Category Archives: Uncategorized

Business Plan

At Upstarta meetings we’ve explored the concept of business plans.

In a “traditional” business, you need a business plan because a bank will require you to present one. Since an Upstarta doesn’t go to the bank for a loan or credit, we can re-assess what a business plan should look like to work for us, or even whether to have one at all.

What we concluded is that it’s useful to define your general direction, but the level of detail that a bank would require in certain aspects is not something you need to waste time on. You need to, as always, consider the possible consequences of decisions and structures you set up.

We also know that markets tend to find products, so an early plan (before entering the market) to market/sell a particular product will quickly be obsolete or look like total nonsense. So you plan to explore in a low-cost manner, maintaining flexibility. Make failing steps cheap and fast, to focus on avenues that are promising/viable.

Do you have examples of this from your own experience? We’d like to hear!

Remission Advice

Australian companies have this strange habit, they issue “remission advice” notifications when they’ve paid an invoice.

I suppose the practise comes from back when a cheque would be in the mail for at least a few days before arriving, and after that, paper bank statements issued once a week. But does it make sense today? I don’t think so, and here is why:

  1. credit card and some Paypal payments are instant.
  2. bank transfers only take 1-2 days.
  3. any self-respecting business has electronic banking and will view it almost daily.
  4. cheques are sometimes still issued by companies, but from my experience it’s mainly abusively for cash flow reasons.
  5. similarly, companies issue remission advice to say they’ve paid, and then it still takes over a week to see anything show up. This is because the advice notice is often created by their own accounting system. Essentially it’s as a good as “made up”. There again it’s just a cash-flow trick.

You know what’s unequivocal proof of payment? The recipient actually seeing the money in their online banking. It’s the only proof any of my businesses accept, and that’s explicitly stated policy.

Some clients still send remission advice notices. It can be entertaining to see the discrepancy between notices and the actual arrival date of the money. Basically the accounts payable people of those businesses go out of their way to prove that they’re lying. I don’t understand why they would bother doing a silly thing like that, but perhaps they deal with more gillible accounts-receivable departments, and hey it’s accepted practise!

How do you handle accounts receivable?

Class of 2013: Four Things You Must Unlearn Immediately

Original article at: https://www.linkedin.com/today/post/article/20130521093557-314058-class-of-2013-four-things-you-must-unlearn-immediately (copied in full here as the url doesn’t look like a permalink)

Daniel Shapiro wrotes: “I learned a lot in college, not all of it right. Here are some things you learn in college that I had to unlearn to be successful at work.

1. The longer the paper, the more you know

I was assigned many long papers in college. Six pages on natural selection. Eight pages on Plato’s Republic. Ten pages on the rise of the gold standard. For each paper, I’d reach a point where I’d run out of real content and needed filler to hit the page target. I’d spend hours finding those pages. I’d even change the fonts and page margins (it’s embarrassing to think about).

At work, no one has time to read 6-10 pages. It’s all about the summary. As a manager at Bain & Company, I’d write, re-write and re-write 1-page executive summaries until I’d boiled them down to the crux of the issue and only the essential supporting points. Those long hours were some of the most valuable, and hardest, of my job.

My advice: Write clear and concise summaries and supporting points. The shorter the better.

2. Partial credit for half-baked answers

I was a math major and often came across questions I couldn’t answer. Rather than leaving the space blank, I’d fake it. I’d write down something that looked reasonable, but I knew was wrong, hoping that my teacher would give me partial credit – perhaps 5 points out of 10, which was definitely better than 0 out of 10.

At work, acting like you know something you don’t is perhaps one of the worst mistakes you can make. In my first two years out of university, when clients would ask me for an answer I didn’t know, but I believed I should, rather than saying “I don’t know” I would fake an answer. That got me into more trouble than you can imagine… it nearly got me fired once.

Partial credit for being partially right doesn’t exist in the workplace. In fact, leading others to believe you know the answer when you don’t, is far worse than no answer.

My advice: Say what you know and admit what you don’t.

3. Getting help = cheating

Giving or getting help from someone in school can get you kicked out. At work, it’s just the opposite. It’s essential. When I was a manager at Bain, I would ask recent university graduates to build a financial model. When they showed me their work, I’d ask if anyone helped them. Some would respond, proudly, “no, I did it myself”, not realizing that was a bad answer. The right answer was, “Yes, and I made a few changes based on the feedback I got.”

If you’re not learning from your colleagues and teaching them what you know, then you’re not doing your job!

Advice: Give and get help liberally.

4. Work, work, work, work… turn in assignment

(Perhaps I should have written. Wait, wait, wait, work, work, work, turn in assignment)

The work process in school is:

  1. Get an assignment
  2. Complete assignment in set period of time
  3. Turn in assignment and
  4. Receive grade.

That process is designed to assess your capabilities more than create great work product.

First, getting feedback early and often is key, particularly when you’re new to the job. You’re not being tested to see how much you can do alone (like school). Your manager should expect you will need help. I remember several “proud” moments when I showed my manager my fantastic piece of analysis which I did “all by myself” … to which my manager replied “Great. But you would have been done a week earlier if you’d asked me for a few tips.” Oops.

Second, the more involved your manager is in your work process, the more likely he will have confidence in your outcome. Also, if the assignment provides harder than expected, your manager will understand why, and help redirect your efforts earlier. The longer it takes to identify a problem, the more challenging it is to change direction.

By the way, believe it or not: Asking for help is not a sign of failure at work — it’s a sign of confidence. Really.

My advice: Get your boss’ feedback early and often.