Elon Musk Today, Homeless Tomorrow

I had a great time catching up with an old friend yesterday. She had some questions about her new-ish business, and I was honored to spend some time with her. I was highly intrigued to hear about her journey of starting, growing, and evolving her young business. Regardless of what kind of business someone starts, I find that we business owners often experience similar situations.

Being a business owner can be brutal. So much weight is placed on their shoulders, there's very little security, and every time they think they have it figured out, the rules change. There's also something I like to call the "Elon Musk today, homeless tomorrow" phenomenon. Almost to a T, business owners connect with this idea. One day, we'll wake up and think we're going to take over the world like Elon Musk, and the next day, we'll wake up and wonder if we'll be homeless by sunset.

That sounds crazy, but if you're a business owner, you probably know exactly what I'm talking about. That's how volatile it can be (or at least feel). Some months, we feel like we have everything figured out, and the next, we wonder if we'll have enough income to meet our financial needs. It can be the most stressful, frustrating, mind-melting thing in the world.....

.....and it's awesome! There's something beautiful about having to figure it out each day, week, and month. If we perform, we get to feed our family. If we don't, well, we don't. There's a purity in that. A simplicity. As a society, we like to look at business owners and judge them as "lucky," "rich," and "lazy." None of those are true, in most cases. Whenever someone tells me they want to become a business owner so they can "have more flexible hours and be home more," I chuckle. Most people have no idea what business owners go through.

That said, this isn't a request for sympathy. This is what business owners sign up for; it comes with the territory. It's part of the package. Nobody is holding a gun to their head, forcing them to take this path. It's a choice. A challenging, exciting, and terrifying choice. They could always go get a job....that option remains on the table. Therefore, I have no sympathy for fellow business owners. On the flip side, I have a ton of respect and admiration for them.

Elon Musk today, homeless tomorrow. If this phrase resonates with you, please know you aren't alone. Also, I encourage you not to wish away the stress, tension, and uncertainty. Yes, it can be brutal. But it's also what gives your journey richness. Plus, the highs aren't high if there aren't lows to contrast them. Embrace the journey.....all of the journey.

You probably won't be Elon Musk.....but you probably won't be homeless, either. Somewhere in between is a beautiful story just waiting to be written.

The Ratchet of Convenience

When I was a kid, there were only two ways to get a product: 1) Drive to the store and pick it up, or 2) In rare occasions, call the phone number in the printed catalog and have it delivered to your house two weeks later.

I recently needed a product. It was an obscure item that couldn't be found on the store shelf, so naturally, I jumped on Amazon. Much to my displeasure, the soonest I could get the product was the next morning. But I needed it now! I was hoping for a 1-2 hour delivery, but the best they could do was guarantee a 15-hour delivery. Lame!

If someone in the 90s would have whined about a 15-hour delivery on an obscure product when he was hoping for 1-2 hours, he might have gotten punched for being such an entitled brat.

We have an interesting relationship with convenience. We want it, but every time we have it, we want more of it. It's like a ratchet; it only gets tighter each time we twist it. I remember when Amazon launched Prime with the promise of two-day delivery. That seems impossible and completely unnecessary. Today, we regularly get next-day delivery....and often get same-day options as well. It's the ratchet tightening.

When does it stop? Where does it stop? To some extent, I'm not sure it will. As long as convenience is a priority for a given consumer, that ratchet will continue to tighten. We're probably not far away from clicking "buy" and having a drone deliver it 15 minutes later.

On the flip side, we don't have to worship convenience. While convenience is great, it's not the only consideration. When developing the Northern Vessel business model, many people asked if we were constructing a drive-thru. When my answer was a firm "no," their immediate response was some version of "you'll never stay in business without a drive-thru." While convenience obviously matters, we wanted to offer more. We elected to hitch our wagon to quality products and hospitality excellence. We believed people would give up some convenience if we served them an awesome product and treated them with love, kindness, and engagement. Our suspicions were confirmed. It's not convenient to drive to our location. It's not convenient to park the car and walk in. It's not convenient to stand in line (which can be a massive line depending on the day/time). It's not convenient to wait for the drink to be made (even though the team is extraordinarily efficient). None of these things are convenient, but other factors matter, too.

We humans will never relent on the ratchet of convenience, but we do value the complete experience. Consumers, know what's important when selecting businesses to patronize. There are times to prioritize convenience, and there are times to prioritize other factors. Businesses, don't get sucked into a race to the bottom. It doesn't have to be about having the cheapest price or most convenient option. Instead, find ways to add more value and create a richer experience.

