Riffing off Donald Keough’s book The Ten Commandments for Business Failure, Risk Capital Partners investor Luke Johnson pens his own steps for killing your company for the Financial Times. If you want to survive, he advises avoiding the following:

• taking on too much debt
• becoming overly dependent on one customer
• making a mess of a major IT project
• signing a costly/long-term property lease, or
• forgetting your customers.

“In case you’re wondering: yes, over the years I’ve backed companies guilty of all these mistakes,” says Johnson. (Hat tip, peHUB)

Jeff Bezos shares his business tip ‘Short List’ … and it’s short. Great tips by Amazon.com founder, Jeff Bezos

Unfortunately, I see it too often; passionate business owners overwhelmed by the constant demands of owning or running a business. Running a business can actually get in the way of running a business!

I have put together some thoughts and key gems of information I have found useful over the years to help you run your business rather than the business run you.

KEEP THE PLAIN THINGS THE MAIN THINGS
Remember why you went into business? I’ll bet it wasn’t to have the most Facebook Fans, Twitter Followers, or hits to a website. I’ll bet you didn’t worry about quarterly taxes, phone book ads, networking groups, or product packaging. Rather, you had a passion for something you did well. From creating crafts to helping people have better skin, you got into business because of a passion.

Step back and write down WHY you went into business. Make this the element your business revolves around.

ESTABLISH CORE VALUES
What is important to you in business? What are values you want evident in your daily operations? Individuals or small companies often avoid core values because they are unnecessarily made too complex. In actuality, they are simple. Make a list of four or five characteristics or goals you have for your business. Core values can range from “Meet 2 new people a day”, “Give away one sample to a needy client”, “Leadership Development”, or “Work above reproach”.

When starting any new business venture, I identify the key values (it could be a word, a short sentence, or a paragraph), type them out, print on nice cardstock, and frame it. These values then sit on my desk or office wall as a constant reminder. When I was faced with difficult decisions, I refer to them for guidance.

For an entire year, the value guiding one of my companies was “Build Relationships”, (Warning: this is a VERY broad value) in everything we did, it was to build and grow employee, customer, vender, and community relationships.

NETWORK. YOUR WAY
Business networking has been bastardized. There is a very real, and a very unfortunate, reason that I refuse to attend or be a part of 99% of business networking groups. Networking, at its core, is about relationships. People don’t care what you know until they know that you care. Too many network-attendees have forgotten that sales do not come from forcing a product down the throat of others; sales come from building a reputable connection with others.

If traditional networking groups have left a bad taste in your mouth, don’t give up on it altogether. Instead, call up a business owner with similar clients, or something you have an interest in. Buy them coffee and get to know them. Ask about their business, how they got started, their perfect client, etc. In return, share a little about your business. Don’t sell them anything, just talk to them.

This relaxed atmosphere does not lend itself to “Buy My Stuff Now” marketing, but rather facilitates relational-networking. I guarantee that person will remember you for years after your meeting.

TO-DO, TO-DO, TO-DO
One of the best pieces of advice I have ever received tackles the “To-Do List”. The list that keeps us awake at night, never gets shorter, and – eventually – gets abandoned in the dark abyss of offices everywhere.

The advice I received was: keep 2 lists.

What? How does that help me!?

They explained, keep two lists. One for “Today (or “Current Project”) and one for “Long-Term Goals & Ideas”. Ah! It seemed so logical.

Think about how often you have gone to bed discouraged that you didn’t finish everything on your list. But how many of those tasks needed to be finished today? Maybe you did 5, 6, or 7 small things, but are dreading the big ones – break it up! Break up huge projects into smaller tasks.

I jot down ideas for businesses that may never come to fruition, those ideas and tasks used to take up room on my “To-Do” list, now I am okay knowing that they don’t need to get done today and don’t discourage me from attacking the “Today List”

YOU CAN’T DO EVERYTHING – AND THAT IS OK
I hate payroll. Hate it. I hate adding everything up, inputting data into QuickBooks, managing new tax tables, etc. I hated it so much I would avoid going into the office on Thursday before payday. It actually crippled my desire to do other work – the work I loved!

