Today is April 1st. This marks two years since I got laid off from my job as Director of Business Development with a consulting firm. April 2009 was about the worst time in the economic storms that have hit the world economy over the past three years, and the news hit me hard that day.... when I found out my job was being eliminated.
But two years later today marks a celebration. After I got the bad news I called my wife and told her I had been laid off and that I was not going to seek a new position (in April 2009 there were few positions available anyway). I was officially an entrepreneur.
Thus today is sort of the birthday of my career as a professional speaker, consultant, and mentor / coach.
But it was not really the first day of this career. I had launched my first book four years earlier, and New Year Publishing was already starting to prosper. I had been doing paid speaking events for some time, and knew this was what I really wanted to be doing for my vocation.
It has not been easy. I have had be creative to allow my family to maintain our lifestyle, and I have found that running your own business is harder than you think from the viewpoint of an employee. I have had success and failures along the way, but I have also had a lot of fun. I have learned more about business, people, relationships, and sales than I would have imagined possible in such a short time.
Had I not started my business before I got laid off I do not think I would have had the option to go on my own the past two years (although I am not really alone, as I have a wonderful family who supports the cause and a business partner in New Year Publishing who is a true visionary).
I am now working with several clients who want to set up a path toward working for themselves. Some want to be speakers / consultants, while others have different business plans... but the common thread is the desire to establish a safety net in case the economy hits another dip.
Robert Reich, former Secretary of Labor, published an article yesterday predicting a "Double Dip" in the economic conditions. If he is right then there is more tough times coming.
What can you do now to protect yourself from a worse economy?
1. Be realistic about your work situation. Many people, myself included, rationalize that while the economy is troubled, their job is secure. The truth is that if you work for someone else and they have to make tough decisions, you could be the one who gets cut. Hard times bring difficult choices. Do not pretend you are safe.
2. Put some money away for a rainy day. I had been working towards having a financial cushion for my family. I only had about 40% saved from the "magic" number I had invented, but that money kept us above water for two years as my business grew.
3. Know what you are very good at doing. Even in rough economic times there are jobs available. If you are clearly excellent at what you do then someone out there will want you as part of their team. This is not the time to simply be "good enough". You must be able to clearly show why your skills are unique and can help a company grow and succeed
4. Understand your existing non-compete agreements. I personally find it gross when employers lay people off because of the company's financial problems and then make a big deal about the enforceability of their "non-compete agreements". This is one sided and selfish, but very common. Many employers will waive the non-compete situation if the person is laid off because of the company's money constraints, but others will toss you out and keep you from working for anyone else. Do not assume if you get laid off that you can go to the competition.
5. Start networking NOW. Do not wait until you are out of work to begin to network. Most career consultants will encourage people to network when looking for a job, but everyone knows a "selfish-networker" who only shows up in their business community when they have a personal need. To harness the power of your network you must be actively cultivating relationships long before you need them. A great idea is to help people you know who are currently out of work. Make introductions for them, help them brainstorm and buy them lunch often while you are the one with a job. If the tables turn you don't want to be the guy who ignored them in their time of need.
6. Talk to your spouse and kids. What would you all expect from each other if one of you lost your job. Have a back up plan in place that you all buy into and can support. If you want to start your own business or become a consultant make sure everyone knows what that means for the family and the allocations of resources (aka: money and time).
7. Hire a coach. When money is tight you might not be able to rationalize working with a business / career / life coach. Yet sometimes it is very helpful to have the perspective of someone else who is not too close to your personal situation. All the best athletes work with several professional coaches to fine tune their games, and it is now very common for business executive to hire coaches to help them navigate their careers. In fact most successful people I know have worked with a coach or a mentor at some point in their lives. It is better to begin this work while you have the income stream and unlimited options. Waiting until you are hit by an economic speed bump can make it harder for you to see the choices ahead of you.
Good luck, and hopefully the economy will skyrocket instead of hitting a "Double Dip".... but either way you need to set yourself up for success!
Have A Great Day.
thom singer
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Friday, April 01, 2011
Monday, November 15, 2010
The Great Reset - Richard Florida's Presentation in Austin
Leadership Austin and Capital One Bank brought Richard Florida to Austin for an engaging presentation at the LBJ School of Public Affairs on November 12th.
About 500 people attended the talk (leaving about 300 empty seats... which was a real waste, since this was a great event) where Florida shared his theories about the current recession and where we, as a society, go from here.
We are living in turbulent, trying and disruptive times, but we cannot fully realize or grasp the economic shift that is taking place because we are living through it. Florida pointed out that major changes in American life have happened before. While much attention in the press is given to the Great Depression, there was a more substantial long depression and cultural shift that took place in the late 1800s. We went from an agricultural society into the industrial revolution, and with that came massive change. Again, we are about to face a shift, what Florida calls a "Reset"..... and how we respond will be more important than ever.
Florida's first book, "The Rise of the Creative Class" chronicles the new leaders of our age which include those who work in science, engineering, education, computer programming, research, arts, design, media, healthcare, business and finance, the legal sector, and education. They make up 30% of the U.S. workforce, but are fairing much better in the recession, with only 5% unemployment compared to over 10% in other occupations.
Florida believes that everyone is creative, and that creativity is the core unit of our humanity. All industry should embrace the concept of the creative class. The gap between the haves and have-nots is getting bigger, and people see the successes in some sectors and they want what the "creative class" has achieved.
Some claim that those who make up the "creative economy" are elitist, but he disagrees. Florida does, however, challenges those in these expanding creative professions to stop saying others "don't get it", or pointing fingers.... and start leading. To successfully navigate the huge change that is coming, we need leaders!
"Place" is the cornerstone to much of Florida's theories. He believes that certain cities and regions will do better than others because they will adjust to the new norms rather than clinging to the ways of the past. Austin is one of those cities that is flourishing (compared to other places) because of the city's high levels of technology, talent and tolerance. As a region, the four major Texas cites can work together to prosper in the coming reset. The key to economic development is no longer just attracting large employers, but instead it is about "place-making". Cities and regions need to position themselves as attractive places for people to live and work, or they will go to other desirable places.
Americans navigated other tough times, and we were more prosperous following the 1800s and the 1930s. We moved from the farms to the cities. Then we moved from the cities to the suburbs. How we lived our lives morphed and eventually became common. We are due for similar changes again, and we have to be willing to go with the flow or be left behind. There will be people who will prosper in these tough times and new industries and institutions will be formed, while old ones will die off (this happened in the late 1800s and again in the 1930s).
Are you ready for the Great Reset? I suggest reading his new book "The Great Reset"
Have A Great Day.
thom singer
P.S. - Richard Florida is a great public speaker. I study those who present to audiences of all sizes, and many, ..... especially academics (Florida is a Ph.D), have great ideas and concepts, but lack the ability to communicate. My theory is that just because someone is smart or has done something great - it does NOT mean they belong on a stage. They must have speaking skills or they should stay home and write white papers. Richard Florida has both... wicked smart, and a first class speaker.
Thursday, September 24, 2009
"Don’t Orphan Your Retirement Assets!" - Guest Blogger Aaron Pottichen
Today's guest blogger is Aaron Pottichen. Aaron is a financial advisor with Merrill Lynch who works with individuals that have gone through career transitions and helps them restore confidence and clarity in their investment and retirement plans.
Don’t Orphan Your Retirement Assets!
As a Financial Advisor, I have had many conversations with individuals and while discussing their retirement investments it is pretty common to discover that they have orphaned retirement assets at an old employer. And when we have gone through a market that has had such dramatic volatility it can be very detrimental to your future retirement lifestyle to not keep those assets close and be aware of how they are invested.
In fact, recent data has shown that nearly 50% of the people who lost their jobs in the first half of 2008 are in this mode. Of those that lost their job in the first quarter of 2008, 43% of them have left their 401k assets with the employer that gave them the boot. (On a side note, you do have the option to keep your assets in your old employer’s 401k plan, unless they require you to take a distribution.)
So, what does this mean? What’s the big deal you might be asking? Well, the big deal is that for many people their 401k represents a large portion of their future retirement assets, yet when they lose a job, the data shows it’s the first thing close to half of the people tend to ignore.
I’m here to tell you that finding gainful employment or generating income for your lifestyle is important, but DON’T ORPHAN YOUR RETIREMENT ASSETS!
For many people, the lost of job can be a traumatic and scary situation. What to do about the mortgage, insurance, groceries, the subscription to Tattooed Dogs magazine and all the other stuff we need income to pay for. Instinctively, we go into survival mode. Even those with all the talent and connections in the world have these thoughts rush through their head.
And when we go into survival mode, we tend to ignore and neglect those things that don’t help get us out of it and focus on things that will, i.e., find another job or source of income. Now, I know some of you may read this and think I may be going a little overboard, but recent data clearly would suggest otherwise.
My advice for anyone going through a job transition is to be aware of what options they have regarding their company retirement plan assets. Take the blinders off for an hour or so regarding finding another job or source of income and educate yourself. If you find the whole task daunting and time consuming, contact a financial professional to assist you.
Leaving a job can be tough, just don’t make it tougher on yourself and orphan your retirement assets along the way.
Have A Great Day.
Wednesday, September 16, 2009
The New Economy Is Here
After a year of rocky economic news, layoffs, hiring freezes, budget cuts and other corporate belt-tightening measures, savvy business professionals are wanting to break out of the cycle of negativity that has surrounded much of the business community for far too long.
