Zane Safrit

4 Variables That Determine a Successful Profit Formula

Mark W. Johnson is Chairman of Innosight, a strategic innovation consulting and investing company with offices in Massachusetts, Singapore, and India. He's also the author of an excellent book: Seizing the White Space:Business Model Innovation for Growth and Renewal.

He shared an hour of his time, wisdom, insight, resources on business model innovation as a recent guest on my radio show. You can listen here.

I asked him:

What are the 4 variables that determine a successful profit formula?

And he answered:

1. Revenue model
2. Cost structure
3. Margins
4. Resource velocity

This is not meant to be financial 101. I have pointed them out because I think they need to be thought about first and foremost.

A revenue model is how much money can be made in sales.

Cost structure is both direct and overhead costs.

Then I talk about margins and resource velocity meaning the speed by which inventory and assets and utilization happens to cover the cost structure.

The simplest example of these four variables is the retail industry. There was a business model innovation with the discounts stores. Traditional department stores marked up their inventory 40% and then they turned the inventory 3 times over the course of the year which equals 120% return.

Discount retailers changed the game. All they did was decided not to mark up their inventory as much. They turned their inventory faster through their system.

Thanks, Mark.

The questions for businesses today becomes:

• what's your example of these 4 variables?

• which one can you alter to seize the white space, create a new business model, and do to your industry what discount retailers did to the retail industry?

Do That One Thing

Drop what you’re doing (reading this blog post) and do that one thing that will make a difference for your company. 

And then repeat this every day in 2009.

Some days make it two things.

Businesses are complex and challenging in any industry, period, economy, community.  And it’s easy to forget, in all that whirring complexity,  we can have a direct and immediate impact if we do just one thing every day to make a difference.

• Make one more call.
• Contact one more prospect.
• Follow-up with one more customer.
• Find one more expense to reduce or cut.
• Write one more blog post.
• Offer one more solution.
• Recognize and praise one more co-worker for their solutions.
• Hire one more A-player.
• Find the money to hire that A-Player.
• Find where that C-Player can be an A-Player.
• Answer one more phone call.
• Follow up with one more contact you met at a conference.
• Send one more hand-written thank you note.
• Sell one more product or service
• Listen one more minute
• Find one more free resource
• Innovate one more idea
• Listen 2 more minutes
• Go to be early one night.
• Come to work early one day.
• Help one co-worker.
• Complain one less time.
• etc.

Do just one of these, or others of your own conception, each day for 2009. I think you’ll see positive results in several ways:

1. You. Your attitude, your productivity, your home life, your career and its options.
2. Your Family. They'll appreciate the positive you. Your habit will spread to them.
3. Your Co-workers. They’ll appreciate your efforts and be inspired perhaps to join you, once a week or twice or two of them daily....
4. Your company.

Keep this quiet. Let the results speak for themselves.

Let me know if this doesn’t work. I’m doing it for 2009. And I don’t want to waste my time if it’s not going to work.

On the other hand, let me know if it does work. We all need inspiration and stories that show us things we can do to have an immediate impact.

SWOMFest: Where we should be

SWOMFest starts today. This is where I should be. This is where you should be.

But...maybe you're like me and the planets didn't align (that's the only real reason not to attend this...). It happens. Ben and Jackie understand that...kinda. They do, really. They're kind and compassionate, as well as understanding. So you can go to SWOMFest. And you can watch the presentations live.

How cool is that? Ben and Jackie rock.

And Jackie, yes, I am one of those people who are thinking "Damn, I should went...." But the planets...I'm there next year.

Get out and meet people

Thank you, Tannette, for this reminder of the power of networking especially during challenging times.

Her column, Networking Vital Even in Hard Times, expands on this gentle, but effective, reminder/swift-kick:

As small-business owners look for ways to cut expenses in lean times, they need to be careful not to do away with a tool that can be vital to their survival and growth — networking.

Networking helps entrepreneurs build relationships with potential customers, with other small-business owners that they share ideas and experiences with, and with business associations that can be a lifeline for struggling companies.

