Career Development

Let the Buddha Help You Appreciate the Role of Questions in Inquiry

March 19, 2020 By Nagesh Belludi Leave a Comment

The Athenian philosopher Socrates used a dialogic teaching method, now known as “Socratic Questioning.”

Socrates famously observed, “I know one thing, that I know nothing.” He habitually posed of ignorance even though he knew more about any subject matter than he let on. He led his pupils through a sequence of questions—not to test or assess them, but to draw out their “tacit knowledge.” According to Plato, Socrates assumed that a pupil already possesses the knowledge or the understanding, but is not aware of this until a skillful teacher can help the pupil draw it out of himself using leading questions.

Buddha and Socrates: Appreciate the Role of Questions in Inquiry In his dialogues, Socrates imparted no information about the subject of inquiry, but systematically asked questions. By responding to Socrates’s teased-out line of thinking, the pupils eventually arrived at the desired knowledge.

The Buddha’s Socratic Questioning Technique

Discoursing about finding cognizance through systematic inquiry, the Zen priest and poet Norman Fischer explains how the Buddha, like Socrates, used questions to help his disciples reveal the truth:

Buddha talked not because he was particularly loquacious, or because he was given to elaborate explanations, but in order to help people see through the smoke screen of their own language and views. Once someone asked him for his secret in answering questions as effectively as he did. He said that he had four ways of answering questions.

One way was categorically—just to say yes or no without ambiguity.

The second way was to examine the question analytically, clarifying definitions and trying to determine what was actually being said, usually by deconstructing it. Most of the time when the Buddha employed this method there was no need to answer the question: under analysis the question proved meaningless.

The third way was by posing a counterquestion, the purpose of which was to bring the questioner back to his or her own mind, redirecting attention away from the entanglement of the language of the question to something real that stood behind it.

The fourth way was simply to put the question aside, knowing that some questions are so hopelessly entangled that to take them up at all means beating your head against a wall—there is no end to it and you end up with a bloody head. To put the question aside is simply to walk around the wall. This way you can get to the other side without beating your head bloody. So sometimes the Buddha’s response to a question was silence.

Idea for Impact: Rational Inquiry is Driven by Questions

Become skilled at how to facilitate critical thinking with the Socratic Questioning technique. I recommend Richard Paul and Linda Elder’s excellent The Thinker’s Guide to the Art of Socratic Questioning (2006; excerpt.) Here’s a handy primer on the nine types of Socratic Questions.

With patience and loving-kindness, ask questions in such a way that can skillfully lead your interlocutors to a better understanding of themselves. Help them cross-examine and uncover the inconsistencies and errors of their thinking, and even change their mind—all without arguing with them.

You can also use Socratic Questioning for self-reflection, which in itself is a rhetorical device to discover the true self. Engage yourself in contemplation not to judge your past choices, but to ponder on them, learn from them, and make whatever changes you believe are right for you in the here and now.

How to Develop a Vision for Year 2020

January 2, 2020 By Nagesh Belludi Leave a Comment

Four Rules for Priority-Setting

As you think about what you want to achieve in the New Year, consider these four rules for priority-setting laid down by the original management guru Peter Drucker in his seminal The Effective Executive (1966; my summary):

Courage rather than analysis dictates the truly important rules for identifying priorities:

Pick the future as against the past;

Focus on opportunity rather than on problems;

Choose your own direction—rather than climb on the bandwagon; and

Aim high, aim for something that will make a difference, rather than for something that is “safe” and easy to do.

How to Develop a Vision for 2020?

Four Rules for Priority-Setting The first thing to do before thinking too far ahead in the future is to identify what success really means to you. Ask yourself, “It’s 31-Dec-2020 and the year 2020 is almost over. I am getting ready to celebrate the turn of the year with a tremendous sense of accomplishment. What have I achieved?”

Visualize a year 2020 wherein everything has turned out the way you’ve wanted. You have given it your best, worked your hardest, and achieved all your goals. Now write down what you imagine.

