7 Questions to Ask When Facing a Cash Crunch

7 Questions to Ask When Facing a Cash Crunch

28 September, 2022

Contributed to EO by Brooke Lively, an EO Fort Worth member who is founder and president of Cathedral Capital, which provides strategic financial advice to drive profit. By creating customized teams of financial professionals to analyze data trends and guide entrepreneurs through their numbers, CathCap serves as support to predictably scale and grow businesses.

When is the best time to plant a tree? Ten years ago. And when is the next best time? Today.
Confucious

I agree with this age-old wisdom, which also applies to cash crunches. The best time to avoid a cash crunch is well before you find yourself in one. But how do you know one is coming? Most small companies just check their bank balance and figure out they can’t make payroll. But there isn’t a lot you can do about it at that point.

It’s a best practice to have a Cash Flow Forecast that tells you how much money you are projected to have at the end of each week, and which extends to encompass the next six to eight weeks. That way, you can make plans and avoid a cash crunch that may be looming.

A few years ago, I was going over a Cash Flow Forecast with a client in Oregon named Dan. We looked out seven weeks and saw a big red negative number. Dan (understandably!) started to panic a little, but once he calmed down, we systematically went through all of his options.

Here are seven questions to ask yourself when you’re facing a cash crunch:

1. Can we use our line of credit (LOC) and transfer the needed funds?

Unfortunately, Dan didn’t have a LOC, so that option was out.

2. Are there any unnecessary expenses that we can cut that will resolve the problem?

Dan and I looked into this during previous cash crunches, and he was running pretty lean. There wasn’t anything he could cut that would solve this particular problem.

3. Can we move a big bill out a week and solve the problem?

Some big bills can be moved. For example, your landlord is usually fairly understanding if rent comes in a few days later than usual. That wouldn’t work for Dan—the negative number was too large. We would have needed to move payroll, which is typically the last thing you want to do. Your employees need to feel confident that they are going to get paid on time, or they will start looking for new jobs.

4. Do we have room on the credit card to just pay the minimum and try and catch up over the next month or two?

Dan’s credit cards were pretty much maxed out. Had we only paid the minimum, a lot of charges for services he needed to keep the business running would have been declined. So that wasn’t an option.

5. Can we apply for a line of credit in time?

We had seven weeks, which is usually enough time. However, he had tried applying for one a few months earlier and had been rejected because of previous situations that made his financials look unappealing.

By this time, my client was really getting worried. We had gone through all the options that involved expenses and credit. But the list wasn’t exhausted yet.

6. Can you, the business owner, forgo your salary or draws this month?

This is a radical, last-ditch option. At CathCap, we believe that if the owner of the firm doesn’t have enough cash at home, they aren’t going to make solid business choices. I consider this a last resort, as we had one other option to consider before it became necessary.

**7. Is there a new product or service that you can quickly start selling to balance the loss you are facing?**

This turned out to be the key question with Dan. He and his wife/business partner had been thinking about a new service. They had been keeping notes about it in a blue binder. They pulled out the blue binder, made some calls, finished building out a few key points—and then started selling!

A week later, the cash crunch had disappeared from his Cash Flow Forecast. The Blue Binder Project was a hit with his clients. What I love about this story is the far-reaching impact the Blue Binder Project had on not only his business but also on his clients’ lives and even the Oregon court system.

Dan’s Blue Binder Project was a program taught by a licensed counsel that helped people who had been charged with DUI (driving under the influence of drugs or alcohol) dig deep to find the reasons why they drink or take drugs and help them toward sobriety. These people are then able to take their graduation certificates to their sentencing, and the judges take that into consideration when meting out punishment.

What a great service to provide—for the clients, their families, and frankly, for all people on the road in Oregon. Dan took something that had been sitting on a shelf and changed lives—in addition to eradicating his cash crunch.

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: FINANCES WOMEN ENTREPRENEURS

Tags: Brooke Lively Cash Flow Forecast CathCap Cathedral Capital entrepreneurs' organization EO Fort Worth

5 Ways to Leverage Awards in Your Marketing Efforts

23 September, 2022

You work hard to make your business both a great place to work and a successful contributor to your community. Along the way, you might enter an award competition or find yourself as the grateful recipient of industry kudos or honors. While your humble nature might whisper “keep it quiet,” leveraging awards in your marketing efforts is one of the best things you can do as an entrepreneur. Any award—given or received—has the potential to bring incredible benefits to businesses of every size.

Publicizing awards and interacting with people on social media are two of the best ways you can leverage awards and build a reputable name for your business.

Here are five steps to maximize the giving and receiving of awards, both inside and outside of your company.

1. Brag about being a finalist

When one of your employees is named as an award finalist, it’s worth publicizing. Announce the news to let people congratulate them. Some followers might share the recognition in public posts, which is excellent for the standing and reputation of your company.

Here are some tips to share your news of being a finalist:

Post the news on various social channels
Thank clients for their support or vote
Include more information about your company along with the post

2. Promote when your company is a winner

Let your followers on social media know by posting the news and sharing exciting photos of the ceremony. Never forget to use the event’s hashtags to gain visibility and new followers.

But there’s more you can do with award wins. Often, award organizers provide the winners with award badges or logos for promotional usage. You can use these on your print ads, emails, company website, and other marketing materials. This type of promotion can help you gain more trust and goodwill from the public.

3. Celebrate the win with a customer campaign

Creating campaigns to thank loyal customers is a great way to leverage an award. You might offer followers a special discount code or arrange a social media competition. By thanking customers, you can announce your victory, acknowledge their role in your success, and garner positive attention.

