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Beware the Mid-Year Urge To Revamp Your Strategic Plan

Leaders Evaluate Idea FirstHard to believe we are looking at the second half of 2015! That means it is time to review your strategic plan and your business plan.

Not a multi-day, multi-hour exercise

The mid-year review is not like the process you go through when you are setting up your strategic plan for the year. In the yearly planning process, you are looking at a longer horizon since it includes where you are going to be in three to five years. Within the overall strategic plan, there is a section for the year-long goals and aspirations. This is the part that you are reviewing in the mid-year meeting. The information from the living business plan lets you know if everything is on target.

Temptation lurks here

 Part of the role of CEO is to keep an eye out for opportunities. It is likely that as you go forward with your growth plan, you spot possibilities. The other side of this is when targets are not being met and it seems as if the plan is not working. One temptation is to chase the possibilities. The other temptation is to ditch the plan and make a new one.

Thinking shortcuts could interfere with effective decision making

It cannot be said enough…do your homework. We have a tendency to seek out information that corresponds with our thinking. While it does work in our favor because we can filter through the noise and get the data we need. It can also work against us when we allow ourselves to discount information because it does not fit in with our beliefs.

There are a few ways you can circumvent this so you and your team can make a grounded decision:

    • Involve your team. Have someone else do the research on your great idea. Another set of eyes, particularly from one of your team members, is a good way to sift through your own biases and hear what is possible and probable.
    • Do a quick pros and cons list. This can be a useful way to find out what you know and don’t know. It highlights if you have enough capital, in-house expertise and resources. By keeping it quick, it supports telling yourself the truth and what needs more research.
    • Know what your siren’s call sounds like.We all have areas that get us excited. It might be working internationally, noticing market trends, certain subjects that are our expertise or something else that you would love to do more of. Like Odysseus, tie yourself to your mast by reminding yourself that there is an agreed-upon plan in place. This also prevents you  from undermining your team.
    • Use a coach or mentor. Conversations with either a coach or mentor can help you hear your thinking. Plus you get the added bonus of questions that provoke deeper thinking.

Most small to mid-sized businesses do not have the level of capital, talent or other resources to go off the plan without running the risk of harming or even killing themselves. The idea may end up having merit and fits with the overall strategic plan. On the other hand, it might be simply the heat of the moment and adding some logic to the decision process illuminates this.

Creativity and science

Leaders who are creative foster the same in their organizations. It is a bit like the scientific process. Your idea is like a hypothesis. The testing part is much like running a scientific experiment. The four suggestions above show if the idea is possible and fits in with the overall direction of the company. The idea is to not stop seeking out new possibilities or even making necessary adjustments. It is simply to keep the temptation of revamping the year-long strategic plan simply based on a gut response.

*Image from Fotolia by densismagilov

 

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CEO Mindset-Could You Kill Your Darlings?

strategic sacrifice, business, CEO MindsetSmall businesses are often touted as being nimble or agile in their response to market and industry changes. And this is true to an extent as long as the decision maker(s) are willing to manage their uncertainty and be honest with themselves.  For many leaders and their teams, it means asking difficult questions and risking conflict.

*Jane and the darlings

One of my clients (we’ll call her Jane although that is not her real name) has recently taken on the role of CEO in her family’s manufacturing company. The company is currently experiencing a slowdown despite having products that sell well. Jane wants to steer the company away from the piecemeal approach they have taken with e-commerce and target specific customer segments that are more likely to be profitable and play to the company’s current strengths.  In a recent team meeting, the response was mixed. On one hand, the company could use the revenue. On the other hand, the current e-commerce strategy  does not produce predictable sales. It  ties up energy and resources that could be devoted to marketing to more specific customer segments who are more likely to create sustainable revenues. And yet…there is an emotional attachment to this e-commerce approach.

But that is not all. Part of the team has been invested in landing a major distributor in their industry. The big win will make a huge difference in the bottom line. There has been some connection made but nothing concrete. It is so tantalizing to continue to approach this big distributor.

