Monday, February 25, 2019

business

business


Successful Business People: The 4 Things They Avoid - Forbes

Posted: 25 Feb 2019 04:30 PM PST

While executives are always worried about how to make more sales, there is something even more critical to business success. These four skills could make you question your business strategy going forward…

Successful business people share four similar traitsPixabay

I've seen behind the curtain of multiple successful companies. I can tell you for 100% certain that business success doesn't come from one specific thing. It's more a result of a few behaviors all combined together. Business success can also come from things that you don't do.

Think of business success like a recipe for a cake. You can't use too much flour, eggs, sugar, butter or heat. If you do, the entire cake can be ruined.

Here are four things that every successful business person avoids:

1. Taking Too Long To Act

You'll never see a successful business person over-dwelling on a new idea. They make sure that their Time To Implement (TTI) is very low. This applies even more when they learn something new that could grow their business.

They'll happily release a new imperfect idea, without fear. If it gets a good response, then they take the time to sharpen it up and make it perfect.

The key is to still think about what needs doing but act quickly and have a low TTI. They get feedback from the market on all ideas, as quickly as possible. Then they drop the losers and perfect the winning ideas.

2. Rely On Gut Instinct alone

Let's be honest – our gut stinks.

Successful business people never rely on gut instinct and feelings, alone. In addition, they also use metrics. Analytics. Feedback. Customer surveys, and face-face meetings.

One really smart CEO I know, calls his customers every 90 days (many of his people think this is a waste time for a CEO). He asks about his customers' problems, new potential interests, further applications of his product and how it can help them solve their issues better. Then he quickly gets to work (see rule number 1).

His industry has a customer drop off rate, of 3 years. However, he has only lost 1 customer in the last 9 years (because that customer went out of business).

3. Seeing Failure As A Loss

Successful business people expect to fail. It's part of the plan. In fact, they put a value on each failure.

For example, let's say a software sales person makes 1 sale for every 5 prospects they speak with. Each sale is worth $10,000. So, you could say each call is worth $2,000.

That way, the outcome of a call can be a sale or no sale. But they know in theory, they just made another $2,000 with that call. This way, successful business people never see their short-term failure as a long-term loss.

4. Cutting Out Experimenting

Successful business people never leave things ticking along without squeezing all power out, first. For example, if a sales page can possibly make more sales, they will experiment with messaging, product positioning, price, offers etc until they squeeze the most efficiency out of that sales page.

Maximizing efficiency like this is exactly how new companies win today.

That's how Netflix beat Blockbuster. It's how Facebook beat Google+. It's how Google swamped Yahoo. It's how Airbnb is overtaking the hotel industry. It's what Dropbox uses to maximize revenue.

I've seen companies 6X their revenue with experimenting this way.

How will you avoid these four things to make your business successful?

______

Follow Michael on Twitter and Facebook

 

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GE shares surge after Danaher agrees to buy biopharma business for $21.4 billion - CNBC

Posted: 25 Feb 2019 04:02 AM PST

Danaher will buy the biopharmaceutical business of General Electric in a $21.4 billion deal, the companies announced Monday.

The deal will see Danaher pay $21 billion in cash, as well as assume certain GE pension liabilities.

The GE Life Sciences unit will join Danaher's Life Science as a stand-alone business. The GE biopharma unit is expected to generate about $3.2 billion in revenue this year. Danaher expects the deal to be complete by the fourth quarter.

GE shares traded as high as $11.75 a share in early trading before shedding some gains to close up 6.4 percent at $10.82 a share. Danaher's stock also jumped 8.5 percent to close at $123.15 a share.

"We are focused on completing the carve out [of the biopharma business] – which is 15 percent of the $20 billion healthcare segment – and focused on managing the remaining core business," GE Chairman and CEO Larry Culp told CNBC's Morgan Brennan.

Cowen Research said in a note to investors that this deal came at "a rich valuation that goes a long way towards GE's debt reduction."

"Sale of biopharma a positive," Credit Suisse said in a note. "Under CEO Culp, GE has been accelerating its strategy to strengthen and deleverage the balance sheet."

Additionally, GE announced plans to provide shareholders with its 2019 forecast on March 14.

Culp told CNBC that GE decided to break up the Life Sciences unit as the biopharma business is distinct from the pharmaceutical diagnostics business.

"IPO of healthcare was Plan A – but we got lots of inbound calls about this business and this is clearly a superior path," Culp told CNBC's David Faber.