While it has been a tough economy, real entrepreneurs are not ones to wallow in self-pity and ugly projections. Those who have the true soul of the entrepreneur want to grow their business no matter what is happening in the world around them. Waiting for an external answer is not how they operate, they create the solutions.
The realization that you cannot save your way to prosperity is starting to hit home. Companies who had cancelled marketing programs, PR, in-house sales training, travel, attendance at industry conventions, client appreciation, and other externally focused expenses to save in the short term are finding their sales are flat as they look toward recovery.
The Fed has issued statements proclaiming the end of the recession is near, but since so many marketing and sales efforts have been cut back over the past 18 months, pipelines are not nearly as robust as most would desire.
Smart companies are scrambling to get out in front of their competition as tides change. Many are starting to fear that their best employees have "recession fatigue" and will jump ship as soon as the job markets open.
I have heard from employees who work for companies, where the cut backs have been harsh, that they feel they have been good "team players" during the hard times -- but will look for new opportunities if they are not soon rewarded for their sacrifices by their current employers.
Others fear that their customers might be experiencing a sensation of "out of sight is out of mind"... as they have abandoned many of their visibility programs and client appreciation efforts during the down-turn. Now these top contacts might be tempted to try competitors who are starting to reach out. Like a new shiny object, the competition might look appealing if they have not seen you in a while.
Customers are also feeling the pains of the last year and are wanting to be associated with winners. The vendor who seems to be bucking the trends and standing tall is the one they want to associate with.
My advice? Stop talking about how bad things are and start making your own success. Invest now in your employees and customers and show them that you are confident in your ongoing relationship. Re-engage your marketing and business development efforts and find ways to partner with those in your network for mutually beneficial results.
All opportunities come from people. Embrace those around you and work together to lead the recovery.
Spending another year in limbo is not going to help anyone. The time is now to position your company for success in the new economy.
Have A Great Day.
thom
While it has been a tough economy, real entrepreneurs are not ones to wallow in self-pity and ugly projections. Those who have the true soul of the entrepreneur want to grow their business no matter what is happening in the world around them. Waiting for an external answer is not how they operate, they create the solutions.
The realization that you cannot save your way to prosperity is starting to hit home. Companies who had cancelled marketing programs, PR, in-house sales training, travel, attendance at industry conventions, client appreciation, and other externally focused expenses to save in the short term are finding their sales are flat as they look toward recovery.
The Fed has issued statements proclaiming the end of the recession is near, but since so many marketing and sales efforts have been cut back over the past 18 months, pipelines are not nearly as robust as most would desire.
Smart companies are scrambling to get out in front of their competition as tides change. Many are starting to fear that their best employees have "recession fatigue" and will jump ship as soon as the job markets open.
I have heard from employees who work for companies, where the cut backs have been harsh, that they feel they have been good "team players" during the hard times -- but will look for new opportunities if they are not soon rewarded for their sacrifices by their current employers.
Others fear that their customers might be experiencing a sensation of "out of sight is out of mind"... as they have abandoned many of their visibility programs and client appreciation efforts during the down-turn. Now these top contacts might be tempted to try competitors who are starting to reach out. Like a new shiny object, the competition might look appealing if they have not seen you in a while.
Customers are also feeling the pains of the last year and are wanting to be associated with winners. The vendor who seems to be bucking the trends and standing tall is the one they want to associate with.
My advice? Stop talking about how bad things are and start making your own success. Invest now in your employees and customers and show them that you are confident in your ongoing relationship. Re-engage your marketing and business development efforts and find ways to partner with those in your network for mutually beneficial results.
All opportunities come from people. Embrace those around you and work together to lead the recovery.
Spending another year in limbo is not going to help anyone. The time is now to position your company for success in the new economy.
Have A Great Day.
thom
Thursday, July 16, 2009
Wall Street Wizard Peter Kuper Speaks at Austin, TX Chapter of ISSA
The July meeting of the Capitol of Texas Chapter of ISSA (Information Systems Security Association) featured Peter Kuper speaking on "The Effects of the Economic Downturn on the Information Security Industry."
Mr. Kuper has been covering the software industry for over a decade. He was the lead software analyst at Morgan Stanley where he wrote a number of industry-defining reports and market-moving stock calls. Previously, he was a director and equity analyst at SG Cowen, where he covered the software sector with a particular focus on security. He has also been an equity analyst and vice president at FAC/Equities and a research analyst at Keefe, Bruyette & Woods.
His talk was hard-hitting and to the point about the effect of the current economic conditions on IT and beyond. While there is a lot of buzz about recovery and stabilization, Kuper warned the audience "not so fast". The underlying issues cross industry lines and impact nearly every area of the international economy and the artificial propping up by the government over the past several years have only delayed the inevitable corrections that we are now experiencing.
His slides showed the details of how consumers over-borrowed and under saved for over a decade, taking consumer debt to record highs. Now delinquency rates of mortgages, credit cards and other consumer debt vehicles are also happening in all-time levels. People are defaulting on mortgage payments like never before..
Unemployment rates are growing, and the current government stimulus packages were constructed with 8% unemployment figures as the benchmark. We are now exceeding these levels, with 12% unemployment a strong possibility. Added to this is that these numbers only include those who are reported as out of work. Many, including Kuper, believe the real numbers could be as high as twice that number.
No jobs means no spending, and historically the corporate IT spending levels mirror the consumer spending numbers. With these looking grim over the next several quarters, the outlook for the technology industry will continue to be strained.
Public and private companies are feeling the pressure from investors, VC's and Wall Street to cut expenses and continue to gain new customers. This give cash-rich buyers negotiation power in all industries. Buyers should be looking to push vendors for more value from their relationships. If your company is looking to sell on a transactional basis, you will lose. Companies of all sizes are demanding those they buy from become partners who provide additional value and assist them in discovering more ways to achieve productivity.
Buyer can take advantage of these tough times and play competitors against each other to ensure they are getting the best deal possible. Nobody can afford to lose clients or marketshare during these rough times.
This is a reminder to all of us... regardless of what you are selling.... you must be delivering extra value to all your customers or they will replace you!!!!
As an employee, the advice is the same: Provide extra value or live with the risk of being cut. Lay-offs are still coming, and those who are idle have targets on them. Those who are seen as having "extra capacity" are an expense to their employer. Look for ways to attach yourself to ongoing and important projects that can help the company's bottom line. Think out of the box to discover ways to "make up" your salary (either by finding the company major cost savings or additional revenue).
Everyone (companies and individuals) should be tapping into their networks to connect with best practices from their peers. Find what works, and has not worked, in other companies and implement them in your own firm. Your network is even more important in these economic conditions that at any other time.
While Kuper's message that there is no "V" shaped recovery was not up-beat, it was a realistic reminder that we have a long way to go before this economy bounces off the bottom. Nobody likes bad news, but having a stronger understanding is the key to position yourself and your company for when the next boom does get here!
Have A Great Day.
thom
Mr. Kuper has been covering the software industry for over a decade. He was the lead software analyst at Morgan Stanley where he wrote a number of industry-defining reports and market-moving stock calls. Previously, he was a director and equity analyst at SG Cowen, where he covered the software sector with a particular focus on security. He has also been an equity analyst and vice president at FAC/Equities and a research analyst at Keefe, Bruyette & Woods.
His talk was hard-hitting and to the point about the effect of the current economic conditions on IT and beyond. While there is a lot of buzz about recovery and stabilization, Kuper warned the audience "not so fast". The underlying issues cross industry lines and impact nearly every area of the international economy and the artificial propping up by the government over the past several years have only delayed the inevitable corrections that we are now experiencing.
His slides showed the details of how consumers over-borrowed and under saved for over a decade, taking consumer debt to record highs. Now delinquency rates of mortgages, credit cards and other consumer debt vehicles are also happening in all-time levels. People are defaulting on mortgage payments like never before..
Unemployment rates are growing, and the current government stimulus packages were constructed with 8% unemployment figures as the benchmark. We are now exceeding these levels, with 12% unemployment a strong possibility. Added to this is that these numbers only include those who are reported as out of work. Many, including Kuper, believe the real numbers could be as high as twice that number.
No jobs means no spending, and historically the corporate IT spending levels mirror the consumer spending numbers. With these looking grim over the next several quarters, the outlook for the technology industry will continue to be strained.
Public and private companies are feeling the pressure from investors, VC's and Wall Street to cut expenses and continue to gain new customers. This give cash-rich buyers negotiation power in all industries. Buyers should be looking to push vendors for more value from their relationships. If your company is looking to sell on a transactional basis, you will lose. Companies of all sizes are demanding those they buy from become partners who provide additional value and assist them in discovering more ways to achieve productivity.
Buyer can take advantage of these tough times and play competitors against each other to ensure they are getting the best deal possible. Nobody can afford to lose clients or marketshare during these rough times.
This is a reminder to all of us... regardless of what you are selling.... you must be delivering extra value to all your customers or they will replace you!!!!
As an employee, the advice is the same: Provide extra value or live with the risk of being cut. Lay-offs are still coming, and those who are idle have targets on them. Those who are seen as having "extra capacity" are an expense to their employer. Look for ways to attach yourself to ongoing and important projects that can help the company's bottom line. Think out of the box to discover ways to "make up" your salary (either by finding the company major cost savings or additional revenue).
Everyone (companies and individuals) should be tapping into their networks to connect with best practices from their peers. Find what works, and has not worked, in other companies and implement them in your own firm. Your network is even more important in these economic conditions that at any other time.
