Success Requires Knowing Where You Want to Go

October 1, 2019 | Gary Furr Expert Tips

Have you ever decided to take a trip but not planned any destination? I have yet to meet someone who has. Yet business owners frequently lack a clear sense of their business’s destination, and fewer still have put it in writing.

EXPERT TIP | Gary Furr, Organizational Development Consultant:

As a business owner, you must know where you are going and where you want to end up. Without clear direction, you are likely to meander around, never fully achieving the success you are looking. Creating a vision of the future gives you and your organization purpose. How will you recognize success unless you define what that looks like for you?

When is the last time you stepped back from your business to take a hard look at where you are right now? Set aside some time in your calendar to evaluate where you are. When you do it, be honest. There is no value in lying to yourself. Why is this assessment so crucial? Because you need to know your starting point to be able to make a plan to reach your goal.

To accompany this assessment, you will need a vision. That is your destination. Once you have a current location and a destination, you can plan how to get from A to B. Read more about this in my book It’s Not Hard, It’s Business.

With over 40 years of C-level business experience and an MBA in organizational development, I am uniquely qualified to help you achieve success in your business. Give me a call to set up a free consultation: 503-312-3145.

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Develop Your Strategy for Success

September 24, 2019 | Gary Furr Expert Tips

Why do we complicate strategy? When we think it’s complicated, we avoid working on it and miss opportunities to grow our business and improve the bottom line. Discover how to make strategy count.

EXPERT TIP | Gary Furr, Organizational Development Consultant:

Strategy is about finding the need that your customer has and then organizing your company in a manner to meet that need in the most efficient and effective manner possible. The first step is to make sure you understand the customers’ need.

When did you last check in to see whether you fully understand your customers’ needs? Where is their point of pain? Are you addressing it? Being sure to stay in tune with those issues and aligning resources to make sure you are addressing customers’ problems and pains is great strategy.

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Mindset Is the Foundation of Business Success

September 17, 2019 | Gary Furr Expert Tips

It is tempting to believe that the right skills are all that matter in business, but mindset is a critical factor that differentiates businesses. What you feed your mind has a major impact on outcomes.

What stories do you tell yourself about your ability to succeed? What beliefs do you hold about yourself that may be getting in the way of achieving all that you desire? A surprising number of business owners I work with struggle with self-limiting beliefs.

Sometimes we fail to realize how profoundly these issues are impacting us. Try to listen to what is going on in your mind. You might even write down persistent thoughts. It’s worth the effort.

EXPERT TIP | Gary Furr, Organizational Development Consultant:

Mindset is the foundation of success. We must pay attention to how we think and how our thinking is affecting the results we are getting in business. Success comes to those who adopt a positive mindset with a definite purpose.

Fortunately, there are practical steps you can take to counteract negative beliefs and set yourself on a course for greater success. One of those steps is to consider your mind’s inputs, and to choose to put your mind on a healthy diet. This is just one practical step that will empower you toward success. Think of it almost like reprogramming. I promise it will pay off!

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Working Harder Doesn’t Guarantee Success

September 10, 2019 | Gary Furr Expert Tips

Many business owners fall prey to the idea that working harder brings success. In fact, it’s having a toolbox of critical business skills and employing them to grow your business that gets the job done.

EXPERT TIP | Gary Furr, Organizational Development Consultant:
Think of business growth acceleration like driving a car with a stick shift. You have to start your car in first gear and then shift through the other gears to achieve the desired acceleration. It is the same in business: There are no shortcuts. There are certain gears you need to shift through to accelerate.

Here are the fundamental gears that have power to accelerate your business growth:

Mindset
Strategy
Clear direction
A map and plan of action
Focus
Discipline
Knowing your numbers
Understanding your cash flow
Knowing your banker
Paying your taxes

These steps are groundbreaking; the trouble is that people either don’t know them or don’t employ them. Knowledge isn’t enough. Putting them into practice is what makes the difference. You may know the difference between first and third gears, but if you don’t shift, you won’t be getting anywhere.

With over 40 years of C-level business experience and an MBA in organizational development, I am uniquely qualified to help you achieve success in your business. Give me a call and set up a free consultation: 503-312-3145.

