Many professionals resist the notion that they are in business, and prefer to think they are above selling themselves, their firms or their products and services.
A good example of this are the Universities, where intellectual professors are boring their students out of enrollment. Only when they realize that the students are their clients and responsible for their salaries and that education is big business will things change.
The professors that add value are entertaining, interesting, and passionately sell their subjects. The difference between the past and future is that these professors made the same amount of money in the past, and in the future, the ones who know how to sell, will be paid more money while their boring counterpart will become redundant and probably replaced by Automated Intelligence.
The truth is, we are all in business.
The dictionary defines business as a commercial activity involving the exchange of money for goods or services. By this definition, if you are receiving money in exchange for goods or services – then the activity you are engaged in is business.
As a professional, regardless of your title – you are not only in business – you are a business. If you are employed by an organization for which you work and you receive money in the form of a salary then you are a business.
Viewing your career or your work as a business will radically alter your point of view, the way you think about work, productivity, return on investment, your image and your income.
A person who is unique, interesting, and passionate about their personal contribution to any business, they are involved with, becomes increasingly irreplaceable and valuable to that business. A person who is mediocre, boring, and dispassionate, becomes increasingly replaceable and expensive to that business.
As a business, your goal is to maximize your return by seeking ways to get the maximum return from the minimum risk, time and effort. This means that you will see yourself as a tangible asset that has brand value, and a market value. What would you do differently if you thought of yourself as a brand? How would you increase your personal market value? What is your current image, and what are the different ways that you could upgrade your image to be more representative of what you want? How you become ever more unique, interesting and passionate?
The answer is in your ability to value the asset that you are and to feel good enough about yourself to invest in yourself, to develop both your personal and professional skills and to do this continually.
In keeping with our theme of Financial Leadership, this video is a very good primer for a discussion on leverage, vehicles, ROI, and how these basics apply to you. This video is targetted at retail investors who as he puts it “are doctors or lawyers who follow that career over their lifetime and plan to retire.
If you are pursuing a life of passion and investing in yourself, and a business that is aligned with your passion, the game is slightly different from what he suggests. The lemonade stand is a well used and very good way to describe how basic accounting works, however in this example, what about the owner’s salary? What about marketing? Nonetheless, it is a very good example to use for educational purposes.
If the place where you spend most of your time does not cater to your spiritual needs, then it is time to make some changes and switch it up! The Workplace of the Future is where Profit, Passion, Meaning and Purpose meet.
Since more than 3/4 of the top-developed nation’s working population are engaged in the service sectors, the intellectual capital and varying levels of development of these people are a major factor in a nation’s competitiveness.
And so it is among competing firms. They do similar things, with the same people, for similar clients, using similar technology at more or less the same prices. However, data shows that there are wide differences in performance between competing firms. Why is this? What is the key factor that is different?
A business is comprised of a group of people who have come together to play a specific role in the success of the business. If the business is to grow, then its people must grow. If the people are small-minded, unmotivated and not very creative – then the business will reflect this.
On the other hand, if the team members see themselves as vital, contributing, and able to excel, then the business will reflect this also. Many organizations invest time and money in the professional development of their people; however, they neglect their team’s personal development.
Investing in the ongoing personal development and training of your team is one of the best investments you can make. If someone makes $50,000 a year and can generate you $500,000 in value, why not take this person and increase their skill, ability, talent, attitude, and education, so that they can add a million dollars in value?
A $50,000 investment that brings a $1 million return is a very, very valuable asset. There is no better investment that companies can make than in the education and development of their own people.
A dramatic change in the structure of modern organizations is transforming the very nature of work. The traditional position descriptions that are part of a formal, rigid, hierarchical organizational structure are changing into loosely structured, multifunctional virtual project teams.
These virtual project teams work across time zones and borders as part of multiple project teams. They can be easily assembled and dissembled at the completion of the project.
It is interesting that the world’s largest beverage company is still producing cans with Bisphenol-A. Commonly known as BPA, the chemical is used in many plastics that have been found to leach into the liquid contents. The FDA discovered it could cause many medical problems including cardiovascular disease, liver disease and diabetes.
