Total Pageviews

Showing posts with label Company. Show all posts
Showing posts with label Company. Show all posts

Sunday, November 10, 2013

How to Move up within a Company – Career Progression Secrets

This is for the people out there who want to have a bigger positive impact and be more influential within their company. This is not for ‘climbers’ who just want to rise for the sake of rising. This is for people with serious career progression in mind who want to move up using ethical strategies.

In 5 years, I have figured out how to rise to one of the top positions within a government department that has serious competition for the best roles. By rising quickly, I have become the youngest Senior Adviser by far, have doubled my income, and don’t have any particular qualifications.

The strategies I’m about to share with you are about how to take your strengths and turn them into an asset for the company you work for. This is about combining what you love most with some boundaries to ensure that your rise up the ranks is relatively risk-free. Follow this guide to become irreplaceable, with a widely known reputation for performance, integrity and results.

You can ask almost anyone in the Department I work for, and they will have heard good things about me. Not only that, they will know me as a high achiever and solid performer. We’re talking hundreds of people, including some I’ve never even met. Don’t get me wrong, some of them do not like me at all, but I am confident they at least respect me.

I’m not a better person than anyone else–I have simply learned the steps on how to create a rock-solid reputation, where I’m well known and respected. For the first few promotions, I had to apply 3 or 4 times before I got them. For my last promotion, I pretty much walked onto the job due to my reputation alone. Now, I have other services trying to poach me.

I’m no better than you–you can be in this same situation if you apply the following rules and techniques to build up your reputation. Try the steps below and see how you go.

Offer to design and deliver training sessions to staff on how to do something better. Ask your boss and other senior staff what the company needs to fix and then figure out how to help fix it. Just showing your support will help you get the “company-focused problem solver” label, which is an awesome way to be seen.

I once accidentally got sent minutes from a meeting of senior managers, and in these notes they specifically mentioned me as a “secret weapon.” This is how you want to be known. By solving problems no one else is taking on, you make yourself valuable, because you create a role that wasn’t there before which only you can fill.

Know that your boss is always going to pretty much be a mandatory referee for you. This does not mean suck up to them or become their slave. But it does mean you need to recognize that you are paid to make their job easier, not harder. If you want to assert yourself, that’s fine, but in the end, your boss has the final say and you need to respect that.

Having a reputation as difficult to manage will be the single biggest barrier to getting promoted. Bosses love having someone support them, as being a manager/leader can feel like it’s you versus the world. They often have pressures from above you don’t know about.

Always ask your boss to stretch your comfort zone and prepare you for greater things. Tell your boss you have hopes of moving up and are interested in any extra-ordinary tasks that could help you develop. Tell your boss that all you want from them in exchange for hard work and loyalty is the opportunity and freedom to develop. There’s nothing I like more as a manager than having a new staff member asking me to mold them into a superstar.

Don’t brag, but don’t be too humble and shy either–no one else can be relied on to talk you up. A great way to do this is send out emails to large portions of the company with regular recommendations or tips (not too frequent as to be annoying though). Every job I’ve had, I’ve found a reason to send out a fortnightly newsletter that provides valuable information for others. It’s probably the best way to get your name out there.

Make sure you take every available opportunity to receive mentoring, particularly from people higher up the chain than you. Listen to what they say, and take their advice. They’re more likely to know what you need than anyone else, but even more importantly, they can steer you away from mistakes that may damage your reputation. And making a good name with higher-ups could really pay out for you!

When I apply for a role, my referees are some of the most senior people in the company, and they can all vouch for me because they’ve coached me personally. I went to them for coaching; I didn’t wait for an offer.

It’s OK to get things wrong as long as you own up immediately with integrity, and offer solutions. Not admitting mistakes or passing the blame might work in politics, but in business, you’ll be seen as someone who doesn’t take responsibility and can’t be relied on to take necessary risks safely. Simply say, “I messed up, but I’ve fixed it by doing x, y and z.” If you’re part of a team that screws up, while everyone else is blaming each other you can say, “The damage is done, let’s just own it and fix it.” Show leaderships skills.

Show the company that you’re interested in a range of work, particularly anything that will help the company, even if you don’t get more financial reward. With everyone switching careers every two seconds these days, companies must be craving loyal employees they can mold into ideal leaders.

