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  • Aspire » Leadership

    01 Oct

    spiritofkcEntrepreneurs and business owners come in all shapes and sizes…they have different backgrounds, different aspirations and they work in all sorts of industries and spaces.

    Despite all of those differences, they really start to look similar when it comes to how they act and think.  Simplistically business owners come in 1 of 3 different types…and it’s that type, a set of traits, that determines what kind of success they’ll have in the long run.  If you don’t know your type, it’s likely you’re unconsciously sabotaging your chances at long term success.

    The good news is these traits can be identified and changed (with effort) over time so they match up with where you want to be long term.  The first step is to identify where you are now.  To get you started, here are the three archetypes that I commonly see in business owners.

    Are you a Hero, Headliner or Builder?

    The Hero

    Most business owners start out as heroes…the hero’s mindset and approach is natural for starting up and gives you the best chance of early success.  However continuing to play the hero after the first year or so in your business is a sure path to failure (see: 5 Reasons why being a Hero is killing your business).

    A hero…in business owner terms…is always on the front lines and is involved with every single important activity in your business.  A hero may have employees, but those employees aren’t actually allowed to do any of the heavy lifting – all decisions go through the owner.  And when there’s an issue, a fire to fight, the hero will drop everything and take charge of the problem.

    How to tell if you’re a Hero:

    The Hero is typically a slave to the business, works long hours, rarely takes time off and is constantly waiting for the big break.  Real success is always ‘just around the corner’…one big client away from happening.  A quick test for you – If you don’t have an up to date organizational accountability chart (actually on paper…not just in your head) that clearly shows others owning key activities…then you’re playing The Hero. 

    Prognosis for The Hero:

    A hero’s success and longevity is tied to how much personal energy and drive they have…and the number of hours in a day.  The hero isn’t necessarily directly trading time for money, but there’s not a lot of leverage there either.  Typically they’ll grow the business to the point where they are working 110% of their time and then they’re stuck.  There are no more hours in the day and at some point they’ll be unable to keep up a 60, 70, 80 hours a week pace and they’ll shut things down.

    In case it’s not clear…playing The Hero is a dead end for a business owner.

    The Headliner

    The Headliner is a variation of the Hero…but one that has a chance of a specific kind of long term success.  Like the Hero, the Headliner is the central point of their business…all key activities and decisions pass through the Headliner.  However the Headliner is also the reason for the success of the business.  The Headliner has a reputation as an expert or a top line performer and can do things that most others can’t do.

    Most writers, artists and professional speakers are Headliners – they are their business.  They may have some kind of employee help, assistants, accountants, etc., but for all practical purposes it’s just them.  However Headliners can also be lawyers, plumbers, coaches, consultants…pretty much anyone who stands out as an ‘expert’ in their field.

    Prognosis for The Headliner:

    For those Headliners who have found a profitable niche where people will pay a lot for their skills, being a Headliner can be a great business…albeit more of a lifestyle choice.  The Headliner is primarily trading time for money – although that hourly rate can often be pretty phenomenal.  If your goal is to make up to 6 figures, control your own destiny and not mess around with building an organization or managing people, then being a Headliner is a good choice.

    The downside is that there is rarely anything to sell if you decide to wrap up your business and you’re always ‘on’.  If you ever hit an extended downturn (sick for 6 months, break a leg, etc.) then you won’t be making any money and it may be difficult to ramp things back up to where they were.

    The Builder

    The last (and most difficult) business owner type is the Builder.  As you might expect from the name, Builders are all about building their business…ultimately with the goal that it runs without them.  A successful Builder could take 3 or 4 months off and their business would continue functioning…and actually would grow in their absence.

    Builders spend their time and efforts creating a business model that’s scalable.  They invest in creating a leadership team empowered to make big decisions and handle issues (without input from the business owner).  The owner’s primary role (beyond creating and leading the leadership team) is strategically improving the business…finding ways to drive more revenue and profits and identify areas of weakness.

