AABC Blog

Earlier this month, figures from the European Union showed that what many Americans in the Netherlands think about Dutch doctors is true – they do prescribe fewer antibiotics than in any other OECD member country. The report, entitled Health at a Glance, shows that just 10.7 people in 1,000 are prescribed antibiotics in the Netherlands at any one time. This is around half the OECD rate of 20.6 and well below league leader Greece, on 36. The report also shows Netherlands has spent less on medicines in the last few years than many other countries, with spending down by almost 3% between 2009 and 2015. At the same time, the Dutch health system is highly regarded in international circles. In May, the Netherlands came in ninth place in a ranking of almost 200 countries by The Lancet magazine. The ranking was compiled by looking at how likely you are to survive various diseases, including tuberculosis, whooping cough and measles. And, a year ago, research by the Commonwealth Fund think-tank in America, put the Netherlands at the top of a list of 11 western countries in terms of its healthcare system.

Insight

The International Community Advisory Panel is trying to get greater insight into attitudes to the Dutch healthcare system among the international community and has launched a new survey to find out more. ICAP, an independent foundation set up in 2016, has already carried out two surveys, one focusing on the international community and housing and the other on education. The findings are being used by Amsterdam city council in its efforts to make the city a more attractive place to live and do business. The research showed that 63% of people considered to be expats in the Netherlands get no financial help from their employer in paying school fees and 77% of new arrivals get no help with paying for housing. In addition, over half of the 700 people who took part in the surveys have no plans to leave the Netherlands within the next five years at least.

Expat

‘We need to redefine what we mean by “expat” because most international workers these days do not get generous housing and school deal packages from their employers,’ said ICAP chairwoman Robin Pascoe. ‘In addition, most internationals in the Netherlands to work came here by choice and live here for much longer than a couple of years. Not only can they not afford the fees for international schools and expensive ‘expat’ housing, but they want their children to integrate into the Dutch community.’ Dutch government policy currently focuses on investing on creating additional international school places in Amsterdam and The Hague but moves are also being made to make Dutch schools more ‘international’ as well. ‘While the decision-makers at multinationals will benefit from spending on international schools, we also believe there are enormous gains to be made if the government invested properly in helping the children of new arrivals integrate into the Dutch school system,’ said Deborah Valentine, director of voluntary organisation ACCESS and a member of the ICAP board. Do you have doubts about doctors or issues about health insurance? Is the popularity of paracetamol a myth? Have your say in the ICAP survey about the Dutch healthcare system as seen through the eyes of internationals. We much appreciate your help. You can find ICAP's survey here. Photo credit: Michelle Tribe via Wikimedia Commons. Share this article:

In this short article, Adam Kiolle provides an update on the introduction of a new register listing the identity of the ultimate beneficial owners (UBOs) of businesses and legal entities registered in the Netherlands.

