We all want to make money. While we know that “money can’t buy happiness”, it’s a whole lot harder to be happy when you are struggling to get by. So, how do we make money? As a business owner, I have been forced to think about how money is earned – not only by me but by those in my organization. I concluded these are current three ways that money is generated within my small business.
Perform Billable Work. The first and simplest way to make money is simply to perform work that will be paid for by someone else. In the software industry, this means writing code. In other businesses, it means performing the work that defines the function of the organization. This is the most visible way to generate revenue. These are also the easiest to consider hiring as their efforts directly generate revenue.
Bring In New Customers. Organizations can only grow and thrive if new customers are coming onboard. The best software staff in the world can’t work if there’s no work to be done. While bringing in new customers doesn’t necessarily generate revenue, it fills the pipeline of billable work that is needed to keep a business moving forward. As these staff members don’t directly generate revenue, they are more appropriate to hire based on commission.
Free Up Time of Others. The third way to generate revenue within an organization is to enable others to accomplish their mission unimpeded. Secretaries, assistants, human resources, accounting, are examples of this. They perform work that frees others do to billable work. This is even more apparent in a small business. My personal assistant does all the little things that need done so I can focus on billable work. These staff members are the hardest to hire as they must be paid from the money generated by other staff. However, the time they free for billable staff can make them easily worth well beyond the salary they receive.
As an employee, where do you fit in within your organization? How much revenue do you generate for your organization? Is it directly or indirectly generated? If you know the answers to those questions, you can better understand your value within an organization.
As the new year begins, many of us will be making resolutions. “I’m quitting smoking” or “I’m going to the gym every day”. Typically, these resolutions don’t last into February. Why is that? Maybe it’s because we believe that, magically, just because the year changed our behaviors will change too. This year, instead of focusing on a resolution, why not set measurable goals for the year. For example, instead of a resolution that says “I’ll quit smoking”, you instead set a measurable goal such as “I am going to smoke two less cigarettes each month until I have quit this fall”.
Resolutions frustrate us because we see ourselves as failures when we mess up. When we want to quit smoking, after we’ve messed up once or twice, we abandon the resolution and continue with the old behavior. When we set goals instead, we innately recognize that we have a road to travel to reach our destination. We also acknowledge that there will be bumps along the way on the road to success. A setback today does not end our journey – it merely means we need to keep trying and working harder to reach our goals.
Where you find yourself next January will be determined by what you do this year. If you focus on resolutions, you’ll be in the same place next year with similar resolutions. If, instead, you focus on goals; you’ll start to see your life progress in the direction you want.
For entrepreneurs and business owners, trying to build something bigger than the individual poses one of the most challenging initial struggles a company can face. A brand is often represented by a figurehead, whether that be the owner, CEO, or majority shareholder. When the growth of the company is contingent on the amount of time an individual in this capacity can offer at an hourly rate, growth will by nature follow a specific linear pattern, before ultimately reaching a plateau.
In an effort to scale beyond this point, businesses can plan ahead to position and prepare themselves for the anticipated changes and challenges. Structuring the business model in such a way that money naturally flows into the business through multiple streams can create an ecosystem where each specific element supports other elements in different ways. In doing so, the business network can expand well beyond the individual, and the company can scale up to meet the goals necessary to attain sustainable growth and success.
While all of this sounds fantastic generally speaking, the task of specifically applying these principles to a business could seem daunting. Often, small business owners can fairly easily grasp the linear aspects of business growth. However, the road block often comes when the businesses are forced to think differently and realign their goals and focus. Sometimes the solution is both simple and effective. If your business has been struggling through a similar situation, I would strongly encourage you to take a look at your people. The people who are passionate about the work and mission of your company are the strongest agent of change for scalability. Take some time and consider their interests and skills, and invest in helping them find their best work!
If you’re an application developer, do you only know one language? If so, I would strongly urge you to learn additional languages. Mastery of every language isn’t necessary, but any decent developer should feel capable of writing code in several languages.