While Kuper's message that there is no "V" shaped recovery was not up-beat, it was a realistic reminder that we have a long way to go before this economy bounces off the bottom. Nobody likes bad news, but having a stronger understanding is the key to position yourself and your company for when the next boom does get here!
Have A Great Day.
thom
Wednesday, April 08, 2009
Five Reasons To Network In A Tough Economy
It seems in boom-boom times many professionals forget that they are not alone in their outstanding success. They bask in the glow of the big deals and high income and start believing that they are the central cause for their own glory.
Welcome to the recession.
Now people who ignored others and felt invincible are feeling the pinch of hard times. Alas, they are frantically going back to the basics of business, and one of those basics is realizing that nobody succeeds in a vacuum.
Seems networking is a hot topic.
My total number of speaking engagements in Q1 of 2009 is almost double that of the same period in 2008 for my "Some Assembly Required: How to Make, Keep and Grow Your Business Relationships" seminar. The topics of results oriented communications, business relationships and networking are no longer viewed as "fluffy", but are instead being devoured by everyone. Book sales are also up this year!
My new seminar: "Social Media, Networking and Ethics" is also generating a lot of interest from law firms and other professional services organizations.
Here are 5 reasons that your network is important in a tough economy:
1. All opportunities come from people. Those who were "too busy" to go to lunch or invest time in cultivating meaningful relationships are hungry to network. In a tough economy any and all referral sources become important to survival. If you want more sales, the people you know can be the conduit to discovering new clients.
2. Your network is your safety net. If you get caught in a lay-off it is the people in your network who can help you find your next employer or lead you to consulting gigs. Additionally those with whom you have already developed mutually beneficial relationships are the ones who will be available for moral support if and when you need it. If you have no network, these tough times can seem very lonely.
3. When marketing budgets are cut, word-of-mouth is your only hope. If you cannot afford marketing, PR and advertising, you need to get out and spread the word yourself. But you can only go so far, thus having strong contacts who understand the value you bring can multiply your visibility by telling others about you and your products / services.
4. We learn from others. Being around other intelligent and creative people can motivate and inspire you to succeed. If you have a network of contacts with whom you share information, you cultivate an environment of learning. When you learn you grow. When you are stagnate you die.
5. If you are not networking, remember - your competitors ARE networking! Out of sight is out of mind. If the success of your business in this economy is important to you then you will find a way to make it to the breakfasts, luncheons and "after hours" events. Yes, it is time consuming, but with more people out seeking to make connections, you can rest assured that your competition is trying to meet your customers. If you stay home you are giving them a free pass to begin to build relationships that can and will lead them to future business.
Have A Great Day.
thom
If your organization is interested in having me speak at an event or consult with your team on your business development strategies, please contact me at thom (at) thomsinger.com.
Welcome to the recession.
Now people who ignored others and felt invincible are feeling the pinch of hard times. Alas, they are frantically going back to the basics of business, and one of those basics is realizing that nobody succeeds in a vacuum.
Seems networking is a hot topic.
My total number of speaking engagements in Q1 of 2009 is almost double that of the same period in 2008 for my "Some Assembly Required: How to Make, Keep and Grow Your Business Relationships" seminar. The topics of results oriented communications, business relationships and networking are no longer viewed as "fluffy", but are instead being devoured by everyone. Book sales are also up this year!
My new seminar: "Social Media, Networking and Ethics" is also generating a lot of interest from law firms and other professional services organizations.
Here are 5 reasons that your network is important in a tough economy:
1. All opportunities come from people. Those who were "too busy" to go to lunch or invest time in cultivating meaningful relationships are hungry to network. In a tough economy any and all referral sources become important to survival. If you want more sales, the people you know can be the conduit to discovering new clients.
2. Your network is your safety net. If you get caught in a lay-off it is the people in your network who can help you find your next employer or lead you to consulting gigs. Additionally those with whom you have already developed mutually beneficial relationships are the ones who will be available for moral support if and when you need it. If you have no network, these tough times can seem very lonely.
3. When marketing budgets are cut, word-of-mouth is your only hope. If you cannot afford marketing, PR and advertising, you need to get out and spread the word yourself. But you can only go so far, thus having strong contacts who understand the value you bring can multiply your visibility by telling others about you and your products / services.
4. We learn from others. Being around other intelligent and creative people can motivate and inspire you to succeed. If you have a network of contacts with whom you share information, you cultivate an environment of learning. When you learn you grow. When you are stagnate you die.
5. If you are not networking, remember - your competitors ARE networking! Out of sight is out of mind. If the success of your business in this economy is important to you then you will find a way to make it to the breakfasts, luncheons and "after hours" events. Yes, it is time consuming, but with more people out seeking to make connections, you can rest assured that your competition is trying to meet your customers. If you stay home you are giving them a free pass to begin to build relationships that can and will lead them to future business.
Have A Great Day.
thom
If your organization is interested in having me speak at an event or consult with your team on your business development strategies, please contact me at thom (at) thomsinger.com.
Monday, March 23, 2009
Corporate Meetings, Professional Speakers (and other vendors), and The Economic Woes
Okay, I now know the world has gotten nutty.
A meeting planner for a company told me that they are canceling their annual sales conference for fear that the three day educational and motivational outing (at a resort) might end up in the press. While they are a profitable private company (with no government bailout funds), the executive team is worried about someone saying they are not playing it "smart" during the recession.
She said that the CEO was counseled by a consultant to avoid taking his team to a golf resort this year, as they have done annually for two decades, for fear that their competition would use it against them in the marketplace.
Huh?
Now, since I was in negotiation to be the keynote speaker to kick off the company's event, I am obviously bummed out. Professional speakers, hotels, airlines, restaurants, etc... are all impacted by the success of the meeting / hospitality industry.
But more than my speaking fee, I am questioning what our world is coming to when such things such as an annual sales meeting can become a negative event for a private business that has positive cash flow.
One would think that everyone would be happy to see organizations celebrating success in the midst of all the gloomy news that the press reports (I believe there are many successful individuals and organizations all over the world who should be being highlighted in the press).
The following is from the website "Meetings Mean Business":
Value of Meetings
When business meetings and events are cancelled, it’s the hourly-wage workers – not corporate CEOs – who pay the highest price. Meetings, events and performance incentive travel in the United States are responsible for almost 15% of all domestic travel. Generating 1 million jobs and $27 billion in wages, meetings and events can provide a solution to our economic woes. Meetings and events support local communities and working families around the country – something we cannot afford to overlook as we rebuild our economy.
I realize that there are companies (AIG, investment banks, and others) who have taken government money who should be under scrutiny for how they spend money .... but to make the meeting industry the villain in this mess is just crazy.
On the up side, SXSW Interactive - the large conference I attended in Austin last week - had an increase in attendance this year that was up over 25%. We humans are social creatures, and while online social networking communities and teleseminars are nice... they DO NOT replace the face to face meeting. It is not the same.
Have A Great Day
thom
A meeting planner for a company told me that they are canceling their annual sales conference for fear that the three day educational and motivational outing (at a resort) might end up in the press. While they are a profitable private company (with no government bailout funds), the executive team is worried about someone saying they are not playing it "smart" during the recession.
She said that the CEO was counseled by a consultant to avoid taking his team to a golf resort this year, as they have done annually for two decades, for fear that their competition would use it against them in the marketplace.
Huh?
Now, since I was in negotiation to be the keynote speaker to kick off the company's event, I am obviously bummed out. Professional speakers, hotels, airlines, restaurants, etc... are all impacted by the success of the meeting / hospitality industry.
But more than my speaking fee, I am questioning what our world is coming to when such things such as an annual sales meeting can become a negative event for a private business that has positive cash flow.
One would think that everyone would be happy to see organizations celebrating success in the midst of all the gloomy news that the press reports (I believe there are many successful individuals and organizations all over the world who should be being highlighted in the press).
The following is from the website "Meetings Mean Business":
Value of Meetings
When business meetings and events are cancelled, it’s the hourly-wage workers – not corporate CEOs – who pay the highest price. Meetings, events and performance incentive travel in the United States are responsible for almost 15% of all domestic travel. Generating 1 million jobs and $27 billion in wages, meetings and events can provide a solution to our economic woes. Meetings and events support local communities and working families around the country – something we cannot afford to overlook as we rebuild our economy.
I realize that there are companies (AIG, investment banks, and others) who have taken government money who should be under scrutiny for how they spend money .... but to make the meeting industry the villain in this mess is just crazy.
On the up side, SXSW Interactive - the large conference I attended in Austin last week - had an increase in attendance this year that was up over 25%. We humans are social creatures, and while online social networking communities and teleseminars are nice... they DO NOT replace the face to face meeting. It is not the same.
Have A Great Day
thom
Sunday, March 01, 2009
I Believed This Time "Change" Was More Than A Slogan
It is the success of businesses that will be the engine that pulls our country (and the world) out of the current recession.
With all the government programs and the many faces of stimuli packages, we need more money to begin flowing into the treasury. This is only accomplished through taxes. However, raising the percentage that individuals and corporations pay can be counter productive, as the less money they have, the less they can spend on other products and services.
In the United States we spend a lot of time arguing about tax rates, who pays, and what we will tax. It is one of the core arrows that Republicans and Democrats fire at each other. But this misses the point.
