Home Wealth Project
Extensive Research On How To Build Wealth From The Comfort Of Your Own Home.
Extensive Research On How To Build Wealth From The Comfort Of Your Own Home.
Sep 22nd
Hey, New York tri-state area folks! Join me this Thursday at the New York Times Small Business Summit.
I will be there along with my friend John Jantsch of Duct Tape Marketing and Will Chen of WiseBread. The 3 of us will be holding round-table Q&A sessions throughout the day, all made possible courtesy of American Express OPEN Forum.
The topics we’ll cover include:
But we can talk about any business topics you’d like to discuss.
In addition to our roundtables, there will be a great line-up of speakers, including New York Times business editors and bloggers, Jerry Greenfield a Founder of Ben & Jerry’s, Shiv Singh, the Social Media Director at PepsiCo, and Robin Chase, Founding CEO of ZipCar.
Date: Thursday, September 23, 2010
Time: 7:30 am -5:30 pm
Location: Hilton New York. 1335 Avenue of the Americas Manhattan
Register: $99 includes all-day pass, plus breakfast, lunch, and cocktail. Register here.
(According to NYT’s Facebook page, you can use discount code FBF10 to get $15 off.)
Twitter hashtag: #OPENNYT
Join Us at the New York Times Small Business Summit
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Sep 10th
| Michael Zimbalist, the Times Co. vice president… the Web and in social media but declined to provide any details about the project to the newspaper. |
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Sep 9th
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The New York Times is developing a personalized, social news service, News.me. The venerable newspaper is partnering with pseudo-incubator Betaworks to… |
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Sep 9th
| Flipboard, which transforms social media feeds into an attractive, easy-to-read layout, has been overwhelmed at times with… |
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Sep 5th
| He said this made him look at new ways to communicate, such as social media like Twitter and Facebook, on which he has a presence. |
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Sep 4th
Want to be the one that makes the big play in business?
Don’t just imagine a single monumental act like a scene from a movie. Instead, plan on a series of well-executed plays.
At least that’s my takeaway from the new book Clutch: Why Some People Excel Under Pressure But Others Don’t by Paul Sullivan, a New York Times columnist who writes the “Wealth Matters” column for the paper. I received a review copy of this book, and was intrigued enough to read and see how it stacks up from a business owner’s perspective. I think Clutch gives good advice for readers looking to understand why some people come through in tough moments — and why others choke.
In Sports and Life, “Clutch” Moments Are All Around Us
Clutch starts with the anticipated sports references, but it inspects sports moments differently from most books. Author Paul Sullivan’s interesting take is that being “clutch” is not just a “triumphant sports moment: the home run that wins the game or the basket or stolen pass at the buzzer…. It’s the precisely executed series of plays in football, not the Hail Mary.”
It’s this approach that makes the book Clutch an appealing aid for developing business leaders. A successful, established business is the result of many acts of growth and development, not just the big sale that saves the business from failure or propels it to new heights. Using this approach can help business owners and employees realize that marketing is a series of plays, that working toward profitability is a series of plays, that social media success is a series of plays, and so forth.
Sullivan sets out to show readers how to learn clutch ability. He describes why people are “clutch” using five main personal traits:
Sullivan does a splendid job of tying examples to his points. Clutch is not necessarily a how-to book like Find Your Zebra. So it may fail those who really need step-by-step instruction in a business setting. But it succeeds in providing good introspection for those who can then figure out how to apply the points raised.
Overcoming the Obstacles to Being Clutch
The most intriguing chapters regard the many hurdles that stand in the way of making clutch plays, such as “pride … an emotion that inhibits many people’s ability to make all kinds of necessary decisions. In financial matters it acts like a smokescreen.” Overthinking and overconfidence are other potential hazards to great leaders.
