Why Working More Than 40 Hours a Week is Useless

Research shows that consistently working more than 40 hours a week is simply unproductive.

For many in the entrepreneurship game, long hours are a badge of honor. Starting a business is tough, so all those late nights show how determined, hard working and serious about making your business work you are, right?

Wrong. According to a handful of studies, consistently clocking over 40 hours a week just makes you unproductive (and very, very tired).

That's bad news for most workers, who typically put in at least 55 hours a week,recently wrote Sara Robinson at Salon. Robinson's lengthy, but fascinating, article traces the origins of the idea of the 40-hour week and it's downfall and is well worth a read in full. But the essential nugget of wisdom from her article is that working long hours for long periods is not only useless – it's actually harmful. She wrote:

The most essential thing to know about the 40-hour work-week is that, while it was the unions that pushed it, business leaders ultimately went along with it because their own data convinced them this was a solid, hard-nosed business decision….

Evan Robinson, a software engineer with a long interest in programmer productivity (full disclosure: our shared last name is not a coincidence) summarized this history in a white paper he wrote for the International Game Developers’ Association in 2005. The original paper contains a wealth of links to studies conducted by businesses, universities, industry associations and the military that supported early-20th-century leaders as they embraced the short week. 'Throughout the ’30s, ’40s and ’50s, these studies were apparently conducted by the hundreds,' writes Robinson; 'and by the 1960s, the benefits of the 40-hour week were accepted almost beyond question in corporate America. In 1962, the Chamber of Commerce even published a pamphlet extolling the productivity gains of reduced hours.'

What these studies showed, over and over, was that industrial workers have eight good, reliable hours a day in them. On average, you get no more widgets out of a 10-hour day than you do out of an eight-hour day.

Robinson does acknowledge that working overtime isn't always a bad idea. "Research by the Business Roundtable in the 1980s found that you could get short-term gains by going to 60- or 70-hour weeks very briefly — for example, pushing extra hard for a few weeks to meet a critical production deadline," she wrote. But Robinson stressed that "increasing a team’s hours in the office by 50 percent (from 40 to 60 hours) does not result in 50 percent more output...In fact, the numbers may typically be something closer to 25-30 percent more work in 50 percent more time."

The clear takeaway here is to stop staying at the office so late, but getting yourself to actually go home on time may be more difficult psychologically than you imagine.

As author Laura Vanderkam has pointed out, for many of us, there's actually a pretty strong correlation between how busy we are and how important we feel. "We live in a competitive society, and so by lamenting our overwork and sleep deprivation — even if that requires workweek inflation and claiming our worst nights are typical — we show that we are dedicated to our jobs and our families," she wrote recently in the Wall Street Journal.

Long hours, in other, words are often more about proving something to ourselves than actually getting stuff done.

Are your 55+ hour weeks really productive and sustainable?

The Job You Should Focus on the Most

Forget about industry awards or impressive milestones. If you want to know the true measure of your company, look at the worst job on the payroll.

Think about a terrible company you’ve worked for. (We’ve all worked for at least one terrible company, even if that company was our own.)

Then think about the worst job on the job perception totem pole. I bet it was the pits: no challenge, limited resources, few incentives to perform well, no real hope of recognition or advancement… when you think about it that job was like a poster child for the organization itself.

Now think about your company. What is the worst job? Don’t assume the worst job is the lowest job; sometimes the worst job is actually one of the high level, highly paid positions.

If there is no clear loser, what is the one task no one wants to do? Maybe it’s taking inventory, or calling the biggest offenders on the accounts receivable list, or processing returns, or vetting new customers.

Identify the worst job and then fix it. Your entire business will benefit—because the true measure of a company is its worst job.

Allowing a terrible job to stay terrible negatively impacts your entire organization. Ignoring the need for additional resources, or greater recognition, or incentives to perform at a high level in one position causes you to ignore less obvious but similar problems in other positions. And it sends the signal that at least a few employees are less valuable.

Sure, some employees are naturally more important to the success of an organization—but every employee should be made to feel equally valuable. There’s a subtle but important difference, one that’s your job to maintain.

