Berkonomics

The four rules for motivating your employees with money.

Berkonomics

We’ve debated this one forever it seems. Should be overwhelm prospective employees with stock options and perks? Or concentrate our available resources on just plain money as an attraction?

Design 156

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. A financial buyer will analyze your numbers, past and forecast, to the n’th degree, and calculate the price based upon the result, after carefully comparing your numbers with those of others in the same and similar industries.

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The shocking truth about employee loyalty

Berkonomics

How we often handle employment issues today. When we accept the work commitment from a person we hire, we make a pact with the new employee that often stops at agreeing to pay for service rendered and to provide a safe working environment. There should be more than that. .

The coffee and wine school of innovation.

Berkonomics

Here’s one for debate around a cup of coffee or a glass of wine. Most innovation occurs when creative people are relaxed and thinking about other things. Coffee, wine, quiet time, showers…. How it occurs in large companies….

Can You Ask for Office Rent Relief? How to Manage Your Lease During COVID-19

Office leases are one of companies’ largest expenses, and if your whole team is working from home with no clear end in sight, you may be wondering what to do about your lease.

Reward success and failure. Punish only inaction.

Berkonomics

Reward failure? . That may be a difficult concept for an executive. And there are limits of course. We wouldn’t reward a failure to follow laws, or protect lives, or deliberate endangerment of the company or its people. There are “good” failures.

Course 156

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. And for tax reasons, remember them before the closing of the deal, so that you can do so by sharing a bit of your proceeds without paying personal income tax upon those amounts. Formal option plans for some.

Sales 480

A tale of two CEO’s and the management of pain.

Berkonomics

This is the tale of two CEOs, one of them unfortunately….me. me. . It’s a story of how people handle unusual situations when selling to the top – an executive of a prospective customer. And the stories couldn’t be more different. First, my friend’s story….

Sales 156

Are you killing innovation in your company?

Berkonomics

First, let’s recognize the problem. Here’s one for executives of any company with next generation products in mind.

Why would you ever “fire yourself?”

Berkonomics

To start: “new source of energy” and “new ideas.”. When a new CEO or manager is hired into a company, for a while lots of energy flows from the top and new ideas seem to be generated daily.

Ideas 156

Have you heard? Eyeballs aren’t everything.

Berkonomics

Remember when? Back when we were all trying to figure out the real value of traffic on the web, investors – and acquiring companies – got a bit crazy with metrics used to value acquisitions and investments.

Can you negotiate without emotion?

Berkonomics

Here’s the problem. Negotiating an agreement, especially one that involves personal gain, is tough for the person personally involved. There is too much to lose to be objective, to be willing to walk when terms go upside down. What if the negotiation is personally important?

Do you really want to be the first to market?

Berkonomics

My stories of missing the context of the times. Over the years, as I managed my several computer companies as CEO or executive chairman, I made the decision to go to market with a brand-new product that had never before been exposed to my customer’s marketplace.

Do you tell someone “WHY” along with “WHAT?”

Berkonomics

How to get more performance from your directives. Empowering your direct reports with the reasons for your orders gives them incentive to act, motivation to accept authority, and purpose behind action. I try to teach this with the simple phrase that is the headline of this insight.

Report 156

Are you being watched at work?

Berkonomics

Your past and present experiences. Ever had a manager above you who said one thing and did another? At least once? Or in a pattern of repeats? Well, you’re not alone. Did you think less of that person for it? Would you follow that manager to the ends of the earth?

Why your investors may not respond when you need money

Berkonomics

When do most companies communicate? Early stage company investors as a group have a common gripe – almost universal. Information flows from the company irregularly, in fact most often when the company is urgently in need of more money. How these investors try to solve the problem.

Invest 156

Are the “FIVE WHY’S” in your arsenal?

Berkonomics

This is a trick headline. . There can be three “whys” or twenty, depending upon the issue and the responses. To make the point, the word “why” has to be one of the more powerful words in your vocabulary.

Have you heard the rule of the thirds?

Berkonomics

It starts with sharing the opportunity and upside. Think of startups and early stage businesses whose entrepreneurs you know.

Your “drop dead” question for a customer survey

Berkonomics

Here’s the question: Sean Ellis, the marketing guru behind DropBox and other successes, advises clients that “The most important question on a survey is , ‘How would you feel if you could no longer use this product?’” He goes on to quantify the response.

Are you willing to hire slowly but fire fast?

Berkonomics

Here’s a test of your patience and your willingness to suppress your tendency to avoid conflict or confrontation – all in the same insight.

Coach 156

Will you BURN the next manager you hire?

Berkonomics

It seems to be a rule, not an exception. Many senior managers and early entrepreneurs create their own mess with this one. The first professional senior manager that an entrepreneur hires to share the growing workload does not last more than a year.

Can you be an adaptive business leader?

Berkonomics

The title of this insight happens to be the name of a CEO roundtable organization I belong to and have been a member since 1989 (Adaptive Business Leader Organization – or ABL).