    Prognosis for The Builder:

    When you’re just starting a business, as the owner you will have to do most of things on your own (much like the Hero).  However unlike the Hero who just throws themselves at issues, the Builder is constantly looking for opportunities to streamline, automate and delegate…and as soon as the revenue allows it, they hire and start delegating authority.

    Because the outcome of a successful Builder is a business that runs without day to day input from ownership, that business becomes a very valuable commodity that can be sold.  Alternatively, the owner can hang out indefinitely doing the parts of the business they enjoy because the business has been successfully designed to support them without requiring constant sacrifices.

    It’s tough to be a builder, but the rewards are huge.  Having said that, most business owners I talk to operate more like the Hero rather than the Builder.  Where do you fall on the spectrum?  Have you thought about it?  What would it take for you to start being a Builder?  I’d love to hear your thoughts – leave them in the comments below.

    Shawn Kinkade  Kansas City Business Coach

    Picture is “The Spirit of Kansas City” by Norman Rockwell

    11 Sep


    Recently I was reviewing the spending habits of a business as the business was attempting to borrow more money. If you have borrowed (or tried to borrow money) in the last few years, you already know how challenging this has become.

    To get to the point, this company’s spending seems to be out of control and the challenge is to figure out how to help them (or if they can be helped).  I know several of our readers are familiar with issues like this so I’m going “open book” and asking for your opinions, suggestions, and recommendations.

    A little background on the business…

    It isn’t a startup company, so there is little probability the company will achieve exponential growth in the foreseeable future.

    They started with a very focused product offering, but today they are very diversified in their product offerings and may be in too many markets.

    What started out as a very lean operation (Taiichi Ono and Henry Ford would have been proud) has grown into a business with several layers of management and labor.  Many would describe it as bureaucratic.

    Their HR department is stretched to its limits.

    Clear inability to control spending. The business claims they are getting control of their spending, but their track record says otherwise as they have increased their debt by over 60% in the last 5 years.

    Their “projections” for revenue increases over the next 5 years are about 10% / year, but they still plan to spend more than they make each of those years.

    Time is running out – their bank is pushing back on more borrowing as they are already carrying a substantial debt.

    By the Numbers: The business, this year…


    Projected business income


    Total business operating budget


    Additional debt  projected for this year
    $1,605,100 Current outstanding debt the business has.
    $11,000 Est. Avg. amt. they are projecting to reduce additional debt/year (next 10 yrs.) NOTE – Not reducing the outstanding debt, just reducing the amount they are adding to it each year.


    The struggle is getting the business to act on their spending problem. The entire management team is aware of the issue, but they just keep on spending! Currently they are tactically focusing on reducing the additional amount they are borrowing. Reducing the outstanding debt is rarely even talked about it.

    Can this business be saved? As business owners, do any of you know a bank that would be willing to loan them additional money? Is it making you feel better about the financial condition of your business?

    Now, the real world…

    What if this company was bigger? What if we added “7” zeros to each of the numbers above. What do you get? The actual numbers of from the United States Federal Government (as reported on Wikipedia – note, these may or may not be completely correct, but it’s pretty close).

    $2,469,000,000,000 2012 US Tax Revenue
    $3,796,000,000,000 2012 Federal Budget
    $1,327,000,000,000 2012 Federal Deficit
    $16,051,000,000,000 2012 National Debt (See National Debt Clock for up to date information)
    $110,000,000,000 Est. Avg. amt. currently projected to Deficit/year (over next 10 yrs.)NOTE – Not reducing the outstanding debt, just reducing the amount of the deficit.

    Final Thoughts…

    The point of this isn’t to be on one side of the political fence or the other. It is about looking at the facts. It is what every business owner has to do. We have to look at the facts; this is where the business is at today, it doesn’t matter how we got there, but continuing to do what we are doing is not going to solve the problem. No business can survive when it continuously spends more than it makes.

    The values can get easily blurred in any business, but sometimes I think it is easier as we jump between millions, billions, and trillions. By reducing the Federal Government numbers to an income amount many business owners are familiar with, it is easy to see the severity of the situation we have allowed our country to slip into. So regardless of who you plan to vote for this fall, fiscal responsibility is a key requirement going forward – regardless if the company has revenue of $246,900 or $2,469,000,000,000. You need to have a plan to spend within your means and hold yourself accountable.