A friend of mine runs his company that way. Instead of creating process improvement teams, implementing a Deming cycle, or calling in the black belts, he has two (very smart, very self-motivated, and excellent team player) employees whose only goal is to improve the worst jobs and most-avoided tasks. One week they’re in the warehouse figuring out how to limit the number of inventory touches; the next week they’re in quality control figuring out how to move certain tests to the shop floor where they belong; the next week they’re in the maintenance area figuring out how to make parts clean-ups safer.

Keep in mind the goal isn’t to make a terrible job “cushier.” The goal is to make a terrible job better by providing the right resources, the right training, and the right incentives so every employee can justifiably feel great about their achievements. A great job isn’t an easy job; a great job is one any person can be proud to perform.

You may not be able to improve the worst jobs by dedicating a team or even a person to that role. (Although you should think hard about it; typically when you improve a job you do so by improving efficiency, reducing waste, eliminating roadblocks—the return is almost always worth the investment.) 

But there is one person you can assign: You. Identify the worst job and fix what’s wrong. Then rinse and repeat.

When each employee feels valuable, every employee benefits—and your business does, too.

The Science of Building Trust

What makes your employees feel vulnerable and skeptical--and how to overcome it to build a higher-performing organization.

Years ago I was one of a handful of people hired to help turn around a family owned and operated manufacturing plant that had just been sold to an investment group.

Early on we had a tough time building rapport with employees; they knew we were brought in to make major changes.

One day I was in a conference room with Jimmy, a bindery supervisor, and Randy, the manager of customer service and scheduling. Randy was part of the new leadership team. Jimmy had worked at the plant for more than 20 years.

Randy and I were discussing (read: whining) how hard it was to get employees to accept new processes, and Jimmy said, “That’s because they don’t trust you.”

“I know,” Randy said. “I’m doing my best to figure out ways to show my teams they can trust me.”

Jimmy replied, “Don’t waste time thinking about it. No matter what you try some of them will never trust you. You can’t figure out trust. You either have it or you don’t. Trust isn’t a science.”

At the time I thought he was probably right.

But I was wrong. There is a science behind trust—a science you can apply to almost every situation.

According to Robert F. Hurley, author of The Decision to Trust: How Leaders Create High-Trust Organizations, (and no, I didn’t ghostwrite it), there are 10 specific factors that form the basis—or lack—of trust. Hurley’s extensive research on decision-making shows we make decisions about trust based on 10 factors: risk tolerance, adjustment, power, situational security, similarities, interests, benevolent concern, capability, predictability, and communication.

Objectively assessing each factor—positive or negative, present or not present, etc.—makes it possible to determine how you can actively build trust in your employees and your organization.

For example, assessing two of Robert’s trust factors makes it easy to see why most employees were at first hesitant to trust us.

Risk Tolerance: People who avoid risk tend to need significant time and reassurance before even starting to trust someone.

The plant was certainly not the employer of choice in the area—pay was relatively low and opportunities for advancement relatively scarce—but even so the average employee had worked there for ten years. Employees stayed because they were comfortable and the sale of the plant had destroyed their sense of security. While a few people saw us and thought, “Hey, maybe he’ll give me a chance,” most thought, “I wonder what he’s going to do to me...”

Power: People with little authority and no recourse feel vulnerable.

The previous ownership was far from professional and their decisions often inconsistent, so most employees had learned to take advantage. As a result even entry-level employees felt a strong sense of power and control. When we arrived that sense of power disappeared. The last thing I wanted to hear was, “But that’s how so-and-so always did things,” because how so-and-so did things had taken the plant to the brink. Most employees had lost any perceived power and were unable to trust us.

Robert describes a number of other trust factors that were also at play; the plant was like a full serving of what he calls the "Decision to Trust Model".

But even though I didn’t fully understand the science behind trust, I still managed to do a few things right.  I knew employees were concerned about the future so I quickly determined which formal leaders were also informal leaders. (As you know, there’s often a huge difference.) I dealt with the risk factor by telling the informal leaders how critical they were to the future success of the plant, and proved I felt that way by expanding their turf and giving them broader decision-making authority.

While the book is based on years of research and testing to see how people actually make decisions about trust—and how all of us can influence those decisions—the biggest takeaway is simple.

