Monthly Archives: April 2016

Bringing In The Broker

I mentioned the other day that we’re getting Rancho Deluxe ready for sale. Part of that process is choosing a realtor. It’s a very important part of the process since the realtor is your guide. What work should we do on the house prior to listing? How much is a reasonable but aggressive asking price? Where is the local market and are the offers we get worth considering? It’s a job interview, even if the job is temporary. I thought some of what we found is applicable to any form of hiring, and that hiring might be personal (a job) or organizational (by a client). 

We got the names of three realtors from friends who had worked with them. Each walked through the house and scheduled a second meeting, the purpose of which was to give us their thoughts on the questions I mentioned, above. It was also a chance for them to demonstrate their thinking and competence.

Two of the three came back with folders containing listings of comparable houses to help us price. They gave us a good overview of the marketplace and described the buyer they thought would be looking at our home. The third showed up with nothing. When asked about comps she scrolled through her phone looking for some while we sat and waited.  While she could talk about the market, her conversation was very general and not specific to our situation (location, the age of our home, etc.).  Had it been a business meeting, I would have tossed her out of my office after 15 minutes.  The point is preparedness.  While Woody Allen may have said that 80% of success is showing up, I think showing up prepared is far better.  Needless to say, she was disqualified from consideration.

The choice between the other two came down to a few things.  Personality (with whom dd we feel most comfortable) was a big part.  How hard we felt they would work on our behalf was another.  While they each told us what they thought needed to be done to get the house ready, one of them offered to help us make those things happen by offering to hook us up with some reasonably priced contractors/handymen.  She didn’t just identify our issues; she offered to help us resolve them.  In addition, she described what money she would invest, putting her own skin in the game. It means that if the house doesn’t sell she is not just out the commission she won’t receive but also some funds she has invested herself.  That was the tie-breaker.

Each of those points – preparation, personality, problem-solving, and commitment – is something that should come up in any vetting process, whether you’re hiring or being hired.  How does each candidate stack up?  How do you?

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The Long Run

I see that the Rolling Stones have plans to release a new studio album this year. They last released new material 11 years ago. Then again, since they’ve been making records for almost 55 years, it’s not as if there isn’t a lot of their music to which you can listen while you wait. I saw the Stones last year. It was one of the best shows I’ve ever seen them play, and I’ve seen them regularly since the 1970’s. They’re the epitome of what every business should be doing: focusing on today but doing so in the context of the long run.

English: Keith Richards, live in Hannover

(Photo credit: Wikipedia)

Yes, I’m familiar with the famous Keynes quote that “in the long run, we are all dead.”  Some people – economists and others – take it to mean that we should enjoy today and not worry too much about the future.  In fact, he was arguing exactly the opposite (which is often what happens when quotes are taken out of context – another screed for another time).  Clearly, one can look at Keith Richards‘ lifestyle and not see a great deal of concern about the long run.  Don’t let the lifestyle confuse you.  Keith and the other Stones began as a band the took older music – blues, mostly – and placed it into a new context, thereby carrying it forward (some might say stealing!).  Their musical styles have always adjusted to the tastes of the time – they did disco (“Miss You“), they did country (“Wild Horses“, “Sweet Virginia“), they did many other types of music.  All of it was designed to stay relevant and to keep the band – and the business – healthy for the long term.  Think about how many bands had incredibly short life spans.  Sometimes it was due to internal disagreement, but usually it was that the band wasn’t thinking long-term, refusing to change (and no band leaders fought more than Mick and Keith!).

So how about your business?  I see quite a few founders who are thinking about ramping up and making a quick exit.  The “long run” is next year.  I’d rather be there for the long run like The Stones.  You?

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Hanging On

We’re selling our home. The kids are grown and living on their own.  We don’t need all the space and the property is too large and expensive to maintain. In other words, we’re doing the downsizing (or rightsizing!) that many folks in our situation do. Obviously, a lot of “stuff” has aggregated over the 30+ years we’ve been in the house and we spent many hours over the last few weeks decluttering. 

This past weekend was spent scanning old tax returns and putting the supporting documents into a “shred” box. Why were we hanging on to receipts from anything beyond the 3 years the IRS recommends? Who knows. We also found (and put in the shred box) cancelled checks from every decade beginning in the late 1970’s. That was long before banks did everything electronically and held scanned copies for you. I guess we got in the habit of filing them away.

In addition to the financial documents, we tossed (or donated) things that had sat in the basement or the attic for many years without anyone missing them. It’s nice, for example, that nearly every sporting event I attending during my years in sports TV gave out a duffel bag of some sort but having 20 bags in the attic gathering dust when someone somewhere needs one is silly, right?

So here is the question for you. When was the last time you took a look at the “stuff” hanging around your business? I don’t mean extra duffel bags or cancelled checks. All the detritus we collect over the years is due in part to a process we have in place.  When was the last time you examined the things, processes, etc. – to which you’re hanging on and why?  It’s not just a matter of freeing up space.  It also means you question each thing you touch and its relevance to your business moving forward.

It’s not just a matter of freeing up space.  It also means you question each thing you touch and its relevance to your business moving forward. I found a number of things (an automatic pasta maker, a countertop deep fryer) that I won’t ever use again but were hanging around the basement.  I rarely eat pasta anymore and it takes less time to make it by hand then it does to clean the machine after a use.  Why was I hanging on to it?

Old habits die hard, especially in business.  We need to stop hanging on and get our proverbial business houses cleaned up.  It makes wherever we decide to go next a much easier move.  You with me?

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