A total of 233 EO-member companies were named to the 2020 Inc. 5000 list of America’s fastest growing, privately held companies. We asked these elite leaders how being a member of EO has impacted their success. We spotted a common theme in many answers: learning—whether it’s incidental learning among peers or formal education at events. Learning to improve your leadership, your business practices, your focus, your relationships is a hallmark of EO’s benefits and a significant driver in the success of any business. Here’s what our members say about learning through EO. “EO has been a great resource for me—getting input or best practices from other members right when I need it is wonderful. I’ve also learned a great deal from the courses that are provided.” – Lynda Stafford, EO Southeast Virginia, founder and CEO, RMGS, Inc., No. 4,694 on 2020 Inc. 5000 “EO has been a life-changing experience for me for a lot of reasons. Having a local network of growth-minded business owners, pushes me to be better, provides different models of success, and gives me people I can bounce ideas off of. Five hours a month in our Forum meetings and three days per year on our retreat allow me to step back, reset my mindset, and look at the totality of my business. It also gives me a sense of being part of group, and not being alone in my issues. Going to the international events opens my eyes to the unlimited opportunities that exist around the world, and how many of these entrepreneurs are doing business around the world. I’m not sure I can put into words the difference it has made in my life, but I can say that I am not only a better business person, but a better husband, father and person.” – David Singer, EO St. Louis, founder and CEO, Warehouse of Fixtures, No. 3,091 on 2020 Inc. 5000 “The learning events have been very impactful in stretching my thinking. My Forum mates have been a very helpful sounding board for me—personally and professionally.” – Gregg Smith, EO St. Louis, founder and CEO, Pearl Solutions Group, No. 3,467 on 2020 Inc. 5000 “I am so fortunate to get to know and learn from the hundreds of EO members who I have met over the years, from all over the world. One common thread among the EO members who I really admire is understanding the importance of taking a step back from the day to day of running a business and running a life in order to reflect on what is important. I don’t see myself as a “success” in terms of reaching a quantitative goal. I think success is the ability to look in the mirror and to ask myself “Was I a good person today? Did I do my best to leave the world better than I found it today?” If I can answer “yes” to both of those questions, then that day was a success. But I have to do it again tomorrow. If I keep answering yes to those 2 questions, then in the long run, success will follow.” – Jeff Becker, EO San Diego, founder and CEO, Pegasus Cleanroom Services, No. 3,901 on 2020 Inc. 5000 “Being an EO member has made my leadership learning curve a lot smaller. By nature of the people that I surround myself with in EO, I’m always picking up leadership hacks, tips, and experience shares. This has allowed me to step out and lead the orchestra instead of playing in the orchestra.” – Anthony Ramirez, EO Chicago, founder and CEO, Lincoln Security Services, No. 2,463 on 2020 Inc. 5000 “Leading in EO taught me so much about leading virtual teams. Those lessons are paying huge dividends now as I lead our team remotely. I feel the experience of leading in EO and building teams remotely across the globe, gave me a huge leg up as we entered COVID lockdown.” – Brandon Dempsey, EO St. Louis, founder and CEO, goBRANDgo!, No. 4,827 on 2020 Inc. 5000 The post Inc. 5000 company founders share how being a member of EO has fueled their success appeared first on THE BLOG. via THE BLOG https://ift.tt/3kD8YkN
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Contributed by Jan Bednar , CEO and founder of ShipMonk. Many business leaders pride themselves on perpetuating the “workaholic” lifestyle. They assume that an always-on, always-available mentality is a prerequisite for success, so they slog through 80-hour workweeks and glue their eyes to their desks, laptops and cellphones. I take a different leadership approach. Instead of constantly immersing myself in work, I try to take several breaks every day, limit my availability for meetings and make time to travel. This allows me to get in much-needed rest and relaxation. More importantly, it helps me become a better leader and more innovative entrepreneur. When I unplug from the minutiae of daily business, I develop fresh ideas and perspectives.The line between a business leader’s personal and professional life is growing blurrier and blurrier with each passing day. A 2019 survey revealed that 26 percent of work is done outside of regular working hours. You can be sure that the COVID-19 pandemic and telecommuting have only made matters worse. If you aren’t vigilant about unplugging from work, you could spend your entire day putting out small fires instead of focusing on the big picture. These three tips will help you avoid falling into this trap: 1. Build a trustworthy team.To truly unplug, you need to know that work will continue to get done in your absence. Strive to hire self-motivated individuals who enjoy working autonomously and do not require constant supervision. Search for people who have led initiatives in the past. During job interviews, ask them to showcase their creative problem-solving skills. Research suggests companies that conduct problem-solving sessions with teams that are at least somewhat fluent in creative tools and resources brainstorm at least 350 percent more ideas than their counterparts—and those concepts are 415 percent more unique. Leaders must set a good example so that the trust flows both ways. For me, this means empowering my employees to take vacations, refraining from calling and emailing them when they are out of the office and discouraging them from working after hours. I also encourage everyone to turn off their phone notifications from 7 pm to 7 am. If you want your employees to allow you to unplug, you need to return the favor. 