Most people don’t know Marcel Lacroix’s name, but anybody who watched our Canadian Speed Skating team at the Olympics saw him coaching our athletes. My kids are at the Olympic Oval in Calgary this week in a speed skating camp. He is giving talks to the kids about what it takes to get to the elite level of the sport. As I listened to his talk, I drew a lot of parallels to business and the challenges our clients face in getting to the top of their industries.
Participation Versus Commitment
Marcel has worked with many athletes and puts them into two general categories – participants and competitors. Participants typically have a lot of skill and natural ability. They tend to like the sport and have fun. They usually don’t fulfill their great potential, as they are satisfied with moderate results. They are happy to make a team, or make an event. They are happy to “get the jacket.” The second type is the competitor. The competitor may start out without the skill and natural ability of the participant, but makes up for it in passion, hard work and sheer determination. Competitors love the sport and push themselves and their coaches to be as good as they possibly can be. Marcel cites Christine Nesbitt, Olympic Gold Medalist, as a competitor. When he started coaching her, Christine was extremely strong but was not a good skater. Together they worked on her fundamentals and eventually were able to transfer her great strength to the ice. She took everything he set out for her seriously and put in maximum effort to reach the podium in Vancouver.

Christine Nesbitt accepting the gold medal, 1000 m speed skating at the 2010 Winter Olympics.

Quality Versus Quantity
The second main point Marcel made was quality versus quantity of work. He would much rather have a skater do two laps in perfect position than 10 laps in poor position. He said that practicing the wrong things makes you good at the wrong things. Practicing in the right form will build your endurance in the right form.
Work on Weaknesses
Third, he said that to improve, you need to work on your weaknesses. If a skater has good endurance, but lacks balance, her times will greatly improve if she improves her balance. This is analogous to a manager elevating the constraint in the business instead of improving areas that won’t improve throughput.
Finally, his recipe for success comes with a series of short term goals leading to the eventual goal. If a skater and coach can map out a series of short term goals that are challenging, yet achievable, they can reach their ultimate goal. This is very similar to the flywheel concept described in Jim Collins’ book Good To Great.
So how can Marcel’s advice help you in growing and improving your business? Firstly, you should ask yourself whether you are a competitor or a participant. While there is nothing wrong with being a participant, a competitor is required to reach the full potential of your business. Work on your weaknesses. In business, you can buy a remedy to your weaknesses. Improving them will hit your bottom line. Thirdly, having a roadmap to your ultimate goal with short term goals along the way is extremely powerful.
Marcel Lacroix is available to give talks to groups to share in person his recipe for success. You can reach him at lacroix@ucalgary.ca

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Things To Consider When Buying A Franchise

by Scott on July 26, 2010

Franchises are attractive to the first time business owner. They are sort of like one of those home theatres in a box. The business owner doesn’t have to pick individual components and make sure they work together. The franchisor has already determined all of that. The franchisee has to take the training, follow the instructions and the business should operate successfully.

This can be true in many situations but not in all of them. Franchises should be investigated with a level of due diligence that compares to that done for the purchase of an existing private business. You are going to be investing a lot of time and money into this franchise so make sure you have your eyes wide open going in.

The first thing I would consider is the strength of the brand. Is the brand so strong it will automatically drive sales? Is it just a regional brand that has no customer awareness in your area? The answers to these questions will have a big impact on the value of the franchise and the effort you will have to expend to build business.

How strong is the management system? Is the system really strong in that all franchised outlets are run identically with a consistent customer experience or is there wide variation between locations? How well run is the franchisor’s head office?

What is the return on your investment? Will you get a sufficient return for the risk you are taking? There is no point getting involved in a franchise to basically buy a job for yourself. You could take a job somewhere and get paid the same amount with no investment at risk.

Look at the overall industry and identify any trends that could affect you. Are there competitors that are starting to rise up to provide a real challenge? Talk to franchisees and get revenue and cost data from them. Don’t rely on proforma financials from the franchisor.

Talk to your banker. If the bank has a formal franchise package for your particular franchise that is a very good sign. It means that the franchisor has a relationship with the bank and there might be buy-back agreements or other agreements between the two parties that will make your loan application process much easier.

Most of all, make sure you have a passion for the business. If the business doesn’t interest you, it doesn’t matter whether it’s a franchise or a private business, you won’t have the drive to succeed during the tough times.

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How to Pick a Banker

July 21, 2010

Picking the right banker to deal with can make all the difference when it comes to get financing for your business. You might think that picking the right bank is the most important thing, and while it’s important, picking the right individual to deal with is equally important. The first thing I would look for [...]

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My Hunt for a New Car Part 2: The Purchase

July 19, 2010

On Friday, I bought a 2004 Nissan Maxima off a dealer lot.  It’s a nice looking car that filled my requirements – price, space, perceived reliability and safety.  While this is all fine and good, it doesn’t make for an interesting blog.  How the deal was made makes for a much more interesting story. On [...]

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My Hunt For a New Car

July 15, 2010

Two weeks ago, my car was flooded in a flash rainstorm. It’s a 1998 Honda Accord with 280,000 km on it and I bought it new. That car is by far the best I ever owned and I was pretty sad to see it go. It was as inexpensive and reliable as it gets. Here’s [...]

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Is The iPad Useful For Business?

July 12, 2010

I’ve had an iPad for over a month now and I thought it would be helpful to relay my experience with it so that other business people can judge whether it would be useful in their workday. I tend to be an early adopter of technology and all things Apple, so I ordered the 64GB [...]

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How to Win When the Game Isn’t Fair

July 7, 2010

Imagine yourself a major league general manager. Now consider this: your top three players from last year have left the team for free agency because you cannot afford to match competing offers. Your owner wants to run the team like a business and set the payroll at $40 million (the three free agents that left [...]

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What Is A Business Plan?

July 5, 2010

If you’re thinking of starting your own business, you might be doing some research online. Whether it’s in blogs like this one, forums or question and answer sites, they will all tell you to write a business plan. Unfortunately, that doesn’t do you much good if you don’t know what a business plan is. The [...]

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Cash Management Services

June 30, 2010

This post discusses an assortment of banking services that fall into a category loosely labeled “Cash Management”. These services are lessor known banking services that make it easier to make and receive payments. Merchant terminals that take debit and credit cards are a must for many businesses. These terminals must be qualified for, much like [...]

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Seth Godin’s Linchpin: a review

June 28, 2010

Have you read Seth Godin’s Linchpin yet? If not, you owe it to yourself to pick up a copy. In fact, this is the best business book I have ever read. It gets to the core of why some are failing and some are thriving. It gets to deeper meaning, like how to get more [...]

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