Getting out, meeting people and building relationships is a good way to be actively seeking new business...

Small businesses and startups are in the enviable position of being able to take direct action and see direct results. One of the most direct and effective actions is to get out & meet people, help people, help your fellow small businesses find solutions, solve problems, add jobs and get us all out of this situation.

16 Ways to Invest In Your Employees....Without Spending a Dime

1. Encourage Company Gossips. (Yes. Encourage company gossips.) The big difference  is...encourage them to spread good news.  The good news are the accomplishments and heroic acts and beyond-the-call of duty type efforts that too often go unnoticed, unrecognized, uncelebrated.  Lead the way. Spread gossip, openly and frequently, at company meetings: I heard so-and-so did this wonderful thing for this customer...or It’s come to my attention that x heroic deed was done by Y person.  I wrote on this in more detail at Can Company Gossips Serve to Inspire? at Small Business Trends.
2. Say Thank-you 5 times more per day. Use email, voice, voicemail, phonecalls, skype, handsignals....just say it.
3. Be specific in your thanks. Now take it one step further and tell the person specifically what they did and how that made you happy, your day easier, took a burden off your shoulder.
4. Make it a habit. Make sure you schedule appreciation or recognition as an agenda item in your meetings.
5. Publicize your employees' exploits. Tell your customers and partners and vendors how great they are.
6. Talk about them right in front of their face. Tell others about what they did, while they are standing right there.
7. Send hand-written thank-you’s. My wife just received one today. It made her day and mine, too when I read it. Note to self: Your employees have spouses. Make your employee happy and you’ve made two people happy. 
8. Flowers, candy, pastries, coffee...paid out of your pocket, work wonders.
9. Help them. Help them do their job. I regularly answered the calls on our sales or customer service line when they were busy. ( But, I stayed away from our servers.)
10. Be their defender. Always, always, always do this. Do it more.
11. Listen, listen, listen.  Honor the 2:1 ratio of ears to mouth.
12. Find their strengths. Then organize their job description to showcase those strengths.
13. Find what makes them happy and do the same. If they like talking with customers, make sure they talk to customers every day. If they like programming...make sure they can spend time doing that every day.
14. Make connections. Spend time connecting what they do with what it does for the those around them, for the company as a whole.  Show how their achievements make a difference with the company’s performance, overall and specifically in their area.
15. Document their successes. Put it in writing for them to show others. And for both of you to remember and celebrate later.
16. Make their reviews a celebration. If they’re not...take responsibility and ask yourself have you done everything here and more to insure they are a success.  At the very least, everyone in the company will see your commitment to that person’s success. At the best, you’ll find the proverbial diamond-in-the-rough at a cost much lower than hiring a new employee.

These are proven investments.  But unlike the risk : reward ratio of proven financial investments, there's no risk, but the rewards are the highest.

And as a small company you have an advantage. That advantage is you're small. You can start today to take any or all of these steps. Right now. And see immediate results. Right now.

That's a huge advantage.

And it won't cost you a dime.

My tips for staying focused.

Disclaimer: I am happy when I accomplish things, annoyed by self-guilt when I don't, realize I could do more...every day.  I'm not a fan of rigid rules for life. I've never read GTD stuff. Sound like you? Great, read on; maybe it'll help. No? Stop wasting your time reading this post.

* Good sleep.

The earlier I retire, the better I sleep. And the earlier, I wake. I'm more creative, more positive, more flexible, patient, on-target...more productive with good sleep the night before.

Too often, I've found that any accomplishments late at night, come at the expense of tomorrow.

* Plan tomorrow before I end today.

Well-begun is half-done. And my day is productive if it starts productive. I make sure I start the day productive by preparing for it the night before.

Before I leave the office, I make a list of all that needs doing tomorrow.

Order of priority isn't important.  It's more important the list is prepared, ready for me the next day.

The point is to create a place ( a crutch?)  I can turn to to stay focused. I find it's needed at 3 points in the day:

1) First thing (get the ball rolling)

2) Mid-day ( re-start the ball rolling)

3) End-of-the-day (finish strong, staying focused).