Custom awards around growth, community involvement, or performance are great ways to add uniqueness and individualization.

4. Create a press release

An award shortlisted or won can become your story for press release marketing. You may be the only one from your area or country who got nominated, or maybe someone in your company was a first-time award winner. These headlines make great press releases! Captivating stories have a way of reaching many people.

5. Congratulate other award winners

Make an effort to appreciate other businesses that win awards, and congratulate them publicly on social media. Congratulating other companies creates a chance to build strong relationships with them that could be mutually beneficial in the future.

We’ve learned from experience that building solid relationships with other companies can expand reach in big ways. When other companies share our content, we gain exposure from unfamiliar members on social media in return.

Leveraging awards—is it worth it?

Winning any award—or even being nominated for one—is an honor. But the benefits of an award are not limited to the joy you get from winning. Being a shortlisted candidate can also bring many benefits. If you aren’t already doing so, it is high time for your business to take advantage of awards. Whether you are a startup or a seasoned industry player, awards are an ideal way to position your company as a leader.

Awards can give you a competitive advantage as well. Capitalize on every opportunity to include award mentions in your marketing strategy and leverage the many benefits they provide.

Contributed to EO by Mike Szczesny, the owner and vice president of EDCO Awards & Specialties, a dedicated supplier of employee recognition products, branded merchandise and athletic awards. Szczesny takes pride in EDCO’s ability to help companies go the extra mile in expressing gratitude and appreciation to their employees.

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: PR/MARKETING Public Relations STARTUP

Tags: EDCO Awards EDCO Awards & Specialties entrepreneurs' organization Mike Szczesny

4 Financial Metrics Every Entrepreneur Needs to Know (To Grow Your Business)

14 September, 2022

Contributed by Shawn Johal, an EO member and former president of EO Montreal, who is a leadership speaker, bestselling author of The Happy Leader, and founder of Elevation Leaders, a business growth practice helping companies 10X their business valuation.

A whopping 77 percent of business owners wished they better understood the numbers within their business, and 82 percent of businesses fail due to cash management problems.

No matter your background, understanding the financial metrics that govern your business can be daunting. I know because I’ve lived it myself.

In our first business, a manufacturer and distributor of LED lighting solutions, we were committed to growth: we implemented the Scaling Up methodology and grew very quickly over twelve months.

Things were going great—until we realized there were key numbers that our business depended upon, which were not optimized. We didn’t know “which numbers” we needed to work on, so we tried them all. We systematically reviewed every financial and operational metric within our business until things began improving.

What I learned in the process: Profitable growth is entirely achievable for every company, and as entrepreneurs, we don’t need to know every number inside out. Four key financial metrics will contribute to major positive transformation within your company—learn, optimize and retain a bird’s eye view on them, and the sky is your limit!

Here they are:

1. Cash flow

Cash flow: The change in deposits plus the change in debt in your company.

It’s the first— and most important—metric to understand. In simpler terms, it’s the net balance of cash moving in and out of the business at a specific point in time. Many common business transactions fall into and affect cash flow. Purchasing inventory from suppliers and paying wages to employees count as cash moving out, whilst selling merchandise to customers and monthly subscriptions or monthly payment installments from customers count as cash moving in.

Cash flow is simple, but don’t let its simplicity undermine its importance: I’ve met too many companies that fly or fail entirely because of cash flow. Keep an eye on it at all times!

2. Operating profit

Operating profit: Gross margins subtracted by overhead costs in your company.

In my view, operating profit is the second most important financial metric to monitor. It helps a business understand the net profit the business is making from normal business operations.

This metric excludes negative variables such as tax payments or interest payments on debt. Instead, contrary to cash flow, it includes positive variables that are outside of the core products or services the business offers to the market. A profitable business has a positive operating profit, and also has a sustainable plan to keep it that way. Sometimes, this metric is also referred to as EBIT (Earnings Before Interest and Taxes).

The main purpose: Operating profit helps entrepreneurs, investors and leadership teams know how profitably the business itself is operating.

3. Working capital

Working capital: Receivables plus inventory minus payables.

Calculating your working capital will help you understand how much money is available to meet your business’ immediate and short-term obligations.

If your company does not have inventory, then the calculation is simply receivables minus payables. Obligations like paying off short-term expenses and debts require working capital. Positive working capital indicates that a company is able to sustainably support day-to-day operations, while simultaneously paying off debts or expenses the business accrues.

Working capital becomes particularly key if, for example, your business is a seasonal one: you’ll need more working capital available to operate in specific busy months of the year or to stay afloat during slower seasons. Working capital may also need an injection if, for example, you’re looking to take advantage of bulk discount purchasing from a key supplier.

Having a grasp on and being able to project your working capital becomes key in tons of scenarios that real entrepreneurs face each day. Keep your finger on its pulse.

4. Labor Efficiency Ratio (LER)

LER: The Labor Efficiency Ratio within your organization.

The fourth—and most difficult—metric to calculate. Many see this as an execution metric, but it truly is a financial metric. Labor efficiency ratio will not only directly impact profitability, but it may ultimately be the No. 1 driver of profitability within your company.

LER measures the productivity of people within your business. To calculate this, you take the expected direct labor hours of actual output, divide it by actual direct labor hours worked, and multiply it by 100%. A ratio above 100% indicates greater labor efficiency than budgeted and vice versa. Remaining efficient within a business is huge, but this metric is often ignored in comparison to profit and cash flow.

