This is an age old saying in the business world, and it's proven to be true time and time again.
Imagine, however, applying this to your personal and/or family life! I have done so and it's worked wonders.
Stress is lower and enjoyment is higher - yes, we're still busier than ever, but having documented goals and a family "Who we are" standard makes decision making much simpler.
Our sons enjoy being part of "the plan" and getting the family calendar lined up has become a uniting activity.
It's entirely too easy to become spread too thin these days. Document your goals and then apply them with standard (invariable) and defining (focused on the goal at hand) objectives. These posted objectives will hold you accountable and motivate you in so many ways. As Nike says... just do it! But, do what you define as important; don't try to do everything.
Cheers,
--- Bill
Thursday, October 30, 2008
Tuesday, October 7, 2008
Don't worry. Our data is backed up..... I think
Written by Jason Vanzin
How would your company cope if you lost all the data on your network? If you think it wouldn't be so bad, shut your servers down for an hour and two and see the chaos that ensues.
Disaster recovery isn't sexy, but it's one of the most important IT functions within any organization, from a one man shop to an international conglomerate.
Many times I have been called out to new clients that have just experienced some type of failure or catastrophe that requires recovering their data only to find out they were not properly backing up their data. Most businesses either (A) don't have their data backed up like they are supposed to or (B) thought they had it backed up to tape or some other medium only to discover the tape is bad.
As you can imagine, stress levels skyrocket, and wallets open widely to get back what they can.
Analysts estimate that 40% to 70% of tapes backups fail when restores are attempted. Considering the cost of tape drives, tapes, and the software to back up your data, this is a horrific statistic.
How much would it cost an engineering firm if millions of dollars in drawings were lost to a failed server or a fire. Even if hard copies were available, the man hours needed to receate those drawings could be enough to put the firm under.
Not only do you have to worry about your backup failing, you also have to worry about your tapes falling into the wrong hands. Your entire company's data is backed up to tape if you are backing up to tape. If your IT guy is worth his salt, he probably has you taking the tapes offsite in the event of a fire, flood, or some other disaster. The problem with taking them offsite is most the time they are taken home with an employee, which opens you up to the risk of the tape being lost or stolen.
How much would it cost your company if you lost a tape, and someone used it to get all of your clients' social security numbers, bank account numbers, etc? How long would your clients stay with you, and how much liability would you be exposed to?
Tape is a thing of the past, and it should go the way of zip drives and floppies. Newer technologies are now available from companies like EssentiaLink that can provide continuous backups to a fixed storage device, and the data can also be sent via the internet to an offsite datacenter. All data should be encrypted, so there is no exposure to theft and liability.
How would your company cope if you lost all the data on your network? If you think it wouldn't be so bad, shut your servers down for an hour and two and see the chaos that ensues.
Disaster recovery isn't sexy, but it's one of the most important IT functions within any organization, from a one man shop to an international conglomerate.
Many times I have been called out to new clients that have just experienced some type of failure or catastrophe that requires recovering their data only to find out they were not properly backing up their data. Most businesses either (A) don't have their data backed up like they are supposed to or (B) thought they had it backed up to tape or some other medium only to discover the tape is bad.
As you can imagine, stress levels skyrocket, and wallets open widely to get back what they can.
Analysts estimate that 40% to 70% of tapes backups fail when restores are attempted. Considering the cost of tape drives, tapes, and the software to back up your data, this is a horrific statistic.
How much would it cost an engineering firm if millions of dollars in drawings were lost to a failed server or a fire. Even if hard copies were available, the man hours needed to receate those drawings could be enough to put the firm under.
Not only do you have to worry about your backup failing, you also have to worry about your tapes falling into the wrong hands. Your entire company's data is backed up to tape if you are backing up to tape. If your IT guy is worth his salt, he probably has you taking the tapes offsite in the event of a fire, flood, or some other disaster. The problem with taking them offsite is most the time they are taken home with an employee, which opens you up to the risk of the tape being lost or stolen.
How much would it cost your company if you lost a tape, and someone used it to get all of your clients' social security numbers, bank account numbers, etc? How long would your clients stay with you, and how much liability would you be exposed to?