We don't need to be focused on taxing more, but instead on raising the amount of profit that companies and people realize. In the late 1990s the economy boomed, and the government took in more money. There was no rocket science on this one. Lets freeze the tax rates.... No ups, no downs for the next decade and make everyone understand the goal is earning more money. Higher income, higher taxes.
Teach people how to create multiple streams of income. Champion entrepreneurship. Praise those who have ambition to earn more income. Companies and people who can extend their income levels year over year, and pay more to the government, will add to the raising dollars flowing into Washington and create jobs along the way.
Politics as usual and the political fights between Republicans and Democrats over taxation is so "yesterday". I am waiting for someone in Congress to become a real leader and show his co-workers how to grow up and grow past all the partisan finger pointing. Our economy is not a board game, but nobody has told this to the members of the House and Senate. We need to get business moving, end of story.
Change will never come until the people demand it. I believed this time that "Change" was more than a slogan. I expected to see Washington DC be different. So far I see the same old thing. If the people sent a message "Stop it or we will toss you out" then you would see elected officials change their tune in a minute. They would focus on solutions rather than this continued Red vs Blue bullshit that trickles down into every discussion.
Have A Great Day.
thom
With all the government programs and the many faces of stimuli packages, we need more money to begin flowing into the treasury. This is only accomplished through taxes. However, raising the percentage that individuals and corporations pay can be counter productive, as the less money they have, the less they can spend on other products and services.
In the United States we spend a lot of time arguing about tax rates, who pays, and what we will tax. It is one of the core arrows that Republicans and Democrats fire at each other. But this misses the point.
We don't need to be focused on taxing more, but instead on raising the amount of profit that companies and people realize. In the late 1990s the economy boomed, and the government took in more money. There was no rocket science on this one. Lets freeze the tax rates.... No ups, no downs for the next decade and make everyone understand the goal is earning more money. Higher income, higher taxes.
Teach people how to create multiple streams of income. Champion entrepreneurship. Praise those who have ambition to earn more income. Companies and people who can extend their income levels year over year, and pay more to the government, will add to the raising dollars flowing into Washington and create jobs along the way.
Politics as usual and the political fights between Republicans and Democrats over taxation is so "yesterday". I am waiting for someone in Congress to become a real leader and show his co-workers how to grow up and grow past all the partisan finger pointing. Our economy is not a board game, but nobody has told this to the members of the House and Senate. We need to get business moving, end of story.
Change will never come until the people demand it. I believed this time that "Change" was more than a slogan. I expected to see Washington DC be different. So far I see the same old thing. If the people sent a message "Stop it or we will toss you out" then you would see elected officials change their tune in a minute. They would focus on solutions rather than this continued Red vs Blue bullshit that trickles down into every discussion.
Have A Great Day.
thom
Tuesday, February 24, 2009
Guest Blogger - Debra Helwig: "Running Scared"
I asked for volunteers on Twitter to be guest bloggers on The Some Assembly Required Blog. Wow, some great people stepped forward to share their thoughts, ideas and pontifications.
Today's Guest Blogger is Debra Helwig. Debra Helwig is the marketing communications manager for IGAF Worldwide, an international trade association serving mid-sized accounting firms in over 60 countries. Her favorite part of the job is sharing ideas and connecting people -- helping service professionals learn from one another and from the brightest minds in the various industries they touch. Find Debra on Twitter at @dhelwig or visit the IGAF Worldwide Web site at http://www.igafworldwide.org.
Running Scared
by Debra Helwig
“At least I still have a job…for now.”
How many times have you heard that phrase in the past few weeks? Me, I’ve heard it more times than I care to count, from people in every walk of life – the bakery gal at Publix, the marketing director of a public accounting firm, a social worker, a Web designer. I’ve heard it enough times that I actually caught myself saying it, even though I work for a very stable association that has yet to feel the rattle from the downturn.
Maybe it’s the pathologically bad news reports blaring from every PC and TV screen. Maybe it’s that just about everyone knows at least two people who have been laid off recently. But whatever the reason, people all around us are behaving as if their jobs are on the chopping block. The whispers at the water cooler aren’t just whispers anymore.
I admit, for some folks, this attitude is common sense. Layoffs are happening all over, and some companies are folding. People who work in these places have every right to be freaked out, jittery, and afraid they’ll be next in line at the Department of Labor.
HOWEVER (and this is a big however) if you’re a manager at a company that’s doing even marginally well, the rising panic is a serious problem. If you don’t stop the tide before it starts, a larger-than-healthy percentage of your people will be punching the wrong half of the flight-or-flight ticket. Now, this doesn’t mean they’re going anywhere. Hooooo no. They’re filling up their timesheets, but mentally they got fired last week. They’ve checked out. They’re unproductive. And – worst of all – if they talk to your clients, they’re poor mouthing your business directly to the people who are keeping you in business. Disaster walking.
You have to stop the bleeding before it begins. But how?
Talk to them.
A lot.
An old boss of mine, Ernie, used a technique he called “management by walking around.” Every day, he walked the department. He talked to every person. He answered questions. He planted ideas. He explained decisions. He never hedged, and he never lied. When we had a sizable layoff, he told it like it was – early – and people believed him because he had the street cred that came with years of playing honest and fair. Even after the downsize, his department’s productivity and customer service soared. People worked harder than ever because they knew Ernie had their back.
Even if you don’t have Ernie’s years of credibility on your side, you can make a difference in your company’s ability to successfully weather this downturn. Begin communicating right now – regularly and truthfully – about where things are going for your business. Give your valued professionals (and your customers) the information they need to stop running scared.
Your bottom line will thank you.
***Thom's 2-Cents:
I agree with Debra. There is too much negative chit-chat going about the negatives in the economy. While not to be discounted, we must also remember that there are still positives out there. To only focus on the bad will not help anyone. We must break the cycle of bad news by finding the good stuff and talking about that, too.
Have A Great Day
thom
Today's Guest Blogger is Debra Helwig. Debra Helwig is the marketing communications manager for IGAF Worldwide, an international trade association serving mid-sized accounting firms in over 60 countries. Her favorite part of the job is sharing ideas and connecting people -- helping service professionals learn from one another and from the brightest minds in the various industries they touch. Find Debra on Twitter at @dhelwig or visit the IGAF Worldwide Web site at http://www.igafworldwide.org.
Running Scared
by Debra Helwig
“At least I still have a job…for now.”
How many times have you heard that phrase in the past few weeks? Me, I’ve heard it more times than I care to count, from people in every walk of life – the bakery gal at Publix, the marketing director of a public accounting firm, a social worker, a Web designer. I’ve heard it enough times that I actually caught myself saying it, even though I work for a very stable association that has yet to feel the rattle from the downturn.
Maybe it’s the pathologically bad news reports blaring from every PC and TV screen. Maybe it’s that just about everyone knows at least two people who have been laid off recently. But whatever the reason, people all around us are behaving as if their jobs are on the chopping block. The whispers at the water cooler aren’t just whispers anymore.
I admit, for some folks, this attitude is common sense. Layoffs are happening all over, and some companies are folding. People who work in these places have every right to be freaked out, jittery, and afraid they’ll be next in line at the Department of Labor.
HOWEVER (and this is a big however) if you’re a manager at a company that’s doing even marginally well, the rising panic is a serious problem. If you don’t stop the tide before it starts, a larger-than-healthy percentage of your people will be punching the wrong half of the flight-or-flight ticket. Now, this doesn’t mean they’re going anywhere. Hooooo no. They’re filling up their timesheets, but mentally they got fired last week. They’ve checked out. They’re unproductive. And – worst of all – if they talk to your clients, they’re poor mouthing your business directly to the people who are keeping you in business. Disaster walking.
You have to stop the bleeding before it begins. But how?
Talk to them.
A lot.
An old boss of mine, Ernie, used a technique he called “management by walking around.” Every day, he walked the department. He talked to every person. He answered questions. He planted ideas. He explained decisions. He never hedged, and he never lied. When we had a sizable layoff, he told it like it was – early – and people believed him because he had the street cred that came with years of playing honest and fair. Even after the downsize, his department’s productivity and customer service soared. People worked harder than ever because they knew Ernie had their back.
Even if you don’t have Ernie’s years of credibility on your side, you can make a difference in your company’s ability to successfully weather this downturn. Begin communicating right now – regularly and truthfully – about where things are going for your business. Give your valued professionals (and your customers) the information they need to stop running scared.
Your bottom line will thank you.
***Thom's 2-Cents:
I agree with Debra. There is too much negative chit-chat going about the negatives in the economy. While not to be discounted, we must also remember that there are still positives out there. To only focus on the bad will not help anyone. We must break the cycle of bad news by finding the good stuff and talking about that, too.
Have A Great Day
thom
Monday, February 23, 2009
Five Networking Tips For Everyone In The Current Economy
There is a lot of interest in the topic of networking. During the boom-boom days many people would roll their eyes when I would opine about the power of cultivating long-lasting, mutually beneficial business relationships. Now everyone seems to be interested.
Book sales are rising and readership of my blog has nearly doubled since the start of the economic meltdown. There is also an uptick in speaking opportunities - as more law firms, sales-oriented companies and professional business associations are showing interest in my 90-minute presentation: "Some Assembly Required: How to Make, Grow, and Keep Your Business Relationships".
Networking matters! For companies who are hungry for sales, suddenly the economy has them interested in ways to build stronger referral partnerships. With the tough times comes more competition, and that makes every referral that much more important.
