Business Ethics: BizBit #2 - Be Honest - Don't "Fake It Till You Make It!"
Be honest about where you are, because the truth will come out eventually.
People will respect the fact that you are honest and therefore trustworthy, these attributes will secure your future prospects for business.
Conversely, when associates discover you've been "faking it" the respect level quickly diminishes and bad news travels fast.
My strong recommendation is to stand confidently where you are while working toward the future.
H2B
www.youtube.com/How2Business
Monday, November 22, 2010
Monday, November 15, 2010
How To Business... Business Ethics: BizBit #1 - Stay Away From The Grey Areas
Business Ethics: BizBit #1 Stay Away From The Grey Areas
I would encourage anyone in business to have an honest discussion with themselves and/or partners prior to doing their first transaction.
This should be a frank discussion about parameters, boundaries and what practices are acceptable and which ones are off limits.
Opportunities will present themselves constantly and after you've had that heart to heart you will be better equipped to place each one in the category it belongs. There are so many ways to do legitimate, honest business and the potential cost for operating in the grey doesn't justify itself.
A ruined reputation or jail time will cost more in the long term than any amount of short term gain.
In business remember... If It's Grey, Stay Away!!
H2B
www.youtube.com/how2business
I would encourage anyone in business to have an honest discussion with themselves and/or partners prior to doing their first transaction.
This should be a frank discussion about parameters, boundaries and what practices are acceptable and which ones are off limits.
Opportunities will present themselves constantly and after you've had that heart to heart you will be better equipped to place each one in the category it belongs. There are so many ways to do legitimate, honest business and the potential cost for operating in the grey doesn't justify itself.
A ruined reputation or jail time will cost more in the long term than any amount of short term gain.
In business remember... If It's Grey, Stay Away!!
H2B
www.youtube.com/how2business
Wednesday, November 10, 2010
How To Business... Working With Others: BizBit #4 - Choose Your Partner Wisely
WORKING WITH OTHERS: BizBit #4 - Choose Your Partner Wisely
Choosing a partner in business is not necessarily as important as choosing the right life partner, but the same vetting process should occur. You should make sure you can work in pressure or tense situations together.
Undoubtedly along your path to success in business you will encounter challenges along the way; if the two of you fracture at the point of impact the partnership is bound for failure.
You should agree on a plan of action, or at least the general direction for the growth and future success of your business. One of the worst things you could do is to partner up with someone that doesn't agree on the direction to move the business or differs in opinion of how they view the development of the industry you're in... How can two walk together except they agree?
Another key point to consider in business ethics and personal values is that you want to make sure your partner shares a similar value and moral system.
For example, if you're not ok with back door deals or operating in ethically gray areas you should make sure your partner feels the same way about the situation.
The last point I want to discuss is equal value contribution. This is very important. The key to long term happiness in a business partnership is equal value contribution. Once the money starts flowing and then equally divided among the partners the truth will emerge. If one partner feels they've done more than the other, but they are getting paid the same amount, that's the beginning of the end. You should agree in advance about duties and responsibilities to avoid
any confusion later.
Ultimately, if you move cautiously into any partnership and weigh options carefully and objectively you will be fine.
H2B
www.youtube.com/How2Business
Choosing a partner in business is not necessarily as important as choosing the right life partner, but the same vetting process should occur. You should make sure you can work in pressure or tense situations together.
Undoubtedly along your path to success in business you will encounter challenges along the way; if the two of you fracture at the point of impact the partnership is bound for failure.
You should agree on a plan of action, or at least the general direction for the growth and future success of your business. One of the worst things you could do is to partner up with someone that doesn't agree on the direction to move the business or differs in opinion of how they view the development of the industry you're in... How can two walk together except they agree?
Another key point to consider in business ethics and personal values is that you want to make sure your partner shares a similar value and moral system.
For example, if you're not ok with back door deals or operating in ethically gray areas you should make sure your partner feels the same way about the situation.
The last point I want to discuss is equal value contribution. This is very important. The key to long term happiness in a business partnership is equal value contribution. Once the money starts flowing and then equally divided among the partners the truth will emerge. If one partner feels they've done more than the other, but they are getting paid the same amount, that's the beginning of the end. You should agree in advance about duties and responsibilities to avoid
any confusion later.
Ultimately, if you move cautiously into any partnership and weigh options carefully and objectively you will be fine.
H2B
www.youtube.com/How2Business
Monday, November 8, 2010
How To Business... Working With Others: BizBit #3 - Don't Rely On Only One Source
Working With Others: BizBit #3 - Don't Rely On Only One Source
Most people don't like to be caged in and that's what happens when you leave yourself with limited options.
Having only one source puts you at so many disadvantages it's never good and even if it's not bad it could have been better.
Here are just a few things that can happen as a result of limited options:
1) You give up any leverage you might have had during negotiations
2) You place yourself in a position to be pinched by time constraints by creating a "Vegas or Bust" scenario
3) You open yourself up to be held hostage on pricing and service
Often times you'll find that as negotiations move along some options eliminate themselves, but it's wise to actively cultivate more choices to balance out the attrition.
Having multiple options gives you the power of choice and psychologically keeps you out of the desperate / needy zone.
The result is a calm, cool, collected negotiation that keeps you in the drivers seat...
H2B
www.youtube.com/How2Business
Most people don't like to be caged in and that's what happens when you leave yourself with limited options.