Capitalist Pigs

Remember when I paid $700 to play with pigs? Well, yesterday was pig day! We were in Nassau, Bahamas, on our cruise, and it was finally time to experience Pig Beach with my family. It was a truly amazing experience. We started with a beautiful 30-minute boat ride to Pearl Island, where we spent a few hours playing on the beach with crystal-clear waters. Then, we were treated to a local lunch that more-then-hit the spot. Finally, we hopped on a speed boat for a short jaunt to Pig Beach. Once there, we fed the pigs apples (and even bottle-fed a piglet), petted them, and ran around in the ocean with them. Every part of the experience was spot-on. While spending $700 for this excursion still feels expensive, it will no doubt go in the record books as one of the most memorable experiences our family has had together. Money well spent!

This is baby Katy Perry. She pooped on my arm about 5 seconds after this pic was taken….

While hanging out at the beach in the morning, I overheard a group of men talking about the excursion. "They really milk those pigs for all they're worth." "Nothing like taking advantage of a lucky situation. Those pigs were just left there" "They are practically screwing us."

Do you see any irony in this? A bunch of grown men, who are traveling to the Caribbean on money earned from living in a capitalist society, are demonizing the local business owners who are trying to make a living by being capitalistic. Nobody forced a single one of them to purchase that excursion. That's the entire point of capitalism. Someone creates a product, sets the price, and either people buy it or they don't. If you think the price is too expensive, then simply choose not to buy. Considering how many people were in our group, I'd say their pricing is working just fine.

Are the local folks making a handsome living from this endeavor? I hope so! Good for them! They are doing a fantastic job at it, too. Overall, the entire experience was well done and full of hospitality. They served their customers well and truly made us feel welcome. I'm glad I went, and I'll recommend it to anyone who asks.

This is the beauty of business. We are free to create any product we want, price it, market it, try to execute it, and let the chips fall how they may. No matter how good our product is, some will think it's a rip-off. That's not a bad thing! Rather, it's necessary. That's the gateway to understanding who values you and who doesn't. I once had a client prospect tell me how much of a rip-off my pricing was, only to have another prospect (90 minutes later) tell me it was the world's biggest bargain. One valued me, and one didn't. It doesn't make one good and one bad, but now I know who I am called to serve.

Don't feel bad for making a living. Add value. Serve others well. Let the chips fall how they may.

Don’t Cross the Streams

We had a fun NYE celebration in our house. After enjoying appetizers, we all snuggled on the couch. We made a deal with the kids. For the first time ever, they were allowed to stay up as long as they wanted. We attempted to watch the Times Square telecast, but I quickly realized we had a problem. Not much of it was appropriate for 7-year-olds. I kept changing the channel when various performers were on stage. 

During one of those sudden diversions, I stumbled onto the original Ghostbusters, which had started maybe 15 minutes earlier. While I'm not sure my kids were ready for Ghostbusters, it was certainly more appropriate than anything shown on the NYE telecast. It turns out they loved it, even the scary parts! One of my favorite parts of the movie (and the one most quoted by middle school boys.....IYKYK) is the scene where they discuss the danger of crossing the streams.

This all leads me to a coaching meeting last night. I was meeting with a young business owner who desires to adequately and properly track his cashflows. There are a lot of tips, tricks, and tools I could have given him, but I had one simple, but powerful piece of advice. "Don't cross the streams!" 

Whenever we're operating a business, whether something as small as a lemonade stand or as large as a corporation, we need to keep that business's finances isolated from everything else. It needs its own bank account that ALL revenue goes into and ALL expenses are paid from. There's a purity about it. Money in, money out, with nothing else polluting it. No personal expenses. No transactions involving another business. Nothing. 

A few things happen when we operate with this level of diligence and discipline. 

• First, it provides clarity. If the only transactions running through a business's bank account are for that business, anything left is considered profit. That's really straightforward! 

• Second, it makes record-keeping much more manageable. When it's time to report data for tax purposes, we know where to look. We can confidently look at this bank account and know everything is accounted for, and there's nothing inappropriate included. 

• Third, we're less likely to justify wants and try to jam them through our business as "deductions." 

The third one really messes people up. Blurring the lines between business and personal and between wants and needs can be dangerously self-sabotaging. It's also a surefire way to create tension in marriage. It reminds me of a conversation with my wife a few years ago. We were talking about our respective personal spending, and she lamented, "It's not fair. You also have your business account that you can go buy food and other fun things with." Shocked by this perspective, I told her I NEVER use the business for personal things. Her response? "Oh, I thought everyone did that." Telling, isn't it? She's right, sadly. But it doesn't have to be that way.