If you receive an email or phone message that makes you emotional, write a reply and then save it in draft. Come back to it the next day (or at least take as long as you’re allowed to respond). Once you’ve cooled off, ask yourself “How can I respond to this in a way that shows I am un-phased and professional in all situations?”

Better yet, try calling or seeing the sender in person. You’d be amazed at how much easier it is to diffuse conflict when you can involve body language, eye contact and voice tone. Diplomacy and conflict resolution are highly sought after skills.

You missed out on the promotion? Tough. Do not challenge it, because even though this may be an option, ultimately you lose. First, you have questioned the integrity of the hiring panel, so now they hate you. Second, you come across as a poor sport who does not accept feedback, so you’re now seen as litigious and “hard to manage.” Third, you’ve now pissed off and undermined the person who got the job and who may very well be in a position to influence how higher-ups see you. You just can’t win, so even when it’s unfair, suck it up and ask the panel for feedback on what you need to improve for next time.

There are some awful managers out there, and if you suspect you are being held back by one, go to your union or another representative before you back-stab your boss to their superiors. If you do get to the point where you need to escalate something because your boss is being awful, do it openly. Tell them you’re going to do it, that it’s nothing personal, that you’re just trying to look out for your career. But really, most people I see doing this don’t have a legitimate beef and just look like trouble-makers. You’re better off trying to get into another team or something.

The only people who need to be impressed by you are those who will decide whether or not you get promoted. For a long time (and probably still) I had a reputation among my peers as “The Golden Boy.” They made fun of me behind my back because I was always doing a good job, never challenged the Department’s core values, and was always solving problems that had nothing to do with my role.

Nowadays, it’s my job to tell them how to do their job. I’m even coaching some of them! If I had tried to please them I would have never been promoted. The only person you should try to please is you, but you should also aim to impress those who actually matter to your career goals. Everyone else can either support you or get the hell out of your way, period.

Best Practices for Professional Branding: 7 Personal Branding Strategies That Will Advance Your Career

Featured photo credit: JustinJensen via photopin cc

Dan Munro is a Career and Lifestyle Coach from Auckland, New Zealand. He runs his own company The Inspirational Lifestyle Ltd, specializing in coaching and advising on careers, self-confidence and lifestyle.


View the original article here

Thursday, February 7, 2013

Ask the Entrepreneurs: 12 Ways to Shore Up Your Company Finances

Ask The Entrepreneurs is a regular series where members of those involved in the Young Entrepreneur Council are asked a single question that aims to help Lifehack readers level up their own lives, whether in a area of management, communication, business or life in general. Here’s the question posed in this edition of Ask The Entrepreneurs:

1. Track Your Monthly Income and Expenses

Nathalie LussierThis might seem a little too basic, but if you’re not doing at least some bookkeeping on a regular basis, you don’t have your pulse on your business’ numbers. Being able to look at how much money came in and went out in one month is crucial to any startup or aspiring entrepreneur. Even if you’re not bringing much in, you need to know that.

- Nathalie Lussier, The Website Checkup Tool

2. Increase Your Rate of Savings

Lawrence WatkinsBecoming an entrepreneur can be a scary proposition, and one factor that keeps many people from making that leap is finances. If you’re living paycheck to paycheck, then it can be hard to make those tough decisions that may be rough in the short term, but very beneficial in the long term. Once you answer how you’re going to eat and where your’e going to live, you can then focus on your business.

- Lawrence Watkins, Great Black Speakers

3. Can You Really Live on Ramen?

Erik SeveringhausIt’s easy to assume that if you quit the high-paying day job, your expenses will decline in tandem with your income. In reality, that’s a lot harder after you’re used to nicer meals, vacation travel, etc.

Before you quit your job, figure out what you can really live on for two months and test your ability to stick to that budget. It’s a great way to see if you’ll be happy living on ramen noodles.

- Erik Severinghaus, SimpleRelevance

4. Take an Accounting Class

Thursday-BramEven if you never have to do any accounting work at any company you ever start, understanding the basics of accounting will be very useful. Just being able to read accounting reports may save your bacon if there’s a potential issue in your company that your accounting software or a human accountant haven’t managed to pick up on.

- Thursday Bram, Hyper Modern Consulting

5. Create a Personal Budget

Derek FlanzraichSometimes, amidst all the startup craziness, entrepreneurs forget to plan and organize their own finances at all. Then, all of a sudden, you’ve ordered expensive sushi delivery for dinner every night and the numbers keep stacking up. Take some time over the holidays to plan out your own budget.

