your company will be able to function without you in the event of an emergency is important to saving the integrity of the business you worked so hard to build.

Offensive: “Offensively” speaking, you want your company to be one that thrives for a long time, especially after you exit. To ensure that:

·         Put strong systems in place – financial, operational, sales, etc..

·         Make strategic business decisions today. You’ll reduce risks and prepare your business to be more valuable before you leave.

·         Build a strong management team

·         Become less financially dependent on your business in the final years leading up to your exit are important things you can do to build a vibrant saleable business that people will want to buy.

·         Look at the areas in your business that need improvement. Weak links could be detrimental to a profitable sale, so fix them now.

·         Assess your strengths and build on them to increase the value of your company.

Get ahead of the game by planning for your exit now. There is no harm in being prepared many years in advance.

Learning that building a better company today and exit planning are the same thing will ensure that your exit will be a successful one.