As one example of overthinking, Sullivan examines why the batting performance of New York Yankee Alexander “A-Rod” Rodriguez declines in the post season despite a great regular season performance. (The performance examined is up to the 2008 season, prior to the 2009 championship … sorry, Yankee fans!). A study of batting averages proves that Yankee Derek Jeter and even Boston’s David “Big Papi” Ortiz comes through in key playoff situations (again, sorry, Yankee fans!). The author goes on about Rodriguez:
“He was great but his problem was what he was thinking when he stood at the plate with the game on the line. Jeter is so great under pressure because he is focused on hitting the ball [and] making the play, and he is completely in the present. A-Rod has often looked like Ken Lewis at a congressional hearing: taut, stiff, not himself …. Could A-Rod ever stop comparing himself to great players and actually be great under pressure?”
The author then considers the challenges overconfidence can bring to decision-making and execution of plans:
Overconfidence is the bigger, more destructive cousin of overthinking …. When someone like A-Rod overthinks the situation, he fails personally, but other teammates can make up for the shortcomings. When a leader becomes overconfident, his choking can be systematic.
How Clutch Applies in Business Life
Sullivan reviews the management of the GM-Toyota NUMMI plant through the eyes of John Shook, Toyota’s first American manager. Shook sees how the “clutch” difference plays out in the management style of the Toyota executive:
The pressure to succeed with NUMMI was immense, but what struck him was how Toyota executives handled it. They used it to focus on their work and did not allow it to cause stress. “Most of our quintessential American leaders – like a Lee Iacocca or a Jack Welch – have this image of deciding from your gut … The Japanese don’t play that game.”
Sullivan also surveys stage fright and the career of actor Larry Clarke (who had a recurring role as Detective Morris LaMotte on “Law & Order”) on how to gain presence of mind needed to perform and to keep the past at bay. Imagine this as an aid in making major pitches before clients and large audiences. The world of finance provides examples of accountability as Clutch examines the decisions of Bank of America’s Ken Lewis and Chase’s Jamie Dimon during the Merrill Lynch and Bear Stearns deals, respectively.
Dimon was the technocratic leader, the man sifting through the numbers and demanding accountability from everyone and himself. Lewis was the throwback to the imperial CEO, demanding respect by dint of his office and the standing of B of A…. In the moment when [Lewis] should have accepted responsibility [for Merrill Lynch] … he punted …. Without taking personal responsibility, a leader can never be clutch.
Most small business owners will want to read the segments focusing on clutch situations with money for lessons in the inner courage to face tough choices.
One aside: The last chapter is the author’s interview with Tiger Woods shortly before Woods’ personal scandal. I did not feel it added a new insight to the examples given, but it did provide a good closer.
What Could Work Differently for a Business Reader
I did wish that Clutch had more specific examples related to small business, such as the experiences that solopreneurs and small startups undergo. Given the high risk of failure in a small business, these examples would have provided a more direct example to readers in such positions. But the diversity of business examples enables readers to understand the points raised.
Also, I felt the segment on women being “double clutch” — due to success in industries that have historically discriminated against them — required more elaboration, since success in diversity often requires a cultural commitment within an organization, one step beyond the personal traits of the leaders involved. Addressing the nuances in business would have been a nice addition — cultural change in an institution may take several “plays” to achieve – but perhaps would have required another book to do justice to the topic.
Read to Know How to Succeed
Clutch is a terrific reinforcement for determining one’s strengths and weaknesses. It shows that performance is the sum of one’s actions over time. It does not have the full psychology and the imaginative elephant-and-driver metaphor of Chip and Dan Heath’s Switch.
But within its format Clutch works well enough in showing what it takes to be successful in tight spots and truly shine in business and in life.
Clutch Helps Business Owners Perform in Tough Times
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Aug 29th
| Experts are saying that Google’s new Internet-calling service must add more mobile capabilities and support for business customers… |
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Aug 25th
You probably don’t need us to tell you this, but starting or running a small business isn’t easy. In fact, if you are looking for an easy life, one without challenge or change in routine, best apply elsewhere because this job isn’t for you. It takes long hours and lots of dedication. But it’s also a lot of fun. In this roundup we look at some advice for the tough times and some encouragement that things will get better. And, hey, there’s even a cool contest announcement with a couple of nice prizes so keep reading.