Maybe the darlings have to go

Jane’s dilemma is guiding the team to take a hard look at the current ecommerce strategy and the not-quite relationship with the big distributor and ask if it is really worth the small percentage of income it produces or the hope of income. It is not the information. In black and white, it is clear that focusing only on specific target customer segments will position the company better and increase revenues. The team has to decide whether sacrificing either the ecommerce part of the business, letting go of the uncertain relationship with the big distributor or both are the best strategic choices.

In John R. Bell’s book, Do Less, Better: The Power of Strategic Sacrifice In a Complex World, he writes about making short-term strategic sacrifices to set the stage for long-term growth and sustainability. In fact, he writes about how he had to eliminate a line of products (a money-making one, in fact!) to simplify and focus his company’s growth during a turnaround. A gutsy move that paid off!  While logically one might see how a particular course of action is not producing a certain result, there is still the emotional side with which to contend. The catch here is that making a gutsy move is one choice and could be the best choice but it is also the scariest and most uncertain. This emotional stuff is where most of us get stuck.

3 Common obstacles that prevent us from strategic sacrifices

We have certain cognitive biases that create blinders and they are fueled by emotions. You may have even noticed them in yourself and called them mental blocks. They are the same thing. We experience a moment when we simply cannot conceive of another way.

  • Sunk cost fallacy. I’ve written about this one before but it has a way of convincing us to continue a product line or a course of action simply because we have invested so much time, money and/or energy. There is a sense that “I gotta see this through” even when it is obviously unsustainable.
  • Don’t want to get it wrong. Also known as loss aversion. We actually perceive loss in similar ways to how we perceive physical pain. It is much more difficult to let go of something that is almost working. It is even more difficult to let go of something that is working. Pruning away certain revenue lines might feel painfully risky.
  • Overconfidence.   You may have too much faith in yourself and/or your team so you follow the path that nothing much has to change and it is just a hiccup. Simply put,  you (or your team) disregard new information because it does fit your mindset. Another client of mine has a tendency to tell me that he has led his company through turbulent times before and balks when I suggest that there are different circumstances in the current situation that need to be taken into account.

It is not that people want to make bad or shortsighted decisions. When it comes to getting rid of something you are emotionally invested in, it is tricky to circumvent our habitual thinking.

Do you kill your darlings or hold onto them?

Your emotions are going to play a role in how you choose whether a product line or service is terminated even if it is clearly time to stop and determine what still fits the business goals and the current vision. There may be products or services that were the lifeblood for the company in the early days or they may have taken so much energy, time and resources that you want  them to pay you back.  They could be the pet project of someone high up in the company. It may even simply be inertia that keeps certain products or services in place. Think of those as a kind of “we’ve always had them and people still buy them.” All of these become your darlings over time. Another thing that keeps people  holding onto their darlings is the feeling that any revenue is better than no revenue during turbulent times.

Some questions to get you started in evaluating your darlings

The most natural time to have these conversations is during your quarterly reviews. You are already evaluating the progress of the business goals. Another time that makes sense is when you are beginning a transition of some kind.

  • What are the darlings in our products and services?
  • How much does each one contribute to current business goals?
  • Why are we still offering them?
  • If we didn’t have them, what would the company be offering instead?
  • What emotions and thoughts do you notice when you ask these questions?
  • What actions do we need to take now?

The discussion these questions should prompt will not be comfortable. Remember we put an emotional investment into these particular products and services. Our fears of change, failure, success, consequences and punishment as well as potentially disappointing or angering others are triggered when we start to critically think about the darlings. However, without even asking the questions, you may be stifling innovation and inviting stagnation. Sure, there is a risk of alienating someone or even choosing the wrong action. Leaders who use the CEO Mindset tolerate the discomfort and consciously choose what stays and what goes.

What would you do if you were Jane and her team?

How have you examined your darlings? What was the result?

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Feel Like You Have No Time? Try These 6 Tactics

Managing your time when your day is filled with meetings, work on specific projects, business development and the inevitable interruptions is one of  the biggest challenges my clients report. All of  the leaders I coach are the CEO-type person in their small to mid-sized company so the demands on their time and energy are simply part of the day-to-Task Management, organization, leadersday experience. They often discover that it is not really about managing their time but more about managing the tasks.

When everything is important, where do you begin?