It took me awhile to realize that my effort to save money was actually costing me more. I didn’t hire a bookkeeper because of the added expense to my young company, but I didn’t factor the time I was spending 1) avoiding work, 2) managing payroll, and 3) staying educated on new rules, etc.

I worked out a deal with my bookkeeper to exchange services – they were ecstatic to get free and discounted samples and I was relieved to not have to touch QuickBooks again!

Who can you exchange services for to lighten your load?

BONUS: ASK FOR HELP
There are thousands of business owners out there, and most of them are willing to help others. If you are truly stumped, ask for help.

What tips would you suggest for those struggling with running their business?

Leadership Defined

Positional Leadership:

Positional leadership is ‘leadership by default’, where the holder, regardless of their actual “authority”, has been placed in a position to  influence others by the rank held over them. The main motivation of followers is fear. Fear of sanctions if they do not follow the direction of the leader. Further, this type of leadership position needs no ‘natural born leadership’ qualities, as the person was chosen, often, by outside factors.

Situational Leadership:

Drastically different from Positional Leadership, Situational Leadership leaders derives their authority from their followers – followers who want to be led. The leader’s most powerful tool is their natural leadership style, which allows them to get others to participate willingly and eagerly. There are little or no threats of sanctions and is considered the truest form of leadership styles.

John Maxwell said, “leadership is the ability to obtain followers”. In an organization, often the wrong individuals are promoted to positions of power. Because of this positional leadership, their followers grow to resent them and diminish productivity. In many cases, individuals are promoted because they excelled at a certain task – often nothing to do with leadership itself. For example, at a software firm, a programmer who completes his projects on time, sticks to a budget, arrives on time, and follows the rules, may be picked to lead the group. However, this programer, whose passion is coding software, not leading a group.

In a recent study, 80% of corporate leaders said they do not feel their skills are being used efficiently. Why is that? It is because our culture attempts to force-feed leadership qualities into individuals who have no desire to be leaders. A “promotion” is a good thing, and one would be out of their mind to decline, right? But what if that promotion came with tasks and responsibilities that made you hate your job? What if you dreaded going to work each day because you didn’t feel that you were equipped to do it properly?

A colleague, owner of a high-end fabric/textile importing shop, was sharing part of his life story. He had it made. He was making six- to seven-figures a year, had a nice house, nice car, travelled the world, met with royalty to purchase his textiles – yet he was unhappy. Every day.

Unhappiness among corporate leaders is a poison that drips from the top down. His unhappiness was reflected in the employees of his business. No longer were they happy to be at work. Like their boss, they dreaded going to work each day. Finally, it occurred to him that he got into the business because of his love for people and fabric. He did not want to lead the company, he wanted to be with the employees each day, working along side them. What did he do? He demoted himself. He hired someone else – who had natural leadership skills and the desire to lead a team. A company full of positional leaders is destined for trouble.

Rather than force-feeding skills that impact the company directly, why not focus on an employee’s strengths? Why not encourage employees to seek out training that they find interesting? Identify employee’s weaknesses and avoid putting them in a position where they will be forced to use them.

Happy employees lead to a more efficient company. Period.

Next: Modeling The Way as a Situational Leader

When the geeks at NCR in Australia threatened to go on strike, it was a move that could have paralyzed ATMs, supermarket cash registers and airplane check-in. This underlines the fact that IT has become so central to almost all corporations, that any disruption may cost a lot of time and money, which again means that keeping the geeks happy at work is an absolute requirement for a modern business. Happy geeks are effective geeks. The main reason IT people are unhappy at work is bad relations with management, often because geeks and managers have fundamentally different personalities, professional backgrounds and ambitions. Some people conclude that geeks hate managers and are impossible to lead. The expression “managing geeks is like herding cats” is sometimes used, but that’s just plain wrong. The fact is that IT people hate bad management and have even less tolerance for it than most other kinds of employees.

So where does it go wrong? Here are some top ways that managers can lead geeks effectively and respectfully.