Time-limit: 15-30 minutes. That limits the list to pressing, important priorities.

The goal isn't controlling my schedule. It's to keep me organized through the many daily surprises and eliminate those surprises that aren't important.

The list is all-inclusive: blog posts, emails, reports, phone calls, workouts, family, pets, household chores, ideas, books to read, trips to schedule, everything. Everything, that is, that I can remember and write down in 15 - 30 minutes.

* Keep a notebook with me.

I'm a snob. I use a moleskine. I keep one with my at all times. Notes, reminders, phone numbers, emails, to-do lists, ideas, random thoughts, scribbles....their all there in one place. Once, I lost one. Horrible experience. Fortunately I'd just started using it.

* Breaks for re-creation.

I take 'em. Every 2-3 hours. And they last for 10-15 minutes. Get up; Stretch; Walk-around; read something other than business: politics or sports or current events; find some humor or inspiration.

* Lunch.

I take it. It's my main meal. I sleep better with a big lunch and a light early dinner. I try not to make it a business lunch. And I prefer a quiet lunch. That means I eat it before the lunch crowd or after. Mostly protein, lighter on carbs, VERY light on starches.

* Caffeine.

Yes.  8+ ounces of espresso. But none after mid-morning unless I'm traveling.

* Walk Away.

There's a fine line between persistence and stubbornness, between being attached to finding a solution and unable to let go. Only the person knows where and when it's crossed. My symptoms that I'm approaching the line include: headaches, impatience with others, pounding a desk, streams of profanity, and wasting time with diversions.

At those signs, I walk away. Find another task, another project, a mental break, a workout, or just ...walk...a...way.

(Or my wife intercedes with a kind, but bemused...Honey...let it go.)

* Keep a Routine.

If Rome wasn't built in a day, I'm not accomplishing everything today. Solutions to vexing problems often come to me in a flash as I'm driving home or out for a run. They're usually simple, elegant, easy-to-do and with tools like Jott I don't have to worry about forgetting them before I get home.

The routine also provides a source of order and stability. That's important as the pace of change around us only increases.

* Exercise regularly.

About 4 times a week. I include mowing our lawn as exercise. I run twice a week and lift weights twice a week. (My goals are: 1) half-marathon under 2 hours by summer 2009; 2) bench press my body weight (10 reps); 3) 20 pullups. There's a saying that progress that comes slow, comes to stay. Well, at my rate, this progress is staying, baby.)

* Spend time away from the business.

Family, friends, hobbies, books other than business books, spiritual/personal development. They're the real goals or intertwined closely with professional goals. They're also the source of broadened perspectives, virtues like compassion and kindness, and ultimately solutions that add meaning for my goals and sometimes those of others.

* Big chip, lots of RAM and a huge pipe.

Speed kills. It kills a list of to-do items quickly. Get the fastest chip, with the most RAM and the biggest connection pipe. I'm working on that one.

Small Business Resource of the Week: SubscriberMail

SubscriberMail. What a great company to work with!

I hate to peg them as a small business resource. They serve some of the top brands you'd recognize, your friends would recognize, their friends around the world would recognize. And they have the passion and skills to deliver the same outstanding service for smaller companies aspiring to global dominance.

And they do that while making you feel you're their only customer and they have all day to help you.

It works. They were  included in last year's Inc. 5000 list as one of the fastest growing privately-held businesses in the country.

I've used them in another company where I worked. Our needs were modest. Our account would generate modest revenues. Yet, we received outstanding personal attention from the very first phone call. On several occasions over the years, they would send notices directly to our customers when storms knocked out our power or phones.  That offer would come from their side when they heard of our plight. And that's in addition to frequent, generous, hand-holding and support as our tech-averse staff at the time embraced technology.

Their focus on service all starts with their owner: Jordan Ayan. Jordan and I were introduced at WOMMA event. Andy Sernovitz, the CEO for WOMMA at the time, sent his usual cryptic email before the event directing us to be friends. We have been ever since. Jordan's smart, creative, passionate about service, holds the highest integrity, is smart about business and an excellent leader. He's competing in a tough industry: hosted email marketing services. And he's doing it be emphasizing a relentless pursuit of wowing the customer.

