Tag Archives: management

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On Avoiding A Cash-Flow Crisis

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On any given day, a Freelancer or small business owner might find him/herself in the suffocating grip of a possibly game-changing marketplace challenge. Anything from flood-producing rains to a wily competitor can cause customers to vanish and profit margins to shrink. It’s a nightmare scenario and, obviously, you must do whatever possible to avoid the problem. Stepping up your marketing with a clever campaign and catchy message, to nurture customer relationships and promote your brand, may be an effective response but be aware that money has a role that goes beyond the well known advantage of being a defense against disaster. 

An effective defensive strategy is about more than simply having enough money to outrun your problem. The key to handling money is to treat it as an asset and take steps to manage your cash by following its flow through your business. Do that by studying your sales revenues and accounts receivables, that is, money that flows into your business and also your accounts payable, meaning, the money spent on business expenses such as rent, utilities, payroll and inventory. 

The benefits of vigilant cash-flow management practices are not to be underestimated. According to 2023 data produced by Minneapolis, MN based U.S. Bank, poor cash management and insufficient cash-flow are implicated in 82% of business failures. Poor cash-flow shows its teeth in several ways, including:

  • Cash-flow gaps A cash-flow gap is a frightening emergency that occurs when a business pays expenses, for example, inventory or supplies, but does not receive the expected inflow of money within a reasonable time-frame. A shortfall is a warning that the business needs more cash, in a hurry. Maybe you’re waiting for a customer or two to pay invoices? Consistently expanding cash-flow gaps undermine working capital that can leave your business strapped financially, potentially putting it in a dangerous position if not addressed.
  • Managing seasonal revenue fluctuations  Seasonal businesses frequently face significant cash-flow challenges. A typical example is that of restaurants that operate in summer resort locations. During the peak season of Memorial Day (last week in May) through Labor Day (first week in September), these restaurants welcome an endless stream of customers, who pack the premises and overwhelm staff. Revenues are robust while the peak season lasts but in the off-season, greatly diminished revenues can trigger cash-flow gaps that cause the business struggle to maintain financial stability.
  • Opportunities beyond reach Expecting the unexpected, being agile and ready to act, is among the most valuable leadership qualities of a business owner, whether it’s the owner of a neighborhood dry cleaner to the CEO of a multi-national conglomerate. A business needs to be in a strong financial position to take advantage of interesting opportunities as they arise, whether that’s buying out a competitor, opening a new location, or launching a new product—the ability to act quickly usually makes all the difference. Without sufficient available cash, your growth and expansion plans will be hobbled, causing you to miss the boat on potentially lucrative opportunities.

Loans and credit cards are not the only options

When looking to resolve a cash shortfall, many business owners think of contacting their bank to discuss options for a business loan or credit card. Your business banker is there to support you in many ways but finding a solution to your cash crunch might more logically begin with your bookkeeper or accountant. S/he may not warm to the idea of you taking on debt associated with a loan or an increased line of credit; s/he may be more inclined to recommend that you become more vigilant about your entity’s cash management and make a modest investment in a cash management software package instead.

The power of cash management: cash-flow and forecasting

The purpose of cash management is to ensure that your business is able to pay expenses (accounts payable). Cash-flow management tracks how much money enters the business bank account—e.g., through sales revenue, accounts receivable payments, interest from investments—and leaves the business bank account for accounts payable. Cash management procedures position your business to both monitor expenses (and minimize or eliminate unnecessary expenses), make prudent financial decisions and, hallelujah, create and maintain a healthy cash reserve that will insulate your business from the financial instability. You’ll get your financial house in order and attain the means to pursue business opportunities that can further enhance financial stability.

Cash management software works by shining a light on money problems so that you can take corrective action in a hurry. Cash management software enables the user (you and/or your bookkeeper) to quickly and accurately monitor, analyze and pinpoint cash-flow problems. So, persistently late payments of customer invoices that cripple business cash-flow will be brought to your attention and signal that steps to speed up accounts receivables should be taken. Other cash-flow optimization benefits will likewise be made clear from the data that emerges from your cash management software, including the ability to accurately determine the amount of cash needed to cover accounts payable obligations and create a reasonable forecast of your entity’s future financial health.

Good cash management software will also have cash-flow forecasting capabilities to help you manage cash in the future, by creating “what-if” scenarios that let you evaluate various potential outcomes simultaneously. You’ll also be able to calculate expenses and ensure there is enough incoming cash to pay up. The best cash-flow management software will also have cash-flow forecasting capabilities to help you manage cash in the future and make the future of your business entity bright. Click link to learn how you can get started. https://www.trustradius.com/cash-flow-management

Thanks for reading,

Kim

Image: Mother Counting Money, by Johann Georg Mayer von Bremen (Germany, 1813-1886)

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The 5 Stages of Small Business Growth

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The question that everyone who’s ever launched a business has wanted an answer to is, what is the formula, the recipe, that when followed will result in a sustainably profitable enterprise? Furthermore, how does a business owner avoid the landmines that can tank the enterprise?