Leading a company comes with certain responsibilities. It is no secret that time is limited and there is plenty to do. Instead of managing your time, think about managing your tasks. It is a good time to use the CEO Mindset© and note what are true priorities, opportunities to delegate and what needs to be postponed no matter how exciting it seems at the time.

Living example

Matt (not his real name) is the president of his small company. They do a combination of research for private companies and governmental agencies plus develop products from their research. On any given day, Matt could be contributing his technical expertise, meeting with potential investors, overseeing the project managers, following up with the manufacturing of prototypes, meeting with customers or dealing with the administrative parts of small company. The list goes on and on.

One of Matt’s challenges is that he is not a natural checklist kind of guy. He certainly is aware that organizing his time makes a difference to his direct reports and to the financial growth of the business. A part of our coaching has been to find his best method that balance his natural tendencies with getting his work done.

Does Matt’s story sound familiar?

The particulars may vary from one leader to another but the experience is still often reported. It is easy for everything to feel important. There are many important tasks that need to be done. So you could fill your time with trying to do them all. Or you could do something more organized and focused. Productivity is less about time and more about working smart.

  • The Pomodoro Method- This is a simple method of focusing on a task needs only one piece of equipment…a timer. Set your timer for 20-25 minutes and simply focus on one task or one part of task. When the timer sounds, you end there or set the timer for another 20-25 minutes and resume your task. Great for working around those interruptions and meetings!
  • Be absolutely strict with setting priority tasks- Not everything has to be done in one week nor even in the current month. Identify what is truly a high priority task and focus your plan on that. You can follow this by moving other items up the priority list as tasks are completed.
  • Delegate, delegate, delegate- This cannot be said enough to leaders of small to mid-sized businesses (I’ve written about this before). You have been a hands-on person because you had to be but your company needs something different now. Identify which tasks you must do or are best suited for and give the rest to the appropriate team or staff member. Take it from one of my clients, you don’t have to be only person who knows where to find the Ice-Melt.
  • Apps on your smartphone, tablet or laptop- There are some great tools out there like Trello, Asana or EverNote that provide ways to track your tasks and tasks assigned to others.
  • Use a sticky note with 3-5 daily (or even weekly) tasks- Sometimes handwriting your list is a more effective reminder than an app. The downside to using an app is that it can be out of sight, out of mind. Using a sticky note to your laptop or some other prominent place is a visual reminder and the act of writing can be a memory aid as well.
  • Use a task log like the CEO Mindset© Task Management Log- Kudos to Matt for inspiring this tool! It is also a handwritten way to keep yourself on task. This month-long organizer enables the user to keep track of both the tasks you are responsible for and any tasks assigned to a member of your team or staff. To use the log, you write in all of the tasks you are organizing. Then you note who is designated to complete the task, if you have to provide an accountability check in and check if it is due this week, next week or by the end of the month. There is a final category which denotes when the task is completed. Post this somewhere highly visible so it is a visual reminder. You can download a version of the CEO Mindset Task Management Log here.

As with all of the tools, avoid biting off more than you can actually manage. They are all about setting priorities. When everything is important, you must identify which things are more important than others. Another caveat is the number of tasks you assign yourself. Just this week, Matt identified 8 things on his weekly list. When I asked him about them, he explained that four of them were simple progress updates. Most of the time ( and most of us) manage three to five priority tasks per week. Whenever possible, set up tasks into chunks of work so you can easily work on something and walk away when necessary.

Less about time management and more about task management

This cannot be said enough. Choose a tool that makes sense to you (modify it if it helps) and make it a practice. Matt has discovered that he is much more focused and clear about what tasks he must do. He has also discovered more clarity about what can be delegated. Another plus for Matt is that it has strengthened his ability to see what is on the short term horizon so deadlines not surprise him. Growing a small to mid-sized business takes concentration and effective decision making. Using a tool that supports better task management will support you staying fresh, alert and organized.

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5 Reasons Delegation Is So Hard For Leaders

business owners, leaders, difficulty with delegationYou have probably thought about delegating some of your work to others. Maybe you have had these thoughts:

“I don’t time to train someone to do this right now.”

“It would be quicker if I did it.”

“I’ll just have to fix what he did later.”