They have all the latest tools and technology  for developing, delivering and measuring email marketing messages through a web-based interface.

Their reports were simple to use, well-organized and offered accurate and timely data to help generate the results important to our company, and yours.

Their delivery rates remain among the highest in the industry. That goes back to their owner's integrity. He insists they use only legitimate, permission-based email marketers. Security and reliability receive top priority. We practice diligent federal compliance and actively pursue strong Internet Service Provider relations.

And besides last year's recognition on the Inc. 5000 list of fastest growing privately-held companies, SubscriberMail has been recognized by independent industry analysts as

Extremely well suited for newsletter marketers,

Winning the Marketing Excellence Award expresses a resounding vote of user confidence in SubscriberMail's services.

Ranked the best among email service providers in meeting or exceeding client satisfaction.

See. It's not just me saying these things. A lot of people have been saying them for a very long time.

When you're ready to choose an email service provider you can depend on, that will exceed your needs, that will be there when you need them as YOU need them...use SubscriberMail. Tell Jordan you heard about his business here. It won't get you anything extra. But as a former CEO, it's nice to know when people are saying good things about your business.

Small Business Resource of the Week: WorkHappy

I've been a fan of WorkHappy for a few years now. At times I've been such a huge fan that I would turn to it every day. I would find 4 or 5 or 6 solutions or inspirations there it seemed every time. And then, I realized...I'm getting obsessive, people think that's the only place I visit. So I reduced it down to one visit a week. Still...I found 4 or 5 or 6 solutions or inspirations.

The inspirations take two forms. Bite-sized and meal-sized. Let's talk about the bite-sized.

Hors douvres-sized inspirations come in the form of happy quotes from entrepreneurs in business or sports or life in general. Anyone creating something new, some mold-breaking model, is an entrepreneur. And WorkHappy has their quotes regularly. Some are people you know; some aren't. But now you will.

Roz Savage, working to become the first woman to row from California to Australia.

Tiger Woods.

Howard Aiken.

Don't worry about people stealing your ideas. If they're any good, you'll have to ram them down people's throats. [I had to share that one...]

Entre-sized inspirations. That's where WorkHappy stands out. New, pre-breakout, companies and their solutions, usually free, are evaluated and shared at the blog. Pretty regularly, too. And that also includes recommendations on ways to improve it and why they're needed. Check out the review for Rescue Time.

Why is it the killerest?

Because it achieves the holy grail of being fun to use, and darned useful too.

The software logs the applications you use (a plain text log). By default it logs in two-second increments to paint a pretty accurate picture.

That gets to the point in a way that's useful to potential users. It's fun to use, useful and here's what it does. And he keeps the priorities proper. Who'll use an ap if it's neither fun to use nor useful? And that makes me want to read the whole darn post including his recs for improvement.

Put it all together, hors douvres-sized  inspirations and Entre-sized inspirations, and you have a...(wait for it) HappyMeal. (Sorry. The food metaphor just kept coming around....)

Seriously, put it all together and you've got a great, great, site you should for inspiration and solutions.

It's written by Carson McComas. Tell him I'm a big fan.

New-Hire: Small Business Resource of the Week

New-Hire is my Small Business Resource of the Week.

New-Hire is, should be, the best friend of startups and small businesses growing fast. These are the companies enjoying the double-edged sword of growth. They shout Yippee! at every report that shows more customers, more sales, that create veritable rivers of more cash…And they follow that with the plaintive lament We need more people, better people and that’s followed by But we don’t have time to look at all those damn resumes…! (Don’t act shocked. You know you’ve said the same thing.)

New-Hire is the premiere candidate management software. What’s that mean? Their website speaks simply and clearly. Employers, get answers to your most important hiring questions …before interviewing. And Keep track of all applicants in one easy-to-use online solution.

Aren't those the two biggest challenges when you think about the first step of hiring? Finding qualified candidates and keeping track of all their resumes and answers..the bane of every hiring manager, definitely the bane of a CEO of a small, growing company.