LER matters because very few (almost none) companies scale with a single person; our businesses need to hire in order to grow profitably. LER measures the productivity of each dollar spent on labor: it gives you a clear picture of how much your business is investing in labor and what the “return” on that labor really is.

Having a clear picture of your company’s LER will help you make key strategic decisions that will have a major impact.

As a business growth coach, I regularly meet entrepreneurs who (no matter how seasoned and smart they are) only review their financials once a year. Sometimes the reason is there’s a disconnect between understanding these numbers in a clear and easy way; sometimes, it’s because they feel overwhelmed by the numbers.

If you can’t envision yourself reading these key metrics each week, then ask these questions and make sure you get clear answers to them:

Is there enough money to continue operating while paying for debts?
Do we have a positive cash flow that can cover paying employees and bringing in inventory?
Is the operating profit high enough to allow the business to continue to grow?

Yvon Chouinard, founder of Patagonia, has an amazing quote I love: “Profit is what happens when you do everything else right.” Aside from bringing us genuine happiness, our businesses exist to grow profitably. Monitor these few metrics closely, and profit will come, I promise!

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: Best Practices FINANCES

Tags: best practices cash flow Elevation Leaders entrepreneurs' organization EO Montreal Operating Profit Patagonia scaling up Shawn Johal The Happy Leader working capital Yvon Chouinard

3 Benefits of Establishing a Business Trust

13 September, 2022

Contributed by Kc Chohan, an EO Los Angeles member who is the founder of Together CFO, a financial strategy firm that helps business owners optimize their tax strategies so they can keep more of their wealth and focus on growing and scaling their business.

Since I started my business in 2016, I have always been curious to know the best way to protect my assets, both personal and business. The conventional wisdom of starting a company as a limited liability company (LLC) or S-Corporation was fine when we had minimal assets. However, my company quickly grew both in headcount and assets, so it soon needed more advanced financial protection strategies.

I studied the best practices of how elite and family businesses protect their assets and implemented these strategies in both my business and personal life.

I learned that it all starts with trusts. A trust is a fiduciary arrangement with three parties: grantor, trustee and beneficiary. In a trust, the “grantor” transfers the financial benefit of property—such as a company—to a “beneficiary.” The legal ownership and control of the property (or company) is either maintained by the grantor or given by appointment to another individual or financial institution, called the “trustee.”

Depending on local laws where you establish a trust, the grantor, trustee and beneficiary may be the same person or may also be two or three different people or entities.

When you create a trust, you enact a contract agreement that is much more powerful than an LLC, S-Corp or C-Corp. There are many different types of trusts, including simple trusts, complex trusts, real estate trusts, land trusts and charitable remainder trusts—the list goes on. So, it can get very confusing very quickly and you should consult your estate planning and tax teams if you are interested in pursuing this option for your business.

Here are 3 ways a business trust may benefit your company:

1. Asset protection

From an asset protection standpoint, a trust is a smart strategy. It’s important for the trust to own all of the company’s assets, which can then be leased or used by your main business. This gives you additional asset protection once the trust is set up accordingly with this strategy in mind. When a trust is set up and operated correctly, it can also offer tax benefits to help optimize your tax strategy so you can maintain more of your wealth to use to grow and scale your company.

2. Employee management

Did you know that a trust can help a business manage its employees? Sometimes the stress of W2 employees, unions and insurance claims can deter you from wanting to scale your business. Here’s how a trust can help in that situation: You can set up a company inside of a trust that hires and pays employees. Then, you can contract that new company to provide the workforce for your main company. This setup can protect your main company from any legal or insurance issues that could impact it.

3. Legal protection

When a company’s assets are held in the correct type of complex trust, the legal arrangement makes it increasingly difficult for people to sue the company or you as its trustee. Because the trustee of the trust is technically a guardian and not the beneficiary of the trust, people cannot sue you as a trustee. Similarly, as the beneficiary of a trust, if you are sued, the assets in the trust cannot be accessed by the party suing you because you are not due anything from that trust unless the trustee issues a distribution. When seeking this type of legal protection from a trust, it is very important and a best practice to keep the trusts’ beneficiary information private so that no one can conduct a search for the names of the trust’s beneficiaries.

The hardest part of this transition for me was learning how to properly administer the trusts after I opened them. First, you must learn a new set of rules when you’re operating in the trust world, which are different from the Generally Accepted Accounting Principles most business owners are familiar with. You must take steps to ensure not to comingle funds. There can be no mixing of your business or personal funds with trust funds. I treat the trust as its own company, with its own credit card and debit card, which makes it much easier to manage.

When your assets and wealth grow, it’s important to update your structure and setup so that you can protect your company and your family from unknown and unforeseen dangers. As you scale your company, you often outgrow your team and need to update processes and procedures. One of the key lessons I have learned is that the team, processes and structure that got you where you are is not the same team, processes and structure that will get you where you want to be.

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: Best Practices FINANCES STRATEGY

Tags: business trust entrepreneurs' organization eo los angeles Kc Chohan TogetherCFO trust beneficiary

How to reconfigure your office into an efficient co-working space

9 September, 2022

For decades, businesses faced a genuine challenge with office space. Growing companies needed enough office space to expand into as they added headcount to support growth. Office prices were constantly rising, and companies faced challenges in finding the kind of space that was suitable for them.

However, the pandemic changed all of that. Suddenly, entrepreneurs found staff working from home and focused on virtual, rather than in-person, collaboration. Remote or hybrid work is now the norm, and a vast majority do not anticipate a full-time return to the office. Ever.