In 1983 Neil Churchill (1927-2010), former Professor Emeritus of of entrepreneurship at INSEAD in Fontainebleau, France and visiting professor at the Anderson School at UCLA and Virginia Lewis, a senior research associate at the Caruth Institute of Southern Methodist University, conducted an intriguing study that examined and (indirectly) answered the question. Specifically, Churchill and Lewis examined small businesses and, despite the obvious differences that distinguish every business and every entrepreneur or solopreneur who goes into business—B2B, B2C, products, services, business model, target markets, level of owner’s expertise, experience and funding— identified patterns of success and problems that typically occur in small businesses. Unfortunately, the two were not able to write the recipe for a secret sauce, but they did identify and categorize growth stages and difficulties that can arise in those growth stages, information that is actionable and highly valuable.

You might say that Churchill and Lewis created a map that can help you find the path to success for your business idea and also help you side-step common pitfalls. I’m happy to share a few take-aways from the study and provide the link to the original research. https://site-453261.mozfiles.com/files/453261/Harvard_Business_Review_-_The_5_Stages_Of_Small_Business_Growth.pdf

While every business venture is an unique entity, with some having potential for enormous profitability and (most) others that only sputter along, hobbled by obstacles that frequently include some combination of insufficient funding, an unrealistic business model, or a limited number of customers who are inclined to purchase its products and services, there are foundational similarities throughout the spectrum of possible outcomes. In a study of a range of business types ,one that documents which actions or circumstances encourage positive results and which lead to unfortunate outcomes, patterns become visible.

First, the research showed that all businesses evolve through identifiable stages in their life cycle. Second, it was discovered that certain successes, challenges and decisions that must be made are typically associated with the different life cycle growth stages. When business owners know what to expect throughout the business life cycle, they can prepare themselves and the company to maximize what is likely to go well, if only by skillfully navigating through what is likely to cause problems.

In other words, a company’s development stage determines the leadership and managerial skill and pivotal decisions that promote success and avoid problems. The type of business that you’re operating will influence which factors will eventually appear. An awareness of the development stage of the business, as well as the most logical future plans for that stage, enables business owners and managers to make informed choices and prepare themselves and the company for the inevitable challenges. Below are typical circumstances that pertain to business owners and the entity as the business life cycle adapts over time.

The four factors that relate to the business owner:

  1. Owner’s goals for himself /herself and for the business.
  2. Owner’s operational abilities in doing important jobs such as marketing, inventing, selling, producing and managing distribution.
  3. Owner’s managerial ability and willingness to delegate responsibility and to manage the activities of others.
  4. Owner’s strategic abilities for looking beyond the present and assessing the strengths and weaknesses of the company with his or her goals.

The four factors that relate to the business:

  1. Financial resources, including cash on hand and borrowing power.
  2. Personnel resources, financial prowess, quality of strategic relationships and other human capital, particularly at the management and staff levels.
  3. Systems resources, in terms of the degree of sophistication of both information and planning and control systems.
  4. Business resources, including customer relations, market share, supplier relations, manufacturing and distribution processes, technology and reputation, all of which give the company a position in its industry and market.

Stage I: Existence

Basic survival is the objective in the earliest stage of the company. The primary goals of the owner(s) are acquiring customers, delivering the product or service in a way that satisfies customers and providing pleasant and efficient customer service.

Other key objectives of the owner(s) are:

  • Doing what is necessary to make the entity become a viable business.
  • Successfully expanding beyond one or two important customers to a much broader customer base.
  • Having sufficient capital available to finance the considerable cash demands of the start-up phase.

At this fledgling stage, the owner does everything and if there are employees, the owner directly supervises them. Systems and formal planning are minimal to nonexistent. The company strategy is to survive. The owner is the business, s/he performs all important functions. Many early stage entities never gain sufficient customer base nor product/service demand to become viable. If that is the case, the owner is forced to close the business when the money runs out. Companies that are lucky enough to survive Stage I will graduate to Stage II entities.

Stage II: Survival.

Businesses that survive to enter Stage II can be considered viable. They’ve attracted enough customers to generate the necessary sales revenue and customers are satisfied with the products and/or services offered. The most likely problem that surfaces in the transition from Stage I to Stage II is the balance between revenues and expenses. The owners’ primary objectives are:

  • In the short run, generate enough cash to break even and cover the repair, renewal, or replacement of subscription software or other services and capital assets /equipment as they wear out or expire.
  • At a minimum, generate enough cash-flow to stay in business and finance growth to a size that is sufficiently large, given our industry and market niche, to earn an economic return on our assets and labor. In other words, can you make enough money to make staying in business make sense?