Ultimately it's about managing the process....in a timely way. And while cash is a precious asset in a growing company, even one generating rivers of cash...time is even more precious.

As shocking as this sounds, they’ve not overstated their claims. Their online solution allows you, the hiring manager, to create a series of questions that pre-screen candidates for qualified and not, ones to interview or not. You can sort and filter their online responses to insure your time is invested with personal interviews of the most qualified candidate. The candidates answer those screening questions online.

You review, filter and sort at your convenience.

There’s no need to handle resumes from well-meaning candidates whose background is an undergraduate degree short of the MBA you require or whose years of experience fall in the low single-digit range for general work experience versus your need for high-double digit years of experience in a specialized area.

You’ll miss the dark humor those unqualified resumes bring your day.  But, think about the time saved, the money saved and the continued growth your company could enjoy with a means to find the right candidate in the right amount of time at the right price.

New-Hire will also help you create effective want-ads that target the most productive online sites for candidates seeking jobs. Right now, that might not be so much of a challenge. But soon the economy will right itself and we'll see a shortage of qualified candidates and you'll want their help here, too.

Disclaimer: I’ve never used the service.

I’ve met their CEO, Chuck Smith. He was introduced to me by Steve Macgill, CEO and founder of Peersight Online and who writes a weekly guest post here. Chuck is someone you’d want to do business with, regardless. He’s smart, dedicated, focused, honest and leads a business that provides a valuable resource for businesses; and he runs it well, too.

And his references all speak incredibly well of him and his service and the results they delivered. I spoke to at least 10-12. Besides the words of praise for him personally and what he and his company helped them accomplish, they all shared a common trait. They returned my calls nearly immediately, schedule’s allowing. They seemed anxious, enthusiastic, to speak on Chuck’s behalf. That spoke as much as their words.

Based on that, New-Hire was recommended  here and here as a valuable resource to the customers of a company where I served as CEO. It’s easy to recommend them again to you now.

New-Hire is this week's Small Business Resource of the Week...and every week you need to find outstanding candidates, find them quickly and find them within your budget of time and money.

Small Business Resource of the Week: Six Disciplines.

Six Disciplines is my Small Business Resource of the Week. It could be the Small Business Resource of the Year, honestly. It's that valuable to small business.

What is Six Disciplines? Well, from it's website it's The first enduring business excellence program.

I don't know about first. But I do know that it's  a systematic, coachable, any-business-should-be-able-to-achieve-it program for small businesses to achieve consistent success.

I think that's the key: consistent success. Consistent success from an enduring business excellence program.

I'm rereading Built to Last: Successful Habits of Visionary Companies, by Jim Collins.  They key driver for these enduring companies, these visionary companies, is they created a system for enduring business excellence. It wasn't a charismatic CEO, or one product, or one market that created their enduring success. It was a system of successful habits, a system that could be maintained and then passed on to the next group of employees or leaders, even the next generation of them.

And Six Disciplines spells out in detail such a system of successful habits, one that creates enduring business excellence.

Disclaimer: I've never been a client.

I've been a big supporter though.  I love their blog, Be Excellent, written by Skip Reardon. It's well-written, consistent, dependable, always useful. Enduring blogging excellence. Skip's consistency in bringing quality content to the blog speaks well for their emphasis on consistency in execution. Execution is what separates the great companies, the survivors, from all others. And it's what separates Be Excellent from the many other business blogs.

I became an evangelist after reading the book, Six Disciplines for Excellence: Building Small Businesses that Learn, Lead and Last. And then I had the real delight of interviewing its author, the man behind Six Disciplines, Gary Harpst. It was a 5-part series. (link no longer available). And it was in those conversations I realized the power of Six Disciplines for small business.

It's a systematic program that helps small business create a culture of expectations for excellence. And then, and THEN, execute their strategy to insure it's maintained. It keeps everyone centered and focused, engaged, and always answering the most important question. And it's transparent for everyone to see. That includes expectations AND deliverables. AND...every new member of the company can plug into it immediately.