Is your CFO a bookkeeper or a strategist?

Berkonomics

Here’s one that most small company founders and CEO’s miss until it may be too late. What is the role of a chief financial officer in growing and protecting the company? How about co-strategist?

Here are five TACTICAL skills of a great leader.

Berkonomics

It is hard to coach or teach leadership in a few paragraphs. But let’s try by limiting this short insight to a list of the five principal tactical skills of a great leader.

Three qualities of a great leader

Berkonomics

There are lots of ways to measure a great leader. Here are three that should resonate with you as leader and with those who follow you.

Hit the hardest issues first!

Berkonomics

Reorder your priorities for maximum impact. There are two reasons to consider reordering your priorities to attack your most critical issues first, before the easiest ones to knock off the list.

Sales 156

Can you stretch the truth to make your point?

Berkonomics

How easily it happens…. Sometimes it is easy for someone to make a statement that, in the enthusiasm of the moment or to make a point, crosses the line between fact and fiction. Sometimes it seems to you to be just an unimportant little stretch of the facts.

Do you really need a board of directors?

Berkonomics

First, the short answer. No matter what your size, if you intend to grow your business into more than just a lifestyle workplace, you should create a board of directors. If you take money from knowledgeable investors, you will be required to create a board as a part of the investment process.

Your time is as valuable as your money.

Berkonomics

Enterprise time as a measurable commodity. Let’s examine the challenges to a CEO in making use of enterprise time, one of your most valuable and often misused assets.

Extending your Runway!

Berkonomics

Several years ago, I wrote a book entitled, Extending the Runway , using parallels to piloting a plane to equate to the process of creating and building a small company, making maximum use of resources to get to and beyond breakeven. It is worth revisiting the most.

Coach 156

The tender issue of stealing time

Berkonomics

It’s a big issue within any company. . With easy access to Internet shopping, games, social networks and more, employees can find many ways to focus on personal issues while at work, detracting from productivity and demonstrating a disrespect for the time paid for by their employer.

Some great coaches are younger than you are.

Berkonomics

Especially for social media-based businesses, we all need to recalibrate our thinking about who is the teacher and who is the student. There is nothing wrong with a manager slowing a conversation to ask for more background when speaking to an often-younger and more involved associate.

Coach 156

Can you build a company, not just a product?

Berkonomics

Some businesses are built around a single idea. . And sometimes that idea is just too small a slice of the big picture to be interesting to investors. There was a recent investor event where I was keynote speaker, on stage only after several panels of experts had wowed the audience with their predictions and observations. One of the panelists made a point that resonated with me. Just a button, on a feature, in an app”.

How often do you say, “Great job?”

Berkonomics

How we usually do this in our businesses. The best managers we all know are the ones who take the time to praise good work in public, before an employee’s peers. Most of us have a monthly award for the top person in a group of employees.

Email 156

Do you “over-welcome” your new employees?

Berkonomics

A story of a CEO attuned to creating great company culture. A CEO friend of mine who managed her one-hundred-person remote workforce as a virtual company told me her story of how she welcomed new employees as she grew her firm. Strike that. She over-welcomed her new employees.

Class 156

Six ways to make your site-app-product go viral.

Berkonomics

It doesn’t happen by accident. Not every new game-related site is a Steam, and surely not every social network is a Facebook. And not every texting application is a Twitter. A story of an app from nowhere to near dominance.

Sites 156

When to pivot from your original plan?

Berkonomics

Plans do not often work as devised. . We are not always smart about the market or the product. We may miss the context of the times and come to market too soon or too late. We might not have researched the market diligently or used a focus group or other market research.

Switching costs: A competitive advantage?

Berkonomics

We know that one of the ways we hold onto our customers is if there are high switching costs to move away to a competitor. But how about the other side of the coin? Do you have an estimate of the cost for a potential customer to switch to your side?

Entrepreneurism is all about personal risk.

Berkonomics

Well, of course it is. So, let’s dig a bit deeper.

“LALA” – A short lesson in marketing

Berkonomics

Focus upon you as marketing genius. Let’s focus not upon the process of marketing and positioning, but on you. How should you become the best marketer you can be, even if you are a first-time entrepreneur or a seasoned CEO? There’s an answer for that.

Four ways to create marketing excellence

Berkonomics

First, let’s recall the four “P’s” of marketing. Marketing is a science devised to help drive customers to your door. There are lots of ways to define how to market well, including the four P’s of marketing (1): product, price, promotion and place.

Could you achieve ten percent net income each month?

Berkonomics

How planning is done today. Most entrepreneurs and managers, when modeling their business operations using a spreadsheet, start with expected revenue by month. Then they calculate cost of sales, and then project their expenses, to find the bottom-line profit or loss each projected month.

.Net 156

Can you defend your plan without being defensive?

Berkonomics

When meeting with investors or even your board, during the period devoted to feedback after your presentation, you will hear comments and recommendations that don’t resonate with you. Some will be from a misunderstanding of your explanation. Some listeners will challenge your assumptions.