Don't cross the streams!

“Support” vs. Service

Small Business Saturday is one of my least favorite days of year. No, not because I dislike small businesses. Quite the opposite, actually. I have a few small businesses myself. What I dislike about it is the pandering, guilt-tripping, and manipulation that comes with it. 

• "Please support us." 

• "Go support xyz business." 

• "abc needs our support."

• "Support small business.....by giving me money." 

As I've discussed multiple times on this blog, I can't stand the term "support" when it comes to business. Businesses don't exist for us to "support" them. Businesses exist to serve their customers. If they do it well, they earn the right to do it again. It's cause and effect. If they serve well, they get to do it again. If they don't, they lose that right. 

I recently saw a Facebook post on a local restaurant review group. It was about a local business that desperately needs our "support." The post's tone was that because of us terrible citizens, this unfortunate business won't be able to stay open for much longer. In other words, they would survive if we just gave them more money. Problem: Nowhere did anyone mention the restaurant's responsibility to earn the right to serve its customers. 

I've been to this restaurant several times. None of the experiences were great, and one was quite poor. The employees treat customers with indifference, the food is average at best, and the prices are ridiculously high. Comments on the post were quick to point out that the restaurant is located in a high-rent part of town, negating their responsibility to offer prices commensurate with their product. Comments included themes such as:

• People need to stop spending money at national chains.

• People need to keep their money in our town.

• People need to increase their dining out spending.

• People need to spend their dollars at businesses that are owned by "good people." 

Small businesses, you deserve better than to receive people's guilt-driven "support." Yes, it's difficult. Yes, it can be a brutal endeavor. Yes, there are days you'll feel like throwing in the towel. But there's nothing better than serving someone well, earning the right to serve them again, and maybe (just maybe), earning the right to serve more people. It's capitalism at its finest. It's the foundation on which nearly every successful business (large and small) has built itself. 

As I wrap this up, I thought I'd reflect on some of my recent small business wins: 

• I'm buying 1/4 of a beef from a local meat market in the next few days. I've purchased a few items from them over the past year, and they've earned the right to serve our family even more. 

• I just returned from a local bookstore with too many buys. They continue to re-earn the right to serve me.

• I just signed my kids up for drum and guitar lessons after a local business impressed us (i.e. earned the right) with their introductory lessons.

Small businesses, you're awesome! So go be awesome!

Just Do the Opposite

I took my family to the Iowa State basketball game yesterday. It's great to have basketball back! I didn't decide to buy tickets until the night before because, well, I just love impulsive decisions. When it was time to buy, I headed directly to the SeatGeek app. Were there still tickets left at the box office? Maybe. Were there other third-party apps with better prices? Perhaps. But I always buy from SeatGeek. They've attained my unwavering loyalty because they chose to do the opposite of what other companies do. It all comes down to one little toggle switch. "Show prices with fees."

There's nothing worse than purchasing a product or service, only to get crushed with added fees once you get to the checkout screen. Lots of industries do this, but none worse than event tickets (well, Airbnb is the new worst, but we'll save that one for another day). It's a demoralizing endeavor. With SeatGeek, on the other hand, I don't have to worry about that. What I see is what I get. And for that, they are always my #1 go-to. Some people say, "Well, their fees are still high." I don't care, frankly. What's of interest to me is how much, in total, I'm paying for my tickets. Combine that feature with a few other key features (such as dependability, large selection, transfer execution, and seat location mapping), and they become my absolute go-to.

This is a conversation I have with many of my clients. Whatever their respective industry is, I challenge them to "just do the opposite." The natural response is, "This is how it's done." That may be true, but it doesn't mean it's the best way. Doing the opposite is a scary proposition, though! It feels safer and more comfortable just doing what everyone else does. Then, if we fail, we can just chalk it up to bad luck (or some other force outside of our control). On the other hand, if we do the opposite and ultimately fail, we're likely to blame ourselves and point our finger at those specific decisions. These are the scariest of decisions, but also the most impactful.

This is one of the biggest things we got right in our Northern Vessel coffee business. So many of our successes directly result from doing it completely opposite of the normal way. That's also led to a few failures, but it's been an overwhelming success on the whole.

This is also what I attribute much of our podcasting success to. Currently, our Meaning Over Money podcast is ranked in the top 3% of podcasts worldwide (according to ListenNotes). The idea was simple. Cole and I made a list of all the things we hate about normal podcasts, then committed to doing the opposite. It was a beautifully simple plan.