    We’d love to hear your thoughts – share them in the comments below.

    Chris Steinlage    Kansas City Business Coach.

    03 Sep


    As a business owner do you ever feel like you’re struggling to hang on by your fingernails?  Most of us have been there at one time or another – in fact it turns out there are some predictable reasons why you might be at risk for having your business fall off the cliff.

    If you haven’t had a chance to check out Jim Collins latest book ‘Great By Choice’, you’re missing out on a new business classic. (I just did a Business Book Review on the book and if you can pull together 8 to 10 people – I’d be willing to talk about doing a Business Book Review for you if you don’t have time to read it).

    Like all of Collins books, Great By Choice is grounded in research and analysis…in fact it took a team of 20+ researchers 9 years to develop the conclusions in the book.  Their goal was to answer the question:

    Why do some companies thrive in uncertainty, even chaos, and others do not?

    Using a bunch of data and a very scientific approach they identified a handful of very successful companies who dominated in chaotic, uncertain industries…and they identified their counterparts who…fell off the cliff.

    The really interesting part came out of figuring out what these companies did (or did not do) compared to their failing peer companies.  Did they innovate more?  Did they have a better crystal ball?  Did they work a lot harder? Take more risks? Were they just luckier?  The answers were surprising and generally not what you’d expect.  Collins and his team focus on what to do to succeed, but there’s another clear message here: if you aren’t following these ideas, you’re likely to fail (and fall off the cliff).

    What are the concepts that lead to success or failure?

    1. Slow and steady wins the race

    It’s not as cliché as it sounds. Collins and his team discovered that the successful companies all shared a strategy that he dubbed the ‘20 Mile March’.  They used fanatic discipline to insure they made healthy progress every single year based on a key performance indicator.  As an example, at Stryker the CEO imposed ‘the law’ that the company would achieve 20% net income growth every year.  During the 21 years of the CEO’s tenure, the company hit that goal over 90% of the time.  Equally important…the company pulled back on growth many times during that period in order to stay in control.  The idea is to stretch, but not too far.

    Question:  Do you have a clear, easy to follow stretch goal that your entire team is completely focused on every year?  Do you have the discipline to hold back on opportunities when things are going very well?

    2. Try before you buy

    Before you buy an expensive car, you’re going to take a test drive.  Before you buy new music from a band, you listen to samples online.  Collins discovered that the successful companies rarely jumped into unproven ideas.  Instead they would find creative ways to try things out on a small scale…and if the results made sense, then (and only then) they would jump in with both feet and execute strongly.

    The unsuccessful companies did things differently – they would identify a new idea, talk it through, maybe do a focus group and if they thought it looked worthwhile…on paper…they would make a big investment and hope for the best.  Their odds of success were low (much lower than the successful companies who did actual trials) and the cost of the failures were a big reason why these companies didn’t succeed in the long run.

    Question:  Are you trying things on a small scale before you make those big bets?  Are you in a position to really be able to track your results in a way that’s meaningful?

    3. Live within your means

    The ‘Great Recession’ has recently taught this lesson to everyone all over again.  Houses don’t always increase in value, bad things can happen to anyone at any time and if you owe a lot of money for credit cards or loans, you are in a very risky position without many options.

    It turns out those lessons don’t just apply to families, they also apply to large companies.  Collins and his teams discovered that the successful companies were ‘productively paranoid’ – hoping for the best, but planning for the worst.  They kept their debt levels extremely low and made sure not to over-extend, even if that meant passing up on great market opportunities.  The unsuccessful companies ran just the opposite – leveraging everything they could at every turn and hoping and praying that nothing bad happened…which of course eventually it always will.

    Question:  Are you clear on how much ‘Runway’ you and your company would have if things suddenly went south?  Are you constantly scrambling to make payroll?  What could you do to start building up some reserves?

