The James Dicks Blog

Many of you know that I spent some valuable time as a U.S. Marine; a period of time in my life that I am very proud of and a time when I learned so much about myself. I can honestly say that if I had not learned these vital life lessons as a young Marine, I would not be in the position I am today. Many of the Marine leadership training sessions dealt with handling life’s situations and how to conduct oneself in an organizational role; a lesson that I use every day of my life both at the professional and personal level. Leadership is defined as an act that allows a person “to rule, guide or inspire.” Leadership and management differ to this extent; leaders lead people. Managers manage tasks.

I recently saw a post on the Internet that really cut to the chase on the differences between management and leadership. It said, “A manager is responsible for seeing that the right people are in the right place doing the right things at the right times. A leader is responsible for seeing that they actually ‘want’ to be in those places at those times and doing those things.”

Positive leader traits do much to help you positively build your life and your business and I’d like to share a just few of these traits with you that, if applied, will certainly help you develop confidence in yourself and loyal cooperation from your staff.

- Justice – This trait will allow you to create a sense of fairness and consistency in your organization. An effective leader never demonstrates favoritism but treats people and things with equality at all times.

- Dependability – If you are dependable you can be counted on to accomplish all of your tasks properly and on schedule. It also means that you always put forth your best effort without ever making excuses.

- Initiative – A person that has the feeling of initiative is a self-starter and doesn’t wait to be told to do something. It means meeting new projects head-on and using problem-solving techniques to accomplish a task efficiently.

- Enthusiasm – Know what your passion is and create an optimistic approach to everything you do. A keen understanding and conviction to your job will add to your eager desire to devotedly accomplish all your responsibilities.

- Knowledge – The more you know about your task, the better and more passionate you will be about completing it. Listen and observe to the conditions and situations around you. If you don’t know – find out. Read, go to class, and learn from your peers.

- Loyalty – A distinct sense of loyalty means you are devoted to your superiors, your peers and your subordinates. But also faithful to the mission and always speak positively about those you work with. If you are asked to do something, do it to the best of your ability.

- Courage – A display of courage doesn’t mean you experience no fear but it is the way you handle your emotions in the face of fear. Manage your fear and dread by practicing self-control.

Your ability to lead will determine the amount of success and well-being you will be able to experience in this life. Leadership comes from an ability to inspire trust in others and if people trust you, you can be sure that they will follow you. It’s human nature – plain and simple. If people can’t trust you then eventually things will start to fall apart around you. Leadership is important and can be learned by anyone who aspires to show others a clearer path to success.

As a business owner, I can tell you from firsthand experience that this year’s recession has created some very challenging experiences. In order to sustain what you have, business today must be extremely creative. This productive imagination will feel, at times, like it’s the only thing standing between you and complete corporate annihilation. But that’s ok; I’m sure many of you know exactly what I’m talking about. And this isn’t just a phenomenon that small business is experiencing; many of the world’s largest companies are feeling the same squeeze on a daily basis.

As exciting as this very historical economic year has been, in order to get through it successfully, you can’t wait for something to happen. You must do something productive but since none of us have ever experienced anything that compares with the past 18 months, there is nothing for us to imitate to get back on the right side of economic well-being. Because of this fact, I consider all of us pioneers. We are all blazing a trail through this economic downturn with the ultimate goal of survival. So, I thought I’d share a few thoughts with the rest of you in the global business community to see if my observations can help you blaze your own trail to prosperity.

Because of the double digit unemployment rate, consumer spending has continued to drop sharply. We have seen a customer base shrivel up due to the high unemployment rate and the fear of letting go of the cash they currently have in their bank accounts. Without assurance that the current recession is behind them, any potential customer is unlikely to make a purchase except what they consider to be vital to their survival. So, it is imperative for you to find new solutions for your customer to overcome the current problems they are facing. The economy has changed and so have the needs and the habits of the consumer. Develop new, innovative methods of selling your product. That might be nothing more than to have your sales staff make extra contact with potential buyers by making more cold calls. Do your research.

The fact still remains; cash is king and your need for capital has never been more important. During the best of times, when things are easier, we sometimes forget that our businesses must earn a return on capital that exceeds our capital’s cost. Today, banks are reticent to loan any cash and assets have lost much of their value. That’s why it’s ultimately important during the “good times” to stash as much capital as possible….it is like the proverbial saving for a rainy day. In the meantime, develop a plan of raising as much capital as possible, while determining the best places to use these expenditures to enhance your growth potential. There probably will be corporate cutbacks, layoffs, salary cuts, and a drastic decrease in inventory. Make a clear cut determination of how you will locate and use your capital to the benefit of the company.

