The Executive Advocate Philosophy

We hope these writings have been of use to those managing their own business. We can attest that creating many of the entries have been of great value to us.

However, times are changing. A growing need has captured our attention as illustrated by the following graph found on the Executive Advocate Facebook page.

We had been assuming that baby boomers would be selling businesses to younger entrepreneur types. Not so!  The graph show the greatest increase in business ownership is in the 55 to 64 age brackets, followed by the over 65 age bracket.

What's happening here? Baby boomers are selling businesses to other baby boomers. Why? It appears that the disappointing results of all saving programs have left those with business management capabilities in a position they are financially unable to retire. Sadly, their aging is also making them unemployable. What alternatives do they have? Business ownership stands out as a really good one.

The danger is that if a young entrepreneur gets into a business that fails, there is plenty of time and resources left to just go start another business or get into another career. At 55 or 65 or older, that luxury isn't there. An investment of your time and financial resources must work! So how does someone go about making the right decision in buying or starting their own business?

Key Executives use an Executive Headhunter to help them locate career opportunities because they know the very best ones are not to be found in classified listings. The same thing is true with business opportunities. The very best ones are not in the business listings. An Executive Advocate locates them; and this is a sophisticated process.

Those doing this on their own all start making the same mistake, a focus on financial information. At best, this is information about the seller. The career transition process needs to start with the personal business strengths of the buyer. This determines where the search for buying a business must focus. Burn-out is so prevalent today that a search of any industry will find owners of good businesses ready to sell because they are tired. It's an art to be able to get them to believe there is a qualified buyer waiting for them; but it has an can be done by trained specialists. Now addressing financial information is really useful. It can be placed in the context of what this opportunity can mean to the buyer.

There is another alternative for the executive in career transition. A business franchise offers industry experience and support. These are generally start-ups; but a comparison of buying a franchise versus starting a business shows that historical success rates for the franchise model are much more successful.

The key is a focus on the buyer instead of the seller-focused business broker model being generally used. This fundamental paradigm change has become the focus of those involved with The Active Investor blog. Future posts will no longer be here; but on the new Executive Advocate website blog. We hope everyone who enjoyed these posts will now find those as interesting.

The DREAM needs an Effective Business Plan

A business dream usually can't be executed solo. We often need to attract investors, secure lending relationships, and have a way to guide future business growth. Business plans have become the media we use at this point. Because of their importance, computer planning tools are available to assist the entrepreneur in their development.

A wonderful idea can be married with a fantastic technology to produce dismal results. For example, food is a wonderful idea. We all love food. Airplanes are a fantastic technology. The offspring of this marriage is airplane food. There is some wonderful food served in first class; however, the words "airplane food" bring to mind something uninspiring.

Business plans are a wonderful idea. Lay out in text and charts exactly what you intend to do and how you intend to get it done. Computer automation is a fantastic technology saving users untold hours of unnecessary work. But their offspring, the typical automated business plan, is as exciting as airplane food. Pity those that have to read them for a living.

How do we upgrade to first class? Our intention is not to just get by; it's to attract the best - funding, talent, clients, etc. Adequate simply will not suffice.

Business Model Generation, a technique described in the book by that name, offers an exciting and elegant place to start. A Business Model is an abstract version of the business broken down into 9 key elements. It represents the flow of people, products, ideas, information and values that drive the revenues and costs of a business. By taking time to first abstract the business dream on paper, we develop an appreciation of its inherent values and attractive features.

Now take that Business Model and apply it to a specific set of circumstances and we have the makings of something interesting. If the model is exciting, the specifics of a plan can be written (even with the assistance of computer software) so that the excitement flows through it. If the sizzle isn't there in the beginning, no computer application is going to add it. Our dreams are always exciting.

At Murphy Business, we use Business Model Generation in our Executive Advocate (sm) programs. These programs fit executive buyers to target business acquisitions that have the greatest likelihood of success for their future growth. We don't start with a business plan. There is too much unknown about our client. We start with the client's Business Model Canvas. This specific graphical representation of the Business Model becomes part of a highly profiled search criteria to find "unadvertised" potential business acquisition targets. Details of the business acquisition targets are merged with the Business Model Canvas of the client to produce a business plan with substance. Something to excite the seller, the buyer and the investors.

