Why You Should Systemize Your Next Idea

Having a side hustle isn’t a luxury anymore, it’s a necessity.

Today’s middle class is barely making it. Therefore thinking about your next business idea should be reality (like yesterday).

The main reason 80% of businesses fail within 5 years is because of its faulty foundation: you.

That’s not a knock of your skills or ideas, but your focus. After finishing reading The E Myth Revisited, Gerber emphasizes working on your business, not in it. Simply put, any business dependent on you to run it is destined to fail.

The only way to monetize your next idea is to systemize it. This is something I’m working on. I like being involved. I prefer to individualize customer interactions. I want to cater to people’s needs.

The problem there is the lack of a consistent experience. As much as we may loathe sales pitches, they are measurable. Standardizing a product or service provides branded expectations. When you think about it the best companies present clearly.

When an explanation is simple and easy to understand, a customer can decide whether to buy or not.

When an explanation is unclear, a customer leaves confused which results in a no.

The best example for systemizing your next idea are franchises. Starting at the model concept, processes and details are hammered out to a tee so it can be replicable at another location. Customers who visit any spot should experience a very similar encounter.

Another key factor in systemization is hiring others to help. This means people or outside systems (automation). Essentially this means delegating all the pieces you aren’t great at in order to grow the business.

It starts with the right mentality. Focus on developing the business to run itself. You won’t be able to afford all the help you need right away, but you should never defer from that plan. Most small business owners take shortcuts early on by doing everything which produces short-term gains, but in the long-run it’s not sustainable.

Ironically I’ve experienced this at a program level before where I put the right people in place and let it run like a well-oiled machine. It felt like everything was on “auto-pilot.” My goal is to implement this strategy with my next idea and where I’m finding it most helpful so far is in the early stages of discerning which ideas to pursue.

Some people’s goal is never to scale or sell a business and that’s ok. But what I’m learning is when you systemize your idea correctly, at least you’ll have that option because others see value in a predictable money making machine.

Are Great Managers Truly Unicorns?

The number one reason why people leave their jobs is because they feel unappreciated or under-valued. Translation: lousy boss.

One of the main reasons I’ve left all my past jobs is a terrible boss (best boss I had was as an entrepreneur – he was great, but the pay was inconsistent).

At the core is a skill problem. Let’s start at the bottom:

As a technical worker you are paid to produce results quickly. Once you prove yourself you move up to leadership. The issue here is what made you a great technical worker won’t help you be a good leader.

At the leadership (management) level your job is to bring out the best in your team. It doesn’t matter how well you performed at your previous role because the job description is completely different.

This is rampant in Corporate America because seniority normally equates to promotion. But most managers don’t know the first thing about motivating/treating people. Managers talk to their employees as if they’re stupid or incompetent. The disrespect is tolerated at first, but over time disengagement and morale drops.

Productivity keeps a business running, but poor leadership can halt growth. Companies with high turnover are similar to below par rated restaurants on Yelp. Even if you have a great product, customer service is what you’re ultimately judged on.

Most businesses believe treating the customer with the utmost respect is good enough, but when employees feel the cold shoulder of management internal strife starts to build. When the work environment becomes sheerly political the internal trust deteriorates and your best talent already has one foot out of the door.

I understand the argument from the company’s perspective that hard, objective decisions need to be made in order to scale, but you can still treat people well and get great results. People filter their perception of leadership through interactions. Once you feel unsafe as a worker, it’s time to start applying for jobs elsewhere.

That’s why when you do find a manager who cares about you, brings out the best in you and ultimately looks at his position as service treasure him/her. I’ve been fortunate enough to experience it once in my career and during that tenure I felt I could do anything.

For some complete autonomy may feel like macro-management, so it’s important to understand what type of boss you thrive under. Culture is viewed as the thermometer, but core behaviors are the true temperature.

These days companies can pay you lip service about their environment, but only the employee experience truly defines what the culture is.

So if you have a great manager think twice about the grass being greener on the other side. Like grass most of the time if you turn it over it’s actually brown.

The Criteria You Boss Should Be Judged Against

There’s a hypocrisy when it comes to management being held accountable. Employees often claim to be micromanaged, but rarely are there any changes because it’s acceptable by executives.

Businesses determine decisions based on finances, but what happens when costs are offset by people quitting?

The ROI on employee retention is staggering. No matter how strategic the hiring process is once a worker is on-boarded it falls on the company’s side to make sure they have all the necessary training and skills to effectively do their job.

What’s lost in the boss-employee relationship is a measurement that doesn’t get the just due it deserves: motivation.