Take the time to think through and develop a clear picture of where you want yourself and your work- and personal lives to be in three months, six months, and one year.

This exercise is generally effective at helping folks differentiate between tasks that simply feel urgent or top-of-mind from those that are truly important.

Idea for Impact: Getting clear on your vision will help you create a path that feels the most meaningful, stimulating, and fulfilling to you.

Some Lessons Can Only Be Learned in the School of Life

November 19, 2019 By Nagesh Belludi Leave a Comment

How Anil Ambani Learned the Ropes of Doing Business in India

In the Fall of 1982, Anil Ambani, scion of one of India’s wealthiest family, returned home to Mumbai, then Bombay, after attending the University of Pennsylvania’s Wharton School.

Anil had fast-tracked through his two-year MBA program in less than 15 months.

He met up with his father Dhirubhai Ambani and announced, “Look, Dad, I’ve become an MBA, and I’m going to take a break since I worked hard. I will see you in the New Year.”

Dhirubhai asked, “I am very happy and delighted that you accomplished this. Since I did not go to any formal school or college, I do not have any degree, why don’t you tell me, from your learning at Wharton, what does an MBA stand for?”

Anil Dhirubhai Ambani - MBA from the School of Life

Smug and self-satisfied, Anil replied, “That’s simple. Master of Business Administration.”

Dhirubhai countered, “An MBA represents Manē Badhā Āvō che,” (Gujarati for “I am know all.”) He explained,

You are entering India, and you need to Indianize your MBA … at Wharton School, did they teach you about customs duties, excise duties, income tax, sales tax, Parliament?

Do you know about a zero-hour question, a call-attention motion, and the difference between a starred question and an unstarred question in the Indian Parliament?

If you don’t get to know all these things, let me assure you, all your formal education is not going to help you. You need your practical Indian MBA. And I am going to create that learning environment for you so that you can get the exposure.

A formal education doesn’t necessarily teach you everything about how to navigate the real world

Dhirubhai Ambani, the prototypical crony capitalist that he was, was highlighting the importance of learning the ways and means of doing business in pre-liberalization India.

One must note that Ambani’s extraordinary rags-to-riches story was a blend of cunning, street smartness, audacious risk-taking, and an unparalleled knack for bending the rules through powerful politicians and bureaucrats. As controversial as he was, Ambani must be understood in the socio-political context of India’s post-Independence industrial milieu. He artfully exploited the opportunities those times offered.

Idea for Impact: Formal education cannot complete the kind of real-world operative skills that you need

If you’re truly serious in your desire to get ahead in business, you will need a broader grasp of your chosen discipline than you can get from formal education.

Look, listen, learn. Every industry, company, organization, and team has its own culture. Spend time observing the winners: what does success look like? Who holds power, and how are they persuaded? What are the traits of people who get ahead? Emphasize developing skills in line with the winners.
Develop a network of people who can potentially lend a hand or bail you out of a jam. Invest in the people who will listen to your ideas and support your ambitions. Get to know peers at all levels to build a support base. Any person may have the knowledge and the allegiances that they can put to work for you if they’re so inclined.
Discover how to make the most of the circumstances you’re dealt with. Don’t manipulate others for your own devices in a Machiavellian sense—although, occasionally, you may need to use duplicity for respectable purposes, i.e. where certain ends can justify certain means.

Remember, the political payoff for fostering and nurturing relationships, and for developing a vast reservoir of skills and experiences, may take months, years, or even decades.

Going Over Your Boss’s Head After She Rejects Your Idea?

October 29, 2019 By Nagesh Belludi Leave a Comment

Going Over Your Boss's Head After She Rejects Your Idea? If you’re terrified by the prospect of going over your boss’s head to pursue an idea after she’s rejected it, consider the following steps.

First, have an in-depth conversation with your boss to make sure that you’re not misreading the circumstances of getting rejected. Your boss may well have a good reason for her decision.

