Tag Archives: Business and Economy

New Greens, New Breaks

One of the first things you learn about writing is that you generally want to stick to writing “what you know.” That’s why things around here generally revolve around business, golf, and food. Sometimes those three things intersect (a bad food experience at an obviously failing snack bar on some golf course?) but generally I manage to get two of the three put together, and all the screeds have a business point to make.

Today, as is often the case on Mondays, something occurred to me on the golf course over the weekend. My home course replaced the greens last summer. We went from bent grass greens to Minverde Bermuda greens. I can hear your eyes rolling, but let me explain what that has meant and why it just might be meaningful to you and your business.

One thing with which many businesses are dealing, either directly or indirectly, is climate change. In the case of golf courses here in North Carolina, it’s meant that some strains of grass just can’t take the heat and clubs spend a lot of money trying to prevent them from dying. There are dead spots, root rot and massive fans that are installed near some greens which run up the power bill trying to cool down the grass that can’t take the heat. Our place lost parts of 5 greens two years ago. The takeaway is that you can believe or not believe in climate change but you can’t ignore the effects that whatever is going on is having. I don’t suspect you run a golf course, but you may stock seasonal items or have staffing needs that are weather-dependent and you can’t stick to the calendar as you once knew it.

That, however, isn’t my main point today. One of the other things that happened when they replaced the greens is that everything was different. The speed was different, the way the ball moved on the green was different, and the new greens were very hard, so you couldn’t land the ball where you used to because it would bounce and roll. The breaks (how the ball moved in response to the topography) were completely different, so all of the local knowledge you had was gone. I will tell you that it’s frustrating to have a putt you’ve made many times before suddenly not move as much as it once did. It is also difficult to train yourself to ignore the slope you know is there because you also know the ball isn’t moving the way it used to.

That sort of thing happens in your business. Things change and you can’t operate under your old belief system. I may believe the ball will move three feet left but on the new green, it barely moves. You may think to be on Main Street will assure you of foot traffic but when the new mall opens, your reality will be quite different. You need to do the best you can is reading the new terrain and adjust your thinking. Otherwise, you’re going to be missing the mark quite a bit, sort of like I did this weekend. New greens mean new breaks and that means a new look at everything you do. Make sense?

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Filed under Consulting, Helpful Hints, Reality checks

It’s Your Lucky Day!

It’s Foodie Friday and if you’ve been paying attention to the calendar, you’ve already had a month full of pizza, wine, heavenly hash, tater tots, frozen yogurt, plum pudding, and tortellini. Oh – that list only gets us part way through the month. Today, for example, is National Banana Bread Day as well as National Toast Day. Over the weekend, we can celebrate Tortilla Chip Day, Clam Chowder Day, and Chocolate Covered Nut Day. Finally, we can end the month celebrating pistachios, Kahlua (I assume the drink and not the pork), strawberries, pancakes, and chocolate souffle, each of which has a day.

Got indigestion yet? Maybe it should be National Bicarbonate Of Soda Day? Oh – that already exists (December 30). You can check this handy calendar to find out what days you can celebrate if you’re ever looking for a reason to party. Some of the things on the calendar are just silly and some, like the upcoming Pancake Day or the recently passed Pizza Day, get way more attention than others. That probably has to do with some important businesses getting behind the days (lots of free pizza deals on Pizza Day!), particularly those businesses that really have to stretch to tie into the “normal” days during the month: President’s Day, Groundhog Day, and, in some places, Mardi Gras. Despite some of the silliness, there is a legitimate reminder in all of this.

Think about Festivus. This, as you probably know, is the entirely fictional creation of the Seinfeld writers based on the actual family practices of one of the writers. It’s a way to celebrate the season without participating in the commercialism of the season. In my mind, it is the most prominent made-up day of them all. As Allen Salkin, the author of a book on Festivus wrote, “Festivus is completely flexible. There’s no ruling force telling you what to do. Nobody owns it.”

You need to think about that as you create your own day. Besides being great promotional platforms, these days can inspire lots of social interaction so that the onus is not just on your business to promote your day. While it may take some time to become known and anticipated by your customer base and the public at large, I believe the investment is worth the effort. Find what might be some doldrums in your calendar and make your day a tentpole event. The key thing is to make it fun, make it authentic (even if authentically tongue in cheek), and make it YOURS.

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Filed under food, What's Going On

Making A Deal

If you spend any time in business, you end up in a negotiation of some sort. It might begin even before you start at a job as you negotiate your salary. More likely, it happens as you work on a deal and document that deal with a contract. You might think that the deal is done when you shake hands but my experience has been that the deal is never really done, even once you’ve both signed that contract.

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To me, the contract is a reference point, something to which the parties can turn if there is a change in circumstances or confusion about expectations. As with any relationship, business deals tend to be fluid, but if the partners work in good faith, any problem is solvable. You should also remember that contracts generally last beyond the actual deal itself (check those clauses in the “survival” section).

Because agreements and partnerships are long-term, the negotiations have to be viewed in that long-term context as well. The odds are that success in the negotiation is not immediate. I have had a contract take longer to get done and signed than the term sheet that documents the general business points. It’s not because the former is done by lawyers and the latter generally by business people either. It really has more to do with the fact that others are getting involved. I’ve found that negotiating success is inversely proportionate to the number of people involved – two people can get something done that ten can’t, even though those ten can be helpful in surfacing new approaches when things bog down.

You need a couple of things to negotiate well. First, you need to know your bottom line – the boundaries you are unwilling or unable to move beyond no matter what the other side offers. You must be willing to walk away if those boundaries are crossed. You also have to be realistic about where to draw those boundaries and let the other side know when they’re asking you to cross them and why. It’s no place for dogma. If you don’t have a real reason and just want to “win,” you’ll lose.

Second, you need a vision of what the possible end result might be. You need to consider solutions with an open mind. Finally, you need to sit on the same side of the table as the person with whom you’re negotiating. I don’t mean physically. I mean you need to convey a positive message – if we work together, we might find some solution that addresses all of our concerns. We are partners in solving a problem.

I’ve had deals fall through during negotiation but they’re the exception. I’ve also had partners not live up to the contracts they signed for various reasons. That’s more common and generally because they weren’t thinking long-term when they signed the deal. What’s your experience been?

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Filed under Helpful Hints, Thinking Aloud