So, is the original concept of the office dead—or just evolving? Even those who believe that the majority of employees working full-time in an office is a thing of the past generally concede that a hybrid work schedule represents the future of work.

The remote working challenge

While a hybrid schedule is generally preferred by staff and has many benefits for businesses, the fact that more people are working remotely than ever before creates a challenge. Companies with a large amount of office space and a hybrid workforce may now potentially have too much space.

Such companies are well-positioned to perform a classic entrepreneurial pivot: Why not consider the option of transforming your traditional workspace into something more akin to a co-working space?

For example, if you have office space for 60 people, but you only typically have 20 staff in at a time, you have space that could be repurposed. Creating a new co-working area within your office set-up is especially useful for companies on long-term leases or for those that own their building or property.

Adapting is key. Reconfiguring your current office space into a modern co-working space allows you to retain your office space but make more efficient use of it. Your co-working space also becomes more attractive to employees adapting to a new culture of hybrid work.

Make sure it is right for your team

As you consider whether to adapt your office into a co-working space, think carefully about whether the strategy is right for your team. Yes, it may be financially better for the company, but if it proves too disruptive or simply isn’t the right fit for the company, it can end up costing money in the long term.

Co-working space arrangements are well-proven as advantageous to start-ups. In addition to cost savings, co-working is the modern way, and for start-ups, a co-working space encourages skills and key relationships to thrive.

It is a best practice to discuss the possibility with your staff and identify where challenges could occur.

Establish common and company areas

It will likely remain the case that the majority of your office space will be populated by your staff members. It is critical to set rules around which areas are common areas, where everyone including co-working space users can go, and other areas that are strictly for company staff. This might be important in terms of company data privacy, for example.

The process may involve rethinking the office layout. For example, you may want to designate a lunch room and meeting rooms that everyone can use. Communication is key in determining and conveying these boundaries to both staff and co-working space users.

Create a new desk plan

If you plan to transition to a co-working space, you will almost certainly need to re-think your desk plan. It may make sense to ensure that those working in teams are able to sit close to each other—especially if other parts of the office will be occupied by those who don’t work for the company. Your individual space layout will determine how you can best use your space to set up efficient work areas that also respect the privacy of desk workers nearby.

Market your co-working space properly

Once you have adapted your office set-up, it’s time to market your co-working space. Your redesigned hybrid space is now something you can actively market to attract future talent, highlighting that you are an innovative company that does not shy away from progressive workplace strategies.

However, adapting your office (particularly if you are a start-up) will only be a financially successful move if you can make sure to have the space as filled as possible, and you can only do this by showing it off in the best possible light.

Grasping the basics of visual content creation and investing in high-quality photography to showcase the reconfigured space will allow potential clients to see that you have an enticing co-working space. It is important to create an attractive website focused on the co-working space and market it on social media and among local businesses. You can even host events in your new space to showcase its appeal to potential clients.

It is also important to create an attractive website focused on the co-working space and market it on social media and among local businesses. You can even host events in your new coworking space to showcase its appeal to potential clients.

If your co-working space pivot succeeds, it may become a bustling hub that attracts new ideas, energy, enthusiasm—and possibly future employees for your own company—in what was once unused space!

Contributed by Annie Button, an established business writer based in the UK who focuses on business growth and development, branding, digital marketing and HR trends to help businesses thrive.

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: Best Practices PEOPLE/STAFF Productivity STRATEGY WORK-LIFE INTEGRATION

Tags: Annie button best practices co-working entrepreneurs' organization hybrid work

Defining Priorities: When Fatherhood and Entrepreneurship Collide

7 September, 2022

Contributed by Dhiren Harchandani, an EO UAE member who is a transformation architect, speaker, author, and endurance athlete with over 2,500 hours of coaching experience. He’s the creator of several personal development programs designed to transform each area of life: Superhuman Journey, Master Your Inner Game, Guided Forgiveness, and Recode your Thoughts. He’s on a mission to show every human being on planet Earth how to Master their Inner Game.

Nobody likes making mistakes or failing. That subsequent horrible feeling is what we all would rather avoid.

The same goes for me. It’s not that I do not make mistakes—I did, I still do, and I will, just as we all will. Nonetheless, feeling weak and vulnerable is something I am not accustomed to. It’s like I wear this mask that covers my insecurities and weakness from friends and family.

Nine years ago, I made a mistake that significantly changed my life. It wasn’t my first mistake, and it wasn’t my last, but it was an incident that I will remember for the rest of my life. It made me look in the mirror and find the courage to finally unmask. I let go of my fears and finally let people see all of me. That liberating feeling made me grow, and finally, the spirit animal inside me was ready to roar.

At the time, I was entering a new phase in my life. My wife, Jasmine, and I were expecting our first child. We lived in a new house where we often took long walks on the beach—simply put, I was living my best life. On 5 June 2009, I received an unexpected call from one of my clients. “Dhiren, we have an opportunity. To make it work, we need you to come to Ireland,” he said.

Should I stay or should I go?

I looked at my calendar because Jasmine was due on 28 June. I thought, “I can do this.” However, almost instantly, my spirit animal whispered, “This is a bad idea.” But I proudly answered, “I’ve got this; I can handle it.”

After convincing myself, I anxiously told Jasmine about the call. She said, “This is an important trip for you; take it. There’s a lot of time between now and the 28th. You’ll be fine.” My wife is a wonderful woman, but her support on this matter puzzled me. I could not believe how calm she was.