Additionally, the Stage II company may have a small number of employees, often supervised by a sales manager or a general foreman. Alternatively (or simultaneously), there may be outsourcing of certain functions—bookkeeping, accounting, HR. payroll, IT network management, for example. The business owner(s) remains in charge of major decisions and the foreman or sales manager may have limited decision-making authority. Survival of the business remains the overwhelming goal.

While in the Survival Stage, the enterprise may grow in size and profitability and graduate to Stage III. Or, as many companies do, it may remain in Stage II for some time, earning modest profits on invested time and capital. Such businesses may eventually close when the owner gives up or retires. “Mom and pop” stores are in this category, as are manufacturing businesses that cannot attract a buyer for their product or process sold as they hoped. Some of these marginal businesses have developed enough economic viability to eventually be sold, usually at a slight loss. Or the entity may fail completely.

Stage III: Success.

The decision facing owners at this stage is whether to leverage the company’s achievements and strategize to grow, or maintain the stable and profitable success that has been attained. Business is good and to handle more complex functions, the first professional staff members will be hired, often a controller in the office or a production manager, perhaps administrative or sales employees may be hired as well. Basic financial, marketing and production systems are in place. Planning in the form of operational budgets supports vital business strategies and action plans. The owner and, to a lesser extent, the company managers, are advised to monitor the performance of business strategies to maintain desired profit margin.

The question becomes, will the owner(s) decide to promote growth and pursue the attainment of a substage III-G company, or will the owner(s) completely or partially step away from intensive involvement in the company and transition to substage III-D company?

Substage III: Disengagement

In the Success-Disengagement substage, the company has attained economic viability, has a sufficient customer base and product-market penetration to reasonably ensure financial success and earning average to above-average profits. The company can remain at this stage almost indefinitely, as long as a catastrophic external event (like a pandemic shutdown of business?) doesn’t erode its customer base, or ineffective management and poor decision-making doesn’t diminish its competitive abilities.

When disengagement is the choice, it is often driven by a wish to start a new enterprise, or simply to (finally) participate in hobbies and other outside interests while maintaining the business as is. If the company can continue to navigate the inevitable business environment changes, the owner can either continue in substage III-D, sell the entity at a profit, or at some point elect to once again pursue a growth trajectory. For franchise holders, this last option would require the purchase of additional franchises locations.

Substage III: Growth

In the Success-Growth substage, the owner consolidates the company and utilizes its resources to stimulate accelerated growth, typically using accumulated business cash and borrowing the amount needed to finance growth. Maintaining optimal business profitability is key, so that it will not deplete cash (the lender will be looking). Having on board talented and dedicated company managers to meet the needs of the growing business is another must-do. This second task requires hiring managers with an eye to the company’s future rather than its current condition.

The right business systems should be in place to provide the operational needs that a larger entity will require as growth proceeds. Proper budgeting and the development and execution of strategic planning is critical. The owner(s) are intensely involved in all aspects of the company’s affairs, in contrast to the disengagement stage.

If the growth plan is successful, the III-G company proceeds to Stage IV Take-off. If the III-G company is unsuccessful, the missteps might be detected in time to make a smooth landing in substage III-D. If not, a return to Stage II Survival may be possible, in lieu of bankruptcy or a distress sale.

Stage IV: Take-off

In this stage the key problems are how to grow rapidly and how to finance that growth. The most important questions, then, are in the following areas:

Delegation. Can the owner(s) delegate responsibility to the appropriate staff or Freelance outside experts to improve the managerial effectiveness of a fast-growing and increasingly complex enterprise? Further, will the action be true delegation with controls on performance and a willingness to see mistakes made, or will it be abdication, as is so often the case?

Cash. Will there be enough to satisfy the great demands growth brings (often requiring a willingness on the owner’s part to tolerate a high debt-equity ratio) and a cash-flow that is not eroded by inadequate expense controls or ill-advised investments brought about by owner impatience?.

This is a pivotal period in a company’s life. If the owner rises to the challenges of a growing company, both financially and managerially, it can become a big business. If not, it can usually be sold—at a profit—provided the owner recognizes his or her limitations soon enough. Too often, those who bring the business to the Success Stage are unsuccessful in Stage IV, either because they try to grow too fast and run out of cash (the owner falls victim to the omnipotence syndrome), or are unable to delegate effectively enough to make the company work (the omniscience syndrome).

Stage V: Maturity The most important responsibilities the owner has at Stage V is to first, preserve and encourage the continuation of the substage III-G growth and second, to retain the advantages of small size, meaning a nimble response to the economic landscape and maintaining the owners’ entrepreneurial spirit.

The organization must install a management team and operational processes that will eliminate the inefficiencies that growth can produce and simultaneously professionalize the company operations by use of tools such as budgeting, strategic planning, staff training and standard cost management systems—and do this without inhibiting its entrepreneurial qualities.