Ask your boss what’s lacking in your proposals.

Is your idea solid enough, but lacking the right support products or services to go with it? Is it feasible to implement? Will it divert valuable attention away from other initiatives?
Does your idea actually enhance the customer’s experience? Have you explained how your idea translates to the bottom line?
Do you lack credibility? Have you previously blown an assignment? Do you need to rebuild leadership’s trust in you before pitching your idea again?
Have you prototyped your idea? Have you tested your idea on others? Do you have data confirming your idea’s feasibility? Are you disclosing all underlying issues and potential challenges that will have to be attended?

Address the above concerns, rework your idea, strengthen your proposal, and pitch it to your boss again. Consider meeting with your peers and your managers’ peers to build some grassroots support (management consulting firm McKinsey calls this “pre-wiring”) for your idea.

If your boss rejects your idea again, handle your boss’s negative response by reiterating that you respect her judgment, but would like a go-ahead to take the idea further. Your boss may surprise you with a green light.

Think twice before stepping outside the chain of command and talking to your boss’s boss about something on your mind.

The Truth About Work-Life Balance

September 17, 2019 By Nagesh Belludi Leave a Comment

Bill Gates still doesn’t believe in taking breaks

This recent Bill Gates interview got a great deal of attention for what he considers his biggest regret—not working harder, and taking his eyes off the ball and allowing Google to develop Android, now the dominant phone operating system, which, according to Gates, “was a natural thing for Microsoft to win.”

Asked about work-life balance and if Gates’s opinions had changed from a past statement that he did not believe in holidays, Gates replied with a no. He reiterated that working without a vacation is one of the sacrifices a company has to make in its early years.

The vacation-free approach in Microsoft’s early years is legendary. In the memoir Idea Man (2011,) co-founder Paul Allen recalled,

Microsoft was a high-stress environment because Bill drove others as hard as he drove himself.

Bob Greenberg, a Harvard classmate of Bill’s whom we’d hired, once put in 81 hours in four days, Monday through Thursday. … When Bill touched base toward the end of Bob’s marathon, he asked him, “What are you working on tomorrow?”

Bob said, “I was planning to take the day off.”

And Bill said, “Why would you want to do that?” He genuinely couldn’t understand it; he never seemed to need to recharge.

In a 2016 interview for BBC’s The Desert Island Discs program, Gates revealed that he was so obsessed during the early years of Microsoft that he couldn’t help but keep tabs on which Microsoft troopers stayed vigilant along the frontlines and which ones had retired home for the night. “I knew everyone’s license plate so I could look out in the parking lot and see when did people come in, when were they leaving.”

For most overworked and overwhelmed people, life’s great tipping point is the moment they realize something’s got to give

The Truth About Work-Life Balance Hear any successful executive talk about work-life balance and you’ll recognize a pattern—they had an epiphany about the need for work-life balance. They were totally driven and single-minded for a long time, had difficulties in their personal life, and ultimately realized that they needed to have more balance in their life.

While this always makes for a stimulating narrative, the one aspect that is less emphasized is how much of their success was a direct outcome of single-minded focus. The truth is, most workaholics are successful.

Balance is Bunk: You can’t have everything—even if you work really, really hard

Some things are tough hard, and require an absolute commitment and high-level performance for sustained periods. Achieving distinction in any field requires extreme dedication, drive, and commitment to success—this is true of scholarship, business, art, music, sport, or parenting.

While it’s nice to extol the virtues of work-life balance, it must be acknowledged that balancing personal life with a career will inevitably lead to forgoing some advancement in the latter. Balance is sometimes about choosing between the two and setting priorities—it’s not just a matter of juggling on the way to “having it all.” This “balance” is something that each person has to decide for himself/herself.