“But they won’t do it like me.”

Sound familiar? In my last post, I asked if you were developing the right skills. Since that post, people have mentioned how challenging they find delegation. Or course, the first step is to notice that you are trying to do too much or even doing things that are simply not necessary for you.

The hurdle for many a business owner

For business owners and executives, one of the key realizations is that there are different kinds of demands on your attention and time as the business grows in revenue and sophistication. And it is hard to know what to delegate, when to delegate and to whom. This difficulty stems from our thinking and feelings about our identity, fairness, perception and a host of other things. Yet, as Gene Marks points out in his post, not delegating creates a handicap for both you and your organization.

Take a moment to think about the role of a CEO

No matter what your title actually is, you are doing the job of a CEO. Here are the basic responsibilities:

  • Sets the vision and tone of what “X Company” is all about
  • Designs and explains the strategy of how the business will develop and grow over time
  • Seeks out the talent to make the above happen
  • Keeps everyone accountable to the stated business goals Makes sure that revenues (and even profits) are healthy

Essentially, your job is to lead and manage. When you have been one of the primary people responsible for the products or services and looking after the day-to-day operations, the adjustment to a different role is not necessarily clean or clear. Yet, without delegating mindfully, it is much more challenging to be adept at leading, managing and thinking ahead to how the company can grow and respond to the marketplace.

Reasons delegation is so hard for leaders

That’s all well and good, you might say. We know that delegating certain aspects of our work is key to becoming more successful. But that is our rational side talking and…well, that isn’t always running the show. If we look at the statements I wrote in the beginning of this post, what is underneath all that? Beliefs that may have been true at one point or were never true but have sunk into the backs of our  minds and influencing our decisions.

  • Being busy means I’m doing work– This belief confuses the idea that serving your customers or creating the product or service is the only way you can justify your existence. You’re not shirking; simply shifting gears to do other tasks that are important to the business goals.
  • Asking for help or expertise is a sign of weakness– First off, it is humanly impossible to know everything. Secondly, you hired talented people to be your team and/or staff. Leverage their capabilities.
  • Need/Desire for control- This isn’t always articulated clearly. However, most business owners/ executives have a long history of making things happen with their own skill and determination. A company will not be successful if the leader micromanages how things get done. Providing planned accountability is a better way to allay your own anxiety and support the work.
  • Lack of faith/trust- This is more common with leaders new to their positions. It is understandable that you want to minimize the risk of having someone else do the work. However, your team/staff will pick up the message that you don’t believe they are good enough. Take the time to train and mentor your team so they understand both the culture and brand of your business.
  • Past experience– It may seem disconnected but our childhood experiences can often influence our leadership and work styles. It is not so uncommon to carry a belief that you are responsible because you were the eldest child, you need to contain things because you had an alcoholic parent or that you need to prove you are good enough. These things can influence how we interact, trust and assign responsibilities to others.

 These are five reasons why delegation is so challenging and there are more. The main thing here is to ask yourself what is driving your reluctance to delegate.

Have a conversation with yourself

Listening to your thoughts and feelings can give you information about whether you are listening your irrational side. If it is one of the reasons listed above, get as explicit as possible with your belief. How true is it? Why is it true? It may even be worth having a conversation with a mentor or a coach. The best CEOs know self-awareness prevents a lot of unnecessary stress. Becoming clear with why delegation feels so difficult supports your growth as leader and manager.

Aside from weaknesses in a team member’s skill set, what are other reasons why business owners/ executives struggle with delegation?

Related posts:

5 Tips For Better Delegation

Managing the Small Business Owner: Control, Influence and Limitations

6 Ways SME Leader’s Role Changes When Growing Internationally

 

 Image: ©Lucien_3D/Fotolia

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CEO Mindset: Are You Developing the Right Skills?

How do business owners/ executives encourage or even inspire their team without being a good model? According to a recent survey conducted by Jack Zenger and Joseph Folkman, only 9% of their executive respondents chose “practices self-development” as their primary skill a leader needs. Becoming CEO of your small organization is a process of learning and developing as you understand your changing role, the roles of your team members and how the business works relies heavily on your ability to develop yourself. New challenges crop up all the time. Self-development is happening, one way or another.

