Category Archives: Thinking Aloud

Navigating To Success

One of the roles I play along with my regular consulting gig is an advisor. I am what’s call a “Navigator” at one of the oldest incubators in the area. Each month, the Navigators get together and listen to a pitch from a resident company. It’s good practice for them (you can NEVER have enough practice pitching your business) and it’s good for us to become better-versed in what’s going on.

Most of the companies headquartered at the incubator are engaged in scientific research of some sort and there are a lot of Ph.D.’s wandering around the building. They know a phenomenal amount about their fields and about the company they’re germinating. The problem is that they don’t seem to know that they’re building a business and not a science experiment. We had one of these get-togethers yesterday and I was speaking to another Navigator, comparing notes about the companies we’ve seen and the pitches we’ve heard. He had found, as had I, that most of these very smart entrepreneurs had no trouble explaining the nuances of some very complicated science but had massive difficulty in explaining how they were going to make money.

A book from a few years ago wrote up research that found that 87.5% of Millennials disagreed with the statement that “money is the best measure of success.” On a personal level, I couldn’t agree more with their thinking. There ARE many more important things in life that reflect success and failure. On a business level, unfortunately, that’s dead wrong. When you raise capital, your ability to provide a return on that investment – i.e. money – is the measure of success. Otherwise, you’re not a business: you’re a charity. Since these entrepreneurs – almost all of whom are Millennials – claim to be building businesses, part of what I and the other Navigators help them do is to focus on the business of their business and not just on the science and their products.

We ask them the kinds of questions I hope you ask yourself. What problem are you solving? Who else is solving it? Why is your solution better? How much will it cost to build your product at scale? How is it priced? What is the profit margin? What’s the competitive set in how big a market? Pretty basic questions, I know, but these are smart people who have never been asked them before. The ones that can answer them clearly are the ones that will get funded and survive. Do you fall into that group?

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School’s In!

Today is the first day of school around here. If these kids are like many of the ones I’ve met over the years (and maybe even the two we raised), at some point the inevitable question pops up:

Why do I need to go to school?

As they get older, the question changes a bit (probably because they enjoy seeing their friends at school every day):

Why do I need to learn this stuff? 

That’s our topic today, and I think it’s something that applies to the business world as well. The answer to the first question is pretty obvious, and it’s not just because your parents are exhausted after driving you around all summer and need you gone for a bit. I’m a lot more interested in the second question because I think that most students, parents, and teachers get the answer wrong. You don’t need to learn “this stuff.” I can’t think of a single instance in my adult life where understanding differential equations or the structure of the carbon atom has been required.

So as a public service, I’m going to give you the answer to the second question which hopefully also answers the first. I’ve given it out before but hey, it’s the first day of school and the questions might come up again so you’re welcome.

You go to school to learn two things.

  1. How to locate and verify pieces of information (let’s call them facts) in order to formulate your thoughts.
  2. How to express the thoughts you formulate both orally and in writing to communicate your thinking.

That’s it. Learn those two things and you can pretty much do anything you choose to do in this world. Ask yourself how many business people you know who can do those two things successfully and I’ll bet you also have a list of the best business people you know. In an era when “fake news” is a term thrown around like beads at a Mardi Gras parade, understanding how to determine what news is really fake and what’s just being labeled as such to distract you from facts is critical. Not everything you read in your school books is accurate, but if you don’t have a well-developed BS detector as well as the skills to track down the truth, how will you create accurate thoughts from inaccurate information either in school or beyond?

Please feel free to print this off and hand it to your kids, large or small, who are wondering about school. Feel free to ask yourself if you managed to learn those things along the way as well. If not, maybe it’s back to school for you too?

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Hot Dog! It’s Friday!

It’s Foodie Friday! I spent many years working in the sports business and because of that, I was privileged to attend hundreds of sporting events around the world. One of the best parts of those experiences was the food. Inevitably, there was some down time which allowed me to wander about the arena or stadium and sample the food. I am a big believer in what I consider the truism (as the late great Frank Deford wrote) that a hot dog tastes better at the ball park. I’m such a devotee of having a dog (or 3) at the game that I usually have one before I even get to my seat. But why is that, and, more importantly for our purposes here, what does that tell us about our business?

A cooked hot dog garnished with mustard.

(Photo credit: Wikipedia)

You might suppose that it’s the particular brand of dog served. I’ve purchased the identical brands served at various places and they never taste the same when I prepare them at home. I’ve boiled them, steamed them, grilled them, or some combination of methods and yet while the taste is similar, it’s not the same. It’s not the condiments or the bun (steamed, grilled, toasted, or right out of the bag – doesn’t matter!). No, dear readers, it’s the environment.

Many studies have demonstrated the effect that environmental elements have on our perception of food. Obvious things such as lighting and less obvious things such as the music playing have been proven to change how we perceive food tastes. One obvious example is food eaten on an airplane, where the pressure is lower and the noise is higher. Our taste buds don’t function as well at 35,000 feet so airline chefs overseason their dishes (the combination of dryness and low pressure reduces the sensitivity of your taste buds to sweet and salty foods by around 30%, according to a 2010 study conducted by Germany’s Fraunhofer Institute for Building Physics). What does this have to do with your business?

A lot. The environment we create in our offices or stores or even our digital presences can affect how workers and customers “taste” what we’re offering. If we demonstrate a commitment to openness and trust, we create an environment where everyone perceives that things are better than elsewhere even when they’re common events. We can yell and scream while we eat at the ballpark. The food tastes better because we’re having fun. Are you encouraging that kind of fun in your place of business? Most concession stands offer condiments so you can have your food the way you like it. Do you offer the same kind of personalization to your workers or customers? Do you take their personal lives into account and offer some flexibility in hours or remote work?

Think about why the same dog you prepare at home tastes way better at the stadium as you think about how you approach your customers and your business. You’ll be on the way to standing out from your competitors, even if they’re offering a similar product or service.

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Filed under Consulting, food, Thinking Aloud