Fire Fast—It’s Heartless to Hang on to Bad Employees

August 27, 2019 By Nagesh Belludi Leave a Comment

Firing is About an Underlying Commitment to Retaining Great People

The former General Electric leader Jack Welch earned the moniker “Neutron Jack” for sacking some 100,000 employees in the early years of his tenure as chief executive. Welch defended the dismissals by emphasizing that it would have been far more heartless to keep those employees and lay them off later when they had little chance of reinventing their careers. The dismissals were part of his deliberate efforts to establish a corporate culture that emphasized honest feedback and where only the “A players” got to stay.

Many Fired Employees Feel Surprised That the Axe Didn’t Fall Sooner

Fire Fast---It's Heartless to Hang on to Bad Employees Managers know that ending a bad fit sooner is better than doing it later. Firing a bad employee is often better for both the employee leaving and the employees remaining.

Then again, many managers hesitate because firing is awfully difficult. No one likes to fire people. Looking an employee straight in the eye and telling he’ll no longer have a job is one of the harshest things a manager will ever have to do.

Besides, some managers are so uncomfortable with conflict that they are unwilling to deal directly and honestly with a problem employee, not to mention of confronting the risk of a wrongful termination claim.

If an Employee is Not Working out for You, Fire Fast

By holding on to a bad employee, you are really doing a disservice to the employee. Forcing a person to be something he’s are not, and giving him the same corrective feedback—week after week and quarter after quarter—is neither sustainable nor considerate. Trying to keep the employee in the wrong role prevents his personal and professional evolution.

Give the employee a chance to turn the situation around—people can change.
Try to find him an appropriate role within your company. Recall the old Zen poem,

Faults and delusions
Are not to be got rid of
Just blindly.
Look at the astringent persimmons!
They turn into the sweet dried ones.

However, if the employee is a truly bad fit, reassigning him just shifts the problem to a different part of the company.
If your efforts to remediate a bad employee haven’t worked out, cut your losses and fire him promptly. Help the employee move on to a job or a company where the fit is much better.

Idea for Impact: It is much worse to retain someone who is not suited for his job than it is to fire him. Help him find a new role quickly and land on his feet.

Could Limiting Social Media Reduce Your Anxiety About Work?

July 15, 2019 By Nagesh Belludi Leave a Comment

In a recent article on “Facebook envy,” I wrote about how looking at the carefully curated lives of others on social media can provoke insecurities about one’s own accomplishments—or lack thereof.

In response, a blog reader directed me to journalist Keith Breene’s writeup about a study on why millennials aren’t happy at work. Here’s a précis:

Much of the stress and anxiety reported by twenty-somethings is caused by ruthless comparison with peers. Emerson Csorba, director of the consultancy Gen Y, reported one millennial describing the challenge like this: “If we are not doing something exceptional or don’t feel important and fulfilled for what we are doing, we have a hard time.”

Where is the pressure coming from? With millennials more connected than any previous generation, opportunities to compare levels of success are ubiquitous, creating anxiety and insecurity. The accomplishments of peers, shown on social media, are a constant prompt to examine millennials’ own successes or failures. The problem is made much worse by the fact that only positive achievements are posted—you only ever see the good stuff.

Even though everyone knows that social media is a kind of PR feed of people’s lives, when you spend so much time online, these messages can easily become overpowering.

Idea for Impact: Resist the Envious Consequence of Social Media

Everyone’s lives are far from perfect, notwithstanding the dreamy pictures they’re posting on social media.

Protect yourself and your own internal goodness from self-sabotage. Rejoice in your real accomplishments without needing to show off to anyone else or seek external validation. Care less for what other people think.

Life isn’t a competition. There isn’t a race to the finish lines.

Furthermore, making others envious should never be a motivation for curating your social media posts. Nothing good comes from trying to be the envy of others.

Don’t Use Personality Assessments to Sort the Talented from the Less Talented

October 25, 2018 By Nagesh Belludi Leave a Comment

Personality assessments have featured in personality development and career counseling for almost a century. Myers-Briggs Type Indicator (MBTI) and other aptitude tests form the basis for helping people deal with conflict, understand team interplay, outline career search, sharpen decision-making skills, and cope with stress.