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How to Increase Your Odds of Business Success

September 3, 2019 | Gary Furr Expert Tips

Statistics paint a grim picture of the chances of business success: 50 percent of all small businesses fail by the end of their first year and 80 percent fail by their fifth year. It does not have to be this way!

Business owners usually have outstanding technical skills—that’s why they go into business. But talent alone is not enough. Business owners need to go beyond their technical skills and learn the business skills necessary to be successful.

Unfortunately, many owners believe hard work equals success. I’ve seen so many owners pour themselves into their businesses, sacrificing time and money, but all for nothing. They work harder and harder, doing the same things over and over, and it fails to yield the results they are looking for. There is a reason for that: They don’t have the business skills that will help to carry all of their technical expertise across the finish line.

EXPERT TIP | Gary Furr, Organizational Development Consultant:
If you want your business to be a success, learn and master the steps to sustainable growth and acceleration. The secret is to master the little things that can make a significant difference in your business.

The good news is that business growth and profit isn’t magic, and it’s not a secret. There are simple steps to business growth that I want to teach you. Helping others grow their businesses is my passion.

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Grow Your Business by 30, 40, or 50 Percent without Capital Investment

August 27, 2019 | News

If you are like most business owners I meet, you want to grow your business but you believe it will take capital to do so. The reason business owners say they want to grow is that they are not making enough money now. Here’s the issue: Revenue growth can come with added costs if you are not careful.

Most business owners say they want to grow their business, but few actually do anything about it. Most will continue to do the same things they have always done—while expecting different results each year. I am sure you know how that plays out. They think things will somehow get better, but they rarely do.

Change usually requires getting out of your comfort zone. That’s why so few of us do it. Like most people, business owners will rarely change until the pain to remain the same is greater than the pain to change. That often involves a crisis.

For the health of your business, I urge you not to wait for a crisis before you take action to change your business for the better. Why continue to lose money or earn less than you want to? Why delay the necessary changes to make significant improvements to your business and your financial future?

It takes courage to ask for help. The very best business owners seek help to guide their businesses to a more profitable future. Shouldn’t you? Why not do it today?

If you want to make dramatic improvement in your business and grow 30, 40, or 50 percent without capital expense, we can help you do so. We are experts in business growth. Have the courage to call: 503-312-3145.

garyfurr@garyfurrconsulting.com

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CEO Projections for 2019

August 20, 2019 | News

Back in April of this year I posted a blog post on the results of the 2019 CEO confidence index and projections. I then researched information on the longest economic expansions in U.S. History. With the news these days concerning the economy and the slow down in manufacturing, I felt it was worth repeating again.

As part of my Vistage worldwide membership I receive their updates on the economy, and the CEO Projections for 2019 caught my attention. https://www.vistage.com/demand/2019-growth-projections-pdf-form/ It seems that CEO confidence in the economy has continued to decline into this year. Although CEOs expect revenues to rise and even profitability to improve for now, they see economic headwinds building and feel the pressure of rising wages and unfilled positions. “The challenge for CEOs in 2019,” according to the report, “is figuring out how to maintain growth in the face of a potential slowdown. In the March 23^rdWall Street Journal it was reported that investor anxiety over the world economy has increased and there are concerns that this may be the start of a consistent downturn.

Recent headlines from the Wall Street Journal indicate that the economy is slowing down. For example:

August 12^th“The Turn in the Yield Curve”
August 15^th; “Stocks, Bonds Flash Warning Signs”
August 16^th“Consumer Spending Helps Offset Decline in Manufacturing Output”.

If you couple these reports with a look at some of the longest economic expansions in the United States since 1900, you can see that there probably is some reason for concern:

The U.S housing bubble lasted 74 months (November 2001–December 2007)
World War II lasted 81 months (September 1938–September 1945)
Reaganomics lasted 93 months (November 1982–July 1990)
Vietnam lasted 108 months (February 1961–December 1969)
The Tech bubble lasted 122 months (March 1991–March 2001)
Our current economic expansion, which started in June of 2009, is currently 134 months long, the longest in U.S. history.