- Derek Flanzraich, Greatist

SEE ALSO: Ask the Entrepreneurs: 11 Bloggers to Follow for Lifestyle and Productivity Tips

6. Join the Peer Economy

Eric KoesterThe Peer Economy, companies that help you buy, sell, or transact with your peers (think eBay, Etsy, Airbnb, Getaround, Taskrabbit, Zaarly, Odesk or dozens others), is a great way to make money or save money. So participate—either by renting your couch out or staying in an Airbnb place when you travel; finding a developer or selling your services on Elance; or more. But just participate.

- Eric Koester, Zaarly

7. Give Yourself Permission to Fail

Dave UrsilloEvery aspiring entrepreneur should give themselves permission to fail in 2013 because the greatest obstacle that every entrepreneur must (and always will) encounter is fear; especially fear of uncertainty and the unknown. When you give yourself permission to fail—financially or otherwise—you really give yourself permission to try in the first place.

- Dave Ursillo, The Literati Writers

8. Pay Down Debt

Elizabeth SaundersIf you have personal debt, try to dramatically reduce or ideally eliminate it prior to starting your business. Having lower recurring expenses will give you more freedom to take risks as you build your company.

- Elizabeth Saunders, Real Life E®

9. Real-Time Visibility

Robert J. MooreEstablish a system to access financial data about your company’s performance on demand and in as close to real-time as possible. This will allow you to feel highly in tune with business growth and tackle challenges as early on as possible.

- Robert J. Moore, RJMetrics

10. Launch Their Company

Aron SchoenfeldToo many people network, brainstorm and whiteboard continuously and just keep adding ideas and layers to their concept. Aspiring entrepreneurs need to draw a line and say “this is our MVP and now we will build it.” Sitting on an idea does not help you or make you any money but building your idea into a product or business will help you validate it and test the marketplace.

- Aron Schoenfeld, Do It In Person LLC

11. Find Great Clients

John-HallImprove profit through better clients. Having great clients really does matter with overall happiness of a company. Make an effort to improve profits by taking on the right clients, not just more clients.

- John Hall, Digital Talent Agents

12. Keep More of the Money You Make

Brian MoranKeep more of the money you make! Strive to make sure that your costs are under control, make customers happier, and focus on stimulating repeat purchases from new customers. That doesn’t mean becoming a penny-pincher, but if you have costs that aren’t advancing your bottom line, cut them out! A business is only as strong as the money it keeps at the end of the year.

- Brian Moran, Get 10,000 Fans

SEE ALSO: Ask The Entrepreneurs: 14 Ways to Never Slack on Customer Service

Featured photo credit: Beautiful white ceramic piggy coin bank, money savings concept via Shutterstock The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world's most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

View the original article here

Thursday, December 29, 2011

The 12 Days of Giveaways: Day 7 – The David Allen Company

The most awesomest, ubiquitous capture tool around.Today is another day of Lifehack’s 12 Days of Giveaways where we feature some of the best productivity services, apps, and products that you can get your hands on. We really appreciate all of the entries so far this week and last, and after today’s awesome prizes from the David Allen Company we only have one week left. Don’t worry though; today there are three chances to win!

Before we get to what we and David Allen Company are giving away, let’s first announce and congratulate the winner of The Womack Company prize pack. Andrea Aresca, had this awesome comment here at Lifehack.org:

“I will be more INTENTIONAL in defining what I want to achieve in every “account” of my life.
I will be more SPECIFIC in describing the outcome of each one of my projects.
I will make the habit of FOCUSING a bit extra time daily on 1 very important thing I’ve chosen the day before.”

We at Lifehack hope that The Womack Company products are going to help you out in the new year, Andrea. Congratulations!

I’m very excited about today’s giveaway because I am a devout user of it and have been for about a year now. And, since we are in the spirit of giving, it feels great to share the awesomeness and ubiquitousness (it’s a word now!) of the David Allen Notetaker Wallet with 3 Lifehack readers.

First, The David Allen Company is a, “global training and consulting company, widely considered the leading authority in the fields of organizational and personal productivity,” as if you didn’t know. But, really, The David Allen Company and the GTD system (something that we are quite fond of here at Lifehack.org) are almost synonymous.

