The James Dicks Blog

When I look back on 2009, I realize that it was an extremely challenging year and many things I wanted to accomplish just didn’t get done for one reason or another. I’m still very proud of what I did accomplish in my business and my personal life and I’m sincerely confident about the prospects for the next year. It never pays to dwell on the bad times when so much of what happened this past year served to teach us valuable lessons; lessons that could never be taught or experienced in a classroom environment, even at the finest business college in the world. The challenge today is discovering fresh ways of effectively applying the lessons we learned this year while assuring ourselves of a better year ahead.

We can only learn from our mistakes after we admit that a mistake actually occurred. We all must realize that without experiencing mistakes in our lives, we would never learn or grow. So, when you look at it from that point of view, our personal blunders can actually turn out to be positive events. Think about how each of us expands our horizons. We don’t just gobble down every fact we can about a subject and instantly become experts. We practice and develop an understanding of the topic; then when we then make our mistakes we simply adjust our methods to develop positive solutions.

It makes no difference what the topic is; when we first learned to walk, all of us probably fell down more than we stood on our own two feet. When we first started learning Algebra equations, we no doubt got more wrong that right. So, when you look at it that way, the mistakes you’ve made along the way have actually helped you become the success you and your business are today. That’s not to say that you should strive to make errors in life, but when you do, you should be prepared to quickly examine them carefully and learn that by changing the way you accomplish any particular task will probably lead you to certain success.

While I’m on the topic of success, one thing that we all need to be very mindful of is the fear of success. So many people today just won’t allow themselves to succeed and when failure does occur (and it will) they interpret that as a sign of weakness and create an internal obstacle that keeps them from experiencing accomplishment. Always remember that it’s the difficult times that create the opportunities in our lives. The more mistakes you make, the more opportunities for you to learn and the more you learn, the more proficient and confident you’ll be in your given vocation.

Mistakes will occur now and then, but you must never allow them to hold you back from attaining your personal goals. Maintain an optimistic approach to life and keep pushing your situation forward; this is how noble ideas are shaped. If you become withdrawn and lose confidence because you made an error, you place an internal roadblock between you and any opportunity that might make itself available. On the other hand, with the proper attitude, your mistakes can become the very source of all future achievements in your life.

I’m sure that we all made a lot of mistakes this year and I’m also certain that we’ll all be making a few more next year. The most important thing to remember is to become deeply aware of your personal situation from day-to-day and adjust quickly to insure that the damaging results produced as a result of your mistakes are simply not allowed to take hold. Just plan to quickly apply the lessons learned from your mistakes and you can be sure that considerable success won’t be too far behind.

The ability to conduct business efficiently in your specific area of expertise is certain to be one of the most critical aspects of your daily routine. In these difficult economic times, the unconditional professional skills of making things happen in your business will set you apart from the rest of the competition. Most times it’s your staff that puts you over the top; they are the ones that make things operate effortlessly and profitably.

When you think about it, you’ve spent quite a lot of time and money training your staff to accomplish the tasks that have, up to this point, helped to craft a successful business. But today’s environment is forcing business to stockpile cash and other assets, and the fastest and most efficient method of increasing your internal cash flow is by cutting the payroll; or is it? You won’t get an argument that it might be the fastest method but it may not be the most cost effective approach in the long run. While things may be volatile today, bad situations always have a way of improving.

Your staff is not only a trusted group internally but your employees have, no doubt, created positive and productive relationships with your customer base as well. They know your product better than anyone and they also know your customer. That is a very important combination because positive customer relations are more likely to translate into future sales.

While many businesses believe that the customer base is the most important asset of any business they couldn’t be more wrong. Without a highly skilled group of employees there would be no customer base. Each individual has their strong points; most probably have more than one to offer. Develop an understanding of everyone’s string points and assign the right person for the right job. Your staff comes in everyday and deals positively with your customers; they keep the books on track, handle the new orders or answer the phones. They do hundreds of other things that can’t even be quantified; they do their jobs so well that you never seem to have a problem. Things run like clockwork because your staff holds it all together.

Don’t get me wrong, there are times when things haven’t run as smoothly as I’d like but that’s why management exists. Sometimes management has a “bad hire” and that can cause quite a few problems; especially to a small business. Those issues must be dealt with quickly but you should know who your “core” employees are; you know who can be counted on to come in at night or on a weekend, if needed, without complaint. You know who is always there to help bolster his or her fellow employees when they have a tough day. You know who the sales person is that never makes excuses but keeps the bottom line solvent. You can’t lose these people; they have a vast amount of corporate memory and that helps to run your business. But more importantly they have a work ethic that is difficult to find these days. You know who is loyal to the company and you also know who is only there to collect a pay check. There is a big difference.

As I said earlier, the economic slump we currently find ourselves in will pass; they always do. When it does, you will want to be in a position to hit the ground running. So, if at all possible, try saving the cash flow by cutting programs before you are forced to cut people. A well-qualified and loyal group of employees is the most valuable asset of any business. It’s the people who control a business – not the other way around. If you have a well-trained and professional staff you must try to hold on to them through the use of any retention programs you have at your disposal. During the challenging times, a feeling of sincere camaraderie will help your business escape the next tight spot the company encounters. Your people are your most important asset.

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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.