At present the Dutch commercial register (handelsregister) does not list information on who owns or ultimately controls Dutch legal entities (except for in the case of sole traders (eenmanszaken) and companies (BVs and NVs) with a sole shareholder), however this is soon going to change. Under new European anti-money laundering and financing of terrorism legislation, EEA Member States now need to implement a so-called UBO register identifying the ultimate beneficial owner of corporate and other legal entities incorporated within their territories. This register will list up-to-date information on the “beneficial ownership” of such entities. In the Netherlands, this UBO register will be integrated into the KvK’s commercial register. At present it is uncertain when the Dutch UBO register will be up and running, although it is definitely a question of “when” rather than “if”. While the European Member States are free to decide precisely how to implement the register, under the European legislation, they do not have a choice about whether or not to implement it. Once in place, virtually all businesses registered in the Netherlands will need to provide UBO information for the purposes of registration. The only exceptions (for the moment) will be for foreign companies registered in the Netherlands and (for obvious reasons) sole traders. The register will list details each ultimate beneficial owner’s name, month and year of birth, nationality, country of residence as well as the nature and size of the UBO’s economic interest in the entity. In addition to the foregoing information which will be publicly available, other information will be collected and kept on record in a non-public UBO register which will only be available to certain public authorities (most likely the tax authorities, national police and financial regulatory or investigation bodies). In principle (and subject only to very limited exceptions) entities will be under an obligation to provide and update the relevant UBO information, with failure to do so attracting serious penalties. Am I an UBO? Under the draft Dutch legislation, a UBO is defined as the “natural person who has ultimate ownership of or control over a business or legal person”. Beyond this it is not quite clear exactly how the UBO will be defined. For this, we will have to wait for the passing of a statutory instrument setting out the precise definitions for each type of entity. It is, however, likely that anybody who holds (or controls) more than 25% of the shares in a company will fall under the definition. Where no individual shareholder holds (or controls) more than 25 % of the shares, it is not unthinkable that the law might look to the board of directors and identify one or more of the directors as the UBO, as odd as this may sound. What is certain is that all entities will be deemed to have at least one UBO. Can I avoid being listed as an UBO? If you are the UBO of a Dutch business or entity, you may, under some limited circumstances, be able to have your personal information suppressed in the public register. However, to do this, you will need to be able to prove that publication of the details would give rise to an actual risk of fraud, kidnapping, blackmail, violence or intimidation. The other exception is where the UBO is a minor or otherwise lacking legal capacity. If you are a shareholder or director of a Dutch company and want to know how this will affect you, feel free to contact Adam Kiolle from Blenheim Attorneys. Photo credit: Patrik Göthe Share this article:

By: Sangbreeta Moitra, www.sangbreetamoitra.com

“Invisible threads are the strongest ties.”― Friedrich Nietzsche

Last week, I was talking to a friend in business development who has to give a high-stakes talk at a conference. He said, “Of late, my audience is just off. They don’t respond to my one-liners or humour. Fingers crossed for a better audience next time!” I’ve had that in the past too. A talk or presentation that was prepared for hours, with the perfect amount of witty humour, storytelling and rhetoric devices for audience engagement, that worked brilliantly at several conferences… fell completely flat at others. Zero audience engagement. No smile, no response. And worst of all, you have to continue speaking until you finish, to the wall of silent faces. Ever faced that? Why does it happen? Even with the best speakers, even with the help of top coaches, why doesn’t the audience always respond the way you want to your amazing prepared speech? Here’s the secret. It is not the audience that should be receptive to you. YOU should be receptive to THEM. It is unwise to expect the same reaction to the same content from different people in front of you. Their culture, sensitivities, attitude, perception, perspectives, mood and most importantly, collective energy as an audience are completely different. I faced this last year. Gave a talk on leadership communication at a corporate event and it was my ‘ideal’ audience. They laughed, cheered, clapped at all the right points. It was a fabulous experience. Repeated the same talk at another event and they didn’t even chuckle at what I thought was a very, very ironically funny communication issue. What then? Should I continue my talk as prepared, and hope that they respond to me? NO. Doesn’t matter which industry you’re from, and what your talk is about, if your audience engagement tactic is not working, SWITCH IT. Modify it on stage, at that moment, to reel your audience back in to your story. What do I mean? Different speakers have different styles. Let’s say you’re dramatic; theatrical hands and exaggerated anecdotes gets you going. Or, you have a serious presentation with some interactive segments. Either way, your audience isn’t responding. Interrupt your session right there with an active audience moment- talk TO them. Different tactics: If you’re bold, humorously acknowledge that your front row is not impressed with your Oscars-worthy story. Or, if you know someone in your audience, have a quick gag (joke) referencing him/her, that usually gets the crowd going. Example: Barack Obama (and his speechwriters) deserve an award for superb audience engagement. Within the first few seconds of his Correspondent’s Dinner, he makes fun of the event and then himself and then different people in the audience. “Welcome to the White House Correspondents Dinner. The night when Washington celebrates itself. Somebody’s gotta do it!” The speech is filled with different techniques of rhetoric questions, self-depricating humour and direct references to members in the audience. It worked like a charm. Now, this speech was created the way it was. For you, be prepared to pull the rabbits out of the hat. If audience-related humour isn’t working, you have to be flexible to jump into an anecdote. If the anecdote isn’t working, switch to self-referenced or relatable situations of humour for your audience. Be prepared to share a personal story, if your audience isn’t moved by your pure corporate results-driven slide deck. Ultimately, be flexible and be receptive to the needs of your audience. Change it up on stage, find their sensitivities until you hit bull’s eye and you will create a speech that’s remembered forever. The legacy is all yours to create.

