BiziBoom.com

Create an Environment of Excellence

2010-02-27T20:12:51Z

A good friend is having his knee surgically replaced, about four years after having his other knee replaced. His first surgery relieved the constant pain he was experiencing and allowed him to maintain an active lifestyle. By all accounts, it was a success.

And yet, he has chosen a different surgeon to perform the second surgery.

The new surgeon examined the work done by his predecessor and confirmed that the work was technically excellent. Somewhat puzzled, the new surgeon asked my friend why he wasn't going back to the first surgeon. My friend's response: "His bedside manner left something to be desired."

Often business owners believe that if we provide technically excellent services, clients will come flocking to us, dazzled by the technical excellence of our work. The reality is, however, that most clients cannot tell the difference between A+ work and C- work. You do not know whether your accountant has taken every deduction you are legally entitled to take, whether your investment advisor has put you in the funds that are most appropriate for your circumstances, or whether your physician has correctly diagnosed your ailments.

You can, however, tell the difference between A+ and C- customer service.

Technical expertise is important to your business success. If you provide substandard services long enough, you eventually will work yourself out of business. You may even find yourself on the wrong end of a lawsuit.

But your client relations are even more important than your technical expertise. If you have a surly bedside manner or if you place barriers that make it difficult for clients to do business with you, they will leave you, in spite of your technical expertise.

Analyze every point where you interact with your clients. Do your clients feel that they are important? Does everyone on your team communicate in a manner that builds confidence in your abilities?

No matter how well you think you are doing, you can do better. Ask, How can we create an environment of excellence? Be brutally honest with yourself. Then go out and make the changes that show your clients that you understand they are absolutely essential to the success of your business.

Help your clients feel important, and your business will boom.

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Download a free copy of my e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication.

If you find the BiziBoom blog posts helpful, I invite you to subscribe to the blog. Your comments, suggestions, and critiques help improve the quality of the discussion. Thank you for your input.

Do You Own a Business or a Job?

2009-11-14T17:44:00Z

You have set up a corporation, designed a stunning logo, and registered your trade name. You have opened a bank account in the name of your company, rented office space, and begun wooing clients. You're a business owner, right?

Not necessarily.

Many people -- perhaps even most -- who consider themselves business owners don't really own a business, they own a job. Even if you have set up many of the formal indicia of a "real" business, one key factor prevents your organization from being a business.

The organization depends entirely on you.

If you earn money only when you are physically working, you don't own a business you own a job. If your employees are not able to make decisions without your input, you don't own a business you own a job. If your business would fall apart if you were gone for a week (or if you fear that it would), you don't own a business you own a job.

Transitioning from owning a job to owning a business can be a daunting task. You went into business so that you could control your own destiny.

A job creates income; a business creates wealth. A job depends on your knowledge and skills; a business depends on systems, practices, and procedures that can be replicated. When you have a job, your customers are loyal to you; if you own a business, you can sell or transfer your customer base when you retire.

How can you be sure that you own a business rather than a job? Make decisions for the long term rather than the short haul. Don't cut corners. Create a brand that proclaims the ways in which your business differs from the competition. Live up to the high expectations your brand creates.

Develop written systems, practices, and procedures that allow you to replicate the key components of your business. Hire smart people who share your ideals. Treat them fairly. Allow them to innovate and improve your systems and practices. Delegate key responsibilities, and hold people accountable for their stewardship. Cultivate and nurture the next generation of company leaders by giving them increasingly more responsibility. Plan for your retirement or for a diminished leadership role in the company.

Develop a team of advisors to help you Avoid Hidden Hazards and Lurking Liabilities. Ensure that no one person (especially yourself) has the entire knowledge base for any critical aspect of the business. Protect your intangible assets with well-crafted restrictive covenants and other prudent practices.

What would happen if you were hit by a bus? If (after a suitable period of mourning) the company would continue on without you, you own a business. If not, you own a job.

Everybody Has a Brand: Rise Above Mediocrity

2009-11-07T17:08:00Z

We all have high opinions of ourselves.

Talk to any random person in your industry and you will hear the same refrain: "We focus on the needs of our customers and provide world-class services at cost-effective prices" or something equally nonsensical. If you don't believe me, check the website of three of your closest competitors. Then read your own website.

Of course these high platitudes are not true. You do not live in Lake Woebegon, where "all the women are strong, all the men are good looking, and all the children are above average." No offense intended, but the average person -- or company -- is . . . umm, average.

