A big change in accounting will put $3 trillion in liabilities on corporate balance sheets
A big change in lease accounting rules effective Jan. 1 requires companies to record operating leases on their balance sheets.
Operating leases include everything a company rents to run its business, from office space, equipment, factories to planes and cars.
The accounting change will result in an increase in company leverage, a key measure when evaluating a company’s risk.
A new corporate accounting rule is about to pull an estimated $3 trillion out of the shadows.
Starting this year, companies are required to record the cost of renting assets used in their operations, such as office space, equipment, planes and cars, on their balance sheets rather than bury that expense in the footnotes of their financial statements, thanks to a new accounting standard now in effect.
The result will be trillions of dollars added to liabilities on their books. Until now, only leases that led to the purchase of the asset were accounted for in this manner. The change, by the Financial Accounting Standards Board, is supposed to make it easier for investors to evaluate a company’s financial obligations.
Sheri Wyatt, a partner at accounting firm PricewaterhouseCoopers, said “It’s going to affect all companies’ leverage. They will have more liabilities on their books than they had previously.”
Morgan Stanley expects the consumer discretionary sector to experience the largest increase in debt because of this change, and it estimates the leverage ratio for the retail sector to grow to 3.4 times from 1.2 times.
U.S. public companies are committed to a total of $3 trillion in operating leases, according to International Accounting Standards Board. Companies with large amounts of operating leases include retailers and restaurants that lease properties and airlines and shipping companies that lease airplanes, cars and ships.
It may force investors, including quantitative funds, to change the way they measure certain financial criteria they use in making their investment decisions. Leverage — measured in the ratios of debt to earnings or debt to equity — is a fundamental number used when evaluating a company’s risk.
Analysts and sophisticated investors hadn’t really ignored the large amounts of lease obligations when calculating debt ratios. For many years, they have been capitalizing leases by multiplying the annual rent expense by 8 times to get the estimated value of the remaining lease payments. However, the numbers companies now have to put on their balance sheets may look very different than those estimates.
“I do think people will have to adapt to new metrics – and they may be surprised. The liabilities and assets that companies report may look very different from the ad hoc estimates that people have used in the past,” Todd Castagno, equity strategist at Morgan Stanley, told CNBC.
“Those very common metrics that people look at to value equities, to look at performance, to screen for high quality stocks, all those ratios are going to change,” Castagno said.
Quant fund surprises
The change in company leverage will directly affect some quantitative funds that use leverage as a screen.
For example, the MSCI Quality index uses debt to equity as one of the metrics to rank companies. If a company’s debt to equity ratio changes significantly due to the new accounting standard, it will get screened out of the index.
“You might have different companies moving in and out of what you define as quality depending on how these ratios change,” Castagno said.
To be sure, the additional liabilities on the balance sheets shouldn’t have an effect on company credit ratings as they had already been taken into account.
“We don’t expect a significant rating impact,” said Kevyn Dillow, accounting analyst at Moody’s Investors Service. “The credit quality is not changing. Moody’s estimate of a lease obligation is pretty precise in that we calculate a present value based on company’s disclosures.”
Data vendor inconsistencies
To add to the complexity, some data vendors haven’t incorporated lease liabilities into companies’ total debt amounts, and won’t in the future. Depending on what platform investors use, they will get very different numbers.
For example, Refinitiv will not treat operating leases as debt for U.S. companies, only as non-debt liabilities on the balance sheet, to “allow clear comparability of reports across companies, markets and accounting standards,” a spokesperson told CNBC. It will only add the leases liabilities to debt for companies filing under International Financial Reporting Standards, mostly in the European Union, Asia and South America.
Bloomberg Terminal is already incorporating lease liabilities in company debt.
FactSet told CNBC that it has not updated the data for early adopters yet but will capture the operating leases as part of the debt in the next reporting season.
“Some of the data vendors are adjusting and some of them aren’t. Depending on what data vendor you use, you are going to get very different metrics. I think people are concerned with that,” Castagno said.
“Being busy means doing stuff, but being productive means getting stuff done.” Wiser words may never have been spoken, despite the anonymous origins of that inspirational quote. As a leader, I believe it more than ever—although I did not fully understand it early in my career. In fact, I spent years trying different strategies aimed at maximizing my productivity. And I continue to learn more; it’s been a lifelong experiment.
