5 Things That Will Completely Change How Small Businesses Are Run..

and put at a disadvantage those who don't adopt...

I've been toying with these for the last 3-5 years, and they all have an impact on

- Sales
- Operations
- Finance

Dont ignore these ...
1. Generational Cultures

Younger generations have completely different value systems.

not better / worse - but definitely different.

This means they say yes/no to jobs for different reasons, make different decisions, and want different things.
Where older wanted

- stability
- predictability
- retirement

- flexibility
- environmental
- Cultural
- relative morality

all matter!
Where will this matter:

Hiring first and foremost.

Career Ops

... will all look completely different.
To get ahead:

Consider your why.

Its no ok to just make a profit.

You don't need to change the world, but you need a why, and it needs to be real.

Every company I know that is is hiring for reasonable rates has a why, a mission.

It may be private, and small, but its there.
2. No Code

No Code tools put the building in the hands of those with ideas.

Tools only used to get built when a market large enough wanted them.

No code applications will enable a massive long tail of tools that will reveal latent ideas from all walks of life.
Where this will matter:

These tools will allow people to

- do things faster
- make less mistakes
- create customized workflows with less wasted time and "workarounds"
- reduce costs on outside consultants and developers
- better grab, analyze, and decide from their data
To get ahead:

You can start learning some simple tools.

You can hire an in-house "builder" to start building these out.

You can freelance out some simple ideas to no code agencies to see whats possible.
3. Automation

Broad idea, specific application.

Companies that try to keep up with CRM/Excel SMBs, using fax and notepads can only handle 1/10th the volume.

Almost all have moved forward.

We are making that jump again.
If your competitor has 100s of robots that

- follow up on late invoices
- pay bills
- analyze & contact customers
- do bookkeeping
- create reports and send them to internal/external stakeholders
- manage purchase orders
- adjust inventory levels in real time to env changes
You will be spending (or hiring for) hrs every week that they don't.

You don't need automation

Its not a strategy itself

But offloading low value tasks to
- a simple bot,
- that run continually in the background,

is hard to compete with over the long run
Where this will matter:

As alluded to above, this will make the largest impact in low value tasks.

Repeat Tasks
No judgement used
No matter how complex
... automate!

Operational daily/weekly tasks
Sales lead gen, prep, crm loading
Financial reports and analysis
To get ahead:

Use tools that have automation built in.

Use services that API basic services.

Understand just how powerful Python + RPA is.

Build tools that API to your current suite.
4. Machine Learning

This can be (and is) overhyped.

However, businesses that are using it correctly

- understand their customers better
- iterate operations faster
- better understand market opportunities
- more quickly capitalize on macro opportunities
ML is a pattern finder.

So you can
- predict inventory
- cluster customers
- segment suppliers
- forecast sku usage and mix
- simulate crisis ahead of time

Even if these give a 20% advantage... This compounds
You can

Buy less inventory
Buy at better prices
Do businesses with the best suppliers
Locate your ideal customers
Run operations with less risk.

Day after day after day.
Where this matters?

I have seen real Machine Learning matter most with companies that
- have inventory
- use supply chain
- deal directly with consumers
- have routes
To get ahead:

Start with looking at some at

- do you have data to look at?
- can you get it into excel?
- use some basic statistics on it to find some patterns (EDA)
- learn Jupyter Notebook
- consider scikit-learn & pandas to supercharge
5. DeFi

This one is a ways off before it becomes more accessible.

Even more before the traditional SMB will use.

But, its coming...
Where it will matter:

- Managing your cash reserves
- Obtain LOC for inventory or upfront business
- Securitizing assets and cash flows
- Managing your cash cycle
- Factoring any business cash flows
- Use trade notes for global supply chain
How to get ahead:

You have time on this one...

My favorite way to learn, is to subscribe to 1 or 2 newsletters on the topic.

Week 1 you'll understand nothing.

By week 8 you'll start to get the gist of the macro idea

By week 52 you'll know more than most people you run into.
Those that embrace, even at a low level, these 5 trends will be
- ahead of the curve
- keep market share
- won't burn out
- will maintain margins
- may even capitalize...

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More from @joshuamschultz

11 Jun
What is wrong with supply chain..
... and why "optimization" isn't really taking place.

Let's start with a similar time this happened... the 2008 housing crash crash...
In 2008, one of the contributing factors to the crash was

- improper valuations of properties and pools of properties
- this was based on a model assumption shared by everyone..

8% growth rates in house... indefinitely.
In Inventory Modeling

There are also bogus, impossible, meaningless assumptions that EVERYONE uses.

The one for tonight?

Service Rate.
Read 6 tweets
10 Jun
I know its too early for this tweet

DeFi will be part of small business. 10 yrs or less.

- Trade notes
- shipment ownership
- escrow
- overseas wiring
- chargebacks
- money float
- cash cycle enhancement

All require fees and complex banking

Can now be done by anyone, better.
Currently can take

- unused cash and self manage for higher and safer returns

- can securitize future cash flow with lower risk

- Can manipulate cash cycle for enhanced returns to ROE
This can all be done using the same methods the banks use now

but you can self manage,
and profit not only from the interest strategies, but from the network itself.

Took a 5 month deep dive to fully grasp what is coming and my mind is blown 🤯
Read 5 tweets
9 Jun
Setting up operations involve tradeoffs.

Even when you don't realize it, your are giving something up with each decision.

Working with one SMB Owner who literally cant find time in the day to complete work.

It was his setup...

Small changes freed up 2 hours daily!

He made the decision that ease of information search was most important.

He made it implicitly, not purposefully.

His tradeoff?

Time and Tasks.

He traded Ease for Time, Tasks, Speed.
Every Supplier file was
- Saved in the cloud sync
- Saved in the acct software
- Saved on his personal system

Every file was renamed with the
- PO
- Invoice
- supplier name

Every file was put in one of many folders & subfolders
- some organized by name
- some by type
- or both
Read 9 tweets
2 Jun
🚀 50+ Principles, Concepts & Mindsets related to operating a business. I've made a lot of mistakes,
Gotten a lot of advice,
Sat in a lot of roles...

Here is how it has shaped my view towards business thus far 👇
Twitter disclaimer:

Business is a spectrum of gray, not black and white

- These are in no order
- These are all wrong at some point

Some of these
- were developed by me
- were learned through mistakes
- were taught to me by better operators.

Ok, here we go!
Its better to learn to allocate capital within the business, to projects, and to strategies & experiments

Acquisition is largely related to cost of capital, which lowers with size and relationships

Lowering your capital need & ROI hurdle rate through allocation should be focus
Read 69 tweets
28 May
Really excited for what is coming together for the cohort class for new SMB owner / operators with @StrongpointRich!!

Below are some of the things we will be covering...
- Creating a business that runs whether you are working or not

- building great decision making into your systems

- gaining loyalty from your team on day 1

- building a system that will both support and promote 5x growth

- reading financial statements as an owner/operator
- identifying which operations you can outsource and which you should never outsource

- improving your cash cycle so you can grow faster without debt

- how to increase capacity (sales you can handle) without spending a dollar
Read 10 tweets
25 May
What everyone forgets about process…

Process has an input, and activity (transformer), and output.

Ask anyone abs they will tell you this.

But Processes have two other components just as important.

Resources & Controls
Activities require Resources.

We monitor and measure inputs and outputs
We time activities

But we often neglect the use of resources.


These are required to do processes
Do you monitor how "worked" your people are?

Do you understand how non-inventory supplies flow through your company?

Is there a firm grasp on energy usage in your facilities, and which activities require more or less?
Read 4 tweets

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