We have developed a Business Model Canvas for the Executive Advocate(sm) programs to illustrate the communication power of this approach. You invited to watch this 8 minute video introduction . What we discovered was the use of this tool internally has also been invaluable in helping us also communicate the value of the Executive Advocate (sm) programs to candidate clients.

Communicate the dream!


Photo credit: fsse8info

The Executive search for How To Buy A Business in Texas

The Executive search for How To Buy A Business in Texas

The Miracle Posting

We search the Internet because we're looking for solutions to our problems. We find an interesting blog posting, somewhat thought-provoking, that we really enjoy reading. Our day continues normally and when it's over we fall asleep, still concerned about our situation. While asleep a miracle occurs. The underlying issues creating our problems resolve themselves. The problems will begin to go away once we wake-up; but there's still one thing wrong. We're asleep and have no idea the miracle started by the blog posting has happened.


How do we find out about the miracle the next day? What could we do differently that would show us indicators? What would those indicators be and what could we do to nurture and speed them along?

 These are the questions asked by Solution Focused Brief Therapy (SFBT) practitioners, a practice commonly used to help those struggling with personal issues that has equal value in an entrepreneur's life. The Active Investor doesn't get a free pass. That investment in our own business or professional career comes with significant problems along with the freedom and financial benefits. It's our business. How do we wake-up in the morning and deal with it?

Frequently the best answers are not in the language of the problem. They are hard to see because you have to look in non-problem places to find them. That's a lot of places, so we need to narrow this down! We do that by looking in solution places instead. That is, try to imagine finding an answer that is already out there. What would that look like?

Sometimes, simply a solution-based way of looking at things brings sudden, dramatic insights. Other times, it doesn't. Now what? 

Badness comes in degrees. Some days have moments that are much better than others. What happens that allows those better moments? How can we capture more of them? The solution begins to unfold itself for us incrementally as we learn how to do this. The trick is to be looking for it.

Could each of us have a miracle bog posting somewhere? Perhaps.  Maybe for someone it's this one. Tomorrow morning, how would I know if a miracle has happened?

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Franchise Rage: Keeping it too simple

I get to meet with Texas business owners trying to decide if they should grow or sell their business. The answer generally lies in knowing how to value the business and deciding if that's sufficient for future plans or not.

If growth through franchising appears to be attractive, we then get to work preparing the business for it. This involves defining and documenting their proven and successful business model. We also represent the most successful franchise operations, so in time we are able to bring qualified operators to the business and the operation grows territory by territory.

It would seem to be a simple thing, just follow the proven plan and success will be yours. This should be a KISS, Keep It Simple Stupid, approach to making money; however, life proves success is never that simple. The danger in a franchise strategy for growing a company is the potential for an adverse relationship to develop between the  franchisor and the franchisees. Here is how it can happen.

A franchisee's operation is struggling and the franchisor recognizes that they are trying to operate  outside the proven plan. Warnings about this issue are repeatedly given; however, the operating problems persist and eventually the new franchisee begins to attribute the problems to the franchisor's inability to help them. The two sides continue to blame each other creating a vicious cycle of further bad business. What we have is an example of a sound system being destroyed as a result of the fundamental attribute error.

This everyday error occurs whenever we think an action is being caused by the actor instead of the stage. In traffic a car suddenly cuts in front of us. Our reaction is to think that happened because there is a bad (or rude) driver in front, when in fact that driver could be skilled and polite and narrowly averted an accident by quickly changing lanes to clear a road hazard. As long as all the driving incidents are the cause of other bad drivers, better driving skills that anticipate road hazards are never developed. Instead, we develop road rage.