When you put yourself in your employees’ place and consider their perspectives and their needs, you can easily determine the best ways to act and communicate so you can create an environment of empowerment and trust... and in the process build a high-performing organization.

Just make sure you use your new powers for good, not evil.

9 Ways to See Change Coming (Before it Kills Your Business)

Great strategic thinkers have a gift for seeing threats and opportunities before anyone else. Here's what they look for.

To get a business going, you need entrepreneurial vision. To keep it performing at a high level day to day, you need intense operational focus. But to survive for the long run, you need a different kind of skill, one that I consider a core attribute of true strategic leaders. In my book with George Day, we call it peripheral vision. 

Sad to say, most companies aren’t very good at this. When new threats or opportunities emerge on the periphery of their usual business environment, they fail to notice them or misinterpret their import. Most leaders have a hard time with the weak and ambiguous signals that are often the only earning warning signs of impending change.

What Lego failed to see coming

There are many examples: Coors failed to see the trend toward low carb beer until it was too late. Michelin overlooked the crucial role of service stations for their new Flat Run tire.  Mattell's Barbie was blindsided by the popularity of the Bratz doll. Another notable case is Lego, which responded poorly to the electronic revolution in toys and gaming, and then went on to underestimate the squeeze that Wal-Mart and China would put on its pricing power.

As a business owner, you always face the temptation to focus on managing your current offering in the immediate business environment. Someone has to do this, to be sure, and giving unwavering attention to operations will often pay off in short-term performance. But by zeroing in on what’s in front of you, you naturally lose peripheral vision—and that can threaten your company’s long-term survival. 

Having peripheral vision means that you monitor what is happening around the edges of your business: You keep tabs on other industries, distant markets, new research, emerging business models, and remote demographic data that may seem to have little relevance to your portfolio. But strategic peripheral vision is about much more than simply anticipating change.  It is about sensing where to look more carefully for clues, understanding how to interpret weak signals, and having the courage to act when the signals are still ambiguous.

Mastering the art of anticipation

How do you master the art of anticipation? Our study of over 160 senior executives found that a vigilant attitude is the most important trait of strategic leaders who are good at anticipating and exploiting change. To break that down into a set of practices, we’ve found that such leaders do nine things well. They:

• Look for game changing information at the periphery of their business
• Search beyond the boundaries of current, prevailing views
• Recognize potential changes before the competition does
• Connect the dots of incipient trends by triangulating weak signals
• Entertain multiple hypotheses about causes of change
• Encourage mavericks in their company to say what they really think
• Organize “paranoia sessions” to tap wisdom inside their company
• Build wide networks inside and outside the organization
• Remain vigilant and curious about signals from many spheres

It’s important to note that there are two ways you need to look at your periphery. One way, just described, is to “mind” the periphery. This requires divergent attention and means that you pay attention to actions across many areas and connect the dots of trends that may present approaching threats or opportunities.

Don't just "mind" the periphery. "Mine" it, too.

But there are other sources of threat and opportunity you need to watch. Sometimes they originate in a well-defined part of the periphery, such as pending regulations or a specific technology. In such cases, you want to thoroughly “mine” for knowledge.  In other words, only a very close examination reveals the key insights, usually after triangulating multiple sources of information. This requires a strong convergent focus on a specific part of the periphery and rapidly developing the capacity to respond to it. 

The good news is, failures of strategic anticipation aren’t always fatal. After Lego experienced a deep crisis in the early part of last decade, the company changed its approach.  It improved communications with retailers and customers, viewing them as strategic radar and sources of new ideas.  Lego teamed up with outside inventors to create new products.  Other outside parties helped it create T-shirts, movies, books, toys and games.  Lego also developed robotic kits to replace its 1998 product, emphasizing intelligent bricks, a new programming language, motors and sensors, starter models and teaching materials for schools.

It was a happy ending, as it turned out. But it would have been much better, wouldn't it, had the company anticipated the changes before they nearly did it in. And if you’re serious about being a strategic thinker at your company, that's your job.

Has the Word 'Entrepreneur' Lost Its Meaning?

Now that everyone is a so-called entrepreneur, the word is losing its edge. And entrepreneurship with a big E is a pain in the neck.