About the author

Sangbreeta Moitra is an award winning Keynote Speaker and Corporate Storyteller based in The Netherlands. She works with top corporates to help professionals find value, confidence and a powerful speaker & leader within themselves. Alongside, she functions in a leadership role as a Global Manager in the pharmaceutical industry. Follow her on LinkedIn here and contact her at SangbreetaMoitra.com Share this article:

Avoid these simple mistakes to ensure that doing business is enjoyable and not a headache!

By: Adam Kiolle , Blenheim Attorneys As a legal advisor to small and medium businesses in the Netherlands, I help my clients through some of the most exciting and some of the most frustrating parts of doing business. In this blog, I share three simple tips to help you avoid some of the most common problems that I come across in my practice. Doing business can be one of the most rewarding things there is. There is nothing more exciting than starting a business, closing big deals and – if things go well – signing on investors, merging with or acquiring other companies, or even selling your business. I love advising on these kinds of processes. Unfortunately, there are also times when I am called on to help my clients with some of the more frustrating parts of doing business: disputes with customers, business partners, investors or, occasionally, competitors. One of the most striking things about so many of these disputes is how easily they can be avoided by observing these three golden rules during the start-up phase.

1. Think about and choose the right entity or form for your business;

In the Netherlands, there is a business entity to suit every small or medium business, from simple sole traderships, partnerships and “v.o.f.”s, to the well-known B.V. Things to take into account when selecting a business form are costs of establishment, the number of people involved, protection from liability and the ability to accommodate investors.

2. Think about and enter into clear, written(!) agreements with your business partners

If you are going into business with a partner or partners (even if it is your best friend), it is important to lay out your ground rules clearly from the very outset and to make sure that you have a record of them in writing. This can help to prevent misunderstandings and avoid disputes when it comes to working out how to share profits or making strategic decisions down the track such as bringing in outside investors, or selling or dissolving the business. Depending on your situation, you can do this using a partnership agreement or shareholders’ agreement.

3. Make sure that you have clear, written agreements with your suppliers and customers

In the same vein as the last point – make sure that you have evidence of your understandings with your suppliers, customers and other third parties who you do business with. It is a lot more difficult, time-consuming and costly to settle disputes in the absence of a written contract that clearly stipulates the nature and duration of your business relationship, as well as each party’s rights and responsibilities. Eliminate doubt with a good set of general terms and conditions and individual agreements such as service contracts, distribution agreements, sales contracts etc.

In short:

Some of the most costly and frustrating legal disputes are at the same time the most easily avoided. Taking the time to do some planning and making sure that you have a written record of your agreements when starting your business and commencing collaborations with third parties can save you some serious headaches and expense down the line. You don’t even necessarily need to involve a lawyer although, depending on your circumstances and the complexity of your business or deal, it may well be wise to seek legal advice. Adam is an English-speaking lawyer practicing commercial and corporate law at Blenheim Attorneys, Amsterdam. Share this article:

By: Annebet van Mameren, New2nl Last year there was a lot of commotion on the playground of a small town in the south of the Netherlands. What happened? A family from the school had gone skiing and had posted some photos of their holiday on Facebook. This had upset some dutiful (or maybe jealous) parents who had felt the need to inform the truancy officers. As a result, the family was fined 400 euros. Only people who are familiar with the Dutch School Attendance (Leerplicht) Law would understand what the issue was here. Children may only miss school under very specific circumstances, and a skiing holiday isn't one of them. The parents had told the school that their children were sick, while the smiling pictures told another story. To stop you as an international parent from winding up with a hefty fine, it is important to understand this Leerplicht Law. Written in 1969, the law dictates that children aged 5 to 16 (or 18 if they don't have a diploma yet) must attend school during term time (unless they are unwell, of course). To be precise, the plicht (obligation) takes effect on the first day of the month following a child’s fifth birthday. The Dutch summer holiday lasts for six weeks, and children are off for an additional six weeks, spread out over the year. You are only supposed to go away during these official school holidays. This law is taken seriously; just before and after the main school holidays, truancy officers at Schiphol airport check whether school-aged children have official permission to miss school. If not, the usual fine for the parents is 100 euros per day. In case of multiple offences, the parents might even have to appear in court. After all, they have broken the law. There are a few exceptions to this strict law: work commitments, family events, religious celebrations, and on the grounds of age (for 4 and 5 year olds). Below you will find a brief description of each of them, and how you can apply for these exceptions.

Work reasons

With seasonal work, work in the tourist sector, farming, and other jobs that peak in high season, you may not be able to go away during the school holidays. In this case, you can ask for maximum of 10 days off every school year for your child. You’ll have to fill out a form called an Aanvraagformulier vakantieverlof (LPW art. 11f). You can request it from your school’s admin department, or it may be available on the school's website. Together with this form you need to submit a statement from your employer. Parents who are self-employed must submit a self-written declaration with a plausible explanation as to why they have to work during the school holidays. You have to put in your request with the headteacher at least eight weeks before your planned departure. Also keep in mind that your child may not be absent during the first two weeks of the new school year.

Family events

Families with relatives in other countries often miss each other most on special occasions, be they happy or sad ones. Parents want to be part of these occasions, with their children, but how does that work with school? For these situations the truancy officers have created another form, called an Aanvraagformulier verlof wegens gewichtige omstandigheden (LPW art. 11g). Gewichtige omstandigheden stands for ‘significant circumstances’ and these are tightly specified. They include moving house, a wedding, a family member's milestone wedding anniversary, and when a family member is terminally ill or has passed away. Here, 'family members' means first-, second- or third-degree relatives (for example, parents, grandparents, siblings, cousins, uncles, and aunts). The maximum duration of leave has been set out in the law, for example a maximum of 5 days for a wedding abroad. If a relative is seriously ill, the duration of the leave is established together with the school's headteacher. If this leave exceeds 10 days, the headteacher has to forward your request to the truancy officers, who will take the final decision. The last valid listed reason on the aforementioned form is ‘other reasons the headteacher deems important’. This is a bit subjective, and sometimes you have some wiggle room here. Try to figure out what the headteacher of your school finds important enough. In any case, it has to be an important family celebration that is taking place on a specific date over which the parents have no influence. For example, a family reunion, or visiting a newborn cousin, is not specific enough. The headteacher would ask why they need to happen on the days specified, and would generally turn the request down. To give you an idea, our children were allowed five days off when we went to their grandfather’s 80th birthday celebration in the US. We had arranged for him to celebrate his birthday in the week after our children’s May vacation, and we combined it with the 75th birthday of my husband’s uncle who had invited the entire family. So in this case we were allowed to stay a bit longer on the other side of the pond. For all requests you have to submit proof, for example a wedding invitation. However, you don't need to prove that you are related to the bride or groom. Take the time to fill out this form correctly, as you only get one shot. Don’t call the event a family reunion first, and then suddenly declare that your father is getting married for the 5th time after your first request has been rejected. It is also very important to choose your words carefully, for instance avoiding using the word ‘holiday’ on the form!

Religious celebrations

A pupil has the right to take a day off when they have obligations arising from their religion or belief. This is only valid for the day of the celebration. So you may not take off the whole week in order to celebrate Eid with your family in your home country. On the officially recognised Christian holidays, all schools, including non-religious ones, and schools of other faiths, are closed.