Thanks for reading,

Kim

Image: Abdul and Aisha Tedros, owners of Oasis Coffee & Tea Shop in Phoenix, AZ, ranked #11 on the Yelp Top 100 coffee shops list in the U.S.and Canada.

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Common Challenges That Impact Solopreneur Ventures

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Starting a business is an impressive achievement that’s guaranteed to make you proud, but the real victory lies in your ability to grow and sustain the venture.  A Solopreneur business owner must be both leader and manager, competencies that seldom co-exist within the same person.

Leadership skills support your ability to formulate a guiding vision for your enterprise, recognize business opportunities, devise strategies, find new customers and develop marketing plans, as well as inspire potential investors, collaborators and employees.

Management skills direct your  focus to administrative functions, as well as business operations, financial management, risk management, quality control and customer service.

While it’s recommended that Solopreneurs cultivate both skill sets, it’s probably inevitable that the average person will favor one competency over the other.  Nevertheless, it is important to hone both leadership and managerial capabilities so that you are better prepared to position the venture to overcome the challenges that visit every business, regardless of industry, annual sales revenue, or number of employees.  Discussed below are two of the five common business challenges that we’ll examine.

CLIENT LIST

How many active clients are on your roster? How many do you bill at least $1000/ month, on average? I completely understand that for a Solopreneur, every client counts and that it’s so comfortable to provide services to just one or two clients who are generous with billable hours.

However, succeeding in business means pushing beyond comfort level and actively discouraging one’s tendency to become complacent. Furthermore, depending on one or two big clients for the lion’s share of annual revenue places the business in a vulnerable position.

What will happen to your billable hours if your contact at that company moves on? There can be no guarantee that the next person will continue to send projects your way.  Be advised that the new person has Solopreneur friends with whom s/he has previously worked and it’s reasonable to believe that it will be game over for someone who’s thought to have ridden the gravy train for a number of years.

Demonstrate your leadership skills and protect your venture as you pursue potential prospects to nurture your sales pipeline.  A diversified active client list is an insurance policy.  Furthermore, growing your list of viable prospects encourages you to operate as a real Solopreneur and not just a sub-contractor for a larger entity.

MONEY MANAGEMENT

Early in the life cycle of a business, the most important money matter is simply to earn enough to pay the bills, for the business and your personal life.  On the next rung, you’ll begin to consider the amount of investment capital needed to finance upgrades that will make you and the company appear more competent and trustworthy to clients, prospects and referring colleagues and friends.

The company website must have a professional look and download quickly.  Printed marketing materials must reinforce the superior quality of your brand and communicate your expertise.  Even the look of your invoice matters.  You’ll also need enough revenue to occasionally attend conferences to upgrade your skills and expand your networking options.

BTW, to promote a predictable cash flow, it is not uncommon for Soloprenuers to take a job, whether it’s an under the radar gig such as  bartending or waitressing, or a more typical opportunity such as teaching, where one’s professional skills are parlayed into an arena other than the usual client work.

Unless you have a background in finance, consulting with a good accountant and/ or bookkeeper is the best way to ensure that your venture has astute financial management.  Meet quarterly with a bookkeeper and semi-annually with the accountant to learn how to take the necessary steps to strengthen your business finances.

I’ll return to discuss more common business challenges.

Merry Christmas and thanks for reading,

Kim

Photograph: Members of the Acorda Capoeira perform on a roof top in Rio de Janeiro (July 2016)

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Building Your B2B Consulting Practice

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Regular visitors to this blog will notice that over the past few weeks, I’ve devoted special emphasis to tactics and strategies that will help Freelancers keep our consulting practices alive and well.  Competition in the field is intensifying and clients are aware that they can be very exacting in their hiring requirements, since there is no shortage of available talent, especially in mid-size and large cities.  According to Statista, the number of management consultants has grown every year since 2012 and as of 2016, there area 637,000 management consultants working (or trying to!) in the U.S.

As we all know, ever since the late 1980s, when the concept of “downsizing” gained popularity in corporate offices and the ways to separate citizens from full-time, long-term employment became numerous, many workers who either found ourselves highly skilled but nevertheless unemployable, or who eventually tired of endless cycles of  hirings and firings (a common occurrence in the IT industry), decided to strike out on our own and exert some measure of control over our professional and economic destiny. What did we have to lose? We were already in trouble.  Manage the risk before the risk manages you.

When you’ve worked in the Knowledge Economy and find yourself contemplating whether to launch your own venture, by design or default, a solo consultancy that offers B2B services that you already know seems a simple and obvious choice.

Start-up costs are minimal—there’s nothing much to invest in for the launch, except for business cards and a website.  There’s no need to rent an office and no need to hire employees.  You already own a smart phone and some sort of computer.  At most, you might invite a couple of your unemployed coworker buddies to come in with you.  In no time, you’ll be ready to see clients and charge a pretty penny for the advice that you give. Easy, right?

