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Quick Takes

Do You Have a Zombie Company?

It’s Morocco, 2001, and I didn’t want to eat brains.

… A short story about one dinner that taught me how not to fail at business:

So – camel brains are a delicacy in Morocco, and all eyes are on me as the last to take a bite.
Lots of peer pressure.

So, I ate the brains.

Spongy.

Didn’t ask for seconds.

I can tell you that eating brains does not, in fact, make you smarter.

But, it does do two things:

First: give credibility as a zombie, which is highly useful for keeping the kids in line.

Second: serve as a reminder that just because everyone else is doing something, you don’t need to.

There was social pressure, sure, but it’s not like I’d end up in Moroccan jail if I refused it.

Peer pressure is an interesting thing, not just in brain-eating, but in running your company.

Fortunately, I did not turn into a zombie by giving in to the crowd.

BUT most business owners let their businesses turn into zombies – they follow the crowd (more on that in a sec).

Here are some key indicators that your business is a zombie:

  1. Slow, shuffling gait: business plods along, but hasn’t grown in a while
  2. Insatiable Appetite: has a constant craving for cash, lurches this way and that looking for more
  3. Partially braindead: despite your best efforts, anything you do feels like it doesn’t change the outcome.

But why does a business become a zombie?

Because the CEO is following a herd of other zombies. All listening to crappy business advice-

Advice from people who have never run a business, bought a business, AND sold a business.

(and yes, the advice you want is from someone who has done ALL three).

The buggest bad-advice culprits?

  • online articles,
  • the vendor who appears – and it just so happens what they’re selling is the answer to all your problems,
  • Some Guy who’s never run a lemonade stand, but is apparently an expert in how to position and market your company …

So the next time you see a business article (likely written by a journalist freshly minted from four years of learning nothing in college) – ignore it.

The next time someone who hasn’t done what you want to do offers advice – ignore it.

If your business isn’t where it needs to be – if it’s a zombie – then I have good news for you.

Unlike in the movies, there is a cure for the zombie virus.

It’s simple: stop following the crowd and find someone who has done what you want to, and ask them.

Discover a weekly list of short, actionable steps to get out of operational deadlock, build a self-managing team, grow strategically, and increase company value in the Boardroom Bulletin™.

September 30, 2022
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The Big Jump for Business Owners

“This is really dangerous” I told Andrew, before he jumped off the roof.

A lesson in taking business risks, learned the painful way at age 13.

Before he jumped looked at me. Didn’t say anything – but I could see he was afraid.

Then he turned, jumped, and was gone.
I just stared as he plummeted towards the ground.

Fortunately, the glider we had fashioned only partially collapsed in flight.

13 year olds aren’t always the best at engineering.

It’s hard to tell if it actually slowed his descent, but two things were for sure:

  1. He did not travel far
  2. I should NOT tell mom about this.

It wasn’t the first stupid thing we did that summer, nor would it be the last (until The Bloody Snow Incident, at least).

A lot of planning, design and construction gave us confidence to jump off the roof.

A flip of a coin said Andrew jumped first, not me.
A whole lot of planning, a best guess, and a flip of a coin.

Every time you start a major business initiative it feels like the same thing.

A whole lot of planning, a best guess, and a flip of a coin.

But here’s the thing –
You don’t have to jump first.

We did because we were 13 and knew full well that the first one to jump would probably end up hurt.

But in business, you don’t have to jump blindly or trust luck.
There’s someone other than you who’s made the jump before.

So if you’re making a business leap without talking to someone who has done it before, you’re just asking for a crash landing.

I never did get to jump off a roof lashed to that structurally unsound glider. It was destroyed on impact.

Don’t destroy your business on impact. Don’t flip coins. Find someone who’s done it before and lived to tell the tale.

Discover a weekly list of short, actionable steps to get out of operational deadlock, build a self-managing team, grow strategically, and increase company value in the Boardroom Bulletin™.

September 23, 2022
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How Your Company Can Avoid Cash Crunches

Huge problem facing most businesses? Routinely falling into a cash crunch.

The good news is it’s easily avoidable.

Here are 11 ways to turn your cash-hog company into a profit fountain: 

First, understand the basic principle:

The less time it takes to convert resources to cash, the healthier the business.

Not only does that mean the business is easier to run, but buyers will pay a premium for businesses with great cash conversion.

Here’s how to do it: 

#1 Shorten sales cycle

The longer your sales cycle, the longer between spending $ and resources on generating the lead and collecting cash 

#2 Reduce inventory

Inventory is money tied up in “stuff”. When you see inventory, see dollars trapped, yearning to be free. Reduce inventory and decrease cash you have tied up. 

#3 Right-Size Delivery Staff

If you have a service business, think of delivery staff as inventory. Right size your delivery staff for the forecasted jobs. You’ll never get it 100% right, but too many mouths to feed and not enough paying work isn’t good for anyone. 

#4 Reduce delivery cycle

Longer delivery cycles tie up resources that could be servicing new customers (and generating cash). If you’re only getting paid after delivery, then a long cycle is between you and cash collected. 

#5 Collect up front

The most obvious one here. If you can, collect up front and your cash position is immediately better. 

#6 Invoice promptly

Way too many businesses end up invoicing 60 or 90 days later than they could. Combine that with a net 30 invoice, and customers getting a 30-60 day grace period after that, and you’re getting paid in half a year(!) 

#7 Don’t Extend Terms

So about that net 30. If you can’t collect up front, why not net 15? Tell your customers: you’re not a bank. You’re in the business of providing X, not lending money. 

#8 Stretch AP

On the other hand, get super long terms for vendors you pay. The longer you hold onto cash before it goes out the door, the better your cash position will be. Get long terms, pay just down payments, etc. Do exactly the opposite for your vendors as you’re doing. 

#9 Lease, Don’t Buy

Unless something is mission critical, consider leasing it. Just like inventory, that truck, machine, or whatever is just a chunk of depreciating cash… Which could be better deployed elsewhere 

#10 Outsource

If it’s not core to your business, consider outsourcing it – and get a rock solid Service Level Agreement. Let a specialized company focus on efficiencies that aren’t core to your business. Oh, and stretch their payments too. 

#11 Consider Factoring

Invoice factoring is selling accounts receivable invoices at a discount in exchange for immediate cash. It’s not for everyone, but sometimes it’s a great bridge as you work on your cash cycle 

Doing the 11 steps above can more than double cash on hand.

Discover a weekly list of short, actionable steps to get out of operational deadlock, build a self-managing team, grow strategically, and increase company value in the Boardroom Bulletin™.

September 8, 2022
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Quick Take: Should I Raise Money For My Startup?

When should a startup raise money? The answer isn’t always clear – and there are risks of being too early or too late. Dive into whether or not it’s time to raise based on the kind of company you have.

Discover a weekly list of short, actionable steps to get out of operational deadlock, build a self-managing team, grow strategically, and increase company value in the Boardroom Bulletin™.

April 4, 2022
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References Done Right

What’s the best way to get glowing references? And as an employer, how do you make sure references are accurate? Here’s the quick hack to making sure you’re upping your reference game.

November 5, 2021
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