Being a Peaceful Warrior – Staying Calm in the Storm: WarriorTalk Podcast

Not long ago, we stumbled upon a blog post by Jonathan Fields called “Embrace the Thrash.”  In it, Jonathan discusses the stressful challenges of building anything new.  We loved it, especially the word “thrash.”  It really describes what almost everyone encounters when starting something from scratch.  It’s hard to describe, but you feel it and you know it’s for real.

In this new podcast, Dave Jenks discusses this “thrash” post and what he has done to help get through tension-filled times.  He shares the mindset and the  pragmatic techniques that minimize the stress and maximize the success.  In the end, he shares the four classic books that have guided him and why they are so helpful.

You can read Jonathan’s blog post here.

Books We Talked About:
How to Stop Worrying and Start Living by Dale Carnegie
A New Guide to Rational Living by Robert Harper
Feeling Good: The New Mood Therapy by David Burns
How I Found Freedom in an Unfree World by Harry Browne

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WarriorTalk: Dave’s Race Across the Sky – Lessons in Enterprise from the Leadville 100

On August 11th, Dave competed in the Leadville 100 mountain bike race.  It is called the “Race Across the Sky” because it is held in the Rocky Mountains.  It starts at 10,152 feet and it goes up 12,505.

In this Warrior Talk podcast, Dave tells what it was like to ride in this amazing event, how he did and what he learned. It’s a compelling story of challenge, determination and self-understanding.

The Leadville 100 is also a wonderful lesson in entrepreneurial success. From its founding by Ken Glouber in the 1980s to its reinvention by Bahram Akradi in 2010, the event is a role model for business success.

In this 20 minute podcast, Dave shares with us the entrepreneurial lessons he learned and the ideas we can use.

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Dollars and Sense

 

Financial Analysis may sound like a daunting task to some people, especially if the subjects have never really been explained to them in a common sense way.  I had an opportunity to teach a Finance student of mine what I like to call Common Sense Financial Analysis in 20 hours, and within that 20 hours, I’m confident he learned more than in four years at our prestigious local University.

Essentially we reviewed the three critical financial statements, the components of each, why those components were important, when a company reported, to whom they reported to, and essentially, what information you could get out of the numbers you were given.   Sure there are a million ratios and terms to make things sound fancy (like the beloved weighted average cost of capital) but common sense is where you start, and ironically, once you understand basics, the rest comes relatively easy.

 

Boiled down Financial Analysis:

 

An Income Statement tells you whether or not a company (through selling its goods or services) is making money or not.  Extended analysis will shed light on revenue trends, expense management, margins, consistency etc, but essentially it’s called a Profit and Loss statement because that’s exactly what it tells you:  during a period of time, did this company experience a profit or a loss.

 

Balance Sheet tells you at any given point in time, what a company owns, what it owes, and the difference, which is what it’s worth.    If your house was on a balance sheet, what you own (your asset) is worth say $100k.  What you owe (your liability) is $80k, and what you own (your equity) is $20k.  What you own, less what you owe, is what you are worth.   Assets- Liabilities = Equity.  Or on a balance sheet Assets = Liabilities + Equity.   They must equal so the sheet balances, hence the name.   Extended ratios from the balance sheet will tell you if a company is too leveraged (borrowing more than they should), has a good cash cycle (A/R and A/P analysis), Liquidity (can they pay their short term bills) and insights into ownership structures (is the company financed through stock, borrowing, owners capital etc).

 

Our third statement, a Cash Flow Statement essentially tells you, again over a period of time, what inflows (sources) of cash you had over that time, and what outflows (uses) of cash you had.  The interesting thing about a cash flow statement is it is created by the change of the balance sheet from one period to the next.  So, changes in what you own (buying or selling) would be uses or sources of cash.  Changes in what you owe (borrowing or paying off) would also be sources or uses of cash.  Changes in equity (selling stock, buying stock, and investing capital for example) are also sources and uses of cash.

 

As you can see, this is not rocket science, but you would be amazed at the number of financial and non financial people that can’t make these simple connections to their work and businesses.  The really cool thing about business financial statements is that they can be applied at a personal level as well.  You can calculate your personal ‘profit or loss’ for a given year, your personal net worth on your balance sheet, and your personal cash flow statement (changes in your balance sheet) over time.

 

Not understanding your financials is like driving with your eyes closed.  Sure you may be able to make it down the street, but I wouldn’t recommend the highway.


 

 

 

 

The Magic of One Good Idea

I came across this story on the internet, and it is a wonderful example of how one single good idea can have an immense impact for a business.  If you are still thinking ‘inside the box’, this story will inspire you to climb out! 

One of the successful businessmen I sought out at church for advice in starting my own business – is a 90 year-old gentleman named Floyd. Some 20 years ago, he and his nephew, Tom started a small manufacturing company here in town that makes kitchen blenders.

To test their blender’s durability – Tom would often ram a broom handle into the glass container – to see if it would “blend”. This little quirk of his would become significant later.

For 15 years or so, they had moderate success locally selling their blenders. Then, 5 years ago – along came an internet phenomenon, called “YouTube”. The marketing department suggested Tom & Floyd make their own commercials for YouTube.

Someone decided the image of Tom “blending” a broom handle might be catchy – so in a small room at the factory, they filmed Tom and his broom. They had him blend other objects – like a Chuck Norris action figure, a gun, a live video camera, an iPod . . . Their commercials went “viral”. Do a YouTube search for “Will It Blend?” and be prepared to laugh out loud.

Their YouTube commercials get tens of millions of views EACH. Last year, their little company, Blendtec did more than $50 million dollars in business. Tom & Floyd are recognized all over the world and have appeared on TV shows from Good Morning America to The Tonight Show.

It all starts with one good idea.   What’s yours?