Well, not exactly.  Unless you’ve worked for a consulting company that provides you with a stable of clients that know you and value your expertise and there’s no non-compete hagreement that prevents you from, ahem, stealing a few clients from your former employer and bringing them to you roster—-a time-honored and usually successful practice, BTW—you may find yourself floundering when it comes to obtaining clients.  If you’ve got a well-placed pal or two who is able and willing to divert a contract to you, you could be twiddling your thumbs for quite some time, despite the furious networking that you do and your growing social media presence.  The truth of consulting is, no one gets a client unless that client knows you and the value of your work.

The “catch 22” is that you can’t get a client without experience and you can’t get experience until you get a client.  A business plan that is in reality an extended marketing plan that encourages you to think strategically, rationally and in detail about the following items should be written. Bear in mind that your services are valuable only insofar as there is client demand.  There may be no market at all for several of your strongest competencies, alas.

  • Services for which there is demand and you have the expertise and credibility to deliver those services and prospective clients who will pay you to do so
  • How to price your services
  • How to make clients perceive that you are worth your asking price
  • Your access to clients with the motive and money to hire you
  • The need for a partner (or two) and how that person can help launch and sustain the venture

Without a pre-existing reputation in the industry, you’ll find the early days of consulting to be quite difficult. Lining up part-time employment will help your cash-flow. Teaching at the college level is always a good option because it enhances your credibility and pays well for a part-time gig.  Whenever possible, find work that not only gives you money, but also demonstrates your expertise to potential clients.

If you can become at least an occasional contributing writer to a noteworthy publication, or get articles included in a local business publication, you will enhance the perception of your expertise, as will college-level teaching of a subject related to your B2B services.  Joining a not-for-profit board that brings you into contact with potential clients and referrers who can watch you take on committee work that demonstrates your bona fides will be helpful. Becoming a mentor at a respected new venture start-up center will likewise enhance your credibility.

If you can participate in a webinar, YouTube video, or podcast, where you can elaborate on the application of your expertise and the results that you deliver, you will be able to post the link on your website and social media accounts, so that prospective clients can see you in action and hear what you know.

Those who do not have a ready stable of potential clients must work very hard and very smart to make up for that deficit, but it will not impossible to build a consulting practice that will support you financially and of which you can be proud. There are many paths that lead to a profitable B2B consulting practice and with a dose of god luck, you will find your path, too.

Thanks for reading,

Kim

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Stress Takes A Holiday

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The holiday season has arrived and with it a boatload of potential stressors, good and bad. The delight of being a party host or guest are examples of good stress (and if this is not the case, your stress management assignment begins with asking yourself why you bother?).  The process of Christmas shopping and the associated costs of time and money, along with holiday cooking and cleaning, are examples of potentially bad stress.  In this post, I offer stress management techniques that can prove to be beneficial all year round.

Time management and boundaries

The always-on 24/7 lifestyle that so many of us feel compelled to lead is a huge stressor. The ability to set priorities and boundaries is more important than ever.  In most cases, there is no need to be available for professional matters before 8:00 AM or after 8:00 PM.

In your personal life,  learn to say no to controlling people and time-wasters, even if those individuals happen to be family members.  Have the courage to acknowledge what is important to you and distance yourself from manipulative people. Unhook your feelings of self-worth from the need to “save” people.  Help yourself to achieve goals and fulfill responsibilities by making lists and schedules and allow yourself sufficient time to complete tasks.  Learn to delegate.  Accept that some tasks are low priority and may need to be removed from your list.

Anger management

Learning to handle our emotions is a lifelong proposition.  Awareness is the first step.  Be advised that all of our emotions are “justified” because that is how we feel at that time.  It is your right and responsibility to define and acknowledge the emotions you feel.  The skill set called Emotional Intelligence teaches us to refrain from allowing our emotions to overwhelm us, cloud our judgment and lead us to do or say things that may damage our relationships and credibility.

Anticipate encounters with people who you may find upsetting and rehearse your responses to words and behaviors that you may experience as hostile and disrespectful.  Role play with yourself replies that could potentially defuse a stressful conversation and allow you to put distance between yourself and the stressor, limiting contact and helping you to control your emotions.  Be mindful that some people enjoy trouble and they are constant agitators.  They crave attention and control.  Do what you can to banish these individuals from your life.

Exercise

Exercise releases into the body hormones (endorphins and serotonin) that counteract the “fight or flight” response hormones that are released when we are under stress (adrenaline, ACTH).  Exercise also improves the functioning of the immune system and in the process helps us to fight off certain diseases.  Some experts recommend that we would be wise to participate in physical activity four or five days a week, for at least 45 minutes per session. You may play a sport, ride a bike, swim, walk, do aerobics, yoga, Pilates and/or lift weights. Experiment with different types of exercise to learn what you like and do it on a regular basis.  Exercise provides physical release and reduces tension and stress, calms and clears the mind, helps us to sleep better and improves self-esteem.