    4. Follow the recipe for success

    If you’ve ever tried to cook something from memory without the recipe…then you know it can be a dicey result.  Everything might turn out fine…or it all might go horribly wrong.  A proper recipe is based on someone trying something and documenting what worked and what didn’t.  Without following the recipe, you’re open to random outcomes and a lot of time spent re-inventing the wheel.

    Every one of the successful companies had their own recipe for success.  A fairly short, simple list of rules of what they do…and just as importantly what they don’t do.  More importantly, once the companies identified the keys to success…they didn’t mess with them.  They consistently executed and stayed focused without changing the recipe.  The failed companies sometimes used a recipe, but were very likely to make big changes as they went…negating any long term benefits.

    Question: Do you have a simple list (written down) of rules that everyone follows?  Do you know what drives your success?  Does your team know?

    5. Don’t be a victim

    The research team went to the unusual measure of studying luck…and it turns out, luck, both good and bad, happens to everyone in pretty much the same amounts.  The real difference in long term success lies in your reaction to luck.  When the successful companies had bad luck, they were prepared (because they planned for the worst) and they took charge of their response and didn’t play the victim.  Conversely when they had good luck, they had the discipline to take a measured response and they executed…within their means.

    The failed companies tended to blame the world when things didn’t go well.  And they tended to be unable to follow through successfully when things rolled their way.  In short…

    “They didn’t fail for lack of good luck; they failed for lack of superb execution.”

    Question:  What’s your reaction to luck?  Are you likely to play the victim?  Do you have plans in place that will help you overcome bad luck?  How about to take advantage of good luck?

    There are lots of ways you and your company can fall off a cliff, but if you consciously adopt these 5 behaviors, your odds will be stacked towards long term success.  Much of this is common sense…but it turns out that common sense really isn’t so common any more.

    Which of these traits do you most identify with?  Which one do you need to work on?  We’d love to hear your thoughts – leave them in the comments below if you get a chance.

    Shawn Kinkade  Kansas City Business Coach

    photo by Elsie esq.

    16 Jul


    Photo by Striatic

    Have you ever felt like you just can’t get through to some people?  That the line of communication just isn’t working?  It’s frustrating on a personal level, but it can be a killer when it comes to small business success!

    Of course the best time to work on a potential issue is before it actually becomes a problem.  With that in mind, one of my clients recently asked about doing a team assessment and communication exercise to help get everyone closer to the same wavelength.  We decided to use Extended DISC assessments and a Team Analysis as a tool to educate everyone and get the ball rolling towards better communication.

    What is Extended DISC?

    If you’re not familiar with Extended DISC, it’s a behavioral assessment tool that’s based on extensive research that goes all the way back to the early 1900s with the first formal assessments in the 1950s.  Variations of DISC have been used by millions all over the world and have been proven effective across all languages and cultures.  At Aspire we’ve found Extended DISC to be an easy, cost effective tool that quickly helps people understand their behavioral style…and with the Team Analysis they will also understand the overall make-up of their co-workers and the team in general.

    The core behind all of DISC type assessments is a 4 quadrant model (as seen below) that uses a fairly simple set of questions to place where you fit on the matrix.  As you can see, the different quadrants behave and look at things very differently.


    As an example, someone who is a high ‘D’ style (which fits a lot of entrepreneurs) tends to be very decisive and demanding and they are comfortable moving forward without all of the facts.  By contrast, someone who is a high ‘C’ style wants needs to have all of the details and take the time to process things.  If you put a high ‘D’ and a high ‘C’ in a room together, there are guaranteed to be issues unless one or both of them is willing to adapt their natural styles.

    What my Client learned

    Through this process, a few things really jumped out for my client and to his team.

    1. Not a balanced team:  A quick glance at the team analysis showed the business owner on the right side of the matrix (denoting a focus on people and the big picture)…and every other person on the team on the left side (denoting a focus on tasks and details).  The team works as it is for now, but they are missing some important perspectives.  Long term it would be best to have all of the quadrants covered by the employees…which may drive to some different priorities for the next new hire for this group.