Most would argue people are self-motivated or not, which I would agree with, BUT the main factor why people leave or stay at their current role is: how their boss makes them feel.

People don’t leave companies, they leave managers.”

Maybe it’s overlooked because it’s not as sexy as performance or trackable as sales made. Those matter, but as you move up the food chain of Corporate America it takes less skill, more feel from managers.

Take the example of professional athletes. All have coaches, but how many of those coaches can outperform them? (Answer: none)

If that’s the case, why hire a coach?

For support and guidance during challenging times.

The more skilled the employee, the less they need to be told what to do or how to do it, but rather given the trust to get the job done and be judged on the results.

A manager affects the morale and engagement more than any other factor at work.

The level of morale and engagement directly drives performance.

Phil Jackson coached Michael Jordan, Kobe Bryant and Shaquille O’Neal. The reason he led them to championship and his predecessors before him didn’t was his approach. Jackson focused less on micromanaging them and more on challenging/managing their egos. Great players need great coaches.

Just because you were a great widget maker doesn’t mean a thing once you become a leader. Your job was to be the best, now it’s to bring out the best in others. Most managers didn’t learn this skill set and it’s the reason why so many workers complain about their boss and leave.

Think about the best and worst manager you’ve worked for. I bet on the high side they cared about you as a person. On the low side, they treated you as a cog in the wheel. At the core is how they made you feel.

Chances are if you love your boss, you see the glass as half full moving forward. But if you hate your boss, you’re actively looking for your next gig.

How does your boss make you feel? 

The Limitations Of Having A Growth Mindset

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Do you have a growth mindset?

Having one isn’t good enough. In fact, I’d argue to say there are some limitations when it comes to this type of mindset.

The little engine that could(n’t).

I think I can. I think I can I think I can.

That little train did make it up the mountain, but then what? Believing you can is the foundation for any change, but that doesn’t equate to action. People are who they are. You can’t change that. Dating couples are told by therapists not to try and change their partner (because it’s not happening).

Poor listeners can learn how to actively listen, but they’ll always default to talking.

Micromanagers can be told to use empathy, but task accomplishment will always be most important.

Planners can be asked to be more spontaneous, but last minute changes will always frustrate them.

We are who we are. We can’t be anything we want to be; we can only be the best version of ourselves.

Talent is innate.

People can grow, but each person has different heights of potential.

Hard work beats talent when talent doesn’t work hard, but if talented people work hard they perform better.

A talent is defined as something you have a natural affinity for. You and I are gifted in areas others aren’t. Once you identify your talents, they can be developed into strengths over time.

Talent is an advantage when used correctly widens the gap and separates us from the rest.

Focus on your strengths.

Less is more and when it comes to energy you should spend your time on what you can be great at.

With everything else ask for help or delegate to others.

There’s nothing wrong with learning new things, but if you have no passion for it, don’t align with the purpose or just aren’t good at it you’re wasting your time.

A growth mindset would say keep at it, but is that a good use of your time?

The best organizations have the right people in the right seat on the bus.

That means hiring specialists and letting them do work. Filling people’s plates with other tasks (outside of their talents) is diluting their strengths.

There’s nothing wrong with having a growth mindset, but when I hear people use that as a default response to everything challenging you’ve missed the point.

Attitude is crucial to everything we do, but at a deeper level self-awareness produces maximum results not having a growth mindset.

Why Coaching Trees Don’t Work

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There’s a belief out there that leadership can be taught. Skills yes, but replicating no.

Take for instance two all-time basketball coaching greats: Phil Jackson & Mike Krzyzewski.

Both have disciples trained under them, yet given head coaching duties the success rate isn’t nearly as high. Why is that?

First of all, people can’t be scaled. You can have a mentor, but the goal of the mentee should never be to clone their model. Leadership is grounded in self-awareness so your style needs to be conducive to your personal strengths. You can’t be anything you want. You can only be the best version of you.

Second, there’s an art of leadership that is instinctual. Almost impossible to teach. Both Jackson and eventual Coach K successors have huge shoes to fill. Their replacements will be forever compared to their career success. Unfair as it is, each leader has to create their own legacy. Leaders are less focused on who came before them and more locked into where they want to go. As technology improves so does the sharpening of people skills. In sports the truly great coaches have a sound strategy, but what sets them apart is their ability to manage superstar egos. No book, online resource or manual can teach you that. You learn best through experience and since each individual is unique there’s no formula for optimal results.