Meditation

The relaxation response is enabled by meditation and other self-regulated relaxation techniques.  Meditation requires only a few minutes of your time and a private, quiet and comfortable location.  Watch a YouTube video to show you what to do.  Shut off the television and your telephone.  Choose a word or short phrase to silently repeat to yourself as you close your eyes and breathe in and out, slowly and deeply.  Meditation enthusiasts recommend that you meditate early in the morning before starting your day, or in the evening just before dinner.

Sleep

Inadequate sleep is epidemic these days and it is seriously detrimental to one’s health and ability to manage stress.  Surprisingly, sleep deprivation contributes to weight gain by releasing the stress hormone cortisol, which increases appetite.  When we are fatigued, our choice of foods is usually unhealthy and laden with sugar for an energy boost, or high fat, or salty.  The stage is then set for taking on unwanted pounds.

Being tired undermines creativity, judgment and decision-making, productivity and self-discipline.  Do what you can to get in those eight hours each night.  Be advised that caffeine and alcohol are for many the enemies of sleep and intake should be limited near to bedtime.

Nutrition

Physical, mental and emotional stressors drain the body of complex nutrients that support optimal physical and cognitive functioning.  If these nutrients are not replaced fairly quickly, coping skills diminish, decision-making ability suffers, fatigue ensues, mood and emotional control deteriorate.

Avoid the temptation to consume foods high in fat, salt, or sugar, or consume excess caffeine or alcohol, while in the midst of a stressful event.  Do yourself a favor and eat a bagel with peanut butter, a rice bowl with vegetables, a sandwich, or a plate of pasta.  Over the long-term, eat a balanced diet that supplies adequate amounts of green vegetables, fruits, proteins and carbohydrates.

Thanks for reading,

Kim

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The Stress Syndrome

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We are on the cusp of the holiday season.  It’s a special time of year but sadly, it is often freighted with challenges.  Responsibilities metastasize and usually include some combination of peeling potatoes; coring and slicing apples; ironing table cloths; Christmas shopping; writing cards; and putting up decorations. Obligations such as attending workplace or family parties can feel like a burden. The expectation (sometimes forced) to have  fun might backfire and instead cause you to feel inadequate if you’re unable to get into a festive mood. Humbug!

Despite the bright lights and parties, the stress level for most of us reaches an annual high at this time of year. The Thanksgiving – Christmas – New Year’s Eve axis can overwhelm the best of us.  It’s easy to feel lonely, or even like a failure.  Business owners and Freelancers may be faced with the realization that income projections were not reached, adding to the anxiety.

What is the antidote? I suggest that a two or three-week out-of-town vacation is the ideal remedy.  Other than buying and writing cards (which can be done while away) and taking care of a short gift list, all other stress-inducing elements could be diplomatically sidestepped. Those unable to budget the time and money to de-camp to the Bahamas are encouraged to put into motion a comprehensive stress management program.

Regardless of the season, stress is a condition that spares no age cohort or socioeconomic stratum.  School children become stressed over homework and piano lessons. Their parents become stressed as a result of a long work commute or increased job responsibilities. Please know that there is good stress, too—buying a home, going away to college, getting married and starting a new job bring into your life stress that emanates from positive events.

The sources of stress will vary, but the need to manage those stressors and the related hassles and anxiety is constant. Giving some thought to how and why the stressful situation occurs is Step One of your stress management program and brainstorming possible changes that might remove or diminish the stress is Step Two.  Improving one’s ability to manage stress by developing coping skills and learning to relax is Step Three.

Stress management is a multi-disciplinary process that includes managing time, adequate sleep, good nutrition, exercise, anger management and relaxation techniques.  Next week, I’ll return with some specific suggestions.

Happy Thanksgiving and thanks for reading,

Kim

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Becoming Agile

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Agile innovation first swept through the information technology sector and greatly increased success rates in software development, improved quality and speed to market. Agile management techniques are now spreading to many other industries and Freelance consultants ought to be aware of what is involved, both as regards the ways our clients and prospects may buy into agile practices and how we might incorporate certain aspects into our own consultancies.

More than in the recent past, business ventures large and small operate in a highly dynamic environments.  Customer priorities and technological advancements are known to change rapidly.  Keeping a finger on the pulse of new developments and innovating or adapting  as necessary  the line of products and services offered,  marketing buzz words used in marketing content, sales strategies employed or distribution channels utilized are how organizations thrive and grow.  But what does agile mean in practice?