2. Structure your day.Routine and structure can provide the peace of mind needed to maneuver daily tasks with ease. Research finds that structure and routine can lower stress levels, boost productivity and increase focus—all of which can contribute to improved leadership. I do my best work when my days are structured into time clusters. On a typical day, I will devote two significant chunks of time to my most pressing tasks. I block these clusters out on my calendar so that my team knows I am unavailable, and then I tune out all distractions. I silence my cellphone, close Slack and ignore my email inbox until everything is done. Outside of these clusters, I make myself available for emails, phone calls and meetings. I also use this time to take breaks, unwind and have a little fun. Sometimes I will shut off for a few hours to watch a movie, spend time with my family or play video games. Regular clusters help me plan my engagement and focus levels accordingly, ensuring I’m at my best when my team needs me. 3. Step away from time to time.According to scientific studies, traveling broadens your mind and enhances your creativity. I love to travel—both for work and for fun. I believe that experiencing fresh environments and learning about different cultures helps me refocus my mind and develop new ideas. When I return to work after a trip, I always feel more productive and present. I try to unplug as much as possible when I travel. On my last trip, for example, I was in the Rocky Mountains without any cellphone reception, so I had a pretty good excuse to not look at my phone. I was traveling with a client, and we talked a lot about work. But because we were both outside of our typical office environment, these conversations felt different and more productive. It was refreshing to be in the mountains, sitting face to face with an entrepreneur who is absolutely crushing it in his field. We formed a friendship, and we learned so much about each other’s businesses. I must have come up with a half dozen new features for my product in the short time we were together. Don’t get me wrong: It is important for business leaders to be intimately involved in the day-to-day details of their companies, and sometimes this does mean working crazy hours. But if you make this the norm, you will miss the forest for the trees. Build a team that allows you to step away to recharge your batteries, and you’ll open yourself to new ideas and perspectives that can help your company thrive. Jan Bednar is the CEO and founder of ShipMonk, a technology company reimagining third-party shipping logistics. Bednar—a native of the Czech Republic—moved to America to attend Florida Atlantic University, where his entrepreneurial interests piqued enough to start BedaBox, a shipping startup that became the ShipMonk’s predecessor. Bednar lives in Deerfield Beach, Florida. The post How getting away from your desk can make you a better leader appeared first on THE BLOG. via THE BLOG https://ift.tt/3kpOMD0 Contributed by Darren Hockley, managing director of the UK-based e-Learning provider DeltaNet International. According to the UK’s Office for Naitonal Statistics, (ONS) almost one in five adults in Great Britain are experiencing some sort of depression during the coronavirus pandemic. As business leaders, we would be amiss to ignore the impact this will undoubtedly have on our workforce, bearing in mind a staggering 70 million working days are lost each year in the UK due to mental health problems—and all signs point to this figure rising. More than this, as employers, we shouldn’t forget the duty of care we owe to our employees. Indeed, it’s one of the reasons health and safety training exists: All reasonable steps must be taken to ensure the health, safety, and wellbeing of those in our employment—and this includes mental wellbeing. Mental healthMuch has been said about COVID-19’s impact upon our physical health, and without diminishing the devastating physical impact the infection can have, it’s important we also note the widespread feelings of helplessness and anxiety brought about by the pandemic. As news outlets report further lockdowns, rising infection rates, and more job losses, it very well could be the case that COVID’s second wave includes the advancement of mental illness, not just infection. For many, the world is no longer safe and predictable. Our employees may be worried about their loved ones, their finances or returning to work amidst a second wave of coronavirus. They may be struggling to stay motivated at work or facing feelings of isolation whilst working remotely. As business leaders and entrepreneurs, there are steps we can take during these unprecedented times to support our employee’s mental wellbeing and pull our business through the pandemic. Below are tips to help business leaders encourage positive mental health, maintain productivity and comply with UK laws. Equality and diversityUnfortunately, COVID-19 has shone a harsh light on workplace discrimination. Working mothers are 47 percent more likely to have permanently lost their job or quit during the pandemic, and the Equality and Human Rights Commission (EHRC) issued a warning to employers about unfair treatment of disabled employees during lockdown. Remember, UK’s Equality Act 2010 