1. Value training. If a boss thinks that training is a waste of money and expects you to teach yourself, you feel pretty demotivated in any job. Training matters, especially in IT, and managers must realize that and budget for it. Sometimes you get the argument that “if I give them training a competitor will hire them away.” That may be true, but the alternative is to only have employees who are too unskilled to work anywhere else. Also, if you pay them well and have good benefits, they won’t go somewhere else.
2. Give recognition. Since managers may not understand the work geeks do very well, it’s hard for them to recognize and reward a job well done, which hurts motivation. The solution is to work together to define a set of goals that both parties agree on. When these goals are met the geeks are doing a great job.
3. 

   Keep overtime down. Avoid taking the approach of wringing as much as possible out of IT employees just because you figure they don’t lead a normal life. Wrong! That’s a huge mistake and overworked geeks burn out or simply quit. It’s a complete myth that long work hours are good for business.

4. Avoid using management-speak. Geeks hate management-speak and see it as superficial and dishonest. Managers shouldn’t learn to speak tech, but they should drop the biz-buzzwords. A manager can say “We need to proactively impact our time-to-market” or simply use plain English and stick to “We gotta be on time with this project”. The latter makes total sense to everyone involved.
5. Don’t try to be smarter than the geeks. When managers don’t know anything about a technical question, they should simply admit it. Geeks respect them for that, but not for pretending to know. And they will catch it – geeks are smart.
6. Act consistently. Geeks have an ingrained sense of fairness, probably related to the fact that in IT, structure and consistency is critical. The documentation can’t say one thing while the code does something else, and similarly, managers can’t say one thing and then do something else.
7. Don’t make the mistake of ignoring the geeks. Because managers and geeks are different types of people, managers may end up leaving the geeks alone. This makes leading them difficult, and geeks need good leadership – the same as all other personnel groups.
8. 

   Include them in decisions. Never make decisions without consulting geeks. Geeks usually know the technical side of the business better than the manager, so making a technical decision without consulting them is one of the biggest mistakes a leader can make.

9. Give them the tools needed. A fast computer may cost more money than an older one and it may not be corporate standard, but geeks use computers differently. A slow computer lowers productivity and is a daily annoyance. So is outdated software. Give them the tools they need. Understand that tools come in many forms. Caffeine is considered a standard tool among Geeks. It’s good to keep a supply of the caffeinated beverages your team prefers handy.
10. Remember that geeks are creative workers. Programming is a creative process, not an industrial one. Geeks must constantly come up with solutions to new problems and rarely ever solve the same problem twice. Therefore they need leeway and flexibility. Strict dress codes and too much red tape kill all innovation. They also need creative surroundings to avoid “death by cubicle”.
11. Recognize the outcomes of not treating geeks with respect as outlined above. Happy geeks are productive geeks, and the most important factor is good management, tailored to their situation. Doing the opposite to what has been outlined in this article has serious consequences for your organization, including:
    • Low motivation
    • High employee turnover
    • Increased absenteeism
    • Lower productivity
    • Lower quality
    • Bad service

    Additional Information & Tips

    • Some of the most basic principles of management apply to all employees, geeks and non-geeks. Be fair. Be open.
    • Geeks are smart. Don’t assume smart people always have sound judgment- they don’t. Rely on the ones who have it; learn from them- evolve.
    • Geeks don’t like dead weight. No one does. If you have any, get rid of it, and your team will be better off. Teams only work when everyone is pulling their weight.
    • Find out what your geeks like besides work, and take an interest when you can. They’ll appreciate your effort.
    • If you’re a “geek managing geeks,” as many of us are, don’t wear your boss hat like a crown. They know you’re in charge- don’t carry it like a sign.
    • Caveat: not all geeks are the same; take the time to know the ones you work with. This article is not saying that all IT-people are geeks; some are, some aren’t.
    • This advice would work well with most employees, not just geeks.
    • Don’t call geeks, ‘geeks’. As noted below it is normally derogatory (and in some cases brings back horrible memories from high school).
    • The word ‘geek’ in this article is not used in a derogatory manner: “definition 3: an enthusiast or expertespecially in a technological field or activity <computer geek>.”^[1]
      • The word geek is normally derogatory, but it is thought of as meaning a person with skill and knowledge in the computer arena.