Tape is a thing of the past, and it should go the way of zip drives and floppies. Newer technologies are now available from companies like EssentiaLink that can provide continuous backups to a fixed storage device, and the data can also be sent via the internet to an offsite datacenter. All data should be encrypted, so there is no exposure to theft and liability.
Friday, May 16, 2008
David Mead is brilliant.
I never thought reducing our customer base would increase our revenues and our profits. David Mead is a saint. He's a mentor and a friend. The world needs more people like David. --- Bill
EssentiaLink enjoys big growth by learning to choose customers wisely
ColoradoBiz August, 2007
Start-up was crippled by lack of capital early
By David Mead
EssentiaLink, headquartered in Broomfield, provides simple solutions to reduce a company’s procurement costs. EssentiaLink, led by CEO Bill Douglas, has enjoyed very nice growth over the past few years, receiving multiple growth company awards. They provide services to customers in over 20 states.
Mead: How did you decide to get into this business?
Douglas: I was in the manufacturer’s rep business focused on technical sales and our customers were complaining about problems in the procurement of low-end, inexpensive goods. Sourcing and finding these goods was time-consuming and diverted resources away from the procurement of core direct materials.
We started in June 2000. I sold my interest in the manufacturer’s rep firm to my partner to fund the start-up. Since the tech bubble had burst, venture capital firms were not funding start-ups like ours. After some time, we decided to sell directly, rather than going through channels, which forced us to focus on growing revenue rather than just acquiring large numbers of customers. More importantly, it was a necessity that we listened to our customers.
Mead: How do you differentiate your offering from your competitors?
Douglas: Flexibility - we are able to mirror the critical pieces of a customer’s processes. Many customers have some components of their systems that they must keep in place. We work with their "must keeps" - usually related to accounting or Sarbanes Oxley requirements. Everything else can be optimized via EssentiaLink’s systems and processes. Our competitors, on the other hand, force the customers to totally convert to their system.
We really are a "customer intimate" company. We solve their pain points and create the best solution to meet their needs. We like to work with customers that really understand the total cost of procurement, rather than focusing on the mere price of the goods.
Mead: Has growth always been smooth? What were some of the "bumps" in the road? What have been your biggest challenges?
Douglas: There were so many big bumps. We really bootstrapped. Getting access to capital - both working capital and growth capital - was tough. We worked hard to get to know the bankers very well and looked for strategic investors - corporations or high net worth individuals - who brought more to the table than just money. In addition, in the early days, we made some bad hires that really set us back. We have learned the importance of taking our time to make certain that we hire the right people. We are very methodical in our interviewing process and have learned that if it’s not a great fit, we don’t go there.
Mead: You had a major change in the company that sprung from taking a hard look at the NET profitability of each customer. Talk about the process.
Douglas: We discovered last year that our profitability was lagging. We were adding more customers and more revenue, but the profit just wasn’t there.
We developed a team to analyze the customer base, starting with the bottom half of the customers, based on revenue. We looked at the true cost of acquiring and servicing these customers. Then we looked at not only the potential, but also the "degree of difficulty" in dealing with each one.
Mead: What did the analysis show?
Douglas: We were very surprised that about 1/3 of our customers were unprofitable on a net profit basis.
Mead: What actions did you take?
Douglas: We visited the 15 largest unprofitable customers and presented our case. In most of the situations, these customers were not fully utilizing EssentiaLink, not embracing simplified solutions, or they were requiring excessively high levels of pre- and post-sale service. We indicated that unless we were able to correct the problem(s), we would not be able to remain their strategic vendor.
Mead: How did your customers react?
Douglas: One got upset and threw me out. A couple stepped up and helped to correct the problems. About a dozen apologized, explained why the relationship was not working, and we parted on good terms.
We then looked at the other 2/3 of our customers. We identified the points of "profit pain" from our company’s perspective - things that we provided but that the customer did not need. We increased our focus on the top tier of profitable customers.
Mead: What were the results?
Douglas: In the first full year, we cut almost a third of our customers, added only one and revenues increased by 51 percent and profits doubled.
Mead: Terrific results, Bill. What was the most difficult challenge with this process?