Third, confidence in vision. Many would argue charisma, but that comes from a strong belief in self. The confidence in vision needs to be strong enough to take the team to a level even the leader hasn’t reached before. A leader’s vision should be bigger than themselves which further defends the idea of focusing on the future instead of looking back. Vision casting can be taught, but the size of the goal is directly tied to the confidence of the leader. Most successors aim to maintain past standards, but that’s peering in the rear view mirror. Beyond prior records, data and research, leaders must push on regardless of the struggle. That type of perseverance is a character trait developed over time.

Leadership development is real, but not as simple as following a set number of rules. Great coaches create a legacy that can’t be caught. Besides observing and having a deep appreciation for great leaders, it’s about identifying your greatest strengths and leveraging those on a daily basis for maximum results. Coaching trees don’t work because humans are too dynamic to be simplified down to a system. Train up leaders, but give them autonomy to spread their wings in the way they choose. That’s how a tree really blossoms.

 

Corporate America’s Missing Ingredient

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There’s something missing in Corporate America, but it’s not what you think.

Technology gives us the opportunity to work remotely and scale businesses.

Outsourcing labor multiplies growth while saving massive amounts of time.

Investors provide the resources to transform a hobby into an empire.

But the one thing that retains the top talent worldwide is: empathy.

In a broadcast-driven society, rarely do people put themselves in other’s shoes.

Managing egos and customizing messaging is the difference between success and failure.

Here’s why:

Even with the best technology you still need people to run it. Salaries are competitive, social impact is rampant and perks are plentiful. Therefore how you treat people defines their company loyalty.

Take for instance managers. The top reason most people leave their jobs is because they feel disrespected or undervalued. Simply viewing the impact of your decisions from the receiver’s point of view makes all the difference in the world. Most managers are ill-equipped to lead others. Just because you’re a great widget maker doesn’t translate well to a manager of widget makers.

Empathy is a learned skill (although it can be argued some have a higher ceiling than others). Kids are taught at a young age to think about how their actions affect others. Somewhere between preschool and adulthood that lesson is forgotten. Money and power corrupt our ability to serve.

Personally I’ve witnessed many conflicts started because of a failure to empathize. The same reasons countries go into war on a macro-level happens to co-workers at a micro-level. Stress has a tremendous drain on productivity and the majority of it can be avoided by showing empathy.

The downgrade of soft skills will only continue to get worse and at the core of the deterioration is a lack of empathy.

Empathy is not something HR can teach or a motivational speaker can inspire you to do. It takes making a commitment to servant leadership. Stop thinking positional leadership puts you on top. Instead understand supporting others from beneath actually pushes them to reach their fullest potential.

Will you do your part?

Where Scalability Doesn’t Work In Business

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If you really want to grow your profits asking how you can scale your idea is key.

With technology today there are several ways to outsource, automate and delegate tasks that are both time consuming and replicable by others.

But what if scaling isn’t the best option, then what?

For most business models to scale their parts its a very objective process. Making money depends on putting systems in place to maximize efficiency.

Yet there is one particular area that is almost impossible to scale: customer service.

Even the best training can only safeguard a business so much. In a data-driven world, how people are treated is subjective.

Take any fast-casual restaurant. Most frontline workers are paid minimum wage salaries, but expected to perform at a high level. Pay tends to attract relative talent so when you’re scraping the bottom of the barrel you can’t expect the best customer-employee transaction for a low value.

I’ve always found it interesting how little priority is paid to hiring people with high EQ or soft skills. As a manager I could care less how much experience or technical skill someone has if they don’t know how to talk to or treat people. Believe me empathy is hard to teach.

I work at an education-based startup that is slowly systemizing their processes. Objective measurements are very important, but in the people business brand experience makes or breaks your company.

Believe it or not, clients pay high prices for deliverables, yet what converts them into return customers is: how you make them feel.

As a relationship-driven person myself I admit if you only focus on making people happy you’re running a hobby, not a business. But discounting each interaction both internally and externally will result in higher turnover and a weaker brand.

Scaling your business should be the goal, but how to achieve that needs to be high-touch. Simon Sinek said it best, “If you don’t understand people, you don’t understand business.”

The 1 Thing You Have To Give Up To Be A Successful Entrepreneur

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Your relationships.

Anyone who has been a successful business owner has sacrificed their personal life at some point.

I’m not against working hard, but at what expense?

I hear a lot of 20 somethings say they want to focus on their career then get married and start a family in their 30’s. Well guess what: relationships don’t grow on trees nor come without a cost – mainly time.