If you are a GTD follower in any way and have listened to Mr. David Allen wax about GTD outside of his books, then you have surely heard of his infamous Notetaker Wallet. The “evening module” or “UCT” (ubiquitous capture tool), as David Allen has aptly called the notetaker wallet, is a sturdy accessory with an awesome little paper pad and a “wicked cool” expandable pen. If you are a knowledge worker, or just someone that wants to get the next great idea, thing to pick up from the store, or current project’s next action out of your mind and into your system so you can concentrate on the work at hand anywhere you are, then you seriously need this tool.

Also, these wallets are super high quality. My Ballistics style wallet is the strongest wallet I have ever owned.

So, what are we giving away?

That’s right. The David Allen Company isn’t messing around and you won’t be either when you turn into a ubiquitous capturing machine with your new GTD Notetaker Wallet in 2012.

In order to enter to win one of the three GTD Notetaker Wallets, you need to leave a comment below or on our Facebook fan page that answers the following:

“How will the addition of a ubiquitous capture tool enhance your productivity this coming year?”

Leaving a comment on both our Facebook fan page and here at Lifehack.org will get you 2 entries, so but you need to give us two items that you like the most – no copying and pasting!

Employees of The David Allen Company and of Stepcase (including current independent contractors of both) are not eligible for this contest. The winning entries will be judged by the Stepcase Lifehack editing team and winners will be notified on the platform in which their winning entry was placed (either on the Lifehack.org Facebook wall or by email through our commenting system here on the website). For those entering the contest with a comment on our site, in order to be considered eligible, you MUST leave a contact email when leaving a comment (it’s the only way we’ll know how to contact you). Entries must be submitted by 10 am Eastern the following weekday (Monday 12/19/2011)  and winners will be chosen by 12 pm Eastern time on the same day. The winners will be announced the same day on Lifehack.org, and will be notified beforehand. The David Allen Company will ship you your Notetaker Wallet flat rate (even Internationally). The item will be marked as a “gift” and the winner will have to pay an taxes that are required by their country.

Good luck!

Chris is a developer, writer, tech enthusiast, and husband. He holds a degree in MIS and CMPSC from Penn State Behrend. Chris is also interested in personal productivity, creativity and how to use technology to get things done. Check out his writing at devburner.net or follow him on Twitter.


View the original article here

Wednesday, December 28, 2011

The 12 Days of Giveaways: Day 6 – The Womack Company


We’re at the halfway mark of Lifehack’s 12 Days of Giveaways holiday promotion and it’s been a great success so far. We’ve received plenty of entries with some great comments for each — it’s too bad we can only choose a limited amount of winners.

That said, there are still giveaways coming each weekday until the 23rd of December. There’s still lots of chances to take home something to help boost your productivity for the coming year, and we’re going to keep that going today with a giveaway from The Womack Company.

But before we get to that…here are the winning entries from yesterday’s giveaway.

Our questions was, “What text expansion or automation from TextExpander will save you the most time and why?”, and the two winning comments were submitted by Jasedit and Stef Gonzaga, who wrote (respectively):

“I have to write a daily status update for work, and it’d make my life far easier to be able to shortcut half the boilerplate. Plus I can imagine it making Markdown far easier to work with. Here’s to hoping!”

“Textexpander will save me time from inserting my byline for blog posts in HTML format, content for product descriptions, and shipping and billing info when shopping online. I sure hope I get a copy!”

Congratulations to both winners! Now…what’s up for grabs today, you ask?

Jason Womack and The Womack Company have a simple mission in mind:

“Improving your productivity, one day at a time, through implementing best-practices of psychology, sociology and technology.”

That’s it. Pretty simple, right? Not entirely…it takes a lot of expertise and the ability to inspire to see a mission like that through. The Womack Company has that in spades. The company has been around for nearly five years — not to mention that Jason Womack has worked with the likes of David Allen (among others) during many more years of study and service beyond that. The Womack Company focusses on workplace performance, individual productivity, talent development and continual improvement — and they deliver the goods to help those who work with them raise their games.

Now, The Womack Company is giving one Lifehack reader a chance to raise their game as well.

Today’s giveaway includes one copy of the following:

In order to enter to win this prize pack, you need to leave a comment below or on our Facebook fan page that answers the following:

“How do you plan to make your best even better for the coming year?”