And yet, regardless of who you are or whether you live in Garrison Keillor's fictional town, you and your business have the ability to be well above average, even exceptional. The key is to find your niche, hone your skills, and make your excellence visible.

The first step in overcoming mediocrity is to realize that you cannot be all things to all people. Remember, a "Jack of All Trades" is the Master of None. You must narrow your focus and find your niche. Then narrow your focus again. Find a way to distinguish yourself from your competitors.

Your distinction -- your differentiation -- may be your geographic focus, your target market, or the manner in which you deliver your services. It may be the way you charge for your services, your guarantee of satisfaction, or your market leadership. Because Nobody Cares About You, you must Think Like a Client, and distinguish yourself in a way that is meaningful to your client.

After you find your niche, you must hone your skills and attention to an increasingly finer point. Focus and refocus on the differentiation that sets your business apart from the competition. Develop new and different ways to deliver your services. Change, revise, and improve. Then do it again. Your work is Always and Never Done.

As you continue to hone your skills, you must make your growing excellence visible to the people who matter most: your clients.
You show that excellence through the way you package your services, the consistency of your marketing materials, and the quality of your writing. Your office environment, your reliable performance, and your unswerving attention to detail reinforce your excellence. Every interaction with a client or prospect either strengthens or diminishes your perceived excellence.

Though you may not live in Lake Woebegon, you can Rise Above Mediocrity.

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Download a free copy of my e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication.

If you find the BiziBoom blog posts helpful, I invite you to subscribe to the blog. Your comments, suggestions, and critiques help improve the quality of the discussion. Thank you for your input.

Black Hats and White Hats: Establish Expectations Early, Enforce Consistently

2009-10-31T15:24:00Z

(Part Ten in a Series)

A key employee has just left your company, joined your fiercest competitor, and begun a brain dump of your most critical intangible assets. What can you do?

If this is the first time you have thought about protecting your intangible assets, the unfortunate answer is, "Not much." That ship has sailed. The cow's out of the barn. Elvis has left the building.

You must begin today if you want to protect your intangible assets. Waiting until a crisis arises only assures that you will lose them.

Identify your intangible assets. Separate and secure them from unwarranted intrusion. With the assistance of competent legal counsel, decide whether you should implement covenants not to compete or other restrictive covenants. Implement appropriate policies, protocols, and procedures to protect your intangible assets from prying eyes. Establish a Culture of Confidentiality.

Establish expectations early; enforce them consistently.

White Hats know that consistency and persistence are the keys to protecting their intangible assets. The sooner you start, the greater the chances you will succeed.

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Download a free copy of my newly designed e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication.

If you find the BiziBoom blog posts helpful, I invite you to subscribe to the blog. Your comments, suggestions, and critiques help improve the quality of the discussion. Thank you for your input.

The demands of owning a business can be overwhelming. You need an effective plan to grow and succeed. Learn how BizBuilder™ can help you systematically and continuously attack the most demanding legal challenges your Arizona business faces.

Recipe: Asparagus Leek Chowder

2009-10-17T21:47:00Z

At the request of my Twitter friends Greg George and Pamela Woldow, here is the recipe for one of my family's favorite soups, Asparagus Leek Chowder. It's simple to make and very tasty.

                                                                                                Asparagus Leek Chowder
                                                                            (From Taste of Home 2005: Annual Recipes)

1 pound fresh asparagus,
           trimmed and cut into one-inch pieces 3 cups sliced fresh mushrooms

3 large leeks (white portion only), sliced     6 tablespoons butter

1/4 cup flour 1/2 teaspoon salt

Dash of pepper 2 cups chicken broth

2 cups half-and-half 1 can (11 ounces) whole kernel corn, drained
     (I prefer fresh or frozen corn instead)

1 tablespoon chopped pimientos

In a large saucepan, saute the asparagus, mushrooms and leeks in butter for 10 minutes or until tender. Stir in the flour, salt and pepper until blended.

Gradually stir in broth and cream. Bring to a boil Reduce heat; cook and stir for 2 minutes or until thickened. Stir in corn and pimientos; heat through. Makes 7 servings.

I like to serve the chowder with a crusty bread. Sometimes we add two or three small red potatoes cut into 1/2 inch cubes. Enjoy.

Black Hats and White Hats: Create a Culture of Confidentiality

2009-10-14T02:29:00Z

(Part Nine in a Series)

Do you expect others to secure your secrets, protect your patents, and guard your goodwill? Then respect the intangible assets of others.