Blaming problems on fundamental personal attributes of either the franchisor or franchisee is not a simple answer, it's a simplistic answer. Oliver Wendell Holmes said "I would not give a fig for the simplicity this side of complexity, but I would give my life for the simplicity on the other side of complexity." It is the difficult responsibility of both sides to go one step deeper into the situation and ask "Why is the proven method being altered?" What if the issue is not personal character but is the situation? It means a willingness to suspend judgment and get deeper into the complexities of the specific situation and how the model applies to it. Only after passing through this complexity it is reasonable to get back to keeping it simple.

In our process of guiding Active Investors into purchasing a new franchise, we have them contact other franchise owners to learn about their experiences. The alert Active Investor is going to ask how they handle difficulties that might make them question the plan. Is there any evidence of franchise rage?

If you are considering franchises, you want a successful system; but you also want a happy family.

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A Puzzle or a Mystery?

Malcom Gladwell's What the Dog Saw is the source for this post, although anything by him can be equally inspiring. Malcom asserts there is a difference between a puzzle and a mystery. And what a difference that makes to the Active Investor!

I love Sudokus, especially when trying to relax. They are classic puzzles. As you work with them, more knowledge is developed which leads to the solution. That's how all puzzles work. You keep developing more information until the solution emerges. A mystery is the opposite. You may have all the information up front. You're unable to solve it because of the way you are looking at it. More data only further obscures the answer because there is now more being incorrectly viewed. A mystery is only solved by finding the correct way to look at the existing situation.

Our western educational systems present the world as a big puzzle and they offer the promise that if we just get enough education we would be able to solve our  problems with the data we would now be smart enough to collect. There is no doubt to the value of an education; however, it's not this simple. Life is a mystery not a puzzle.

Sherlock Holmes solved mysteries. It wasn't only that he collected more data (which he did). In the Sherlock Holmes stories, he connected all his observations to solve the mystery. These connections catch most readers by surprise because we are still collecting more data in our minds when Sherlock has been eliminating dead ends and arriving at the unseen answer. Perhaps the single Sherlock quote that best sums up all of these time-honored tales is his comment to Watson, "When you have eliminated the impossible, whatever remains, however improbable, must be the truth."

In a mystery, we quickly get to a point where more data only causes more confusion.  A solution only begins to evolve when we disregard our training to collect more information and begin to realize the problem is that we are looking at it the wrong way. When we change the way we look at things, the things we look at change.

Business is also not a puzzle and more analysis often leads to more frustration. Like life, business is a mystery. The successful business owner or professional doesn't need more information than the competition. The successful Active Investor needs insight. The key to the information age isn't more information. It's developing better ways to connect what we may already know.

As an example, we still hear of business people viewing sales and marketing as a numbers games. There is goal setting that encourages mindless activities repeating a minimum number of daily "fishing" activities. The idea is that if any number of data points get high enough, success will be forced to happen. Success can never be forced. Look at what's already going on. Eliminate the impossible and whatever remains, however improbable, must be your truth. That is, the truth of what you are about, where you need to take your enterprise. Actively invest in those things. Success evolves from those activities that are working and that you believe in.

How can you determine if you are seeing a possible solution to your mystery? One clue is if the resulting activities are in harmony with the Active Investor blog theme: growth follows activities that are repetitive, powerful, and gentle. If they are, you may have your insight.

Developing business insight is the mystery. There is no puzzle.

image credit: Egan Snow

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A Disease of Choice

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If we focus enough on the potential of contracting a certain disease, we will increase our chances of actually getting it to the point where we are actually sick. What if that were a good thing?

House M.D. is a television show about an obnoxious doctor who ingeniously cures patients with exotic conditions in spite of his offensive manners. In one episode his staff was impressed with the positive attitude of one of their patients, who in spite of having a condition they couldn't cure was always kind and caring. This was a personal challenge to House who begins his relationship with the patient by trying to make the patient react badly. That never happens and a frustrated House suddenly considers the possibility that maybe this patient isn't upbeat and positive in spite of his disease, maybe he's that way because of the disease. This insight leads to a diagnosis and cure. The episode ends with the cured patient still being kind and caring, which was something of an annoyance to the lead character.

