Berkonomics

Selling your business? Find the emotional buyer

Berkonomics

This is one of my favorite insights, since I lived this one in a positive exit from my computer business. Types of business buyers expanded. Most people will tell you that there are two kinds of eventual buyers for your business: financial and strategic.

Why not share your liquidity success with those who got you there?

Berkonomics

So, you are close to selling your company, and counting the profits a bit early. Well, that’s human nature. Here’s a thought for you to recall later when and if the event happens. Remember those who got you there.

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Could you be your company’s bottleneck?

Berkonomics

So many tasks; so little time. As a manager, you have a number of critical tasks that are general to your position as opposed to specific to your industry.

Do you even know what questions to ask?

Berkonomics

Great executives and managers seem to intuitively know what they don’t know. But it is not at all uncommon to not even know what questions to ask. Who would have thought about COVID 19 and public’s panic responses? Image credit: Alexas_Fotos / Pixabay.

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Remember the FAIRNESS doctrine

Berkonomics

Reduce the emotion; reduce the threat of lawsuit. You’ve certainly experienced the angry outburst from an associate or employee who has just learned of an event that the person took as “unfair,” no matter how rational the explanation by the decision maker.

Reduce five risks: Increase your valuation

Berkonomics

Why five risks? In the creation of a young company, there are five principal risks to be addressed by the entrepreneur. Professional investors will probe these five risk areas and make the decision to invest based upon comfort with each.

Does your company have a “dirty cap table?”

Berkonomics

How it happens. When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” Investors love to see entrepreneurs who have used their own money to ignite their businesses.

CoronaVirus and small business: A discussion about economics

Berkonomics

By Harley Kaufman, guest author. Note from Dave: Harley is an old friend and avid reader of BERKONOMICS. With a background in management and technology, he gives us something to think about regarding today’s top-of-news subject. Addressing the issue to small and medium businesses.

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Take advantage of the good times to build stakeholder loyalty.

Berkonomics

Loyalty is a hard-earned commodity. There are several times when stakeholder loyalty is tested to the limit. For employees, a late or missed payroll is the ultimate test of corporate loyalty, divorced even from an employee’s ability to make do without a paycheck.

How about personal guarantees for company debt?

Berkonomics

Is the guarantee still required today? More than ever, the banks and lenders today require personal guarantees from entrepreneurs, and even from CEO’s of angel or some VC funded businesses.

Does your company culture encourage employee curiosity?

Berkonomics

It’s more common than you think. Some of the world’s best companies to work for are those that encourage employees to spend time following their own paths of curiosity toward development of new products or services.

Some thoughts about office politics

Berkonomics

Where’s the threat? It is hard to separate this kind of advice from economic lessons in running a business, when office politics can threaten a business in ways that are subtle, but sometimes just as devastating as economic shocks or continuing poor management. Examining the petri dish.

Where’s your sense of urgency?

Berkonomics

It is human nature to start in a new position with enthusiasm, lofty goals, new ideas, and a heightened awareness of those around us and their ideas for the business. After time in our job positions.

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Why document your company’s tribal knowledge?

Berkonomics

The processes you and your subordinates follow. It is not common for the CEO of a rapidly growing company to think of slowing down the furious pace enough to have each manager (including the CEO) document the job process managed, as well as see to the documentation for each process managed below.

Special edition: Building semi pro audio video studio

Berkonomics

Like to make professional videos for a small cost? Postings to on-line sites? Dave takes you through the process, shows the results, and gives you the costs. There’s lots more information you will find as you experiment and may need when selecting and learning the tools Dave lists.

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The dangerous game: Hiring from a competitor

Berkonomics

Sometimes it is the first thought you or your managers have when in need of skilled talent, especially for sales or product development. It is not hard to find and observe the best employees of a good competitor at work, skillfully moving the competitor forward in a visible way.

Can your employees recruit from a customer or supplier?

Berkonomics

The recruitment traps. It has happened to all of us who have been leaders in business long enough. One of your employees is approached by an employee of a customer or of a supplier, stating that “It sure would be great to work in your company.”

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Do you empower others?

Berkonomics

So, we’ve previously discussed why it is important for you to build consensus in an organization in most every major decision.