Even if you have implemented sound policies and procedures to protect your intangible assets, your policies will fail if you do not have buy-in from your employees. You can talk a good game about protecting intangible assets, but your employees will take their cue from your actions, not your words.

You must walk the walk, and not just talk the talk.

If you blather on about the importance of your trade secrets and confidential information then try to hack into your competitor's computer network to gain a competitive advantage, your employees will recognize you as a charlatan and a fraud. Your intangible assets will receive no more respect than what you are willing to give to the assets of others.

Wear a White Hat. Create a Culture of Confidentiality that reverberates through the length and breadth of your company. Conduct yourself in a principled and honorable manner at all times. Compete fairly. Speak truthfully, even when it is a disadvantage to do so. Don't poach. Be respectful and courteous. Make all of your corners square. Do the right thing, all the time.

When you behave ethically, you have the moral authority to insist that your employees do likewise.

Not only is it the right thing to do, you'll be glad that you did if you have to file suit to protect your intangible assets. Imagine how difficult it would be to convince a judge to enforce your non-compete agreement against a former employee who testifies that you regularly sought to circumvent your competitors' restrictive covenants. The judge would, with good reason, proclaim you to be a Black Hat who is unworthy of judicial protection.

Create a Culture of Confidentiality that respects the rights of others, and your business will boom.

Everybody Has a Brand: Overcoming Indifference and Hypocrisy

2009-10-09T04:16:32Z

Building your brand is like doing house work.

Say what?

You heard me. Building your brand is like doing house work. Or, if you prefer, it's like doing yard work. Or raising children. Or doing dishes. You get the idea. Your work is Always and Never Done.

You never stop building your brand. No matter how well you have done in the past, you have more work to do tomorrow. And the day after. And the day after. If you ever stop working on your brand, you have a mess on your hands in no time flat.

At home you battle dust bunnies and weeds.   When working on your brand you battle indifference and hypocrisy.

Your brand is not what you think it is. Rather, your brand is a composite of what your clients and prospects think it is. Every interaction you have with your clients and prospects contributes to the perception of your brand, either to the positive or to the negative.

You must battle indifference because Nobody Cares About You. Your clients spend little time thinking about you and your company. They spend their time instead obsessing about themselves and their own problems.

Unless you can clearly and concisely communicate why your client or prospect should care about you -- that is to say, unless you can clearly and concisely communicate how you are different from your competitors and how you will eradicate the problems that keep your client up at night -- he will be indifferent about you. You will be one of many, a nameless face in the crowd.

Stand out from the competition. Think Like a Client instead of thinking like your peers. Develop innovative ways to solve your clients' problems. Then effectively communicate how you are different in ways that matter to your clients. When you find a message that resonates with your clients, they no longer will be indifferent about you.

Once you overcome indifference, you must beware of hypocrisy. Catchy tag lines and dazzling graphics may create passing interest in your company, but if your walk does not live up to your talk, your brand takes a hit. Your actions always speak louder than your words.

If you over promise and under deliver, you are guilty of hypocrisy. If your clients realize that your stunning marketing materials are a facade covering a meaningless message, they will hold you in disdain.  If your actions are ever less than what you claim they will be, you will lose the attention and the respect of your clients.

Your brand will overcome indifference and hypocrisy the same way you do house work, or yard work, or raising children, or doing the dishes. You build your brand daily, consistently, continuously. Your work never ends.

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Download a free copy of my newly designed e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication.

Black Hats and White Hats: Give Adequate Time to Consider Restrictive Covenants

2009-09-26T17:01:00Z

(Part Eight in a Series)

Imagine that you have just started a new job with a great company. You've quit your job, sold your home, and moved hundreds of miles away from your family and friends to accept this fabulous opportunity.

Now imagine that on your first day at work the Director of HR plops the company's "standard" five-page Non-Compete Agreement in front of you and tells you that you must agree not to work in your industry for three years if you should ever leave the company. What is your initial reaction?

Yeah, I thought so. That's what judges think, too.

Principles of free enterprise dictate that you are subject to the challenges of fair competition. You can, however, protect your business from unfair competition. The way you go about protecting your business determines whether you will be protected.

Black Hats think only about protecting their interests and give no thought to the restrictions being placed on the employee. Their only concern is that the employee sign the restrictive covenant, the sooner the better.