Personality Assessments Cannot Predict Performance

Even as their use has grown significantly over the last two decades, personality assessments—including strengths inventories, and emotional intelligence assessments—have been criticized at length:

An individual’s personality cannot be summed up by a personality assessment. Individuality is described best by continuous (not discrete), normally-distributed attributes. For example, the MBTI Step I classification of individuals into 16 categories (or 4 dichotomies from Carl Jung’s book Psychological Types (1921)) does not encapsulate the full range of personality variance.
An individual’s behavior cannot be limited to one side of a dichotomy. For instance, every person can be outgoing and assertive in the external world (extraversion,) while requiring time for some contemplation (introversion).
Many academic studies question the tests’ predictive validity and poor reliability. Moreover, personality assessments have poor test-retest consistency. Test takers have been shown to change at least one dichotomy when they take the MBTI Step I survey a second time.
Personality assessments can initiate confirmation bias (“Barnum Effect”)—the test scores are self-fulfilling because people tend to behave in ways that are predicted for them. In other words, a person who learns that he or she is “outgoing” according to MBTI may behave that way.
Personality tests are decidedly fakeable, especially when used to evaluate future career opportunities. All personality assessments are contingent on a degree of honesty, but MBTI test-takers are often motivated to match up to extraverted, sensing, thinking, and judging (ESTJ) proclivities in the modern organization.
Assessments are regularly offered as universally applicable. Not only do they tend to mirror the biases of the test developers, but also they are skewed in preference of the social groups the developer studied.

Personality Assessments are Starting Points for Change, Not a Predictor of the Outcome

Academics have long acknowledged the previously mentioned criticisms of personality assessments. They’ve argued fruitfully that many of the criticisms should be directed to how HR practitioners understand personality tests and use them in the development arena.

MBTI and many other personality assessments were never intended to sort the talented from the less talented. They are designed for the individual who takes the assessment, and not for the HR practitioner. In other words, personality assessments were designed to help individuals discover their underlying preferences regarding learning styles, problem-solving styles, self-awareness, ethical inclinations, emotional intelligence, and stress management.

Intended for Increasing Self-awareness, Not Appraisal

On the contrary, HR practitioners tend to interpret test scores speciously to gauge behavior, rather than as pointers of categorical preferences. Besides, HR practitioners often fail to factor in the test-takers’ past and current environmental influences.

And then there’s the risk of people being pigeonholed or pushed into a particular course regardless of his or her preferences. HR practitioners and career counsellors who put too much emphasis on personality assessments may compartmentalize people into rigid categories. This flies in the face of a central tenet of the MBTI premise—that individuals could choose to act against their preferred type if the occasion demands it. People’s attitudes and behaviors often change over time because of emotional experiences or socialization into specific work and social cultures.

Idea for Impact: Use Personality Assessments to Facilitate Self-Awareness, Not for Categorization or as Predictors of Achievement

If you’re a manager or a HR practitioner, don’t use personality assessments to categorize people or as predictors of achievement. Encourage people to take personality tests, but help them interpret these pieces of data about themselves—only they could make sense of test results in the context of their life history, social environment, and ambitions for career and life.

How to Buy a Small Business // Book Summary of Richard Ruback’s ‘Buying a Small Business’

June 26, 2018 By Nagesh Belludi Leave a Comment

Beyond the capital markets and startups, I’ve been exploring buying a suitable small business to invest in and operate. To inform myself with the process of searching and valuing privately-held establishments, I recently perused Richard Ruback and Royce Yudkoff’s resourceful HBR Guide to Buying a Small Business: Think Big, Buy Small, Own Your Own Company (2017.)

The authors of this HBR Guide teach a popular Harvard Business School class on “acquisition entrepreneurship.” Their curriculum trains self-employment-inclined MBA students to search, negotiate, and buy an established business and become an entrepreneur-CEO within a year or two.