Douglas: I think our investors may have thought I’d lost my mind. They wanted to know why we were shutting down customers that had been so difficult to acquire. They told me that it had better show results in six months. If this had been a public company, I probably would have been fired because the changes did not show a positive impact on results after the first quarter. But, we really picked up momentum and after the full year, results were phenomenal. We’re continuing this focus to increase the volume of business we do with our best (most profitable) customers.
Mead: What were some of the old truths about customers that you found to be untrue?
Douglas: We learned that revenue growth does not always equal profit. We also learned that every customer is not necessarily a good customer. You really need to examine which customers are really the right customers for your company, so that you can make an acceptable profit with each customer.
Probably the most important thing we learned was that we have to be selective about how we identify new customers. We need to find those that appreciate the value that EssentiaLink can deliver. We now have three key qualifying questions that we that ask:
1. Do they know the total cost of procurement?
2. Do they value it?
3. Do they have decision-making authority to act on it?
Mead: You give your employees a lot of authority to make decisions.
Douglas: We relinquish decision-making authority to our employees as long as the decision is made according to our values. It’s OK to make mistakes as long as it meets our values. We say "solve the customer’s problem first; don’t worry about profit."
All employees are empowered to make decisions on behalf of EssentiaLink without further approval if the answer to all five of these questions is YES (relative to the issue or decision at hand):
1. Is it right for the customer?
2. Is it right for EssentiaLink?
3. Is it ethical?
4. Is it something for which you're willing to be accountable?
5. Is it consistent with EssentiaLink's basic beliefs and values?
Mead: Have you accomplished your growth internally or through M&A?
Douglas: To date, all has been internal, organic growth. We’re now beginning M&A to expand the service offering and to acquire market share.
Mead: What are some of the keys to your continued growth over the next 5-10 years?
Douglas: Expanding the sales force geographically across North America and performing strategic acquisitions. We know what works for our customers; we just need to reach more of the right customers. Also, finding the right people that will help us grow.
Mead: How have you maintained the culture while building the management team required to grow?
Douglas: We are slow to hire. We involve many of our folks - including non-executives - in the process. We take our time to be sure that it is the right fit.
Mead: Where do you find good leaders?
Douglas: We invest in training, do a lot of promoting from within, but also we learn of potential candidates by word-of-mouth - from investors, customers, etc.
Mead: EssentiaLink has really made some great progress.
Douglas: Our people did it! They accomplished last year’s 51 percent growth in revenue and doubling of profits. My job is to remove their barriers so that they can do their jobs. We certainly had some disagreements over the relationships with customers. I was challenging whether we should continue to serve the unprofitable customers and this seemed to some of our folks a conflict with our customer-intimate culture. Once the team embraced that the profitability of each customer was critical to our continued success, they really made it happen.
I am very excited about our future. We have a terrific team of committed and motivated people. I think we are well positioned to take advantage of the opportunities ahead.
David P. Mead is president of The Mead Consulting Group, Inc. an advisory services firm that helps middle market companies achieve exceptional value through strategy and execution. He is also chairman of ACG Denver. He can be reached at (303) 660-8135 or meaddp@meadconsultinggroup.com.
Economic history repeats itself, too
I post this again, 7 years later, because as we face pessimistic outlook, it's obvious history repeats itself.....Opportunities are abundant now - in 2008 - for both entrepreneurs and investors. Don't let the negative news media get to you. --- Bill
Investor caution stifling emerging firms at roots
Originially published in the Boulder County Business Report April 20, 2001
Authored by Bill Douglas
In light of the well-touted stock market tumble and the plethora of negative comments flooding the press lately concerning technology and the Internet, I submit my views on the "trickle-down" effect of such market changes while accentuating the positive opportunities for the future.
The stock market has nothing to do with our company’s core business, yet it directly impacts our future because it affects our funding. The Nasdaq drop, however, has expanded our business by forcing customers and potential competitors to focus on their core offerings and utilize our company as a revenue-generating, complementary solution. EssentiaLink helps businesses optimize their supply and demand chains to reduce costs and maximize profits. We’ve never been a dot-com, but because we’ve embraced technology to enhance traditional business processes, we are often categorized as one.