It’s the same reason why most celebrities and professional athletes aren’t able to maintain a strong family unit because they’ve chosen to put their careers in the forefront and their relationships outside of work on the back burner. If you’re fortunate enough to have a selfless spouse who can hold the house down while you’re away then it can work, but that takes a special individual to put your needs before theirs.

When I look back on my career as a full-time entrepreneur I realize why I never met my own lofty expectations: I put people before profit. It’s your choice which one you choose, but rarely can you pick both.

I had too many boundaries in place to go “all-in,” therefore I would work up to a certain point, but cared about my lifestyle more than my possessions.

This post isn’t to mock those who have made it big nor is it putting those who are relationally-focused on a pedestal. It’s my observation of over 10+ years of reading, hearing and witnessing first-hand what it really takes to live the American Dream.

If there’s an understanding in terms of priorities that your career is first then those associated with you have to abide by it. Of course hard work alone doesn’t guarantee anything, but without it you don’t stand a chance.

The realization I came to is: people are most important to me.

When I first started my business I had financial goals in mind that I hit quickly, but over time I realized to reach the next tier I’d have to sacrifice the relationships around me. Since I wasn’t willing to do that, the numbers of hours I dedicated reflected in the amount of the paycheck (or lack thereof).

Fortunately I married someone who shares my values. I love that she is raising our two kids at home until they are full-time at school. We can make it on a single income because we live lean and value our time together the most. You don’t need a lot of money to be happy, but you do need to allocate a great amount of time to others.

It’s up to you to decide what currency is most important: time or money. Once you do, it’s easy to know where you should spend your energy.

The X-Factor For Employee Retention

x-factor

I admit I believe in work-life separation, but even an old dog can learn new tricks.

Being a corporate newbie (former FT entrepreneur) I can relate to that Scrubs episode where Dr. Kelso stepped one foot out the hospital and started whistling like he had no cares in the world.

Am I heartless? Far from it. But as I moonlighted as a contractor I walked into companies as a hired gun. I enjoyed getting to know people, but subconsciously I never mixed business with personal. It’s my way of keeping boundaries.

But now being an employee I’m starting to see things differently. I’ll never be that guy who grabs a drink after work with co-workers for 2 reasons: 1) I want to see my kids and wife as soon as work is over 2) I don’t drink. It’s not something I’m against, more so a different time in my life.

Yet what’s changed for me in the past month or so is my view towards friends at work. I’m completely fine with putting my head down, banging my work out and leaving unnoticed. But something happened along the way…

My role at work is to support our employees (online tutors). It happens over Zoom (video conferencing) weekly. Ironically I wasn’t taking the same approach to work relationships, but my shift in behavior has made me re-think work.

Maybe it’s the remote environment of the company I work for, but outside of compensation who you connect with at work is the X-factor of retention. This is a quality, not quantity issue. You can bond over work projects, but the natural foundation of a true friendship is built over common interests and reciprocity. Effort alone guarantees nothing, but without it you’ll get nowhere. The interest has to be mutual.

Honestly I’ll never be that guy who calls his work friends his best friends, but knowing there are more than a handful of people at my company I am interested in connecting with outside of work is a huge step in the right direction for me.

So where do you fall on the friends at work spectrum?

Why Punctuality Makes My Blood Boil

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Time is the most valuable currency, not money.

Everyone has the same amount, but we don’t use it the same.

Even before I was married and had kids, being on time mattered.

Efficiency is one of my top values and working smarter means maximizing your time.

But at a deeper level punctuality is about respect.

If time is the most valuable currency, being late means you’re wasting someone else’s time.

It’s time you can’t get back.

My roots were planted by my mom who is extremely reliable. When I was a kid if I asked her to do something and she committed to it, it would get done. It’s had a huge influence on my personality.

In the workplace punctuality is part of your reputation. When you’re late people notice. In fact I’d argue it’s a sign of integrity.

If a meeting starts at 8 AM and you’re late, it’s a slap in the face to the host.

Nobody’s perfect so an occasional slip up is fine, but habitual offenders become labeled.

Even since I joined the corporate world, I’ve continued to network online (LinkedIn), via phone and in-person on my lunch breaks. It’s more than a goal, it’s part of my lifestyle. The worst way to ruin a first impression is to show up late. I do my best to be early or on time.

So what if you lack punctuality?

You have a choice: talk about it or be about it.

Words are cheap. Actions are what matters. Don’t tell me, show me.

Most people believe being busy is a badge of honor. I disagree.

The more successful you become, the more in control of your time you should be.

Value your time by meeting with less people.

Value others’ time by showing up on time.

Valuing time means respecting others’.