According to the authors, MBA students are drawn to their class by the prospect of a meaningful leadership responsibility earlier in their careers, as opposed to slowly climbing the corporate ladder or taking on the great risk of starting a company from scratch and establishing a viable business model.

The first section of the HBR Guide to Buying a Small Business can help you decide if entrepreneurship is a good match to your temperament, lifestyle, work-experience, and career ambitions. The largest part of the book provides a comprehensive roadmap for all aspects of acquiring a business—bankrolling the search process, deal-sourcing, managing risk, organizing equity- and debt-financing, running due diligence processes, structuring the purchase, and closing the deal. The final section of the book discusses changing the leadership over and transitioning into operating management.

Reflection: Is Acquisition Entrepreneurship Right for You?

Self-employment is not for everyone. Entrepreneurs need to be smart, driven, business-savvy, self-motivated, strategic, resilient, persuasive, and be able to deal with uncertainty.
On top of the challenges of self-employment, acquiring and operating a small-business will require reaching out, projecting self-confidence, and persuading people you don’t know—business brokers, financiers, investors, regulators, sellers, employees, and customers.
During your exploration of what business to buy, you’ll have to quickly learn about unfamiliar industries, markets, and companies. As a leader, you must be able to develop cross-functional expertise quickly.

Searching: A Full-time Job in Itself

Plan to commit full-time for six months to two years to raise funds from financiers, identify and vet potential acquisition targets, and negotiate with sellers on a realistic purchase price. Afterward, plan for no less than three more months to perform due diligence and complete the transaction.
“When you are seeking out a business to buy, you might face months when you work 12 hours a day and simply not find a desirable prospect. It’s a frustrating experience with lots of effort and no reward.”
Arrange for debt and equity financing from potential backers and risk-sharing partners. Contact affluent folks in your network and investors who specialize in small-businesses. The networks of people you bring together to help your mission can also lend a hand during the deal making and the due diligence processes.
To find potential businesses to buy, try reaching out directly to businesses whose owners may be inclined to sell. Engage small business brokers (there’re some 3,000 small business brokers and intermediaries in North America,) or comb through databases of small businesses for sale.
For potential sellers, look for business owners who, after building their firms over the decades, are approaching retirement and don’t have an inheritor interested in running the business. Many aging business owners are determined to ensure that their businesses live on.

Seek Enduringly Profitable Businesses: Recurring Customers and Predictable Revenue

Look for “enduringly profitable businesses”—stable, slow-growth companies in dull-and-boring industries (such as sandblasting, equipment maintenance, industrial repair and overhaul, window-cleaning, service-providers) in small, defensible niche markets.
Seek businesses whose business-to-business customers are unlikely to switch vendors because the product or service their customers buy isn’t a big part of the costs of their business. Consequently, they’re not motivated to shop around for lower-cost vendors and squeeze margins.
Focus on businesses with yearly revenues of $5 million to $15 million and cash flows of $750,000 to $3 million.
Avoid promising start-ups and risky turnaround opportunities; “it is tempting to imagine buying a troubled business or one with uneven performance, because the purchase price would be very low. But we strongly advise against it, because you’ll have to reinvent the business model and doing so is a very difficult and risky endeavor. Instead, buy a profitable business with an established model for success—one that is profitable year after year.”
Avoid high-growth businesses because “high growth means that your new customers will quickly outnumber your existing ones. Because new customers bring new demands, there are many ways to get in trouble. New customers are, well, new; they have no loyalty to the company and no history. High growth requires great management effort. It also absorbs money rapidly, and raising that money puts a strain on the business and its owner. A rapidly growing firm also attracts competitors, which see the expanding market and the opportunity to attract new customers. So, in a high-growth business, you could work hard and still fail if you cannot keep pace with your competitors. And even if your business survives, you might find that competition has forced you to sell at low prices, so you enjoy little financial reward after all. Making this all the harder, the seller will demand a much higher price for a business that has the potential to grow quickly.”
Avoid technology-driven companies (they face shifting customer needs and therefore demand constant reinvention,) cyclical business, and businesses with well-established competitors.
Small business-owners usually don’t hire large consulting firms or investment banks to sell their businesses. Their businesses are too small to appeal to private equity firms. “We think it makes sense to buy a business with between $750,000 and $2.0 million in annual pretax profits. … At the upper end of our size range—$2 million or more in profitability—we find that institutional investors, like smaller private-equity firms, start to become interested and that competition raises the purchase price, reducing the financial benefits of owning the business.”
“EBITDA margin (EBITDA/revenue) ≥ 20% for services and manufacturing or 15% for distribution and wholesale”

