Monthly Archives: September 2011

Random small business links

Posted on September 29, 2011 | Leave a comment

I found a couple excellent blogs/articles today that were too good not to share.

First, Seth Godin, always a compelling storyteller, writes about the recession….which he argues is really two recessions. This is the best take I’ve read and really lights the way to where we are going. I especially love the arguments on racing to the bottom to save some kinds of jobs instead of adapting and innovating and creating new jobs.

Second, Norm Brodsky writes a piece in Inc. magazine about keeping your eye on your company’s balance sheet. Most business owners are so obsessed with the other main statement – the income statement – they completely forget (or don’t even know) about the balance sheet.  I especially like the last few lines:

Numbers run companies. It’s your responsibility as an owner to know and to understand not only the income statement but also the balance sheet of your business. You ignore them at your peril.

I am especially in tuned to this as a CPA. Many times I’ve heard a business owner say “I’m making money, but my business is still struggling”. A lot of times we can find answers by looking at the balance sheet.

 

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Posted in Accounting, Business management, General

Inspired by my Community

Posted on September 28, 2011 | Leave a comment

I was tired yesterday morning. Our kids were up late and I just didn’t sleep well the night before. Tuesday mornings I am up earlier than normal so I can drive a few extra miles to my BNI group. I was really tempted to hit snooze and sleep in, but I got up, showered and headed out the door.

Man, I am glad I did. I’ve talked about my group before, but yesterday morning our meeting was absolutely incredible. The energy in the room is always great, but yesterday it was at a new level. We were cracking jokes, enjoying each others’ company and – oh yeah – celebrating our progress for the year – nearly $2 million dollars in closed business in less than a year’s time. You guys are amazing!

Just being in that room with 20 other people, who run cool small businesses and dispel the notion that our economy is in the tank, is so inspiring. Then during the “I Have” portion of the meeting (when we go around and share what we’ve done the past week) I received a very nice testimonial from a customer I started working with within the past year. It was amazing to hear that she appreciated my work and I had a positive impact on her business.

I have learned so much from my fellow members  since I joined the group. But the biggest thing I’ll take away is this – having a group of people that inspire, support and empower you (not to mention are fun to be around) makes getting up early an easy choice.

I strongly encourage every small business owner or self-employed individual to find a community of people that will similarly inspire and support them both professionally and personally. You will not regret it!

Let me know in the comments if you’ve had a similar experience.

 

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Posted in Business management, Gratitude, Relationships

Book Report #3 – Purple Cow

Posted on September 15, 2011 | Leave a comment

This is the third installment, here are the other book reports.

I’ve been reading Seth Godin’s blog for awhile, but this was my first foray into one of his books. The title refers to “being remarkable” by making your business, or yourself, stand out – similar to how a purple cow would stand out in a herd of cattle.

In the book, Godin argues that traditional advertising is dead and will not get you business like it used to. Advertising to “anyone” doesn’t cut it. Instead, he says to focus on the early adopters & sneezers, who will spread the word to the mass market – if you are remarkable.

Godin argues that the Purple Cow is not a cheap shortcut, but it is rare because people are afraid of standing out. He likens it to being in school, where we are taught not how to succeed, but how NOT to fail. I thought this was a very good analogy.

Some other points I highlighted:

  • we have a false belief that criticism leads to failure; that being noticed is almost always bad
  • “In almost every market the boring slot is filled.” ….you can’t “market yourself as more bland than the leading brand”
  • the concept of otaku – described as something more than a hobby but less than obsession
  • reviewing every “P” of marketing to find the edges and figure out where to innovate
  • the Brainstorms at the end of the book especially:  Google vs. Yahoo; LL Bean’s money back guarantee; copying another industry’s “remarkable” figure
  • find something that is “just not done” in your industry and doing it
  • Asking why not? – realizing that most things are simply the result of inertia and changing that can be powerful

This book was a quick read and it is well worth the time. Even (especially) in an industry as conservative as accounting, I can see the value of being a little different. I look forward to reading more of Godin’s books – I think Poke the Box will be next.

Have you read Purple Cow? How are you, or your company, differentiating and has it worked for you?

 

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Posted in Book Reports, Fun

Book Report #2 – E-myth Accountant

Posted on September 8, 2011 | Leave a comment

See all my book reports here.

At the suggestion of fellow Thriveal CPA member Michael Atnip, I read Michael Gerber & Darren Root’s The E-myth Accountant.

The book is part of the E-myth (Entrepreneurial Myth) series, this one being tailored specifically toward accountants. Throughout the book, Gerber & Root talk about technicians going into business for themselves and creating a job, rather than a business. The book’s preface offers that the key to transforming an accounting practice is to recognize the difference between going to work ON your practice (i.e. systems thinking) and going to work IN your practice (tactical thinking). They argue that usually the entrepreneur (systems thinking) is absent when an accounting practice is started.