is still in force and directs that employers’ decisions in response to COVID-19 must not directly or indirectly discriminate against employees with protected characteristics—and this includes many people with mental health conditions classed as a disability under the law. Now is a good time for managers to update risk assessments to consider the impact of coronavirus on specific groups of employees, and to mitigate these risks by taking into account the needs of individuals. For instance, scheduling virtual drop-in sessions for remote workers battling isolation and loneliness, or easing anxiety by expanding flextime options to allow vulnerable colleagues to travel when it’s safest for them. Promote learningResearch proves that learning is good for wellbeing: It increases our self-esteem and feelings of hope and purpose along with it. In a workplace environment, setting targets and hitting them creates positive feelings of achievement, satisfaction and optimism for employees. This is how learning is linked to business growth—it boosts productivity. In the current situation, then, learning and development (L&D) can offer a means to help keep members of staff engaged with current trends and industry developments. Whether they’re learning new skills, refreshing compliance knowledge or simply keeping up to date with activities affecting the daily operations of the company, L&D is good for busines as well as advancing your mental health strategy. Remember, your company can only succeed if you have a motivated workforce. Involve your employeesDon’t be afraid to involve your employees in the conversation at the moment. Everyone at your organisation benefits from de-stigmatising mental health, and managers ought to set the tone from the top by demonstrating healthy behavior and keeping lines of communication about the pandemic (or any other worries) open. Consider hosting small, virtual opinion groups or wellbeing committees to help break silence surrounding feelings of stress, depression or anxiety. Some businesses have even trained key members of staff in mental health first aid so employees know who to turn to in times of crisis. Similar to physical first aiders, mental first aiders act as a first port of call for staff experiencing mental health issues or emotional distress. Trained to listen and communicate non-judgementally, mental health first aiders can spot the warning signs and symptoms for a range of mental health conditions and encourage staff members to seek appropriate professional support if necessary. Look after yourselfDemands on business leaders have been high since March 2020. The coronavirus pandemic is the greatest economic challenge we’ve faced since World War II, and those at the business helm have had to respond with speed and flexibility in an ever-changing and uncertain landscape. Pair this with the pressures of industrial slowdown, and it’s all too easy to see how company leaders might have put the needs of the business above their personal needs and wellbeing in the current situation. However, doing so for prolonged amounts of time won’t help matters much. It’s important that those focused on building their empire don’t ignore the signs of stress, but instead equip themselves with the tools to recognise and manage it effectively. Doing so will not only model positive behaviour for your staff, but, as head of the ship, it will help keep your vision sharp and your reflexes intact. Darren Hockley is the managing director of eLearning provider DeltaNet International. The company develops engaging compliance and health and safety eLearning courses, as well as tailored training solutions, designed to mitigate risks and improve employee performance. The post Coronavirus is causing a mental health pandemic appeared first on THE BLOG. via THE BLOG https://ift.tt/35hTcFL Renee Rouleau, an Entrepreneurs’ Organization (EO) member in Austin, Texas, is the founder and CEO of Renee Rouleau Skincare. She’s a thought leader and esthetician whose products and personalized skincare are respected by celebrities, bloggers and beauty enthusiasts. We asked Renee about her entrepreneurial journey and her strategy for continuing to love her work. Here’s what she shared. Renee Rouleau’s eponymous skincare company is growing steadily—at a controlled pace. And that’s just how she likes it. She doesn’t believe bigger is better. “I’ve always wanted to build a great company, not a big company,” Rouleau shares. “People say yes to opportunities because they’re flattered. Or it would seem foolish for them to say no to an opportunity. They think, ‘More money, more growth!’ And after all, who doesn’t love opportunity? It’s the entrepreneurial spirit,” she explains. “But I’ve seen too many people say yes to things that sounded great in theory. Once the honeymoon phase wears off, it ends up not being great.” 1. Trust your instinctsAs an example, Rouleau tells the tale of a high-profile celebrity who wanted to do a skincare line with her: “I had an opportunity to do a skin care line with a high-profile celebrity. She wanted me to do it with her. Her team didn’t think she needed me. They thought her star power and her name alone would do it. Later, they came back and wanted to involve me.” It was a great opportunity and would’ve meant more money and a great brand opportunity for brand exposure. But Rouleau said no to the opportunity. Why? “This celebrity was not only my client, she was my friend. I said, ‘No, you don’t do business with friends.’ Business gets ugly sometimes, and I didn’t want to jeopardize that relationship for the sake of business. I wasn’t going to do it just to make her happy. It would’ve been fun, but it wasn’t worth the risk of losing a friend.” Ultimately, the celebrity launched the skincare line on her own, and it failed. “I’m glad I said no; we’re still friends and she’s still a client and that’s the most important thing to me. I know the landscape of the skincare industry. And a big part of saying ‘No’ was my experience and a gut feeling that it just didn’t feel right.” 2. Never be scared to askThat brings up an interesting question that Rouleau often gets: “A lot of people want to know how I connected with my celebrity clients in the first place. That’s fairly simple. If you don’t ask, you don’t get.” “When I was first starting out, I would dig around to locate their contact information and get in touch with them and just ask if they’d like a facial. There’s nothing magic about it. It wasn’t who I knew or anything like that. I went on their IMDB page and found out who their manager or publicist was. And then I just asked,” Rouleau shares. “The worst thing that could happen is that they just don’t respond. But it’s like fishing—every once in a while, you get a bite. I just reached out and asked if they wanted a facial, and that method worked a surprising amount of the time.” 3. Know the flowSo, what’s it like having celebrity clients? “When you’re a celebrity aesthetician, you have celebrity clients. And the life cycle of a celebrity career can be challenging. When you have a celebrity client, you can use their name as long as they allow you to do so. And when they’re hot—on the red carpets and going to premiers—they’re shouting your name from the rooftops, and you get publicity and attention. But, between movies or events when they’re not doing anything in their career, they’re not getting as much press. Media wanes.” “Some celebrities will hit it big, others won’t. If they hit it big, I’m carried along for that ride, and hopefully they’ll be talking about me and my products. If they’re in a slump, or they never hit it big, they’re not talking to media as much. When they’re hot they’re hot, when they’re not they’re not.” 4. Be choosey“I’m very careful about which clients I choose to take on. I have a list of questions that I go through when making that decision. I have to really like them, enjoy being around them, and I have a strict ‘no diva’ rule. Also, I take into consideration where this person is in their career. Many times, when I bet on the up-and-comers, they love that I believed in them and that’s a really strong basis for our relationship.” 5. Prioritize trust“Whether you’re working with an up-and-coming celebrity or an established one, the most important lesson to realize is that it’s all about having their trust. You can’t sell out and talk about them with the gossip magazines or you’ll jeopardize the relationship and your reputation.” “And the gossip magazines definitely reach out, offering to pay me to talk. They promise, ‘We won’t use your name!’ But my answer is always no. My clients trust me, I’ve given them my word. It would never be worth it to break that trust. You have to stand strong if you want to have—and keep—celebrity clients!” For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog. The post How I landed celebrity clients—and why they stay appeared first on THE BLOG. via THE BLOG https://ift.tt/3lOqWAY Contributed by Dr. Gleb Tsipursky, disaster avoidance expert, speaker and author. The COVID-19 coronavirus pandemic has changed life as we know it, as well as how we manage our households. While being shut mostly in our homes or observing infection prevention guidelines when leaving our house, it can be pretty hard to grapple with the reality of the world in which we now live. And yet, this is what we must all do to survive and thrive in this new abnormal. Same home, different house rules?Susan is an entrepreneur, EO member and current coaching client of mine. She reached out to me for help because her household was having a difficult time adjusting to the long-term impact of our new pandemic reality. As the founder of a 20-person startup in the medical devices industry, she was used to a routine and thrived by keeping her work life separate from her personal life. However, as the months of staying at home went by, her relationship with her husband, who was the main caretaker of their 9-year-old child pre-pandemic, started to erode. She found it difficult to concentrate on her startup due to frequent interruptions from her husband and child, and she found herself becoming more and more curt with them. It was hard enough when school was cancelled in the early months of the pandemic, as well as summer camp. When Susan learned that in the fall her son’s school would be online only, she knew she needed help. She called me after reading my article written for EO’s Inc. channel about the challenges of entrepreneurs failing to treat the pandemic as a marathon and instead approaching it like a sprint. When I met with Susan over Zoom, I told her that there were some essential steps that she needed to take in order to adjust to the new COVID-19 reality. Know and face this new abnormalFirst and foremost, we won’t get anywhere if we don’t face the facts. We need to acknowledge that COVID-19 fundamentally disrupted our world, turning it upside down in a few short weeks in February and March 2020. We have to move past the discomfort of the normalcy bias and our intuitive feeling that the novel coronavirus will disappear and we can just get back to normal. Regrettably, it will not disappear; believing that it will helped get us mired so deep in this mess, making the US outbreak the worst in the world in terms of the number of deaths. The normalcy bias is one of over a hundred dangerous judgment errors that scholars in cognitive neuroscience, psychology and behavioral economics like myself call cognitive