A Checklist for Enduringly Profitable Businesses

Initial Filters:

Is the prospect consistently profitable?

Is it an established business instead of a startup or turnaround?

Is it in the right size range?

Is it located in a place you are willing to live?

Do you have the skills to manage it?

Does it fit your lifestyle?

Deeper Filters:

Is the prospect enduringly profitable?

Is the owner serious about selling the business?

Seek Enduringly Profitable Businesses: Recurring Customers and Predictable Revenue

Valuing the Company and Negotiating a Deal

Use the company’s past financial information to project future earnings and your return on investment. Then decide on how much you should pay for a small business: “You’ll need to base the offer price on the general range of 3x–5x EBITDA.” Adjust the multiple for profit margins and growth prospects.
Run a primary due diligence—“a focused period of rapid learning in preparation for making an offer. This is when you’ll test the seller’s initial claims and verify the information that has made the business appealing to you. … You’re looking for any reason that you might not want to acquire this business.”
Finance using equity and debt. “Visit banks and approach your investor network to raise money for the acquisition. You should be prepared to provide information about the business and its industry, details on the due diligence that you’ve done, your financial projections, and the deal terms that you are proposing.”
Once your offer has been accepted after negotiations, run a confirmatory due diligence “in which the company’s records will be fully open to you. You will typically have around 90 days to work with your accountant and attorney to check for any inconsistencies and red flags. … This can be an extremely nerve-racking time for both the buyer and the seller, so it’s important to be patient and calm.”

Transitioning into Leadership and Emphasizing Business-as-Usual

As part of the negotiated deal, try to get the seller to stick around for 3 to 6 months to help you in the transition.
“After closing the sale, you should focus on four tasks: introducing yourself to all your managers and employees, meeting with external stakeholders, communicating the transition plan to everyone, and taking control of your cash flow.”
“The most common trouble for small firms under new owners is running out of cash. … So set up a process whereby you approve all payments before they go out, and review your accounts-receivable balances at least weekly. You should also implement a 90-day rolling cash-flow forecast.”
Meet with all the constituencies and reassure them that they won’t see any immediate changes. Lay emphasis on “your overarching goals for the company—for example, excellent customer service, commitment to quality, a satisfying work environment—and encourage people to stay focused on their work.”
Visit every major customer as soon as you can. Keep your ears open for ideas to improve your product- and service-offerings.
Don’t make any big changes early on, get to know the business, and be very respectful of all the constituents—they know more about the business than you do.

Recommendation: Read ‘HBR Guide to Buying a Small Business’ for a Very Good Introduction on How to Buy and Organize Finance for a Business

Richard Ruback and Royce Yudkoff’s HBR Guide to Buying a Small Business is excellent manual for prospective entrepreneurs, employees of small businesses, financiers, and value-seeking investors. You will also become acquainted about interactions with bankers, brokers, sellers, accountants, and attorneys you meet while searching for a business to buy.

Writing Clearly and Concisely

February 13, 2018 By Nagesh Belludi Leave a Comment

In my judgment, most books should be booklets, most booklets essays, most essays articles, most articles paragraphs, and most paragraphs should be statements.

