Monthly Archives: February 2018

FOMO

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We live in an age of acronyms. I guess they are a form of shorthand. LOL, YOLO, DIY, IMHO, SMH, MTFBWY, FUTAB and ROTFL. If you guessed them all correctly you are in the mainstream of cool. And for those of us who are a bit more advanced in years, here’s the translation in order – Laughing Out Loud (LOL); You Only Live Once (YOLO); Do It Yourself (DIY); In My Humble Opinion (IMHO); Shaking My Head (SMH); May the Force Be With You (MTFBWY); Feet Up, Take a Break (FUTAB), and Rolling On the Floor Laughing (ROTFL).

There’s another acronym I’d like to explore today – FOMO. Give up? It’s the Fear of Missing Out and it can be deadly for entrepreneurs. One of the best examples of the FOMO concept is the crypto currency craze and more specifically, Bitcoin. It’s not important to understand the basics of Bitcoin. What’s more instructive is to understand what has happened in the marketplace. On August 15, 2010, the value of one Bitcoin was $.07. By August 1, 2015, the value of one Bitcoin had risen to $283.04. On November 9, 2016, right after the Presidential election, the value of one Bitcoin had increased to $726.36. On August 1, 2017, a single Bitcoin was worth $2,787.85. By December 20, 2017, the “value” had jumped to $18,486.51, and by February 4, 2018, the value had plummeted back to $8,922.61. Riding a roller coaster at Cedar Point would be considered like a leisurely stroll in the park compared to the volatility of Bitcoin.

Unfortunately, there are hundreds of thousands if not millions of individuals who have jumped into Bitcoin worldwide. Some have used their life savings to buy a stake. Many think they are investing. Most hear the siren song of making a quick buck without truly understanding the risk profile or even the basics of how a crypto currency functions. What drove some people to plunk down $18,486.51 for a single Bitcoin on December 20, 2017, and within 46 days, see their position shrink to $8,922.61? When examining the case studies, it’s apparent that many people were motivated by the Fear of Missing Out.

FOMO is dangerous because it’s an emotional reaction. We work hard to build our businesses, and much of our success comes from analyzing data and making decisions based upon fact – even when it comes to understanding consumer sentiment (which may be emotional in itself). FOMO is impulsive in nature and flies in the face of logical decision making. We face this dilemma every day in one of our business units that is focused on acquiring market-rate apartments across the country. Apartment investments have been hot for the past few years and the fundamentals have been strong. As a result, prices have been driven higher and returns are lower. Press releases abound announcing acquisition after acquisition. It’s easy to feel the pressure to adjust our investment thesis to keep up the pace of our own acquisition initiative. But experience has taught us to resist this temptation.

The first step in avoiding the pitfalls of FOMO is recognizing our susceptibility to it in the first place. This can happen if we have a clear set of standards that guide our approach to the manner in which we operate. Without these standards we are very vulnerable to being tugged or pulled to follow whatever hot trend happens to emerge at the moment. With standards, we can test against that trend to see if there is alignment. If there’s not, we must have the discipline to resist pursuing it.

The second step is to carefully analyze the risks associated with pursuing the trend. This should be a rigorous exercise that identifies all the possible ways things could go wrong and what sort of impact would be felt. Take Bitcoin for example. I’m positive that many Bitcoin buyers have done no risk analysis and really believe they are “investing.” In reality they are just gambling. It’s one thing to speculate with money that one can afford to lose. It’s another thing to put half your life savings on Red 32.

Finally, FOMO can be avoided when we eliminate the emotion of envy. I doubt many Bitcoin investors believe they have been driven by envy. But when they see others “making” huge amounts of money on their Bitcoin “investments” they want to get in on the action. When I was 10 and another kid had ice cream, I wanted ice cream too. I secretly envied the other kid with the cone. FOMO to some extent is the same thing. When others are doing well, let’s rejoice in their good fortune without having any feelings that we are somewhat inferior if we don’t experience the same good fortune.

You can also listen to a weekly audio podcast of my blog. What you hear will be different than what you read in this blog. Subscribe on iTunes or wherever you get your podcasts. You can also click on this link – Click here to listen to Audio Episode 85 – Liars.

This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.

Cheat to Compete

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I’m not writing this blog to be judgmental. I’m really not. However, there are some subjects that cannot be discussed without sounding judgmental. So here goes. Let’s look at the topic of (gasp!) cheating. I can’t say whether cheating is more prevalent in the business world today than 10, 25 or even 50 years ago. Needless to say, it still is an issue that takes many forms.

Presumably we all started learning about cheating as small children. As a youngster, I remember many a board game that devolved into accusations of cheating. Our teachers and parents admonished us to never look at someone else’s paper when taking a test. Playground games were fertile grounds for cheating – remember four-square? “The ball hit the line and is out.” “No it didn’t!” “You’re a big fat cheater!” Roll the tape forward and as adults we might see team members clocking in or out for colleagues; money being borrowed from the petty cash box; résumés containing college degrees that weren’t actually earned or military service that didn’t actually happen; padded expense reports, and exaggerated (and sometimes untruthful) claims about all sorts of things.

