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Why small businesses stay small

A power culture is crucial for startups, but you can’t scale when power is concentrated. Things break because, at scale, owner-managers can’t decide everything in real time. To scale without breaking you need a role culture with devolved expertise and power.

Letting go of that control is a huge emotional leap for entrepreneurs. It requires the maturity — and humility — to recognise that you are not always the smartest person in the room. It requires personal growth before financial growth. It requires being honest about your own limitations.

Some small business owners accept these limitations and plough a profitable niche. Some entrepreneurs level up and bring in professionals to manage phase two of growth.

And, sadly, some do neither and are stuck in the middle: overtrading while infrastructure buckles.

If you are depending on a company like this for all or part of your competitive advantage, the prudent strategy is to find alternatives. Because pride will invariably come before a fall.

Why things don’t get done

Have you ever been in a meeting when it becomes apparent that all anyone in the room is going to do is describe problems? People around a table will compete to describe things in increasingly obfuscatory language until others recognise in that language terms they have heard before, from sources that they hold credible. They then reassure themselves that the right language is being used around the problem.

Everyone goes away happy. Six months later, when nothing has been achieved, more language will be found. But at some point, people are going to start asking: why hasn’t anything been done about this?

It’s one of three things: time, money or risk. The first two are easy to solve and easy to explain. There isn’t time to achieve this. OK, fine. We don’t have the budget. OK, fine. No one argues with that. If people want something badly enough they will always find more time or more budget. So that is not why things don’t get done.

The real problem is aversion to risk. It generally goes unspoken because people don’t want to admit they are afraid. But the truth is, people don’t want to expose themselves to the risk of (a) failure and (depending on the neurosis level in play) (b) being seen as an imposter. Therefore they will say things instead of doing things. They will say things that sound like they are doing things.

Every time we endeavour, we run the risk of failure. So what? Literally the worst that can happen is you learn how not to do something next time. You fail and you get to play again with better information. Failing — because you acted — takes you a whole lot closer to success than sitting around finding words.

This process is broken

Process 1. Diagnosis — Broken

  • You’re in Starbucks.
  • You order your coffee.
  • They ask you your first name.
  • Reluctantly you give it (OK, I confess I always say my first name is Mr Customer).
  • The barista writes your name on the cup and passes the cup down the production line.
  • You wait.
  • Finally Barista Number 2 puts a cup down on the counter and calls out “Double espresso?”
  • And eight people say “Yeah, me!”

 

Process 2. Diagnosis — Broken

  • You’re in McDonalds.
  • You use the machine to place your order.
  • You pay and it spits out an order number.
  • You go and look at the screen.
  • Your order number is being prepared.
  • Now your order number is ready to collect.
  • “Quarterpounder with cheese?” calls the McDonalds worker.
  • And eight people go: “Yeah, me!”

Guys, why are you doing things?
In every organisation there are multiple processes just like this.
Show up, ask yourself questions. Make changes. Live better.

 

Quality is a feeling

The great irony about quality is that, as soon as someone asks you to conform to a benchmark, they are forcing a product that is by definition generic.

That leaves the space open for someone to compete with something genuinely outstanding.

Quality is why the mega-budget Hollywood production falls off the abyss while the indie flick from left field, shot on super 8, catches everyone’s hearts.

Quality is the passion you have, the care you take, the finesse you demonstrate. Not the hoop you jump through. Quality is what you bring, not what someone takes away.

Quality isn’t a number, quality is a feeling. Quality is yours and quality is portable: you can take it with you when you go.

Why serious freelances avoid online “marketplaces”

The best freelances are not on Upwork. Or Hopwork. Or Bipwork. Or Bopwork.

There’s a reason you went into business for yourself and it wasn’t to give away your margin, your terms, brand equity, story and client relationship to someone else. If you want to hang around passively waiting for the call so that someone else can decide your worth, get a job already.

But you knew that, so you’ll be as excited as I am by the latest news from the world of joyless commodity “freelancing”. The merged entity Elance-oDesk, the world’s number one place to source generic work for very little, has rebranded as Upwork. The rebadging is tacit admission that there was zero equity worth keeping in either brand. That’s amusing in itself. (more…)