Many organizations have recalled products using BPA – but not Coca-Cola. Don’t get me wrong – I am not anti-Coke per se.
What interests me is that it’s taking the shareholders pushing a resolution to encourage the company to remove BPA from Coke cans. There can be only one conclusion as to why Coke is lagging the industry with regard to BPA…
We all have experiences when someone did something special for us, went beyond the call of duty or lifted our spirits when we needed it most. We call these experiences Magic Moments. Truth is, most Magic Moments go by and are not acknowledged or recorded and often times a mere thank you does not seem enough.
Our experience shows that what you acknowledge – you get more of. So when someone does something special for you, sending a specific note of appreciation and acknowledgement has them feeling very good – and encourages them to keep doing it. We call this sharing the magic.
Our organization is an education and training company. We would be happy to share what our policy is. The purpose of our organization is to demonstrate Leadership in action and we have systems in place at work that compliment the purpose. One such system, which has enhanced our working environment, is what we call “Magic Moments”.
Magic Moments System
The purpose of the “Magic Moments” is to optimize performance. The system is designed as a way of sharing any thoughts, feelings or actions that people around us do or say that make our day brighter, happier more cheerful and loving. It’s a way for team members to express their acknowledgement, feelings and support to other team members and themselves.
How the system works is, we have a form called “Magic Moments” with 19 different options (tick box format) of a good deed, action or expression such as:
Spent time doing something for me
Lifted my spirit when I needed it
Demonstrated exceptional talent
There are 17 other options referred to as “Team Member Magic”. These also include expressions acknowledging ourselves such as, “I mastered a system today” referred to as “Systems Magic”. Team members can also write a few lines of their own to express their appreciation personally to another teammate.
One person on the team is nominated as the “Magic/Anti-Magic Moments” coordinator. When a team member appreciates another for something he or she did, they fill in a “Magic Moments” form addressed to the person and submits it to the coordinator who in turn will pass the form to the person for whom its meant. Copies are filed and at the end of each month, the person who wrote the most forms and the person who received the most forms are given a reward.
Similarly, we have a “Anti-Magic Moments” which are incidents, upsets or behaviors that are anti-magic (i.e. create an environment that is not safe, harmonious or happy) or actions that are in violation of the companies stated policies, values and procedures and interfere with productivity, orderliness and the perceived ability to do ones job well. It is also an opportunity for the team member to handle their side.
This system also comprises of a form called “Anti-Magic” with 24 different actions or expressions such as:
Gossiping, blaming or directing abuse to another team member
Reference to superiority (chauvinism, racism, sexism etc)
There are 21 other expressions referred to as “Team Member Corrections”. These also include “System Violation” such as “Directive was given to me by someone who is not my direct leader”. The procedure is again the same as the “Magic Moments”.
Everyone Is Included – No Exceptions
Both systems are across board for all staff with no exceptions to designations or positions held by individuals in our office. The beauty of the system is that we feel appreciated and supported when we receive a Magic Moment. That motivates us and boosts morale.
On the other hand, when an “Anti-Magic Moment” is received, the person is not yelled at or has his or her “head chopped off” because of it. Instead, the team supports the individual to realize his/her behavior and helps them to correct their counter-productive behavior within a safe environment.
The leaders in our organization have high regard, care and concern for each team member and give a lot of their time to support team members through the process of self-improvement when needed and more so appreciating us for things we do. These systems were created to ensure that each team member experiences a safe, fun and happy work environment everyday.
The organization invests in training all staff on how the system works which helps everyone to understand the purpose of the system and to appreciate it.
Each member on our team is committed to work by this system and it has contributed to us having great team spirit, high productivity and fun at work. Every one of us look forward to coming to work everyday, knowing we will be supported and appreciated for simply being ourselves.
We are thankful to our leadership for implementing this system, as it’s a joy for each of us to work in an environment that is safe, calm, serene and above all fun. My wish is for management of all organizations to implement such systems – as I can vouch for its effectiveness and success. The more “Magic Moments” – the higher the team morale, productivity and profitability.