Though I tout these two examples of getting it right, I've whiffed so badly in other areas of my business. If only I had listened to my own advice....

You Know the Names

Sometimes, when I write, I expect a huge response.....and get crickets. Other times when I write, I have muted expectations....and the post goes viral. The latter happened a few days ago when I wrote about an unnamed business that operates with a high level of self-unawareness. They alienate their potential customer base on social media, they treat their patrons like dirt, they don't invest in their staff, and they do a handful of other disrespectful and self-destructive practices. Whether you know this particular business or not, you absolutely know someone like them in your own life. My call to action was simple: Stop investing your dollars and time into these businesses that don't deserve it, and start investing in the ones that do.

On the heels of that post, dozens of people have reached out to ask what business I was talking about. My response was simple. If they could guess, I'd let them know. If not, it will forever remain a secret. After thinking about it, people have guessed countless businesses in or around my city. Some I've been to, and some I haven't. What's interesting, though, is the collection of businesses being suggested by people. For many of them, I would absolutely include them on this list. That tells me most people are just as aware as me as to how poorly some businesses are treating people. Yet, we continue to give them business.

I'm so happy people are pondering this idea through the lens of their own life. As fate would have it, we're thinking about the same businesses. The businesses people are bringing up are some of the same ones that have continually let me down. That overlap should tell us something. This is the opportunity we have. Nothing will happen if I just stop patronizing some of these businesses. I'll undoubtedly stop either way, but my specific influence won't move the needle. However, several of you have guessed the same collection of businesses in our town. Translation: Together, we CAN move the needle.

I'll continue not to name names, but here's a little insight. Whatever business you think I'm talking about, you're right. Deep down, you know who they are. Maybe not the exact one, but you know exactly who they are in your own world. My opinion isn't important, but yours is.

Just in the last few weeks, I've added two more businesses to my blacklist. On one hand, this is sad. I want to like and patronize these businesses, but they've lost the right to serve me. That sucks. On the other hand, that means there's more time and money to invest in other businesses. That's a huge win and a big opportunity (for both me and these prospective businesses).

Let's continue to expect better from the businesses around us. Serving people is a privilege, not a right. Make businesses earn the right, and allow them the opportunity to re-earn the right to do it again. That's a beautiful relationship!

The Self-Unaware Slide

I'm thinking about a local business. You may know this business, but if not, you most certainly know one like it. They sell a good product, but they are struggling. The odd part is they don't understand why they are struggling. It's a head-scratcher to them. It's complete self-unawareness, and I'll explain why. 

I mentioned they have a good product, and their prices are spot-on (low enough to feel like a good value and high enough their margins are probably solid). If both of those statements are true, they should be successful, right? This is the funny thing about business. The tangibles need to be there, but so do the intangibles. And this business, unfortunately, lacks several intangibles:

• They treat their customers poorly.

• They get into online spats with critical voices.

• They don't invest in their staff.

• They constantly post politically charged content on social media, alienating 40%-50% of their potential customers. 

It's easy to accuse people of "not supporting small business," but perhaps we business owners need to look in the mirror. Maybe our problem isn't external, but internal. Maybe we are the problem. Maybe it's the person staring at us in the mirror. With a bit of self-awareness (and humility), perhaps this business could turn the tables and absolutely thrive. 

I don't personally patronize this business anymore, for the above reasons. I always leave feeling like crap. I'm treated as though I'm intruding on their space and not really welcome. It's an unsettling feeling, and I eventually just decided to stay away. It's too bad, as I desire their products. 

On the flip side, there are businesses I can't wait to go back to. Despite some of their prices being higher than I would prefer, I leave feeling good. They treat people fantastic, they have a posture of gratitude, and their top desire is to serve well. They have the intangibles. It's funny how these small businesses aren't playing the victim role and declaring people "don't support small business." They are too busy crushing it to think about that. There's a self-awareness about the way they handle themselves. 

If you're a business owner, heed these words. Please don't take it as criticism, but rather encouragement. I want you to thrive and prosper. I want you to be successful and build a larger following. This is the opportunity before you. Seize it!

If you're not a business owner, you're surely a customer. You only have so much time and money to spend. Be sure to spend it at businesses that earn it. Reward those who treat you well, and punish those who don't. When we vote with our dollars, disrespectful businesses have two choices: a) get better, or b) fizzle out. But it's their choice. 

This is the opportunity (and responsibility) before us customers. If we do our jobs right, our respective cities will be filled with thriving, servant-hearted businesses that desire to add value to our lives. I, for one, am up for the challenge! Are you?

