IRS Auidts of Small Business Software Files

Posted on February 27, 2012 by in Blog

See the article here – 

IRS Auidts of Small Business Software Files

How the Growth Outliers Do It

Posted on February 24, 2012 by in Blog

 Here is an interesting article I wanted to share with you.  Keep these ideas in mind as you think about how to grow your business.   This article comes from Harvard Business Review.

 By Rita Gunther-McGrath

Few companies manage to prosper over the long-term.  Those that do are both more stable and more innovative than their competition.  Only a tiny percentage of large companies reliably grow the bottom line year after year.  Those that do share certain characteristics.  On the one hand, they are built for innovation.  They enter new markets before competitors do; they’re good at experimentation; they hold everyone accountable for new ideas; and they can move on a dime.  On the other hand, they’re extremely stable.  Chief executives have come up through the company; strategy and organizational structure stay consistent for long stretches; client retention is unusually high; and the corporate culture is strong and unchanging.  Those characteristics may seem contradictory, but stability appears to be what makes innovation and steady growth possible.  

Notes from the article: 

1. The industry did not matter.

2. The company size wasn’t necessarily a factor. 

3. Geographical growth in certain markets was not always a factor. 

4. Age of the entity or the industry was not always a factor.  

Rapid adapters

The growth outliers do a tremendous amount of experimentation and innovation.  They develop and deploy new technologies, move into new markets, explore new business models and even open up new industries.  They take on acquisitions and aggressively seek input from people and organizations quite unlike their own.  They rapidly adjust and re-adjust their resources and are comfortable moving executives and other employees from one role to another.  Unlike their competitors, outliers appear to make fewer big, high risk bets.

Other items that Outliers possessed to enhance success:

1.  Outliers focus on strategic acquisitions to get into new markets. 

2.  Outliers penetrate fragmented industries.

3.  Outliers execute central and well-coordinated decision-making.

4.  Outliers favor adaptability over pure efficiency.

5.  Outliers tend to be better integrated. 

6.  Outliers are usually stable, as well as flexible. 

7.  Outliers pay close attention to values, culture, and alignment of their employees, which turn to reduce turnover and retention of talent.

8.  Outliers do not change high level strategies quickly.

9.  Outliers have a reliable customer basis.

10.  Outliers keep their senior leadership stable.

 

Texas ACG Capital Connection

Posted on February 23, 2012 by in Blog

I am here in Austin at the Texas ACG (Association for Corporate Growth) Capital Connection with over 300 private equity groups from around the country. One thing all of these groups have in common is they are all looking to buy or invest in quality companies.

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The State of the World – a Framework

Posted on February 21, 2012 by in Blog

Here is a very thought provoking article on the geo-political state of the world; how we got here and why. This is from Geopolitical Weekly newsletter from Stratfor.

By George Friedman | February 21, 2012

The evolution of geopolitics is cyclical. Powers rise, fall and shift. Changes occur in every generation in an unending ballet. However, the period between 1989 and 1991 was unique in that a long cycle of human history spanning hundreds of years ended, and with it a shorter cycle also came to a close. The world is still reverberating from the events of that period.

On Dec. 25, 1991, an epoch ended. On that day the Soviet Union collapsed, and for the first time in almost 500 years no European power was a global power, meaning no European state integrated economic, military and political power on a global scale. What began in 1492 with Europe smashing its way into the world and creating a global imperial system had ended. For five centuries, one European power or another had dominated the world, whether Portugal, Spain, France, England or the Soviet Union. Even the lesser European powers at the time had some degree of global influence.

After 1991 the only global power left was the United States, which produced about 25 percent of the world’s gross domestic product (GDP) each year and dominated the oceans. Never before had the United States been the dominant global power. Prior to World War II, American power had been growing from its place at the margins of the international system, but it was emerging on a multipolar stage. After World War II, it found itself in a bipolar world, facing off with the Soviet Union in a struggle in which American victory was hardly a foregone conclusion.

The United States has been the unchallenged global power for 20 years, but its ascendancy has left it off-balance for most of this time, and imbalance has been the fundamental characteristic of the global system in the past generation. Unprepared institutionally or psychologically for its position, the United States has swung from an excessive optimism in the 1990s that held that significant conflict was at an end to the wars against militant Islam after 9/11, wars that the United States could not avoid but also could not integrate into a multilayered global strategy. When the only global power becomes obsessed with a single region, the entire world is unbalanced. Imbalance remains the defining characteristic of the global system today.

While the collapse of the Soviet Union ended the European epoch, it also was the end of the era that began in 1945, and it was accompanied by a cluster of events that tend to accompany generational shifts. The 1989-1991 period marked the end of the Japanese economic miracle, the first time the world had marveled at an Asian power’s sustained growth rate as the same power’s financial system crumbled. The end of the Japanese miracle and the economic problem of integrating East and West Germany both changed the way the global economy worked. The 1991 Maastricht Treaty set the stage for Europe’s attempt at integration and was the framework for Europe in the post-Cold War world. Tiananmen Square set the course for China in the next 20 years and was the Chinese answer to a collapsing Soviet empire. It created a structure that allowed for economic development but assured the dominance of the Communist Party. Saddam Hussein’s invasion of Kuwait was designed to change the balance of power in the Persian Gulf after the Iraq-Iran war and tested the United States’ willingness to go to war after the Cold War.

In 1989-1991 the world changed the way it worked, whether measured in centuries or generations. It was an extraordinary period whose significance is only now emerging. It locked into place a long-term changing of the guard, where North America replaced Europe as the center of the international system. But generations come and go, and we are now in the middle of the first generational shift since the collapse of the European powers, a shift that began in 2008 but is only now working itself out in detail.

What happened in 2008 was one of the financial panics that the global capitalist system periodically suffers. As is frequently the case, these panics first generate political crises within nations, followed by changes in the relations among nations. Of these changes, three in particular are of importance, two of which are directly linked to the 2008 crisis. The first is the European financial crisis and its transformation into a political crisis. The second is the Chinese export crisis and its consequences. The third, indirectly linked to 2008, is the shift in the balance of power in the Middle East in favor of Iran.

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Exit Planning Video

Posted on February 20, 2012 by in Blog

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Exit Planning Video

Thought of Exiting Your Business?

Posted on February 18, 2012 by in Blog

If you have ever thought of exiting your business and didn’t know where to start, watch this quick video.

HERG Networking at Blancos

Posted on February 16, 2012 by in Blog

Forward Results is cosponsoring a great networking event for small business at Blanco’s in Houston.

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Impact of the Health-Care Law

Posted on February 15, 2012 by in Blog

Here is Humana CEO Mike McCallister on how the health-care law will impact businesses as seen on Fox Business.