I’ve looked high and low for answers, but a key solution was literally right in front of me: My desk was a mess. That matters because not only do you lose time sorting through clutter, but an unorganized space creates negative energy. Sure, I got things done, and I continued to learn and grow in my career, but it wasn’t until I was in my 40s that I finally figured out what works in regard to maximizing my workspace. Now that I’ve fully implemented the formula, I’m much happier and infinitely more productive. My desk is now my oasis. Adopting these seven habits made all the difference:
1. Clean up your space.
Simplifying often means cleaning up. Some people are naturally more orderly, but research makes it clear that a tidy, simplified workspace promotes productivity for everyone. It also impacts your relationship with co-workers, as many people assume co-workers with cluttered or dirty work areas are lazy or unorganized.
Think about first impressions you’ve had. When you walk into a clean restaurant, hotel, restroom or store, you notice. And, consciously or not, you believe that the establishment cares about the details and takes pride in the work. I’ve always felt that taking a few minutes to make sure your workspace is neat and tidy will allow you to focus on the bigger things and will make you look more competent in the process.
2. Create the right energy.
Your workspace reflects who you are, so make it welcoming, calming and focused. The formula is fluid, but incorporating a few personal touches—a picture or two, a small potted plant, a Rubik’s cube—with a lot of open desk space will do wonders for your mental focus. Quality lighting that’s not too glaring and not too dim is also vital for optimum productivity.
I prefer minimalism when I organize my workspace—free from distraction. And I believe positive energy makes you more productive. It’s hard to describe, but you know it when you feel it; it’s definitely not the same for everyone. But it’s important that you surround yourself with the pieces, furniture and people that create positive energy for you. For me, that means neutral colors, great lighting, plants, access to natural light and (of course) amazing co-workers in my coworking space.
3. Turn off your notifications.
You’re watching someone give a presentation, and alerts keep popping up on their screen. They act like it’s not a distraction, but they have to pause and close the notification before moving on. We’ve all seen it; it happens all the time. Chances are, it’s happening at your desk, too.
One of the best things I’ve done for my productivity was to shut off my notifications. Absolutely nothing pops up on my computer screen, and no one buzzes through on my phone except my family. The idea that being constantly available makes you a better worker is a myth. Shut off your alerts, establish time blocks for checking messages, and watch your productivity surge.
4. Cut down on paper.
Clutter on your desk and in your workspace slows you down, distracts you and increases your stress. You probably don’t need most of the stuff on your desk, and any papers you may need later can be filed away. Overall, though, searching through electronically stored documents is far more efficient than digging through mounds of paperwork.
5. Make a stack.
I admit it—I’m a stacker. As clear as I keep my work area, I always have a single stack of papers on one corner of my desk, ready for my attention. I make my stack throughout the day and clear it before the end of the day or first thing in the morning. I also cover my stack so I am not distracted by what’s on top. This way, I know what needs my immediate attention and can stay focused on more timely tasks.
6. Keep a notebook.
It may seem archaic, but research has shown that writing notes by hand creates better retention. Scribbling down a list or agenda each day allows you to sort and prioritize activities in your head, so that you enter your day with more clarity and focus. I always keep a notebook open on my desk, beside my paper stack, and take it to all my meetings.
The idea was validated when I read that Sir Richard Branson has years’ worth of notebooks filled with countless ideas and thoughts. I’ve tried lots of notebooks over the years. For me, it’s blank white pages without lines. This simple, clean layout allows me to sketch an idea, write some words, make a list, etc. It’s free flowing, which works for me.
7. Plan people time.
Every job requires face time with colleagues and vendors. Whether it’s checking on employees you supervise, answering customer emails or listening to calls about your product, people take time. I used to overlook this, back when I scheduled tasks to fill every minute of my workday.
Now, I try to save roughly 30 percent of my time at the office for people-related tasks. Knowing that I have that time set aside allows me to be present with them. I’m not supposed to be doing anything else with those minutes—and knowing that makes a huge difference.