    2. Need to address differences:  Because there is such a sharp difference in style between the business owner and all of the employees, it’s important for the owner and the employees to recognize those style differences and adjust accordingly.  As an example, the owner…true to his style…doesn’t focus on details in client meetings, so it’s critical that someone else is responsible for the appropriate documentation and follow-up for those clients.

    3. A chance to understand themselves:  The other big take-away for everyone was a great opportunity to do some introspection and understand their own behavioral style.  If you’re going to improve communications with others, the first thing you have to understand is your own natural tendencies.

    All in all, it was a very productive session and it’s going to give the entire team an ongoing opportunity to openly talk about how to be more effective and productive.  Check out this link if you’d like to learn more about Extended DISC.  If you’d be interested in doing this kind of session for your team – Contact Us and we’d be glad to talk about how this could help you in more detail.

    What’s your experience with assessments and using them to improve communications?  Have you used this approach before?  If so, what did you think?  We’d love to hear your thoughts in the comments below.

    Shawn Kinkade   Kansas City Business Coach

    09 Jul


    On Tuesday evening, July 10th, 2012, baseball fans around the world will watch the annual Midsummer Classic – the Major League Baseball All-Star Game. With Kansas City as the host city this year, it’s a tremendous time for people all across the entire region to stand a little taller, show your pride, and take ownership of the slogan the Royals organization has been chanting for months. “This is Our Time”.

    For the people of Kansas City this truly has been a time to showcase what makes our little part of world special. In the 40 years since Kansas City hosted an All-Star game a lot has changed, but for the most part, the heart of the people, what makes the Midwest a great place at it’s core, has remained unchanged. It has been inspiring to see how the entire metro area has rolled out the red carpet in preparation for this event. For anyone in the area, it really is a time to be proud.

    It is also pretty safe to predict that many businesses in Kansas City will set 5 day attendance records that may never again broken (unless one day we host the Superbowl…it is fun to dream!) That achievement alone is an All-Star accomplishment, but what would make a business an All-Star? What about your business? Is your business an All-Star?

    Webster’s defines…

    All-Stars: ….as…outstanding performers or participants.

    Business: …as…commercial or mercantile activity (producing) a means of livelihood

    So an “All-Star Business” would simply be an outstanding performing business producing a means of livelihood. Sounds simple enough, but the opportunity lies in uncovering how an “average business” makes that jump to “outstanding All-Star”?

    Could three Baseball Legends provide the key?

    Maybe…Let’s simply inject a business word twist on comments from three of the greatest baseball players in history; Hank Aaron, Babe Ruth, and Sandy Koufax. See what happens when you swap the underlined word with the business twist. Warning! Consistent execution of the results could create an All-Star Business.

    “My ability to fully focus on what I had to do on a daily basis made me the successful player (business owner) I was”    – Hank Aaron.

    The ability to focus and prioritize what’s really important definitely lies at the heart of long term success!  Do you and your team have a clear, consistent focus on what’s really important?

    The way a team plays (works together) as a whole determines its success.  You may have the greatest bunch of individual stars in the world, but if they don’t play (work) together, the club (business) won’t be worth a dime.  – Babe Ruth

    Many an entrepreneur learns this lesson the hard way.  It’s your passion and expertise that allows you to start the business, but if you don’t learn how to make it a team game and get everyone working together, you’re not going to get very far.  Are you using all of the strengths from every member of your team?  Is everyone on the same page?

    I became a good pitcher (business owner) when I stopped trying to make them miss the ball (talking) and started trying to make them hit it (listening).                     – Sandy Koufax

    It’s exhausting and not practical to force your will as a business owner onto every aspect of the business.  As the leader it’s your job to set the direction…and then listen to your team on the best way to make that happen.  Are you listening and engaging or commanding and controlling?

    So what do you think? How does your business align with these three ideals once you cast them in a business light? Are you on your way to becoming a Business All-Star?

    It is time for all us to say, “This is our Time!” and start creating more Business All-Stars!  We hope you have enjoyed the All-Star Events. Feel free to share any thoughts you have on this in the space below. Your comments are always welcome.

    Chris Steinlage        Kansas City Business Coach