For those who have been laid off who are seeking new employment, the reality is that most jobs are filled, directly or indirectly, through a contact within a company or with a recruiter. You need people if you want a job.
And those who have been laid off that want to start their own business - They know first hand that their network matters more than ever as they launch their new new thing. When bootstapping an idea it is the word-of-mouth marketing opportunities that get you started.
Here are 5 tips for how to network in the touch economy that will help job seekers, entrepreneurs, and anyone whose company is looking for more clients:
1. Networking takes time. If you are suddenly in need of sales or recently laid off, you cannot expect to create a network overnight. The people you meet for the first time will not know enough about you to be an instant resource. Knowing that this is a process that will take months (if not years) to create results will keep you from being discouraged. Always network with a long-term horizon. Networking cannot help you with short-term goals unless you already have a very strong list of contacts.
2. Ask others for help. If you have avoided networking in the past and now realize that was a mistake, admit it. Not just to yourself (although that is a good place to start), but also fess up to the people you know and new folks that you meet. Tell them that you had never understood about the power of business relationships and ask them for help in getting you started. Most people enjoy helping others, but you need to let them know what you need from them.
3. Remember that networking is NOT just about YOUR needs. You must establish mutually beneficial relationships in order to see real results from networking. The problem is that when people are up against a wall they often forget that other people need assistance as well. Never have a conversation with anyone in your network without asking them what they need to succeed. You will not always be able to be of assistance to others, but when you can provide them with ideas, introductions or other value...make sure that you do so in a timely manner. Helping others is the fastest way to create a network. Expecting people to help you without your investment in helping others will not only fail, but get you listed as a taker.
4. Do not try to network EVERYWHERE. Select two or three business organizations that interest you and that draw the right people in your areas of interest and participate in all of those groups events. If you try to hit too many groups you will end up just dropping in on them "sometimes". Drop in networking does not lead to building real relationships. It takes multiple interactions with people to establish connections, so if you spread yourself too thin then you will never create a true network.
5. Create you own networking events. Be the catalyst that brings others together and you will find that your network will grow. Many people complain about the quality of the networking events they attend, but they do not do anything to improve upon the gatherings. If you cannot find an organization that brings together the people you want to see, then create your own events. With a little effort you can structure new and productive events that will put your name in front of many new people.
Two Bonus Networking Tips For Job Seekers:
1. Do NOT bring your resume to every networking event or individual meeting. If somebody wants your resume, you can easily get them a copy in a timely manner. However, people are often turned off when a resume is shoved into their hands at the first meeting. On the flip side, you do need business cards, as they are an unobtrusive way of making sure others have your contact information. If you have been laid off you can purchase inexpensive cards at Kinkos or Office Depot that can have your name, address, email, phone, etc... If asked for a card you do not want to reply "sorry, I don't have one", as you will appear unprepared.
2. Use "Social Media". If you do not have an account on LinkedIn, you need one. This site has become a regularly used tool by companies and recruiters when they are looking for candidates. If they look for you on the site and you are not there, they will assume you are "out of touch" with this very common business tool. Additionally, you can use LinkedIn (or other social networking sites) to help connect yourself with former colleagues, bosses, vendors, etc.... Any of whom might be able to serve as a contact that could lead you to your next opportunity.
Have A Great Day.
thom
Book sales are rising and readership of my blog has nearly doubled since the start of the economic meltdown. There is also an uptick in speaking opportunities - as more law firms, sales-oriented companies and professional business associations are showing interest in my 90-minute presentation: "Some Assembly Required: How to Make, Grow, and Keep Your Business Relationships".
Networking matters! For companies who are hungry for sales, suddenly the economy has them interested in ways to build stronger referral partnerships. With the tough times comes more competition, and that makes every referral that much more important.
For those who have been laid off who are seeking new employment, the reality is that most jobs are filled, directly or indirectly, through a contact within a company or with a recruiter. You need people if you want a job.
And those who have been laid off that want to start their own business - They know first hand that their network matters more than ever as they launch their new new thing. When bootstapping an idea it is the word-of-mouth marketing opportunities that get you started.
Here are 5 tips for how to network in the touch economy that will help job seekers, entrepreneurs, and anyone whose company is looking for more clients:
1. Networking takes time. If you are suddenly in need of sales or recently laid off, you cannot expect to create a network overnight. The people you meet for the first time will not know enough about you to be an instant resource. Knowing that this is a process that will take months (if not years) to create results will keep you from being discouraged. Always network with a long-term horizon. Networking cannot help you with short-term goals unless you already have a very strong list of contacts.
2. Ask others for help. If you have avoided networking in the past and now realize that was a mistake, admit it. Not just to yourself (although that is a good place to start), but also fess up to the people you know and new folks that you meet. Tell them that you had never understood about the power of business relationships and ask them for help in getting you started. Most people enjoy helping others, but you need to let them know what you need from them.
3. Remember that networking is NOT just about YOUR needs. You must establish mutually beneficial relationships in order to see real results from networking. The problem is that when people are up against a wall they often forget that other people need assistance as well. Never have a conversation with anyone in your network without asking them what they need to succeed. You will not always be able to be of assistance to others, but when you can provide them with ideas, introductions or other value...make sure that you do so in a timely manner. Helping others is the fastest way to create a network. Expecting people to help you without your investment in helping others will not only fail, but get you listed as a taker.
4. Do not try to network EVERYWHERE. Select two or three business organizations that interest you and that draw the right people in your areas of interest and participate in all of those groups events. If you try to hit too many groups you will end up just dropping in on them "sometimes". Drop in networking does not lead to building real relationships. It takes multiple interactions with people to establish connections, so if you spread yourself too thin then you will never create a true network.
5. Create you own networking events. Be the catalyst that brings others together and you will find that your network will grow. Many people complain about the quality of the networking events they attend, but they do not do anything to improve upon the gatherings. If you cannot find an organization that brings together the people you want to see, then create your own events. With a little effort you can structure new and productive events that will put your name in front of many new people.
Two Bonus Networking Tips For Job Seekers:
1. Do NOT bring your resume to every networking event or individual meeting. If somebody wants your resume, you can easily get them a copy in a timely manner. However, people are often turned off when a resume is shoved into their hands at the first meeting. On the flip side, you do need business cards, as they are an unobtrusive way of making sure others have your contact information. If you have been laid off you can purchase inexpensive cards at Kinkos or Office Depot that can have your name, address, email, phone, etc... If asked for a card you do not want to reply "sorry, I don't have one", as you will appear unprepared.
2. Use "Social Media". If you do not have an account on LinkedIn, you need one. This site has become a regularly used tool by companies and recruiters when they are looking for candidates. If they look for you on the site and you are not there, they will assume you are "out of touch" with this very common business tool. Additionally, you can use LinkedIn (or other social networking sites) to help connect yourself with former colleagues, bosses, vendors, etc.... Any of whom might be able to serve as a contact that could lead you to your next opportunity.
Have A Great Day.
thom
Friday, February 20, 2009
Believe You Can Accomplish Great Things In Life
"Whether you think that you can, or that you can't, you are usually right" - Henry Ford
Human beings must believe in their ideas or most will just sit on their ass. Many people rationalize false reasons not to reach for their dreams and find themselves convinced that those who achieve are either born with unique skills, lucky, or both. They wait for direction, and direction never comes. They are Waiting for Godot.
Southern California marketing industry thought leader, Tim Tyrell-Smith, has a blog called "Quixoting" where he blogs about ideas. Creative ideas. He encourages himself and others to think. Quixoting (pronounced key-ho-ting) is based on the story of Don Quixote. A character best known for being "delusional". But Tyrell-Smith admires his daring to take action. Because ideas or creative work left in a bottom drawer will never be seen by the eyes of the world. And that is a shame.
Quixoting's tag line is "Take Action. Be Courageous. Have Fun!" - these words should sing to your soul.
Once you believe in your ideas amazing things can happen. It is those with confidence and drive who are the ones who change the world. Become a dreamer. Imagine yourself winning. Know that you can succeed.
I know too many people are closed to both their ideas and those of others. They rationalize all sorts of reasons to not act and close down the spirit of being a "big tent thinker" (I have written many times about being a "big tent thinker" who is open and inclusive of others). Then they mock the dreamers, seekers, creatives, optimists, entrepreneurs and anyone who desires more out of life. We we need people of action at this point in our economy. Either "do it" or get out of the way of those who will.
Re-read the words of Henry Ford at the top of this post and think about the meaning. Believe that you can accomplish great things in life. Then go get 'em done.
Have A Great Day.
thom
Human beings must believe in their ideas or most will just sit on their ass. Many people rationalize false reasons not to reach for their dreams and find themselves convinced that those who achieve are either born with unique skills, lucky, or both. They wait for direction, and direction never comes. They are Waiting for Godot.
Southern California marketing industry thought leader, Tim Tyrell-Smith, has a blog called "Quixoting" where he blogs about ideas. Creative ideas. He encourages himself and others to think. Quixoting (pronounced key-ho-ting) is based on the story of Don Quixote. A character best known for being "delusional". But Tyrell-Smith admires his daring to take action. Because ideas or creative work left in a bottom drawer will never be seen by the eyes of the world. And that is a shame.
Quixoting's tag line is "Take Action. Be Courageous. Have Fun!" - these words should sing to your soul.
Once you believe in your ideas amazing things can happen. It is those with confidence and drive who are the ones who change the world. Become a dreamer. Imagine yourself winning. Know that you can succeed.