Leaving a comment on both our Facebook fan page and here at Lifehack.org will get you 2 entries, so but you need to give us two items that you like the most – no copying and pasting!

Employees of The Womack Company and of Stepcase (including current independent contractors of both) are not eligible for this contest. The winning entry will be judged by the Stepcase Lifehack editing team and winners will be notified on the platform in which their winning entry was placed (either on the Lifehack.org Facebook wall or by email through our commenting system here the website). For those entering contest with a comment on our site, in order to be considered eligible, you MUST leave a contact email when leaving a comment (it’s the only way we’ll know how to contact you). Entries must be submitted by 10 am Eastern the following weekday and winners will be chosen by 12 pm Eastern time on the same day. The winner will be announced the same day on Lifehack.org, and will be notified beforehand.

Good luck!

(Photo credit: Three Colorful Arrow Signs via Shutterstock)

Mike Vardy is a writer, speaker, and "productivityist". You can follow him on Twitter, listen to him regularly on his podcast, ProductiVardy, and read more from him at MikeVardy.com and at Vardy.me.


View the original article here

Monday, August 8, 2011

How Congress Is Like My Company (stop me if you’ve heard this one before)

Watching how things played out in Washington recently, it all started sounding familiar. Too familiar. Some people like to say that private companies function better than government, but this latest display only points out how any large organization of humans, private or public will find ways to suck. Let’s review:

A lot of bold talk by leaders creates a crisis and a deadline that otherwise didn’t exist. At the end of June we were all made to work the weekend because the project absolutely had to go to senior management before the holiday break. Then when we finished, the CFO said “I won’t have time to look at this until August.” It’s clear that the two managers involved had created the deadline themselves in an attempt to impress the CFO, who, it turns out, doesn’t care.Macho posturing takes precedence over trying to get something done. How many times does your boss interrupt your work or make you postpone something so you can go to a meeting where he brags about how “things will be different”? Listening to bragging is the #2 waste of my time, after status meetings of course.Only in the last hours do people finally start to focus. While the project remains weeks away, there is no urgency from the boss to approve anything, even though the timeline says he’s already days behind and holding things up. Threats of late delivery fall on deaf ears until we’re a week away.Some leaders get worried it won’t be finished on time, so they begin efforts to shift the blame on others EVEN THOUGH IT HASN’T YET FAILED. This is a favorite of mine. There’s an account director who doesn’t really understand what we do, and she gets nervous as deadlines approach. Rather than giving us space to do our jobs, she tries to interfere and micromange. When we push back and our boss actually backs us up, then she walks around the office trying to point out how no one will listen to her, and the project is going to fail because our department is incompetent.As it is nearly done, people shift their focus towards efforts to take the credit, even though it is not yet done and could still fail. While we were waiting for a manager in another department to approve the changes to his section, he delayed for a day, and instead sent a note to the CEO and CFO saying how his department had really pulled together in the last minute to get the project done, and what a success it was. The only thing was IT WASN’T DONE YET.Finally it’s done and everyone hates it, but it gets pushed out anyway because not to would be admitting failure. Any project that requires compromise and has multiple bosses either dies a painful death, or is to big to fail and goes out a real stinker.Everyone promises to learn their lesson but nobody does. The day after the project ships, everyone meets to discuss what went wrong and how to avoid it. But I don’t know why we even take notes, because no one is ever held accountable, and we just repeat the same criticisms from all past projects.People continue to plot their next move to gin up a new crisis to make them look good and their rivals look bad, because the company’s interests don’t matter as much as their own. I’ve seen times when talented people are pulled off projects for some trumped up emergency, in an attempt to railroad the other manager’s project, and thus look better. I’ve also seen people hold back some key resource until the last minute so they can look like the hero. If someone in a cubical tried this, they’d be fired; but if you have an office, this is just politics as usual.

Anything I missed?

MeetingBoy, the anonymous man who unleashes bitter -- and funny -- rants about his intolerable boss and office life in general at MeetingBoy.com. You can also follow him on Facebook and Twitter, where he's amassed more than 130,000 followers.


View the original article here

Saturday, May 21, 2011

The search for cosmic company goes on

Cross-posted on Huffington Post When 2009 TED Prize winner Jill Tarter wished to “empower Earthlings everywhere to become active participants in the ultimate search for cosmic company,” we looked to the SETI Institute’s Allen Telescope Array (ATA).