Even so, my gut would not stop growling at me. I decided we should consult our doctor. After a few scans, the doctor said, “You have nothing to worry about. Stop overthinking, and go on your business trip. There is plenty of time, plenty of time.”

I wondered why I still felt unsure, despite getting reassurances from both my wife and the doctor.

Ultimately, I decided to go on the business trip. I left on 8 June and would be back by 12 June, with time to spare before my wife’s due date. After three days of intense meetings, on 11 June, I was in the hotel packing my bags to go home when my phone rang. It was Jasmine.

The worst possible timing

Looking back, I should have immediately figured out something was amiss because it was 4am in Dubai.

“Hello, what’s wrong?” I asked. Her voice cracked, “My water broke.”

“Are you sure?” I inquired, aware that she wouldn’t call me in the middle of the night to play a prank, but deep down, I wished she had. At that point, I heard a noise like a caged animal rattling its bars. “Yes, yes, I am sure,” she said frantically. My firstborn was on the way, and I was thousands of kilometers away.

I made frantic calls to try to get on the next flight to Dubai. Even if I could, it was a 16-hour trip from my hotel room to delivery room number 302 at Al Zahra Hospital. The crushing reality hit me—I wasn’t going to make it in time.

I thought, “What made me think that a business trip was more important than listening to my intuition that told me not to go? I wasn’t true to my family or myself. I shouldn’t have left.” All this while I was trying to get home to my wife and child. After a few calls to the airlines, my mother-in-law called to say, “They just took her into the delivery room. It’s happening now.” My heart sank.

At that point, I experienced my most defining moment as a man in the most unimaginable way. I was still on the phone, so I heard the doctor say, “Push, push, breathe, push.” There I was, miles away from my family, listening to the birth of my first child, all the while regretting my decision to go on this trip. After the pushing, screaming and pulling of hair (mostly mine), the doctor finally gave us the good news: It was a boy. That moment was as bitter as it was sweet.

You see, we had decided to wait and discover the gender of our child the natural way. So, it was a beautiful moment that, as a parent, you would remember for the rest of your life. But I would not have that beautiful memory. I wasn’t there to experience it with my wife as we had planned. I could not stop thinking about why I wasn’t there. I had wanted to be there; I had prepared to be there, so how did this happen?

The first time I held my child in my hands, I had a turbulence of emotions—jubilation, joy, guilt and regret. Nine years later, I honestly don’t remember what challenges my client was facing that made me go on that trip. However, I remember exactly what I missed. It was not worth it, to miss my child’s birth for something that could have been avoided.

Lessons learned

Nonetheless, my colossal mess-up taught me three valuable lessons:

Always listen to your spirit animal.
Nothing is so important to make you miss the truly magical moments in life.
It revealed my real passion, which is being the best father I can be.

Finally, my mask was off, and I realized that being vulnerable is being strong. I can’t do it all, and that’s okay. Please learn from my story and mistake to examine your life because, after all—we are humans, and we mess up.

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: Coaching Entrepreneurial Journey Lessons Learned WORK-LIFE INTEGRATION

Tags: Dhiren Harchandani entrepreneurs' organization EO UAE lessons learned Master Your Inner Game

Why I Designate Time to Think Freely

2 September, 2022

Over the years, I have consistently noticed that I get many new and different ideas when I travel away from home and get out of my regular routine. I used to believe that one of the reasons for this phenomenon was that a different venue or culture offered me a change in perspective. However, upon reflection, I think the real driver is that taking time away allows my brain to more easily access creative thinking mode, as it’s being asked to do less on an hour-to-hour basis.

Our brains tend to operate through two systems, one conscious and active, the other subconscious and automatic. For example, breathing, walking, driving to a familiar place and blinking are things we have done so many times that they don’t require much cognitive capacity: these functions run on autopilot.

But while these basic but critical functions require little cognitive effort, many other tasks we do each day leverage the active system in our brain. These tasks include learning new skills, listening closely to someone speaking, participating actively in a meeting, answering emails or even scrolling through social media.

During these activities, we usually lack spare capacity for free thinking or brainstorming. I found this to be especially true at one point on my recent vacation, during a rush hour drive from London to the English countryside on the left side of the road, which required so much active attention that I was exhausted afterward. I would have felt very different had I been driving on the right side in a familiar area.

As you might expect, many of our best insights and breakthroughs come during more automatic tasks, when the active part of our brain is free to work on creative solutions, problem solving or new ideas. This is why so many people have epiphanies in the shower, or why taking a walk can be the best way to brainstorm when we’re stuck on a problem.

Having time to think quietly over the past few weeks produced several professional and personal breakthroughs and important ideas that seemed to come out of nowhere. I found myself constantly filling my journal and blank pages of hotel stationery with notes, and in many cases, when I reviewed those notes weeks later, I had totally forgotten what I had written down. Some of the notes included lightning-in-a-bottle type revelations that likely never would have happened had I not created the space, and that would have come and gone had I not stopped to write them down.

Having worked with many coaches over the years, I have heard the suggestion that leaders, and especially CEOs, should carve out a few hours each week to sit silently with an empty notebook in a location outside their office, such as a coffee shop. Initially, I thought this seemed counterproductive to getting things done, but I’ve come to appreciate the value of giving yourself this mental space and freeing your mind from any other active tasks. In these moments, your brain can focus where it’s needed most.

After seeing the results from the past few weeks, I am committing to make more time to do this type of thinking in my regular routine.