I know too many people are closed to both their ideas and those of others. They rationalize all sorts of reasons to not act and close down the spirit of being a "big tent thinker" (I have written many times about being a "big tent thinker" who is open and inclusive of others). Then they mock the dreamers, seekers, creatives, optimists, entrepreneurs and anyone who desires more out of life. We we need people of action at this point in our economy. Either "do it" or get out of the way of those who will.
Re-read the words of Henry Ford at the top of this post and think about the meaning. Believe that you can accomplish great things in life. Then go get 'em done.
Have A Great Day.
thom
Friday, February 13, 2009
Economic Stimulus Package Needs To Focus On Entrepreneurial Spirit
In regards to the current economic situation package - I want to know why we are not hearing bup-squat about the entrepreneurial spirit which is the fire in the belly of the United States economy. This inner drive to create and grow new and better products and services has existed in our culture since the founding days of the 13 original colonies. Our Founding Fathers were entrepreneurs who created a "start-up country". Hello, this is at the very core of our culture.
It has NEVER been government programs that made America thrive, it was this "entrepreneurial spirit" that kick started our nation (and the world) and has kept us innovating ever since.
But nobody, I mean NOBODY, in the government or in the media is talking about power of the entrepreneur's creativity when it is unleashed. It is that "vision thing" that has always produced the greatness in our society (although some politicians think "that vision thing is over-rated". Yeah? If that is what you believe you are a OLD TURKEY and we need new leadership. Get out of the way!).
The stimulus package is full of pork. Yeah, yeah, I heard all the words about "no earmarks...blah, blah, blah". It was a Jedi Mind-trick. While no traditional earmarks, there is lots of random stuff included. Read parts of this package and you say "WHAT THE ....?"
Plus, it just does not encapsulate what we need, and that is a focus on real honest to God entrepreneurs. These are the people who create jobs. Government projects are nice, but are they sustainable if the money is pouring into dying industries and companies?
Instead of all the verbal vomit from the doom and gloom crowd, how about some oratory about the nature of the history of a people who are known to rise to any challenge and bootstrap our way to success? This is the America I believe in. One in which young men left their farms in places all over the world and risked it all to get to the shores of the New World.
My grandfather came to America as a teenager after his parents died in Ireland. His siblings ranged from ages 14 to four. They sold the farm and took a boat. There was nobody waiting for them at Ellis Island. He had no money, but he had a confidence that they were better off starting fresh in a new land. Talk tough economic times, there was not much for him in 1900. No stimulus packages.
All my grandfather had (and countless others just like him) was a belief in himself and the American Dream. I believe he had a hard life. He had to bootstrap a life. But his ten children and 26 grandchildren have had an easier life than he did because of his sacrifices. Where is that message today? Why is nobody talking about that inner spark that is deep in each of us to discover our own way?
I am not trying to make light of the economic crisis or ignore the good efforts that our elected officials are trying - but they are missing out on the key to success. The part they are missing is in the heart and soul of the individual who is seeking their own path to greatness.
For Congress to pass a $789 billion package and then act like they are great for being able to spend money that they do not have is ludicrous. We are not children and the government is not our mommy. To pull out of this mess we need the citizens to feel empowered. That is NOT the message we are getting from our elected officials.
Only a few hundred people read my blog on any given day, so not nearly enough of you will hear this message from me. ... But I will day it anyway:
Our future is in the hands of the entrepreneurial minded who will work all night to translate their dreams into reality. The stimulus package needs to include those in our midst who can build new businesses, products, services and empires. Look around you and encourage those who dream big, as they are the only way we can get this economy back on track.
Have A Great Day.
thom
It has NEVER been government programs that made America thrive, it was this "entrepreneurial spirit" that kick started our nation (and the world) and has kept us innovating ever since.
But nobody, I mean NOBODY, in the government or in the media is talking about power of the entrepreneur's creativity when it is unleashed. It is that "vision thing" that has always produced the greatness in our society (although some politicians think "that vision thing is over-rated". Yeah? If that is what you believe you are a OLD TURKEY and we need new leadership. Get out of the way!).
The stimulus package is full of pork. Yeah, yeah, I heard all the words about "no earmarks...blah, blah, blah". It was a Jedi Mind-trick. While no traditional earmarks, there is lots of random stuff included. Read parts of this package and you say "WHAT THE ....?"
Plus, it just does not encapsulate what we need, and that is a focus on real honest to God entrepreneurs. These are the people who create jobs. Government projects are nice, but are they sustainable if the money is pouring into dying industries and companies?
Instead of all the verbal vomit from the doom and gloom crowd, how about some oratory about the nature of the history of a people who are known to rise to any challenge and bootstrap our way to success? This is the America I believe in. One in which young men left their farms in places all over the world and risked it all to get to the shores of the New World.
My grandfather came to America as a teenager after his parents died in Ireland. His siblings ranged from ages 14 to four. They sold the farm and took a boat. There was nobody waiting for them at Ellis Island. He had no money, but he had a confidence that they were better off starting fresh in a new land. Talk tough economic times, there was not much for him in 1900. No stimulus packages.
All my grandfather had (and countless others just like him) was a belief in himself and the American Dream. I believe he had a hard life. He had to bootstrap a life. But his ten children and 26 grandchildren have had an easier life than he did because of his sacrifices. Where is that message today? Why is nobody talking about that inner spark that is deep in each of us to discover our own way?
I am not trying to make light of the economic crisis or ignore the good efforts that our elected officials are trying - but they are missing out on the key to success. The part they are missing is in the heart and soul of the individual who is seeking their own path to greatness.
For Congress to pass a $789 billion package and then act like they are great for being able to spend money that they do not have is ludicrous. We are not children and the government is not our mommy. To pull out of this mess we need the citizens to feel empowered. That is NOT the message we are getting from our elected officials.
Only a few hundred people read my blog on any given day, so not nearly enough of you will hear this message from me. ... But I will day it anyway:
Our future is in the hands of the entrepreneurial minded who will work all night to translate their dreams into reality. The stimulus package needs to include those in our midst who can build new businesses, products, services and empires. Look around you and encourage those who dream big, as they are the only way we can get this economy back on track.
Have A Great Day.
thom
Friday, January 30, 2009
The Spirit To Innovate Is Not Dying
Let's face it, the downturn in the economy and the fear and trepidation that has hit everyone from Wall Street to Main Street is real.
No matter how much we keep hoping for good news, the headlines every day sing about more layoffs, shady payola dealing in Corporate America and sketchy government bailouts (can our elected officials do anything without stuffing it full of earmarks and bogus programs? Even when crisis is looming our loony Congress still pads important legislation with crap - but that is a whole other topic!).
Pessimists seem to have taken control and it is not making anybody feel good about the future. But as my 94-year-old father points out from his year of experience..."Every bust has been followed by a boom!".
Earlier this week I read a great blog post by a Colorado Venture Capitalist, Brad Feld. He too had had enough of the pessimism in the news (specifically about the venture capital industry).
His post was titled "I'm A Venture Optimist" and he rolled his eyes at the naysayers in the venture industry and noted that VC's are part of the business ecosystem and are here to stay. He knows there will be a shake out for some in his industry, but he is there to stay.
He had a great line when he said "In the mean time I don’t see an endpoint to the human animal’s desire to innovate". Amen. The entrepreneurial spirit is alive and well, in good times and in bad. Our spirit to innovate is not dying!
Last night's Austin Tech Happy Hour was proof. Sure, there were people there looking for jobs. Layoffs happen. But there was as sense of optimism in the room of over 300 local professionals. Entrepreneurs, VC's, Deal Makers, Innovators, Knowledge Providers, Programmers, Marketers, Sales Professionals, Recruiters and many others were all there looking to help move the world forward.
When our desire to innovate and create dies, it is "game over". Sitting around waiting for a bail out never made anyone rich. I believe we will get through these rough economic times and that the future is still amazing for those who want to be part of it.
Have A Great Day.
thom
No matter how much we keep hoping for good news, the headlines every day sing about more layoffs, shady payola dealing in Corporate America and sketchy government bailouts (can our elected officials do anything without stuffing it full of earmarks and bogus programs? Even when crisis is looming our loony Congress still pads important legislation with crap - but that is a whole other topic!).
Pessimists seem to have taken control and it is not making anybody feel good about the future. But as my 94-year-old father points out from his year of experience..."Every bust has been followed by a boom!".
Earlier this week I read a great blog post by a Colorado Venture Capitalist, Brad Feld. He too had had enough of the pessimism in the news (specifically about the venture capital industry).
His post was titled "I'm A Venture Optimist" and he rolled his eyes at the naysayers in the venture industry and noted that VC's are part of the business ecosystem and are here to stay. He knows there will be a shake out for some in his industry, but he is there to stay.
He had a great line when he said "In the mean time I don’t see an endpoint to the human animal’s desire to innovate". Amen. The entrepreneurial spirit is alive and well, in good times and in bad. Our spirit to innovate is not dying!
Last night's Austin Tech Happy Hour was proof. Sure, there were people there looking for jobs. Layoffs happen. But there was as sense of optimism in the room of over 300 local professionals. Entrepreneurs, VC's, Deal Makers, Innovators, Knowledge Providers, Programmers, Marketers, Sales Professionals, Recruiters and many others were all there looking to help move the world forward.