White Hats, on the other hand, realize that a human being sits on the other side of the table. Human beings have parents, spouses, children, and friends. They have personal and professional goals, choices and preferences, wants and needs. In short, they have objectives that may not match your own.

Courtesy dictates that your employees be given an opportunity to thoughtfully consider the consequences, risks, and rewards before they sign a restrictive covenant. They should be encouraged to review it with the important people in their lives and with legal counsel. In appropriate circumstances -- for example, if an employee brings a book of business to the company -- the company may need to revise its "standard" agreement to accommodate the situation with a particular employee.

Provide prospective employees with a copy of the agreement you expect them to sign when you extend the job offer. Give them time to review the agreement before you allow them to sign. Review important portions of the agreement with them, and ensure that their questions are answered before they sign.

Seek the advice of experienced legal counsel if you are implementing restrictive covenants in your existing work force. The way you must do so varies widely from jurisdiction to jurisdiction, and you will want to make sure that you meet all the requirements. Regardless of what your jurisdiction requires, make sure that you give your employees adequate time to consider the risks and rewards of signing the agreement.

When you give employees and prospective employees adequate time to review and consider restrictive covenants, your employees will be more accepting of the agreement. You will develop a better agreement from the give and take in any negotiations. You will increase the likelihood that the court will enforce the agreement.

Wear a White Hat by giving your employees adequate time to consider your restrictive covenants. Your business will boom.

Everybody Has a Brand: Are People Indifferent About Yours?

2009-09-26T03:04:00Z

Like all brand owners, you must constantly be vigilant to avoid being tarnished with an unflattering brand. No amount of creative marketing materials can save your business if your brand becomes "Over Promise and Under Deliver." You will have earned the disdain of your clients and prospects.

While you face the threat of a negative brand, you must be continuously aware of an equally devastating -- and far more common -- foe: Indifference. Thanks for Lance Godard, marketer extraordinaire from The Godard Group, for raising this important point in a recent telephone conversation.

Your brand may be ineffective or even harmful because of your negative performance. More likely, however, you and your brand are indistinguishable from your competition. You are part of the sea of sameness, the mass of monotony, the tide of tedium that makes up your industry. You are another face in the crowd.

Were you a color, you would be gray.

How do you make your business stand out? As Jack Trout and Steve Rivkin teach, you must "Differentiate or Die." You must cease being gray and become a dazzling blue or brilliant yellow that jumps off the page and exclaims how you are different in ways that matter to your clients.

Take a new approach to an old problem. Ignore the conventional wisdom of your industry and ask "why not?" Think Like a Client. Change the way you package services to better meet the needs of your clients.

Communicate effectively with your clients. Provide valuable information with no strings attached. Remember that Nobody Cares About You, so you must focus on your clients' needs and concerns rather than on selling your doodads. Don't exaggerate or puff up your claims. Become a credible, reliable source.

Innovate. Don't follow the crowd. If your competitors are doing it, don't. Do something your competitors are unable or unwilling to do. Create your own business model.

You must change your way of thinking and develop differences that matter to your clients and prospects. When your clients recognize your differences, they no longer will be indifferent, and your business will boom.

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Lance Godard helps lawyers and law firms grow and prosper. His 22 Tweets is a fabulous differentiator and a great use of Twitter, helping lawyers tell their stories one tweet at a time. I'm honored to have been "twitterviewed" by Lance. Follow Lance and 22Twts on Twitter or on Facebook.

Download a free copy of my newly designed e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication.

Everybody Has a Brand: What's Yours?

2009-09-17T16:12:00Z

Marketing experts talk about the need to develop your brand. The process often sounds daunting, and you may wonder whether you should spend the time and money to brand your business.

Wonder no more. You already have a brand.

Your brand may be "The Guys Who Do Lousy Work, Charge Too Much, And Won't Return Your Phone Calls." Or it may be "Over Promise and Under Deliver." Or perhaps "We Can't Think of a Single Reason Why You Should Give Us Your Money, But We Really Hope You Will."

But, you may say, no sane business owner would choose those brands for her business. And you would be right. But I have done business with companies that operate under these three brands, and so have you. You may even have done business with a company whose brand is not nearly as flattering as these three.