The customer from hell. We’ve all been there, says Mark Brinn. We’ve all been across the counter–literally or metaphorically, physically or virtually–from a customer who simply will not be placated. Guess what. It’s part of your business. Now here are some suggestions for handling it. Marcana
How are small businesses working today? Small businesses are at the forefront of change today. As innovation occurs, small businesses are among the first to seize upon it finding new ways to use new tools for a competitive advantage. Shashi Bellamkonda discusses those changes in this interesting interview. Washington Business Journal
Exercising your curiosity muscle. Venture capital investor Brad Feld is a firm believer in the importance of curiosity among entrepreneurs. But it’s not just the reflex to try to increase productivity for your daily workload. (Well, it is that too.) But it also can be a great measure of what Brad calls “daily active users” and some of the best market research of what will work versus what won’t. Feld Thoughts
How much can you really learn from the in crowd? Not much, if you ask Fred Wilson. Fred happens to be one of the most recognizable Venture Capital investors around backing big concerns like Twitter. But even if these days he admits he has some approachability issues, Fred knows the value of the path less traveled in business. It’s a good lesson for us all. A VC
Don’t fear the reaper. But the taxman might be another story. Specifically, small business owners fear a decision to let taxes rise next year will hit small businesses in two important ways. First, by increasing the tax rates they themselves have to pay in a still fragile economy, and second, and perhaps more importantly, eliminate the disposable income of potential customers who will spend less on products ands services as a result. WSJ
Have you ever really wanted to get into business blogging? Man, do we have an offer for you! Break out the lap top and tune into some inspiration drawn from your personal business expertise. The BisSugar.com and the Bloggertone online business community introduce the second Sugartone “Sweet Business Blogging Contest”> Get more details including some cool gifts from our sponsor. BizSugar Blog
Are you a thought or a traffic leader? Though Traci Hayner Vanover, a.k.a. the Promo Diva, is speaking specifically about social media, her post might as easily be about anything else in business. There are dangers in focusing on numbers only and a price to pay when those numbers become more important than the value being created. Author Thought Leadership
Surprise! Surprise! You have to market your business. Scott Fox shares this “shocking truth” about online business which really applies to all businesses. (Actually the example he gives is a charity.) No, you don’t need to be crass and “in your face” as some marketers might be. But Scott reminds us in his video that no one cares about the business you run. Making it stand out and making the value clear to prospective customers. ScottFox.com
Could you be getting it wrong? You’ve focused on the important things, tried to build value for your product or service, tried to stand out above the crowd and get your potential customers to take notice and…nothing. When sales don’t happen and prospects don’t become clients how do you know when it’s time to change course? When should you rethink your marketing strategy? Here are five questions you should ask first. M4B Marketing
Who do you turn to when there’s no one else? Let’s face it. Credit is tight. The economy is tough and startups have an uphill battle if they are seeking the money needed to get off the ground or survive. One possibility is to tap friends and family. But wait! This is no handout. Those closest to you deserve and may demand the same attention you would give any investor bankrolling your dreams. Inc.com
Small Business News: Toughing It Through The Tough Times
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Aug 18th
For most of my business life, and probably most of yours, there has been one constant: inflation. Things always cost more tomorrow than today, more next year than last year. Because of this, wages and salaries were always rising too, slowly in some years, or rapidly in others. Getting price increases to offset inflation in costs has been the typical problem—but not lately. Price increases are rare and price decreases are common.
As you wait anxiously for signs of a recovery, your concern must be to arrest the decline of prices (and to reduce costs to match the decline). Otherwise, profitability—or what’s left of it—will suffer.
Inflation
Most people understand inflation. It occurs when more money is created than there is tangible value to support it. With the massive government spending surge and money supply growth in the past year or two, inflation should be a concern. Right now, it isn’t, which is surprising.
