Wednesday 30 April 2014

Failure: Dark Path or Bright Future?

Ten years ago I had my first up-close experience with business failure. I was consulting with a small business owner who had been in business for 25 years. Unfortunately, by the time he called me in to help, 25 years of small failures had built up inside of him with no place to vent or dissipate, and he was emotionally "over" the business. And it showed ... his profitability was in the toilet.

I tried everything I knew to revitalize the business: sales programs, financial reorganization, marketing programs, and employee programs. But in the end, there was no changing my client's broken spirit - it trickled down to the 30 employees and hundreds of customers, derailing every program we implemented.

He made the difficult choice to sell the business for a fire-sale price and walked away with very little.

I felt devastated by his loss. Interestingly, when the dust died down, he felt free. Facing failure head-on and conceding defeat allowed him to finally move on with his life. 

Business Failure
My client was done. He was no longer engaged in his business. He just wanted out, and after selling the business he was happier than I had ever seen him before. Shortly thereafter, he began again, building another small business that was a better fit for his interests and has flourished ever since.

By facing failure head-on, he was able to lose his baggage and start something fresh, new, and infinitely more rewarding than what he had before.

Next time you feel afraid of failure, consider whether failure could equal freedom and new opportunity. Is there something that can only be achieved via the dark path of failure? What bright future is waiting for you?

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.

Tuesday 29 April 2014

Why Long term Unemployment Persists

With the economy improving, why does long term unemployment still afflict a large portion of the workforce?  The Who (classic rock old guy group, now known as "Who's Left?") sang a song with the lyrics, "I hope I die before I get old."  You may not die before you get old, but your career almost certainly will.

Some personal disclosure is in order.  I am fifty-five years old.  I'm not a young whippersnapper / buck / punk (pick your old guy euphemism) lecturing you on how you just won't change with the times.  I am eligible for the super cheap IHOP breakfast special.  The waiters know me at Bob Evans.  I take enough prescription drugs that I'm considering one of those plastic old people pill caddies while I still have the mental capacity to use it.  I've got street cred as an old guy.

To prove my point about unemployment, let's do a virtual experiment together.  Get our your checkbook - jeesh I am an old guy.  Login into your e-banking software and schedule a payment for $250K.  You are going to place a bet.  You are going to pretend to be a business owner hiring a new employee for a tech job.  You are betting $250K on the person you hire from two potential candidates.  Pick the better candidate and get your $250K back plus more.  Pick the wrong one and lose your $250K.  So you don't have $250K to bet? That makes you just like most business owners.  We don't have it to lose either.  Welcome to the gamble business owners take every day hiring new employees.

You have two candidates, who appear equally qualified.  Neither is a perfect fit for your job, but from their resumes, either seems able to grow into the position.  Now you interview them and learn that one candidate is thirty-five years old and the other is fifty-five.  On whom shall you bet that $250K that you don't have?  Which one seems most adaptable to new skills?  You will hire the younger person one hundred times out of one hundred.  The economy does the same.

This doesn't seem fair?  Fair won't matter to you when $250K of your personal savings is at risk.

I like to think of myself as tech savvy and willing to learn new technologies and methods.  Maybe I even really do possess those traits.  However, I am one data point in an economy of hundreds of millions of data points.  My individual traits matter little in a job search.  I carry the statistical baggage of all fifty-five year olds.  I am a walking compendium of old guy characteristics that would eliminate me from most jobs without even an interview.

Maybe, we need a federal program to eliminate discrimination against old guys to make the job search game fair.  Before chasing the "fair" concept off a cliff, consider the following example from my wife's career.

She works with a man in his fifties, who has tens of years of computer experience.  I believe he was a programmer earlier in his career and then went on to teaching computer science in high school.  Now he is back as a programmer on a government contract.

He regales his younger colleagues with opinions of how EDLIN is far better than the current crop of of text editors.  Remember EDLIN?  If you do, you probably carry an AARP card.  EDLIN was the original (I think) text editor in MS-DOS - back about 1984.  With EDLIN, you edited text files one line at a time.  Yes, I'm that old that I used it.  It sucks compared to anything you might use in the 21st century.  The EDLIN turd was flushed about 1986 in favor of the MS-DOS text editor, imaginatively named EDIT, with which you could edit whole text files at one time.  What a technology miracle!

The qualities of EDLIN versus anything else really don't matter.  What really matters is the message this guy is broadcasting to his younger colleagues, which is, "I'm old and I can't change."  Maybe they mentally insert the word "won't", for "can't."

