1. Saying no is okay.
Saying no is the positive statement. All too often not saying no and going forward is deadly. Saying no may be the most difficult thing to do, it should be done more often. Not saying no costs money, takes time, and engenders distrust.
2 Delay is the deadliest form of denial
Let’s have one more meeting before we agree. Let’s review it one more time. And the litany could continue. This is a corollary of “no is a good answer”.
3 Avoid ambiguity of expectations
Everyone did what they thought they were to do. And everyone was sorely disappointed with each other. Expectations were not met, in fact they were never discussed. It is critical to avoid any ambiguity of expectations. It is essential to have concurrence and then get it in writing with a plan agreed to by all and followed religiously on a periodic basis.
4 If all else fails listen to the customer
This is the problem of both engineers and marketing people. All too often companies just listen to themselves and worse “the market” which is some amorphous entity which does not exist. The worst thing to listen to is analysts reports. They are dated and generally have some agenda beyond understanding the true market potential. One must reach out and talk to customers and see what they really want. That means listening to them even if it is what you may not want to hear.
5 Prior planning prevents poor performance
Planning is a key part of business. Prior planning is the most key. Such questions s what do we need when and what will cause the business t fail are also important issues to plan for. Failure can be precipitated by many factors and measuring failure metrics and having an action plant to counter them is an important part of the overall plan.
6 There may always be rocks from heaven
No one is immortal. The end may come silently, over a long time, or as we say with a rock from heaven. When the rock from heaven falls on a key person in a company the remaining players better have a plan ahead of time. All too often that key person is key because the others are not. When the rock falls the company falls as well. Thus it helps t have a strong a deep team and never have all of them too close together so that one rock can do them all in at once!
7 Listen to a burning bush that speaks
When one sees a burning bush, and then one hears it speaking there are three possible responses: first, I may think I am crazy and just ignore it; second, I may feel fear and run away; third, I may have some curiosity and listen to what it says. Burring bush moments happen frequently in life, more so that we may think. Listening and then taking some action may be the better. if not best, strategy. The burning bush moment may occur when one sees a new technology and when one then hears what the economics of that technology may do to an industry. It may also be when the stock market starts a downward spiral and one has a day or two to bail out. Listen and then act.
8 Any business whose profits exceed that of the cocaine business will soon be taken over by the Mafia
In business plans, new businesses always have very rosy financial perspectives. Also the profits of these new business are unrealistic from the outset. They may also be unsustainable at any level. Thus care in assessing hidden costs and price wars must be taken into account. Profits that are excessively large and occur in a very short period often do not occur. Except perhaps if the legality on one's actions may be questioned.
9 Profit is revenue less expenses, and only cash flow counts
A small corner store in Brooklyn is a excellent example of understanding business. At the beginning of the week you count the cash, and at the end of the week you count the cash. If it has grown it is a good week, if not you are in trouble. Finance is not complicated unless you are playing games to hide bad decisions. Profit is only one of the factors to be considered, cash flow is the only factor to be considered.
10 If the Business is failing, do an acquisition
Whenever a business has problems, especially a big business, they do another acquisition. The market thinks of any lacks of performance due to the transition period, so there is time to hide the developing mess under the smoke screen of an acquisition.
11 Any start-up which has a company headquarters that looks better than the best law firm will soon go out of business.
This rule seems to apply everywhere. If one goes into a start up company and sees expensive furniture in an elegant office with lots of staff and amenities, they are spending money on the wrong thing. It is most likely the ego of the management that has gone wild not the success of the business. The problem also is that the Board has allowed this to occur.
12 You have to be at the bus stop if you want to get on the bus
If you want to be on the bus to success you have to be a the corner stop when the bus arrives. That means that you have to get out to as many places as possible to ensure that you will be at the right place at the right time.
13 Whenever a company builds a grand new edifice, it will soon collapse
Companies have the habit of reaching a point and deciding that they need their own new building. The then commence construction and loose focus on day to day execution. The CEO may be spending more time on the seat cover fabric than on the bottom line. One observation that seems to be very consistent through all economic conditions is that whenever a company decides to spend great amounts on a new corporate edifice most likely it occurs just before a great downturn. Just look at Time Warner, Bear Stearns, MCI, Worldcom, and lists of others. To avoid this plague one should stay in smaller offices or grow incrementally. The best example was the AT&T massive headquarters. By the way, Verizon is moving into that building now.
14 Always have a second exit
No plan is ever fool proof. Thus having second exits, a Plan B possibly, or another way to get around the mountain other than just climbing it is essential.
15 Attila the Hun could get a job as a grief counselor
Selecting management personnel is a difficult tasks but the most critical in any company. All too often the same bad person ends up in the same job that he managed to mess up the last ten times. It is amazing to see patterns repeat over and over again. One would not hire Attila the Hun as a grief counselor if one did a brief check on what he did prior to seeking this position. It is critical to check what people did why the left where they left and if your company wants to have that person, perhaps you do, most likely you don’t.
16 A deal is not a deal until the money is in the bank, for a week
One should no count on something that is one’s sole perception of what could occur. All too often after a meeting with a customer, a vendor, a banker, we all ask each other how did it go and what chance do we have. The answer is that there is zero chance until the deal is done. That means signed, delivered and the money collected. Signed deals are not done until they are done, again money in the bank.
Posts