Everybody has a brand. Your brand is not what you want it to be, but rather what your customers and prospective customers perceive it is. If you want people to perceive your brand in flattering terms you need to give them a compelling reason to say something flattering. Consider the following questions:

Do clients feel welcome when they arrive at your office?
How long does it take you to return telephone calls?
Do your offices convey warmth and professionalism?
Do your dressing and grooming habits strengthen your perceived competence?
Can you communicate the benefits of your services in a way that is meaningful for your clients?
How well do you walk the walk and not just talk the talk?
Do your clients sleep well at night because you are working for them?
How diligent are you after you make the sale?
Do you listen more than you talk?
What are you doing to help your clients become more successful?

We love the graphics and marketing materials that our friends at Tactix Creative are helping my law firm develop. The marketing materials help bolster our image of competence and professionalism, and convey our message in a compelling way. But make no mistake: Dazzling graphics and catchy slogans help reinforce your brand, they do not create your brand. Remember the old saying, "You can put lipstick on a pig, but it's still a pig." If your performance does not match the quality of your award-winning marketing materials, your business will suffer.

How do you develop the brand that you want? Always do the right thing, especially when it is difficult to do so. Never compromise your integrity. Treat your clients with kindness, courtesy, and respect. Be honorable in your dealings with others. Hire people who are smarter and more talented than you are, and create an environment in which they can develop their skills. Make and keep commitments. Accept responsibility for and promptly fix any mistakes you make. Deal fairly with your employees. Help others achieve their personal goals.

Bring your actions in line with your stated beliefs, and your business will boom.

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Download a free copy of my newly designed e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication.

If you find the BiziBoom blog posts helpful, I invite you to subscribe to the blog. Your comments, suggestions, and critiques help improve the quality of the discussion. Thank you for your input.

Business Books You Need to Read

2009-09-12T16:24:00Z

You must constantly learn and change to stay ahead of your competition.

Savvy business owners have a regular program to study and learn from the experts. Many wonderful business books will teach you principles that can help your business prosper. The books listed below -- What Clients Love, World Wide Rave, and Made to Stick -- are three of my favorites. I commend them to you.

Don't just read these books, incorporate their teachings into your business model. Study them with a highlighter, pen, and pad of paper close by. Highlight relevant sections and make copious notes. Look for true principles and words of wisdom as you read. Ask yourself, "How does this apply to my business?" and "What changes can I make to better implement this concept in my business?"

These books have the power to change your business. Read them and incorporate their ideas. Your business will boom.

What Clients Love: A Field Guide to Growing Your Business, by Harry Beckwith

Those of you who follow me on Twitter know that I am a huge fan of Harry Beckwith's book. Written in short, succinct sections overflowing with great ideas, this book will help you change the way you think about your interactions with your clients and help you stand out from the crowd.

Our modern economy focuses more and more on intangible assets, products, and services. This emphasis on the intangible -- the Invisible, as Beckwith called it in his first book -- requires that we change the way we deliver our goods and services.

Because your goods and services are intangible and invisible, your clients often cannot determine whether those goods and services have value. They cannot, for example, distinguish between a well-written estate plan and a poorly conceived plan. What they can tell is how they felt when you delivered the service to them.

What Clients Love focuses on taking your client service to a new level. Don't be deluded into thinking that your client service is stellar -- it's not nearly as good as you think it is. Change the way that you think about your interactions with your clients; focus on the relationship from their perspective rather than from yours. You will be amazed at how many dramatic changes you need to make.

World Wide Rave: Creating Triggers That Get Millions of People to Spread Your Ideas and Share Your Stories, by David Meerman Scott

Speaker, coach, author: David Meerman Scott does it all. He understands how to market ideas in the Electronic Era. You must incorporate his ideas if you want to flourish.

In World Wide Rave, Scott discusses how to harness the power of social media to get other people to drive customers to your virtual doorstep. And not just any customers, mind you, but customers who already are convinced that they should give you their hard-earned cash for your goods or services.

To get others to flock to your virtual doorstep -- to create a World Wide Rave -- you must change the way you market. You must publish "great content online, content people want to consume and that they are eager to share with their friends, family, and colleagues." You must accept the six Rules of the Rave, and allow others to freely distribute your ideas. In short, you must stop thinking about your needs and focus instead on the needs and interests of your target market.

Each section contains a series of questions and challenges that will help you create an environment in which a World Wide Rave can emerge. You'll learn how to use stories to get widely distribute your message, realize that Nobody Cares About You or your product, and understand why you must make your message "totally free (and freely sharable)." Once you incorporate those principles into your business, you can propel your business "to seemingly instant fame and fortune -- for free."

