Truer than ever- innovate or hibernate

“When times are good, everyone does well; when times are tough, it’s the smart/savvy who do well. And it’s ideas that we must provide our companies the innovations that power us through and let us gain on our weaker competitors.” Verne Harnish

Verne Harnish is the Founder and CEO of Gazelles, a leadership development organization. I subscribe to his e-newsletter which always has valuable insights. His quote this week, in light of where we sit in this precarious economic environment, really struck me, for a number of reasons.

One, I’m a business consultant and coach and one of the frustrating things that I’ve observed is that small business owners in particular need the most help from outside experts and advisors and are the last ones to ask for it. I have a slightly different take on the sayings “A rising tide lifts all boats.” or Verne’s “When times are good, everyone does well…” I say, “In good times, most(not all) small business owners do well and make money, in spite of themselves.” They really do ride along on the macro economy and often can make money and grow revenues because everyone else around them is doing well also. They don’t have a strategic plan, business plan, marketing plan, sales plan…and as noted above, no innovation plan. They go with the flow. It’s when times get challenging that they go backwards in a hurry. They hunker down, retrench, cut costs, rein in spending, etc. All fine and good in some respects but very reactive.

Next, it’s a bit frustrating to see this take place. I’ve noted on my website and in other commentaries that research shows that business owners and top managers who use consultants, coaches, mentors and advisors usually take their companies to higher levels of profitability, growth and sustainable prosperity than those who do not. So, why don’t most business owners use outside resources? First, I think it’s related to the independence of small business owners and it’s important to recognize there are at least three categories of such-

1. The ‘indie’ or ‘solopreneuer’ > someone who is tired of working for ‘the man’ and just wants his/her own little business with a lot of freedom and flexibility, profit is important to a certain level but work-personal lifestyle is the driver;
2. The start-up entrepreneur > someone who is driven on a regular basis to start businesses (I call ‘em serial entrepreneurs and I think they’re great), grow them to a certain level, whether pre-revenue or real revenue, and get the business acquired. The passion and thrill is in the game of the start-up;
3. The sustainable entrepreneur > someone who truly wants to build a solid, growing, best practices and sustainable company- they’re in it for the long haul. They are building value, wealth and prosperity.

Of course, I’m generalizing, because there are exceptions to every rule. But again, entrepreneurs by nature are very independent and each one of these three has different needs. Their independence and suspicion of others drives them away from using outside help. Their independence tells them, “I can figure this out on my own” or “It’s my company, I write the checks, I determine what to do- not some consultant who just wastes my money.”

Finally, why is innovation, even in a small business, not taken seriously? My guess is that many small business owners don’t see themselves as innovators. They see themselves as producers or providers of a product or service. That’s it. They may also not see the need for innovation or understand that innovation can take place in a variety of ways within their company and outside its walls. They think it takes a lot of money: “Hey, I’m not like Microsoft or Intel, I don’t have a budget for R&D.” And, because they do no formal business planning, they don’t have any activity, energy or brainpower focused on new ideas and innovation.

Businesses that will win big in this period of economic calamity, which I think we’re going to be in for a long time, are those that will continue to pour money and brainpower into developing new and innovative ideas, practices and products & services. They will be disciplined and focused on this core area. They won’t hunker down and hide. The question for you and your business is, “Will you innovate or hibernate?”

BTW, check out my website or this link for information on a cool workshop event: TRUE LIES: Five Ways To Get Real About Landing Large Accounts.

Truer than ever- innovate or hibernate

“When times are good, everyone does well; when times are tough, it’s the smart/savvy who do well. And it’s ideas that we must provide our companies — the innovations that power us through and let us gain on our weaker competitors.” Verne Harnish

Verne Harnish is the Founder and CEO of Gazelles, a leadership development organization. I subscribe to his e-newsletter which always has valuable insights. His quote this week, in light of where we sit in this precarious economic environment, really struck me, for a number of reasons.

One, I’m a business consultant and coach and one of the frustrating things that I’ve observed is that small business owners in particular need the most help from outside experts and advisors and are the last ones to ask for it. I have a slightly different take on the sayings “A rising tide lifts all boats.” or Verne’s “When times are good, everyone does well…” I say, “In good times, most(not all) small business owners do well and make money, in spite of themselves.” They really do ride along on the macro economy and often can make money and grow revenues because everyone else around them is doing well also. They don’t have a strategic plan, business plan, marketing plan, sales plan…and as noted above, no innovation plan. They go with the flow. It’s when times get challenging that they go backwards in a hurry. They hunker down, retrench, cut costs, rein in spending, etc. All fine and good in some respects but very reactive.