Culp, who led Danaher for more than a decade, joined GE's board last February. Danaher approached GE with interest in acquiring the Life Sciences business last April, The Wall Street Journal reported, but GE did not pursue a deal. At the time, GE Chief Financial Officer Jamie Miller said GE had been attracting interest on some of its business units but was "looking to do deals that are smart for the company."

Under Culp, Danaher built its Life Sciences business into a major asset, which is now worth $6.5 billion. Culp was made GE Chairman and CEO in October, after GE's board of directors became frustrated with the pace of changes under former CEO John Flannery.

The deal's inclusion of some GE pension liabilities will be welcome news to investors. GE has hundreds of thousands of former and current employees covered by pension plans. At the end of 2018, pensions represented $21 billion of GE's $55 billion in industrial debt.

"We have too much debt," Culp said.

GE also on Monday closed the merger of its transportation business with Wabtec. GE received $2.9 billion in cash for the merger.

Oscar Loser Wins Big Next Day With $21.4 Billion Acquisition Of GE’s Biopharma Business - Forbes

Posted: 25 Feb 2019 01:11 PM PST

91st Oscars - Oscar Week: Animated Features

91st Oscars - Oscar Week: Animated FeaturesGetty Images

Billionaire Steven Rales, who co-produced Wes Anderson's latest animated movie Isle of Dogs, walked away empty handed from Sunday night's Academy Awards ceremony. Hours after losing the esteemed golden statue to Spider-Man: Into The Spider Verse, however, Rales emerged as a big winner.

Danaher, the science and technology conglomerate Steven and his brother Mitchell Rales cofounded in 1981, announced early on Monday morning at 7 a.m. that it will acquire GE's biopharma business for $21.4 billion in cash. The conglomerate's stock price surged nearly 9% on Monday morning, pushing their fortune up by $400 million to an estimated $10.5 billion each by noon. The media-shy brothers own a combined 7% stake in Danaher. 

The Rales duo, who did not respond to a request for comment, were first profiled in Forbes back in 1985. The article, titled "Raiders in Short Pants", focused on the brothers' ambitious investment plans and their relative youth. "Next thing you know, children will be doing it. Playing the takeover game, that is. Steven Rales and his brother Mitchell aren't exactly kids, but, at 34 and 29, respectively, they might as well be," late Forbes reporter Lisa Gubernick wrote.

Born and raised in Washington, D.C., Steven and Mitchell Rales quit their father's real estate development firm to found their own business, Equity Group Holdings, in 1979. The brothers made their first manufacturing acquisition in 1981 and bought the Weatherford, Texas-based siding company Master Shield for $5.3 million when they were just 30 and 25 years old.

The modest vinyl siding business was just a start for the brothers. Two years later, they bought a struggling REIT that hadn't reported a profit since 1975. They renamed the REIT "Danaher" a year later, after a Montana stream where the brothers once caught a lot of trout. The near-bankrupt REIT served as their tax shelter while they pursued acquisitions across multiple sectors; from tires to aluminum products. "We come from a real estate background," Steven told Forbes in 1985, "and understand how tax losses can be good for cash flow."

The Rales brothers were not wrong. In spite of the skeptics (including Forbes, which dubbed the brothers "cocky to the point of foolishness" and "callow" in 1985), the duo managed to turn Danaher into a $19.9 billion (2018 revenue) industrial conglomerate. They spun off Fortive, a diversified industrial firm active in areas such as high-tech equipment and software, from Danaher in 2016. Independent of Danaher, Fortive—where the Rales have a combined 9% stake—pulled in $6.5 billion in sales in 2018.

Since the Rales cofounded Danaher, they have both served as chairmen; Mitchell has also served on the executive committee while Steven sits on the board. Outside of the business, they are also busy. Mitchell Rales established the Glenstone Museum with his wife Emily in 2006. Forbes estimates that the couple have donated more than $1 billion in art to Glenstone, which sits on more than 200 acres outside Washington, D.C. and exhibits a major portion of the Rales' collection as well as temporary artists such as de Kooning and Pollock. In October 2018, Glenstone opened Pavilions, a new 204,000 square foot extension. Steven, on the other hand, has his own production company and has co-produced multiple Wes Anderson films including Moonrise Kingdom and The Grand Budapest Hotel, according to IMDb, as well as Isle of Dogs.