I worked from home for over 6 months before moving across the world and taking my first office job. For those wondering why anyone would give up working from home, there were a few reasons that contributed to my decision:

• Getting to work with like minded people in the same industry
• Traveling across the world and being independent
• Working with large clients I couldn’t have gotten on my own

That aside, I’d like to get into my tips on becoming more productive in the office, especially when you have access to the internet. I work in the social media industry and when you spend a lot of time on sites that promote amazing content, it can be difficult not to get in a situation where you have 20 browser tabs open and minimal work completed.

1. Set a time for emails
   Email is a very big feature in most office environments but this handy form of communication can easily become a huge distraction. Whenever we are at work, we are usually busy with one project or another; incoming emails just add more to the to-do list. In fact, seeing more emails come in when you are already working on a few projects can add to your stress levels and cause you to become less productive.

   What I’ve been trying, is to have a set time for emails. You could have:

   • A scheduled time each day to check email (i.e. 9am & 2pm)
   • A plan to only open them once current tasks are finished

   Of course, if you are going to do this you might want to speak to your boss / coworkers to explain the situation. The benefit of having a time for emails is that you are left to focus on the jobs you do have left, rather than worry about all your jobs piling up and getting distracted by responding to emails during jobs.

2. Ban yourself from websites
   I’m actually serious about this and this has been one of the best techniques to help me increase productivity. If there are certain websites that you keep going to during the day for enjoyment, even a few minutes now and then, then your productivity is going to decline and your tasks will quickly ad up.

   If you use Firefox, then you can install the Leechblock extension. There are other extensions that do the job but the thing I like about this is it’s actually takes about a minute just to unblock a website. Therefore you resist the urge to go and do it because it’s not just a ‘enter your password’ quick job to get back on one of your favorite productivity killers.

3. Don’t finish everything
   This is a tip that is most often given to programmers but I’ve found it to help me even when doing client reports or proposals. The idea behind this is that you don’t finish each day with all tasks done, unless the deadline is for that day.

   For example, if you are writing a proposal full of ideas on how to help a client, leave room for more ideas and head home. When you get back the next day you’ll be able to read your previous ideas and that will instantly get you back into work mode with your mind on the tasks at hand.

4. Change your lunch hour
   The times when I tend to be the most productive are when there are less people around me. For most of you, this is when most staff are on lunch. So for example, if most people go on lunch at 1pm then you should go at 12 or 2. That way, you have a complete hour of less distractions and noise.

   If you tend to go to lunch with a few people then see if they can change their schedules a little so that you can all become more productive. Just be careful to make sure that the rest of the office doesn’t follow suit.

5. Hide on screen distractions
   If you work on a computer then do your best to hide any on-screen distractions that might interrupt whatever you are working on. For example you may want to close things such as:
   • MSN or other instant messengers
   • Skype
   • Inactive programs such as Photoshop or Gimp
   • Distracting pop-ups and auto running programs

   Even when I’m writing, I completely cut off all on screen distractions. For most of my writing I use a text editor known asDarkRoom, you can see how this looks for writing this blog post below:

   Darkroom actually makes your whole screen black so that you can’t see anything else. This is a bonus because even if someone is chatting to you on an instant messaging program then you can’t see it until you are prepared to be interrupted.

6. Set yourself false deadlines
   This is a productivity / motivation tip that could really be used anywhere but works very well for me in my office environment. Basically it is about giving yourself false time deadlines so that you prioritize a task and push to get it done without wasting time.

   If you have 3 hours to get a report done then see if you can get it done in 2 and tell yourself that you must get it done in two. Of course, don’t lose quality in favor of quantity but I find this method means I just instantly cut out all noise and distractions and just focus immensely on the task at hand.

I advise people to only try the ones they think will help them the most; I think banning websites has been the most effective solution for me. If you are going to do all of these, then prepare to have more hours free than you know what to do with.

Dumb Little Man

I don’t know about you, but in my own professional life I often get so bogged down with the details of my daily work that I forget – or I ‘don’t have time’ – to sit back and widen my vision, to fly up and take a bird’s eye view of the whole landscape. Being in the thick of it all, I often don’t see the wood for the trees. In fact, the very idea of ‘sitting back’ and looking at the bigger picture somehow seems like laziness – shouldn’t I be working, doing something, being productive, not just floating around watching while everyone else gets on with things?