When my daughter was young, she once complained to me about how one of my decisions wasn’t fair. I don’t remember what she asked for anymore, but I do remember my response. I told my daughter she should be thankful that life isn’t fair. Look around the world today and you see children starving in underdeveloped parts of the world, people being oppressed by cruel leaders, people suffering from lifelong disabilities, and all kinds of other suffering. Yet here, in America, we enjoy an incredibly high standard of living. Few of us die of starvation, we have a democratically elected system of government, and we have some of the best healthcare services in the world. I am thankful every single day that I have been blessed so greatly.
How does this apply to technology and business? As I run my business, I see how fortunate I am. I see that I am well paid, that I have freedom to enjoy life, and that I am the master of my own destiny. As I look around, I see that few others have that freedom. Even among the greatest nation on earth, I am among the most fortunate of people. As such, I have a moral obligation to make the world around me a better place. I am compelled to improve the community I live in, to better the lives of those around me, and to work to empower those I work with. I’m thankful life isn’t fair because it gives me an opportunity to make the world a better place. It gives my life purpose and meaning.
Making the world a better place should be part of the mission of every company out there. Is your business empowering employees? Are you making your community a better place to live? Are you serving more than your own pecuniary interest? Can you sleep at night with the decisions that you and your business make on a daily basis?
When we all work together, we can make the world a fairer place for all. We can work to ameliorate suffering and starvation. We can improve healthcare around the globe. Maybe, someday, the world will be a fairer place. Until then, each one of us – business and individual alike – has work to do.
It’s often said that “great minds think alike.” It sounds great, in theory. But is it really true? Just because I’m thinking the same thing someone else is, does that really mean we’re both great minds? I hardly think so. It’s not the employee who thinks the same as everyone else that brings value to the team, it’s the free thinker who has a different perspective. In the boardroom, when everyone thinks the same, we call it groupthink. Psychology Today says “In a groupthink situation, group members refrain from expressing doubts, judgments or disagreement with the consensus and ignore any ethical or moral consequences of any group decision that furthers their cause.” This hardly seems beneficial to the team. When I think of great minds, I think of the men and women who engaged in thought well outside the mainstream – brilliant men like Isaac Newton, Albert Einstein, Stephen Hawking, and Benjamin Franklin. If you want to be a great mind, think for yourself! Don’t let the people around you define your thought. Be willing to take risks and think outside the box. It’s those people who history remembers – not the people who think like everyone else.
A subject that repeatedly comes up on websites, blogs, and conversations is which language is the most popular and which ones are the best to learn for future job opportunities. I keep an eye on this list myself as it’s important to understand trends within the software industry. However, people seem to ignore the most important aspect of language popularity – the context.
So what about Python? Everywhere you look, you see that Python is at the top of the list. Should we all switch to Python? Not really. What all those rankings fail to point out is the user base for Python. Certainly there are all kinds of production projects out there running Python. But if you look around, you see that Python’s popularity is largely caused by people outside the traditional developer community. AI researchers, academics, data scientists, system administrators, makers, etc. For non-programmers, Python is easy and incredibly powerful. But that hardly makes Python superior to other languages nor does it suggest that professional programmers should start porting their eCommerce sites.
Remember, while rankings of popularity may help you see trends, look to the underlying reasons. Why is it popular? Who is it popular with? Does this language look poised to overtake in other realms? When picking a language for a problem, the most important question is which language solves the problem best – not which language is the most popular.
During the last year, countless tech leaders have talked about the danger that artificial intelligence could pose in the future. Like most people, I laughed at them. After all, do I really think that The Terminator or The Matrix were prophetic? Hardly. But the more I read and the more I pondered it myself, the more concerned I became. Now, I wonder if there’s any way to prevent it from happening at all.