Four-year-olds

Most children begin school the day after their 4th birthday, which means that for the first year they are not legally obliged to attend school. However, once your child has started school, s/he is expected to attend every day. If you feel that your child needs to miss a day, you should inform the teacher, so they know where your child is. If your child is going to be absent for multiple days, you should still fill out the above-mentioned forms. In this case it is very likely that your request for an extended absence will be granted.

Exceptions for 5-year-olds

Not many parents are aware of the exceptions for 5-year-olds. A 5-year-old child may miss a maximum of 5 hours of school per week. You could use this exemption when attending full school days is still too tiring for your child, or, for example, so they can take swimming lessons during the day, when the pool is not crowded. If there is a special reason, you may ask the headteacher to grant your child a maximum of 10 hours off per week. I’m sorry to tell you that you may not accumulate these hours over multiple weeks. Furthermore, the exceptions all end once your child turns six. “Why is the law this strict?” I can hear you cry. “In my country, my children can just go on holiday whenever we want”, you might say. Or: “For my child, a few missed days of school is neither here nor there”. Maybe that is all true, but some children would actually miss a lot of vital education if they stayed away for a while. For example, for those pupils whose parents have less formal education and/or don't speak Dutch, it might be hard for them to catch up The law is the same for everyone. The headteacher cannot make an exception for one child, but not for the other. ‘Regels zijn regels’ ('rules are rules') is a phrase that you’ll often hear in this context. Furthermore, for continuity for the teacher, and from a social perspective, it is important that the pupils experience all celebrations and events together. They start and end the year together, and the school's Christmas lunch is a memorable event that they will keep on talking about in the months that follow! . You should also be aware that the school is obliged to report all non-valid absences. If the headteacher gives permission for a invalid reason, the school can get fined. In other words, they don’t have a lot of leeway. If you are frustrated by the Leerplicht Law, this hopefully at least provides you with a bit of context.

Pilot schools

In 2011, eleven schools in the country were designated pilot schools, which are allowed to experiment with more flexible holidays. The parents love this initiative, but as for most schools the results have gone down and the pressure on the teachers has increased, the school inspectorate isn't overly positive. Nevertheless, the pilot has been extended to 2018, and is now with 20 schools. Who knows, maybe it will become easier to take time off in the future - at least a few days here and there. As a parent I would be very grateful to say the least! You can find more info on the 'leerplicht' (in Dutch) here. Share this article:

By: Steven Lips, Expatica Communications. Lately, I have been feeling like a wimp when meeting new people from the States at networking events. At two recent networking events with people from the US (not at the AABC, of course), the following occurred: I met a guy at the bar; shook hands with him; introduced myself by saying my name; and looked him in the face. Then it started. The guy started to pitch himself in a way that totally took me by surprise. It was as if he was facing the Dragon’s Den jury and I was on that jury. In 10 sentences, he pitched me all his glories: his education, the fact that he started three companies that he sold successfully, and his latest endeavour of running a very successful new start up that is changing the way people are participating in social media. I was stunned by his effort to pitch his best him to me. I just mentioned my name.

‘Pitch and ditch’-ready

That same evening, I met a bunch of other American entrepreneurs and sales representatives. The level of confidence with which they told me about their accomplishments struck me, as did the ease with which they left the conversation when I told them I am not a business owner or marketing decision maker. The fact is that they did something I have always had a hard time with: pitching my accomplishments and leaving conversations when there isn’t a clear opportunity for short-term business. This insight made me feel like a sissy.

Was I really a wimp or did they act somewhat like a jerk?