Fourth-quarter venture capital investing was down 40 percent from its peak earlier in 2000. But venture capital investments are still 98 percent higher than they were one year ago, according to PricewaterhouseCoopers. The problem: Professional investors are investing more money in later-stage companies, overlooking younger companies and leaving a large gap that may have long-standing repercussions to our economy as a whole.
Venture capitalists remain closely engaged with our company, but they have raised the bar with relation to milestones they must see before investing. Why? Investments made in Internet companies have affected fund returns, the initial public offering market is soft right now, and performance pressure from investors has created difficulties in raising new venture funds.
Individual or angel investors also have become reluctant to invest in newer companies. Performance pressures have led to the stockpiling of cash by all investors, private and professional. In a nutshell, investors of all kinds are becoming so cautious that they are stifling business growth at the grassroots stage. This damping effect on the small business community as a whole could, in the long-term, significantly impact our domestic economy in ways not yet evidenced.
In spite of the changed investment market condition, our business continues to grow and attract both customers and investors because we’ve been frugal, we’ve generated revenues and we’ve always focused on solving significant problems for our customers. Our growth is controlled at a reduced rate because of capital constraints. Available capital affects the number of new employees and new systems, which directly impacts sales and revenue growth.
Despite negative impacts, the stock market tumble was necessary to reduce the fluff around the "new economy" premise so widely marketed to the public. The reality is a business must make money to survive.
When I first engaged the venture capital community last April, I sought $2 million in funding. The response I received was unexpected. Instead of raising $2 million, I was advised to raise $10 million and spend two thirds of it on advertising to gain mind share. I wanted market share, not mind share. EssentiaLink remains focused on our target market and has created a unique selling model that drastically reduces customer acquisition costs, therefore not requiring a multimillion-dollar ad budget. That was our position all along, and now analysts and investors are beginning to agree.
The business community is slowly getting back to reality. This change will inevitably produce a positive for all businesses and consumers. When a business focuses on its customers and upon generating profits, the economy is the winner. Yes, it will be more difficult to start new businesses than during the Internet heyday, but new companies founded on solid concepts and management can grow faster than ever before, and that is a positive for long-term investors.
This is the third company I’ve been part of starting, and none of them has been easy. Entrepreneurs create value by executing a clear vision with a strong team. We know it will be difficult to create a successful company, but that is part of what attracts us to such challenges. We need the investment community to help us start and grow our companies, and we value our investors in both bull and bear markets. Our economy needs new businesses to create new jobs and generate new revenues. I encourage every qualified investor to reevaluate this market opportunity and get involved in the entrepreneurial community.
The following area some of the ways investors can engage themselves with the start-up community:
- Evaluate and invest as you see fit. Analyze with caution, not cynicism. Ask direct questions, and expect honest answers.
- If you’re a qualified investor, start or become part of an angel investor group. Denver does not have a deep, organized angel investment community, and that is one factor that separates us from other leading business cities such as San Francisco, Chicago and Boston.
- Influence your pension or portfolio funds and your personal adviser to evaluate companies of all stages.
- Offer your assistance as an adviser to young companies. A successful entrepreneur continually seeks mentors.
- Teach classes. Universities are always seeking instructors to enhance students’ education, and they welcome those willing to share their expertise and experience.
When you make smart investments of any kind in solid companies, your portfolio will benefit, our local economy will benefit, and the U.S. economy as a whole will benefit.
Bill Douglas is president and chief executive officer of EssentiaLink, a Broomfield-based developer of a strategic supply chain solution. As a serial entrepreneur with 14 years of experience in the industrial and wholesale trade markets, Douglas has continually utilized technology to improve established business processes. He has held executive and management positions with Florida Power & Light, Power Equipment Specialists, Engineer Sales Co. and Corro-Shun Specialties. He and his wife, Dena, enjoy two young sons.
Douglas can be reached at bdouglas@essentialink.com.
Investor caution stifling emerging firms at roots
Originially published in the Boulder County Business Report April 20, 2001
Authored by Bill Douglas
In light of the well-touted stock market tumble and the plethora of negative comments flooding the press lately concerning technology and the Internet, I submit my views on the "trickle-down" effect of such market changes while accentuating the positive opportunities for the future.
