Among the many offerings of CEDF’s business advisory services as explained on our website is this phrase: “…management of emotional components of business ownership.” This example serves not as a claim that our business advisors are miraculously competent clinical psychologists but to point out that one of the most under-appreciated and under-discussed challenges of small business ownership is handling the stress and tension of confronting the day-to-day problems.
It’s easy to admire an athlete playing well beyond the age of his teammates – he’s nearly the oldest player in the league. With that must come not just physical resilience but tremendous mental toughness to look beyond the crisis of the moment – 3rd down and 20, or whatever.
Notice how the man seems to become more inspiring to his teammates and more dangerous to his opponents when there is precious little time left on the clock and the game is on the line. But he always gets there by his own simple advice. If you haven’t clicked the link above to see what that is, do it now. Your game may be on the line soon.
There’s a well-worn business story, likely worked over by the internet to the level of urban legend. The tale’s wisdom makes it much too good to debunk. Thomas J. Watson, the CEO of IBM supposedly is confronting an employee over a very expensive mistake. The employee naturally expects to get fired, but Watson is said to have replied, “Fire you? I just spent $$$$$$$ (legendary amount of your choice) educating you.”
Small business owners aren’t usually the victim of an employee’s million dollar mistake. Or at least none survive to recount the story. But serious and costly errors do occur. The question is how to respond. Retribution? Sanctions? The options may be limited by employment law, if not practicality.
It may be hard to take much of a leadership lesson from an executive who last worked for the corporate giant in 1956. A more contemporary and easily appreciated storycomes courtesy of Philadelphia Eagles quarterback Nick Foles. This article recounts how he counseled receiver Alshon Jeffery recently after he missed what could have been the game-winning catch. You don’t have to follow football or be familiar with the Cinderella story of the Eagle’s Foles to admire his reaction to his devastated teammate as he processed his own disappointment at losing the big game.
This episode allows business owners to ask themselves whether they could control their own anger and disappointment over a big loss and instead use compassion and long-term thinking in the recovery.
The work, worry, and sacrifices required of those going into business is not much of a secret. Any entrepreneur paying attention knows they will be in for an experience with the potential to drain their health, wealth and heart. So why don't more small business rookies look for a partner to share the burden? This article describes five reasons that connecting with a partner may be a smart move and four realities that should make you think twice.
To these lists let's add some additional considerations. Among the reasons listed in CEDF's Financial Fundamentals course for why some businesses fail is: Too dependent on a collaboration. Partners can be great until you no longer have a partner's critical skills contributing to the operation, and that will probably be combined with insufficient cash flow to replace the talent. Then you might be doomed.
If you imagine, instead, that your operation would be better if you lost your partner, then either a wrong choice was made or the collaboration was unnecessary from the outset.
Settling the wisdom of taking on a partner or not should be a matter of simple arithmetic.
Does one plus one equal more than two? In other words, is the combination of talents likely to create more productivity than the sum of the same individuals working at identical endeavors alone? This might be because of a game-changing innovation that collaborators produce. Or it might be because of scale. The work required to get a foot-hold in an industry might simply need to operate at a speed higher than a single person can generate.
Or is the partnership a substitute for lonesomeness that could be better solved by just turning on the radio?
When personal computers began making their way into businesses in the late 1980s the country saw a huge boost in productivity and companies quickly became reliant on their cyber-servants and the information and crucial processes they controlled.
In those days, a computer crisis almost always involved a technical failure of a component and/or the ineptitude of a human being who failed to make a data backup or triggered the erasure of records. Those problems still exist in varying forms but the biggest worry now is the malicious intent of human beings, whether inside our organizations or hiding in some distant cyber “back alley” waiting to burglarize and seize control of our systems.