The Many (Noble) Roles of Businesses

Businesses get a bad rap. For whatever sick and twisted reasons, businesses get pigeonholed as soulless entities whose sole role is to take advantage of people while extracting as much money from them as humanly possible. This is absolute nonsense, of course. Businesses don't thrive by taking advantage of people. They thrive by adding value to people's lives, which earns them the right to add more value to more people's lives. The more people they serve, the more financial success they can achieve. 

While it's true that one objective for most businesses is to make a profit, that's just one of many roles. If you were to interview most business owners, many roles and objectives would be mentioned:

• Provide valuable jobs for their employees.

• Add value to their customers' lives. 

• Engage in fulfilling work.

• Make an impact on this world.

• Give back to the local community. 

• Build something they can be proud of. 

• The list goes on and on.....

I was reminded of this last night while attending a trunk or treat event a few blocks from my house. As we were surrounded by hundreds (or thousands?) of people, I got a bit sentimental while taking it in. This event was planned, executed, and made possible by the countless businesses who raised their hand and stepped forward. 

Each "trunk" was funded, set up, staffed, and represented by a business. They could have easily slapped their business name on a sign and plopped a big tub of candy on a table for kids to grab. Few did that. Instead, most businesses picked a theme, decorated like crazy, and got creative with their treats. One of my friends went full-out Ghostbusters (uniforms included!). Another friend did a shark attack schtick. Then a handful of other friends went all-out Ninja Turtles. Not only did they pass out candy, but they arranged for the pizza shop across the street to deliver five pizzas every 30 minutes so they could hand out slices to all the kids and parents. Ninja Turtles handing out pizza at a trunk or treat!!!! It was brilliant, and it made people smile. 

That's what business means to me. Turning a profit is the act serving those who we wish to serve, then re-earning the right to do it again next month. There's nothing evil in that. In fact, it's a noble endeavor. The world is a better place when it's full of businesses that add value to people's lives. 

My life is better when that local restaurant is there to serve my family a tasty meal.

My life is better when that real estate agent is there to help me buy or sell a property.

My life is better when my chiropractor is there to snap my body back into place.

My life is better when the grocery store up the street from my house sells fresh food.

My life is better when that coffee shop is willing to make me a drink.

Businesses have many roles, and they are all valuable. 

Earning the Right: Part 2

In yesterday’s post, I discussed the importance of making enough money to pay the bills. If we earn “enough,” we get the right to do it again next month. For this reason, money isn’t irrelevant in the meaning over money dynamic. Earning enough money affords us the opportunity to continue walking down the path of meaning in our day-to-day lives. My inbox has been flooded with responses. The most prevalent feedback is from people who “feel bad” about charging for their work when they love it so much. They would probably do it for free if they could. But that’s the problem. To continue serving others with their beautiful gifts, they must charge enough to keep the financial train on the tracks. Therefore, charging a reasonable price for their work is a good and noble thing. If we believe this, it changes everything!

Today’s post is a different angle on this “earn the right” concept. It’s one thing to charge people for your work, but another for people to want what you’re selling. Just because you say something is worth $x, it doesn’t mean it is. The tell is whether people want to pay you what you say it’s worth. If they do, it is….if they don’t, it’s not. Again, this is an earned privilege. We must add more value to the customer than what we charge them. If we do that, they will likely be happy. That’s only the first half of the equation, though. Let’s say someone trusted us enough to exchange their hard-earned money for our product/service. The next question is, did we earn the right to serve them again? It’s one thing to try something once, but it’s an entirely different thing to go back again, and again, and again. That requires us to add value, exceed expectations, treat them well, and build trust…..then repeat.

Later today, I’ll be delivering a talk in Los Angeles. It’s a slightly different version of the talk I did in June for the same organization. I’m also scheduled to do it a third time in January. I’m tremendously grateful for the opportunity, and I don’t take it for granted. I know for a fact this wouldn’t have happened had I not earned the right to do it again. If I performed poorly the first time, or was difficult to work with, or simply wasn’t perceived as “worth it,” I wouldn’t be here. They know that and I know that. Every time I step up to the plate, whether it’s a talk, a podcast, a blog post, or a coaching meeting, I’m giving it my best in hopes of earning the right to do it again. If I publish crappy blog posts, you’ll stop reading. If I produce lame podcast episodes, listeners will unsubscribe. If I deliver a bad talk, I won’t get invited again. And if I don’t serve my coaching clients well, they will fire me (and rightfully so!).

Every day, we must earn the right to serve them again.