We are in the golden age of entrepreneurship. In fact, it has become so mainstream that it’s bordering on cliché.

The majority of generation Y says they want to start a company, according to USA Today. Entrepreneurship is the most popular focus in MBA programs. And half the resumes I see have some sort of self-started company listed at one point or another.

But we need to stop talking about being an entrepreneur. I find that people either use the label entrepreneur to tell everyone how great they are, as if entrepreneurship is the equivalent of Hollywood stardom. Or, people use the label to convey personal disdain, as in, “I want to be an entrepreneur but I’m ….” 

In fact, most people are entrepreneurs, whether they embrace the label or not. They have to control their own career and make their own jobs. And most people who do call themselves entrepreneurs are worried that they don’t have an idea, worried that their idea isn’t working, or worried that they are starving and will need to take a staff position at some huge company. So the difference between who is and who isn’t an entrepreneur is vague. We toss around the word entrepreneur so much that the word is quickly becoming meaningless. Here’s why:

1. Everyone is an entrepreneur.

Entrepreneurship means taking responsibility for yourself. It means you assume that there won’t be anyone there to hand you a reliable paycheck, nor will there be anyone else to make sure you’re on a suitable career path. In today’s workforce, you are either thinking this way or you are unemployable. Entrepreneurship is the safety net we hold onto in a very unstable and unforgiving workplace. 

2. Entrepreneurship is often a part-time time job. In the shower.

It’s very hard to think of a business idea. Most ideas stink. I have had three startups, all of them funded, and it takes me about three years to come up with a solid, new fundable idea. So yes, I’m an entrepreneur, but I don’t have a company and I don’t have an idea, and I’m just like the guy in the cube next to you who goes to work every day trying to figure out what his next step is. And, like many people, my best ideas happen in the shower.

3. Entrepreneurship with a big E is a big pain.

The kind of company you can exit from, the kind of company that you hear tossed around at cocktail parties like, “He sure has a lot of money now!” Those type of companies are incredibly high-pressure, all-consuming and extremely high-risk. Most ideas don’t succeed even if they get some funding. Most founders kill their personal credit on the idea and don’t exit, and most marriages dissolve when one person is married to their company. 

4. The risks of self-employment do not go with parenting.

Look, of course the idea of working for yourself is appealing. Until you have to manage a totally unreliable income and support your kids. Then it’s really scary. Very few people find that the benefits of self-employment outweigh the very real fear of not knowing if you can pay for your kid’s camp next summer. Erratic income is very, very hard on kids. (I would know. My electricity was turned off.)

5. Entrepreneurship is not glamorous. Cashing out is glamorous.

Of course it’s exciting to be the idea person and change the world. But most self-employed people are doing drudge work most of the day. Because when it’s your business, you want to do as much of it as possible in order to protect your profit margin. Entrepreneurs wear forty different hats. You know this. What you don’t know is that 39 of them are entry-level.

So when you walk around saying you want to be an entrepreneur, recognize that what you really want is control over your financial life and recognition for your ideas. You can get that in a wide range of jobs much more easily than you can get it working for yourself.

But this doesn’t mean you are giving up your dream to be an entrepreneur. It means you recognize that entrepreneurship is a mindset that is non-negotiable in today’s market. What is negotiable is how much risk you take. And for most people a startup is simply too chaotic to be enjoyable. 

The 5 Qualities of Remarkable Bosses

Consistently do these five things and the results you want from your employees--and your business--will follow.

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In the eyes of his or her employees, a remarkable boss is a star. Remember where you came from, and be gracious with your stardom.

 

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Remarkable bosses aren’t great on paper. Great bosses are remarkable based on their actions.

Results are everything—but not the results you might think.

Consistently do these five things and everything else follows. You and your business benefit greatly.

More importantly, so do your employees.

1. Develop every employee. Sure, you canput your primary focus on reaching targets, achieving results, and accomplishing concrete goals—but do that and you put your leadership cart before your achievement horse.

Without great employees, no amount of focus on goals and targets will ever pay off. Employees can only achieve what they are capable of achieving, so it’s your job to help all your employees be more capable so they—and your business—can achieve more.

