The real value of information…

On June 20th, 1815 Nathan Rothschild informed the British government that Wellington had defeated Napoleon. They didn’t believe him.

To really upset them (my personal interpretation) he began selling all of his stock on the English stock market, and with everybody believing that Wellington had been defeated, everybody started selling. Prices plummeted. At the last minute, Rothschild’s agents secretly began buying up the stocks at rock bottom prices. One day later Major Henry Percy showed up, confirming that Napoleon had been crushed. This single event gave the Rothschild family complete control of the British economy. That is the value of information. And that is the cost of ignoring it.

When I started consulting with small business owners who were in trouble, I was almost always called in too late to to save the business. I found it deeply distressing to guide people through the same dreadful experiences that I had had. I felt completely inadequate that I could not rescue these businesses. I felt I was adding no value, and feeling guilty at my inadequacy.

I was chatting to a therapist one day, and he gave me a completely different perspective. He asked, “If your doctor told you that you had cancer, and that it was terminal, and that there was very little he could do — is it his fault? And would his best course of action be to walk away because he felt he couldn’t do anything, or to hold your hand through the process? The mere fact that you have some experience in this issue means that you lighten the load, and while you might not save everything, you will probably save enough for this person to survive financially.”

Information — the answers to questions that you haven’t yet asked because you are confronting a situation for the first time — has a huge value because it will save you time, money, possibly your business, and probably your home, and definitely a lot of anxiety.

The reason so many businesses die is that we leave things too late. It’s a bit like not wanting a medical diagnosis to confirm your worst fears. We know there is something wrong, but we don’t want to face how deep it goes. Indeed, the tests can be uncomfortable. Having somebody slipping a probing finger into the furthest reaches of one’s 1958 bottom to establish a swollen prostate is not nearly as enjoyable an experience as sipping a quality class of 1999 Vergenoegd Merlot before slipping prostrate into bed, and consequently we delay thinking about it. We fear what might happen, rather than taking some concrete action to define what we want to happen.

Facing business challenges is never comfortable. However, just as death is an integral part of life, so are challenges an integral part of business. Of course, you can face them alone. But I’d like to help if I can.

You know where to find me.