After these encounters with ‘pitch and ditch’- ready Americans, I wanted to have a better understanding of what happened. Therefore, I browsed the internet, which gave me some interesting insights in the similarities and the differences in the way Dutch and Americans connect with others in a business networking setting. At Expatfocus, I found an article that explains the Dutch networking culture:

“The Netherlands has a formal business culture in which honesty and courtesy are highly valued. Contacts and networks are very important, and you should try to arrange introductions through a third party.” “A brief, firm handshake, with good eye contact, is the normal business greeting. Don't smile too much as this may be seen as insincere.” “The Dutch communication style is fairly quiet and reserved, but also direct and frank. The Dutch have a very analytical approach and will examine your proposals in great detail. You will be taken at your word, so don't make promises you can't keep, and avoid hard sell or exaggerated claims.”

How about the American networking culture?

Looking for advice on how to connect with Americans, I came across an interesting blog by a professor at Brandeis International Business School. He wrote that MBA students at the Brandeis International Business School learn to network the American way: go to networking events and meet people; speak about your accomplishments; impress people with your skills; and become your own best advocate.

Let’s sum up the biggest differences between the Dutch and Americans

Dutch: be direct, realistic, avoid being regarded as a braggart. US: pitch yourself, be your own best advocate, mention your biggest accomplishments.

One question that will bridge the gap

What is my solution to help Dutch people stop feeling like a jerk and Americans feel like a wimp? How can we meet each other in the middle? I believe we can find that golden touch point of two cultures with one small question. One that we should drop directly upon meeting someone new. And that question is:

“How can I help you reach your business objectives today?”

Or, less focussed on business:

“What is it that you are looking for today”?

This will open a new world of opportunities for all parties involved in the conversation. It allows you to pitch your company, to ask for advice, and to focus on helping each other instead of dancing that awkward, ugly "are you money" dance.

Let’s put it into practice

People like to help each other. We like to add points to our Karma score. We just need to ask how we can best help each other. So, let’s stop feeling like jerks and wimps. Let’s stop pitching, bragging, and shying away from speaking out loud. Ask everyone you meet today the connecting question: 

“How can I help you?” Share this article:

Finding a decent place to live can be a major headache in Amsterdam, and a costly one at that. The International Community Advisory Panel, set up to try to improve the dialogue between the international community and Amsterdam officials, is carrying out a new survey on housing - to identify bottlenecks and hopefully bring about improvements. The results of ICAP's previous survey on education are currently being finalised. We can tell you over half of the city's international residents want to send their children to an ordinary Dutch school and 70% get no help from their employer in paying for education. The more people who take part in ICAP's housing survey, the more weight it will have, so please take a few minutes to fill it in - in complete confidence of course. You can find ICAP's housing survey here. Share this article:

By: Neifor B. Acosta, AABC Secretary of the Board

Merriam-Webster dictionary defines “networking” as “the exchange of information or services among individuals, groups, or institutions; specifically, the cultivation of productive relationships for employment or business.” 1 [emphasis added] The two operative words in this definition are “exchange” and “cultivation” because without either of these important elements, it would be impossible to grow your network and derive its benefits. This shouldn’t come as a surprise; however, most people approach networking as simply the exchange of information part. Ineffective networkers fail to follow through with the “cultivation” part. People often attend networking events with the idea that they will walk out with a handful of clients - well hate to tell you — business cards are not clients. Leads they may be, but there is still much work to do before you can even begin to consider yourself on the path towards billing. Business relationships are based on trust and trust takes time to build.

Practice Makes Perfect

Proper networking requires some preliminary thought of what you’re trying to accomplish. If you want to find friends with like-minded interests — join a social network. If you want to solely find clients — advertise. If you want to meet individuals that can help you with business goals, then find a business network. Swim in waters where the fish you want to meet also swim. Once there, it’s up to you to make yourself known. Have a short (1 minute max) recitation of who you are and what you do. Yes, your “elevator pitch.” This first encounter must leave a good impression on the listener as to who you are and what you do that brings value to the prospective relationship. It should come across very natural, not like a sales pitch. It must be part of your essence. Just think, how would you respond if someone asked you about where you live or where you were born? Your answer would be very natural indeed. These questions are so simple and fundamental to your being that any answer you give simply cannot come across as forced. That’s how your “elevator pitch” should sound. And when you say it with such surety, it can only be perceived as genuine; a seed for cultivation. This takes practice. The more you do it, the more it becomes second nature. Organizations like the Amsterdam American Business Club offer a great way to practice your elevator pitch and to explore and expand your business network.

