The thing about really good advice is that you never really know how good it was until a while after. If you knew it was good advice at the time you probably knew the answer but were fudging the decision. It’s when you are in the moment, on a track hurtling in some direction when you just think you need someone to reinforce your position.
My old boss gave me a couple of great ones when I left the comfort of the payroll 6 years ago.
1. To be really great you have to make tough decisions when things are going really well
2. Make sure you pay yourself properly
Both fairly intergalactic in their own right. The first we could talk about for along time and something I really believe in, but its the second that I often come back to. For any new business its key that you get to a position where you start to pay everyone their market value. If you don’t its fairly easy to run a business getting a £100k plus people to work for £15k, it just doesn’t last very long. I fell into the trap with a business a while back – thinking I was “reinvesting”, but the reality was that I was becoming more and more detached from the value of the business and the products we offered. The “reinvestment” plan made it all a little make believe vs feeling every penny you spend which is what a small business should be feeling.
Where I see this happening more and more is not so much in small businesses, but big organisations who are looking to change, or innovate with their products.
The advertising industry historically grew by around 3%. Essentially it didn’t. This made most agencies try and differentiate from the competition – you had to, it was about stealing. Then along came digital. the growth charts were phenomenal, it was the saviour. New products and services were launched things grew like mad, but the independents (media or creative) grew faster and innovated quicker. Why? They paid themselves properly. They charged clients properly, they paid their people properly, they paid their dedicated management properly and they had a crystal cler idea of their product and how to manage it and importantly grow it.
The “traditional” agencies, were trying to protect legacy revenue – TV media or production, the army of planners who sat in mild panic hoping they wouldn’t get asked a digital question by the client. Money was taken from digital to invariably prop up the old model. Why? because clients didn’t feel they needed to pay for this but agencies felt as though they should – so they took the money, thinking the strategic high ground would be safer than the commoditised trading or production. Clients want the job done, not save money on the money they give you. Its lack of belief in we do that makes it start to be about the money.
It all comes back to being paid properly. Having the tough conversation, being clear on what you are worth which makes you focus where you allocate you resource and why.