• They are involved in more than one community. What this means is that they have multiple interests and multiple groups where they are involved and where they contribute.
• They have high levels of personal expression. In other words, they are able to articulate and express their feelings and their ideas – and they express them.
• They have high levels of personal, sincere and exercised empathy (a trait of great leaders).
• They talk less about “I” and talk more about the collective “we”.
• They have a higher calling in everything they do. They don’t just work for a dollar, they work for a mission, toward a vision. They try to make an impact.
“As a Man thinketh in his heart – so is he.” ~ Proverbs 23:7 ~
The Power of Commitment
With January behind us and the momentum of 2010 building it’s a good time to reflect on our ambitions and the likelihood of success as a result of commitment.
What issues, problems or opportunities, not acted upon, are dominating your thoughts?
The following is quoted from the book, The Scottish Himalayan Expedition, 1951 by William H. Murray;
“Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative (and creation) there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then Providence moves too. All sorts of things occur to help one that would never otherwise have occurred. A whole stream of events issues from the decision, raising in one's favor all manner of unforeseen incidents and meetings and material assistance, which no man could have dreamed would have come his way. I have learned a deep respect for one of Goethe's couplets: "Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it."
Picking up where we left off in December on Relevance & Planning - a few more variables in the mix:
Business Unit Dissection
Better visualize your total business by mentally dissecting it into its true component sectors or units and analyze each unit independent of the others. Each component should stand on its own compelling merits. Plan for each. Some call this Product Management. Good business leaders consider and view their enterprise, initiatives, programs and projects in terms of their manageable elements. Organize to encourage competition for shared corporate (SG&A) resources. If you must carry losers – identify them and for how long you will carry them – as part of the overall “Plan”. The whole is the sum of its parts.
Small Business Working Capital, Business Loans & Investor Wisdom
A second wave of TARP money (tens of billions of dollars we’re told) will soon start cascading down the parched spillways of the banking system toward small businesses. Sounds great, but the irony of it is that anything coming down that chute will certainly not be offered in any fashion similar to the willy-nilly lending sprees of the past. Indeed, conservative lending is the rule (as it has been for most regional banks all along) and lenders are as risk averse as ever. Barring very compelling federal incentives for lenders to take risks – expect a tough “row to hoe” for that working line of credit.
Remember the 5 - “C”s of lending (Character ● Credit ● Capacity ● Collateral ● Cash Flow) - I elaborated last August. Think of it this way; if you are or have been accountable to Venture Capital or Angel investors you know that they invested because:
• your product or service met a real and compelling market need,
• your product performs,
• your product has a big market,
• they had confidence in your management team,
• they knew that you knew your market and your competition,
• you had a good business model and path to market and
• they believed your forecast for profits.
Your lenders require no less assurance except that a lender may factor “valuable” collateral ASSETS into the risk assessment. Key word: VALUABLE - in their eyes.
So what to do? Leases for capital equipment installed for immediate production and sales will be easier to leverage because the asset is new, contributing to current profits and revenues and the intrinsic asset value is known. Real Estate as collateral? –> expect a deep discount on assessed value. Accounts Receivable as collateral? -> your track record on collections and the quality of your AR portfolio will be key. Also, unless your lender has experience in your market and in factoring, they may not be interested in taking a risk on your AR – so seek another lender who has comfort and expect a very cozy lender relationship.
In this recovery, small and mid-size businesses (SMBs) should ANTICIPATE and take on the demeanor of an eager, lean new venture startup toward their lender/investors.
A Closing Note
Those who know me well, know that I’m a winter kayaker. I love to don my drysuit and head out onto the Bay this time of year. There are no other boats (except quahoggers, lobstermen and local commercial draggers), no jet skis or power boats, only nature. (No, I don’t hate powerboats – I like to go fast and in a straight line too sometimes.) The cold deadens whatever noise carries over the water from distant traffic or the occasional barking dog. The wind, waves, the cry of a canvasback gull, the flute-like sound of the beating wings of Buffleheads, the honks of Canada Geese and the nervous peeps of occasional Oystercatchers are all you hear. There is also the bonus of curious harbor seals that appear out of nowhere and shadow you as you paddle. On a few rare occasions I’ve had a pair of Swans fly directly toward me and pass inches over my head (not an intentional fly-by for certain – probably fooled by my low aspect ratio and relative motionlessness). And there’s all sorts of other foreign northern water fowl that winter here. All of these “visitors” appear sometime after Thanksgiving and disappear soon after Saint Patrick’s Day.
Well, a few weeks ago (January 16th to be precise) I embarked on one of my morning outings and as a common practice I said a prayer before setting out. This time I asked God to speak to me with a sign, something, some message about focus in my life. It was a request that led to some marvelous and literal responses. The picture below is one and I’ll share another in the next edition of “…View From The Crow’s Nest.”
“Every excuse I ever heard made perfect sense to the person who made it.”
~ Dr. Daniel Drubin ~
Contemplative Note: 2009 taught me to hold things more loosely - and the best of them came toward me on their own!
All the Best!
Bill
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