Since 1997, I’ve devoted many hours of programing on my radio show that focuses on issues that are at least more dramatic, if not unique, for women small business owners than for men. I conducted this programming with women who are either experts on the topic of women making their way in the marketplace, or they are women who have overcome these challenges, or both.
Debbie Meyer is both. She’s an inventor, an entrepreneur and she’s a highly successful business owner. Debbie invented the Green Bags, among other innovations that make life easier, and is co-CEO and co-founder of Housewares America, Inc. And she’s a member of my Brain Trust.
Recently, Debbie joined me again on The Small Business Advocate Show and I asked her about my theory that one of the problems women bring on themselves is thinking that it’s enough to manage a problem instead of find a way to solve it and get rid of it. Debbie agreed with me, and we discussed this issue. Take a few minutes to listen to my conversation with Debbie and, as always, leave your own thoughts. Listen Live! Download, Too!
For generations, business owners have learned that while Profit may be the Queen of business, Cash is King. And there is never a moment in the life of any business, large or small, when this generally accepted truth doesn’t apply. But in 2009, or anytime the economy slows, small businesses must elevate Cash to an even more supreme level. Consequently, these days, and for the foreseeable future,
Cash is Emperor.
Any Questions?
Blasingame’s 3rd Law of Small Business states: “It’s redundant to say, ‘undercapitalized small business.’” There are at least two reasons this statement is a law and not a maxim:
1. In every small business, there is always a place to put whatever capital may be available.
2. Small businesses typically have only three sources of capital: a) Retained earnings – profits left in the business; b) Bank loans; c) Investment capital, most of which comes from the owner.
Because of the impact of Blasingame’s 3rd law, any cash in a small business is precious and, therefore, availability must be maximized.
There are many fundamental best practices that can be executed to maximize cash. Here are a few:
- Sell at a gross profit margin that will more than fund operations.
- Manage expenses like a she-bear guards her cubs.
- Manage accounts receivable like your life depends upon it – it might.
- Establish and maintain a close relationship with a bank.
- Re-invest as much of the profits back into the company as possible.
Recently on my small business radio program, The Small Business Advocate show, I interviewed three top experts on cash management and capital acquisition. First, Gene Siciliano, author of Finance for the Non-Financial Manager, second, Joe Knight, author of Financial Intelligence for Entrepreneurs, and finally, Tom Markel, founder of iBank.com. Be sure to take a few minutes to listen to what these three world-class cash management experts have to say about this critical small business management fundamental. And, of course, be sure to leave your own thoughts.
For Gene Siciliano: For Joe Knight:
For Tom Markel:
Mistakes are worth contemplating, and yet we often don’t. The reason, I think, is because it hurts a little to focus on them. It’s not fun to see ourselves that way. Mistakes are definitely not ego food.
But there is something very important to remember about mistakes: Not focusing on them can ultimately be more painful.
Sixteenth century French Renaissance writer, Michel de Montaigne, wrote, “Those things are dearest to us that have cost us the most.” Think he’s talking about mistakes? I do. Do you think of your mistakes as “dear”?
If you don’t contemplate your mistakes and learn from them, you are subjecting yourself to double jeopardy. Because today you will not only make the new mistakes we are all destined to make as we go through life, but you’re also doomed to repeat the old ones you should have learned from yesterday.
Whether your mistakes are valuable or expensive depends on whether you contemplate and learn from them, or deny them and keep on paying for them. I think paying for a mistake once is “dear” enough, don’t you?
Once there was a crow perched on a fence, looking at a turtle that was sitting on top of a fence post. After the crow inquired of the turtle as to how he came to be there, the turtle answered, “Well, one thing is for sure: I didn’t get here by myself.”
If small business owners are to find success in their business, it’s a virtual certainty that they won’t get there by themselves. Business growth requires leveraging other people in the form of employees and managers. It also requires the Alpha Manager (AM) – typically the founder – to be able to delegate.
The term “to be able to” has more than one moving part. First, the AM has to actually be prepared to delegate project ownership and the work. Second, the delegation has to be conducted by the AM in a manner that fosters a successful project completion. And third, the managers and employees have to be competent enough for the task being delegated.
Recently I had an excellent discussion with Brain Trust member, Rick Maurer- author of “Why Don’t You Want What I Want?”- about what he called, “Managing from the middle.” Rick is one of the smartest management minds in the Brain Trust, and I think you’ll find the time you spend listening to our conversation to be well spent.