Mazimo Magic is an online web based application that allows anyone to send appreciation in the form of “Magic Moments” with clients and colleagues and to identify “Anti-Magic Moments” that reduce service standards, disrupted team performance and caused reduced morale and lower productivity.
Best thing is, the Mazimo Magic Application keeps a record of every Magic Moment sent and received by you. This enables you to keep them as long as you want, review later, print or forward to thers etc.
The Goldzone Leadership Curriculum offers comprehensive, custom Leadership Development Roadmaps. Using the revolutionary New-Paradigm Leadership Model, participants master more effective tools, strategies and methods compared to the old style and traditional leadership models. High stress and low performance is replaced with optimum personal and organizational performance. >>> click here for more information >>>
This article is for Passionate Revolutionaries who are focused on leading and inspiring others to create innovative products, services, and business models that add meaning and purpose to people’s everyday lives.
If you are not a business owner or executive, please read this with an open mind and ask yourself, “How can I apply that?”
There are 12 Primary Rules that are some of the most important, immutable Rules of Business:
RULE #1: IT’S ALL ABOUT LEADERSHIP
It may sound strange, but if you want a quantum leap in your results — the first place to begin is to take a good look in the mirror. The focus of this article is about YOU and your relationship to your business.
Many people start a business to make money, others want to make a contribution or to express themselves. Whatever your reason is, you will find that the basic, fundamental rules of business have not changed for thousands of years.
The pace of change has increased, new technologies have changed the way we do business and have increased our potential markets as well as our competitors.
How Fast You Learn is Now a Competitive Advantage.
RULE #2: YOUR BUSINESS IS A REFLECTION OF YOU
Your thoughts, attitudes, beliefs, values, goals, strengths, weaknesses, management style and philosophy all show up in your business. If you have a belief that you have to work 16-hour days in order to be successful, then you will end up working 16-hour days. And you may or may not be successful.
If your leadership style is disrespectful of team members and customers, the energy of the business will reflect this. Only second-rate team members will be attracted as you will only attract people who are OK being disrespected and not appreciated. Your company will only achieve a fraction of what is possible. The leader’s style will set the tone for the entire organization through the multiplier effect. Everything is reflected back to you multiplied, exaggerated and often dramatized.
RULE #3: FOR THINGS TO CHANGE, FIRST YOU MUST CHANGE
This is one of the most difficult concepts for most people to accept. When our results aren’t what we want or expect the first thing we do is look for who is to blame – then demand that they change. Husbands expect their wives to change and wives their husbands. For a business leader, we expect the team to change and the team wishes their boss would change.
Have you ever tried to change someone else? How did it go? I bet they resisted and unless you applied a lot of pressure refused to change. Even if, under pressure they changed, it ended up being temporary and not lasting!
The one person you can change is yourself. When you change an amazing, incredible and almost magical thing happens. Everyone around you responds differently and mysteriously changes too.
The leader of the company is the key person whose vision is the vital element, the Lifeforce or driving force behind the company and everything it does.
RULE #4: ALIGN THE TEAM TO THE VISION
The vision sets the tone and the agenda. The vision provides the team with a focus, a purpose, a guiding star to follow.
The number one function of the leader is to catalyze a clear and shared vision for the company and to secure the commitment of the team to the vigorous pursuit of the vision. A clear sense of purpose comes directly from a clear vision of what it is supposed to look like in the end.
When a leader is not clear on the vision, and this vision isn’t clearly communicated to the team members, associates, suppliers and customers, then the company languishes and is mediocre. The company struggles and the team work harder and harder.
RULE #5: WORKING HARDER ISN’T THE ANSWER
If you are like most people, you grew up with the “work hard” ethic. From the time we were young children, we were told by people that we loved, trusted and respected, “If you want to get ahead in life, you have got to work hard,” or “If you want to make lots of money, you have got to work hard.” And this is simply not true.
The gardener works harder than the company executive, he toils all day in the hot sun, he gets his hands dirty… However, the executive works no more hours but makes many, many times more than the gardener.