We believe many of our short-comings may be the result of medical conditions. For example, Attention Deficit Disorder (ADD) makes it difficult (perhaps impossible) for sufferers to focus and therefore succeed in areas that require study. This is  serious condition that should be treated and not ignored.

Now if something exists, then it's possible that its opposite also exits. What would a life be like if we could also suffer from an opposite brain condition, Inattention Deficit Disorder, IDD? The symptoms would be an inability to be thoughtless and distracted which would require the sufferer to live a life of complete awareness. That would be a great disease! If we were obsessively worried about contracting it, we might actually get it! To obsessively worry, one would continually imagine what life would be like with a medical inability to suffer from your perceived short-comings.

Every personal investment has its elements of self-doubt and reservation. These can control and derail us from our purpose in life. What if we had a medical condition that made it impossible for this to happen to us? What if we had the insights, confidence, and courage we need because of a medical condition that just made us that way? If we have a purpose in life, isn't it reasonable to be able to contract it?

While suffering appears to be an unavoidable consequence of living, there is both productive and unproductive suffering. Why not choose the former?

When Giving-up is a good thing

Over the past year this blog has evolved to become the application of methods that are Repetitive, Powerful, and Gentle to the practice of making money. Simplistic approaches to business issues frequently pass the the Repetitive and Powerful tests; however, truly effective practices must also qualify as Gentle and here is where many, like traditional selling, fail.

The largest consumer of motivational materials and methods is the US Sales and Marketing industry. Care to guess who might be number 2? It's the US military. This leads us to wonder, what is it about our traditional approaches to sales that is like the military? Do Sales Departments require a constant infusion of outside motivation because, like the military, they are organizations built around the acquisition and application of force? For those in sales that are drained by its continual churn, or those being pursued by smiling, manipulative salespeople, it seems the answer seems to be YES.

Poor observers of successful salespeople have concluded that they are master of Persuasion. This isn't really the case; however, it's a business myth that is relentlessly taught. Persuasion is verbal manipulation and not at all what we feel comfortable in calling gentle. This is the connection to motivational methods. When I hear a sales professional using them, I have to leave (at least mentally, if I can't physically).

More accurate observers of successful salespeople have started to realize that they have a talent in Qualification, rather than Persuasion. They have a heart for who really needs their products and services (it's never everyone!); and a sensitivity in understanding their prospects enough to know if there is a basis to beginning a sales process. It's time consuming and complex enough to work with someone qualified to be a customer (that is, they actually need, understand, and can afford the product). The efforts spent "selling" someone not obviously qualified is counter-productive.

Working with sales prospects is no different than traders working with options or gamblers with their games. Over and over again studies in these two areas have shown most traders and gamblers win about the same. The successful ones are those that lose the least. They continually qualify their positions and when it doesn't look like a win, they accept a small loss and simply leave. If a sales prospect doesn't qualify, the successful salesperson leaves them alone. The motivated loser keeps on.

Giving up trying to serve is completely different from giving up trying to sell. The highest use of our lives comes from service and we often can serve those who do not qualify as clients by helping them solve their problems in other ways. This can be anything from a simple expression of empathy to a referral to one of your strategic partners. If your intention is to always finish strong, a way to do that will always appear.

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Return On Investment

An enterprise starts with the hope of a return on its investment. For a start-up, this is often envisioned on a spreadsheet, with the initial revenues being smaller than the initial expenses creating losses; however, the revenues increasing by some percentage and over time they outpace expenses to generate an attractive return on investment (ROI). While that is the typical story on paper; it's not reflected in the reality around us.

The World Population graph seems to show a linear growth like the one described in the above plan with some event happening in the late 1800's to suddenly make it change. Any idea what that historic event might have been?

If you haven't read the paper folding post, this may make a more sense if you do that. The graph shows natural, exponential growth. If we would change the time scale to end a century earlier, the curve would look the same, only the historic event would now appear to be in the late 1700's.  End another century earlier, and the momentous event still moves back with the new scaling.

There was no event that changed the World population growth rate. Population growth is an example of growth from feedback and this graph is what that curve will always looks like. Small victories in the beginning, remaining small for far longer than our linear minds can imagine, then accumulating faster than linear thinking can grasp.