With this telescope, Jill’s vision, and the power of open-source initiatives, we were able to globalize the search for extraterrestrial intelligence. Because we don’t know what a new signal will look like, it’s hard to create an algorithm to find it, and our own eyes actually work better than computers.

Regrettably, recent shortfalls in operations funding have put the Allen Telescope Array into a state of hibernation. While fundraising efforts are under way to remedy this situation, we must acknowledge this serious blow to the search for extraterrestrial intelligence. There is, however, one silver lining: over the past two years, the ATA has stored many terabytes of data in the Amazon Web Services Cloud, and a significant signal might be hidden amid this information.

Working together, and sorting through this data, we could still find it!

In collaboration with Zooniverse, a site that has launched many other citizen science projects -– inspiring volunteers to classify galaxies, explore the Moon and even to discover planets around other stars -– millions of people will soon be able to search the ATA data in hopes of finding a signal.

I can’t express how excited I am that Zooniverse will be working with Jill Tarter and the SETI Institute to develop a project that will unlock the secrets of the ATA archive. And when the ATA comes back online, the volunteers can work alongside Jill’s team in real time to sort through much more data — data that contains so many signals, it actually confuses the computers.

While the project will require some time before it’s up and running, I urge each of you to get ready to share your eyes … and help dig for a signal.

– Amy Novogratz

Bookmark and Share

View the original article here

Saturday, April 23, 2011

Built to Sell — Making Your Company Sellable


Waterfall in Aix-en-Provence, France. (Photo: Mat3270)

“Didn’t you write that you believed BrainQUICKEN couldn’t be sold?”

The question — a common one — was from writer John Warrillow and for an article in Inc. Magazine.

The embarrassing answer was “yes.” In 2005, I had assumed it was impossible to sell my then start-up and, as with most assumptions, I was dead wrong. I sold BrainQUICKEN in 2009 and learned volumes in the process.

For example: counter to expectations, I ended up caring more about lack of strings than maximizing price…

Several chess moves into price negotiation, after the suitor and I had arrived within 10% of each other, I offered to reduce the asking price 20% in exchange for the elimination of most “reps and warranties.” This would give me a clean break, financially and emotionally, and it would dramatically speed up the sales process. I don’t regret that apparent “concession” and would make the same decision in a heartbeat. If I’d been tied to the business, I doubt The 4-Hour Body would have been written.

Lessons learned, part deux: branding and customer databases are sometimes worth as much as defensible “hard” intellectual property. This realization eluded me for years, and in retrospect, it was ridiculous self-denial. Trademarks and distribution relationships can be sold at a handsome profit, both of which I’d undervalued, blinded by my own hands-in-the-air resignation related to lack of patents.

Silly rabbit.

John, on the other hand, provides the contrast. He has dodged these bullets multiple times, and done so by design.

John, you see, does more than write. He has started and successfully exited four companies, most recently a subscription-based research business sold to a publicly traded company in 2008.

From the standpoint of lifestyle design, John lives in Aix-en-Provence where he’s struggling to master French, “despite listening to more Michel Thomas than any one man should have to endure.” He’s built a location-independent life full of adventure for his family, rather than signing on to miserable consulting gigs or “earn-outs” pegged to acquirers.

How does he do it?

Moreover, how do you ensure your start-up or muse is sellable from the outset? Is it possible to create something “built to sell”?

That’s what this post hopes to answer, and it will discuss the recipe John has used for himself.

Enter John Warrillow.

When I first heard Tim had sold his muse, I was intrigued. Here was the swashbuckling lifestyle designer who has told us all to create a muse to finance our new lifestyle, and yet he was selling his.

I had to know more, so I interviewed Tim for a column I write for Inc. He explained: “Even though BrainQUICKEN was only taking a couple of hours a week to run, it felt like my brain was constantly running antivirus software, and I wanted to free up those cycles to think about other things.”

If creating a muse gets you into the Lifestyle Olympics, building a muse you can sell gets you a gold medal.  In this post, I’m going to talk about how you can turn your muse into a sellable company so that you have the world by the tail: you can sleep well at night knowing you’re sitting on a valuable asset, indulge in Ferriss-like “mini-retirements” while your business spits off cash and, when you’re ready, sell your muse to a third party—because, as Tim will tell you, the only thing better than a low-maintenance muse generating cash to fund your lifestyle is a no-maintenance bank account doing the same.

