I have a new blog!

Hi everyone,

I've decided to get with the times and start using a custom blog platform. But what does that mean? It means I'm no longer posting here. I'm posting here. So come on over!

Hope to see you there,

Tom

Don't Waste an Economic Downturn

I honestly do not know who said it first, so, we'll just say it was me-

Never waste an economic downturn....

I think its brilliant- I listen to the traditional business people discussing the traditional business responses to the economic downturn - Lots of blah, blah, blah- let's face it, old-white-guy-lip-flapping... Here is a sample-
"Companies need to ride out the economic downturn..."
"Only the big, stable companies will survive this recession..."
"There will be a shake-out which will leave a very few winners..."

Where do these people get their data? The strong, scrappy companies know that it is harvest time for the sharp and courageous- You do not bury your head in the sand during a fantastic period like this one-
Here is what I am talking about-

Headhunt - There is so much great talent available right now. Larger companies, following traditional thinking and quarterly driven expectations, have cleaved off many talented people- REGARDLESS of talent or performance. You pick up your best people during times like these, because frankly they would not be available during more stable conditions. Go hire, right now, this is the time of opportunity.

Moneyhunt - Wow- money is tight- I am not going to blow smoke on this issue. However, I have been in 15 cities in the last 90 days and there is money out there- but you will need new banking relationships to get it. The banks with money are using this time to gain marketshare- so they are poaching through lending. Don't even bother with the usual suspects- they are still digging out of the last cycle of bad decisions.

Build Capacity - You cannot invest in your business at a better time than right now. Equipment, land, technologies, buildings are all at fire sales prices. Back to the money- you are going to have to clean up your Balance Sheet and get your story- all that there is to know about you and your industry- put together and cleaned up. Having said that- this is the time to re-position your company and to own the next business cycle against your competitors. Do what your competitors are doing and you will be in the same position at the end of this cycle as you were when you started. You have to go against the tide in this cycle to own the next one.

I read Berkshire Hathaway's Chairman's Letter every year, written by Warren Buffett. He has complained for TEN YEARS that the market was too strong to invest in- read that one again slow. What is he doing and having his portfolio CEOs do right now? Headhunt, build capacity, make strategic acquisitions- because opportunity is found in the downturn- don't waste it.

Roller Coasters

In a grim little post-industrial town on the edge of Lake Erie, there is an amusement park called Cedar Point. I will confess that amusement parks, bus terminals and Iowa caucuses leave the reasonable person in the role of contemplative human observer saying- "God, what were you thinking?"

Cedar Point is known for one thing - roller coasters. They have 5 of the top 20 roller coasters in the country. They have 17 roller coasters in all. This is why people travel thousands of miles to a place where the "T to T" ratio, (tattoos to teeth) exceeds 1.0 and it seems that even the fountain drinks are deep-fat fried- because this is the holy place of roller coaster thrill seekers.

This past weekend I kept thinking, "Why is this place packed!?! Why am I paying Manhattan prices for Pocono rooms? How come every person I know across the country knows about this place, and yet I can't find hardly any marketing or media campaign that is memorable?"

It's about the roller coasters. Period. They spend unholy amounts of money on one thing, they neglect almost everything else, (trust me, the listless zombies running the rides were the gold star level of service for the whole joint), except the roller coasters.

What about us? What is the absolutely laser-etched thing that you and your company are known for everywhere? Can you name it in less than 3 words? Can your clients?

People are lining up at Cedar Point today at 7:30am for a 10am opening time. Roller coasters.

Best Business Dinner Conversation Starter

I went to a great business dinner this week. Usual suspects of trappings - Morton's for the meal, ridiculously expensive wines, private room, great server- you get the picture. But, that's not what made it so memorable.

One of the owners of the firm stood up and gave a toast to his grandfather- "My grandfather was an immigrant who came to this country at 11 years old with a buck in his pocket and no ability to speak the language. I am his American dream- to have his grandchild complete an advanced degree, own part of a great company and live in freedom was why he came and worked so hard. I toast him tonight."

The CEO then said- "Thank you for that great toast. We are probably all a part of our parents, our grand-parents or great-grand-parents American dream. I would love to hear some of the other people's stories." And with that, great stories, laughs and relationship building started happening at a much more remarkable level.

Couple of tips if you are going to do this-

1. Don't push - someone doesn't want to share or seems really uncomfortable, then just say, "We can come back to you later if you want or jump in when you want later." If the person doesn't jump in, don't go back.
2. Keep it moving - some people love a stage and they can take a story out forever. If you find someone like this, grab a thread of their story and interrupt- for example, "Your grand-parents came through Ellis Island? I wonder how many else's grand-parents came through Ellis Island- can I see a show of hands?" then re-direct the conversation to one of the other people who hasn't spoken. Monopolizers, often CEO's, can be a real buzz-kill on a conversation like this one.
3. Help out the speaker - since you have opened up the conversation through this approach, you need to keep the conversation interesting and moving through questions to speakers when they are either telling a boring story or droning on.
4. Get your own story right - if you tell the first story, you need to include fun details, a quick anecdote, a physical description, even something risque- You are setting the bar of whether these stories will be sleepy travelogues or fantastic fun.

This was a great conversation starter for a table of 6 - 12. If you have a great conversation starter, I would love to hear it- post it up!