From the moment you decide to start a business you are signing up for adversity, problems, and challenges.  Many will tell you your idea is horrible.  Resilient entrepreneurs accept such criticism as proof of concept!  You will make many mistakes, but resilient entrepreneurs call that experience and improve themselves as a result.

So, is resilience just trying to shed a positive light on negative things?  Absolutely not.  It is much more than that.  My definition is that no matter how hard things get, no matter how dark the scenarios, not matter how painful the process, those that are resilient figure out how to overcome and thrive.  Entrepreneurship is really problem-solving on steroids, isn’t it?  Only it’s legal and arguably even more productive, in the short and certainly the long-term.

In looking through a few online resources, here are some words and phrases that many associate with resilience: rebounding, springing back, buoyant, returning to its original or better form, recovering readily from illness, depression, adversity, or the like.  Sounds like entrepreneurship to me.

The example I shared above has a happy ending.  That entrepreneur went on to build another successful business, and he continues to be an example of entrepreneurial resilience.  I’m not sure if you can teach it, but it sure is an admirable trait.

Feel free to share any examples of entrepreneurial resilience or your thoughts on resilience as a necessary attribute of all entrepreneurs.

An ever-growing section of the labor market has become increasingly more interested in a full-benefits package rather than the size of their paycheck. A growing segment of the workforce is looking at an increasingly distant retirement date, worried their nest egg could vanish at the appearance any medical condition that will require ongoing treatment with a hefty prescription bill to boot. There are many well-seasoned and experienced professionals willing to work for the benefits package rather than higher wages.

Hanging on to your benefits package will give you an opportunity to scoop up these valuable employees at bargain prices when hiring becomes difficult again.

Lightweight Business Model

When I prepared my pack for this grueling adventure, every ounce counted.  And trust me, by the last day I felt every fraction of an ounce.  I started with the staple needs – tent, sleeping bag, stove, water filter, headlamp, etc.  Regardless how many days I would be gone, I would need the same amount of these items (one tent, one sleeping bag, etc.).  These are like the fixed costs in your business.  We want them to be as light as possible, because we will be adding more weight to them per day we are gone – changes of clothing, food, fuel, and more.  A lightweight business model is one that does not over-burden the business with heavy fixed costs and tries to structure itself to function, as much as possible, on variable costs.  The lighter the fixed costs, the lower the break-even point and the more flexible the business will be to change its course and take advantage of the right opportunities as they come along.

Foundation Determines Success

I quickly learned that feet, the foundation of the body, were the most important part of the body on this trip.  One person bought a new pair of shoes 2 weeks before the trip and had several blisters after just the first day of hiking.  He was plagued by these and the rest of the blisters that appeared thereafter throughout the duration of the trip!  He had to go much slower than the rest of his body wanted because of the pain from these blisters.  Those who experienced the least amount of pain and enjoyed the most comfortable experience were those with the right shoes and socks and they worked to keep their feet dry while hiking (we were rained on every day, with the worst torrential downpour I’ve ever experienced on Friday) and warm at night (temperatures dropped into the thirties each night).  In business, we have to strengthen and take-care of our foundation, which is usually a combination of working capital, the best employees, and our customers.  Without these three things we are in for a very painful business experience.

Difficulty is in the Eye of the Beholder

We hiked 12 miles on Monday, 15 miles on Tuesday, 7 miles on Wednesday, 13 miles on Thursday, and 16 miles on Friday.  Before Monday, the youth would complain before a 5 mile hike.  By Wednesday morning, after days of 12 and 15 miles, respectively, 7 miles was the easiest thing they had ever heard of.  Comments like, “Oh, we only have to go 7 miles today,” and “Today is going to be a piece of cake,” became the opinion.  The business application – what may look difficult today is likely not nearly as difficult when put into context.  You may be going somewhere you and your team have never been, but few challenges end up as hard as they might initially appear.

Snapshots are Less Valuable than Overall Perspective

Kings Peak is not all that intimidating when you are next to it.  On Wednesday night we camped just south of Kings Peak in Painters Basin, only about 2,400 feet lower elevation than the peak – it would take a hike of just over 3 miles to summit the next morning.  What was interesting was the reaction of the youth.  “That doesn’t look like the tallest mountain in Utah,” one young man offered.  How quickly they forgot how far and how high we had to hike just to arrive at that point.  Just two days later we would finish our adventure at 7,800 feet.  The point is this – our perspective is often limited to the immediate surroundings of that at which we look.  We need to broaden our perspective so we can see the whole picture of our business.

Conclusion

One of the leaders on this trip frequently said that it would not be an adventure if we knew the outcome.  Starting, owning, and running a business is, therefore, an adventure.  With these four lessons learned, we can hopefully create the outcomes we desire!

I was reminded of this quote while recently reading a blog post by Mark MacLeod of startupCFO.  In Traits of Successful Founders Mark suggests that one of the common traits of Founders who are finding success are the ones who don’t just know their industry – they understand it from years of experience.

Not only do I think his assessment is correct, but I also struggle to get excited about a new venture when the Founder has little or no experience in the space he/she is trying to occupy.  For example, several years ago I met an entrepreneur who wanted to create a certain kind of vitamin supplement that could be injected into a home’s tap water – supposedly improving absorption and utilization.  As I inquired into his idea, he explained that he had no experience in vitamin supplements, water supply, or distributing such products.  He sensed my concern over this and tried to assure me that he was a fast learner and that it wouldn’t take him long to get up-to-speed.  He was confident he did not need any help and that he could do it all himself.