This guy's contract will surely end as do all government contracts. As the employee of a government contractor, your employment is contract to contract.  When one ends, you look for another one.  If your company doesn't have a position for you, you move on to another company.

Most people find new jobs by networking with colleagues from prior contracts.  What will happen when he goes out job hunting?  All of his current colleagues think of him as old and not adaptable.  Do you think they'll recommend his hire for new positions?  He is one more lead bar, that I get to carry around in my old guy career baggage.  He's a datapoint equal to mine.  Another brick in the wall we old guys can no longer hurdle in the job market.

Do we really need a federal regulation to get this guy his next job?  He's likely not productive in his current job.  Shall we curse another employer with his employment?  The economy is giving us the answer in the form of the economic reality of long term unemployment.   The economy doesn't value and won't pay for experience not relevant to today.  A really great EDLIN professional isn't in much demand.  Thus, we have persistent long term unemployment for people over fifty.

Sure, this is crappy news for us old people, but you can't solve a problem before defining it.  The problem is that our experience from twenty-five years ago has little value and probably is even a negative factor today on a resume.  Employees get paid for what they bring to a business now, not what they brought twenty-five years ago.  Old people like me may find this hard to believe, but the tech knowledge from twenty-five years ago has next to no value today.  Yessiree sonny, we know that a hard drive has platters that spin beneath read / write heads.  That doesn't matter in a world moving to solid state storage.

Here are some old guy job search tips.  First, don't talk about the good ole mainframe days and how cloud computing is really just a return to the mainframe model.  That's largely true, but your resume will go to the shredder anyway.  You think you're exuding understanding and perspective.  Your younger potential boss pictures giving you CPR in the lobby.

Second, get everything that happened pre 21st century off your resume.  No one cares that you were the senior director of DOS application development.  What can you do now?  Do you have today's important certifications?

Third, talk little (very little) about what you've done and a lot about what you can do for an employer today.  The words "extensive experience" should never pass your lips.  Those words scream out "past" not "future."

Last, and this is a great interviewing tip for all ages, use my favorite NFL employment metaphor.  Tell a potential boss that you are a great left tackle.  A left tackle is the protector of the quarterback.   The boss sees himself as the quarterback.  You are telling a potential boss that you have his back.  You aren't looking to sack him.  OK, this might not work with female bosses.  I don't have a good female boss metaphor.  I don't think the term, BFF, works in an employment setting, but maybe my still normal testosterone is getting the best of me here.

Thanks for reading!  I promise to be back more often after this most recent and challenging tax season.  For real tax and accounting advice, please visit the main S&K web site at www.skcpas.com.  Also like the "How to Screw Up Your Small Business" page on Facebook.  I solve all the world's business problems there daily.

Until next time, let's do it to them before they do it to us.  Damn - another old guy cliche.  Time for my Geritol and a nap.

Saturday 26 April 2014

Exercise Book Making Machine for set up Small Business at Home Price Manufacturers

Exercise Books making and supplying orders is a very good Home based small business idea.


Demand and Market of Exercise Books:
Exercise Books are very essential thing in schools, colleges, offices, courts home and its demand is found all throughout the year. With the Exercise Book Making Machine you can make various types of Exercise Books like plain Exercise Book, Science Practical Exercise Book, Geography Practical Exercise Book etc. and can supply orders in local market.

How to make Exercise Book with Exercise Book Making Machine:
At first you have to buy rim paper from the market. This paper is available in cheap price in the market of Baithakkhana and Rajabazar in Kolkata. Then you have to cut the paper in indicated size with Paper Cutting Machine. You may use Ruling Machine to draw lines on plain papers. You may use Counting Machine to put serial number on Exercise Books. You can use various cover pages also. Now you have to stitch the Exercise Book with Stitching Machine. You may use Hardpress Machine to press the Exercise Books.
It needs 1 to 2 hp motor and 220 volts to operate the Exercise Book Making Machine.

The price of the Exercise Book Making Machine:
The price of the 30 inch motor operated Cutting Machine is approximately Rs.1, 25,000. The price of the Ruling Machine is approximately Rs.80, 000. The price of the Stitching Machine is approximately Rs.30, 000 and the price of the Counting Machine is approximately Rs.30, 000.

Where to buy the Exercise Book Making Machine/ Exercise Book Making Machine Manufacturers in Kolkata:-
Bharat Machine Tools Industries,
61, Ganesh Chandra Avenue,
Kolkata-700013

11 April, 14 KK

Friday 25 April 2014

Getting Stuff Done - for Super-Creative Entrepreneurs

get stuff done virginia ginsburg
Entrepreneurs are, by nature, full of ideas.