I am going to suggest that this attitude is quite wrong and that we should, in fact, be habitually taking in the bigger view, surveying the entire terrain of our lives and our world. If we don’t do this, we run the risk of being reduced to machines, trudging along, doing what we do without really thinking about why.

I suggest that coming up with a mission statement can, as part of a package of changes, be a very effective way of bringing more meaning and happiness into your life.

Most individuals don’t have a mission statement. They don’t have a clear idea of where they are going in life; they don’t know what they want to achieve. They just drift along, year after year, decade after decade. Most people live like that and they die like that. Napoleon Hill, in his famous book Think and Grow Rich, wrote that most people did not have a goal, did not now where they were going. He also presented a six step plan by which anyone could achieve financial success. If you want to find out about the plan, it’s presented in chapter 2 of the book, but the key element in the plan is that a clear statement of purpose, and a mission statement, can be a powerful way of achieving this.

A mission statement, however, cannot just be thrown together. It needs to be carefully crafted. Here are the elements of a good mission statement.

• Your goals should be specific and clear
  What are your values? What do you stand for? What are you going to achieve? What are you going to contribute to the world? This isn’t about what you want to achieve – it’s not a wish list; it’s a definite statement of intent, it’s your ‘order’ from the menu of the universe, it’s what is going to happen. When you start to get bogged down in the details of daily life, think back to your mission statement – it will act as a compass to keep you on track; your decisions and actions will be guided by it. In this sense, it provides you with a wide angle lens through which you can keep the bigger picture in view.
• Your goals do not need to be (SHOULD not be) ‘realistic’ or ‘attainable’
  We’ve all heard about ‘SMART’ targets which have to be measurable, realistic etc., etc. The point here is that the universe can do anything, however unbelievable or ‘unrealistic’ it is.

  It should indicate how you are going to achieve your goals – this does not contradict the previous statement. You must not include a specific, detailed plan, but a statement about what you are going to offer in exchange for meeting your goal. For example, your goal is to be the best sales person in your company – you will achieve this goal by giving outstanding service to every customer. There’s nothing here about sales targets, how many clients you need to see, how many sales you need to make etc. Once you have written down the ‘how’ in general terms, the universe will do the rest.




• It should be short
  Some organizations produce long rambling mission statements which nobody ever reads! Napoleon Hill suggests you read through your ‘mission statement’ every morning and evening; you’re not going to do this if it’s going to take twenty minutes. And the ideas aren’t going to be as powerful if they’re not focused. So keep it short, focused and powerful, like a laser beam.




• It should make you feel good
  If you know where you’re going, you’ll live a life of eager anticipation and joy. Just as if you are sailing somewhere on a ship – you know you’ll get to your destination and in the meantime you’re enjoying the view. This attitude of anticipating a future you have already chosen (you bought the ticket, you got on the ship, the ship’s moving) whilst living in the present moment (you’re looking out at a wonderful sunrise, enjoying the view) is, to me, the only sensible way to live.

Taking time to write and regularly review your mission statement is one of the most important things you can do in life. Next time you get bogged down in the day-to-day detail of life, stop and think about your mission statement. It will keep things in perspective; it will clarify your vision and it will keep you moving on the right course.

Your life is like a ship – of course, you need a crew, busily working away to keep afloat and keep moving, but even more importantly, you need a map, you need a compass and you need a captain. Without them, your ship just won’t get anywhere.

Dumb Little Man

If you like download a free copy of “The Seven Habits of Highly Effective People” for listening on your iPod or any other MP3 player, go toaudible.com and click the download button. To avail this offer, make sure that you select “USA” as the country when creating a free audible account on the next page.

The Seven Habits of Highly Effective People has sold more than 15 million copies worldwide while the audio version (that you just downloaded) was the first non-fiction audiobook in U.S. publishing history to sell more than one million copies according to Wikipedia.

You can also burn these audiobooks onto a CD and listen in your car while driving.

The HowTo team at Mahalo has been an amazing surprise effort. We didn’t plan on making howto articles, but when we built various how to search pages we realized that many howto articles were, well, lacking. So, we started building select ones where we thought we could help. This one on how to save money is very good.