The two mistakes we can make are to believe the smaller growth rate is failure or to not accept the higher growth rate as success and invest in necessary infrastructure to keep the feedback going. It takes a faith that the returns will really happen to avoid either downfall. Of course this growth doesn't go on forever. There are always limits to growth; however, some are just in our linear minds.

During the Beatles's era, Maharishi Mahesh Yogi, who may have been the subject of their song Fool on the Hill, challenged his followers with the claim that if the square root of 1% of a population practices Transcendental Meditation (TM), crime in the area would decrease. In 1993, TM followers came to Washington DC during a record heat wave (which correlates to increased crime) to create such a critical number. Crime decreased for the period of the experiment. After its conclusion, it increased again.

This is not unique to TM. The story has been repeated in countless endeavors where fools have believed in continuing to repeat something powerful and gentle until the feedback effects can finally be observed; or until their return on investment is finally realized. We live in a faithful (systematic) universe; just not a linear one.

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Power Produces Fractal Growth

We can recognize those activities that create lasting values by their systematic characteristics of being repetitive, powerful, and gentle (RPG). This is characteristic of all of God's gifts to us from sunshine and rain to love and joy. These activities are the drivers that raise mountains, carve canyons, build successful organizations, and change societies. If we fill a lifetime with them, we fulfill our destiny and achieve peace.

Being powerful is the centerpiece. Exactly what does that mean? To start, the opposite of powerful is not weak, after all, the meek shall inherit the earth. No, the opposite of powerful is forceful.

Force creates change; but only as long as the forces are applied. Eventually they dissipate and the changes are lost. Force does not create lasting values. A deeper explanation of this can be found in Dr. David Hawkin's eye-opening book, Power vs Force.

Powerful activities are simple patterns that have universal application. They are those simple things each of us discover we can do well. Because of their universal applicability, the results of powerful activities build in a replicating, self-similar fashion. What begins to happen is fractal growth, represented by this week's illustration.

Fractals are the design of nature. Think about the shape of a cloud, a leaf, or a sea shell. They don't consist of circles, triangles, or polygons. Mathematicians have discovered these shapes are created when a simple function is endlessly repeated.

Our personal shapes are a good example. We are cellular. Our cells keep repeating (they are good at that) and our shape and capabilities form from that activity. We aren't assembled; we self-replicate and experience fractal growth.

A powerful set of activities is the heart of a good business plan. Is there something universally applicable incorporated into the business plan? Something that will work under alternative circumstances? Are those activities allowed to replicate and grow? If that's the plan, it's one to build lasting values.

Our personal schedules are no different. Am I repeating those powerful things to create success every day? What we are discussing here is both a financial strategy and a moral obligation.

This thinking then moves us to the importance of clear self-direction; and that is the secret of gentleness.

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The Tao of Active Investing

The principles of building lasting value are timeless and universal. Chwan Tzu, an ancient Chinese philosopher, wrote the following centuries ago. It illustrates the impact of a repetitive, powerful, and gentle lifestyle as described in the Tao, the Chinese book about understanding and joining with natural forces. The story starts when Prince Hui complements his cook on his skills with a cleaver.

"Well done!" cried the Prince; "yours is skill indeed."
"Sire," replied the cook, "I have always devoted myself to Tao. It is better than skill. When I first began to cut up bullocks, I saw before me simply whole bullocks. After three years' practice I saw no more whole animals. And now I work with my mind and not with my eye. When my senses bid me stop, but my mind urges me on, I fall back upon eternal principles. I follow such openings or cavities as there may be, according to the natural constitution of the animal. I do not attempt to cut through joints: still less through large bones.
"A good cook changes his chopper once a year -- because he cuts. An ordinary cook, once a month -- because he hacks. But I have had this chopper nineteen years, and although I have cut up many thousand bullocks, its edge is as if fresh from the whetstone. For at the joints there are always interstices, and the edge of a chopper being without thickness, it remains only to insert that which is without thickness into such an interstice. By these means the interstice will be enlarged, and the blade will find plenty of room. It is thus that I have kept my chopper for nineteen years as though fresh from the whetstone.
"Nevertheless, when I come upon a hard part where the blade meets with a difficulty, I am all caution. I fix my eye on it. I stay my hand, and gently apply my blade, until with a whach the part yields like earth crumbling to the ground. Then I take out my chopper, and stand up, and look around, and pause, until with an air of triumph I wipe my chopper and put it carefully away."
"Bravo!" cried the Prince. "From the words of this cook I have learned about the way of life."