They think big, they act big, and they do big things.

But sometimes (OK, lots of times), building a business is about getting things done - not dreaming of new things to accomplish. This is a constant point of friction for my clients: how to balance the thrill of developing new ideas with the "get-it-done" attitude needed to bring great ideas to fruition.

Here is my solution: 

The most important thing for entrepreneurs to do is to keep both an 'Action List' and an 'Idea List.' The fact is that entrepreneurs are driven to come up with new ideas - sometimes several a day.

To be productive while keeping their creative edge, I ask them to create a weekly "Action List' based on some form of a strategic plan. These are items that they have prioritized for the week.

On a separate "Idea List," I tell them to write down every single great idea they have during the week. This is where they can put ideas that come to them in the middle of the night, while they're out running, in the shower, or while procrastinating on the items to be done on the "Action List?" ... come on, we all do it!

Together we review the "Idea List" at the end of each week and decide if any of the ideas need to go on the next "Action List," of if they should be filed for later (i.e. monthly, quarterly or annual) review.

This system accomplishes two things:

1. It keeps entrepreneurs accountable to specific actions that must take place to build on their vision.

2. It allows entrepreneurs free range to create and grow mentally, knowing that there is a specific place to hold their ideas until they are ready to build on them.

What do you think? Would this help you get more done?

Give it a shot, and let me know what you think!

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.

Thursday 17 April 2014

How to Scale Your Business: Get Out of the Way

Van Andel Institute Michigan
I was fortunate enough to meet with David Van Andel, Chairman and CEO of the Van Andel Institute, a medical and scientific institute in Grand Rapids, Michigan that was founded in 1996 by philanthropists Jay and Betty Van Andel with an estimated endowment of $1B. We discussed the state of medicine, healthcare and business, and I told him about the state of small business and entrepreneurship as I see it today.

David is the son of Jay Van Andel, great American entrepreneur who co-founded Amway, one of the world's largest direct selling businesses. After 55 years, the business continues to grow and expand throughout the world, employing more than 15,000 people.

The key in building an organization like Amway, David told me, was in recognizing that while the business could be based on personal values and individual industry, if the founders didn't expand their circle and trust others to do the work, they would have a much smaller impact. This is something that David integrates into his leadership of the Van Andel Institute.

In his book, An Enterprising Life, Jay Van Andel says that from the very beginning he and his partner, Richard DeVos, hired people to do things they couldn't do themselves, and they quickly recognized that this was an asset compared to their competition.

jay van andel amway
"(We learned) to stay out of the shop and let other people do what they do best," wrote Jay Van Andel. "Delegating responsibility is essential - even for some of the most important work."

What I observe in many entrepreneurs is that they are somewhat stuck in the small business mindset that "if I don't do it, it won't be done right." This perspective makes meaningful growth virtually impossible, because the company can only scale so far around a single human being.

An entrepreneur who wants to build something large needs to be able to scale his business across multiple people, and to put leadership, authority and opportunity in employees' hands.

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.

Tuesday 8 April 2014

What Strategic Planning Looks Like for Entrepreneurs

Strategic Business Plan Entrepreneur
At some point in the entrepreneurial growth trajectory, the founder notices that while the seat-of-the-pants approach has worked thus far, some strategic planning will support further growth. But strategic planning looks different for each entrepreneur - when and how you do it depends on your personality, your employees, and your market.

Here are some case studies of when and how some entrepreneurs have integrated strategic planning into their enterprises: 

Strategic Business Plan Entrepreneur
10-year Old Consumer Product Company: I was called in when the owners started feeling as if their business is a fast-moving car, and they were barely jogging alongside.

After four months in the strategic planning process, we had broken the business into 4 reasonable sections that require strategic planning. We now have four weekly meetings each month; each one focuses on a different aspect of the business (finance, product, business development, marketing). In doing this, we have created structure for the strategic planning process and are beginning to facilitate better decision-making.

The client has recently encountered several strategic partnership opportunities since we created this structure, and we can already see a big difference in terms of the ease with which they can pursue opportunities and make critical decisions.


Strategic Business Plan Entrepreneur
3-year Old Internet Start-Up: I have worked with this company since its first consumer launch 3 years ago, when they needed to figure out how to acquire customers. In the process of developing our customer acquisition strategy, we adjusted the product strategy and conducted a complete relaunch at the end of the first year.