Based on the current length of this expansion and the CEO Confidence Index and current headlines in the Wall Street Journal one might think we are looking at a slowdown in the economy sooner rather than later. We do not know exactly when, but a correction in the economy is coming. As I interact with owners of small to mid-market businesses I have noticed that they are feeling anxious over the uncertainty.

The good times can often make us complacent. I would like to suggest business owners embrace this uncertainty and choose to prepare now. Waiting to figure out what to do until the slowdown arrives is not the best approach. The Vistage report recommends preparing for what is ahead by focusing on these five areas, Leadership, Talent Management, Customer Impact, Improving Operations and Managing Your numbers.

Leadership:Leadership is hard even in the best of times. In order to build a strong culture of the right people working effectively and efficiently, you need to be a strong leader. This requires clear communication on your part. Your employees will want to feel your confidence that the organization has a plan and can weather a downturn. It is important to open up the channels of communication to forestall speculation because what your employees do not know can hurt the organization. Knowledge prevents misinformation and disinformation.Communication and follow through increase trust; work on building trust throughout your organization.
Talent Management:Hiring and retaining talent is one of the major issues that business owners are facing today. As a business, you have to retain the good people you have and hire additional great people from a reduced talent pool. How do you do that? By developing a strong culture and providing a great work environment Employee development is key, and so is vision and direction. Employees want to be a part of something bigger than themselves. Clarifying where the company is headed and having a plan to get the business there, will not only help to retain your good employees but will also attract other good employees.
Customer Engagement:Business owners often wait for their customers to contact them, which is a mistake. Proactively develop the relationships with your customers—and do not wait for a slowdown to do so. The time to communicate with your customers is now, not when your business is struggling. Revenue growth is a proactive activity, meaning that if you want sales to improve, you have to be communicating more with your current customers, past customers and potential customers.
Focus on Improving Operations:How can you make your current operations more effective and efficient? During good times businesses tend to build more complexity into their systems and processes (if they even have systems and processes). Start thinking about how to streamline operations, reduce waste, and get all of your employees contributing to the bottom line. How can you add more value to the value stream in your business? How can you make all your processes and procedures more linear?
Manage the numbers:The numbers drive everything in your business; you need to know and understand them. Business owners need to manage their cash flow and understand the key drivers of cash in the business. I run into far too many business owners who are not paying attention to their financials. Some review their P&L and balance sheet on a somewhat regular basis, but few use them as a comparison tool and even fewer actually produce a cash flow statement to understand how cash is moving in and out of the business. Start to build cash reserves in your business now. Get to know your banker and start building the relationship now if you have not already done so.

An economic slowdown is coming. The question is when it will happen and how long it will last. The various aspects of your business are like links in a chain, and one weak link can make the entire chain weak. Now is the time to strengthen the links in your business chain to ensure you can manage your way through a downturn. Focus on these five areas to make significant improvements and be ready for when the economy slows down.

We are organizational development experts and we focus on helping small to mid-market companies strengthen all the links in their chains, reducing waste and adding more value to the value stream. This increases efficiency and effectiveness, improving bottom line results. Do not wait. Start preparing your business now. We can help. Give us a call: 503-312-3145

mailto:garyfurr@garyfurrconsulting.com

Books by Gary Furr Available on Amazon:

It’s Not Hard, It’s Business: 10 Keys to Revenue Growth

Make Your Banker Happy: 10 Keys to Unlocking a Good Relationship with Your Banker

References:

Vistage Research, CEO Projections for 2019: https://www.vistage.com/demand/2019-growth-projections-pdf-form/
U.S. Bureau of Labor Statistics
U.S. Bureau of Economic Analysis
Internationalbanker.com
Investopedia
Patrick Bet-David: The Next Market Crash, YouTube November 2018

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Business Doesn’t Have to Be So Hard

August 13, 2019 | Business Growth

When I was a teenager, my mother and stepfather got divorced and my mom and I moved to a mountain community and lived in a cabin that my aunt owned. We lived there while my mom ran a bakery that she had purchased with the proceeds from her divorce. The mountain cabin had no insulation, and the only heat source was a large floor heater on the first floor. On cold winter days I used to stand over the heater to get dressed because the house was so cold.