The Follow-Up

How often do you follow-up with individuals you meet at a networking function? And no…sending a simple LinkedIn connect request doesn’t count! The follow-up is probably one of the least practiced parts of networking. This is how you begin to “cultivate” a productive relationship. At the very least, a follow-up should convey gratitude for making an acquaintance. It demonstrates professional courtesy and sets you up for a future encounter. If you’re interested in that person’s business or background, then nothing should dissuade you from asking to meet at a convenient place/time to continue a discussion about mutually beneficial business interests. This one-on-one time is much more effective to determine if there is a mutual benefit to your business networking goals. Most real “networking” occurs after the event. Let’s talk about LinkedIn for a moment. There is no question that LinkedIn is a valuable tool to connect and exchange information with people in and out of your network. From a networking perspective, LinkedIn is not often used as intended. People seem to equate LinkedIn to a virtual business card. For starters, one of the biggest mistakes people make when connecting with someone via LinkedIn is that they fail to include a personal message. How often have you received a request to connect from someone you met at a networking gathering that does not make any mention of why the person wishes to connect or even a brief salutation expressing gratitude for having made an acquaintance? This is even worse when the invitation is coming from someone you have never even met! Would you send a cover letter to someone that simply says, “Hi, I’d like to add you to my personal network?” Hopefully not. Instead, use that initial communication as a way to begin building rapport with this new person in your network. LinkedIn is a powerful professional social media platform that allows you to convey details about your professional life. Don’t use it simply as a way to collect as many invitations as possible. Think about that next time you send an invitation request.

Bring Value to Your Network

Final thoughts. Networking should be an opportunity to learn something about others in the group you are networking with and maybe even learn a bit more about yourself. If you are in a business networking group, find out about similar entrepreneurial stories that can help your efforts. Inquire about tactics or strategies used by others to find and retain clients. Share ideas about your own business aspirations and challenges. Or maybe talk about how you were able to successfully assist your clients overcome their own business challenges. All of these things demonstrate a passion for your purpose that should help cultivate (there’s that word again) trust, which in time leads to direct business, indirect referrals and possibly even ideas to help you on your way. The AABC exists to foster such networking opportunities for business minded individuals. It is more than just a pool of prospective clients. Our members consist of a variety of professional profiles — from entrepreneurs to CEOs – that can bring value to your business needs. Come take advantage and contribute to this network. To paraphrase President John F. Kennedy, ask not what your network can do for you — ask what you can do for your network. After all, this is what we should do for our own prospective clients. Share this article:

By: Michael Knulst, www.sophiq-software.com

Why are you in Business? What is the value of your Business? Are you in the right Business?

We have entered a new era: many of the old business models with their related revenue models don’t seem to work anymore. There is a whole new dynamic and as entrepreneur we have to shift our old paradigms and ways of thinking. Many consultants emphasize that business strategy is necessary and I agree with that. The main question however is how to do this? In most articles and blog posts I read, the authors only mention that strategy is very important and that’s it. Being an entrepreneur myself I am much more interested in the next step, how to do this?

 Strategic thinking

Most business owners who struggle are busy with the day-to-day of their business and take action on what’s appealing. They started with some sort of idea on a product or service based on emotional reasons. Instead of developing a solid business plan, they just start enthusiastically without thoroughly thinking their business through. And that’s the tricky art. After all, if you fail to plan, you plan to fail.

Another category is often struggling not only with developing a business plan but developing an overall strategy for conducting business. It’s not always that people don’t know how to develop a plan. Oftentimes small business entrepreneurs do know how but they simply don’t. They think skipping the planning will get them to market sooner. It often times seems so much easier to conduct small business practices, that a plan would be overkill. However, in small businesses a small mistake can have a greater impact for a longer duration if it’s in regard to a core business model broken or objective lost.