biases. They result from a combination of our evolutionary background and specific structural features in how our brains are wired. These mental blindspots impact all areas of our life, from health to politics and even shopping, as a survey by a comparison purchasing website reveals. How your household can survive and thrive in the pandemicSo how can your household effectively adapt to the uncertainty and dislocation that accompanies this new abnormal? While you’re in a new abnormal, your underlying needs and wants remain the same. You must figure out different ways toward satisfying them. You might have heard of Abraham Maslow’s theory of human motivation and the pyramid of needs based on his work. More recent research, summarized in Scott Barry Kaufman’s excellent book Transcend: The New Science of Self-Actualization, revises this model to show that our fundamental needs consist of safety, connection and self-esteem, and we will feel deprived without them. We also have needs that help us achieve our full potential through personal growth, what Maslow called “self- actualization” and what Kaufman more clearly defined as exploration, love and purpose. A good approach to adapting to the new abnormal is evaluating your life through the lens of these needs and ensuring that you can still satisfy them. Connect to othersThe most challenging element for Susan stemmed from the fundamental need of connection to others. It’s a topic I describe in much more depth in my book, The Blindspots Between Us: How to Overcome Unconscious Cognitive Bias and Build Better Relationships. First, consider your immediate connections with members of the household. If you have a romantic partner in your household, you’ll have to figure out how to interact in a healthy manner given that you’re likely together 24/7. You’ll get into each other’s spaces and on each other’s nerves. It’s much wiser to anticipate and work out these problems in advance than have them blow up down the road. The same principle applies to other members of your family. If you have older children who moved home after university closed, or younger children who aren’t going to school after it closed, you’ll need to figure out how to deal with them being cooped up inside. This includes staying in touch with their schools to get updates on online school work. You’ll have to put more thought into dealing with older adults over 60 or anyone with underlying health conditions in your household (including yourself if you fit either category). Given their much greater vulnerability to COVID-19, you and other members of your household need to take serious measures to prevent them from getting ill. That means being more careful yourself than you would otherwise be, since over half of all those with COVID-19 have no or light symptoms. Second, what about your connection to those who you care about who aren’t part of your household? Your romantic partner might not be part of your household. Depending on how vulnerable to COVID-19 you and other members of your household might be, you might choose to take the risk of physical intimacy with your romantic partner, but you have to make this decision consciously rather than casually. Or you might choose to have a social-distance relationship, meeting at a distance of 10 feet or by videoconference. During one of our coaching sessions, Susan said she hadn’t realized how strained her relationship with her husband was until I had pointed out the need for healthy interaction while being together 24/7. After our talk, she sat down with her husband to have a serious conversation about the situation. Together, they decided to stick to their own separate routines, have their own spaces apart (with Susan spending time at her home office and her husband and child spending the days accomplishing school work in the living area), and come together as a family after the workday is done—as they would have before the pandemic. Soon after, they also sat down and talked with their young child regarding COVID-19, remaining calm and simply discussing what they, as a family, needed to do to stay healthy. Due to their reassuring manner, their child expressed more willingness to open up to them about any worries he might have regarding the pandemic. ProgressTowards the end of our coaching sessions, Susan informed me that she had finally established a balanced work-life routine that suits her and protects her relationships with her loved ones. While the new abnormal ushered in by COVID-19 has brought unprecedented changes to our lives, there’s no reason you can’t survive and thrive in the new abnormal while we wait for a vaccine. You just need to identify, anticipate, and take care of your fundamental needs. As CEO of Disaster Avoidance Experts, Dr. Gleb Tsipursky is on a mission to protect entrepreneurs from dangerous judgment errors known as cognitive biases by developing the most effective decision-making strategies. His newest book is Adapt and Plan for the New Abnormal of the COVID-19 Coronavirus Pandemic (2020). The post How entrepreneurs can balance work and family to survive and thrive during this pandemic appeared first on THE BLOG. via THE BLOG https://ift.tt/350LcZq Contributed by Shawn Johal, business growth coach, leadership speaker and co-founder of DALS Lighting, Inc. He is also an active member of the Entrepreneurs’ Organization (EO) Montreal chapter. “The secret of getting ahead is getting started.” –Mark Twain Many entrepreneurs I meet have incredible stories about the way they started their businesses. Some had a wild idea and found a way to sell it; others accidentally bumped into an opportunity they were able to seize and monetize. Rare are those who spent months planning with a highly detailed strategic