Next, it’s a bit frustrating to see this take place. I’ve noted on my website and in other commentaries that research shows that business owners and top managers who use consultants, coaches, mentors and advisors usually take their companies to higher levels of profitability, growth and sustainable prosperity than those who do not. So, why don’t most business owners use outside resources? First, I think it’s related to the independence of small business owners and it’s important to recognize there are at least three categories of such-

1. 1. The ‘indie’ or ‘solopreneuer’ > someone who is tired of working for ‘the man’ and just wants his/her own little business with a lot of freedom and flexibility, profit is important to a certain level but work-personal lifestyle is the driver;
2. 2. The start-up entrepreneur > someone who is driven on a regular basis to start businesses (I call ‘em serial entrepreneurs and I think they’re great), grow them to a certain level, whether pre-revenue or real revenue, and get the business acquired. The passion and thrill is in the game of the start-up;
3. 3. The sustainable entrepreneur > someone who truly wants to build a solid, growing, best practices and sustainable company- they’re in it for the long haul. They are building value, wealth and prosperity.

Of course, I’m generalizing, because there are exceptions to every rule. But again, entrepreneurs by nature are very independent and each one of these three has different needs. Their independence and suspicion of others drives them away from using outside help. Their independence tells them, “I can figure this out on my own” or “It’s my company, I write the checks, I determine what to do- not some consultant who just wastes my money.”

Finally, why is innovation, even in a small business, not taken seriously? My guess is that many small business owners don’t see themselves as innovators. They see themselves as producers or providers of a product or service. That’s it. They may also not see the need for innovation or understand that innovation can take place in a variety of ways within their company and outside its walls. They think it takes a lot of money: “Hey, I’m not like Microsoft or Intel, I don’t have a budget for R&D.” And, because they do no formal business planning, they don’t have any activity, energy or brainpower focused on new ideas and innovation.

Businesses that will win big in this period of economic calamity, which I think we’re going to be in for a long time, are those that will continue to pour money and brainpower into developing new and innovative ideas, practices and products & services. They will be disciplined and focused on this core area. They won’t hunker down and hide. The question for you and your business is: “Will you innovate or hibernate?”

Summer is closing out

College football has started up and we’ve watched the real start of Hurricane Season. Thankfully, although most hurricanes are really bad and greatly impact everyone in their path, it looks as though Gustav wasn’t the catastrophe that Katrina was three years ago. Oh, and the endless political season is upon us!

So, we have four months to play out for 2009. Once again I find myself reviewing my life- business and personal. I’m using this week to refocus on the tasks I have for the balance of the year. I’m reviewing my own marketing efforts, which include this blog, my e-newsletter, my networking associations, my website, etc. It’s definitely a good idea to regularly review your marketing initiatives. I’m also making the time to continue my learning in the areas of business that I’m interested in and in areas where I know that I need to get more knowledge. And, I’m reflecting on what I’ve done so far this year- what worked well and why, what initiatives did I undertake that didn’t produce the expected results, what can I learn from others that I associate with or have seen in action? Related to this last one, I’m in a Mastermind Group and each month we meet to share best practices, new ideas, etc. It’s something I would recommend for everyone in a small business.

BTW, check out my website or this link for information on a cool workshop event: TRUE LIES: Five Ways To Get Real About Landing Large Accounts.

Questions or comments related to this blog post? Feel free to contact me at info@performabusdev.com

Summer is closing out

College football has started up and we’ve watched the real start of Hurricane Season. Thankfully, although most hurricanes are really bad and greatly impact everyone in their path, it looks as though Gustav wasn’t the catastrophe that Katrina was three years ago. Oh, and the endless political season is upon us!

So, we have four months to play out for 2009. Once again I find myself reviewing my life- business and personal. I’m using this week to refocus on the tasks I have for the balance of the year. I’m reviewing my own marketing efforts, which include this blog, my e-newsletter, my networking associations, my website, etc. It’s definitely a good idea to regularly review your marketing initiatives. I’m also making the time to continue my learning in the areas of business that I’m interested in and in areas where I know that I need to get more knowledge. And, I’m reflecting on what I’ve done so far this year- what worked well and why, what initiatives did I undertake that didn’t produce the expected results, what can I learn from others that I associate with or have seen in action? Related to this last one, I’m in a Mastermind Group and each month we meet to share best practices, new ideas, etc. It’s something I would recommend for everyone in a small business.

BTW, check out my website or this link for information on a cool workshop event: TRUE LIES: Five Ways To Get Real About Landing Large Accounts.

Questions or comments related to this blog post? Feel free to contact me at info@performabusdev.com