Is it really reasonable to think AI could take over the world? Do we really think code will be so poorly written and that software testers will be so incompetent as to let AI robots kill humanity? Unfortunately, I do. Not intentionally, of course, but bad code that wasn’t properly tested will make it into the wild on robots. Consider all the system updates that have been performed on your computer or your cell phone. Think about all the app updates that happen every single day. Consider all the one star reviews for apps on the mobile stores. AI will be no different.
Consider all the potential causes of AI issues. Developer errors, inadequate testing, corporate release requirements, poorly defined ethics, unforeseen events, etc. Each one of these issues could cause AI to perform in ways it was not intended with potentially catastrophic consequences. Consider government AI being developed by the lowest bidder – wow, that’s scary.
The more I think about that, the more certain I become that AI will eventually cause huge problems to the world. As such, it’s imperative that we – the tech community – consider the limits of AI – not in regards to technology, but rather in regards to safety and security. Do we want AI police officers or soldiers? That sounds dangerous. Could Russian hackers embed “Order 66” into our own robot army? Do we trust robots with firearms to make the appropriate decision in a life-or-death situation?
My intent is not to sound like an alarmist, but rather to begin thinking about the issues now. If not, we may find it’s too late to do so later.
Yesterday, I took the Myers–Briggs personality test online. I’ve done this many times in the past, and I always come up INTJ – “The Architect”. This is a great personality type to be – listed as being imaginative and strategic, independent and decisive, hard working and determined, and having high self confidence. But as I began my journey into entrepreneurship, I realized that being an introvert wasn’t such a great idea. So, I decided to work to change myself to be more extraverted. After all, if I can’t comfortably talk to people and sell my services to clients, it’s going to be difficult to run my own small business selling software services. To make this change, I started reading books a year ago on small talk, communicating in social settings, and similar skills needed to be an extravert. I also read books on sales and leadership. After all, being an extravert isn’t going to get me far if I can’t sell myself or if I can’t project myself as being a leader in both business and software development. So, when I took the personality test yesterday, I was pleased to see that I have changed to ENFJ. Not only have I become more extraverted, but I have learned to rely more on my feelings instead of just logic. As a software engineer, that’s tough, but the world of people is rarely a world of logic – it’s a world of feelings. If you can’t relate to someone on that level, logic won’t get you very far. Now, instead of being “The Architect” I’m “The Protagonist”.
Are you growing and changing? Is You 2.0 going to be better than you are today? What are you doing to get where you’re going? Are you willing to work to change the most basic elements of your own self to move your life in the direction you want?
On Tuesday, my daughter and I embarked on an epic rail journey from Anaheim, California to Altoona, Pennsylvania. As I write this, I’m sitting in the lounge at the Chicago Amtrak station. Tomorrow, after another two trains, I’ll finally arrive home.
Anybody who knows me knows I love to travel by rail. While air travel is fast, it’s rarely fun. Rail is the opposite – much slower, but generally an enjoyable experience. One of the best parts of the train is the dining car. Not only is the food good, but due to the limited seating, you end up sitting with strangers. This is always a great way for real social networking. Tuesday night, my daughter and I sat with a couple retired from John Deere. He worked in the factory, and she spent years working in HR and in training other divisions. She was also a frequent traveler to Europe. The next day, I shared a meal with an outspoken Trump supporter and handwriting analysis export, a rail advocate and teacher, and a man who inherited land in the deserts of California. This morning, I shared breakfast with a pastor and his wife from Minnesota who work with troubled inner-city kids.
Unlike Facebook, Twitter, and other so-called ‘social network’ sites, riding the rails gives me an opportunity to share a meal with people across the country. People who are from different states, with different political views, different religious views, and every other difference imaginable. And, unlike social networking sites, discussions are typically cordial and enjoyable. I get to interact with people as people – not as a digital persona. I get to see them as a human – not as a highly curated avatar. These experiences are what real social networking should be about – not an anti-social experience behind a computer screen.
Today, instead of interacting with people on a computer, why not invite a friend for coffee, have dinner with your neighbor, or invite a coworker over for a burger. You’ll find the social interaction far more rewarding than Facebook.