Made to Stick: Why Some Ideas Survive and Others Die, by Chip Heath and Dan Heath

We live in a noisy world where it is difficult to be heard over the chatter and commotion engulfing us. And yet some messages emerge from the noise, stake out a claim, and become memorable and "sticky." What separates these messages from the competition?

The Brothers Heath explain how to make your message "sticky," or "understandable, memorable, and effective in changing thought or behavior." If your message is not "sticky," then it's just part of the noise.

You must change your way of thinking and Think Like a Client. Your needs and your interests do not matter. If you want your message to surface, you must make it memorable to your intended audience.

You will learn how to make your message "sticky." Find and share the core of your message, then get and hold the attention of your audience. Use concrete examples to get your message across. Reinforce that message through internal or external sources of credibility. Your message must appeal to the emotions of your audience, and call them to action. Use stories to tell people how to act and to give them the energy to act.

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What are the essential business books in your library? Make your recommendations below, and let's talk about them.

Black Hats and White Hats: Tell Prospective Employees About Restrictive Covenants

2009-09-08T16:29:00Z

(Part Seven in a Series)

You have an urgent need to protect the intangible assets of your business.

Your intangible assets make up 75 percent or more of the value of your business. Moreover, your employees take your intangible assets home at the end of each day, and you are left hoping that they bring them back the next morning. If you do not protect your intangible assets, you are leaving the health of your business to the whims of chance.

In your efforts to protect your intangible assets, however, you cannot forget that you are dealing with real people -- often your employees -- on the other side of the table. The way you work with them plays a big part in determining whether you wear a Black Hat or a White Hat.

Black Hats focus only on their objective: get the restrictions signed. They drop restrictive covenants and trade secret agreements on their employees unexpectedly and compel employees to sign the agreements without giving them time to consider or review the documents with counsel. Black Hats see nothing wrong in dropping a stack of oppressive restrictive covenants on a new employee during her first day on the job and telling her that she has to sign the documents as a condition of her employment. They are not concerned that she quit her job, sold her home, and moved her family from out of state to accept the job with Black Hat Enterprises.

White Hats, on the other hand, understand that protecting intangible assets is part of the company's culture of fairness and honesty. They live the Golden Rule, and do unto others as they would have others do unto them. White Hats inform prospective employees in the interview that they will be required to sign restrictive covenants, and give the applicant copies of any documents they will be required to sign. They encourage applicants to seek the advice of legal counsel, and will even tailor the scope of the restrictive covenant to meet the applicant's specific concerns in appropriate circumstances.

White Hats treat the person on the other side of the table fairly.

They do so first and foremost because it is the right thing to do. White Hats know, however, that at some point they may be required to defend the scope of their agreements and the manner in which they were implemented. It is much easier to defend those agreements when you have procured them fairly and honorably.

If you want to protect your intangible assets, you must Wear a White Hat. Tell prospective employees that they will be required to sign restrictive covenants, then implement those agreements using policies that are fair to the people on both sides of the table.

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Download a free copy of my newly designed e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication. Ask them how they can help your business distinguish itself.

If you find the BiziBoom blog posts helpful, I invite you to subscribe to the blog. Your comments, suggestions, and critiques help improve the quality of the discussion. Thank you for your input.

Black Hats and White Hats: Tailor Restrictions Specifically for Your Business

2009-09-05T21:52:00Z

(Part Six in a Series)

Your business is unique. No one does what you do the way you do it. You have developed a specialized niche for your services, and you serve your clients in your unique, individualized way.

Why, then, would you download a form agreement off the internet to try to protect your business?

One Size Does Not Fit All. Not only must you individualize your protections based on the duties and responsibilities of your specific employees, you also must tailor protections based on the nature of your business. Your efforts to protect your business must be as unique as your business is.

The law varies dramatically from jurisdiction to jurisdiction, so you need the advice of a competent, experienced lawyer. Your lawyer can help you evaluate how to evaluate the following points and implement a plan that meets the needs of your busines.

What unique and valuable information do you use in your business? Your valuable information may include customer lists, research and development, marketing plans, or other information that helps your business prosper. Specifically identify your information, then take proper steps to protect it. Does the information qualify for trade secret protection? If so, what are you doing to protect and secure the information as a trade secret?
Who has access to that unique and valuable information? Your employees have different levels of access to your confidential information. You need to tailor your protections based on the level of access that each employee has to that information.
What steps can you take to protect that unique and valuable information? Do you need to protect trade secrets? What part should non-solicitation agreements play in your plan? Is a non-compete agreement appropriate for some of your employees? What aspects of physical security do you need to implement in your business? Are you adequately training your employees of how to protect and secure your valuable information?
How often should you review and update your plan? Remember that nothing remains constant. Your employees will take on new responsibilities and duties over time. Regularly review your plan to ensure that steps you are taking to protect your business meet your current needs and situation.