Agile does not mean doing the usual thing, only faster. Darrell Rigby, a partner at Bain & Company consulting and Hirotaka Takeuchi, professor of strategy at the Harvard Business School and CEO of Scrum, Inc., a consulting and training firm, describe agile business practices as containing the following elements:

Scrum. Creative and adaptive teamwork that solves complex problems.

Lean development.  Focuses on the continual elimination of waste.

Kanban.  Focuses on reducing lead times and the amount of time to complete a process.

Along with IT,  agile management practices are particularly well-suited to strategic planning activities, marketing projects, resource allocation decisions and supply chain challenges.  Sales and accounting, for example, are not a natural fit for agile, according to experienced practitioners. In sum, agile works best where complex problems can be broken down into modules and assigned to specific teams.

When solutions to the problem are unknown, product specifications could be subject to change, the scope of the work to be done is not precisely known, cross-functional collaboration is presumed to be vital and time to market is sensitive are the ideal conditions in which to apply agile innovation or methods.

For independent Freelance consultants and small business owners agile will have a different meaning, but it may be useful nonetheless.  Small business owners can surely incorporate agile methods into their organizations and see improved functioning.  Freelancers may be more apt to use agile as a marketing buzz word that communicates to clients and prospects that we are on the cutting edge of forward-thinking business practices and in tune with their priorities.  Freelancers who are themselves agile will be trustworthy external talent who bring ROI to organizations for whom we work.

Thanks for reading,

Kim

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Online Reputation Management

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Shakespeare, in Act 2 of his circa 1603 play Othello, said it best: Reputation, reputation, reputation.  It is the original personal brand and one of the defining realities of our lives.  As a Freelance consultant, reputation governs the projects offered to us and therefore, our income and the kind of life we’re able to live.  It pays,  in more ways than one, to cultivate a peerless reputation and guard it vigorously.

In the internet age  that is especially so, in both the personal and professional spheres.  Mistakes and mischaracterizations made in digital formats are extremely difficult to dodge, ignore, deny, or correct.  One’s online reputation is the ultimate flypaper.  Take steps to ensure that what sticks to your name is all good.

Images

Along with Facebook, Twitter and YouTube, Instagram and Pinterest are the sites where images of you are most likely to be posted,  by yourself and others.  When cameras are around,  meaning whenever anyone has a cell phone,  which is about 24/7,  make sure that your behavior represents you and your brand well.

There’s nothing wrong with being photographed in an obviously casual gathering—just make sure that you (or others) are not in the midst of activities that could be misconstrued and reflect poorly on you sometime in the future.  If you regularly appear in photos that you know or suspect will be posted to social media sites, counteract with a photo of your own that shows you at work, paid or volunteer. Balance your accounts, so to speak,  and show that there is more to you than non-stop partying.

Content

Create and regularly post original content that makes you look smart, professional and successful.  On your LinkedIn account, announce when you will attend a symposium,  serve on a panel,  teach a course or workshop,  or have recently earned a professional certification or advanced degree.  If you’ve presented a webinar,  request the replay and turn it into a podcast for your website and YouTube.  If you write a newsletter or blog,  link to your website and LinkedIn.  If you’re on Twitter or Instagram,  produce streams of high-quality feed and images that convey the competencies and values that you want to be known for.

Twitter, Instagram and Facebook can feature glimpses into your personal life as well and it could all be for the good,  as long as you are strategic about what is revealed. Your volunteer work is always a safe bet.  Training for a marathon or even a fun and casual volleyball or softball league would be excellent.  Your parent’s wedding anniversary party would make another good personal aspect to include in your online narrative.  Be aware that narrative is the operative word.  Create the story that you want to be told, in a manner that makes you look wonderful.

Search

About every three months,  search your name and your company name in engines such as Bing,  Google and Yahoo and see what comes up in the first 50 listings.  Are you happy with what you see?  Try keywords related to your business along with your city and check your professional reach in a more profound way.

If you find that your business has been reviewed in an excessively negative and inaccurate way,  contact the reviewing site and request that the offending post be removed.  If customers have offered criticism that just may be constructive, address the matter.  Apologize and offer your side of the story.  Make amends if possible.  By doing so,  you’ll add to your credibility and customer service reputation.

It’s been reported that 70% of US employment recruiters have rejected potential job candidates when something about them that was considered unsavory appeared on social media.  Freelancers should assume that prospective clients will do the same.  Maintaining and monitoring your online reputation has never been more important.

Thanks for reading,

Kim

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Procrastination: Wrestling the Demon

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The Bible named procrastination as one of the Seven Deadly Sins, classified as Sloth, that is, persistently failing to do what one should do. Evil exists when good (men) fail to act. Entrenched procrastination most certainly has the potential to ruin one’s life and such procrastinators are able to adversely impact family members and colleagues as well.