I think we fail to appreciate how our overbooked schedules and hyperconnected lifestyles hijack our available brainpower. These constant demands for small amounts of our attention have a real cost to our ability to think deeply and strategically.

It’s really amazing what our minds can do when we give ourselves the time and space to think proactively and not reactively. When was the last time you gave yourself more than an hour of uninterrupted thinking time?

This post originally appeared on Robert Glazer’s Friday Forward newsletter and is reprinted here with permission.

Contributed by Robert Glazer, a former EO Boston member who is the founder and chairman of the board of Acceleration Partners, a global partner marketing agency and the recipient of numerous industry and company culture awards. He is the author of the inspirational newsletter Friday Forward and #1 Wall Street Journal bestselling author of five books: Elevate, Friday Forward, How To Thrive In The Virtual Workplace, Moving To Outcomes and Performance Partnerships. He is also the host of The Elevate Podcast.

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: Best Practices Inspirational WORK-LIFE INTEGRATION

Tags: acceleration partners entrepreneurs' organization eo boston Friday Forward robert glazer

3 tips to create your company’s foreign and domestic investment strategies

31 August, 2022

The world is a big place, and companies wishing to invest have many domestic and foreign options. For example, 1,806 U.S.-based companies invested in Germany in some way in 2021, almost matching the pre-pandemic total.

One way we can truly diversify is to pursue opportunities both at home and abroad. Excluding sources of investments may alter the way a startup builds and shapes its culture. It can also influence how leadership and directional structure align. Foreign investments (such as companies, commercial loans, or opening foreign offices) encourage globalization and mitigate risk for businesses.

Excluding investment sources creates a new manifestation of development capacity and vision that’s much more narrowly focused. Let’s explore the benefits and consequences of foreign versus domestic investments.

The good, bad and ugly of foreign investments

Foreign investments can broaden a company’s portfolio while introducing your people to diversities of culture and experience. These varied interactions create a well-rounded team with innovative thought processes driven by a greater volume of inputs. Additionally, overseas investments can provide specific tax incentives that can boost the company’s bottom line.

The host country receiving the investment benefits as well. A foreign direct investment, or FDI, helps stimulate the local economy while making international trade much easier in the face of tariffs and geopolitical strife. With direct investments, a company buys property and equipment in another country. This enables a transfer of resources, including technology and knowledge, that significantly increases the productivity and efficiency of the workforce.

But there’s good and bad in every investment, and foreign investments are no different. Investing in a foreign country means speaking different languages with people who have different traditions, which could lead to misunderstandings and miscommunications regarding the goal of the investment. With all this talk of the good and bad of foreign investments, domestic ones come with their own advantages and disadvantages.

What comes with going domestic

Domestic investing is much easier to accomplish, as you’re already aware of the regulations and have locally available resources to help. Expanding a business locally can save time and money while simply growing the team you already have. And you make it easier to attract investors, which is why entrepreneurs in China aim for direct public listing on domestic exchanges.

Furthermore, investing domestically is easier and more comfortable, allowing you to grow what you already know works. However, focusing on steady local or regional development can slow the path of international expansion.

We’ve already seen how a global health crisis and regional military action can affect regions in different ways. A geographically diverse portfolio lowers your exposure to these risks while potentially unlocking entirely new sectors not available in your current market. By narrowing investments to only domestic, you risk missing growth opportunities while leaving your portfolio with too much exposure to the risks affecting that area.

3 ways to strategize resource allocation

There’s a misconception that overseas investments lower domestic investment, but a recent study found this simply isn’t true. The reality is that globalized investments help grow multinational firms both vertically and horizontally.

If your business is looking to invest, here are three tips for devising a plan.

1. Create a strategy.

You’ll need two strategies for your business investments: one that’s domestic-focused and one for international exposure. And your foreign investments should take a local-first approach that focuses on highly localized products and services. This brings a competitive local advantage and ensures success wherever you expand.

Operating in foreign markets gives you a portfolio that looks and feels like separate business units. The new mergers and acquisitions should easily fit into the overall brand of the parent company while providing access to labor, natural resources, and other advantages of the new location.

2. Improve your understanding of regulatory compliance.

When investing overseas, it’s critical to keep an eye on regulatory compliance. Public policies are typically geared toward protecting the general welfare, and as a foreign company, you’ll need to ensure you’re fully aware of all related rules and regulations.

Before expanding into another country, make sure you fully understand the legal ramifications both at home and abroad. Geopolitical strife could lead to economic sanctions from one of your countries on the other. This could cause major hurdles for your business—but the more proactive you are, the better.

3. Travel to wherever you may invest.

It’s critical to physically travel to the country you plan to invest in. This provides a closer look and clearer idea of the potential outcomes. Countries, like companies, have credit ratings, which is an excellent start to your due diligence. However, you’ll need boots on the ground to really feel and understand what it’s like doing business there. When visiting a new country, find its chamber of commerce for a closer look at how easy it is to operate there while making connections to help you survive.

A company’s investment portfolio is meant to diversify against risk and maximize earning potential. Often, this is done domestically first, but foreign investments can significantly improve a company’s books. There are vast opportunities available for those willing to seek them, but you must be prepared.

Contributed to EO by Kevin Xu, the CEO of MEBO International, a California- and Beijing-based intellectual property management company specializing in applied health systems. He also leads Skingenix, which specializes in skin organ regeneration and the research and development of botanical drug products. Kevin is co-founder of the Human Heritage Project.