One can only expect the Rales to breathe a sigh of relief in light of today's multibillion-dollar deal. In October, the Wall Street Journal reported for the first time that the conglomerate had its eye on GE's biopharma business. Although GE reportedly decided not to pursue a deal at the time, Danaher closed on about $2 billion in acquisitions in 2018, mostly expanding in molecular biology. Through its acquisition of GE Biopharma, the conglomerate—whose Life Sciences segment reported a turnover of $6.4 billion in 2018— is expected to add approximately $3.2 billion to its 2019 revenue, according to a statement from Danaher issued Monday morning.

"In the long run, this certainly seems like a good move for Danaher," said Kevin Huang, an analyst at CFRA Research. "The acquisition eliminates a major competitor and widens Danaher's economic moat in one of its higher growth segments."

Durant prepares for Small Business Revolution winner to be revealed - KXII-TV

Posted: 25 Feb 2019 04:34 PM PST

DURANT, Okla. (KXII) - The winner for the online streaming show The Small Business Revolution is set to be announced Tuesday.

Durant will be hosting a watch party at the Choctaw event center starting at 6 p.m. The event will have live music and food.

Durant says regardless of whether they win they will have an after party celebrating what they have accomplished. The after party will be at the Old Ice House Beer Garden at 7:30 p.m.

The winning town will receive $500,000 that will be spent on marketing and physical makeovers for Durant businesses, plus another half million dollars work of services from the non-profit economic development firm REI.

Clarity: The Secret Weapon to Experiencing Explosive Business Growth - Entrepreneur

Posted: 25 Feb 2019 04:30 AM PST

Clarity provides the power to build relationships and achieve goals.

5 min read

Opinions expressed by Entrepreneur contributors are their own.

It's the middle of the night and you have to use the restroom. It's pitch dark when you get up. You know your bedroom but navigating in the darkness you stub your toe and are using choice language to describe how frustrated you are. Just a few seconds in the darkness affected your path to successfully accomplishing your middle-of-the-night goal.

It works the same way in our lives and business. That "darkness" takes a different form but it has the same effect. We "stub our toes" in many different ways when we lack clarity. If your business is not achieving explosive growth right now, it's more than likely that your lack of clarity is the culprit.

There are many factors and parts to growing a business but not being clear is the cause. If you're going to make this a year of reaching new milestones, make sure you have clarity in these three areas of your business.

1. Get clear on why you're building a business.

The idea behind entrepreneurship is appealing. You can be your own boss and set your schedule. You can generate an income doing what you enjoy doing. So, you start a business but you may not have a major why behind the business.

You look for what will make money and then get to work. After a while, things just don't seem to be working the way you'd hoped. There was no why driving the business. That lack of clarity leads to you building a job. Your business should be started and built around a topic and mission you're passionate about.

The why is your road map and the fuel to help you keep driving towards your goals. Even if you have been in business for a while, it's important to take a step back and reconnect with your why. Get very clear on the overall strategy and not so much the tactics. With a clear main strategy, the tactical everyday pieces are easier to implement.

Related: Clarity on Your Goals Is Key to Growing a Business That Attracts High-End Clients

2. Get clear on whom your business caters to and how you speak to your customers.

You've read more than a few articles about the need to find your niche and for good reason. You can't reach everyone and you shouldn't try. You need clarity in who your business helps and what it helps them do. A passion for wellness and desire to teach people how to be healthier is too broad. You can niche down and teach people how to use food as fuel. It works the same way with all topics.

When you have the clarity of the niche audience you're targeting, you can find where they are and the best way to reach them. You can talk to them in their language and use the messaging they understand and respond to. The more you reach them and speak with the specifics of that tribe, the more your business will grow. Even in your free content, you should be demonstrating that clarity and speaking to your niche.

If you look at big brands and companies, you'll notice how they cater to their specific target customer base. It's the reason high-end brands don't have sales -- that's not what their target customers expect or respond to.

Related: Find Clarity About Your Life's Purpose With This Simple Exercise

3. Get clear on where this is all going. 

In the same vein as getting clarity on your why, you should be clear on where you're heading in your life and business -- they work hand-in-hand. If you don't have clarity in your life goals, it will be hard to focus on building your business. You started and are building a business to create freedom and financial security in your life.

What does your dream life look like? What would an ideal day look like if money were no object? Let your mind visualize where this is all going. To get anywhere, you have to see what the destination looks like. Take some time today to get clear. If you have that clarity, take some time to reconnect with the vision.

Clarity is power. You can help you build successful relationships, goals, wealth, and your dream business. When there are 100 things to do, our focus tends to be on what needs to get done. Change your mindset. Think like a leader. Get clarity on the strategy and how it all connects together. Then, map out the tactics and take action. You can experience explosive growth once you get clear.

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