The stock market has nothing to do with our company’s core business, yet it directly impacts our future because it affects our funding. The Nasdaq drop, however, has expanded our business by forcing customers and potential competitors to focus on their core offerings and utilize our company as a revenue-generating, complementary solution. EssentiaLink helps businesses optimize their supply and demand chains to reduce costs and maximize profits. We’ve never been a dot-com, but because we’ve embraced technology to enhance traditional business processes, we are often categorized as one.
Fourth-quarter venture capital investing was down 40 percent from its peak earlier in 2000. But venture capital investments are still 98 percent higher than they were one year ago, according to PricewaterhouseCoopers. The problem: Professional investors are investing more money in later-stage companies, overlooking younger companies and leaving a large gap that may have long-standing repercussions to our economy as a whole.
Venture capitalists remain closely engaged with our company, but they have raised the bar with relation to milestones they must see before investing. Why? Investments made in Internet companies have affected fund returns, the initial public offering market is soft right now, and performance pressure from investors has created difficulties in raising new venture funds.
Individual or angel investors also have become reluctant to invest in newer companies. Performance pressures have led to the stockpiling of cash by all investors, private and professional. In a nutshell, investors of all kinds are becoming so cautious that they are stifling business growth at the grassroots stage. This damping effect on the small business community as a whole could, in the long-term, significantly impact our domestic economy in ways not yet evidenced.
In spite of the changed investment market condition, our business continues to grow and attract both customers and investors because we’ve been frugal, we’ve generated revenues and we’ve always focused on solving significant problems for our customers. Our growth is controlled at a reduced rate because of capital constraints. Available capital affects the number of new employees and new systems, which directly impacts sales and revenue growth.
Despite negative impacts, the stock market tumble was necessary to reduce the fluff around the "new economy" premise so widely marketed to the public. The reality is a business must make money to survive.
When I first engaged the venture capital community last April, I sought $2 million in funding. The response I received was unexpected. Instead of raising $2 million, I was advised to raise $10 million and spend two thirds of it on advertising to gain mind share. I wanted market share, not mind share. EssentiaLink remains focused on our target market and has created a unique selling model that drastically reduces customer acquisition costs, therefore not requiring a multimillion-dollar ad budget. That was our position all along, and now analysts and investors are beginning to agree.
The business community is slowly getting back to reality. This change will inevitably produce a positive for all businesses and consumers. When a business focuses on its customers and upon generating profits, the economy is the winner. Yes, it will be more difficult to start new businesses than during the Internet heyday, but new companies founded on solid concepts and management can grow faster than ever before, and that is a positive for long-term investors.
This is the third company I’ve been part of starting, and none of them has been easy. Entrepreneurs create value by executing a clear vision with a strong team. We know it will be difficult to create a successful company, but that is part of what attracts us to such challenges. We need the investment community to help us start and grow our companies, and we value our investors in both bull and bear markets. Our economy needs new businesses to create new jobs and generate new revenues. I encourage every qualified investor to reevaluate this market opportunity and get involved in the entrepreneurial community.
The following area some of the ways investors can engage themselves with the start-up community:
- Evaluate and invest as you see fit. Analyze with caution, not cynicism. Ask direct questions, and expect honest answers.
- If you’re a qualified investor, start or become part of an angel investor group. Denver does not have a deep, organized angel investment community, and that is one factor that separates us from other leading business cities such as San Francisco, Chicago and Boston.
- Influence your pension or portfolio funds and your personal adviser to evaluate companies of all stages.
- Offer your assistance as an adviser to young companies. A successful entrepreneur continually seeks mentors.
- Teach classes. Universities are always seeking instructors to enhance students’ education, and they welcome those willing to share their expertise and experience.
When you make smart investments of any kind in solid companies, your portfolio will benefit, our local economy will benefit, and the U.S. economy as a whole will benefit.
Bill Douglas is president and chief executive officer of EssentiaLink, a Broomfield-based developer of a strategic supply chain solution. As a serial entrepreneur with 14 years of experience in the industrial and wholesale trade markets, Douglas has continually utilized technology to improve established business processes. He has held executive and management positions with Florida Power & Light, Power Equipment Specialists, Engineer Sales Co. and Corro-Shun Specialties. He and his wife, Dena, enjoy two young sons.
Douglas can be reached at bdouglas@essentialink.com.
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