When our desire to innovate and create dies, it is "game over". Sitting around waiting for a bail out never made anyone rich. I believe we will get through these rough economic times and that the future is still amazing for those who want to be part of it.
Have A Great Day.
thom
Wednesday, January 14, 2009
Turnaround Management Association
Last night I made the trek from Austin to San Antonio for the meeting of the Central Texas Chapter of the Turnaround Management Association. The company where I work as the director of business development, vcfo, consults with businesses of all sizes with a variety of issues around operational accounting, finance, HR and recruiting issues - thus TMA is an organization I wanted to know more about. vcfo can serve as a vital resource for distressed companies looking for options, as our CFO's are all highly seasoned executives who have hands-on experience with issues facing businesses in transition. Thus, extending my personal network with those who focus on "turnarounds" is ideal.
The speaker for the meeting was Cliff Atherton, managing director from the Houston based investment bank GulfStar Group. His talk was titled "The Challenges For Middle Market Transactions in 2009", and he did a great job of detailing the ups and downs that companies face in the coming year.
I enjoyed the presentation and all the conversations with the other professionals in attendance. My head was left spinning from talk about the economy, but this is an important topic for everyone, regardless of what we do for a living.
While Texas is just beginning to feel the changes that have impacted the rest of the country caused by the panic that hit all the markets in October, we are not immune from the crisis.
M&A has shut down due to the limited amount of credit in the marketplace. Banks continue to preserve capital and are not making many new loans. Bankers are not being aggressive and debt is more expensive. As we enter the new year following Q4 2008, we are seeing fewer transactions and the lack of available money, coupled with the drop in the stock market values; placing both buyers and sellers onto the sidelines. Many do not believe we have yet to see the bottom, and that does not help companies that are currently looking for options to raise cash.
Not long ago it was a sellers market, but the abrupt shift in the past few months have left few options for businesses that need to sell. Owners are holding onto the "anchor" of their 2007 valuations, and those that do not need to sell (companies with little debt and plenty of cash on hand) are not looking to make any moves until prices rebound.
The good news is that there are strategic buyers / investors out there who are looking to invest. Companies need to be realistic and flexible. We also need consumer confidence to return, as the general public is a major factor in the overall economy. As as long as people are not spending, there will not be a rebound in other sectors.
I left the meeting with an upbeat feeling about the future for the economy. While there is still some tough times ahead, everyone seemed confident. The investment bankers and others in the room are looking for deals, and that is a good sign.
My 94-year-old dad has seen a lot of things transpire in the economy over his lifetime. He told me recently that there was one fact about an economic "bust". They have all been followed by a "boom" at some point.
I look forward to attending future TMA meetings in San Antonio and Austin. It is a good organization with some great people involved.
Have A Great Day.
thom
The speaker for the meeting was Cliff Atherton, managing director from the Houston based investment bank GulfStar Group. His talk was titled "The Challenges For Middle Market Transactions in 2009", and he did a great job of detailing the ups and downs that companies face in the coming year.
I enjoyed the presentation and all the conversations with the other professionals in attendance. My head was left spinning from talk about the economy, but this is an important topic for everyone, regardless of what we do for a living.
While Texas is just beginning to feel the changes that have impacted the rest of the country caused by the panic that hit all the markets in October, we are not immune from the crisis.
M&A has shut down due to the limited amount of credit in the marketplace. Banks continue to preserve capital and are not making many new loans. Bankers are not being aggressive and debt is more expensive. As we enter the new year following Q4 2008, we are seeing fewer transactions and the lack of available money, coupled with the drop in the stock market values; placing both buyers and sellers onto the sidelines. Many do not believe we have yet to see the bottom, and that does not help companies that are currently looking for options to raise cash.
Not long ago it was a sellers market, but the abrupt shift in the past few months have left few options for businesses that need to sell. Owners are holding onto the "anchor" of their 2007 valuations, and those that do not need to sell (companies with little debt and plenty of cash on hand) are not looking to make any moves until prices rebound.
The good news is that there are strategic buyers / investors out there who are looking to invest. Companies need to be realistic and flexible. We also need consumer confidence to return, as the general public is a major factor in the overall economy. As as long as people are not spending, there will not be a rebound in other sectors.
I left the meeting with an upbeat feeling about the future for the economy. While there is still some tough times ahead, everyone seemed confident. The investment bankers and others in the room are looking for deals, and that is a good sign.
My 94-year-old dad has seen a lot of things transpire in the economy over his lifetime. He told me recently that there was one fact about an economic "bust". They have all been followed by a "boom" at some point.
I look forward to attending future TMA meetings in San Antonio and Austin. It is a good organization with some great people involved.
Have A Great Day.
thom
Monday, January 05, 2009
New Year Enthusiasm
Today was the first official work day of 2009.
If each day of the year everyone worked with the same level of enthusiasm that they put forth today, there would be no recession.
I saw it in every aspect of my day. People were pumped up: At work, online, in restaurants, in coffee shops, on the street, ...EVERYWHERE!!! Never before have so many people been so happy to see the old year closed out and be over.
Good-bye 2008...don't let the door hit you in the ass!
SLAM. The last year is shut and nailed closed. Seems everyone had issues with 2008.
Today people had an optimistic glow about them. Smiles were returning to faces and their eyes again had that twinkle of hope that had been missing during the fourth quarter.
Everyone was working hard to launch 2009 with gusto. Seems they were looking ahead to all their big projects in the upcoming months and getting the ball rolling.
I had three meeting planners contact me in one day to inquire about my speaking at their events this year. That was exciting, as I am looking to do more professional speaking this year, and it was fun to talk with them and hear their plans for meetings, educational seminars and conferences.
The worries about the economy seemed to be melting away as people were tackling a variety of action items to move forward with the new year. Everyone had long "To Do" lists today and were plowing through leaving check marks behind them as they flew down the page.
Yes, it is just one day. But I was watching everyone I encountered on this first work day of 2009 as a way of looking into the crystal ball. I cannot really predict the future, but if today has any insight, this year has some great things coming for us all.
Happy New Year and Have A Great Day.
thom
If each day of the year everyone worked with the same level of enthusiasm that they put forth today, there would be no recession.
I saw it in every aspect of my day. People were pumped up: At work, online, in restaurants, in coffee shops, on the street, ...EVERYWHERE!!! Never before have so many people been so happy to see the old year closed out and be over.
Good-bye 2008...don't let the door hit you in the ass!
SLAM. The last year is shut and nailed closed. Seems everyone had issues with 2008.
Today people had an optimistic glow about them. Smiles were returning to faces and their eyes again had that twinkle of hope that had been missing during the fourth quarter.
Everyone was working hard to launch 2009 with gusto. Seems they were looking ahead to all their big projects in the upcoming months and getting the ball rolling.
I had three meeting planners contact me in one day to inquire about my speaking at their events this year. That was exciting, as I am looking to do more professional speaking this year, and it was fun to talk with them and hear their plans for meetings, educational seminars and conferences.
The worries about the economy seemed to be melting away as people were tackling a variety of action items to move forward with the new year. Everyone had long "To Do" lists today and were plowing through leaving check marks behind them as they flew down the page.
Yes, it is just one day. But I was watching everyone I encountered on this first work day of 2009 as a way of looking into the crystal ball. I cannot really predict the future, but if today has any insight, this year has some great things coming for us all.
Happy New Year and Have A Great Day.
thom
Tuesday, December 30, 2008
Experiences Trump Things
I love reading the Sunday paper. I do not always have the time, but enjoy the ritual whenever the chance comes my way. I often take over a tiny corner of my local Starbucks and steal some peaceful time skimming by the events and opinions of those who make the written words come to life.
I almost never visit a Starbucks to get coffee "to go". What makes the over-priced coffee a true value is to sit in the inviting atmosphere and soak in the world around me. The experience of sitting and reading is what makes the coffeehouse so inviting.
One of my favorites reads in the Sunday paper is a relatively new syndicated column that appears in the Austin American-Statesman called "Yoder & Son". The piece revolves around money issues that face families and is written by WSJ journalist Steve Yoder and his 17 year-old son Issac. They split the column in a "He Said / He Said" fashion covering the topic of the day from the eyes of a frugal father and a young son just being launched into the world.
This week they wrote the column from their family Christmas trip to Slovakia. Each year the Yoders take an exotic trip, even though they are not "uber-wealthy". Steve began by pointing out that some might be offended during a recession that they were jetting off to Europe for the holiday break, but later pointed out that they do this by not having new cars or a fancier house. It is all about choices. It is all about providing the family with shared experiences.
Issac went on to write about how a lifetime of travel to unique places makes him appreciate experiences more than things. As a parent this touched my soul, as we live in a very materially focused world, and yet kids do get the messages that we send them by the choices that we as parents make.
I can relate to the trepidation about planning such trips in these tough economic times. A friend who received our holiday card (featuring my family in a gondola in Venice from Summer 2008) commented (with a hint of judgement) that we sure seem spend a lot of money on travel. Granted, our last four holiday cards photos have featured my family on trips to France, San Diego, Ireland and Italy. However, our 2005 trip to Italy and France was the first major vacation we had ever taken in over 13 years of being married. (Before we got married my wife had visited Europe and I had been to Asia and Brazil).
I resonated with Steve & Issac Yoder's viewpoint about the importance of travel and creating a library of memories with the family. I hope that my children will grow to have the same appreciation of the world that Issac Yoder seems to have grasped. I will continue to drive my little Mazda Tribute if it means my girls will continue to have experiences rather than things.