This all may sound like a collection of relatively minor transgressions. So let me tell you a story. A number of years ago we had an apartment manager who used a corporate account at a local store to make some personal purchases totaling less than $100 – and she actually reimbursed the property without being asked. When questioned by her supervisor, she admitted her mistake. Following company protocol, the supervisor wrote a memo that ended up in her file advising her that she had violated policy with a dishonest act. In our system of progressive discipline, another such incident could be grounds for termination. This probably seems like a pretty innocuous situation – right? But the story gets worse.

A few years later it was discovered that this individual had concocted a very intricate, elaborate and almost impossible-to-discover embezzlement scheme – to the tune of $160,000. Her property received federal rent subsidies, and while we never had any money missing – her property was always 100% occupied and all rents collected every month – she figured out how to defraud the federal government. As her employer, we had to immediately re-pay the $160,000 to the government and then filed a claim under our crime insurance policy. Of course she was prosecuted but had spent all the money, so there was no way to recover the stolen funds from her. The biggest surprise came when our insurance carrier denied the claim. Why? There was a fine-print clause in the policy that denied coverage if we knowingly hired or retained an employee who was dishonest. And the damning piece of evidence was that memo in her file that contained the words “dishonest act” involving her use of a company credit account for personal purposes. I’ll spare you the ugly details of litigation against the crime insurance carrier as well as the errors and omissions insurance carrier. Needless to say we lost and ate the $160,000 (plus legal fees).

The moral of the story is three-fold. First, understand the fine details of your insurance coverage and modify your policies and procedures accordingly. Second, be careful at shrugging off small acts of cheating or dishonesty. They are a window into the overall character of an individual. What may appear to be a seemingly simple “mistake” could be the tip of a very expensive iceberg. Finally, everyone needs to see us as the paragon of virtue. We entrepreneurs need to model “squeaky clean” for our team, our customers and for the public at large. As hard as it may be, we need to demand complete and total integrity from ourselves and everyone else in our organizations. We start by always doing the right thing – especially when no one else is looking. And we hold our colleagues and associates to the same standard. The temptation may be great to cheat to compete, especially if we are struggling to gain traction. But if we do, it’s hard to expect others not to follow suit.

Integrity is not a puritanical concept. Great leaders always do the right thing and show others that it is the only standard by which to operate.

You can also listen to a weekly audio podcast of my blog. What you hear will be different than what you read in this blog. Subscribe on iTunes or wherever you get your podcasts. You can also click on this link – Click here to listen to Audio Episode 84 – D or D?

This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.

Chips and Shoulders

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I listened to a fascinating business podcast the other day. The host was interviewing an entrepreneur who apparently has faced a number of challenges throughout her career. What struck me the most was her statement that she has a “chip on her shoulder.” We’ve all heard this phrase before, and often it’s portrayed in a positive light. The thesis is that a person has faced adversity and come away from the experience stronger and tougher. I actually downloaded the transcript of this interview (which lasted for nearly an hour) and read it carefully. What I pieced together led me to question how positive a “chip on the shoulder” notion actually is.

For starters, let’s look at some phrases that I excerpted from the transcript. “Not everybody had a fair shake.” “In another way the industry is biased and the numbers are terrible and bleak.” “I will say that it took an embarrassingly long time to get anyone to take me seriously, so that’s where the insult is.” “Some of these barriers are just insulting.” “One person has to climb the mountain and another’s gotta climb a fence.” “The person across the table has to get a fighting chance.” “I don’t play well with others.” “I’ll tell you this honestly, our goal post has moved – it’s also there is a microscope on what I’m doing and what my company is doing, that is not on other companies.” And how about this gem? “Back to the theme that it’s a meritocracy except you have to work five or ten times harder than everybody else which is the opposite of a meritocracy.” Other words were used like “dignity,” “gut punch,” “injustice” and “really screwed me over.”

This entrepreneur shared her journey of the past two or three years, and while she’s clearly made some progress with her business, a case could be made that she ought to be farther along. She obviously believes that the reason that she’s not is due to external forces that have conspired against her. I don’t think I’ve listened to someone sound more like a victim in a long time. Unfortunately, the podcast host played the part of enabler and sympathizer. He egged her on and attempted to validate her claims. Yet, she presented very little concrete evidence to support her mindset.

I can’t begin to know all of the experiences encountered by this entrepreneur. Undoubtedly there have been some trials and tribulations along the way – however, the world is not selective about this! The entrepreneur from the podcast has chosen to develop a “chip on her shoulder,” advocating that the deck has been stacked against her and others have stood in the way of her success. The result appears to be a bitter self-fulfilling prophesy.

