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Are You Making Parts of Your Business Too Complicated?

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Stop making left turns when you can take a right to smoother sailing
October 19, 2010

 

 

 

 

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Earlier this year I was coming home from taking my two daughters to a bowling party. A friend, Michael, who lives near me and had a daughter at the party as well, left at the same time. I made a right out of the parking lot and Michael made a left. Thirty seconds later my cell phone rang, it was Michael who asked: “Jeff, why are you taking the long way back to your house?"

We talked a bit more and discovered that unconsciously we each took the same route to the party, which was basically either going straight or making right turns. On the way home, I went a different path that was also going straight and making right turns. Michael, reversed his path and thus ended up making a series of left turns (or to be more precise several jug handles – it’s a New Jersey thing as is the law not allowing you to pump your own gas, but I digress)  to get to his house. We talked more and discovered that my way back was a little faster. An even bigger difference on this short drive is that I described the ride as “easy” and Michael described the ride as “stressful.”

It turns out that not making left turns has been implemented as a company strategy by UPS to save money, time, and gas while at the same time enable UPS to be a “greener” company. Basically when in doubt or planning a trip, make a right turn and you can expect the ride to be shorter, consume less miles, and as my friend Michael learned, less stressful.

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I find that many business owners unconsciously are making left turns in their business, which can impede their growth and add stress. What’s a left turn in business? 

For instance, complex contract terms or billing arrangements with clients or partners where the language is either unnecessarily onerous or complex. Although some clients and partners will sign these agreements, it can turn some savvy ones off or involve unnecessary negotiation and sometimes even worse, legal fees, that if the contract was constructed simpler from the beginning could have been avoided.

The general "Right Turn" rule is: if you were the other party, could you easily understand and sign the contract with little to no changes? If not, you’re guilty of making a left turn in your business which could be hurting your company’s value.

As the business owner, be on the lookout to turn left turns in your business into right turns. In the long run you will end up with a much more valuable business with much less stress for you and your team. 

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Author Information:

Jeff Silbert is the managing director and founder of Order of Magnitude Group, an advisory firm for ambitious CEOs and owners seeking to obtain game-changing valuation growth for their business. Order of Magnitude Group generally works with a select group of clients located between New York City and Philadelphia. More information is available at www.oomgroup.com

 
 

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