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: FINANCES international

Tags: entrepreneurs' organization Human Heritage Project kevin xu MEBO International Skingenix

7,209 Connections Made Between EO Members: How the 1-ON-1 Connections Program Increases Member Value

26 August, 2022

It’s been two years since EO Atlanta members Brad Stevens and Jason Rhoades came up with a brilliant initiative to enhance member connection and create impact during Covid shutdowns: 1-ON-1 Connections.

During those 2020 pandemic days when in-person meetings were rare, Brad and Jason combined their expertise for a common cause: To strengthen the weave of relationships between EO members to drive value. Using virtual assistants in the Philippines from Brad’s company, Outsource Access, and technology from Jason’s firm, Toolbox9, they created a method and technological algorithm to help increase member connections and engagement—and 1-ON-1 Connections was born!

It was a huge success across EO Atlanta: 1-ON-1 Connections created over 600 connections in its first 90 days, significantly strengthening human connections among chapter members.

Providing connection and engagement worldwide

Next, Brad and Jason did what entrepreneurs do best: Scaled the initiative. Word spread quickly within EO, and they now run the 1-ON-1 Connections program currently on an in-kind basis to EO chapters worldwide. Nearly 20 participating EO chapters are already reaping the value from this initiative, including EO Toronto, EO New Zealand, EO Brisbane, EO South Florida, EO MEPA Bridge, EO Fort Worth, EO Europe and EO Western New York.

The model is simply to rapidly build intentional, consistent relationships between more EO members at scale via email. While ‘chat’ platforms are very valuable, they require members to go there to engage. 1-ON-1 Connections delivers right to each member’s inbox.

And, 1-ON-1 Connections is turn-key, so it requires nearly zero work for chapter staff.

“The feedback has been incredible,” Brad shared. “It rapidly ‘thickens the weave’ of member-to-member relationships with the intent to drive engagement and retention.” And, it is fully “private label,” so it looks like it is created by and coming from each local chapter—for example, the EO Brisbane 1-ON-1 Connections Program.

In addition, 1-ON-1 Connections has applications for:

Events and conferences. Recently deployed before XCentric, EO’s US Central regional event, the program connected conference attendees from different chapters, so they knew a few more familiar faces at the event.
Strategic Alliance Partners (SAPs) and chapter sponsors. EO members can opt-in to be paired with a chapter SAP a few times per year. This can substantially increase value for the SAPs, who often struggle to get member “face time”.
EO Accelerator participants.
Sister chapters.

In brief: 1-ON-1 positively impacts member engagement through rapid 1-on-1 connections that enhance value by systematically pairing members together with customized introductions that increase the likelihood of a beneficial personal collision.

Though Brad and Jason didn’t originally intend to “make it a business,” at the encouragement of fellow EOers, they recognize opportunities for monetizing the program for thousands of member-based organizations and conferences.

They see their niche as being “the only full-service, private label, 1-on-1 connections program for member organizations and conferences.”

What EO members say about 1-ON-1 Connections

“We all need to be knocked out of our relationship bubbles, and this is a perfect tool! —Jon VanderMeer, EO Atlanta, Kiosk & Display

“Every time you meet another EO member, you get to experience share, learn and grow from them―no matter how different your businesses are. My first 1-ON-1 Connection meeting was just what I needed: I had been so stuck in an area, and Jeb Stewart suggested an exercise to try. He gave me accountability, growth and a good challenge.” — Melissa Davis, EO South Florida, Elev8 Hire Solutions

“Two EO Toronto members shared that they ended up doing a multi-million dollar deal together that never would have happened if not for the EO 1-ON-1 Connections program!” — Shane Bennett, EO Toronto past president, Integrated Automotive

“I was just launching a new fitness business and wanted to add a supplement line. Through 1-ON-1, I got paired with a new EO member who happened to have a supplement manufacturing business. We had an awesome Zoom call, and I ended up touring his facility to understand the process and its outstanding additional revenue potential.” — Ethan King, EO Atlanta, 6 Pack Dads and Zeus’ Closet

“My second connection was with a super successful entrepreneur with multiple exits. The timing was perfect, as I’m launching my second business with an eye to sale. I got tons of value and even shifted my thinking entirely on my growth approach. It would have never happened without that 1-ON-1 Connection.” — Kara Brown, EO Atlanta, LeadCoverage

“It is always on my list to be more intentional about building relationships within EO. This program handles all the legwork to set up efficient, impactful conversations so I can focus on the fun part of connecting.” — Shantel Kriss, EO Atlanta, Imagine Media

How 1-ON-1 Connections works

Here’s how the 1-ON-1 Connections program works:

No major work is required from chapter staff or board members. Software and virtual assistants (VAs) manage it all.
It is “private label” for your chapter (ie, The EO Detroit 1-ON-1 Connections Program)
To start, all you need is a list of chapter members. The program will email the connections—typically once per month—“colliding” two members to prompt a meeting. The email will include each member’s company, bio, website, LinkedIn profile, and any other data you specify. All information is held in full confidentiality.
Proprietary software creates “pairings” so everyone is uniquely matched. Forum members who know each other well are not matched together.
Chapters receive a dashboard report showing stats on connections, open rates, click-through rates and survey results on connection feedback.
See a sample 1-ON-1 Connection email.

Are you ready for 1-ON-1 Connections?

“Human connection creates value,” Jason said. “The 1-ON-1 Connections program brings EO members together in an easy, turnkey way that requires no additional administrative work. As a result, members experience greater value from their EO membership, which increases engagement.”

Is your chapter, conference or other member-based organization ready to connect, collide and create value? Then it’s time to explore 1-On-1 Connections or email Brad Stevens for more information.