I don’t disagree with this statement. And I agree any good business needs systems in place to help it run smoothly, so that it doesn’t have to depend on one person.

However, I think the authors left out one key element. Part of what I enjoy as a CPA is interacting with customers and getting to know them personally. I think this book pushes the pendulum too far in the other direction – the authors seem to suggest that the owner should be concentrating on the business only and pushing the client work down to associate accountants.

I guess my question is then: why even run an accounting firm if you’re not going to be an accountant? You could go run any business if you just want to “run a business”. Maybe that argument is by design since this book series is a follow up from the more general E-myth. I think a balanced approach is more appropriate – some days you wear your accountant hat, some days you wear the entrepreneur hat.

That being said, I did find some good information in the book including:

  • the 4 kinds of money – income, profit, flow and equity
  • the planning pyramid – (from the bottom to the top) – business plan (the how); practice plan (the what);  completion plan (how)
  • how billing by the hour (being on the clock) causes clients to seek answers independently instead of asking their advisor
  • the expansion vs. contraction concept which is from the book The Lazy Man’s Guide to Enlightenment and how it affects our attitude towards change
  • how change can be facilitated/eased through community learning (I have witnessed this first hand with my Thriveal friends)
  • the Big Question – “How do I wish to spend the rest of my Time?” and how NOT asking this will allow the little questions to forever bother you
  • creating a story about the practice and then organizing the practice to breathe life into the story (similar to a vision or Simon Sinek’s WHY)
  • the concept that Strategic thinking are Wants and Tactical thinking are Needs

In summary, this book was worth the (quick) read. While I don’t agree with the main theme, I think accountants would be well served to read this book and incorporate at least a few of the ideas into their practice. For accountants who are notoriously resistant to change, I found the section on contraction vs. expansion to be very eye-opening and found myself re-reading it. I also am hoping to read The Lazy Man’s Guide to Enlightenment in the future.

Have any of you read the original E-myth? What were your thoughts?

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Posted in Book Reports

Book Report #1 – Start With Why

Posted on September 1, 2011 | 1 Comment

This is the first entry in what I intend to be a series.

One of my favorite ways to find new ideas or improve is to read. Short of buying a mentor a cup of coffee, there are not many ways where just a few dollars can open up your mind so much.

These “reports” won’t be long (like our teachers used to make us write!) – just a quick summary of the main point(s) of the book and a few ideas or passages I found memorable. And maybe how I am (or hope to) applying the knowledge to my business. I hope you find them useful and learn something along the way.

Start With Why‘s main theme is: people are drawn to you (and potentially buy from you) because of WHY you do something, not necessarily WHAT you do. Thus, your WHY can be used as a basis for your decision making – whether it be marketing, product/service offerings, etc. I particularly liked Sinek’s “Golden Circle” concept that is essentially a progression: WHY—>HOW—>WHAT. In the book he argues most companies just focus on HOW or WHAT to their detriment.

Sinek uses the example of Apple quite a bit throughout the book. He admits at one point it seems repetitive, but it IS a good example. Not only are they hugely popular which makes them easy to identify, but their WHY really hasn’t changed since they started.

Sinek’s example of WHAT vs. WHY for Apple:

WHAT “We make great computers. They’re beautifully designed, simple to use and user-friendly. Wanna buy one?”

WHY “Everything we do, we believe in challenging the status quo. We believe in thinking differently. The way we challenge the status quo is by making our products beautifully designed, simple to use and user-friendly. And we happen to make great computers. Wanna buy one?”

Some other ideas that stand out:

  • the role of a leader is not to come up with all the great ideas, but rather create an environment where great ideas can happen
  • find people who believe what you believe, instead of selling to anyone. These people will perceive greater value and tell others about you.
  • filtering decisions through your WHY is more efficient and everybody can then see what you believe
  • Success comes from waking up every day in pursuit of WHY.
  • industries holding on to legacy business models should be forewarned – you could be next (talking about Apple’s innovation of the music industry via iTunes – I found this one particularly interesting when it comes to CPAs – who typically hate change)
  • (on competition) – if someone asks what makes you better, you might say “we’re not better in all cases, but the work we’ll be doing will be better in 6 months than what we are doing now” (basically you are competing against yourself)
  • keeping your WHY clear over time is difficult

I am really happy I read this book. It has truly made me think deeply about WHY I am doing what I do.  Many CPAs complain about our business becoming commoditized, but I think that is just an excuse. After all, how can any profession that, at its core, relies on personal relationships become a commodity? Perhaps they have simply lost their WHY.

I’d love to hear your thoughts if you’ve read this book. What was your takeaway?

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Posted in Book Reports, Strategy