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Are you a consensus leader or dictator?

Berkonomics

It’s a good bet that you’ve been exposed to articles, courses and lectures about various styles of management, and how each is appropriate for some companies and for some levels of organization and at various times. When should the dictator in you emerge?

Data collection is about to get much more dangerous

Berkonomics

On January First, 2020, California will enact the toughest data protection laws ever, far outpacing Europe’s General Data Protection Act (GDPR.) Called the California Consumer Privacy Ace (CCPA), few of us are even aware of this and need to know.

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Insurance is always too expensive – until it’s needed.

Berkonomics

I expect that you have a story about how insurance saved you lots of money in your past. As usual, I have a story to make your hair stand on end. But first: here’s a fact.

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How to undermine or reinforce your corporate culture

Berkonomics

Ever had a manager who hung those motivational posters around the office, spoke of “pushing together,” or “you’re empowered to give great service” – and then acted at least once in complete disregard of those statements? You don’t want to be caught even once.

Let’s talk about your banking relationship

Berkonomics

The warning is real. You’ve heard the old one – that a banker always seems willing to offer a loan when you don’t need it. For small businesses, there is such truth in that statement that you can trust the story to be based as fact from experience. Exceptions and good reasons to work on them.

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How do you handle your cash reserves?

Berkonomics

Here comes some advice for all of us to use in business or in our personal lives. But to understand it, we need to delve into the short-and long-term sources and uses of cash. Good cash strategies to remember.

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How do you pay an early stage board?

Berkonomics

Give one percent equity to each outside board member vesting over four years of service. Many early stage CEOs and board members have asked for some guidance regarding pay and time commitments for board members. Here is my best advice, based upon many boards and many years.

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Why recurring revenues increase your company’s value

Berkonomics

The massive shift in revenue models in recent years. Have you noticed how many web apps and content have turned into subscription services during the last several years? Call it the Netflix effect.

Can you defend your pricing niche against your competition?

Berkonomics

This week, we continue our series on marketing and positioning. There can be nothing more important in your business planning that selecting the proper pricing niche, making your story clear using that niche, and the defending your position against the competition.

What is the real goal for our management and company?

Berkonomics

Often, we joke together as managers of companies or of people that our goal is “world domination” or “to crush the competition.” But no matter how stated, the primary goal of an enterprise is to make money. The three measures of progress. How do you measure progress toward such an undefined goal?

Will tech kill your job?

Berkonomics

Close. Stop me if you’ve heard this story before. “My My job as a (newspaper publisher telephone installer, stockbroker, travel agent, retail store manager) is safe as this economy continues to grow.” Thought so. We are in a decade of creative destruction that will affect most everybody.

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Why buy IT? Why buy MINE? Why buy NOW?

Berkonomics

What a powerful set of three questions. These are so succinct, so well defined, so precise that everyone in sales and everyone involved in marketing must be able to answer these three questions without pause, and convincingly.

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Faster is sometimes more valuable than better.

Berkonomics

And d oing both well usually wins the day. This is one of those arguable insights, where both sides win. Dell is a great example of emphasis upon fast, creating a customized computer in 48 hours or less, bringing in assemblies and components just-in-time to make the assembly line.

Are you the bottleneck in your organization?

Berkonomics

Close. At many board meetings, I can be counted upon to ask, “Where’s the bottleneck this month?” Senior management is usually prepared with an answer, and a good discussion of resource availability and application follows. Sometimes, the bottleneck is not so visible to the CEO.

Over-promoting employees. Recalling the Peter Principle

Berkonomics

Remember the Peter Principle? Funny how good messages come back in new forms after years of languishing out in the ether. Dr. Laurence J.

Are you thinking of the end game when managing your business?

Berkonomics

Ever think about growing your business with the plan to sell it someday, cashing in on your hard-earned work over the years? Or if you’re an employee with stock options, are you aware of the increases in value you can make with your efforts?

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Any advice can be worthless, or worse.

Berkonomics

Close. Ever get bad advice? We all have in our past. Ever take that advice without question because the person giving it was an investor, a superior in rank, the chairperson of your board? I’ll bet you have at least one story of bad advice taken and being bitten as a result.

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