What if this entrepreneur took a different path? What if this entrepreneur looked at the obstacles as opportunities rather than conspiracies? What if she believed in her heart that every failure meant that something even bigger and better was in store? What if she could visualize abundance and possibility instead of lack and limitation? Over the course of my career, I’ve always found that embracing optimism and positivity begat the desired results far more often than wallowing in pessimism and negativity.

For me, a “chip on the shoulder” is a cynical mindset. It is typified by wariness, suspicion, skepticism and distrust. Entrepreneurs that wrap themselves in a “chip on the shoulder” cocoon will have a much tougher time receiving the good which they are pursuing. Here’s an indisputable fact. The adversity we experience directly shapes our mindset. But we make a choice as to what shape it takes. When we dwell on “being screwed over,” “gut punches” and “not playing well with others,” we are setting that shape as a giant chip that rests on our shoulder. And what a weight that chip can become!

We can avoid a “chip on the shoulder” mentality by following the positive path to our success. This enables us to work through, around, over and under the obstacles that we face and see them as opportunities to grow.

You can also listen to a weekly audio podcast of my blog. What you hear will be different than what you read in this blog. Subscribe on iTunes or wherever you get your podcasts. You can also click on this link – Click here to listen to Audio Episode 83 – Hall of Famer.

This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.

Good or Bad Signals?

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You walk into a meeting and there are several people in the room. Two people are scowling, another has his face in his hands, and one person has his body turned away from the others with his arms crossed. It’s not hard to surmise that there are some unhappy folks in our midst. Entrepreneurs will do well to pay attention to body language and non-verbal forms of expression – not only to understand how others may be feeling but also to know what signals he/she may be sending.

So quick – here’s a bit of trivia. What was the television commercial that coined the phrase “never let them see you sweat?” Give up? It was a commercial for a deodorant product called Dry Idea and was released in 1984. Though the product is long forgotten, the phrase is apropos for every entrepreneur. Let’s focus on how we want others to see us.

As a leader, the last thing I want is for anyone else to sense that I’m having a bad day. Fortunately this seldom happens, but when it does I don’t want members of my team to be nervous or concerned about how I’m feeling. Putting on the happy face is important when others are looking to us for leadership. Members of our team often take their cues from us. That’s why I do my best to try and always send positive vibes.

How we dress can send a powerful message. A number of years ago our companies went from casual Fridays to casual every day. It seemed to be the way of the world and there was a lot of enthusiasm for making the shift. After a few months, I realized that I did not like it. However, once a policy has been changed giving something like this to the team, it’s very hard to take it away. But that didn’t mean I had to dress down myself. Instead, I started wearing suits or sport coats and ties every day but Friday. I’m just more comfortable attired this way. And being one of the few business people still dressing up, I have been the recipient of many a comment as to how nice I look. If nothing else, others are noticing that I am representing our organization in a sharp and tasteful manner. Perhaps they’ll draw a positive conclusion about our brand as well.

I’m working with my oldest grandson (age 11) to help him learn how to shake hands. The handshake should be firm but not crushing. It’s important for the hand to be dry and warm. A cold or wet handshake is a turnoff. At the same time as the handshake is occurring, we look the other person in the eye, SMILE and introduce our self – “I’m Lee Harris.” I teach my grandson that when he does this in a confident manner the other person will almost always reciprocate with his or her name. At this point it’s a good idea to repeat the other person’s name – “Hi Dylan, it’s nice to meet you.” So you may be thinking, “What’s the big deal? I already know this stuff.” You would be amazed at how many entrepreneurs don’t know how to shake hands! Oh, and one other thing. When wearing a name badge, stick or pin it on the right side – not the left. This way, when you reach out to shake someone’s hand, it’s easy for them to see your name badge.

We tend to sit a lot in the business world. Our days are consumed with meetings and there are many levels of unspoken communications constantly occurring while we are seated. Are we rocking in our chair? Do we have a fidget-prone foot or leg? These movements can be distracting to others and may lessen the impact of what we have to say. Are we slouching in our chair? Is our phone in our lap and are we looking down for extended periods of time as we check e-mails, texts, etc.? As entrepreneurial leaders we want to set a good example for our team. Good posture and ongoing attentiveness sends the right message.

Finally, I can’t overemphasize the power of the SMILE and regular eye contact. This form of non-verbal communications puts people at ease and is vital to establishing a positive rapport.

Even though we may have learned about body language and non-verbal communications long ago, it’s always a good idea to periodically review and refresh. Better yet, spend a few moments to teach a youngster what you’ve learned.

You can also listen to a weekly audio podcast of my blog. What you hear will be different than what you read in this blog. Subscribe on iTunes or wherever you get your podcasts. You can also click on this link – Click here to listen to Audio Episode 82 – “No” Flippers.

This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.