A new active investing venture will always go through these 3 stages:
1) Seeing the whole and being confused by all its parts (Learning)
2) Understand the details and complexities (Managing)
3) Knowing exactly what to do from experience (Mastery)

Its comforting to know where we are at any given time and to be prepared to be happy there until we grow into the next stage.

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The Problem of Original Sin

It's easy to believe and act on the power of good intention and co-creation; yet history and personal experience painfully demonstrate that life just isn't that easy. There is a restraining force that thwarts the co-creative powers of positive intentions and its been present as long as history has been recorded.

We  find this force labeled "original sin" in Biblical doctrine. It's a favorite concept for those who wish to argue against Biblical teachings to attack; however, it does seem to explain what happens; so a second look at the mechanics of original sin is in order.

Cognitive scientists study the brain in an effort to understand the mind. Humans have this distinctive ability to be self-aware. We can observe and therefore can also encourage, love, criticize, or despise ourselves. It doesn't appear that other life forms can (or want) to do this. While all life has some form of intelligence, it just usually doesn't have the capability of self-awareness.

In the cognitive studies of the human brain, self-awareness appears to be in a special area of the human brain known as the prefrontal cortex. Unlike a mechanisms subject only to Newton's Laws, humans are not limited to a fixed reaction to an action. We use the prefrontal cortex and its capability of  self-awareness to change our response.

Wonderful as self-awareness might be, the thousands of operational details required to maintain human life would simply over-whelm it. Never fear, a subconscious mind rises elegantly and efficiently to meet the need.While the prefrontal cortex is a small part of our total brain, the rest is busy operating all our life functions in an automatic fashion with any conscious direction.

A small portion of this subconscious intelligence is instinct. Most of our automated behaviors are learned. Researchers believe this larger area of our brain takes-in all it experiences as truth from birth until about the age of 6. While this system gives each succeeding generation the opportunity to receive updated lessons in living, the subconscious dutifully records with reason or judgment, often misinterpreting childhood experiences and forming false and/or destructive beliefs. These beliefs primarily come from our parents, who received them from their parents, who received them from generations of parents going back in time until the beliefs associated with original sin were started.

Defining sin is important. It was originally a term used in archery to mean "missing the mark." Original sin is the programming we receive from our ancestry that through our subconscious mental automation causes us to miss the potential we all were given. This definition is not meant to take away the use of the word sin to refer to missing out on God's grace; rather it includes that and more.

Neurologically, 95% of the brain is dedicated to the subconscious. While the remaining 5% can choose to be different, this doesn't happen easily. Corrective beliefs, in the form of new habits, are needed to re-program the subconscious. Forming those habits take the repetitive, powerful, and gentle actions  this blog has discussed for Active Investors. Biblically, it is what the work of the Holy Spirit is all about for all of us.

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Crystallization - Beauty Built On Imperfection

Things are never right. That's what ultimately creates order and beauty with a system. The story of crystallization is a remarkably accurate metaphor for how that happens in a natural system that an Active Investor can readily apply to understanding social systems such as their business.

The orderliness of a crystal begins with the random movements found in liquids. Crystals are created when molecules of a substance, normally solid at room temperature, are dissolved in a solution. These molecules will sometimes be attracted to each other for short periods, only to become attracted away by other molecules over time. Everything remains chaotic and fluid until a "seed", a point of imperfection, is introduced into the solution. The seed has a slightly higher attraction to nearby molecules, so they are drawn to it. If this initial attraction is strong enough, the group grows until its size is such that the group becomes consistently more attractive to other molecules than the surrounding solution. This is the "critical size" and when reached the protocrystal is now "in business" and continues to grow.