My mom worked very hard at the business she had purchased. I admired her hard work but I still don’t understand why she bought a business that she knew nothing about. She struggled every single day to make it work. She learned how to make bread and donuts from the baker who came with the bakery. I learned how to wash sheet pans.

My mom spent many late nights trying to figure out how to make money and pay her bills, and we had very little left over for us. I recall eating vegetable soup night after night, so much so that for many years after I grew up I would not eat vegetable soup. I think in those formative years I vowed not to be poor when I grew up. I have learned since then that business does not have to be so hard, but it can be very hard if we do not have the business skills beyond our technical skill set to make the business a success.

The tough years my mom experienced trying to make her business work, the pain she went through, the tears she cried, and then watching her eventually go broke convinced me there had to be a better way. It is what has driven me to succeed in my own career and also to take that experience along with my MBA in organizational development to help business owners understand and learn the business skills necessary to grow and sustain a successful business. It is one of the reasons I wrote the book It’s Not Hard, It’s Business.

I am not implying that your business will not be hard work, but it can be so much more enjoyable and easier if you will learn the skills necessary to ensure your success. You do not have to go it alone. Hire a mentor or a coach to assist and advise you and hold you accountable to a higher level. Then watch your business grow.

Give us a call. We are in the business of helping business owners grow and take their businesses to the next level. 503-312-3145

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THE 10,000-HOUR RULE

August 6, 2019 | News

In Malcolm Gladwell’s 2008 book Outliers,he coined the term “the 10,000-Hour Rule” in which he explained that to become an expert in almost any field requires 10,000 hours of practice. Gladwell provided examples such as the Beetles, Bill Gates, Michael Jordan, and others whom after practicing for 10,000 hours became experts in their fields. The rule was appealing due to its simple cause-and-effect relationship

The original idea is the work of psychologist Anders Ericsson, who published a paper in 1993 in which he and his colleagues reported on their studies of 40 violinists in Germany who had put in 10,000 hours of deliberate practice by the age of 20.

Unfortunately, Mr. Ericsson says that Malcolm Gladwell got it wrong and oversimplified the concept. He says that there is nothing special about 10,000 hours, which was just a nice round number. According to Ericsson, the actual number of hours required to become an expert varies depending on which field you are in.

However, Gladwell did point out an important point: Becoming accomplished or an expert in any field requires a lot of effort and hours of what Mr. Ericsson calls deliberate practice. It may not be 10,000 hours, but it does take a lot.

This brings me to the point: We become good at what we practice, whether it’s positive or negative. Lately I’ve been doing a lot of research and writing about distraction, so let me give you the bad news. If you practice distraction on a daily basis (and you know there are many opportunities available to do so), you will become very good at it. The law of practice is that we become good at whatever we practice. (For more on this, read Gladwell’s book or the research in Dr. Ericsson’s book Peak: Secrets from the New Science of Expertise.)

It’s time to be honest with yourself, because dishonesty only hurts you. Are you becoming an expert in distraction? If so, it is getting in the way of your productivity, which is having a direct effect on your level of success. To be highly productive, you must eliminate distractions.

Want to be more productive and grow your business? Give us a call. We are experts in business and will help you get highly focused to generate great results: 503-312-3145

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Make Your Banker Happy | Bonus Chapter

July 30, 2019 | Make Your Banker Happy Book Chapters

[vc_row css=”.vc_custom_1548289356400{background-color: #bcbcbc !important;}”][vc_column][vc_single_image image=”4890″ img_size=”full” alignment=”center”][vc_column_text css=”.vc_custom_1753494622936{padding-right: 19px !important;padding-left: 19px !important;}”]In this chapter I cover some of the major issues that will undermine your relationship with your bank and your banker. Consider yourself warned.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=””]

Bonus Chapter: The Not So Good, the Bad, and the Ugly

In addition to the ten keys to making your banker happy, the bankers I interviewed offered some insight into the issues that give them pause. Consider these pointers as things you should avoid if you want to cultivate a good relationship with your banker.