According to the Jan/Feb 2009 issue of Inc. Magazine, Markus Frind, the founder of the website Plenty of Fish, based in Vancouver, Canada works one hour a day and pays himself an annual income of $5 million. Clearly, he is not working hard! The question I ask myself is; “If he is working 1 hour a day and making $5 million, how much could he make working 8 hours a day?”
I am sure you will agree that hard work alone is not going to solve anything (although it is a start). The key is to undo the training, programming, and conditioning that tells us to work hard; and to replace it with a different philosophy of life and work that takes into account what you work hard at doing.
RULE #6: MY RESULTS ARE MY GURU (Teacher)
This means that we are responsible for our results. No one else is. If the economy is bad and your customers aren’t spending as much as they used to, then you have got to do something different. Simply blaming your lower results on the economy won’t do anything other than keep you stuck. Forget excuses, justifications or blaming anyone else.
Your results tell you how you are doing.
The key is to get more done in less time. To be ever more efficient and effective. To produce a better quality product for less cost to you, which you then pass on to your customers. What many companies do is lower their cost and instead of passing these savings onto their customers, keep it for themselves. This may work in the short term, however, it increases the risk of your competition gaining an edge on you.
RULE #7: INNOVATION & ADDING VALUE
Because its purpose is to acquire and satisfy customers, your business has one and only one function: to add value through innovative products and services. If your product and service are the same as your competitors, how are you going to add value in a way that your customers will continue to buy from you?
To innovate means to make changes, to bring in new methods, ideas, and ways of doing things that benefit your customer — saving them time or money. This requires leadership and the constant pursuit of creative and imaginative solutions to both new and old problems.
RULE #8: MARKETING IS THE ENGINE OF EVERY BUSINESS
Marketing is all about attracting people to buy your product or service, getting them to come back again and again, and getting them to purchase more when they do come back.
It includes sales, advertising, product design, public relations, and many other ingredients that are less obvious. Without marketing, you lose customers. Marketing can make the difference between the life and death of your business, and yet it is one of the least understood and most under-utilized facets of the business.
Most businesses have been reduced to a commodity. No one can buy their materials for that much less than anyone else. Advertising costs about the same. Even a second or third shift doesn’t give your business that much advantage.
However, if you make your salespeople out-produce your competition’s salespeople by two or three times; if you can make every advertisement you run produce ten times more than your competitors do; if you can get a customer to buy 50% to 200% more “on average” from you than they do from your competitors…
Plus, if you can successfully figure out how to resell each customer numerous “additional” times a year and sell them multiple products or services with higher profit margins each time — your business will grow exponentially — even in a down economy.
RULE #9: YOU ARE NOT THE BUSINESS
A corporation is a legal entity that was incorporated to fulfill a specific purpose. As a legal entity, a corporation has the same rights as any other citizen of the country within which it is incorporated. A corporation can own property, buy and sell, manufacture products, and bring lawsuits as if its members were one person.
Ownership in the corporation is divided into a certain number of shares, and the corporation issues stockholders one or more stock certificates to show how many shares they hold. The stockholders own the company and elect a board of directors to manage it for them.
The board of directors determines basic company policies and appoints the executive officers. These officers include a chairman of the board, chief executive officer, a president, and a number of vice presidents. They are responsible for carrying out the decisions of the board of directors and the stockholders. The executive officers also select the managers of the various departments of the corporation.
Stockholders may sell their stock whenever they want to unless the corporation has some special rule to prevent it. The price of the company’s stock changes according to general business conditions and the earnings and future prospects of the company. If the business is doing well, stockholders may be able to sell their stock for a profit. If it is not, they may have to take a loss in order to exit.
When the corporation has made a profit, the directors may divide the profit among the stockholders as dividends, or they may decide to use it to expand the business. Dividends may be paid only out of the corporation’s profits. When profits are used to expand the business, the directors and stockholders may decide to issue more stock to show that there is more money invested in the business. This new stock will be divided among the stockholders as a stock dividend.
Stockholders in a corporation have limited liability. If the corporation fails, they can lose no more than their investment, because the corporation’s debts are not their debts.