I’ve got a bunch of tips on how to do this for business. Among them:

1. Buy Macintosh computers, save money on an IT department
2. Buy second monitors for everyone, they will save at least 30 minutes a day, which is 100 hours a year… which is at least $2,000 a year…. which is $6,000 over three years. A second monitor cost $300-500 depending on which one you get. That means you’re getting 10-20x return on your investment… and you’ve got a happy team member.
3. Buy everyone lunch four days a week and establish a no-meetings policy. Going out for food or ording in takes at least 20-60 minutes more than walking up to the buffet and eating. If you do meetings over lunch you also save that time. So, 30 minutes a day across say four days a week is two hours a week… which is 100 hours a year. You get the idea.
4. Buy cheap tables and expensive chairs. Tables are a complete rip off. We buy stainless steel restaurant tables that are $100 and $600 Areon chairs. Total cost per workstation? $700. Compare that to buying a $500-$1,500 cube/designer workstation. The chair is the only thing that matters… invest in it.
5. Don’t buy a phone system. No one will use it. No one at Mahalo has a desk phone except the admin folks. Everyone else is on IRC, chat, and their cell phone. Everyone has a cell phone, folks would rather get calls on it, and 99% of communication is NOT on the phone. Savings? At least $500 a year per person… 50 people over three years? $75-100k
6. Rent out your extra space. Many folks have extra space in their office. If you rent 5-10 desks for $500 each you can cut your burn $2,500 to $5,000 a month, or $30-60,000 a year. That’s big money.
7. Outsource accounting and HR—such a no brainer.
8. Don’t buy everyone Microsoft Office–it’s too much money. Put Office on three or four common computers and use Google Docs.
9. Use Google hosted email. $50 or free per user…. how can you beat that?!?! Why screw with an exchange server!?!?
10. Buy your hardest working folks computers for home. If you have folks who are willing to work an extra hour a day a week you should get them a computer for home. Once you get to three hours of work a week from home you’re at 150 hours a year and that’s a no brainer. Invest in equipment *if* the person is a workaholic.
11. Fire people who are not workaholics. don’t love their work… come on folks, this is startup life, it’s not a game. don’t work at a startup if you’re not into it–go work at the post office or stabucks if you’re not into it you want balance in your life. For realz.
12. Get an expensive, automatic espresso machine at the office. Going to starbucks twice a day cost $4 each time, but more importantly it costs 20 minutes. Buy a $3-5,000 Jura industrial, get the good beans, and supply the coffee room with soy, low fat, etc. 50 people making one trip a day is 20 hours of wasted time for the company, and $150 in coffee costs for the employees. Makes no sense.
13. Stock the fridge with sodas—same drill as above.
14. Allow folks to work off hours. Commuting sucks and is a waste of time for everyone. Let folks start at 6am or 11am and you’ll cut their commute in half (at least in LA).
15. Go to each of your vendors every 6-9 months and ask for 10-30% off. If half of them say yes you’ll save 5-15% on fixed costs. People will give you a discount if they think they are going to lose the business.
16. Don’t waste money on recruiters. Get inside of linkedin and Facebook and start looking for people–it works better anyway.
17. Really think about if you need that $15,000 a month PR firm. Perhaps you can get a PR consultant to work on 2-3 projects a year for $10-15k each and save 75%. More PR firms are wasted half the year while you build up your product anyway.{I’m going to add a couple more of mine as I remember them }
18. Outsource to middle America: There are tons of brilliant people living between San Francisco, Los Angeles, and New York who don’t live in a $4,000 one bedroom apartment and pay $8 to dry clean a shirt–hire them!

Anyone else have startup money saving tips? I will post them below as they come in…

1. Peter Rojas of RCRDLBL: You probably don’t need to rent an office, at least not at first. It’s really easy to collaborate online, and unless you have a really compelling reason for everyone being in the same place at the same time, you should save your money for as long as you can get away with it. Plus it’ll force you to hire people who don’t need to be micromanaged.
2. Pat Phelan gives a ton of advice including: a) No company cars, b) put your HQ in the burbs to save 50% on rent, c) Blog instead of hiring a PR firm, d) let one person book flights since it’s an art, e) keep conference calls to a minimum (amen to that!).