I’m going to define a “sellable business” as one that is not dependent on you to thrive. For anyone to want to buy it, your business has to be valuable even after you’ve left. I’m also going to assume you have a muse up and running. If not, refer back to Tim’s advice for creating a muse in The 4-Hour Workweek.

The first step in turning your muse into a sellable business is to reengineer your offering to ensure it meets three criteria important to acquirers:

1. It’s teachable

You need to be able to teach employees or suppliers (or be able to program technology) to do most of the work. That means the delivery of your product or service can’t be dependent on you showing up. If you have developed a yoga DVD and teach yoga classes, you can probably teach others to fulfill DVD orders, but your yoga classes need you. To create a sellable muse, focus on the part of your muse that can run without you.

2. It’s valuable

To create a sellable company, you need to have something others couldn’t easily replicate, which means you need to find a quiet niche without a lot of competition. Recently Tim highlighted Guerrilla Drum Making as a muse that provides customers a video on how to make a drum kit out of everyday products available at Home Depot. While there are a ton of on- and offline music stores, Guerrilla Drum Making has carved out a unique spot in the musical instrument market by helping handy parents and aspiring musicians build a drum kit that is both professional-looking and unique. It’s a nice little niche, one that will allow the owner to control how he gets paid, which is critical to increasing the overall value of a business—more on that in a minute.

3. It’s repeatable

The hardest yet most important part of turning your muse into a sellable company is building a recurring revenue model. When potential acquirers look at your muse, they’re going to want to understand how revenue is going to come in after you are gone. There are six basic models of recurring revenue. In order of least to most valuable in the eyes of an acquirer, they are as follows:

- Consumables: Tim highlighted Hewley shampoo in a recent post. This is a classic “consumable” product since most people need to buy a new bottle of shampoo every month or so. Once customers become loyal to a brand, the company begins to enjoy some recurring revenue.

- “Sunk-Money” Consumables: When you buy a Gillette Sensor razor, you’re much more likely to buy a five-pack of Gillette Sensor blades every month than to buy another brand because you have “sunk money” into the razor and have become invested in a platform.

- Renewable Subscriptions: More valuable than simple consumables in the eyes of an acquirer are subscriptions. In this video of Tim highlighting successful muses, he mentions Everyday Genius, where customers pay first and then get the product over the life of the subscription. Acquirers prefer the predictable nature of subscription revenue over the consumable model of recurring revenue.

- “Sunk-Money” Renewable Subscriptions: A muse ascends to the next rung on the value ladder when customers make an investment to become subscribers. I recently bought an Apple TV box and a $9.99/month Netflix subscription. I’m more likely to renew my Netflix subscription because I have sunk money into the Apple decoder.

- Automatic-Renewal Subscriptions: As valuable as a subscription muse is, an auto-renewal subscription business that has the right to bill customers until they say stop is even better. Unlike a traditional magazine subscription, an auto-renewal subscription means subscribers don’t have to make a conscious re-up decision each year, so the business is more likely to keep them around longer. For example, when you store documents with Iron Mountain, it just keeps billing you until you say stop.

- Contracts: The most valuable form of revenue is guaranteed into the future in the form of a contract. If you are lucky enough to get long-term contracts from your customers, include a “survivor clause” in them to ensure that the customer’s obligations “survive” a change in ownership of your company.

Think of the recurring revenue model as a ladder you want to climb to get the highest possible price for your muse when you’re ready to sell.

Once you have developed a recurring revenue model for your niche product or service that can be delivered without your involvement, the next step in getting the highest price for your muse is to rework your cash flow model so that your business stops sucking cash and instead starts blowing it out.

Here’s why: When acquirers buy your business, they need to write two checks: one to you and a second to fund your muse’s “working capital,” the everyday cash your business needs to meet its immediate expenses. The smaller the check they need to write for working capital, the larger the check they’re willing to write you for the purchase.

You want to change a negative cash flow cycle into a positive cash flow cycle. If you’re paying for inventory before you sell it, your company has a negative cash flow cycle. Try to shift your model so you charge up front or on a subscription basis so that your business generates cash as it grows. This will make it more valuable when you sell it.