It is far more important to write well than most folks realize. Writing not only communicates ideas, it also generates them—in the minds of both the author and the reader.

Effective Writing is a Lifelong Pursuit

One of my 2018 goals is to peruse two classic texts on writing clearly and concisely: William Strunk and E.B. White’s The Elements of Style (1918) and William Zinsser’s On Writing Well: The Classic Guide to Writing Nonfiction (1980.)

Strunk and White affirm that brevity is the essence of good writing in these three sentences:

Vigorous writing is concise. A sentence should contain no unnecessary words, a paragraph no unnecessary sentences, for the same reason that a drawing should have no unnecessary lines and a machine no unnecessary parts. This requires not that the writer make all his sentences short, or that he avoid all detail and treat his subjects only in outline, but that every word tell.

Succinctness, simplicity, and humanity are also dominant objectives in William Zinsser’s On Writing Well.

Look for the clutter in your writing and prune it ruthlessly. Be grateful for everything you can throw away. Re-examine each sentence you put on paper. Is every word doing new work? Can any thought be expressed with more economy? Is anything pompous or pretentious or faddish? Are you hanging on to something useless just because you think it’s beautiful? Simplify, simplify.

On Writing Well is a celebrated guide to concise, unmistakable, and well-crafted writing. The book has sold several million copies worldwide, and is a required reading at many a university course.

Good writing doesn’t come naturally, though most people seem to think it does … Writing is hard work. A clear sentence is no accident. Very few sentences come out right the first time, or even the third time. Remember this in moments of despair. If you find that writing is hard, it’s because it is hard.

Zinsser’s central premise is that good writing is the result of hard work, not inborn talent. The book’s particular strength is in Zinsser’s selection of paragraphs by great writers, and his instruction on how to learn from those writers: “Writing is learned by imitation. If anyone asked me how I learned to write, I’d say I learned by reading the men and women who were doing the kind of writing I wanted to do and trying to figure out how they did it.”

On Writing Well is a must-read for anyone who writes and desires to his or her prose. Read Derek Sivers’ helpful synopsis of the book.

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Career Development

The Buddha’s Socratic Questioning Technique

Idea for Impact: Rational Inquiry is Driven by Questions

Wondering what to read next?

Four Rules for Priority-Setting

How to Develop a Vision for 2020?

Wondering what to read next?

How Anil Ambani Learned the Ropes of Doing Business in India

A formal education doesn’t necessarily teach you everything about how to navigate the real world

Idea for Impact: Formal education cannot complete the kind of real-world operative skills that you need

Wondering what to read next?

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Bill Gates still doesn’t believe in taking breaks

For most overworked and overwhelmed people, life’s great tipping point is the moment they realize something’s got to give

Balance is Bunk: You can’t have everything—even if you work really, really hard

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Firing is About an Underlying Commitment to Retaining Great People

Many Fired Employees Feel Surprised That the Axe Didn’t Fall Sooner

If an Employee is Not Working out for You, Fire Fast

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Idea for Impact: Resist the Envious Consequence of Social Media

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Personality Assessments Cannot Predict Performance

Personality Assessments are Starting Points for Change, Not a Predictor of the Outcome

Intended for Increasing Self-awareness, Not Appraisal

Idea for Impact: Use Personality Assessments to Facilitate Self-Awareness, Not for Categorization or as Predictors of Achievement

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Reflection: Is Acquisition Entrepreneurship Right for You?

Searching: A Full-time Job in Itself

Seek Enduringly Profitable Businesses: Recurring Customers and Predictable Revenue

A Checklist for Enduringly Profitable Businesses

Valuing the Company and Negotiating a Deal

Transitioning into Leadership and Emphasizing Business-as-Usual

Recommendation: Read ‘HBR Guide to Buying a Small Business’ for a Very Good Introduction on How to Buy and Organize Finance for a Business

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Effective Writing is a Lifelong Pursuit

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