Joseph Ferrari, professor of psychology at DePaul University in Chicago and a noted researcher in the field of procrastination, reports that the disorder takes several forms and that he and fellow researchers have identified two primary types:

1.) Chronic procrastinators, who are perpetually unable to complete tasks.

2.) Situational procrastinators, who delay taking action on tasks that are considered particularly loathsome.

Procrastinators are unable to learn from the negative outcomes of their avoidance behavior. That they have suffered previously from failing to fulfill responsibilities does not motivate them to get busy when the next important task appears. Procrastination is the “quintessential” breakdown of self-control, according to Ferrari and his fellow researchers.

At this point in the story, I would have liked to present a neat and clever solution to the problem, all artfully phrased to make me look smart. But I’m sorry to say that solutions for procrastination are weak. Situational procrastinators have the best prognosis and everyone falls into this category from time to time. The next time that you just can’t face up to doing whatever, set a personal deadline and find the discipline to adhere to it, so that you’re not frantically working to get things done. Just do it and move on.

But chronic procrastinators are a very tough nut to crack. I know this from personal experience, because many years ago I had a long-term relationship with such an individual. His inability to make good decisions, which included chronic malignant procrastination coupled with passive aggressive behavior, caused me to leave him. I guess he loved me, but not enough to get his act together. I will never get over the disappointment that he caused me.

Ferrari suggests that organizations can diminish the common tendency to wait until the last-minute to complete tasks by rewarding early action and de-emphasizing penalties for lateness, in the process shifting from the threat of punishment to the pleasure of reward and keeping the lid on stress along the way.

On a personal level, which is where the procrastination battle lives, Ferrari advises to refrain from enabling chronic procrastination…..”let the fridge go empty, let the car stall out. Don’t bail them out.” However, that approach to fulfilling responsibilities will sometimes adversely impact the other half of the couple and it is not always practical to allow that to happen. As I found out, chronic procrastinators are not good life (or business) partners because they do not hold up their end. You may have to terminate the relationship, because things are unlikely to get better.

If you are a chronic procrastinator reading this post, consider that we all have only so many years in life and it is important to get on with things. It is a given that sometimes we have to suck it up and do what we don’t like. But then it’s off your plate and you can think about the fun things.

Thanks for reading,

Kim

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Procrastination and Productivity

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Who among us has not allowed a deadline to approach because we just could not pull ourselves together and do what we needed to do? Some things we just hate to do. Sometimes, we can’t get started because we don’t know where or how to start. We fear that we are not up to the task. Other times, we really do have too many other important things on our plate and we feel overwhelmed. We fall victim to procrastination.

“What I’ve found is that while everybody may procrastinate, not everyone is a procrastinator”, says Joseph Ferrari, professor of psychology at DePaul University in Chicago and a pioneer in the study of procrastination. He goes on to say that (procrastination) “really has nothing to do with time management”. His research revealed that an inability to manage emotions is the root cause of procrastination.

When psychologists initially studied procrastination they adopted time and value as their metrics, asking “Why does this person not perform a simple cost – benefit analysis of doing what they must vs.ignoring their responsibilities”? Unfortunately some of us, and from time to time all of us, choose immediate and sometimes minor gratification over more significant rewards that pay dividends in the long-term.

So instead of going to the gym at 6:00 AM we lie in bed for another 30 minutes. When we might work out after work at 6:00 PM, we instead go out drinking with friends. We put off doing our taxes and sit around watching re-runs on television instead. Professor Ferrari and others feel that procrastination happens for two primary reasons:

1.) We put off the task because we are not in the mood to either start or complete it.

2.) We assume that we’ll be in a more appropriate frame of mind to complete the task in the near future.

Needless to say, putting off until tomorrow that which one should do today may bring on guilt, anxiety and defensiveness. To ease our consciences, we often make little bargains with ourselves and vow to clean up our act going forward (“If I go out tonight, I’ll work out for 90 minutes tomorrow”). That approach can work but for some of us, the avoidance behavior that is procrastination will kick in again and tomorrow there will be another excuse (“I have so much work to do, I can’t get to the gym and even if I do go, I’ll be too exhausted to do a good workout”).

Getting stuck in a procrastination pattern does one’s self-esteem no favors. Beneath the defensive attitude that may be thrown at those who dare question why you’re not doing what you should do is self-loathing. You feel like a loser because you know you’re screwing up and no amount of self-righteous denial can hide that fact from yourself.

Procrastination is not to be confused with positive behaviors such as caution, where you think first and weigh the possible consequences of moving forward to take action; pondering, when you examine a problem and discover solutions that you can expect will be useful; or prioritizing, when you assign a value to and rank your responsibilities and complete highly ranked tasks first and the least important tasks are done last, if at all. Procrastination represents a gap between intention and action.

Next week, we’ll look at common forms of procrastination and strategies that may resolve or ameliorate the problem.

Thanks for reading,

Kim