The reason that inflation remains tamed is that there is too much idle capacity, chasing an too little demand. When the rate of inflation keeps dropping, as it has lately, that is called disinflation. It is troubling at times, but also manageable if costs can be reduced. Disinflation is not to be confused with deflation.
Deflation
Deflation is a different and more dangerous phenomenon than disinflation. It has rarely been seen (except in theory) in the past few decades. Japan suffered from deflation and it literally crippled the Japanese economy. Deflation is when the rate of inflation goes negative—less money will buy more value—and buyers wait to buy, expecting that the longer they wait, the lower the price goes.
At least one of the causes of deflation is massive global over-capacity, which drives prices down as sellers try to fuel demand with price concessions. Another cause can be adequate capacity combined with a collapse in demand. This cause feeds on itself. With inflation expected, there is a motivation to buy before prices go higher. When facing deflation, the assumption that prices will be lower in the future causes postponed buying and fuels the collapse in demand.
The most apt example of deflation in the U.S. is in new home construction in formerly “hot” markets like Florida and California—where declines in demand reached 75-90 percent. A tremendous amount of construction capacity was built during the boom years. Much of it has disappeared as many companies failed but too much still remains. This overhang of capacity leads contractors to bid lower and lower prices, until there is no profitability left for anyone. Unscrupulous contractors will then start to cut corners on quality.
Buyers realize that this condition exists and hold off on commitments, expecting falling prices from contractors and raw material suppliers. Desperate for enough business to “stay in business” these contractors and suppliers oblige, lowering prices again and again. This further damages the viability of the industry.
There are a few positive causes for deflation—like greatly increased productivity. Walmart flexed its buying muscle and employed much improved supply chain management to lower the cost of goods again and again. Buying “more (goods) for less (money)” became commonplace. New technology can also be a positive reason for deflation—consider how the explosion of networked computers/communications devices drove down the cost of telephone and cell phone calls. But always, there is always a “price/value floor”—somewhere.
A Vicious Cycle—Until the “Floor” Is Reached
What happens as industries start to fuel the deflationary cycle is instructive. A deflationary spiral can lead to recessions and worse—collapses of whole industries or even entire economies. This is why Federal Central Banks are so afraid of deflation. It simply doesn’t respond to traditional monetary policy solutions. As demand falls, prices decline. Producers chase sales with lower prices and the postponed buying decision is reinforced. More buyers wait longer and buy cheaper, keeping the spiral going, until the “floor”—a price at which no one can supply and survive—is reached.
What Can You Do?
Since most readers cannot influence such things as Fed monetary policy, or global trade policies, let’s focus on what you can do.
All of these are effective approaches to managing in a deflationary cycle. None of them will stop deflation per se, but enough companies acting similarly will slow its spiral. Governmental policies must address it through macro-economic influences such as monetary and trade policy, etc. These are usually outside the control of most managers/executives.
Just Say “No!”
However, selling based on value and not price, and not resorting to irrational pricing (below cost) or price wars, can also help arrest deflation. Sometimes, you just have to say “No, I cannot sell you at that price.”
If/when the buyers begin to sense that prices have reached the “floor”—the level at which value can no longer be sustained at any lower price—they will stop waiting to buy. It is then that deflation has been contained. Then innovation can begin to gain traction, creating new, more valuable products or services, for which buyers will be willing to pay higher prices.
Managing during disinflation is hard; managing during deflation is much harder. Managing in a deflationary environment turns all the things you learned for years upside down.
Albert Einstein admonished us: “The world we have created today has problems which cannot be solved by thinking the way we thought when we created them.” Only if you manage differently, use new tools, gain new insights and then act fast, can you stem the tide of deflation and minimize its damaging effects.
Managing in Deflationary Times
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Aug 8th
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“The idea that you need to go bigger to be happy is false,” she says. “I really believe that the acquisition of material goods doesn’t bring about happiness.” |
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