plan filled with metrics and key performance indicators. My own journey started in the toughest of circumstances. My wife’s family had started a business. They were able to take it public and experienced exponential growth within eight years through mergers and acquisitions. The business was a true local success story. Then the recession hit. The company was ill-prepared to handle the pressure of reduced revenue with growing expenses. Within 18 months, all was lost. It truly felt as if life were ending for us. My brother-in-law and I did the only thing we could think of: Buy some of the remaining assets and start our own thing from scratch. I wish I could say we had exceptional vision and knew we were building “the next big thing.” In reality, we were naive and just doing our best to survive. No bank would even consider us for financing, so we had to find a way to make it all work. A tough situation to say the least. After years of working tirelessly and getting (pushing) our business onto the right track, we achieved stability and have been able to sustain growth several years in a row—but many mistakes were made along the way. Still, today I may be slightly underplaying it: There were numerous major challenges, each of which on its own could have spelled the end of our business entirely. We made it through, but with a ton of battle scars. And like most entrepreneurs, we wear those scars as a badge of honor. I look back and wish I had known certain things which would have made my entrepreneurial journey a little clearer, smoother and better poised for success. Here are four lessons I wish I’d known as an early-stage entrepreneur. 1. Understand the NumbersThe numbers: One of the most important aspects of any business. So many young entrepreneurs only look at certain financial metrics which they deem relevant. In reality, cash flow means everything; margin will only take you as far as your bottom line expenses will. For the longest time, we struggled with cash flow. We didn’t understand the “Cash Conversion Cycle” of our business—the amount of time it takes for inventory to turn into actual cash in the bank account. We assumed all was under control until we calculated our cycle took eight months! That is an excessive amount of time. We were paying deposits to suppliers and getting paid in 90 days from key customers. Our structure was unacceptable and it stretched us thin, causing a massive cash crunch. We put all of our efforts in improving this crucial metric. We consolidated and then renegotiated with all of our suppliers month after month. We found ways for our customers to pay quicker. In the end, we achieved a six-month improvement in our cycle, which solidified our cash position. 2. Implement Processes—EarlyMany businesses wait years before implementing clear processes. Or worse, they wait for a catalytic event to cause massive issues and play defense as a result. Our business was no different. We waited and waited, not giving process any attention at all. Then we suffered huge consequences. We work with many key suppliers. When we pay for our goods, they are released by our suppliers and delivered to us. It was straightforward: We were sending money and getting the merchandise. Eventually, we went to visit our partners. We quickly discovered there had been massive fraud and the money we were sending was going to a criminal. The supplier kept releasing the merchandise based on the blatant lies of this criminal. The discovery left all of us in shock. We came to realise we had approved a bank account change from our supplier without any proof. The criminal had done his dirty work and we didn’t question anything. We lost a six-figure amount, setting our business back months. We had to make a desperate deal with our supplier to save us from massive issues. Since then, we have implemented a foolproof process that requires several checks before changing bank accounts. We are incredibly careful and well-organized. Processes abound in our business. Living through that tough experience taught us a lot, and I would prefer to help others learn from my mistakes and avoid the same frustrations. Implement processes. Build safeguards. 3. Hire Slow + Fire Fast = Company Culture is EVERYTHINGWhen we launch a company, we often hire friends, family or any person willing to take a chance on us. It’s normal, part of the game. I did the same. Today, I spend a lot of time teaching young entrepreneurs the importance of hiring “A” players from day one. The quality of your people will determine the strength of your culture, which will determine the success of your business. It is crucial to find individuals who are an excellent “values” fit for your company (yes, that means you need to define core values from the outset). What happens when you hire according to your values? The following will happen: Eventually, the company will either outgrow your existing employees because they weren’t the right people from the start, or your culture will erode and you will feel stuck. In both cases, big decisions will be forced. In our business, in year three, we realized our team did not fit our plans in the least. We had kept all employees from a previous failed venture, never questioning compatibility. We simply took on (more or less) whoever knew the job and needed to work. In the ensuing five years, we changed 85 percent of our team. Yes, 85 percent! Sounds hard to believe, but it was done slowly, step by step, integrating true team-players who understood what we were trying to accomplish. We now have what I consider to be one of the absolute strongest teams in our industry and a rock-solid company culture. 