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trekking
practical strategic thinking and action
newsletter issue #75
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Don't write a book for the money
When we decided to write our
recent book, Intangible Capital, we felt fortunate that our agent found us a
publisher that paid us a modest advance against royalties to finish it and get
it out into the market. To us, our book is a big deal. But, in the scheme of
things, it's still a huge gamble.
Each year in the U.S., over 150,000 new books are published by
major U.S.
publishers. Add to that figure the numerous books that are published privately
through on-demand vendors. That's a staggering number of books - yet on average
each book will sell just 500 copies, which is typically not even enough to
cover costs. So you can imagine how few authors can actually make a living from
their writing alone.
Did you get that? A unique idea that is worth the interest of a
viable publisher, months of writing, editing drafts, thinking and re-thinking,
proofreading, taking time away from your real business - all this for a modest
check that is still only an advance against future royalties? Even if the book takes
off, which we believe ours will, it is certainly not going to make us rich at a
few dollars a book.
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a different approach
Now that I've bad-mouthed the
book publishing route, why then did we do it? Honestly, it's because we felt so passionate
about this topic and both believed that we had something important to share that
we decided to make the sacrifice together.
In our consulting business,
and in the world around us, we have seen the trend away from traditional
manufacturing business to knowledge businesses and the inadequacy of current
accounting and management systems to accommodate it. Think about it, 70-80% of
the value of the average business is made up of knowledge assets (intangible
capital). This shift affects every business from the store on the corner on Main Street to the technology
giants. We are utterly convinced that American business cannot succeed by doing
things the same old way. It is critical that we begin using new tools to see
and manage these knowledge assets explicitly.
While the economics of book
publishing are not that compelling, for us the payoff will be working with
companies to help them identify and improve their intangible infrastructure. By
doing so, we can revitalize their competitive position, helping them spur new
business and growth, and taking innovation to new heights. A stronger, growing
business translates into more jobs and an improved economy - hopefully leading
us in the direction out of this seemingly never ending recession.
What about your business?
What's your passion? Do you care enough to take the time to share with others what
you know?
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reading list
Switch: How to Change Things
when Change is Hard by Chip Heath and Dan Heath
Chip Heath and Dan Heath wrote
the best seller Made to Stick about how to connect with ideas in 2007.
In this new work, the authors
address the topic of change and the mental and emotional obstacles to achieving
it. Using a series of examples gleaned
from behavioral change specialists, to the corporate world to Alcohol
Anonymous, the Heaths provide a number of common sense, yet thought-provoking
techniques.
 The brothers use the unique vehicles
of describing the logical and emotional sides of making a change as the rider
and the elephant. The rider, representing logic, is responsible for planning
and direction. The rider must coordinate
with the elephant, that is responsible for the energy to get tasks (change)
done.
The brothers break down the
change process in a very manageable way: find the bright spots to pattern the effort after, script exact and
achievable steps toward the goal, and motivate people as progress is made
toward goals. It's an effective approach to a difficult topic.
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announcements
On Thursday, July 15, the
Exit Planning Exchange - Boston will host a breakfast program at Babson College in Wellesley,
MA entitled, "How IT affects the
Value of your Business". Dan Adams, Founder and President of New
England Network Solutions and Stephen Lipka, President, Avatar Strategic
Partners for an engaging panel discussion on Information Technology and how it
impacts the value of a business. Mike Maak, Founder and President, NorthEast
Business Advisors will moderate.
The panel will discuss the difference between backup and business
continuity, operational and strategic IT issues, how to pass the "Bus Test," a
P&L and Balance Sheet view of IT, ways to augment revenue and reduce costs, and
several key governance and strategic planning recommendations that will
incr ease the IT value proposition.
On Thursday, August 11, Ellen
Kaplan of Possibilities @ Work will run a roundtable at Babson College
on Building Successful Collaborative Relationships. The roundtable will explore how a successful exit plan requires
a multi-disciplined approach. A
partnership strategy can expand offerings to clients and increase potential
earnings. The session will explore the
success factors in selecting and managing the right partners among trusted
colleagues. Kaplan will offer the tools to evaluate and maintain
profitable relationships.
Finally, we'll have a kickoff event for a new XPX chapter in Philadelphia on September
15. Planning is underway and we'll have
more details next month.
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book update
Jeremy Phillips, a blogger on IP Finance, wrote:
"A month ago, in "Reputations and Bottom Lines", I mentioned the publication of Mary Adams' and Michael Oleksak's new book Intangible Capital: Putting Knowledge to Work in the 21st-Century Organization. A copy of this little tome has now arrived in my letterbox and I've had a chance to leaf through it.
It's much more fun to read than the rather solemn title suggests, combining strands of history, economics, management, metaphor and common sense, personal experience and anecdote. It's also a monument to the metamorphosis of management and asset management philosophies from the age of bricks and mortar to the world of the internet. It won't provide the answers to all your questions (how many books of 150 pages do?) but it gets the reader into the mindset for asking the right questions. Since the right answers are (i) business-specific and (ii) change in time, while the right questions can be applied more generally and are less subject to the vicissitudes of commercial fashion, this is altogether a greater benefit to the reader."
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Trek Consulting is proud to announce that our Trekking newsletter was named a 2009 Constant Contact All Star! |
about trek consulting
Trek works with owner-managed businesses to develop and execute action plans for
growth. Trek also works with the owners to prepare for their successful
exit by coordinating the resources necessary to increase and preserve
the firm's value, creating the succession plan and assembling the right
transaction team, financing and post-transaction plan. Our clients report improved market focus, greater
revenues, better margins and increased profits. To learn more about
Trek Consulting and how we can help you improve your company's results,
visit us on the web at www.trekconsulting.com or call us at 781.729.1008. |
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