It's very doable. It takes discipline and commitment, patience and persistence, and Six Disciplines offers an enduring approach with 4 key elements a Repeatable Method, Ongoing Coaching, Proactive Organization Alignment and A Shared Learning Community. They offer Centers in 5 states.

But here's what I also learned during that interview series with Gary Harpst. And it's what separates this organization from lots of others. Gary and his crew at Six Disciplines have a higher mission in life. That's to give. Give small businesses a business excellence program that lasts...one that will help them learn and last. And always, in every interaction I've had with them, they give. That's the partner you want: one with business expertise AND one who lives the Golden Rule.

And just to show they continue to give...I just received my free copy of Gary's latest book: Execution Revolution. I'm already excited from reading the first pages.

Six Disciplines: Small Business Resource of the Week.

9 Tips to Finish Your Race

Barry Moltz generously and wisely has K. Stone as a guest blogger. She's posted one of the best reminders about success in life or business: Simple Tips to Get the Edge in Business.

Honestly, her tips are ones you can use to Get the Edge in Life.

Follow her tips and be there, a winner, at the end of your race.

I categorized her post as Small Business Resource of  the Week. Why? The demands on a small business or startup leader or employee are...well, demanding. They're exhilarating, too. But, after the adrenals wear off, you need to follow these tips to make sure you're able to finish the race, and finish it as a winner. 

This post could be the Resource ...of YOUR LIFE. It's that simple, clear, doable, universal. Did I say doable? I did. You can start following at least one of these tips right now and start seeing results.

Small Business Resource of the Week: CIDS Interview

What is a CIDS Interview? CIDS stands for Chronological In-Depth Structured. A CIDS Interview is a Chronological In-Depth Structured Interview.

Brad Smart, PhD, originated the CIDS Interview and first described it in his book: Topgrading: How Leading Companies Win by Hiring, Coaching, and Keeping the Best People.

As it’s name states, it’s a chronological in-depth STRUCTURED survey. You're surveying a candidate's background, school and work, in structured, systematic manner to note not only skills and talents, but also patterns of responses he'll bring to your day.

The structure of this chronological in-depth survey is provided in Dr. Smart’s follow-up book: The Smart Interviewer: Tools and Techniques for Hiring the Best. In it, he outlines the approach and offers the text of the specific questions,  their schedule for being asked, and insight into how your candidate may choose to answer.

Very, very useful.  All provided great help.

The CIDS Interview approach delivered 100% of the times we used it: 3 great hires and we discovered one office-poison BEFORE we extended an offer.

And these better results mean greater longevity with each person hired, greater consistency in our operations, a culture of steady incremental improvements, operational cost-savings from rising skillsets and the resulting improved performances, greater passion and engagement with everyone in the company, greater loyalty and happiness with our customers (that help lower our advertising costs), lower employee turnover, and … better cash flows.

The CIDS Interview requires an upfront investment of up to 6 hours per candidate. We found it was more like 8. But considering the costs of a bad hire, the ROI for that investment was... priceless, to borrow a phrase.

You can also learn about TopGrading and the resources available to improve your cash flows with better people…at their website: www.smarttopgrading.com. We’ve sent customers to their day-long event. They bring back glowing reports of the power of this one-day event.

CIDS Interview: Small Business Resource of the Week

WARNING: Self-Promotion.

If you want to know more ways to engage with your employees, my book RECOGNIZE THEM: 52 Ways to Recognize Your Employees in Ways They Value offers 52 ways to recognize your employees, easy exercises to reinforce those habits and skills and inspirational quotes to keep you going.

Small Business Resource of the Week: Basecamp

Basecamp's a wiki. Wikis, and Basecamp's one of the best,  are commonly discussed as a social media resource.

But that was then, as of yesterday, anyway.  Why?

That designation is misleading. Yes, yes, yes, it's a social media resource, one that allows for collaboration and innovation and transparency in doing so. Yeah, ok. What meaning does that bring a business? Let me ask you this:

What business demographic is the primary driver in our economy for innovation and change and niche-product development?

Who's lifeline, existence really, depends  on their ability to quickly bring a product or a solution to market? And do it repeatedly even?