In March 2010, Joe Mauer of the Minnesota Twins signed a contract that will pay him $184 million over the next eight years, making him one of the best-paid athletes of all time. One of the amazing things about Mauer is he combines two attributes rarely found in one player: a knack for both getting on base and hitting for power. The combination of these skills is expressed in a statistic called on-base plus slugging (OPS), which merges on-base percentage and slugging percentage—in Mauer’s case, an almost unheard-of 1.031 during contract negotiations. Mauer’s OPS—along with his three Gold Glove Awards and three batting titles—helped his agent Ron Shapiro sell Mauer’s value.

When you go to sell your business, like Mauer, you will need a set of statistics that will help make the case for how valuable your company is in the hands of someone else.  Tim has hammered us on this blog about the importance of metrics when growing your muse, so here are a couple of others to track as you shift your muse to the status of “sellable.”

- Addressable Market Size: How many people in your geographic market buy what you sell? For example, let’s say you have developed an English-language subscription for a yoga DVD series that is easy to ship within the United States. Your customers get four new instructional yoga DVDs per year, and you charge $99 annually. If three million Americans participate in yoga at least once per year, you could argue that your addressable market is three million people.

- Market Penetration Rate: What proportion of the target market have you sopped up, and how much is left for the potential acquirer to go after? Let’s say you have sold 3,000 subscriptions since you started your yoga DVD muse. Therefore, your market penetration rate is 0.1%, and an acquirer would realize there is still plenty of field left to plow.

- Cost per Customer Acquired: How much does it cost you to acquire a new customer? Cost per customer acquired further breaks down into cost per lead and your conversion rate. For example, let’s say it costs you $8 to get a lead from Google Adwords, and for every three leads you get, you close one subscription. In this example, your cost per lead is $8 and your conversion rate is 33%, so your cost per customer acquired is $24.

These statistics become the raw material you need to make the case of what your business will be worth in the hands of an acquirer. For example, let’s imagine a hypothetical magazine called Fit Girl has 800,000 subscribers. The publisher has heard about your yoga DVD subscription and is keen to diversify Fit Girl’s revenue away from the traditional magazine business. She calls you to see if you’re interested in selling your business.

Along with figuring out what she thinks your business is worth on the open market, she is also going to estimate what your business is worth to Fit Girl by making some assumption using the numbers you have been tracking:

- If 1% of the U.S. population likes yoga (your 3 million market size divided by the total U.S. population), then chances are at least 1% of Fit Girl subscribers—physically fit women—are into yoga. In fact, given the readership, Fit Girl might conservatively project its total immediate market for your DVD series to be more like 2% of 800,000, amounting to 16,000 subscribers.

- If you’re picking up subscribers through Adwords for $24 each without your brand being a household name, Fit Girl will reasonably assume it can do at least as well with the power of its name. So the publisher might conservatively use your $24 cost per customer acquired to model out what her cost will be to get the 16,000 subscribers: $24 x 16,000 = $384,000.

In this hypothetical example, Fit Girl would conservatively pick up $1,584,000 worth of subscription revenue at a minimum. And if the stock market is valuing magazine companies at two times their revenue, buying your DVD series would give Fit Girl an easy $3,168,000 ($1,584,000 x 2) bump in market capitalization, which might lead to how the publisher would think about what your business is worth in her hands.

Acquirers will, of course, want to use low-ball industry comparables to value your company. To get the highest price for your business, you’ll have to use your statistics to paint the picture of what the business is worth to them.

With a recurring revenue model for your niche product, you’ll be in a position to sell your muse. The only question left to answer is: when?

That’s a toughie, and only you can answer.

Maybe you’ll run your muse for years, indulging in amazing travel knowing you could sell when you’re ready. That’s a powerful position to be in. Maybe you’ll decide that, even though your muse is profitable and low stress, it is worth more to someone else than it is to you—which is when you’ll get the highest price for your business and minimize a soul-crushing earn-out.

Having all the cards in your hands starts by transforming your muse into a sellable company.

Welcome to the Lifestyle Olympics. Who’s shooting for the podium?

###

John Warrillow is the author of Built To Sell: Creating A Business That Can Thrive Without You to be released by Portfolio/Penguin on April 28, 2011.

You can take his “Sellability Index Quiz” to find out how much your business is worth at www.BuiltToSell.com.

Posted on April 18th, 2011


View the original article here