Send us a text

In this conversation, Mike discusses the importance of gaining alignment within organizations and provides practical tools to achieve it. He emphasizes that without alignment, organizations lack clarity and become leaderless, resulting in inefficiency and poor performance. Scott introduces the concept of creating a vision, using the Jim Collins and Jerry Porras framework, to establish core values, purpose, big hairy audacious goals, and vivid descriptions of the desired reality. He also explores the idea of essential intent, where organizations focus on becoming excellent at one thing within a specific timeframe. Additionally, Scott highlights the Stockdale Paradox, which involves acknowledging brutal truths while maintaining a deep conviction that the organization will overcome challenges. He concludes by discussing the importance of constructive conflict and the concept of asking for support rather than agreement.

Takeaways

• Alignment is crucial for organizations to achieve clarity and avoid inefficiency and poor performance.
• Creating a vision, including core values, purpose, big hairy audacious goals, and vivid descriptions, helps establish alignment.
• The concept of essential intent focuses on becoming excellent at one thing within a specific timeframe.
• The Stockdale Paradox involves acknowledging brutal truths while maintaining a deep conviction that the organization will overcome challenges.
• Constructive conflict and asking for support rather than agreement are essential for effective decision-making and alignment.

Chapters

00:00
Introduction and the Need for Alignment

01:20
Creating a Vision for Alignment

04:06
The Concept of Essential Intent

07:48
Embracing the Stockdale Paradox

12:48
The Role of Constructive Conflict

20:55
Asking for Support, Not Agreement

Find out more about working with me. mike@smbmastery.com.au or https://www.linkedin.com/in/mikeadamscott/

Send us a text

In this conversation, Mike interviews Chris Wheldon, an investor and entrepreneur, about the importance of understanding and analyzing numbers in small and mid-sized businesses.
Chris shares his experience in acquiring and investing in businesses and highlights the key metrics he looks at, including cash flow, profit, margin, cost structure, and return on capital. He emphasizes the need for business owners to have a strong grasp of their numbers to make informed decisions and ensure the sustainability of their businesses.
The conversation also touches on the value of data transparency and the benefits it brings during the acquisition process. Understanding and analyzing financial metrics is crucial for business owners and managers. It is important to measure the inputs that contribute to revenue and profit on a weekly basis, such as sales, marketing, and customer retention metrics. Monthly measurements should focus on understanding sales trends, cost structures, and budgeting for future expenses. Quarterly analysis should provide a full picture of financial performance, including working capital changes and cash flow generation. Annual reviews allow for a deeper understanding of the balance sheet and the true financial profile of the business.
The key takeaway is that while the numbers are important, they are a reflection of the decisions and actions taken by the business in serving its customers and stakeholders.

Takeaways.

• Understanding and analyzing numbers is crucial for small and mid-sized business owners to make informed decisions and ensure the sustainability of their businesses.
• Key metrics to consider include cash flow, profit, margin, cost structure, and return on capital.
• Having a strong grasp of numbers allows business owners to negotiate better deals and demand higher prices when selling their businesses.
• Data transparency and access to high-quality information are indicators of a well-run business and can attract potential investors.
• Focusing on both input metrics (e.g., lead generation, customer activity) and output metrics (e.g., financial performance) is important for monitoring business performance.
• Regularly reviewing and analyzing numbers on a weekly, monthly, quarterly, and annual basis provides a comprehensive view of the business's health and progress. Measure the inputs that contribute to revenue and profit on a weekly basis
• Monthly measurements should focus on sales trends, cost structures, and budgeting
• Quarterly analysis provides a full picture of financial performance
• Annual reviews allow for a deeper understanding of the balance sheet and financial profile
• The numbers are a reflection of the decisions and actions taken by the business

Chapters

00:00
Introduction of Chris Weldon

03:04
Chris's Background and Current Venture

07:37
The Problem: Lack of Understanding of Numbers

13:08
The Importance of Knowing the Numbers

15:56
Key Metrics for Assessing a Business

22:21
The Owner's Understanding of Numbers

24:58
Metrics to Monitor Weekly

27:10
Metrics to Monitor Quarterly

32:20
Understanding Sales Trends and Cost Structures

36:46
Analyzing Financial Performance Quarterly

44:04
Deepening Understanding of the Balance Sheet Annually

46:08
The Numbers Reflect Business Decisions and Actions

Find out more about working with me. mike@smbmastery.com.au or https://www.linkedin.com/in/mikeadamscott/

Send us a text

In this conversation, Mike shares practical tips and tools for negotiation. He emphasizes the importance of finding leverage and using it to create a win-win outcome. He discusses the power of anchoring, where starting with a higher price or set of terms can reposition the negotiation in your favor. He also suggests using the phrase 'Is there any flexibility on this?' to negotiate better terms. Lastly, he recommends using the question 'How am I supposed to do that?' to challenge unreasonable requests. These practical techniques can be applied in various negotiation scenarios.

Takeaways

• Negotiation is about finding leverage and creating a win-win outcome.
• Anchoring is a powerful technique where starting with a higher price or set of terms can reposition the negotiation in your favor.
• Asking 'Is there any flexibility on this?' can lead to better terms in a negotiation.
• Using the question 'How am I supposed to do that?' can challenge unreasonable requests and shift the negotiation in your favor.

Chapters

00:00
Introduction to Negotiation

02:33
Understanding Leverage

10:56
The Power of Anchoring

15:17
Flexibility

Find out more about working with me. mike@smbmastery.com.au or https://www.linkedin.com/in/mikeadamscott/