The third category has too much of a focus on earnings instead of value. They lack long-term vision and they are actually digging their own grave. So, in the situations mentioned above we find the main reasons why so many small businesses struggle; they all lack some sort of strategic plan. Strategic entrepreneurs finally, know their vision, develop different alternatives for its accomplishment and choose the approach they think is most probable.

Strategic planning

In the past I have been working quite a lot with the Strategic Business planning process. This usually started with a one or two day brainstorm sessions, somewhere in a nice resort. One of the participants worked everything out and it all ended up in a plan of 25 pages or more. The only problem was that after this plan was presented, in most cases, everybody started running and nobody ever looked back into the wonderfully produced strategic document anymore. I eventually found out that Strategic Business Planning does not work for an unknown future, where speed seems to dictate our choices. It occurred to me that in many cases the success of a business is determined by the quality of its Business model. A Business model describes the rationale of how an organization creates, delivers and captures value. In other words; Your Business model represents the strategic blueprint of your organization. I found it remarkable that many entrepreneurs do not exactly know what their business model is. For the past 4 years I have been consistently working with developing business models and the first step is to evaluate your current one. Personally I like the business model canvas from Alex Osterwalder. This is a strategic management and entrepreneurial tool that allows you to describe, design, challenge, invent and pivot your business model.

Goal setting

Setting goals is an essential step in the strategic planning, no matter what method or canvas you are using. Writing your goals really down is the driving force in order to prevent you from the trap of mediocrity. Written goals provide you with clarity of outcome, which is a prerequisite for becoming an outstanding decision maker. The irony by contrast however is that most people spend more time planning their summer vacations than they do planning their business. Most people major in minor things. The majority of SME entrepreneurs invest their time, money and energy on the wrong way! They get caught up in the things that keep them busy but contribute very little to the overall quality of their business and lives.

Execution

Once you have your strategy (business model) and goals in place, more than ever, it is of vital importance that your plans are executed fast and without failure. Executing strategy -getting the right things done- has become the new differentiator in today’s economy. Now it comes upon mastering your focus so that achieving your goals happens quickly and automatically. The primary benefit of mastering goal setting and focusing on their realization is that you are in control. The overwhelming majority of entrepreneurs are so caught up in the urgent activities of daily business that they seem to be sprinting in a dense fog. They have become business runners; they are running hard but going nowhere. They’ve confused activity with accomplishment.

In order to keep your focus on your goals I prefer to work with roadmaps. A strategic road map for example, is a visualization of your business blueprint with a clear overview of what actions are needed to help your company achieve its long-term goals for success. It connects the dots for people in your organization by showing everyone how their everyday actions fit with the company's vision of where it wants to be in the future. The right roadmap supports the alignment of strategy, execution and control, making organizations successful in implementing their strategic goals fast.

Speed

The world is changing fast, technology is changing fast, markets are changing fast and people’s interests are changing fast. Great business is about speed. Speed is the new currency in business; the faster you move, the more you’ll learn. I know lots of entrepreneurs that have been struggling with their business in order to get it going. They want to make a difference and help themselves, their families, their employees and customers succeed. They want more and they apply themselves, they get outside of their comfort zones, acquire new skills, work like crazy, make mistakes, fail but they’ll never did quit. Quite honestly I am convinced that because of this drive and persistence combined with a clear vision and strategy, a sound mindset and the right instruments, success is inevitable. My American mentor has a saying that I would like to share with you:

“In business and life there are only two options: Either you win….., or you learn.”

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About the author

Michael has over 25 years’ experience as business founder, start-up director, business development manager, sales driver, ceo and philanthropic advocate. He made over 80 million dollars on business for the companies he has worked with and is currently occupied with his fifth start-up, Sophiq. www.sophiq-software.com LinkedIn Michael Knulst       Share this article: