A Prescription of Positive Economics for Personal Financial Freedom

I first met Susan Hayes just over two years’ ago, when she was a guest speaker for the network I was running at the time.  To say Susan provides a hefty intravenous shot of positivity through everything she does, is an understatement.  However, as we all know, positivity is a vastly abused and misunderstood word these days – so it’s important to contextualise Susan’s version of it.  It’s an attitude of reality tempered by change and possibility – of newness and active engagement in making a difference in ones’ own economy.  In essence, Susan – the Positive Economist – is just the sort of person a lot of us should and could do with listening to a lot more right now.

So, when I received my copy of “The Savvy Woman’s Guide to Financial Freedom” around Christmas time, I was delighted to muse through its pages and learn more about the behemoth so many of us struggle to attain: financial freedom. 

The reality of personal finance is: we all have different objectives [as with every element of our lives] and this is something Susan clarifies right at the outset.  Hankering after what you think is financial freedom is worthless if you don’t know what your financial ‘temperature’ is.  Tackling the blockages, personal obstacles and individual fears is your next key step and from there – it’s a straightforward case of identifying the best strategy for you, the individual, to attain your personal financial freedom goals. 

Ultimately, Susan’s clear, focused and straightforward methodology is the winning foundation for this book.  Whilst you can just as easily come across Susan in the Sunday Business Post or on Vincent Browne discussing current economic issues, she is equally at home equipping women with the techniques necessary to decide what their financial aims are, and how they best go about achieving them. 

Working in a related discipline to Susan, in enterprise and economic development, I am a major advocate of strategy – in delivering projects, objectives and outcomes - and the same rationale can be taken in achieving personal goals.  “The Savvy Women’s Guide…” offers its readers a real opportunity to take their financial temperature, understand their goals and values, manage their personal ‘limiting beliefs’ and identify the best strategy for financial freedom.

When Susan appeared on TV3 shortly after the launch of the book – she was asked why she had chosen to write the book just for women – her answer was simple: that she knew their challenges best, and felt she could offer them the help they needed to achieve their financial goals.  I have to say, I think the opposite sex are missing out… but also reckon this isn’t the last book Susan will write!

I’m very fond of a quote [which has a multiple of variations] of Henry Ford’s – “whether you think that you can, or that you cannot – you’re right”.  This is true of many decisions we make in life – to start or grow a business, learn a language… or improve our financial outlook.  If you think you can’t, the chances are – you won’t.  If you think you can – you’ll identify a way in which you can.  If financial freedom is a goal of yours? Get this book.

The Real Meaning of Strategy In Business

Image Copyright

Normally, at this point, a blog about strategy will contain a pithy clipping from Sun Zu’s “The Art of War” … (“Tactics without strategy is the noise before defeat” is a favourite).

It’s hardly surprising that this recurring theme appears, given that Sun Zu’s statements of strategy and tactics contain very resonant themes when it comes to strategy in business.

However! The question for most businesses – SMEs in particular – is how or why strategy applies to their business (queue mutterings of “I just want to get on with it…” or “that sounds very corporate to me”).  The reality is, as Sun Zu infers, not knowing why your business is heading in any specific direction (or the role resources, objectives and plans are playing in it) is almost definitely going to bring about the wrong outcomes.  In some cases, rather unfortunately so.  It doesn’t matter whether you’re a Fortune 500 company, or a start-up operating from a shed in your back garden… without strategy, you’re likely to be setting out on a collision-course of risk and disappointment.

So, what is the real meaning of strategy in business? Opinions vary, and strategies change to suit different times in a business’s trajectory – guiding focus and resources to suit its point in the life-cycle.  From my experience, here are some key roles for any business strategy:

1. To provide you, your team and any other relevant stakeholders with clarity regarding the purpose, focus and objectives of the business
2. To ensure financial, marketing, sales and operational targets are met – clarity, again, being the key focus
3. Communication, collaboration, and cooperation: to develop buy-in, commitment and focus within your team (if you have one – if you’re a sole trader – to ensure buy-in from key stakeholders, partners, funders etc.)
4. To shore-up growth by highlighting a clear path for the future and allocating the right internal and external supports in realising same
5. To provide an effective means for challenging, evaluating and re-strategising decisions, objectives and growth – as well as business model, marketing, financial planning and other key operational mechanisms.

Obviously, there are other associated positive outcomes for businesses implementing clear strategies.   For starters, they don’t suffer from the ‘fear factor’ as often: mainly because if something lands, meteor-style out of left field – their business strategy is resilient enough for them to ‘pivot’ (as Eric Ries talks of in Lean StartUp) or adjust the sails.  Growth becomes easier to map-out and manage:  every business experiences ‘growing pains’, but they are easier to manage when the growth trajectory is clear.

So, what could strategy mean for your business? Well, you could open yourself up to the opportunities that are potentially hidden from view right now (the clarity argument), you might also be able evaluate your ‘message’ (the purpose argument) and all of a sudden, your team, stakeholders and other valuable individuals may begin to facilitate your trajectory because they get it.

Strategy acts as the blue-litmus test for your business, not simply by being put in place, but through evaluation, regular progress reviews and continual objective appraisals… re-strategising the strategy, if you will!

Don’t shy away from the ‘s’ word, it could revolutionise your business

Getting the message?

Photo Link

Are you getting your own message?

Because if you're not, the chances are, your target audiences and stakeholders aren't either.

Cast your memory back to this post [What the fudge is a value proposition?] and ask yourself if you know the: value, features, benefits, compelling arguments "why you should" of your product or service... and your NOSE [customer needs and outcomes, and the solutions and evidence you can offer].

Remember: clarity is at the core of successful business. Make sure you've got it!

So why should I give a damn about strategy?

Photo Link

I like to take a humorous approach to things on occasion; life [and business] can be extremely serious betimes, particularly in these more arduous economic days.

I've written, and continue to write countless blogs and articles on the subject of strategy, messaging and other  SME-related development issues.  However, I'm all-too aware that for many business people, given the many demands of business, it's a perceived waste of time or not worthwhile considering for their business.

On occasion, when I meet SME / micro-enterprise owners for mentoring / advisory meetings, the stock answer to strategy / communications queries [from me] - is "how will that make a difference?" or "sure, that wouldn't work in my business".  The reality is, a business strategy is a non-negotiable, whether you're running a food business from home, or about to establish a groundbreaking new technology company.

Don't use excuses... you've got to make time to grow, to evaluate potential and to remain, at all times, aware of opportunities.  Strategy underpins all these objectives, and keeps you, your team and any other key people 'on message' and tuned in to what it is you're setting out to do.

Begin with a straightforward 'mapping' exercise... starting with where the business is now [or "as is"] versus the projected 'what good looks like' of your business.  Now, that wasn't so scary? 

Map out goals, key people, timelines and 'checkpoints'... be realistic, but stretch yourself too...

... and hey, presto, you've just started to build a strategy.  Giving you clarity, focus and direction.  It wasn't that bad after all, now was it?

Why clarity should be your watch-word...

Photo Copyright

Definition: the state of being easy to see, hear or understand. 

Clarity is key to business success: clarity of strategy, clarity of message, clarity of stakeholder buy-in, clarity of growth plan... of targets, customers, potential and ongoing development.

Make sure you have absolute clarity.

More? Check this out... 

The Possibility of Failure

More and more in recent times I’ve found myself turning the notion of business failure over in my mind.  Mainly because,  even at the pinnacle moments of success, we all still have that little pinch or pang of fear that it might just go wrong.  In some respects, this isn’t always a bad thing – indeed I would be an advocate of nurturing a little edginess to stay sharp... however, the extreme fear factor is one to watch.

Last year, Kehlan Kirwan, Brian Cleary and I discussed business failure on several occasions on the Small Business Show.  We spoke about the impact of the constant “drip-feed” of figures and stats, new taxation and other incremental economic changes on the SME owner – constantly battling a tidal flow of negativity and the attitudinal norms which exist in our country. These norms can often shape someone’s decision to fold, abandon or reinvent.  The reality is, in every challenge is opportunity – but do we give people the chance to see it?