All of this is similar to a business during its start-up phase. For a business, the solution is not a liquid, it's the answer to a market need. A good business solution can be replicated and the company providing it begins to experience some repetition of sales. Orders will be slow and random at first; but they will grow with greater consistency over time.

This is not the end of the story. There is another step in the crystallization process. The protocrystal continues to grow ; but eventually it gets to a point it can no longer remain "dissolved" and it falls out of solution. Now the original imperfection appears to have been transformed into the beauty, order, and attractiveness of a visible crystal. The visible crystal continues to grow, gaining more molecules from the solution, until it reaches an equilibrium with its environment.

A growing business will face a second step as well. Meeting more market needs will begin to overwhelm the founding staff and another decision, as difficult as the one to initially start, has to be made. An investment must be made in building internal systems and structures if continued growth is to be nurtured. This is hard for the financially struggling team who have sacrificed for the sake of building their solutions; but out of the internal systems and structures come the power to sustain long term growth.

It's now a different business, one that is building lasting values.  Those values will allow it to reach far beyond its initial products and services that brought it to life. A visible legacy drops out of solution.

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Reptitive, Powerful, and Gentle - Intrinsic Motivation

We sense the motivation of a leader is a step above that of follower. Business owners, managers, and consultants have all wanted to capture some of whatever motivates the leader, The Active Investor, and spread it throughout the entire organization. In an 18 minute TED presentation Dan Pink sheds a bright light on the nature of that difference and what some organizations do about it. His message is that business ignores what science already knows about motivation.

Did I just screw-up?

Anyone who has never felt this way is a poster child for the unfulfilled life. Remorse is a negative feedback with destructive potential if ignored. It's also the catalyst for developing our potential if accepted and appreciated.

There is a story about a successful Active Investor, a business owner or professional,  who was being interviewed. She was asked to revel the secret of her success (a great question networking question by the way). Her answer was that success was the result of not making mistakes. This lead to a question on how to avoid mistakes. Her response was that experience would teach you how to avoid them. The obvious follow-up question was about the best way to get that experience. Her concluding wisdom was that the best way to obtain experience was to make mistakes.

The difference between an accomplished athlete and an amateur is not just natural ability. It's the experience gained from extensive training under the watchful eye of a great coach. Even small mistakes are honed away in hours of work on the practice fields. This repetition of action and corrective feedback gently and powerfully develops the the successful athlete's abilities on the playing field we all admire.

Life doesn't give Active Investors a practice field; but the coaches are very present. Everyone benefits from mentoring. This can be from those who invested themselves in us during our past. It can also be from a current network of professional advisers we can develop. It's feedback necessary for grwoth. Being able to get good coaching is critical; however, these are only our external coaches.

There are also our internal coaches that watch our play and seek to guide us. Remorse is such a coach when we appreciate that it moves us towards better ways to achieve our goals. The feeling, although negative, is there as a driver for improvements that inevitably increase lasting values. The feelings are designed to make us stop. Not for self-pity; but to take a moment to learn from what just happened and to guide change.

Our actions may now forever limit us in the future. Limitations in one area creates opportunities for specialization and excellence in what's remaining. They may be cause for an apology. This starts the miraculous process of healing. But, most of all, they are a basis for us to rise above our past performance levels and become who we feel we should become. We get there by thinking about alternatives to our present situation that will make us feel better. It may happen in a single insightful step. Recovery may also be from one slightly better emotional state to another as we recover over time. However, there is always some better feeling way to think about a remorseful situation and our job is to find and follow it.

Although mentioned in a previous blog posting this bears repeating. The Active Investor's emotional strategy when experiencing negative feedback of any kind should be to move from a position of judgment to a position of curiosity.These negative feelings are our sensors and guides, not our enemies.

image credit: TheeErin

Creating Products from Services

An objective of The Active Investor blog is to inspire the thinking of small business owners and professionals to create greater lasting value in their business. There is perhaps no better way to do this than to find ways to create products from services.