His effort to subside my concern only fueled its flame.  And that’s where Confucius comes in – I do and I understand.  My recommendation to him was to go and get some industry experience by working in the space, attending trade shows and conferences, subscribing to industry periodicals and newsletters, and doing anything else to immerse his thoughts into the space.  Even with just a couple of years under his belt he could vastly improve the chances of success for his idea.

He ending up struggling for several years to gain traction, and finally gave up on his idea and commented that he couldn’t seem to break-into the industry and make the right connections to get his venture off the ground.

For fear someone may misunderstand what I am saying, I am not suggesting that a Founder must have gray hair in a particular industry.  I’m only suggesting that even a couple of years will make a huge impact on the viability of the idea and hopeful venture.  It is always easy to sit on the “outside” of an industry and think how easy it is.  The reality is that no business is easy, every industry has its unique challenges, and the thought leaders for each industry are grounded in the day-to-day challenges of that space.

When Confucius says I hear and I forget, I think back to the last seminar I attended.  I remember less than 15% of what I heard.  When Confucius says I see and I remember, I think back to hearing my father teach me about the importance of hard work and then seeing him live his life in congruence with his teaching.  When Confucius says I do and I understand, a flood of memories and lessons-learned come to mind, with particularly acute attention to the failures and mistakes in my past.  There is just no replacement for experience.

I need to preface what I am about to say with the disclaimer that I think every business should have a dashboard that outlines the key business metrics every business should measure, with some customization by industry and company, in a timely and accurate fashion.  I take no issue with the concept of dashboards – in fact, I fully endorse it.  My issue is related to programs and tools that are built to fulfill the dashboard function and how they are deployed.  Most dashboard programs and tools are totally ineffective and fall far short of the sales pitch that caused them to be purchased in the first place.  Why?  Here are the two main reasons, as well as my suggestion for how to get the most value out of the “dashboarding” process.

1. WE DON’T KNOW WHAT WE NEED TO KNOW

Regardless of how well you think you know your business, your model, or your key metrics, I guarantee you will not get the needs of your dashboard right the first time.  An inevitable part of the “dashboarding” process is you quickly learn what information is helpful and what information is not.  It also forces you to ask additional questions that leads to better and more effective metrics.  The challenge with most SaaS and off-the-shelf “dashboarding” programs is that they all require time, effort, and energy to set them up so they will work.  It is hard to make any changes without feeling like you have to start all over again.  Yes, I hope there will be some dashboard companies that will dispute this statement, but I have yet to see any of them fulfill on the commitment that the dashboards are easy to change once they get up and working.

2. THE INFORMATION IS NOT ACCURATE OR TIMELY

Once you know what you need to track, the next challenge is getting the information into the dashboard in a timely and accurate manner.  Most dashboards pull data from the accounting or ERP system the businesses uses, and that information is usually only updated and reconciled monthly, and that information is usually not completely accurate until the 10th of the following month or later.  The purpose of the dashboard is to get real-time feedback, so 10 days late is the equivalent of a year late in dashboard time.  If the information is not right, then the dashboard will not be right, which will lead to bad decisions.  If it is not timely (meaning pretty much real-time), it is useless.

THE SOLUTION

The solution to these challenges is really quite simple, but it takes a little thought, discipline, and effort.  Here are the steps to get an effective dashboard up and running for your company:

First, don’t buy a dashboard.  This step needs to wait – remember, software does not solve problems.  People and intelligence solve problems, then software automates and simplifies the solution.

Second, make a list of what you think will be important to track each week.  There should be key metrics from marketing, sales, operations, and finance on your list.

Third, create and excel spreadsheet, or a google doc spreadsheet for those of you living in the cloud, and list each of the things you want to track across the top to create several columns.  Then, list the Friday of each of the following 52 weeks down the left-hand column titled “Week Ending.”

Fourth, coordinate with your team where all of the information will come from for this document.  It may need to come from several people, so commit them to get the information to you on time and in the format that will work best for you.

Fifth, start tracking for four weeks and see what everyone thinks.  What information do they like?  What information do they still wish they had.  Then repeat this process for the next three months.

Sixth, once you feel you have your list of items you want on your dashboard pretty well-defined, start to investigate the best ways to automate the collection of this information into your weekly dashboard.  The information will likely come from many different software application, including your accounting system, your CRM, and more.

Seven, start to investigate dashboard SaaS tools based on their ability to pull data from all of your sources (which may include some manual input).

Eight, purchase a dashboard that solves the highest number of issues in terms of automation, timeliness, and accuracy.

Nine, spend the time and resources it takes to get your new system set up the right way.

Ten, sit back and enjoy the fruits of your labors with the critical information you need to run your business right at your fingertips.

I could give countless examples of the benefits that companies reap when they have the right information on time.  The point of this blog post is that business owners should refrain from making any type of “dashboarding” purpose until they get to step 8 of this process.  If you don’t wait, you will likely end up with the wrong solution giving you inaccurate information that will be useless and waste the company’s resources in terms of the procurement, set-up, training, implementation, and ongoing support.

*Author’s Note: Please note that for the purposes of this post I chose to step out on a liberal limb and turn dashboard, which is usually only used as noun, into the verb “dashboarding.”  I have surrounded each occurrence of this with quotation marks as a sign that I realize “dashboarding” is not a word, but it helps me communicate my point.  Thanks for understanding!