Potential is one of those oft-quoted terms used to express the opportunity in someone or the future of some thing, such as a business venture. It is usually followed by a concern that reaching that potential requires something yet to form. Potential, it appears, has a dark side. Perhaps, it is because so few of us know how to measure it.
In simple terms, potential is the “likelihood of doing or becoming something in the future.” As it applies to business, we see new products, services, capital improvements, businesses, and personnel decisions, for their potential to be profitable. NPV, IRR, and other calculations are used to help measure the “potential” success of these things. But like most things, we have less than perfect knowledge about them, and proceed with certain “reasonable” assumptions in place.
Good business sense, a knack for judging people, education, and experience all combine to reduce the risk of poor decision-making. But, as you might imagine, the opportunity in “potential” begs for serious efforts at measuring it. One such measurement device is called Five Forces Analysis (M. Porter), and means to focus attention on a common experience to achieve very practical results-the kind that seems to have a greater “potential” for success. (more…)
August 9, 2013 | admin
Everything bought is sold. It’s axiomatic that one follows the other. The gratification in the one may be more obvious than the other; buying things-not just spending money, such as on rent and utility bills-is near instant gratification for most. Even the depressed find their elixir in it. But what about selling those same things? Does it too deliver such elation and inner joy?
At some point those of us who buy must meet up with those of us who sell. Do we find strange the conclusion that we are all in both roles at times? Imagining the buyer in us is easy. He is impulsive, aware of oneself and his self image, loosely, how he thinks others think he thinks about himself, and driven by emotion to satisfy some urge-the taste in unusual food, the feel of new shoes, the specialness in attending a Broadway production, on Broadway.
He is also receptive to being sold, though he shuns this innermost desire. We all want to feel helped by others; it elevates our specialness. And when others reach out to inform and educate our choices-for our unique benefit-it raises our sense of belonging to another, an uppermost need in humans. (more…)
July 30, 2013 | admin
Most everything we do issues from a thought, the idea being that “thought becomes behavior.” It’s a commonly understood psychological motivation. But however well-endowed our thinking, “t” (time) is the arbiter of achievement and the efficiency that naturally obtains from it. Whatever we hope to accomplish is too often directly related to the time we spend on it. We may have little time for most things until we decide to take the time necessary to do them. No doubt, you can relate.
In the world of small business, “planning” is that elusive something that seldom gets the time it deserves. Very few Main Street businesses have plans to work from, a blueprint of sorts that charts the path to the stated goal-something virtually all business owners have, at least in mind. There are seldom in evidence a Business Plan, a Revenue Model, a Marketing Plan, or even a description of the Use Model for the targeted customer. Interestingly, there are often loosely knit thoughts about such things, but very little ever gets to paper. “What’s not on paper turns to vapor,” as the saying goes. That which ensures we return from the grocery store with the product we sought is the same as that which ensures we don’t overspend our resource-a list! (more…)
July 23, 2013 | admin
Is there a week that goes by without a mention of how technology is changing the world? What would life, especially work, be like without the Internet? Yet, most don’t know what the Internet is; that amorphous, mysterious “everything” that is always within reach, and which makes all other things also within easy reach. Does it really matter that we can’t describe it or that we don’t know how it works? Clearly not!
Those of us with products and services for sale-most of us-have learned well how to prepare our products for market; that elusive and often fickle group of people we call consumers. The business-to-business (B2B) world communicates among businesses in need of things from other businesses. The rest of us may get our “stuff” from businesses, often neighborhood shops, but the things we need are more likely to be found in the “economic breadbasket” of basic necessities than in a catalog. When in this role we’re called “consumers,” and suppliers to this group operate in the business-to-consumer (B2C) marketplace.
Largely the result of technology that brings us into focus on a supplier’s lens, we increasingly are people communicating with other people. Technology has innocently delivered everything for sale right into your lap; that is, if you’re using a laptop, as I am now. We are no longer having conversations with impersonal companies, but with the people in those companies who are often managing your problems-even chat rooms have people at the other end to help us-and who likely are making the decisions that will inform your buying habits. In the end, we are businesses talking to people-B2P. (more…)
July 16, 2013 | admin
I’m pleased to devote this week’s space to a guest columnist who shares his insightful observations about the limited life cycle of landmark products.-FJR
By Gord Hotchkiss
The first designs for the typewriter started showing up in the 1870s. After some rather imaginative designs, including one that looked like a pincushion, the Sholes and Glidden (S&G) Type Writer (1873) was the first writer to introduce the QWERTY keyboard (which we’re still using today). The QWERTY design was introduced to overcome the physical limitations of the machine, which tended to become jammed if frequently used keys were located next to each other. The reason we still use it? Well, suffice to say, habits are a tough thing to break.
The S&G design, and all the other variations that followed for the next two decades, tried various approaches, but all had one thing in common: They were all “understroke” or “blind” writers. The keys hit the paper on the bottom of the platen so users couldn’t see what they were typing.
In the mid-1890s, John T. Underwood was trying to figure what to do with his company, a fairly significant provider of ribbons and carbon paper to then-dominant typewriter manufacturer Remington.
The company had spun off its typewriter division from the sewing machine division, which in turn had evolved from its main business of making guns. But Underwood had heard Remington had plans to start making its own consumables. He countered by declaring, “All right, then, we’ll just build our own typewriter.” Fate upped the ante by bringing together Underwood and German-American inventor Franz X. Wagner. (more…)
July 9, 2013 | admin
By Frank J. Rich
Among the greatest pleasures of the curious mind is to discover yet another gem hidden in plain sight. Convenience has its way with people, especially when we turn into consumers. It determines where we find our goods and services, how we relate to local communities, and where we put down roots. It is seldom that we travel 10-miles for great bread, wishing it were closer to take fuller advantage of its unique qualities. The Hungry Ghost in North Hampton, Mass., is such a place.
Its dedication to rustic breads, the kind you leave face down on a wooden board for as long as you wish until ready for another piece, is truly the bread of life. I stopped there whenever visiting my daughter, who attended college in town. I have never found its equal, though I’ve not been there since her graduation. But I never stop wishing it were closer.
Our penchant for convenience drives most decisions, not least where we shop. But the motivation can have hidden consequences. You may recall an American Express TV commercial from the ’70s and ’80s wherein Karl Malden, who starred with Michael Douglas in TV series “The Streets of San Francisco,” was pitchman. It’s fair to say that Malden was the Walter Cronkite of the Screen Actors Guild at the time, an organization he also led as president for five years. (more…)
June 25, 2013 | admin
By Frank J. Rich
Most catchphrases gain value when used to further a goal, even as simple a goal as enjoying what we’re doing in the moment. Take the phrase: “The end justifies the means.” You’ve heard it; and hopefully its meaning to you creates a reaction. At least then, you’ll know you’re breathing – a good thing. It’s what warms the stomach that ignites our passions, that which moves us to do the things that bring us closer to the goal in mind. It is this, the things we do – the means; to accomplish the goal – the ends that most affect the achievement of our goals. We not only set expected outcomes, but we also set the means in place. In other words, will the means as well as willing the ends.
Goals are the drivers of most activity. When clear, realistic, and measurable, they can be sustenance for organizations of all kinds – for profit and not-for-profit alike. They have been so honored that god-like, goals have come to define most initiatives for their ability to succeed. If stated and supported they position potential higher. But however well thought out and aggressive or high-minded they are nothing is gained without the “means” to achieve them. It is this lesser god that makes all else possible. (more…)
June 18, 2013 | admin