It was a perfect day to get out of the sweltering valley heat. On a somewhat “typical for July” 102-degree day at home and the Sierras only an hour-and-a-half away, my wife and I decided to drive up to Pinecrest Lake for the day. At about 11:00, we decided to take the 4-mile hike around the lake. The weather was perfect, the lake was filled to the brim, and the river was rushing into the inlet. There were also several hundred other people who had the same idea as we did, so the trail was crowded with weekend warriors.
Note the consumer information and the "free water for your dog".
At about the 3-mile mark for us, we came across an oasis… Lakeside Lemonade. Oh, we had hiked past a lemonade stand earlier on our hike, but we weren’t compelled to stop. This stand was different, though, as three energetic entrepreneurs (Cal, Beth, and Carter) had set up, not just a lemonade stand, but a business. We pulled up a seat in the cushioned chairs they provided and soaked in the things that made this stand different.
These kids had put together a customer experience for the weary mountain trekker, so much so that they had created their own marketing buzz. As one family walked up, the father blurted out, “We’ve heard about you!” What entrepreneur doesn’t cherish hearing those words?
I took note of the business principles that had been employed in this operation. Of course, they had a desirable product in a great location. But, they had also employed creative pricing practices, customer care services, and consumer information. They had even “gone green” with their “Recycling” and “Compost” waste baskets.
Yet, even with all of these practices in place, one thing stood out that made their business very difficult to copy.
PASSION!
These entrepreneurs had an engaging energy that was fueled by their desire to make this business work, as evidenced by the tremendous pride they took in what they had accomplished. They told us how they had added cookies to their product offering as a response to customers’ suggestions last year. Their faces beamed when they showed us the cash box they had invested in with part of their profits.
To all business owners…!!!
Remember the passion you had for your business when you first started it? The pride you felt in your product or services to your customers? The enthusiasm you had when you went to work each day, if you could even call it work?
Do you still have it? If not, take a hike… around Pinecrest Lake, and get reenergized. Your business will thank you.
To Cal, Beth, and Carter… With your parents’ permission, I would love to add your picture to this article. They can email me at mfox@gccpas.net and we’ll work it out. I wish you all the best and congratulate you on a successful venture. I look forward to seeing what you have in store next year. Who knows, maybe a franchise on the other side of the lake?
As I was reading the latest blog on our website, I got to thinking about my recent road trip and the thought that crossed my mind as we drove home that last day…
We started out on Highway 99, worrying only about watching the other drivers and paying attention to our own driving to make sure we were safe. It didn’t take but a few hours, though, before we not only had to pay attention to other drivers and ourselves, but also make sure we were paying enough attention to the surroundings because there were now “jumping deer” added to the mix. Jumping deer! Jeez..I’m trying to learn to drive a new vehicle (big truck), I’m used to driving a little bitty car, so jumping animals weren’t welcome at this point. However, my opinion wasn’t asked so I dealt with what I was given.
Not long after that, we added “jumping elk” to the mix. (Jumping elk! ”Really, jumping elk?!? Oh man, kiss the vacation goodbye if that were to happen” was the thought that flashed at the first elk sign. At 65-70 miles an hour, a Chevy Sierra + jumping elk = I’m going to be hurting when it’s all said and done.)
(Needless to say, I was thankful and simply smiled when I saw the “cow crossing” signs. No big threat there, right? At least you can see a cow coming at you.)
At this point, and we’re still only day one into our trip mind you, I’m wondering how I was going to manage:
a) watching ‘the other guy’,
b) paying close attention to my own driving in an unfamiliar vehicle (thank goodness for cruise control),
c) anticipating the moment that a deer was going to jump out at me, and finally
d) anticipating the same for the even larger jumping animal – but, still not worried about the cows
Day seven is here and it’s our last day on the road. We had had a wonderful road trip so far - seen beautiful and awesome sites, and managed not to hit or be hit by a deer, elk or cow. Driving through the Sierras, through storm clouds and rain, surrounded by majestic snow-covered mountains, we came upon a sign that scared the day-lights out of me and made me realize that jumping wildlife was a cake walk.
