Breaking Point

Have you ever heard the story about a frog that gets boiled alive?

Well, there’s this little frog. It somehow ended up inside a big pot of water which was conveniently put on a stove. The stove was on by the way (but only with low fire) which means water got slightly warmer, then slowly got a bit hotter, and a bit hotter. Interestingly the frog didn’t try to jump out of the pot. Instead, it just sat there not moving a single muscle. So the water got even hotter until it finally reached boiling point. The frog didn’t move at all (you wonder why).

It eventually died, boiled alive.

This didn’t happen, of course, no frog was harmed during the writing of this story.

It could happen though. The science behind this is simple. The frog adjusted itself to the increasing heat of the water because it got hotter slowly. The poor frog would have jumped out of the pot if water got hotter quickly. But it didn’t, so it decided to stay and try to overcome (and persevere) in the midst of hot water. It got used to the new heat and when the heat went up it adjusted itself again. Then the time came when it was too late. It got to the boiling point and the frog realized it lost the battle – it was boiled alive.

Let’s use the same principles in overcoming tough times in business. The question we need to ask ourselves is similar to the frog. “Am I being boiled alive and I don’t even realize it?”

We also tend to adjust ourselves to difficult times. We become stronger so we could face adversity. There’s nothing wrong with that because it’s us (the person). What doesn’t kill us makes us stronger. It is very true indeed.

However, when we go through tough times in business it’s not only us that gets pummeled. It is the business itself also. So let’s rephrase the question a little bit now focusing on the business. “Is our business getting boiled alive and I don’t even realize it?”

Business is made up of different substances. Its blood vessel is filled (as you have probably guessed) with “cash”. While its infrastructure is made up of a complex relationship between owners, staffs, customers, suppliers, and other stakeholders the whole thing is run with cash.

Now, with tough times this complex infrastructure is damaged. Unlike the human race, a business does not get stronger after getting damaged. For example, a brand does not get stronger after it got bad publicity. A business does not lose customers and gets stronger as a result.

The people inside the business got stronger though. However, these experiences, skills, and everything else that the people learn during difficult times – they don’t always stay with the business. They move around following the footsteps of their owners.

The business itself would suffer. Its complex infrastructure split, its ability to earn and keep cash broke down. It would do that until such time that it would completely break. That is the breaking point.

So what’s the point of all these you might ask?

It is crucial to know the breaking point of your business.

As much as we want to persevere during tough times our business is separate from us. It does not have our brain, heart, and soul. We are the brain, heart, and soul. Just like the frog, we cannot control the heat around the business. On the other hand, we can control whether we want to make the jump or not.

Do you know your business’ breaking point?

 

 

Money The Necessary Evil

The only issue with money is either you use it or it uses you. How does that happen you might say. In reality, it doesn’t. It’s just an excuse we use when we couldn’t control ourselves when it comes to money. We are always in control, money is not.

Have you ever thought about how much money you can make? Or will make?

What about how great business will be if it makes ten times more than it does now?

It is the main currency used by most advertisers. It is how we measure our success, our dignity, our legacy. It is why we rank people based on their wealth.

Let’s face it money is addicting, probably the most addictive substance in the world.

We forget there are other more important things. We forget that money is temporary. We forget that money is only a means to an end. We forget that money is not the end goal.

But talking about a small business we cannot argue that money (or we prefer to call it ‘cash’) is necessary. We must not forget though that it is only necessary to a certain extent. A good business is not focused on cash, albeit it cannot function without it.

So how does this intricate relationship work? We need cash but we don’t want to focus on it? But if we don’t focus on making money how on earth are we going to build a great business?

In every great business, the focus is always on the customers. They exist to solve customers’ perceived problems. These problems do not have to exist – they only need to be perceived to exist. So if you ever felt ripped off by certain businesses, most probably because you are being ripped off. And this is how certain products command such high prices – because they solve ‘perceived’ problems that might not exist in the first place.

Anyway, back to our original discussion.

Regardless of how much you can rip off your customers by creating certain perceived problems and then charge an exorbitant amount to solve them, the focus is still on the customers. The exorbitant amount is the after-effect. Once you start focusing on the money your effort will shift to short-term activities such as reducing operational cost, renegotiating with suppliers, and so on. Not that these activities are bad – they are necessary but they are not the main focus. Your customers will figure out quickly if your business is solving their problems or not. They will sense very quickly if your only interest is their hard-earned cash.

Focus on solving their problems and they will never feel that they are being sold to.

Money is required to fund all these operations but it is never the focus. Never let the temptation of making money pull you down into never-ending addiction.

The Matter of The Heart

It is true that running a business is akin to sport. It is the ultimate 24/7 sport. We have players, opponents, rules, field conditions, luck, and so on. Those who have done a little bit of sport or are fans of sports would know an all-important aspect of winning. At the end of the day during a tough match, it all boils down to one thing: mental strength. It is the matter of the heart.

It is common that a weaker player beats better one because he could handle himself well during difficult times. He has nerves of steel.

Running a business has its ups and downs with nice and nasty surprises every day. However, most people forget that these ups and downs, these surprises – they don’t just happen in the business world. They happen after hours too. They happen at home. And quite often they transform themselves into problems in the business.

A meltdown at home can go a long way if not handled. It could accumulate and explode. The damages are not immediately seen. They slowly build up and then they go all at once. Each issue at home adds fresh petrol – it only takes a small spark to ignite the whole thing.

So what can we do?

Above all else, guard your heart for everything you do flows from it. (Proverbs 4:23)

Guard your heart and guard your family’s hearts too. Peaceful hearts at home will translate into peaceful relationships in the business. Calm heart and mind will produce high-quality decision making and execution.

How do we guard our heart?

Learn to recognize troubling signs early and try to be more pro-active to prevent bigger issues from emerging to the surface. Do not leave any issues unresolved, talk about it, find solutions. It will not be perfect but every little action counts. Remember, it is not a competition we try to win, it is a relationship we try to build.

With all the stress in the business, why do we want to add problems and issues from home?

Those who could guard their hearts will have the winning edge.

They possess the mental strength required to fight in the marketplace.