A professionally tailored suit fits your better than a suit purchased from a thrift store. When you tailor your restrictions for the specific needs of your business, you are reinforcing your position as a White Hat. What's more, your business will boom.

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Download a free copy of my newly designed e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication. Ask them how they can help your business distinguish itself.

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Black Hats and White Hats: Not Everything Is Confidential

2009-08-28T04:20:00Z

(Part Five in a Series)

Remember the story about the boy who cried wolf? He tried to manipulate others by falsely claiming that a wolf threatened the town. Though the townspeople were fooled the first few times he raised the fraudulent alarm, they quickly became weary of his charade and began ignoring him. When he faced a true crisis, no one paid any attention to him.

Black Hats cry wolf relentlessly and incessantly. In the world of the Black Hats, everything about their business is Confidential (with a capital "C") and subject to protection. Give them a "Confidential" stamp and an ink pad, and they can amuse themselves for hours, maybe even days. No piece of information is too insignificant to avoid their grasp.

The truth is that while your business may rely on vast amounts of important information, most of that information does not meet the legal definition of trade secret or confidential information.

White Hats recognize that most of their information -- though important -- does not warrant protection as a trade secret or confidential information. While Black Hats try to identify as much as they can as "trade secret," White Hats realize that they need to focus on the information that truly is protected.

Before you identify something as "confidential" or "trade secret," take care to specifically identify why the information should be protected. Don't overreach. In consultation with your legal counsel, identify why your information should be protected. Thoroughly document your efforts, and take appropriate steps to secure and protect your information.

If you cannot articulate a coherent reason why the information is subject to protection, you won't be able to identify a reason when the information has walked out the door with a disloyal former employee. If, when you pitch your case to a judge, you cannot meet your burden of proof, you will be like the boy who cried wolf. By crying "trade secret" when no secret exists, you will annoy the judge and minimize the importance of your truly valuable information.

Not everything is confidential or trade secret. Wear a White Hat. Carefully and specifically identify the true trade secrets and confidential information in your business, then work aggressively and relentlessly to protect that information.

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Download a free copy of my newly designed e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication.

Black Hats and White Hats: One Size Does Not Fit All

2009-08-27T07:18:00Z

(Part Four is a Series)

Clothing stores have for years perpetrated the lie that, for at least some types of garments, one size fits all. Look around at the people you know, and you will agree the "one-size-fits-all" proposition is laughable.

People come in many different sizes and proportions: tall and short, lean and plump, and everything in between. My son and I are about the same height, but if I try to squeeze into a pair of his pants, I will burst the seams. My daughter is drowning in cloth if she puts on one of my shirts. One size does not fit all.

If you want to look your best, you will wear clothes that are specifically tailored for your shape and size. You will choose colors that coordinate well with your skin tones, hair, and eyes. You will choose styles that are appropriate for the activity you are undertaking. A tee shirt, jeans, and boots are appropriate for a recreational hike in the woods, but not for an interview for an executive level job.

Most people know better than to wear shorts and flip flops to a black tie event. Nonetheless, those same people often make the mistake of trying to shoehorn all of their employees into a restrictive covenant that they got from a neighbor or, even worse, one that they downloaded off the internet. These short-sighted efforts are the equivalent of trying to fit a 350 pound defensive tackle into a size 2 sun dress. It's not a pretty sight, and the dress gets destroyed in the process.

White Hats know that restrictive covenants must be specifically drafted for the particular employee or position. A skilled tailor uses no more and no less material than is needed to properly do the job. White Hats ensure that their legal counsel carefully tailors their restrictive covenants to fit the position at issue. They may have to prepare several different forms of the restrictive agreement, but all of their employees have restrictive covenants that fit them like a well-tailored suit.

Black Hats, on the other hand, assume that one size fits all. Not wanting to leave anything uncovered, they add overly broad provisions and needless verbiage. They reason that if a non-compete agreement is good enough for the CEO, it's good enough for a rookie sales representative. Figuratively speaking, they give a 5XL shirt to a diminutive five-year-old child, and then are baffled when the court throws out their restrictive covenant.