James* (not his real name) is typical of many small business leaders. He was telling me in a coaching session that he was having difficulty moving out of his typical “I’m one of the team” style to one where he is out of the office meeting potential partners, looking at possible acquisitions and prospective higher level customers. He is excited about where the company is going but he is feeling a little strange supporting his team as they become the safety net for current customers and day-to-day operations. James, like a lot of blossoming CEOs, is discovering that his communications skills need some enhancing so his focus is on identifying his expectations, how he influences the corporate culture through his actions and words and making sure his messages are clear.

Is self-development misunderstood?

You may have read that meditation is the latest leadership and management “thing.” It is easy to imagine that self-development is only about deepening your self-understanding through some sort of esoteric process. However, it is something you can do on a daily basis that goes beyond the latest fad or even deep self-exploration. The kinds of skills needed by business owners/ executives often depends on the company’s growth plan. Like many of my clients, James is learning how to delegate some of his responsibilities to particular team members. To accomplish this, he had to identify his beliefs about where he fits into his organization, how he trusts his team and determining the strengths and weaknesses of his team and staff. This is all self-development (and he is learning quite a lot about himself along the way).

Four questions for self-development

Whether you are the sort of person who seeks out self-understanding on a deep level or not, there are probably skills that you would like to build up so you can be the best leader of your company. Frequently, the specific areas that a business owner/ executive targets for improvement are tied into the business goals. That saying from Marshall Goldsmith, “What got you won’t get you there” is a good reminder that each stage of your company will teach and enlighten you. Simply put, old behaviors don’t always get the same results and can even lead to failure. These four questions are a good conversation to have with yourself:

  • Who am I?
  • Where am I going?
  • Why am I going there?
  • Who is going with me?

Becoming a leader is an evolutionary process. Discovering how your thinking and feeling grows and adapts over time makes it easier to notice which skills need attention. This is all part of the CEO Mindset.

Are you developing the right skills?

Embracing the role of CEO is often one of accepting that you are a steward. Sure, you might be a key part of business development or a sponsor of a potentially innovative product. But your role is more the Shaper than the  Actor.  The “right” skill for you may be accepting the role of steward and dropping role of  technical expert or it could be speaking less and listening more. The “right” skill may be improving your presentation skills so you can pitch effectively to investors or a more sophisticated customer. Identifying and learning the skills you need for the next stage of your business will support your team and staff staying focused on the business goals and doing what they do best.

Related posts: What Stories Do You Tell Yourself While Growing Your Business?

Using the CEO Mindset For Smarter Communication

6 Ways SME Leader’s Role Changes When Growing Internationally

 

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The 15 Reasons Leaders Fail Their Small To Mid-Sized Businesses

Leaders, Small to Mid-Sized Businesses, LeadershipI’ve recently wrote about confidence and turnarounds which is certainly the toughest road any business leader can be on. But, to be fair, not everyone is is desperate straits with their small to mid-sized business. In talking with my clients and prospects, I’ve noticed that there are things that we do that make our work and leadership far more difficult than it has to be.

The 15 reasons (in no particular order)

  1. Keeping the business plan in our heads
  2. Too satisfied with progress of company and stop leading
  3. Not delegating enough
  4. Staying too tied into the day-to-day operations
  5. Avoiding difficult conversations
  6. Refusing to adapt to new circumstances and/or technology
  7. Procrastination
  8. Unclear vision or direction
  9. Feeling like you have to continue on a particular path, even if it is not working (sunk cost fallacy)
  10. Inconsistent communication skills
  11. Stop being curious
  12. Want to be liked more than anything else
  13. Avoiding fiscal oversight and responsibility
  14. Responding to too many crises and not stepping back to plan ahead
  15. Lack of personal and professional development

Did you see anything you might need to change?

It is safe to say that we don’t intentionally get in our own way or prevent others from doing their jobs. Sometimes we get into bad habits due to having a long career or simply not taking the time to reflect on who we are and where we are as people. So take a moment and look at the list. If you recognize something you’re doing, ask yourself if you want to stop. If you do want to stop, come up with an action to take or find someone who will help you adapt to something that works for you.

Wishing you every success!