Everything we do in life is about choices. Experiences trump things, and thus the money spent on travel can become an investment in the family on multiple levels. I have been very stressed about the money necessary for our scheduled trip to Spain this year and was considering not going. But Yoder made the point of a trip he canceled in 1990 for the same reason and labeled it "the most expensive $2000 he ever saved", highlighting the cost of the experiences they missed. Amen.
If you are raising kids and money is an issue in your house, I recommend you read "Yoder & Son" in your local paper each week. Their prospective is spot on, and they will make you think about how you tackle the tough (and not so tough) issues.
I hope that when my daughters are 17 years old they will understand the choices that we have made for them along the way, and cherish the experience.
Have A Great Day.
thom
I almost never visit a Starbucks to get coffee "to go". What makes the over-priced coffee a true value is to sit in the inviting atmosphere and soak in the world around me. The experience of sitting and reading is what makes the coffeehouse so inviting.
One of my favorites reads in the Sunday paper is a relatively new syndicated column that appears in the Austin American-Statesman called "Yoder & Son". The piece revolves around money issues that face families and is written by WSJ journalist Steve Yoder and his 17 year-old son Issac. They split the column in a "He Said / He Said" fashion covering the topic of the day from the eyes of a frugal father and a young son just being launched into the world.
This week they wrote the column from their family Christmas trip to Slovakia. Each year the Yoders take an exotic trip, even though they are not "uber-wealthy". Steve began by pointing out that some might be offended during a recession that they were jetting off to Europe for the holiday break, but later pointed out that they do this by not having new cars or a fancier house. It is all about choices. It is all about providing the family with shared experiences.
Issac went on to write about how a lifetime of travel to unique places makes him appreciate experiences more than things. As a parent this touched my soul, as we live in a very materially focused world, and yet kids do get the messages that we send them by the choices that we as parents make.
I can relate to the trepidation about planning such trips in these tough economic times. A friend who received our holiday card (featuring my family in a gondola in Venice from Summer 2008) commented (with a hint of judgement) that we sure seem spend a lot of money on travel. Granted, our last four holiday cards photos have featured my family on trips to France, San Diego, Ireland and Italy. However, our 2005 trip to Italy and France was the first major vacation we had ever taken in over 13 years of being married. (Before we got married my wife had visited Europe and I had been to Asia and Brazil).
I resonated with Steve & Issac Yoder's viewpoint about the importance of travel and creating a library of memories with the family. I hope that my children will grow to have the same appreciation of the world that Issac Yoder seems to have grasped. I will continue to drive my little Mazda Tribute if it means my girls will continue to have experiences rather than things.
Everything we do in life is about choices. Experiences trump things, and thus the money spent on travel can become an investment in the family on multiple levels. I have been very stressed about the money necessary for our scheduled trip to Spain this year and was considering not going. But Yoder made the point of a trip he canceled in 1990 for the same reason and labeled it "the most expensive $2000 he ever saved", highlighting the cost of the experiences they missed. Amen.
If you are raising kids and money is an issue in your house, I recommend you read "Yoder & Son" in your local paper each week. Their prospective is spot on, and they will make you think about how you tackle the tough (and not so tough) issues.
I hope that when my daughters are 17 years old they will understand the choices that we have made for them along the way, and cherish the experience.
Have A Great Day.
thom
Monday, December 01, 2008
Ben Bernanke in Austin
I had the good fortune to be nearly front and center today at a speech given by Federal Reserve Chairman Ben Bernanke. It was his first major policy address since the economy got into this mess in October. vcfo had purchased a table and we attended with several clients and other friends of our firm.
His presentation to the Greater Austin Chamber of Commerce had been scheduled six months in advance, and the historic economic events of the past few months made this one of the highest attended business luncheons I have EVER seen in Austin (appox 1700 people!).
Mr. Bernanke is a smart guy. Much smarter than I am. I strained to listen to his every word and to understand the importance of what he and the rest of the government officials are doing to help stabilize the global economy. While he was clear that we still have some tough times ahead, I found that his message also had up-beat undertones. He was clear that this crisis is NOTHING like the Great Depression, and he sighted several reasons why this is not the same situation that faced the policy makers 80 years ago.
What I found most interesting was how the national media reported the comments made by the leader of The Fed to the Austin business community. Before I had time to drive back to my office there were stories up on Forbes.com, The New York Times website, SmartMoney.com, CNN Money.com and countless other financial sites about the Chairman's comments. They all had negative headlines (such as "Bernanke: Economic Weakness to Continue"), many of which implied that today's talk in Austin was somehow linked to the stock market's 670 point drop (his talk concluded about an hour before the markets closed in New York, although I am sure that the transcript of this talk was released to the press earlier in the day). Maybe those out of town who read the transcript got a different message than those of us who heard the spoken word live and in person. I understood his comments as very balanced about the future.
The address really had no new revelations about the state of economic affairs - but it was both realistic and cautious while still optimistic. The fact that the media would all use negative headlines on this evenly weighted (between positives and negatives) speech is a reminder that bad news sells more papers. The articles did go on to quote his more optimistic points, but much lower on the page.
I wonder, does the way the media report on such stories help to feed the continued downturn?
I will say that Mr. Bernanke struck me as both brilliant and funny. In his prepared remarks he was sort of dry, but during the Q&A he was both light hearted and self-deprecating. I feel better about the future of the economy knowing he is one of the people steering the ship. Hopefully he will prove me right!
Have A Great Day.
thom
His presentation to the Greater Austin Chamber of Commerce had been scheduled six months in advance, and the historic economic events of the past few months made this one of the highest attended business luncheons I have EVER seen in Austin (appox 1700 people!).
Mr. Bernanke is a smart guy. Much smarter than I am. I strained to listen to his every word and to understand the importance of what he and the rest of the government officials are doing to help stabilize the global economy. While he was clear that we still have some tough times ahead, I found that his message also had up-beat undertones. He was clear that this crisis is NOTHING like the Great Depression, and he sighted several reasons why this is not the same situation that faced the policy makers 80 years ago.
What I found most interesting was how the national media reported the comments made by the leader of The Fed to the Austin business community. Before I had time to drive back to my office there were stories up on Forbes.com, The New York Times website, SmartMoney.com, CNN Money.com and countless other financial sites about the Chairman's comments. They all had negative headlines (such as "Bernanke: Economic Weakness to Continue"), many of which implied that today's talk in Austin was somehow linked to the stock market's 670 point drop (his talk concluded about an hour before the markets closed in New York, although I am sure that the transcript of this talk was released to the press earlier in the day). Maybe those out of town who read the transcript got a different message than those of us who heard the spoken word live and in person. I understood his comments as very balanced about the future.
The address really had no new revelations about the state of economic affairs - but it was both realistic and cautious while still optimistic. The fact that the media would all use negative headlines on this evenly weighted (between positives and negatives) speech is a reminder that bad news sells more papers. The articles did go on to quote his more optimistic points, but much lower on the page.
I wonder, does the way the media report on such stories help to feed the continued downturn?
I will say that Mr. Bernanke struck me as both brilliant and funny. In his prepared remarks he was sort of dry, but during the Q&A he was both light hearted and self-deprecating. I feel better about the future of the economy knowing he is one of the people steering the ship. Hopefully he will prove me right!
Have A Great Day.
thom
Tuesday, October 14, 2008
Navigating The Credit Crisis
This guest blog post originally appeared on the Austin Start-up Blog on October 14, 2008. The author, Ellen Wood, is the owner of the company where I work, vcfo, inc.
Ellen Wood is the co-founder and CEO of Austin based vcfo, inc. The firm specializes in operational finance and accounting, HR Solutions and recruiting services for companies of all sizes. She can be reached at 512-345-9441. www.vcfo.com.
The ongoing credit crisis is the major topic from Wall Street to Main Street in recent weeks. From business owners to employees, everyone is concerned about the long term effects of the current financial situations on their industry.
Many Austin based companies are wondering what tomorrow will bring for the early stage / start up environment and if there will be access to creative alternative funding sources in order to provide options in the face of unexpected liquidity challenges.
It is my belief that no segment of the economy will escape untouched. Many companies are not prepared to withstand significant changes to their debt facilities. Changes are already happening - ranging from cancelled facilities to changes in terms - to all forms of working capital credit including; term loans, revolvers, AR facilities, staged equity infusions, purchase order financing, and even factoring.
Anticipate the impact and begin to prepare immediately to weather the economic turbulence ahead for all sectors of the economy. If you feel you need help doing this, seek advice from professionals in evaluating the impact on your company. Evaluate your exposure, optimize your existing financing, and secure alternative funding sources if appropriate to your situation. Some specific things to pay attention to follow:
- Review carefully your loan documentation with special attention to covenants and what constitutes a material adverse condition.
- Update your forecast and project your covenant compliance under revised projection.
- Contact your banker proactively if you anticipate missing any of your covenants or other commitments, but be prepared to answer their questions and ideally to suggest whatever changes you feel you need to make to the facility.
- If you opened the company American Express Card then likely it is still relying on your personal credit even if multiple cards have been issued. You may not even be with the company any more. Make sure this liability is not your personal liability.
- Understand your personal liability for any debt instrument or lease arrangement.
- Anticipate that shareholder loans you may have made to your company may be restricted as to repayment.
- If you are working with a staged equity infusion agreement, review your milestones against current projections. Identify potential misses and suggest alternative terms.
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