In 2010, the SFA reported that one in five people feared starting a business on the basis of failure and bankruptcy.  Given that SMEs are held as the ‘backbone’ of the economy – this aversion to start-up on the basis of failure points to a deep concern regarding the ramifications of business closure.  And why would this be? Well, for starters,  entrepreneurs with business failures / closures are ‘virtually ignored’ [Irish Examiner, 2012], and in most cases suffer being tarred with a ‘failure brush’ which means they are bad news for financiers, banks and other institutions.

I must make it clear that this is not to suggest that financing every business idea with absolute abandon and zero due dilligence is the right attitude – however, a more clear understanding of the nature of SME development is key.  For an attitudinal comparison, it’s worth noting the fabled ‘unique nurturing environment’ of Silicon Valley, which provides a very different attitude to failure [Brown, 2008].  In this context, it is highlighted as exemplary in the view that “attitudes to financial risk and the acceptance of the possibility of failure are vital ingredients for innovation”.

Cultural Attitudes

There is no ignoring the fact that entrepreneurial capability is strong in Ireland, but our cultural attitude, on the other hand, is not so strong.
What follows is my aforementioned colleague, Kehlan Kirwan’s story of possibility in failure.  I think it’s a brave and clear testament of just why change is paramount, in our attitude to the possibility of failure:

I came back from England to start a new business. A business magazine designed just for SMEs. In hindsight it was the wrong time. It was 2010 and advertising in the media was going through its worst slump ever. Eventually we had to stop and put an end to it.

But in that time we started doing podcasts on our website to generate more content for our readers.  Along with a good friend, Conn O’Muineachain, we developed a podcast series.
Fast forward to today, where I produce and present the Small Business Show alongside Olwen and Brian. It’s broadcast every Saturday and has grown to over 21,000 listeners a week. Would we be here if the magazine didn’t fail?

I have never seen the magazine closure as a failure. It gave me new insights and new avenues to explore. We are now looking at re-branding and introducing a new style of video presentation for businesses to use on their website, social media or Youtube accounts.

When your business fails, you are not a failure. It can be difficult to believe that failure can bring you somewhere better, but it can. We learn by failing not by getting things right all the time.
Here in Ireland we have an inherent belief that people who fail in business are themselves, failures, destined to forever be failures. But when we look at other countries, like the USA, in many circles failing in business is a badge of honour. Offered up like a cup coffee -  ‘Yeah I failed, but look at what I learned’.

Leadership and Communications Consultant, Susan Tardinico, offers an insight into this. She says that failing is about taking stock and learning:
“Look at the failure analytically — indeed, curiously — suspending feelings of anger, frustration, blame or regret. Why did you fail? What might have produced a better outcome? Was the failure completely beyond your control? After gathering the facts, step back and ask yourself, what did I learn from this? Think about how you will apply this newfound insight going forward.”

Unless we learn to embrace failure in Ireland, we cannot foster ‘entrepreneurial spirit’. We need to help people recycle their entrepreneurial talents into new ventures, startups and ideas. It brings with it a new way of looking at problems, from new angles and with renewed impetus . We need to learn from our failures, not hold them against people like damaged goods. Failure is only failure when you fail to learn from your mistakes.

Thought for February: Keep pushing the boat out...

Image Copyright - Media Lonely Planet

A phrase, no doubt, we've all heard many times during the course of our lives! Yet it also has several meanings, not all of which are terribly positive.   If you seek a definition of 'pushing the boat out', you'll find that it is derived from an act of generosity where a boat is beached and is too large for a seaman to re-float alone.  Therefore pushing the boat out became synonymous with acts of generosity or, in some cases, being overly so, and in ones' own favour! If you're really into exploring the derivation of this proverb, there's a whole raft of them [pardon the pun] available.  However, that isn't really the point of this post... so I'll move on!

Probably almost two years' ago, in the course of a Twitter conversation with Pádraig Ó Ceidigh, this old proverb re-emerged with a new sense of significance, and I'm afraid to say, Pádraig, I've been using it again recently!

What did it mean to me then? Simply - to keep my eyes wide open to opportunity [nice link to that blog, eh?] - to "live and not weaken" and most importantly - to remain focused on the task at hand.  Entrepreneurship can be a pretty turbulent journey, with plenty of detours along the way, but if it's the right road for you, you'll almost certainly know.  Appreciate and understand the knocks, why they've happened, and how you might negotiate them next time - but don't give up... keep pushing the boat out.