I always say that a company is nothing more than a group of talented people who are all working for the same ultimate goal. The key words here are “talented people” and in today’s business community, there are so many highly-qualified people who find themselves without employment while others have become very disenchanted with their current situation(s). It’s in times like these when you can put together a “dream team” so when economy does start to turn, you’re ready.

And even though things aren’t perfect today, you need to keep investing in the very core of how your company operates. Once this recession is over (and many say it’s already starting to make that turn) your company must already be prepared to jump into the fray to continue growing the business. So even during the tough times, you cannot stop funding the critical priorities that made your company move forward and excel in the past; areas like customer service, training or business development need to continue expanding. It’s amazing how many companies just stop funding these critical areas and allow everything to come to a screeching halt while waiting for better times. There has never been a better time than now to insure that your company has the best possible footing to survive the next wave of economic movement, whether positive or negative.

I know that every business has its own story and some are doing better than others in today’s economic environment. But there are situations that must be sustained in order to keep a business from sinking into the quagmire of today’s miserable economy. My primary advice comes from the beginning of this piece; in order to survive develop a highly creative nature that will allow you and your team to consider every possible scenario. Do this and your survival rate will greatly increase.

The past year has been very rough on traditional investors; investments have blown up in the faces of people who had been religiously putting funds in 401(k) plans and IRAs and chances are their home values have crumbled around them as well. Thousands more got caught in a layoff and are now forced to use what is left of their savings to simply survive, while thousands more have lost their homes to foreclosure. It was the kind of year that people will talk about for the rest of their lives; just like Grandpa used to talk about the Great Depression of the 1930s.

Many businesses have collapsed under the stress of this fragile economy; some are still alive but running on the fumes of what they were able to scrape together soon after the recession hit them. Like I said, it’s been a tough year but it is not impossible to overcome. Now it’s time to rebuild our personal and professional lives.

As we enter the holiday season, I see the effects of this economic downturn hit yet again. Corporate CEOs and HR managers have had to do what was in the best interest of their companies – normally that means trimming the employee roster – at least for the time being. We’ve all had to determine where costs can be cut to generate needed cash flow so American companies can stay “open for business” and start to mend our damaged economy.

The same goes for families across the U.S. trying to find their “new” paths to personal financial freedom. Many of you were doing everything correctly and thought you had it made, only to discover that traditional methods of investing just didn’t work anymore and established family traditions had to be cut or done away with all together.

I’ve heard more and more people say that this year’s holiday season will be different – this year there won’t be as many presents given to as many people as there have in the past. Charitable organizations are already feeling the pinch because there are fewer donations coming in this year than in previous years. For many charities, the recession has delivered a double blow. There have been sharp drops in donations tied to increasing demand for their services in these difficult economic times.

Maybe it’s time for us all to start cutting back and simplify our lives. Perhaps we all should cut back a bit and use the extra time and money to get closer to our family and friends. Read more to your kids and grandchildren, and get interested in what your spouse is working on in the kitchen or out in the garage. Invite your friends over to play a board game – these are all things that will allow us to reconnect with people; something that is probably long overdue.

Like “Grandpa’s Great Depression,” we must now find new ways of doing things; changing our lives is not an option anymore. Prior to 2009, Americans were not savers – today more and more of us are starting to put money away for that proverbial “rainy day.” American business now understands that their consumer base has changed their spending habits and has had to get creative to keep things moving forward. This is all positive. These are all things that we should have been doing all along. Maybe if we had done so, the economic situation would not have hit us all so hard.

So this year, instead of indulging ourselves in a rich holiday season, maybe we should focus on what we have remaining in our lives. We need to center on giving thanks for the food and the time we can share with our family and friends, and celebrate the things that we believe in; commemorate the holiday traditions that make our lives meaningful. And one more thing, don’t forget to spend a little quiet time with yourself this holiday season, reflecting on the past year and looking toward the future with optimism.

Happy holidays,

James Dicks

The unemployment rate is currently at the highest level since the early 1980s. Losing a job is a horrible experience even in the best of economic times, but when the global economy is as volatile as it is today, it can be devastating. So it would be wise, if you haven’t done so already, to plan for the worst while hoping it doesn’t happen. Develop a personal financial survival plan that will help you over the rough spots should the unthinkable happen.

The financial experts always say you should have six months worth of salary set aside as a buffer but putting that kind of nest egg together is sometimes easier said than done. So look at the problem with a different perspective. Create a budget of all your “necessary” monthly expenditures; and by necessary I don’t mean that subscription to HBO or the two dinners a week you eat at your favorite nightspot. I mean really take your personal budget down to the bone and then figure your monthly expenses. My grandfather used to ask me, “Do you want it or do you need it?” That’s the kind of gauge you have to use in this kind of situation. I think you’ll be surprised at just how little you can actually live on each month when you compare it to what you’re spending today just by eliminating all the extras you spend every month.