It's your job to provide the training, mentoring, and opportunities your employees need and deserve. When you do, you transform the relatively boring process of reviewing results and tracking performance into something a lot more meaningful for your employees: Progress, improvement, and personal achievement.

So don’t worry about reaching performance goals. Spend the bulk of your time developing the skills of your employees and achieving goals will be a natural outcome.

Plus it’s a lot more fun.

2. Deal with problems immediately. Nothing kills team morale more quickly than problems that don't get addressed. Interpersonal squabbles, performance issues, feuds between departments... all negatively impact employee motivation and enthusiasm.

And they're distracting, because small problems never go away. Small problems always fester and grow into bigger problems. Plus, when you ignore a problem your employees immediately lose respect for you, and without respect, you can't lead.

Never hope a problem will magically go away, or that someone else will deal with it. Deal with every issue head-on, no matter how small.

3. Rescue your worst employee. Almost every business has at least one employee who has fallen out of grace: Publicly failed to complete a task, lost his cool in a meeting, or just can’t seem to keep up. Over time that employee comes to be seen by his peers—and by you—as a weak link.

While that employee may desperately want to “rehabilitate” himself, it's almost impossible. The weight of team disapproval is too heavy for one person to move.

But it’s not too heavy for you.

Before you remove your weak link from the chain, put your full effort into trying to rescue that person instead. Say, "John, I know you've been struggling but I also know you're trying. Let's find ways together that can get you where you need to be." Express confidence. Be reassuring. Most of all, tell him you'll be there every step of the way.

Don't relax your standards. Just step up the mentoring and coaching you provide.

If that seems like too much work for too little potential outcome, think of it this way. Your remarkable employees don’t need a lot of your time; they’re remarkable because they already have these qualities. If you’re lucky, you can get a few percentage points of extra performance from them. But a struggling employee has tons of upside; rescue him and you make a tremendous difference.

Granted, sometimes it won't work out. When it doesn't, don't worry about it.  The effort is its own reward.

And occasionally an employee will succeed—and you will have made a tremendous difference in a person's professional and personal life.

Can’t beat that.

4. Serve others, not yourself. You can get away with being selfish or self-serving once or twice... but that's it.

Never say or do anything that in any way puts you in the spotlight, however briefly. Never congratulate employees and digress for a few moments to discuss what you did.

If it should go without saying, don't say it. Your glory should always be reflected, never direct.

When employees excel, you and your business excel. When your team succeeds, you and your business succeed. When you rescue a struggling employee and they become remarkable, remember they should be congratulated, not you.

You were just doing your job the way a remarkable boss should.

When you consistently act as if you are less important than your employees—and when you never ask employees to do something you don’t do—everyone knows how important you really are.

5. Always remember where you came from. See an autograph seeker blown off by a famous athlete and you might think, “If I was in a similar position I would never do that.”

Oops. Actually, you do. To some of your employees, especially new employees, you are at least slightly famous. You’re in charge. You’re the boss.

That's why an employee who wants to talk about something that seems inconsequential may just want to spend a few moments with you.

When that happens, you have a choice. You can blow the employee off... or you cansee the moment for its true importance: A chance to inspire, reassure, motivate, and even give someone hope for greater things in their life. The higher you rise the greater the impact you can make—and the greater your responsibility to make that impact.

In the eyes of his or her employees, a remarkable boss is a star.

Remember where you came from, and be gracious with your stardom.

Want to learn more ways to become an even stronger business leader? Join Inc. June 6-8, in Miami, for The Inc. Leadership Forum.

8 Qualities of Remarkable Employees

Forget good to great. Here's what makes a great employee remarkable.

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Great employees are reliable, dependable, proactive, diligent, great leaders and great followers... they possess a wide range of easily-defined—but hard to find—qualities.

A few hit the next level. Some employees are remarkable, possessing qualities that may not appear on performance appraisals but nonetheless make a major impact on performance.

Here are eight qualities of remarkable employees:

1. They ignore job descriptions. The smaller the company, the more important it is that employees can think on their feet, adapt quickly to shifting priorities, and do whatever it takes, regardless of role or position, to get things done.

When a key customer's project is in jeopardy, remarkable employees know without being told there's a problem and jump in without being asked—even if it's not their job.