A product without services eventually becomes a commodity with business going to the lowest cost provider. Selling only services is a bit like selling air. You can't really sell time. You can only rent your expertise for some time. Expertise is intangible and difficult to either prove or differentiate and in the end the amount that can be sold is always capped by a time limitation. If you want to sell the enterprise, because it's your expertise and you're leaving, the residual value is relatively small. However, when the business offers a deliverable solution that can be named plus is easy to understand and refer, you have hit a "value-added" sweet spot. Here is a personal example.

Names are important. They give the offering tangibility. As a Texas business broker, I create marketing plans for my clients, as do many other business brokers. Since most small business buyers come from the internet, this plan includes multiple internet directory listings, which again, other brokers do. So far, we're still at the services level. I've then created a unique product offering on top of these services named Business Opportunities Bulletins (BOBs). With some creativity and technology, each client listing can appear on the first Goggle results page of significant search terms used by potential buyers. If a client wants to be found by potential business buyers, here is a product, a BOB, that does exactly that.

A BOB is easy to understand. The art of selling your business is to be presented to interested parties and still keep the sale confidential. Prospective clients can see how this is already working for existing clients. They "get it" immediately.

In this example, the product's name is a take-off of my own name. If a need for my business broker services gets touched upon by someone in my network, it's easy for them to explain and refer my product (my service).

Building BOBs takes time,  expertise, and technology but their existence adds critical value both to immediate marketability and to the ultimate value of the brokerage practice. A product has been created out of services common to the industry. How many products can be developed from your services? Something with a name that is easy to understand and refer. I can't image anyone who can't develop at least one more.

Image credit: EraPhernalia Vintage (catching up)

A Farewell to Time Management

For decades there was a focus on Time Management. It was a belief that we could become more productive, and therefore happier, if we could only optimize the use of our limited time. Initial efforts were centered on the process of scheduling. The problem with scheduling people's time (as opposed to a machine's time) is that while it may keep you busy, it doesn't necessarily make you effective.

Personal scheduling gave way to Prioritization in the schools of Time Management. Doing the most important things turns-out to be much more effective than doing the greatest number of things. Thus Prioritization soon lead the way to Goal Setting, Mission Statements, Core Competencies, etc.

It was very effective, very profitable, and fun for a while. After the innovation wore off, 20th century productivity went back to feeling like the same old grind, just a bit more productive - but not enough to take us to the levels we had hoped to achieve.

The question has now become, how can we preserve that "innovation" stage where our efforts were effective, profitable, and fun? It's most easily recognized by feelings associated with Energy. When we're in that kind of state things happen in a tireless and joyful fashion. The issue now facing the 21st Century Active Investor is how can we manage to keep our personal Energy at those levels?

I have been enriched by the opportunity to drive to Snyder for a client. After passing the city of Sweetwater you enter Texas oil country. Here Texans have lived to bring us the Energy from fossil fuels underground that have driven our economy. But on this drive, you won't give oil a thought. What you see is miles and miles of windmills harvesting Energy from the air. If we told our ancestors we could get Energy from just the air they would have considered us mentally unstable; but today it's everywhere on the road to Snyder.

This is a metaphor for 21st Century Personal Energy Management. We don't have to go to great lengths underground to get a limited supply of Energy; it's abundantly available in our environment. The challenge is to harvest it. Windmills reach out their arms to be driven by the air moving in their environment. In a similar fashion we have to create processes that enable us to reach out and catch the Energy moving in our environment.The place to start is to acknowledge what causes our feelings to be high or low. Typically positive or negative perceptions of our environment create high and low feelings of Energy respectively; however each of us have our own Energy attractors.

With this internal guidance system in place, Active Investors can began to recognize those activities, people, and places that either drain or renew their Energy. Our personal Energy supply is both apparent (from our feelings - our internal guidance system) and abundant (from our environment - if we can recognize it). Our 21st Century challenge is now to manage our Energy by knowing how to continually reach out for more.

Image credit: goosegrease