If you have credit cards with a balance, you should call the bank and see if they will give you a better deal on the interest rate. This has become a very competitive business and if you ask them to lower your rate, they just might do so. One thing is certain – if you don’t ask them they will never lower your rate.

Make sure you have all your documents available and ready should you need them. This should be part of your normal routine but most of us don’t get things in order until someone actually asks us to present a copy of something. Then we madly start looking through what we thought was an organized system only to find the document we are looking for isn’t there. So, get your paperwork together; things like bank statements, past year(s) tax returns, passports, and insurance documents. You might even consider putting these important documents in a fireproof box that can be grabbed and taken with you in case of emergencies. And consider putting a stash of cash in the box too…just in case.

In anticipation of the worst, you might also consider creating a secondary source of income, whether it’s starting your own home-based business or working part time for someone else. If you have extra income coming in prior to an emergency situation, you’ll be better prepared when or if something does actually happen. Maybe you have a talent or a hobby that you can use to create an extra income source. What about a course you can take to learn a new skill? There are a number of things you can do to generate extra cash flow; start investigating them before you need to.

Finally, one of the greatest things you can do for yourself is to keep moving forward, with a smile on your face and your head held high. Get comfortable in developing your networking skills because in today’s world, this is a requirement. Don’t fall into the “out of sight, out of mind” syndrome but rather maintain a solid image and a well-defined approach when engaging people within your area of expertise. Whenever possible make connections with others who may be able to help you. Go out and keep shaking hands, make phone calls, send emails…never allow yourself to fall by the wayside. Just go where the people are and use all types of media to meet them. This can go a long way in helping you to maintain a solid footing during the rough times and just might assist you in locating that next big career move.

The bottom line – in order to make sure you move through this unpredictable economy successfully you must be well prepared. Arrange your life so that when (or if) something unexpected should happen, you’ll be ready for it while you smoothly “sail through” to your next big opportunity.

The main topic of conversation for the past 18 months or so has been all about the economy and how we’ll be able to cope with it today and into our retirement years. Most of us have had a certain amount of fear invade our once serene financial lives and today just about anything will set off our emotional release when it comes to the sensitive topic of – “what happens next?” – as it pertains to our personal financial situation. It has been a very tough year and although government figures are pointing to a recovery on the horizon, I don’t really know many who will attest to the fact that things are really beginning to improve on their economic front….at least not yet.

But there are a few things that you can do to help the situation while the years ahead try to mend the financial damage that we’ve experienced recently. The first thing, and probably the most important, is not to ignore your current situation. Listen, I know that many of you have not been checking out your banking or investment statements lately because you just don’t want to see that bottom line figure. The fact remains, unless you know what that figure is, you won’t know where you’ll need to start the repair or how aggressive you’ll have to be to fix the problem. So, stop hiding and take a look. You might not like what you see but at least you’ll know where you stand and that will be the beginning of “fixing what has been broken.”

If you haven’t done so already, find an accountant. There have been so many changes to the tax laws in the past year and even the professionals are overly challenged when trying to keep up with the latest tax modifications. Many of you have started your own businesses this past year and if you try to mix that with your personal taxes, well, you could be in for an ordeal that might lead to errors in your final tax figures. So, let someone who knows how to handle the situation do it for you. Sure, it’s going to cost you a few dollars but in the end you’ll be more at ease and content that you did it the right way and, believe me, that will be well worth a few extra dollars.

In the computer age, you can automate many of your financial responsibilities that in the past you would normally worry about. Things like automatic bill pay through your bank’s website or payroll deductions to your 401(k) plan or savings accounts can do much to take some of the pressure off. You can also have your utility companies or a personal credit card simply debit your account on a monthly basis and you won’t ever have to worry about late fees. But even better than that, since you won’t have to actually sit down and pay the bills, you’ll have a lot of extra time to do the things you really want to do.

As we approach 2010, use some of your extra time to sit down and write your goals for the New Year. What did you want to accomplish this year that you didn’t? What would you like to achieve next year? Maybe it’s that vacation you’ve always wanted to take to Paris or finally finishing your education; whatever your goals are, just make sure you write them down and post them someplace. Ask yourself where you see yourself in five years. Then, prioritize those goals to figure out a way to make them happen. Once you’ve set your personal goals, make sure you stay focused and remain on course to complete them successfully. Constantly review and update your list of goals and modify them to reflect any life changes, experiences or priorities. If you want to make something happen you must set and manage your goals. Make that a priority this year.

If you are dedicated to creating a booming year ahead, you must make sure that you look at everything with a new point of view. If you’ve been doing things in a certain manner that hasn’t really been working out for you, the only way to change the outcome is by changing how you deal with the problem. Make something happen in the coming year by producing a positive environment that will allow you to realize the success you are striving to achieve.