4. Take time and BREATHEWhen launching a new business, things will move at lightspeed. Decisions will be made hastily to ensure survival. This is completely understandable. But there is an opportunity to do things differently. I strongly recommend taking a step back. Think strategically. Implement a proven hiring system to hire only the best people from day one. Build processes and stick by them. Create a vision of the business of your dreams and take the right steps early on to lay the foundation for that vision. Hire a coach if you can afford it. All of these decisions will ensure the viability and success of your new venture. You will have to make these moves eventually—and delaying them will only delay your business’ growth and your personal growth. Why not start now? Shawn Johal is a Scaling Up Certified Coach currently working with several entrepreneurs and their businesses to help accelerate their growth, while finding personal balance and happiness. The post 4 things I wish I knew as a young entrepreneur appeared first on THE BLOG. via THE BLOG https://ift.tt/3dePlg4 Contributed by Noah B. Rosenfarb, a member of the Entrepreneurs’ Organization (EO) and a certified public accountant who helps entrepreneurs increase cash flow, sell their companies successfully, manage their wealth and create predictable passive income. 1. Invest in YourselfWe all invest our time and money in people and things. The best investment for entrepreneurs is always going to be in themselves. This could mean your health, education, well-being or relationships—anything that can fine-tune and improve your life will bring the highest return on investment because the cost is often very small. Invest in yourself in both small and big ways. For example, hire a housekeeper so that you can stay focused on higher-value tasks. Get a massage every week to relax. Spend time with your family without distractions. Often, prioritizing time to exercise your body and mind will produce great returns. Giving yourself set times to think and focus is a valuable investment. Look at the schedule of the world’s wealthiest entrepreneurs and you’ll uncover that comprehensive wellness is a high priority. My best personal investments include memberships in EO and YPO, coaching programs, mindfulness training, as well as reading a book a week and taking three workdays each month to enjoy alone time with my wife. 2. Invest in Your BusinessIf you can’t create the highest return on investment in your present company—then maybe you should rethink continuing to operate your business. Entrepreneurs should flow to the area where they can generate the highest returns on time and money. When you think about investing in your business, consider adding talent and equipment. Look toward creating new sales and marketing structures that perpetuate your sales cycle. Oftentimes, entrepreneurs focus almost exclusively on top-line revenue growth that will lead to bottom-line profit gain. However, it is still critically important to focus on risk factors in one’s business. All companies are sold using a simple formula of earnings times a multiple. The multiple is driven by the risk factors inherent in the business. If we can reduce the risk factors, we can increase the multiple. Sometimes, decreasing the risks provides greater returns than one can achieve by focusing on increasing profits. This is especially true in the years leading up to a sale. My most productive recent business investment has been building our back office team in the Philippines, which expanded our capacity at half the cost of a team in the US. I’ve also generated a surprisingly high return from content creation and social media. 3. Invest in Tax StrategySuccessful entrepreneurs may not realize that their single biggest personal expense is their income taxes. By evaluating options to lower their taxes, entrepreneurs can often increase their net income anywhere from 10 percent to 50 percent with only small changes in the way that they operate their business and personal life. This increased cash flow, if reinvested wisely, can dramatically impact your future. We believe that once an entrepreneur is making more money than they need to cover their living expenses, then they should be focusing on building their tax structures. Our most effective tax strategy was to open two businesses in Puerto Rico, where we pay only 4 percent in corporate taxes. We also structured these companies to be owned by a Roth 401k plan, so we never pay taxes on our dividends and we can invest our profits tax-free for our lifetime. 4. Invest in Real EstateReal estate is another area where entrepreneurs should allocate capital. Real estate can often be used to house the business of the entrepreneur. I’ve seen many instances where the entrepreneurs’ net proceeds from the sale of their real estate are greater than that of the sale of their business. Real estate has many qualities that enhance its attractiveness, including tax benefits, the ability to use as leverage, inflation protection and more. My real estate strategy is to buy apartment complexes where we can implement our Infinite Return model. 5. Invest in Life InsuranceEntrepreneurs too often dismiss investing in life insurance structures. Most life insurance is sold, not bought. Unfortunately, that creates a conflict of interest for the person that educates the entrepreneur about the insurance. When an entrepreneur purchases life insurance, the advisor receives a big commission. That is definitely something to be aware of, but life insurance is an incredible tool that can be used to enhance an overall financial plan. One thing most entrepreneurs don’t realize is that banks will pay the majority of insurance premiums on their behalf. This can create positive leverage that produces net returns that can rival real estate investments while also providing protection to the entrepreneur’s family if they die unexpectedly. I purchased my first whole life insurance policy at 27, before I had children, as a place to park cash that I could borrow as needed. I purchased term insurance when my kids were born to make sure my family could live the lifestyle I created even if I died. More recently, I’ve used premium financing to acquire insurance that will provide me with tax-free retirement income. 