About the author:  I’m Elli St.George Godfrey, executive coach and trainer who guides established small to mid-sized business owners and executives to be comfortable in their own skin. Change can be growing your business, expanding in the US or adapting to a new leadership roles. Visit my Services page to see how we can work together or schedule your complimentary coaching session here.

 

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More On CEO Mindset – The “Right” Habits & Less Ego-Driven Leadership

CEO Mindset, leadership, habits, leaders, Tweak Your Biz, KaizenBizAs some of the regular readers of this blog know, I blog on Tweak Your Biz and KaizenBiz as well. If you have missed my latest posts there, here they are:

Becoming CEO Of Your Small Business Means Finding “Right” Habits

For many successful small to mid-sized business owners, having the CEO Mindset is everything. While I’ve talked about how small business owners (even sole proprietors/ sole traders) are really CEO’s of their companies on Tweak  Your Biz and here, this is just the beginning.

Every day there are things we do or don’t do that influence the direction and pace of business growth. A lot of this is much more internal than it might seem at first glance. One area that is written about quite  a lot is the habits or common behaviors of  famous business leaders.  Reading these posts leads you to believe that if you just did these things, you would be successful. My post isn’t one of those posts. Often what is left out is the work and the business leaders did to find the “right” habits that work for them. So, before you think “if only I did X”, remember they had to do the work of finding what works for them. Becoming CEO of your small business means finding your “right” habits.

 

Is It Feminine Leadership We Crave Or Less Ego-Driven Leadership?

Once a week, I have the pleasure of leading a chat on Twitter called #KaizenBiz. (Shameless plug here: Every Friday at 5pm GMT/12pm ET/9amPT and all are welcome) If you are not familiar with this chat, we take business topics and apply critical thinking, enhance our skills and deepen our self-understanding. This past Friday (August 16, 2013), we looked at The Athena Doctrine: How Women (and the Men Who Think Like Them Will Rule the Future and the ongoing global conversation about gender, traits and leadership.  There is a perspective that the lack of women in executive roles contributed to the organizational failures that triggered the global recession.

Is there a female style of leadership? A male style?  Are people wrong in their rejection of so many men in decision-making roles as found in recent surveys? Could it be more likely that highly effective leaders of both genders exhibit the same traits? Read this post and add your thoughts.

 

Thank you

Thank you for taking a look at these posts, commenting, sharing or simply thinking about them. I look forward to sharing more posts next month.

 

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Great Leaders Develop Via Relationships with Self and Others

I saw an interesting tweet from Dan Rockwell (@LeadershipFreak on Twitter) yesterday.

“Find harmony within yourself before looking for alignment with others.”

It caught my attention and I thought, hmm…wouldn’t that mean you might spend not so much time with people? So I tweeted back, ” I saw your tip about finding harmony. Wouldn’t that be lifelong quest? Not sure can’t happen in tandem”

Most people spend a good portion or all of their lives seeking to understand themselves better. Leadership is a relational journey. It can be a journey to get to a position where you are in a one-up position over others. That may not be the most pro-social relationship but it does exist. For others, the key is being compassionate and competent in having the difficult conversations.

Great leadership comes from developing one’s maturity. Things like developing patience and knowing that one’s outlook and mood can encourage or limit the productivity and morale of the staff. But the more I think about it, the more it seems that time and experience season us as leaders. We see our foibles and warts when we bounce off other people. But it isn’t necessarily a negative. Sure, in the moment, it might be an unpleasant lesson about ourselves. But we wouldn’t see things so clearly without people stopping us in our tracks.

Managing conflict may be the greatest test of how leaders manage relationships. Click here to read more »

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Why Model Of Olympic Athletes Is Bad For Your Small Business

Olympic training negative for small business ownersAfter watching the Summer Olympics, it’s tempting to model the single-minded dedication and pursuit of being the best. Let me say this first, I love the Olympics! It’s extraordinary to see people who have dedicated themselves for a sporting event that only happens every 4 years. Their whole lives -diet, exercise, psychological training, competitions, downtime – are dedicated to improving their performance. Witnessing this performance is awe inspiring! And yet…this is a bad model for small business owners. Click here to read more »

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