Having only one source puts you at so many disadvantages it's never good and even if it's not bad it could have been better.
Here are just a few things that can happen as a result of limited options:
1) You give up any leverage you might have had during negotiations
2) You place yourself in a position to be pinched by time constraints by creating a "Vegas or Bust" scenario
3) You open yourself up to be held hostage on pricing and service
Often times you'll find that as negotiations move along some options eliminate themselves, but it's wise to actively cultivate more choices to balance out the attrition.
Having multiple options gives you the power of choice and psychologically keeps you out of the desperate / needy zone.
The result is a calm, cool, collected negotiation that keeps you in the drivers seat...
H2B
www.youtube.com/How2Business
Friday, November 5, 2010
How To Business... "Working With Others" - BizBit #2: Working With Intermediaries
Working With Others- BizBit #2: Working with Intermediaries
They go by many names: Middle Men, Brokers, Deal Facilitators or Intermediaries.... all positions between you and the goal.
It's important to understand these people play a large role in business transactions on a day to day basis.
You successfully interfacing with them can be the difference in a "deal done" and a "dead deal".
It helps to understand the difference between a broker and a principle contact. Typically, a broker's value is in who they know not what they know, while a principle player's value is the opposite, it's what they know not necessarily who they know.
Nonetheless, the broker position is essential in getting certain deals done because they are the common point between you and potential opportunity. As in most relationships respect and communication are key values here...
Respect the position of the intermediary and clearly discuss and communicate what the compensation will include if and when the deal is consummated. Respecting these simple guidelines will allow for productive interactions with intermediaries.
H2B
www.YouTube.com/How2Business
They go by many names: Middle Men, Brokers, Deal Facilitators or Intermediaries.... all positions between you and the goal.
It's important to understand these people play a large role in business transactions on a day to day basis.
You successfully interfacing with them can be the difference in a "deal done" and a "dead deal".
It helps to understand the difference between a broker and a principle contact. Typically, a broker's value is in who they know not what they know, while a principle player's value is the opposite, it's what they know not necessarily who they know.
Nonetheless, the broker position is essential in getting certain deals done because they are the common point between you and potential opportunity. As in most relationships respect and communication are key values here...
Respect the position of the intermediary and clearly discuss and communicate what the compensation will include if and when the deal is consummated. Respecting these simple guidelines will allow for productive interactions with intermediaries.
H2B
www.YouTube.com/How2Business
Wednesday, November 3, 2010
How To Business... Working With Others: BizBit #1 - Be Nice To The Gate-Keeper
Working With Others: Bizbit #1 - Be Nice To The Gate-Keeper
You should always be nice, but especially to the front desk and assistants; the reasons are primarily because their opinions count too.
If treated poorly it could damage the future of your business relationships and people in these positions may not always be just "gatekeepers".
The latter is what I want to focus on, the gatekeepers typically graduate to being the ones on the inside of the gate. Sylvia Rhone, now one of the most powerful people in the music industry, started out as a receptionist and Albert Einstein started as a patent clerk.
The point is everybody starts somewhere, box boys graduate to driving Boxsters and calling the shots and if being nice is who you are, you'll be nice all the time, but in business, often times, it really does pay to be nice!
H2B
www.YouTube.com/How2Business
You should always be nice, but especially to the front desk and assistants; the reasons are primarily because their opinions count too.
If treated poorly it could damage the future of your business relationships and people in these positions may not always be just "gatekeepers".
The latter is what I want to focus on, the gatekeepers typically graduate to being the ones on the inside of the gate. Sylvia Rhone, now one of the most powerful people in the music industry, started out as a receptionist and Albert Einstein started as a patent clerk.
The point is everybody starts somewhere, box boys graduate to driving Boxsters and calling the shots and if being nice is who you are, you'll be nice all the time, but in business, often times, it really does pay to be nice!
H2B
www.YouTube.com/How2Business
Monday, November 1, 2010
How To Business... Negotiation & Deal Structuring: BizBit #6 - Concessions & How To Use Them
Negotiation & Deal Structuring: BizBit #6 - Concessions & How To Use Them
Concessions are a part of any deal that requires structuring or negotiation worth having, concessions are a reality of business. Since we know concessions will happen we should work to use them as a tool to aid us throughout our negotiations.
It's important to find a balance you don't want to roll over and you don't want to be too inflexible. As you give something you should get something, its an exchange.
Look to attach what you are asking for to conditions and parameters of the agreement.
For example, fed ed offers a service to send packages across the u.s the price is attached to speed of delivery and weight of package. If you want FedEx to work harder you pay more, its as easy as that.
See yourself in a similar fashion have a price, but be willing to flex and use concessions as a tool to advance your position in the deal.
H2B
www.youtube.com/How2Business
Concessions are a part of any deal that requires structuring or negotiation worth having, concessions are a reality of business. Since we know concessions will happen we should work to use them as a tool to aid us throughout our negotiations.
It's important to find a balance you don't want to roll over and you don't want to be too inflexible. As you give something you should get something, its an exchange.
Look to attach what you are asking for to conditions and parameters of the agreement.
For example, fed ed offers a service to send packages across the u.s the price is attached to speed of delivery and weight of package. If you want FedEx to work harder you pay more, its as easy as that.
See yourself in a similar fashion have a price, but be willing to flex and use concessions as a tool to advance your position in the deal.
H2B
www.youtube.com/How2Business
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