Wear a White Hat. Draft restrictive covenants that are specifically tailored for the person or position you are trying to cover.

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Download a free copy of my newly designed e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication.

If you find the BiziBoom blog posts helpful, I invite you to subscribe to the blog. Your comments, suggestions, and critiques help improve the quality of the discussion. Thank you for your input.

Black Hats and White Hats: Narrow Restrictions

2009-08-21T04:53:35Z

                                                                                                    (Part Three in a Series)

Although the color of your hat depends on the cumulative effect of your actions, one of the surest indicators of its color is the scope of any restrictive covenants you have with your employees.

White Hats have narrowly drafted restrictions, closely tailored to their legitimate business interests; Black Hats seek expansive restrictions. White Hats recognize that employees need to make a living after they leave; Black Hats are oblivious to anything except their own selfish interests. White Hats focus on unfair competition; Black Hats want to stifle competition per se.

If you want an enforceable restriction, you must change the way you think about most negotiations. Stand your thinking on its head. Rather than trying to grab as much as possible, look for the minimum that you need to protect your business interests. Think small.

Americans believe in free enterprise and fair competition. When you ask a judge to enforce your restrictive covenants and prevent someone from competing with you, you must be able to show her that your restriction is fair, reasonable, and limited. The judge will disallow anything that exceeds the Least Restrictve Means Possible.

Years ago, a man named George called me in a panic late one afternoon. He had just been served with a Complaint alleging that he was violating a non-compete agreement he signed with his former employer. The court had scheduled a hearing on a temporary restraining order for the next day.

George came in the next morning so that we could prepare a response to application for injunctive relief. His former employer was trying to enforce the most poorly drafted non-compete agreement I have ever seen. When George told me his story, the agreement became even more absurd.

George had approximately 20 years experience in selling manufactured homes in retirement communities. He is a veritable genius when it comes to filling in retirement communities and to helping his employer make large amounts of money.

The former employer recruited George because the employer had been unable to fill a retirement community he had developed. The owner was on the verge of financial ruin. George joined the company, brought his 20 years of knowledge and experience, and quickly filled the community. When the employer reneged on his financial commitments, George left.

The employer operated several locations throughout the southwest where he sold manufactured homes. The employer sought to enforce a restrictive covenant prohibiting George from working within 300 miles of any of these facilities for three years. George felt the restriction was unreasonable. He was right.

In preparation for the hearing, we prepared a map on which we drew a 300-mile radius around each of the locations. Though George had worked at a single location in Central Arizona, the employer sought to restrict him from working in Arizona, the western half of New Mexico, northern Mexico, most of Utah, the most populous areas of Nevada, and California from the Mexican border to north of San Francisco. The restriction at issue was patently unreasonable, even before we considered the three-year restriction.

When the employer's attorney marched in the three-year, 300-mile restriction, the judge laughed him out of court. The restriction was so overbroad that we had to say virtually nothing.

Black Hats like George's former employer are obsessed with protecting everything that they end up protecting nothing. Before you draft a restrictive covenant, ask yourself the following questions:

            *    What specifically am I trying to protect?
            *    Why would it be unfair for the employee to compete in the protected area?
            *    Do I really need this restriction? Why?
            *    What is the smallest restriction that adequately protects my business interests?

As we have noted previously, the law of restrictive covenants varies widely from jurisdiction to jurisdction. Seek the advice of a seasoned attorney who understands how to protect your business interests through narrowly drafted restrictions.

Wear a White Hat. Draft narrow restrictions that use the least restrictive means possible.

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Download a free copy of my newly designed e-book, "Ten Fatal Mistakes that Business Owners Make (And How to Avoid Them)" at http://www.gfrlaw.net/firmpublications.aspx. Our friends at Tactix Creative have done a fabulous job improving our message through meaningful visual communication.

If you find the BiziBoom blog posts helpful, I invite you to subscribe to the blog. Your comments, suggestions, and critiques help improve the quality of the discussion. Thank you for your input.

1 pound fresh asparagus, trimmed and cut into one-inch pieces	3 cups sliced fresh mushrooms
3 large leeks (white portion only), sliced	6 tablespoons butter
1/4 cup flour	1/2 teaspoon salt
Dash of pepper	2 cups chicken broth
2 cups half-and-half	1 can (11 ounces) whole kernel corn, drained (I prefer fresh or frozen corn instead)
1 tablespoon chopped pimientos