I don't think I've ever posted a blog entry this long, but if you read it like I did, you'll forget about time and be so engaged that you read it all. It's from a friend (Schuyler Brown) who consults out of NYC. She graciously allowed me to publish this. More about her work at the end. Broadly, the subject of this is money and life, and based on the questions I've been getting recently, many of you are thinking about just that.
Like many Americans post-recession, I've been taking a close look at my relationship to money. To my surprise, what started simply as a responsible exercise turned into a deeply instructive philosophical journey.
I'd been ignoring the task of addressing my ideas about money for years, hiding behind an image of myself as Bohemian, an artist, a spiritual aspirant. Money seemed something too concrete to factor into my flights of fancy. Even as an entrepreneur I never stopped to think much about money. I worried when I wasn't making it and was jubilant when I was...it was a roller coaster.
It was my daughter's birth two years ago that unexpectedly initiated a shift in my approach to money, because she shifted my entire perspective on the future. Her presence forced me to imagine a future I'd been happy to leave to chance. One day, exiting the subway on my way home, I caught myself with a furrowed brow worrying once again about the numbers in our bank accounts...this time with no regard for my own needs, but for hers alone. I heard a steely voice of resolve somewhere deep inside say, "I never want her to suffer the burden of financial strain." At that moment, I felt my actual walk change. I became more directed.
But it wasn't until an incident this summer....Read More
As you grow, what transitions are useful and even expected? Let’s look at a few that you’ll almost certainly encounter and help you see what might be on the other side of the transition.
One: Hiring for Expertise vs. Money
The first good transition to make is to begin hiring people for their expertise rather than for what they cost you. In the early days, you have a budget and you hire accordingly. You aim for whatever you can get for that price, and that’s the best you can do. There simply isn’t any more money, and expertise takes a back seat to available funds.
Eventually, though, you determine that expertise is more important than money. So you outline what you’re looking for in great detail and you don’t settle for less. You have a budget in mind, but the budget takes a back seat to the requirements for expertise. That means you may bust the budget. But in this scenario, one very qualified person may actually be equally as effective as two less qualified individuals.
Two: From Judging to Shaping
The second good transition to make is to move from judging to shaping the work underneath....Read More
A great client recently asked me to outline my definition of success for their firm. I really enjoyed doing that, and below is a version that you can adapt to your own situation, putting your own stamp on it:
- Partner compensation equals or exceeds industry benchmarks.
- After that is achieved, you still 20% net profit.
- The more entrepreneurial employees are satisfied that their contribution to your gain is recognized and accounted for.
- Partners and employees in key roles will have already tasted competence in the area of your focus, or they will experience it within nine months of joining the firm.
- There will be few or no young employees who value variety over expertise.
- When employees talk about your firm, while still employed, their private comments will be complimentary.
- When partners and employees head out the door to work for the day, they look forward to the challenges, the companionship, and their participation in the overall culture.
- As a firm you will not require extraordinary people....
Forgive me for the ominous subject line of this email, but there are times when it's best to be objective and forthright. I've been talking with the executives of large associations and educational institutions in this field, hoping they'll drop the status quo and beginning offering real help to their members and graduates. So far I've made very little progress, so I'm just going to use my own platform (16,000+ of you).
Look around, think back through the last decade, and make a mental list of the firms you knew that are no longer around. Did any of them fail for lack of creativity? Even if you don't think they were that creative, the answer is a resounding "NO". Here is why those firms--and possibly yours, if you don't listen--will cease to exist, in descending order. I'm going to list seven reasons firms fail, and then seven things to keep a very close eye on.
What to Keep An Eye On
I'm 51, so I figure I'd better get this right pretty soon. :) I think about this a lot, though. The common thread through the last 25 years, though, is that I've worked for myself. That's a lot of years without a safety net, and it's also a lot of years to learn habits that would make it almost impossible for me to work for someone else.
About 20 years ago, though, I put together this list. At the time, I felt like most of my life was ahead of me and that I wanted as many options as possible. So there's very different from each other, and it was just me dreaming one day:Read More
The reason marketing firms fail is not creativity, location, or the marketplace. It’s management ability. Your firm is a direct reflection of you, and you must take responsibility for it. Here are the most common dozen mistakes we see marketing firms make. If you are managing a firm now, you’ll identify immediately. If you are an employee, this might give you some context for the decisions you may not agree with. If you are considering starting a company, this will help you learn from the mistakes of others.Read More
Some decisions are simple and insignificant, like deciding where your desk should be in the big corner office. Others are difficult, but less significant, like what title to give your “new business” person. Others are watershed decisions because they have far reaching implications.Read More
The notion to write about this comes from the fact that there’s been more merger/acquisition (M/A) activity in this field recently than I’ve ever seen in any six-month period. What’s especially notable is that it’s occurring in a difficult economic climate.
For background, over the last 15+ years I’ve been the lead advisor on nearly 150 transactions, crafting 700+ valuations in the process. (If you’d like to use the valuation formula in your buy/sell agreement, you are welcome to do so for free.)Read More
Are you modelling your activities after the public companies in the news all the time? You might double check those business assumptions occasionally to be sure they are leading you in the right direction. We need to filter the steady messages that inform our actions to discard those that will take us in directions contrary to our own goals.
One example is the distinction between how publicly traded companies are run and how your privately held firm should be run. Not recognizing those differences can create heartache and confusion. Here are four assumptions you might want to avoid when emulating publicly traded companies.Read More
After owning a marketing firm for six years and then advising other principals since 1994, one of the unsolved mysteries that still makes me scratch my head is why the vast majority of people in this field fade away from it in their late forties and early fifties. Not only is that unique in the professional services sector, but it’s also a darn waste because these people are smart, hardworking, and capable of having a significant impact on their employees, their clients, and even the world.Read More