The founder of a corporation may be a stockholder and a director — but this is not necessary. Any corporation may raise funds to establish the company or to increase the available capital for investment, growth or ongoing operations.
Funds may be raised by selling stock (these investors become stockholders), acquiring debt or through revenue participation, etc.
The challenge for most founders who are also stockholders and directors is that they can “over identify” with the corporation. They end up living vicariously through the success and failure of the corporation. In many cases, the founder does not pay themselves a salary during the startup phase on the basis that they are the owner and are building an asset. This is a mistake as it undervalues the founder’s contribution and makes it more difficult to replace the founder by hiring an employee.
The key here is to understand that you are not the business, and if you have an employee role within the corporation, that you pay yourself a fair market salary. To do this requires that you have enough capital to operate the business, cover all the expenses with some excess for unforeseeable circumstances — especially during start up or high-growth phases.
Nothing is more difficult to do than to grow a company on a limited capital base — using cash flow for a source of funds. And then if your personal success or failure is connected to how the company performs, you may be seduced into making personal guarantees, or to invest more of your personal money that you would like to in order to keep the company going.
While this may sound admirable, it is a recipe for a downward spiral, reduction in your personal wealth and an emotional roller coaster. You are not the business, so keep your personal finances separate from the business and respect it as an investment that MUST pay for itself.
RULE #10: PAY YOURSELF FIRST
This is a very controversial topic. Most founders operate from the opposite — pay yourself last. And this is exactly what happens, once all the expenses are covered there often isn’t anything left over. So you end up working for free and justifying it by saying that you are building a business.
“Pay yourself first” means to include yourself along with all the other salaries and to follow the advice of the “Richest Man in Babylon”: a part of all I earn is mine to keep. No matter how much money you are making, it is important to maintain regular investing habits. The amount isn’t important, but the habit is.
And when you make yourself important and commit to paying yourself no matter what, a mysterious thing happens — you end up creating enough cash flow to pay yourself.
If you are willing to work for free — you will end up working for free.
RULE #11: WHO IS ON YOUR TEAM?
The difference between the leader who struggles all the time has no free time, is surrounded by drama solving crises after crises and the leader who appears to have lots of free time, makes more money each year and seems to have the golden touch… is the team that they are a part of.
You are only as good as your team!
And your team isn’t limited to your employees. Who is on your board of directors? Do you have a formal board of advisors? Do you have a personal mentor or coach? These are people who will tell you what you need to hear versus what you want to hear.
Unless you are willing to be surrounded by people who expect more of you than you do, you will have people telling you what you want to hear and confirming that you are right — when you may be wrong.
Your team can even include your suppliers and customers.
If you aren’t part of a winning team — then you are working too hard.
RULE #12: LABOR IS CAPITAL
Investing in the ongoing development and training of your team is one of the best investments you can make. If someone makes $50,000 a year and can generate $500,000 in value for you, why not take this person and increase their skill, ability, talent, attitude, and education, so that they can add a million dollars in value?
A $50,000 investment that brings a $1 million return is a very, very valuable asset.
There is no better investment that companies can make than in the education and development of their own people.
If you are looking for help along the way, are committed to change and are ready for the most fun you can have as an adult in a crafted learning environment… check out the 3-Day GOLDZONE Accelerator. It will change your mind about learning, engage all your senses and most of all make you a better, more flowing and lucky leader!
In today’s competitive and fast paced world, our most precious assets are our people, our relationships and our time. Most executives and professionals are familiar with W. Edwards Deming’s concept of optimization and fine tuning a system to achieve the optimum output and results.
Few people apply the concept of optimization to their lives, people strategies, systems, policies, procedures, marketing and management practices.
Leading a team of people in today’s highly competitive, technologically sophisticated and connected world is very different from the command and control style prevalent in the preceding centuries.
Intangible assets such as people, know-how, systems and intellectual property are valued at many times more than tangible assets. Traditional management training and methods are severely lacking in “people knowledge” and an understanding of a world that is more and more intangible.
A new style of leadership is required for the new paradigm economy of today and the future.