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: Entrepreneurial Journey EO News members Networking

Tags: 1 on 1 1-On-1 Connections Brad Stevens entrepreneurs' organization eo atlanta EO Brisbane EO Europe EO Fort Worth EO MEPA Bridge eo new zealand EO South Florida eo toronto eo western new york Ethan King Jason Roades Jon VanderMeer Kara Brown Melissa Davis Outsource Access Shane Bennett Shantel Kriss Toolbox9

4 Steps to break away from workaholism

24 August, 2022

More often than not, we revere people who are able to stretch their time to get more accomplished and are deeply devoted to their work.

I know this because I experienced it. I was working long shifts—more than 60 hours a week—but I didn’t feel the need to rest until one day, my brain completely shut down, and my body begged for a break. I couldn’t concentrate on my work, and my personal life had taken heavy losses.

That’s why I went deep into research to come up with some workable, tested methods for overcoming workaholism. What I learned helped me achieve my productive best without compromising my work ethic. I will share more about it, but first, let’s go over the basics.

What is workaholism?

In layman’s terms, workaholism is the act of working excessively without feeling the need to take a break or simply unplug. It happens when an individual is working compulsively at the expense of other pursuits.

There is a thin line between working smart and working hard. Following are some behaviors that may indicate workaholism:

Always being the first to arrive in the office and last to leave
Working on weekends as well
Taking on more work than you can handle
Working remotely, even on vacations

I ticked all the boxes, and that’s when I decided it was time to take action. Here are four steps I tried, which might help you cultivate healthier work habits.

The four-step solution to workaholism

It’s important for people to focus on their health and well-being, especially if they want to be productive. So, as a successful employer, you need to take a step back and communicate your problems to come up with an effective solution and increase your productivity.

Once you have done so, take these steps to break away from workaholism.

1. Acknowledge the problem

The first step is to skip denial and acknowledge that you have a problem.

Admit to yourself that your work habits are not healthy and need to change for you to get back to good mental health. Ask yourself these questions:

Are you constantly checking work emails?
Do you find it difficult to unplug?
If you’re away from your desk, do you feel the need to get back to it as soon as possible?

If you answered “yes” to any of these questions, you may have a tendency toward workaholism.

2. Discover the reason behind it

Identify the reason you started working obsessively. Ask yourself:

Do you find it difficult to say no?
Did it start with poor implementation of project management principles?
Do you work to avoid other issues?

These are very personal questions, but sometimes we take on more work in an unconscious attempt to avoid another issue or simply because we find it difficult to refuse.

3. Make a plan

Once you know the reason behind your workaholism, it is time for a plan of action to help you break away from the situation.

The aim is to become more productive and work smart. If you’re working from home, implement best practices to improve remote work productivity.

If you work from an office, take essential breaks to establish a flow of work. You might also consider adopting the Pomodoro method to divide your work into segments that will help you plan your day better.

4. Commit and implement

With your reasons and plan by your side, the only thing left is to implement this plan and reap the results.

Make a daily schedule of your commitments and tasks, and take one thing at a time. You can choose from a variety of existing daily schedule templates or build one yourself.

One productivity tip is to manage email accounts from one platform, such as Mailbird, so you can skim through everything in one place.

Workaholism is more than just working long hours. It’s a mental condition, and like every other condition, it requires help. At the end of the day, it is on you to communicate your issues and ask for this help.

Taking breaks or simply taking a step back are not signs of weakness. Rest will ultimately help you become even better at your work and push your productivity levels up. So, take charge of your situation, and get in sync with yourself.

Contributed to EO by Roman Shvydun, a writer who focuses on business, marketing, productivity, workplace culture and other related topics.

For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog.

Categories: Best Practices PEOPLE/STAFF WORK-LIFE INTEGRATION

Tags: entrepreneurs' organization lessons learned workaholism

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LEADING ENTREPRENEURS

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1. Can we use our line of credit (LOC) and transfer the needed funds?

2. Are there any unnecessary expenses that we can cut that will resolve the problem?

3. Can we move a big bill out a week and solve the problem?

4. Do we have room on the credit card to just pay the minimum and try and catch up over the next month or two?

5. Can we apply for a line of credit in time?

6. Can you, the business owner, forgo your salary or draws this month?

7. Is there a new product or service that you can quickly start selling to balance the loss you are facing?

1. Brag about being a finalist

2. Promote when your company is a winner

3. Celebrate the win with a customer campaign

4. Create a press release

5. Congratulate other award winners

Leveraging awards—is it worth it?

1. Cash flow

2. Operating profit

3. Working capital

4. Labor Efficiency Ratio (LER)

1. Asset protection

2. Employee management

3. Legal protection

The remote working challenge

Make sure it is right for your team

Establish common and company areas

Create a new desk plan

Market your co-working space properly

Should I stay or should I go?

The worst possible timing

Lessons learned

The good, bad and ugly of foreign investments

What comes with going domestic

3 ways to strategize resource allocation

1. Create a strategy.

2. Improve your understanding of regulatory compliance.

3. Travel to wherever you may invest.

Providing connection and engagement worldwide

What EO members say about 1-ON-1 Connections

How 1-ON-1 Connections works

Are you ready for 1-ON-1 Connections?

What is workaholism?

The four-step solution to workaholism

1. Acknowledge the problem

2. Discover the reason behind it

3. Make a plan

4. Commit and implement

**7. Is there a new product or service that you can quickly start selling to balance the loss you are facing?**