Now in our third year, the product model we developed is proving itself out, and our customer acquisition strategy is humming along. The company is approaching cash-flow positive status and is raising another round of financing to expand its product line and achieve profitability. 

Because this is a start-up, our strategic planning is focused on specific objectives rather than company-wide initiatives. We are constantly reviewing and adjusting our customer acquisition strategy while also building out strategic plans for new products and our fundraising process. Our strategic planning process is still very nimble as we ramp up company operations.


Strategic Business Plan Entrepreneur
30-year Old Software Company: This company is led by a CEO engineer/programmer who recognized he needed more strategic planning on the "business" side of his business. While the software was doing very well among people who know about it, there were almost no new sales leads entering the company.

He hired a COO and engaged me to support her in building out a sales and marketing strategic plan. The COO and I have worked together over the past 3 years to create a strategic sales and marketing plan that has led us to gradually add a PR firm and sales lead team and hire a new sales manager. We are currently in the process of hiring a digital marketing firm. These additions have made a significant difference in the company's sales presentations and has significantly increased the number of new sales leads coming in.

Our strategic planning process involves creating an annual sales and marketing plan. While we adjust the details throughout the year, the major initiatives listed above have all been planned and budgeted in advance. 

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.

Saturday 5 April 2014

Surgical Bandage Making Machine for set up Small Business

Surgical Bandage Making Machine for set up home based small business:

Demand and Market of Surgical Bandage:
The demand of Surgical Bandage is found all throughout the year. With the Surgical Bandage Making Machine you can make Surgical Bandage and can supply orders in hospitals, nursing homes, medicine stores, health centers, clinics. Remember, before starting this business you need Business License.

How to make Surgical Bandage with Surgical Bandage Making Machine:
The cloth which is used to make Surgical Bandage is available in cheap price in the market of Basirhat and Barobazar in Kolkata.
At first you have to make the cloth germ-free with some process. Now roll up the cloth. in the indicated place of the machine. You have to cut the cloth in indicated size you want with Cutting Machine. Now start the machine.
It needs ½ hp motor to operate the Cutting Machine. It needs 1 hp motor and 220 volt to operate the Surgical Bandage Making Machine.

Price of the Surgical Bandage Making Machine:
The price of the Surgical Bandage Making Machine including motor is approximately Rs.80, 000 and the price of the Cutting Machine including motor is approximately Rs.30, 000.

Where to buy the Surgical Bandage Making Machine/ Surgical Bandage Making Machine Manufacturer in Kolkata:
Bharat Machine Tools Industries,
61, Ganesh Chandra Avenue,
Kolkata-700013,

4 April 2014 KK

Tuesday 1 April 2014

New Products: How to Evaluate Ideas

virginia ginsburg idea evaluate
Every entrepreneur starts with a great idea, and, chance are, successful entrepreneurs don't stop having more and more ideas over time.

The challenge for a true entrepreneur is not actually coming up with new ideas, but managing the stream that assails her on an everyday basis. How does she decide which ideas to pursue, and which to ditch?

When working on a strategic planning process with an entrepreneur, I'm always seeking ways for us to quickly churn through their ideas to identify the promising opportunities from the interesting dead weight. Here are some ways to evaluate new product ideas:

Basic Research: Once you have an idea, do some basic online research to determine how people are currently meeting the need you want to fill. Get a feel for how much other solutions cost, and see if you can find out who their customers are. You also want to understand some of the costs involved in developing the product. To get a broader field of vision, enroll some freelancers to dig around for you. You can find people who will spend 1-3 hours doing web research for you on Fiverr for just $5 a pop.

Interviews: If you can identify that there is a need to be filled and feel confident you can fill it, start asking around. You want to speak with potential customers, employees and competitors to find out what's really going on. Use resources like Elance to speak with people who have worked in your field. Also look for people you could hire to help you build your product. Pay them for an hour to interview them to learn everything you can about the marketplace, costs, problems, sticking points, etc.

Financial Model: At this point, you should be able to create a rough financial model. You need to include your pricing, your customer acquisition model and number of customers you can reasonably convert, and major expenses. Don't get stuck on the details here - you just want to get a feel for what will make this model work (if anything). Play with the model and determine how much wiggle room there is for increasing your margins.

Evaluate: Once you have all of your data, take a step back and consider the following 3 questions:
  1. Can you find and connect with customers for this product?
  2. Can you reasonably build a competitive product based on your access to talent, the competitors and costs? 
  3. Can you make a healthy margin on this product?
Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.