DO NOT STOP
AVALANCHE AREA
Yeah, sure, o.k. Not a problem – NO stopping here – go faster! I got it!!
When I finally managed to get over my fear (well past the last DO NOT STOP sign as I’m a tad bit claustrophobic and ‘buried in snow’ wasn’t a look I was going for), I realized that all those signs along our journey had been reminding me of the messages that we send out in our blogs.
After all the miles (almost 2,000), we had continually been reminded to watch closely to what was going on around us at all times. We were reminded that life, like business, tends to throw those “little” things at you that you must always watch out for to make it home safely. From slow-moving cows that are easy to see and avoid, to an avalanche getting ready to drop and possibly bury you. You may not always get lucky and get the cow, but you can be prepared to move, and move pretty quickly, should it be the other!
With but the thinnest layer of protection, opposition set on maiming you swarms in at a pace that gives you only the briefest moment to make a decision. Your window of opportunity closes quickly as you must hit a target no more than one square foot while on the run.
No, you’re not Jack Bauer… You’re an NFL quarterback.
Somewhere along the line, I read about the progression a quarterback must make in transitioning from high school to college and, finally, to the NFL. In order to succeed, the quarterback must deal with changes in these four factors.
The increased size of the players (and, it so happens, the level of injury threat),
The speed of the game (imagine a 300-lb lineman who can close faster than a used-car salesman),
The complexity of the offensive and defensive plans (who knew Stephen Hawking designed game plans), and finally
The shrinking size of the target the quarterback must hit to complete a pass (high school – 5 feet, college – 3 feet, pros – 1 foot).
In recent discussions with business owners, these same factors have come to mind when talking about how business has changed with our shifting economy.
The risk of being in business has definitely increased. Our local unemployment rate hovers near 20% and we are smack in the middle of the foreclosure capital of the country. Failed businesses line our main business districts.
The rate of change is faster than ever. Technology advances open new opportunities (for both the business and its competitors), new products and services are constantly introduced, and banks have tightened their qualifications for small business financing. Owners must pay more attention to what’s going on around them if they want to succeed.
The business and regulatory environment has become much more complex. Owners must wade through complex health insurance regulations, labor laws, safety and environmental standards, municipal codes and regulations.
The margin of error continues to shrink. Owners who succeeded “in spite of themselves” must now know exactly where to look for increases in efficiencies, new market opportunities, cash management strategies, etc. They must pay attention to the details.
Over the past several months, we have had many opportunities to work with local business owners who have successfully weathered the toughest times and are now seeing opportunities open in front of them. From our position, we have noticed that successful business owners…
stay informed.
use their advisors wisely.
pay attention to details.
know which things are critically important and closely monitor that information.
anticipate changes and plan for the future (both short-term and long-term).
stay fiscally fit so they are healthy enough to weather the tough times and take advantage of opportunities that arise.
“It’s designed to break your heart. The game begins in the spring, when everything is new again, and it blossoms in the summer, filling the afternoons and evenings, and then as soon as the chill rains comes, it stops, and leaves you to face the fall alone.”
A. Bartlett Giamatti, Former Commisioner of Major League Baseball
Ahhh, baseball. Every year about this time I have a brand new love affair with the game. They say, “Hope springs eternal,” and there couldn’t be a better case for that than the beginning of baseball season. Whether you’re a New York Yankees fan, jaded by the expectation of pennants year after year, or a long-time Chicago Cubs fan, still waiting to see your team in the Fall Classic, April brings the promise of hope that “This could be the year!”
As a San Francisco Giants fan for nearly 50 years, I have endured my share of heartaches over the decades.
The sixties, with a tremendous roster, but a string of 2nd place finishes. How could a team of Mays, McCovey, Cepeda, and Marichal not win one pennant?
The seventies… orange softball shirts and orange bills on the caps. ‘Nuf said.