6. Invest in Private DebtHigh-performing entrepreneurs have good cash flow and little need for ongoing significant liquidity, especially if they’ve been able to establish lines of credit. As a result, we find entrepreneurs often have more cash and liquid investments than they need to accomplish their goals. By allocating their conservative investments to private debt instead of publicly traded bonds, the entrepreneur trades liquidity for a higher yield. Often this results in 3 percent to 6 percent per year of additional returns. I started a private debt fund in 2011 to take advantage of this reality for my family and our clients. We make short term loans where the borrower can use our capital to make more money for their business. Often the collateral is real estate, purchase orders, accounts receivable or even business equity. 7. Invest in Other CompaniesWhen entrepreneurs have succeeded in growing their own business, they may find value in investing in other people’s companies, either actively or passively. Private equity returns are some of the highest of any asset class, but they also come with significant risks and a greater standard deviation between return expectations. In layman’s terms, that means a lot of people lose money investing in companies. The best private equity investors can make 30 percent or greater annual returns. It’s critical to develop your own opportunity filter so when you begin to seek investments, you know precisely what to look for. I built a unique company, FIGI, that enables me to invest in online businesses using the power of a royalty structure. I also hold significant minority interests in small private companies where I provide strategic advice, but have no role in daily operations. 8. Invest in StocksI would be remiss to not suggest that entrepreneurs also should build a diversified portfolio of publicly traded stocks. Over time, publicly traded companies produce average returns that exceed inflation by 4 percent to 8 percent. The primary advantage of stocks over the above items is the ability to sell them and generate cash within days. Compounding your investments in public companies over a lifetime should result in significant wealth creation. Personally, I have avoided building a portfolio of stocks and bonds because I haven’t found value in the liquidity it can provide. My cash flow exceeds my lifestyle expenses and if I had an unexpected need for capital, I have sources I could use (like my life insurance or my home equity line of credit) to tide me over. Still, my family office has deep expertise in constructing and managing portfolios of stocks and bonds for our clients. For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog. The post To succeed as an entrepreneur, make these 8 investments appeared first on THE BLOG. via THE BLOG https://ift.tt/2SDQMLO Devin Salinas joined the Entrepreneurs’ Organization in early 2020. As a wealth management advisor and managing director at Northwestern Mutual Santa Monica, he’s seen the need for financial planning grow during the pandemic. What is your advice during this time of uncertainty?Seek professional advice. Financial success is built on a foundation of discipline and consistency. One of the best pieces of advice I ever received—and that I consistently share with my clients—is that we should never make long-term decisions based on short-term emotions or circumstances, particularly when it comes to our finances. A financial plan should never be set in stone, and especially in times of turbulence it’s important to have a relationship with a team that understands your goals and can help navigate the ups and downs. What is your specialty?Integrated comprehensive financial planning. It’s not about picking investments or buying insurance products; it’s about combining investments and insurance tools through a written financial plan that helps our clients achieve their goals as efficiently as possible. How has your business changed during this time?We are growing! While much of the financial sector and global economy is contracting, we have more demand than ever to serve our clients in the local community. We’re committed to continuing to bring in top talent to help us serve our new and existing clients. Should people continue to save for retirement during the pandemic?Absolutely! One of the biggest mistakes people make is trying to time the market. It’s nearly impossible to pick the exact right day to get out of the market and certainly to try to time when to get back in. History has shown that time spent in the market rather than timing the market has been a true driver to success. What’s most rewarding about your work?Seeing our clients actualize their vision. There is nothing more rewarding than helping our clients pay for college, transition into retirement with confidence or plan to transfer their hard-earned wealth to the people and causes they care about most. For more insights and inspiration from today’s leading entrepreneurs, check out EO on Inc. and more articles from the EO blog. The post Financial planning during a pandemic appeared first on THE BLOG. via THE BLOG https://ift.tt/30rIyKV |
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November 2020
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