What business demographic's success drives job growth in our economy?

Small business.

And Basecamp is the tool that best serves small business and its need for open, transparent collaboration that engages the energies and creativities and intelligences of everyone in that business.

The thing I love about Basecamp is...it works. It's a simple, easy-to-use, wiki. It's very affordable. It's constantly being upgraded, tweaked, improved, refined, made better. See? The folks at 37signals who are behind Basecamp, walk the walk of constant improvement through constant collaboration with those that use Basecamp.

So, let me be clear: Basecamp from 37Signals was THE tool that we used at our former company that weeded out  hidden agendas, kept us focused on what's best for the company, inspired more ideas and solutions from everyone, leveled the playing field for discussions and decisions, reduced email overload, saved time and allowed us to manage a host (many) of projects nearly seamlessly.

It was the tool that tore down any silo-mentality, helped everyone understand their dependence on each other and helped everyone understand that one's success was the group's success...

Granted, Basecamp is a tool. It's only as good as the person(s) using it. But that's another power of Basecamp. It's a tool that allows you and your colleagues to be as great and smart and innovative...as you want to be.

And that, my reader, is something no one, big or small, can compete against.

Basecamp, for allowing small businesses to be as great as they want to be, is the small business resource of the week. (for the year, really.) 

Link: Work Less, Give Your Customers More...and Succeed Like 37Signals.

Update: This post was originally posted on June 3. On June 5, 37Signals came out with a new affiliate program for those who recommend Basecamp. I signed up. I changed the hyperlinks with each Basecamp to reflect my referrer's code. I had raved  about Basecamp in November 2007 and quoted in 37Signals blog.

Small Business Resource of the Week: PeerSight Online

PeerSight Online is my pick for the inaugural Small Business Resource of the Week.

Why? Why PeerSight Online? It was one of the best resources I found as CEO of a small company that helped insure my success and that of the company.

What is it? It's a peer board meeting service.

Huh? PeerSight Online brings together your peers in small business leadership, management, entrepreneurs to meet in a confidential setting. There you can share not only your knowledge, but your challenges and needs, frustrations and plans, solutions for others, with your peers. 

A peer board, a group of your peers you can turn to for support and solutions, is critical to the success of a business leader. Sure, you have a Board of Directors. But it's unlikely and unwise to turn to them for support or solutions. The same goes with your employees. As a business leader you need to be able to share your challenges with a respected group of your peers in a confidential setting.

I found each meeting of my peer board brought solutions to my vexing problems from two sources:

A. The other members of the peer board. We each had expertise in other industries, in other expertise, and those along with a different perspective usually resulted in valuable insights or questions or outright solutions that helped me solve a pressing challenge.

B. Myself. I found at the end of many meetings I'd discovered a solution from either participating in the conversation by asking questions or offering a solution that had worked for me in the past. That process of my engagement solving others' problems often delivered solutions for problems facing me.

Personally, I hate meetings. I quickly tend towards impatience and re-focus if a meeting's not well-organized around creating engagement. I get bored easily. I like decisions made quickly. But I found the meetings with PeerSight were productive, organized, focused, useful.

And that's in part to the focus Steve McGill brings to each meeting's agenda. It's prepared, communicated before each meeting and with a spot for each member to participate. And the meetings are scheduled once every 3 weeks with a conference call.

Granted, I was CEO of a conference call provider when I was introduced to Steve and Peersight and you'd expect me to endorse that resource. On the other hand, the schedule of a 2-hour conference call, once every 3 weeks allowed for very efficient use of my time in preparing for a meeting and allowed for solutions on each call to be easily digested, integrated, and put to use in the next days. That meant regular, manageable progress.

If you want to maximize your progress as a small business leader, learn and grow from a peer board of others like you, find proven and manageable solutions faster and easier...you should join.

And if you want to know more about Steve McGill and PeerSight Online, then join me tomorrow at 9:30 AM Central when I interview him on my BlogTalk Radio show. You can listen live in streaming mode at this url: http://www.blogtalkradio.com/zane-safrit.