The eighties… I’ll never get rid of the image of right-fielder Candy Maldonado sliding on his rump, successfully turning an out into a game winning triple for the Cardinals. Two years later, God personally stamped his seal on the Giants’ fate with a 6.9 earthquake in the middle of a four-game World Series sweep at the hands of the Oakland A’s.
In the nineties, things got interesting. They couldn’t win the pennant with 103 wins, they were swept in the playoffs by a wild-card team, and they lost a one-game playoff to the even-more-snake-bitten Chicago Cubs.
A new decade, a new millennium, even a new ballpark was needed. Alas, a 3-2 game lead in the World Series and a 5-0 lead in the 7th inning of Game 6 turned around quickly as the Giants lost to a stupid Rally Monkey! Two years after that, yet another playoff loss to the Marlins.
Yet, here we are in 2010 and again I say, “This could be the year!” Even though 52 years have gone by since the Giants moved to San Francisco and they still haven’t won a World Series crown, I am excited about the prospect. I am re-energized by the fresh start, by the young new prospect who lit up AA in some town I only know as a Giants farm team, by the veteran whose glory days are behind him, but who will undoubtedly resurrect his career this year.
So, what is the connection to business or accounting? Is it that we have an opportunity to put the dismal year of 2009 behind us, throw off the bad news of the recession, and start 2010 feeling inspired that we have a chance to make a fresh start, that “This could be the year?”
Success in business lies in understanding the needs of our clients and customers and then providing something of value in response. Sounds simple, right? Our customers will tell us what they want, we take care of it and everyone is happy. Let me use my recent trip to Lowe’s as a quick case study of how this just might not be so simple in real life.
I stopped by Lowe’s one evening after work with a fairly simple mission: get the part I need to fix a broken plug on our vacuum cleaner’s electrical cord. Being the power-tool-inhibited accountant that I am, I knew there was a chance that things could get a little dicey once inside the store… but I was able to find the electrical aisle successfully on my own. I noticed a Lowe’s employee in the aisle and headed over to him with my simple request.
Me: “I’m looking for something to fix the end of a power cord.”
Employee: Blank look.
Me [realizing that this isn’t coming out quite as smoothly as I intended]: “Uh, you know, like where you plug a cord into a wall. I need something to fix that.”
Employee: Blank look, with hint of nervousness.
Me [wondering if I should talk louder, slower, or both]: “You know where the prongs are that go into a wall, and one of the prongs came out so I need to fix it…”
Employee: “Uh, this really isn’t my main area. I’ll get someone else to come over here.” [Exits rather quickly]
Ok, I’ll admit that while I could picture what I needed, I didn’t have a clue how to describe it. Actually, I should have been using the phrase “replacement plug” (which, for the record, I discovered on my own in the next aisle).
So maybe that communication thing isn’t always as easy as it sounds. Think about your customers. How can you help them communicate their needs and questions? Is industry jargon too often a barrier to your customer’s understanding? Sometimes it helps to look past the question to the motivation behind it. What are the unasked questions under the surface? While you may not have all the answers, your customers will appreciate your attempt to speak and understand their language.
They give up pleasure, endure pain, practice at ungodly times of the day, all so they can be a little bit better than they were yesterday. There is no financial payoff, no medal, no crowd of followers. What is it, then, that keeps the non-elite Olympic athletes going, dedicating their lives to pursuing excellence in their particular sport, knowing they will never have a realistic chance to compete for a medal?
My 5th grade daughter is raising a puppy for Guide Dogs for the Blind. Zoria has been living with us for about a year and has taken up residence in our hearts. Since being involved with this organization, I have come to see visually impaired people in a whole new light.
Hoping to see what we could expect from our efforts, we attended a graduation ceremony at the Guide Dogs for the Blind campus before we agreed to raise Zoria. It opened my eyes not only to the puppy raising program, but to my perception of blind people as well. I was characterizing the recipient of a guide dog as “blind.” These graduates were so much more than that. They were forest service workers, musicians, college students, fathers, grandmothers and many other things. In addition, they happened to be visually impaired. This guide dog was going to help them navigate through the world they lived in – not be their lasting impact on the world.