2. They’re eccentric... The best employees are often a little different: quirky, sometimes irreverent, even delighted to be unusual. They seem slightly odd, but in a really good way. Unusual personalities shake things up, make work more fun, and transform a plain-vanilla group into a team with flair and flavor.

People who aren't afraid to be different naturally stretch boundaries and challenge the status quo, and they often come up with the best ideas.

3. But they know when to dial it back. An unusual personality is a lot of fun... until it isn't. When a major challenge pops up or a situation gets stressful, the best employees stop expressing their individuality and fit seamlessly into the team.

Remarkable employees know when to play and when to be serious; when to be irreverent and when to conform; and when to challenge and when to back off. It’s a tough balance to strike, but a rare few can walk that fine line with ease.

4. They publicly praise... Praise from a boss feels good. Praise from a peer feels awesome, especially when you look up to that person.

Remarkable employees recognize the contributions of others, especially in group settings where the impact of their words is even greater.

5. And they privately complain. We all want employees to bring issues forward, but some problems are better handled in private. Great employees often get more latitude to bring up controversial subjects in a group setting because their performance allows greater freedom.

Remarkable employees come to you before or after a meeting to discuss a sensitive issue, knowing that bringing it up in a group setting could set off a firestorm.

6. They speak when others won’t. Some employees are hesitant to speak up in meetings. Some are even hesitant to speak up privately.

An employee once asked me a question about potential layoffs. After the meeting I said to him, “Why did you ask about that? You already know what's going on.” He said, “I do, but a lot of other people don't, and they're afraid to ask. I thought it would help if they heard the answer from you.”

Remarkable employees have an innate feel for the issues and concerns of those around them, and step up to ask questions or raise important issues when others hesitate.

7. They like to prove others wrong. Self-motivation often springs from a desire to show that doubters are wrong. The kid without a college degree or the woman who was told she didn't have leadership potential often possess a burning desire to prove other people wrong.

Education, intelligence, talent, and skill are important, but drive is critical. Remarkable employees are driven by something deeper and more personal than just the desire to do a good job.

8. They’re always fiddling. Some people are rarely satisfied (I mean that in a good way) and are constantly tinkering with something: Reworking a timeline, adjusting a process, tweaking a workflow.

Great employees follow processes. Remarkable employees find ways to make those processes even better, not only because they are expected to… but because they just can't help it.

Do You Know Your SWOT?

The key to survival—whether it be in the "real" world or the business world—is to know your SWOT (Strengths, Weaknesses, Opportunities, and Threats).

According to the U.S. Small Business Association, roughly 50% of all businesses fail within their first year. There is no shortage of “Top Ten Reasons Why Businesses Fail” lists so I won’t go into that here, and I’m sure you could name many of the main culprits—poor management, lack of capitol, insufficient marketing, flawed business plan, etc.—without having to run a search or buy a “How to Succeed in Business” book. What I will talk about is how to avoid the common (and sometimes harder to find) missteps, mistakes, and missed-the-boat opportunities that can determine if your company sinks or swims.

If you’re one of the “lucky” ones who makes it to Day 366, don’t think for a nanosecond that you’re out of the water and are now one of Darwin’s success stories. Far from it. The truth is, your battle for survival has just begun. You’ve figured out how to stand on your own two legs, but now you need to learn how to not get knocked down.

"In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment." ~Charles Darwin

No matter how unique, innovative, creative, or “original” your product, there will always be competition that is vying for your customers. And you know what—that’s a good thing. Competition triggers our will to exist and reminds us that it is truly survival of the fittest. 

The key to survival—whether it be in the “real” world or the business world—is to have as much information as possible. Not only about your opponent, but about yourself. That’s where SWOT comes in.

SWOT is an acronym (another handy tool created by man to boost efficiency and increase curability) that stands for Strengths, Weaknesses, Opportunities, Threats.

SWOT provides the guidelines for critically assessing what you’re doing right, what you’re doing wrong, who or what can take you down, and what you can do to get—and stay—ahead of the pack.

And it’s not just Darwin who subscribes to this theory.

Strengths

“He who knows others is wise. He who knows himself is enlightened.” ~ Lao Tzu

In most cases bragging is looked upon as a bad thing. For this exercise it is highly encouraged. It’s important you have a clear recognition of the places where you and your business excel, but not just to give yourself a pat on the back. It’s crucial that you are aware of what you do best. Pediatricians don’t perform heart transplants, Shaquille O’Neal doesn’t shoot three pointers, and Quentin Tarantino doesn’t make G-rated movies. Why? Because they all know what they can do well and play to their strengths.

Key “Strength” Questions

• What’s the best part of what I do, and what do I do best?
• Why do people engage with my product?
• What gives me the greatest sense of accomplishment?

Weaknesses

“Our strength grows out of our weaknesses.” ~ Ralph Waldo Emerson

Bad news—you’re not perfect. Good news—that means you can always improve. Better news—the worse you are at something, the more room for improvement! This isn’t a “glass half full” perspective, it’s just the reality of things. Negatives can be turned into positives, but first you need to figure out what they are. Before you start making your list of shortcomings, make sure you’ve got your old pal Honesty by your side and kick Humility out to the curb. There’s no room for excuses, partiality, and beating around the bush. Without a 100% forthright and straightforward audit, you’ll never be able to optimize your business, and more importantly, survive.

Key “Weakness” Questions

• What can I do better?
• In what areas do I receive the most complaints (from consumers or employees)?
• Am I spending money on something that isn’t necessary?

When the Going Gets Tough, The Tough Get Coffee

It's not natural to reach out when your business is struggling. But that's exactly when you need to do it the most. Here are three ways a coffee can boost your business.

photo courtesy trublueboy http://www.sxc.hu/profile/trublueboy

 

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Running a small business is like riding a gigantic roller coaster. Sometimes you just want to close your eyes and scream.

When you’re on a steep downhill -- when the cash in your bank account is plummeting just as you need to make payroll -- the natural human instinct is to pull in, like a tortoise. We want to hide from the world in the safety of a hard shell that could pass for a rock.

But one of the best pieces of advice that I have ever received came from an accomplished and brilliant entrepreneur, just as I was going through a particularly rough patch: Do not become disconnected. Reach out to others.

Fine. What normal person reaches out to others when they feel like crap?

Here are three good reasons to fight your tortoise tendencies when your business hits bottom:

• You (and your team) may be in a rut. Entrepreneurs focus, drive hard and hold themselves to high standards. The flip side is that we can be our own toughest critics and run our teams ragged. Before you know it, everyone has lost their mojo. An outside voice can reset this parasitic dynamic and reignite the team. A new person may have some positive insights into the business’ strengths, constructive suggestions, or new areas or opportunities to think about. Either way, an outsider can break the stalemate of group think.

• Your next big opportunity could be a coffee away. The truth is that you never know where your best leads are going to come from, period. This is particularly counterintuitive for the analytically minded, high-tech entrepreneurs of my world. We think our leads will come from people who are as well-versed as we are in our specialized technology areas, replete with acronyms no one else understands. Wrong, wrong, wrong. How wrong? After attending a seminar by author Debra Fine, I got a terrific lead on a customer needing some very specialized optical scanning technology – right up our alley --  for a fellow entrepreneur in…the furniture business. Corporate furniture. Go figure.

• The world is not going to wait for you. Hiding in your office is not a winning strategy for unearthing new trends. Get out and see what is going on. Some areas of business are being turned on their heads. That’s a frightening prospect for incumbents. But these trends also present enormous opportunities that entrepreneurs can’t afford to miss.

Right now, I am seeing a tectonic shift in the business of manufacturing equipment, the kind that cranks out your beloved iPhones and iPads. In the “old days” of equipment, only big companies were players. It was a highly capital-intensive business with expectations of instant worldwide support. Then the other day, I saw a manufacturing system the size of a modest house, financed by a manufacturing company in China, and entirely designed and built by a network of small businesses in Silicon Valley. The system will be shipped to China in large containers and reassembled there. The value is in the design. The big infrastructure, cash reserves, and support of the big companies is not valued by the customer. It’s a huge opportunity for small companies, especially those that know how to collaborate.

The next time you are feeling down, fight against your instincts, and text a fellow entrepreneur. Coffee? Tea? If things are really tough, maybe you need something stronger. Just get out of your shell.