You wouldn’t think it would be too hard to sort out whether this is no small business lending because there is no capital … or because small businesses aren’t asking. There’s a lot here so keep reading if you want to gain a better understanding of what’s REALLY going on.
The Wall Street Journal recently carried an article, Big Bank’s Lending Programs Yielding Few Results So Far, which summarizes efforts by big banks like Goldman Sachs Group, Citigroup and Bank of America, under pressure from the Obama Administration, to launch programs to increase lending to entrepreneurs. Most of these programs are Community Development Financial Institutions (CDFI’s) – oh, great, another financial algorithm – which primarily lend to small businesses in low income areas – a worthy program but hardly a program targeted at the broad small business community.
Three days earlier in, A Credit Crunch That Lingers, the WSJ pointed out that only half of small businesses that tried to borrow last year got what they needed according to
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I’m a big believer in the Ritz Carlton’s program of providing a $2,000 allowance to empower their employees to enhance the “Guest Experience” … and I think it’s noteworthy that the Cadillac division of General Motors is applying this concept to strengthen their relationship with potential Cadillac customers.
It’s not the money. It’s not the ability to gloss over errors and omissions in your customer service process … and the Ritz Carlton experience confirms that it’s rarely abused. It’s a great idea because it will not only “WOW” your customers … but most importantly … will demonstrate to your team that they are always on the front line of the customer experience and need to actively seize the power to solve problems for customers … right now!
What have you done to astonish your customers and build an impregnable customer relationship?
Yesterday, I referenced a shorthand version of a business plan outline. Most of you saw the words “business plan” and immediately started looking for the key to the gun cabinet, conveniently placed right next to the liquor cabinet … because that phrase usually incites a painful, grinding noise between your ears.
Short answer? Those who completed a business plan WERE MUCH MORE LIKELY to grow their business, raise investment capital and obtain a loan.
Stay tuned for the longer answer. In the meantime, why don’t you think you have a plan? What’s holding you back?
* Truth * Assertions * Alternatives * People * Money
Cuts to the quick, doesn’t it? What do think is the most important question to answer in shaping your business plan?
This week I chose to digress from our series on strategic finance to offer a few observations about some powerful leadership lessons threading their way through recent headlines.
It’s mind-boggling how many repeat offenders of the “cover-up” appear in the headlines every week, denying the indiscretions that inevitably lead to slow, tortuous “uncovering.” Watergate fostered the relentless pursuit by the media of anything they rhymes with “lie and deny,” and Woodward and Bernstein launched plenty of investigative journalist careers when the Watergate secrets led to the downfall of the Nixon presidency. More recently, the political cover-ups, void of any sense of personal accountability, continue ad nauseum with a cast ranging from John Edwards to South Carolina Gov. Mark Sanford, the Catholic Church, etc.
Umpire Jim Joyce
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Dan Heath at Fast Company describes a recent experience with subjects who were offered either chocolate chip cookies … or radishes. (If you’ve even been cut from a sports team, you’ll know how the radishes felt!). You can also see a short video there explaining the experiment.
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Fast Company recently carried a brief piece which described how what appears to be a personal shortcoming may obfuscate a problem situation. In psychology, they call it the Fundamental Attribution Error but the example they used is particularly poignant for many situations we’ve all seen.
Have you experienced situations that seemed like “people problems” … maybe you took it personally? … only to learn that a modest tweak in the situation resolved most of the problem?
I’m sure this will be a popular post … but set aside your emotions for a moment about the BP disaster… and consider the insistence by the federal government that an independent agency take over the claims resulting from the oil spill, purportedly overriding BP’s authority, and that of the other 12 entities on board the oil platform, in those matters. The suggested prototype is the independent examiner appointed to handle claims resulting from the events of 9/11 … but recognize that those events were NOT directly caused by a legal entity with rights and responsibilities and shareholders, or that was subject to a myriad of legitimate national and international governing bodies.
Who should decide how much to pay whom for oil spill claims?
What I wonder is whether BP … in most cases, any corporation … shouldn’t have some rights and control over the claims paid from funds ultimately belonging to their shareholders? Take special note that in BPs case, a powerful example of the global economy in which we live, 18 million British citizens own stock in BP, many of them retirees.
Emotions are running high and many people would prefer to see BP hanging from the nearest rafter. At the same time, shouldn’t a company be allowed to settle claims in a fair and reasonable manner? There are plenty of ways in which individuals and organizations can seek redress if they disagree on the results, either through appeal or in claims or civil courts if a reasonable settlement cannot be made.
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Here is the simple creed that John Wooden, famed UCLA basketball coach whose winning record is unlikely to ever be surpassed, received from his father and carried in his wallet throughout his life:
Simple. Clear. Unequivocal.
Is there a particular creed you live by each day?