Business is a lot like this. Sometimes we need a “guide dog” to help us navigate through a narrow area of our business. We may be experts in business, but that one area of “blindness” or “near-sightedness” is holding us back. Find yourself a trained guide dog and open up the opportunities around you.
“Confess?” you say, “You’re an accountant. We already knew you were a geek.”
Now, I like to think I hide it most of the time, but I have a passion for math problems, puzzles, and technology. So it’s good to know that there is now a TV show dedicated to people like me.
“Big Bang Theory” is about a group of friends who are physicists at Cal Tech, but they resonate with this accountant’s nerdy side. But, as a business consultant, I laughed my head off during a recent episode that featured process mapping as an instructional method for making friends.
Here’s the setup. Sheldon, the most anal-retentive of the bunch, decides that he needs to make friends with the guy who schedules access to a certain lab. He proceeds to research the art of making friends and ends up using a children’s book to create a flowchart (or process map) to follow during his phone call to the scheduler. While his friends are watching, he calls and follows the process step by step, smugly nodding as the discussion flows right along with his chart. As he reaches the final stage of setting up a common activity to share, the would-be friend declines several offers. Panic sets in for Sheldon until one of the friends in the room recognizes that he’s stuck in an infinite loop, changes the chart, and allows Sheldon to operate outside his predetermined plan.
Needless to say, in business things often don’t go as we planned. We set up a wonderful strategic plan, come up with the tactics to use, and, yes, when we’re firing on all cylinders, we even create a map detailing the process.
What happens, though, when either the situation changes or the “standard process” just isn’t all that great?
Do people stick to the process or do they work around it?
Do they tell anyone that they’ve gone around the process?
Are they allowed to go around the standard process?
Are they free to suggest changes or improvements?
Does anyone listen to the suggestions?
Ultimately, are improvements made to the process as needed?
Process mapping is a wonderful way to capture the current reality of how things are done and identify wastes, but it’s extremely important to have the honest input of those performing the tasks. Only when you know your current process can you create improvements that reduce waste, eliminate redundancies, and allow people the flexibility to provide maximum value to your customers.
Ask your people, let them be honest, and figure out how to improve what they do. Your customers (and closet geeks) will thank you for it.
Last night I ate at the Mesa Grill in Las Vegas, a wonderful restaurant owned by Food Network Star and Iron Chef, Bobby Flay. I was curious and was keen on keeping my consulting eye open to what makes him one of the country’s most famous restaurateurs. In addition to the fabulous food, two things stood out immediately.
Team members know their numbers. In a brief, informal exchange with the hostess, I found out that the restaurant has 217 seats, breaks even at two table turns per evening, has a goal of three turns per evening, and once served a record 732 dinners in one evening.
Employees know their products. The waitress was very quick to recommend only a few items on the menu, but described them in great detail. She told us which dishes were spicier and exactly how they were prepared. She also asked us exactly how we wanted our steak cooked, so she could properly communicate with the chef. The steak was excellent and perfectly prepared.
Your employees crave information about your business and your products. Give them numbers. Let them know how the business makes money. Give them samples of your products and allow them to describe their personal experiences with your customer. You like to do business with real people. So do your customers.
You keep up on all the latest trends. You update your technology way ahead of your peers and competitors. You look forward to the new industry magazines to see what you can do next to maintain your competitive edge. Of course, you put up with your employees’ complaints about constant change and “bleeding edge” technology, but you kind of enjoy the challenge.
So, let me show you cutting edge technology. I was exposed to this video featuring a young man from India, Pranav Mistry, who is an intellectual giant currently working at MIT. Recognizing that humans intuitively use objects and gestures, he set out to combine these natural instincts with computer technology. Imagine displaying a watch on your wrist by drawing a circle on your arm with your finger, taking a photograph by making a square by joining your thumbs and forefingers, displaying a phone keypad on the palm of your hand and making a call by tapping the display with your finger.
The possibilities are staggering. And… he is willing to make the source code open to anyone who wants to advance the technology.
The next time your employees tell you that you need to ease off on the changes, show them this video. Then watch their jaws drop.
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