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Cycles

In the Lean Startup, Eric Ries applies the methods of lean manufacturing to software startups. One of his core concepts is a cycle of progress where you build, measure, and learn. The cycle is important because you build on past lessons with every iteration.

As it pertains to growth, the same cyclical model can be broadly applied. Nature, agricultural, human growth, education, etc. run on cycles with seasonality. As an example, if you cut down a tree you see the annual cycles written in rings across its trunk with each year showing successive growth.

One of Ries’s contributions with his cycle of build, measure, and learn was to propose that by intentionally changing the scope, you could change the speed with which the cycle occurred. Smaller scopes could be processed quicker. This had the effect of acquiring intelligence about what works quicker which leads to faster growth.

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Have a Little Empathy

This autumn, I had the opportunity to experience our value proposition from the perspective of a customer. We offer service seven days a week and I needed a freelancer to cover a Saturday shift with the same dependability as an employee. I made the offer to pay someone, regardless of whether it was busy or not, regardless of whether we had project work lined up or not. They would get paid for a full day no matter if they were helping customers or playing video games while they kept an eye on the queue.

Essentially, I was paying for availability and access to someone who knows what they’re doing. That’s precisely what we offer our customers.

It wasn’t a big “ah ha”, but in the moment I remember recognizing, “This is exactly the same decision making process our customers go through.”

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Risk & Reward

On Monday, I took my wife on a date. We had ramen and then went to a Japanese style arcade at the mall.

Among the many games we played, was a football throwing game. You’ve probably played the game where you shoot baskets for time to see who can score the most points. This game was similar, but with little footballs that you would throw at three holes in the wall. The bottom hole was big and worth 20 points, the middle smaller for 30, and the top hole was smallest for 50 points. My wife beat me by forty points.

What does this have to do with business growth?

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Something New

In 2018, I went through 10,000 Small Businesses. If you’re not familiar, it’s a program sponsored by Goldman Sachs and operated by Babson University that provides training and access to capital for small business owners.

The program covered all the business fundamentals you’d expect: marketing, finances, HR, operations. It was a business accelerator of sorts, with the intention of helping small businesses grow.

A foundational premise of the program was that significant growth was in the new:

  • New markets
  • New products or services
  • New equipment
  • New ways of operating
  • New locations

There was an assumption that we could operate better than we had been, which was why we covered all the business fundamentals. But new opportunities to fuel big growth was what the program, and those fundamentals, were organized around.

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Debriefing Failures

I hired an account manager, a PPC agency, and a junior developer this year. All three were part of an effort to scale up and serve more customers. At the end of the year, all three are gone and the work to scale had a negligible impact.

In retrospect, I don’t think these were dumb decisions. I had completed a lot of work to figure out whether these were viable investments and how to find good people. At the same time though, I failed in several respects. While not dumb, I didn’t do a good enough job managing the risk and I didn’t stay focused enough on ensuring they’d be successful.

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Your Own Way

I recently attended a speech by a well-known agency owner in Portland, Kent Lewis of Anvil Media (now Deksia.) He operated his agency for 25 years in Portland and sold it this spring. He stayed on as marketing director and presented on building a network through social media and using it to sell.

Kent has a LinkedIn network of over 22,000 people that he built over a ten year period. He did this through grinding, by sending personalized connection requests and commenting on others’ activity 5 – 10 times each day. He said that he was getting ready to go on vacation and it would be the first time in years that he wouldn’t check his social media.

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Your Own Kingdom

Today, the apprentice we hired passed his interview to become an American citizen. We didn’t have anything to do with it, but I’m still proud to be associated with him and supporting his development. He works during the day for us and then in the evenings he supports his father in his janitorial business. I’m looking forward to the day when he steps into his first entry level role and is able to capture some of the investment we’ve both been making in his growth.

Businesses have an imperative to generate a profit. Profit is required for self-sufficiency.

Beyond that though, your business is your kingdom. You make the rules. You can use it to pursue freedom, expression, growth- whatever you want.

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Problems You Shouldn’t Solve

Does every problem in your business require you to fix it?

Entrepreneurs are problem solvers by nature. Creating new value in the world requires fixing a problem for the broader market. On top of that, businesses are problem creating machines. They’re dynamic organisms that require continual attention.

In the Marine Corps, there’s a position on CH-53 helicopters called “crew chief.” One of the jobs of the crew chief is to fix the helicopter while it’s flying. Businesses are like CH-53 helicopters and the operator is often running around its cargo bay with a wrench trying to keep it airborne.

In EOS, there are two leadership roles: integrator and visionary. This is because you can’t be tinkering on the helicopter and piloting it at the same time. The integrator is executing and the visionary is discovering value.

This doesn’t mean that every business needs to be a partnership or have a general manager. It just speaks to the nature of operating a business and the two competing needs of executing and moving forward.

In my business, we had a big problem this year with custom development projects going two to five times over our internal budget. We shield most of these costs from clients, but that comes to a cost to our profit.

As a natural problem solver, I can fix this. But the cost to fixing it is that I’ll take my eye off of value creation. As important, I have a team that delivers projects. By stepping in and implementing changes, I would actively dis-empower them. I’d train them that they’re not responsible for the results of the system that they operate. They’d also miss out on the opportunity to develop their own problem solving capacity and instead become more reliant on me.

It’s hard to restrain yourself from taking control. It’s slower to rely on others and often you pick up costs in the process because things don’t work right away. But if you’re the one accountable for problems in the business, the helicopter doesn’t move forward.


Featured image is the prototype CH-53. I was in a “helo” company in the infantry and have many memories of sitting in the cargo bay watching liquids drip from the ceiling as the helicopter made anxiety inducing sounds. Used under public domain.

If Things Were Simpler

Sometimes, I look ahead and wonder what I’ll think about business in ten years?

Learning has a way of expanding your horizons and revealing options. Things that seemed simple as a neophyte become nuanced and complex.

However, mastery can have the opposite effect. Things become simple again. Lessons are embodied and all the complexities are reduced to streamlined principles and rules.

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Spaced Out Growth Opportunities

In 2018, I set at a table with other entrepreneurs in my 10,000 Small Businesses group at a campus outside Boston and studied course work around all the subjects that compose business: marketing, hiring, finances, operations, etc. The goal of the program was for the entrepreneur to develop a plan to purse a growth opportunity.

One of the instructors introduced a brainstorming framework called Earth Sky Space. You draw two horizontal lines on a piece of paper to create three zones. The bottom zone is earth, the middle is sky, and the top is space.

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