Hubris

Sometimes business owners think they can handle issues without getting any help or guidance, or they choose not to take their banker’s advice. Sometimes pride and ego get in the way of common sense. Any sign of arrogance or hubris on your part is a red flag to your banker. Do not let your ego get in the way of your success. Remember: Your banker is there to help you. He or she wants you to be successful, but you have to be open to input and guidance. Your ego needs to be checked at the door if you want to be successful.

I have run into a number of business owners whose ego has gotten in the way of listening to not only their banker but also consultants and other advisers trying to help them. They think they can do it themselves, but if that were the case, they would have already done so and they would not be in their current predicament.

Success requires advice and guidance. Not only do you risk your relationship with your banker if you choose not to listen, you risk the ongoing success of your business. Rarely is anything of great significance accomplished alone; it always takes the help of others.

Business owners often are so caught up in the day-to-day of their businesses that they cannot see what is really going on. Input from another source, one without emotional involvement, is invaluable. Sometimes those on the outside can see more clearly. There is no need to let ego or hubris get in the way of seeking help. Just think of professional athletes who are at the top of their game. They still have multiple coaches to help them get better. They do not settle for the status quo, and neither should you.

Dishonesty

When bankers were discussing customers whose businesses are not performing well, the issue of dishonesty came up. Unfortunately, some business owners intentionally provide inaccurate financial statements to try to make their business look like it is doing better than it is. This will kill your relationship and trust level with your banker and the bank. There is no room for dishonesty in any of your business dealings, including with your banker. Integrity is paramount if you want to have a long-term relationship with your banker.

Lack of Understanding About Risk

Risk is a big issue with bankers. They want their customers to understand the risks of their investment decisions, and they want owners to discuss their plans with the bank before acting on those plans when it affects the bank’s interest. Taking unnecessary risk will create concern for your banker. They are there to help you manage the risk and not endanger their investment in you and your business.

It is a banker’s job to understand risk; my advice is to listen to them. Of course, a well thought out, comprehensive business plan, good values, clear direction, and goals will all help to reduce risk as well. Staying in compliance with your covenants and the necessary laws will also reduce risk. Paying attention to your financials on an ongoing basis goes a long way to reduce risk. Learning to maximize value will help to minimize risk for you and your banker. As a business owner, you should be well versed in risk management.

Taking Too Much Out of the Business

This is a common problem with business owners who are trying to avoid paying taxes or those who do not understand cash flow. A few bankers mentioned that some business owners take too much out of their business in the form of owner’s draws or dividends, putting the business at risk should things not turn out as planned. In that case, the owners need to come back to the bank to borrow additional funds. Bankers are concerned about business owners who are taking too much profit out of the business and are not building wealth and retained earnings. Remember that bankers look at retained earnings on your balance sheet to determine your ability to borrow.

According to the bankers, allowing for taxes at 30 to 40 percent and then a little more for lifestyle and return on capital to the owner is good business practice. It is important to communicate with your banker what this target percentage is. When dividends exceed 100 percent of profits, there is a lot of explaining required.

It is also imperative that you do not chronically overdraw your deposit accounts. Rare instances are okay and bankers understand them especially if there is an email from you saying you are sorry and that you made a mistake. But if this happens more than two to three times a year, it suggests that your internal controls are not adequate, and that will add strain to your relationship with your banker.

Bankers are notified first thing in the morning each time one of their customer’s accounts is overdrawn. These issues have a high degree of visibility since they are technically short-term extensions of unsecured credit. Then they have to spend a portion of their morning reaching out to you to figure out when a deposit or transfer will be made to cover the NSF items; this is a surefire way to kill goodwill at the bank.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Make Your Banker Happy

10 Keys to Unlocking a Good Relationship with Your Banker

The various aspects of your business are like links in a chain, and your banker serves as one of those links. Because any chain is only as strong as its weakest link, it’s vital to develop an excellent working relationship with your banker, even to the point where your banker is a trusted advisor. In this book, a leading consultant who helps his clients generate dramatic results you will show you the keys to unlocking a good relationship with your banker.

As a business owner, your relationship with your banker is essential to your success. Follow our series on the website and get your desktop reference copy from Amazon.[/vc_column_text][vc_single_image image=”4854″ img_size=”full” alignment=”center”][vc_column_text]

Get Your Copy

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