In school, it was taught as MBWA: management by walking around. As a kid working in my mom’s hair salon, it was watching her take care of her personal clients, but also watching her mentor fellow cosmetologists and talk with their clients. As a waiter in college, it was observing all the moving parts. Here at VARIDESK, it allows me to fly at 30,000 feet while also experiencing what’s going on with my team on the battlefield of business.
Transforming into the person you want to be in 2019 is not difficult so long as you have the dedication, focus and correct tools at your disposal, Robbins says. But you should always remember to set your sights on something within reason.
“Most people overestimate what they’re going to do in a year, and they underestimate what they can do in a decade, or two or three or four,” he says.
Follow this roadmap to begin crafting the best year of your life.
1. Feed your mind
Born in North Hollywood, California, Robbins had a tumultuous, abusive childhood. On Christmas during his senior year of high school, his substance-dependent mother kicked his latest father out, and then chased the young Robbins out of the house with a carving knife.
Robbins got a job as a janitor and stayed in the laundry room for a couple of weeks until he could get his own place. “What changed me was that I realized I was so depressed,” he says. “I was so sad, and I was so uncertain—so fearful. And nothing was working. That’s when I realized I had to feed my mind.”
Feeding your mind, Robbins says, is all about perspective. “You’ve got to bring something new to it,” he says. “Otherwise, you’re going to keep operating off the same old beliefs, the same old thoughts, the same old emotions that have not gotten you to the level you want.”
Step 1? Don’t just hope things will go the way you want. Condition yourself to believe that they will. Robbins read The Magic of Believing by Claude Bristol when he first left the house, and from there, he strengthened his mind by doing incantations while running, writing positive messages on the mirror, reading autobiographies of people he admired and selectively choosing what information and news permeated his world.
“Every day, you’ve gotta guard your mind,” he says.
Feeding your mind is all about perspective. “You’ve got to bring something new to it.”
2. Strengthen your body.
Strengthening one’s mind is crucial. But equally important is strengthening one’s body.
“Go on a sprint,” Robbins says. “Go lift some really heavy weights. Go on a really long walk.” Every single day, for example, Robbins begins his morning by plunging into a pool of 56-degree water. And if he’s not home, he’ll jump into a nearby river or walk through snow.
“I don’t do that because it’s fun,” he says, laughing. “I don’t do that because I want to do it. I do it because I’m training my body that when I say go, we go.”
Priming your physical self can set the stage for the change you want to see mentally or emotionally.
“You’re going to get depressed if you drop your shoulders, drop your head, speak slowly and think about what you’re afraid of,” he says. But if you go for a really intense run, music blaring and heart pumping, your body and mind will both be energized and clear, and you’ll be able to better focus on what you want.
3. Find a great role model.
“If you want the best year of your life, you need to decide to find a great role model,” Robbins says. “Who is already getting the results you want?”
Robbins recalls seeing his parents fight one Thanksgiving about not having enough money for food. He thought to himself that he never wanted to have that stress as an adult, and he vowed to find a role model to learn from as he pursued a different path.
“You don’t want to just try to do it yourself,” Robbins says. “You want to model someone who’s already getting results.”
Related: Who Inspires Tony Robbins?
Robbins selected the late Sir John Templeton—once called arguably the greatest stock picker of the 20th century by Money magazine—as his role model. “I said, ‘Here’s a man who started with nothing just like me. Now, he’s the first billionaire investor.’ ”
4. Take massive action.
This step is simple: Make a huge step forward. Build your company’s website. Reach out to a prospective investor. Talk with your spouse about couples counseling. Plan that grand vacation for your family you think will bring everyone together.
But, Robbins says, you must remember to be flexible and alter your course if necessary. To really demonstrate the importance of this point, Robbins often shares the same metaphor. Let’s say your goal was to see a sunset, and you began by running east.
“I don’t care how positive you are, I don’t care how enthusiastic you are, it’s not gonna happen—you have the wrong strategy,” he says.
5. Get outside of yourself.
Instead of focusing 100 percent on your goals and what you want to achieve, you must also find a way to add value to others.
“As corny as it sounds, the spirit of living is giving, and it’s what makes us alive,” Robbins says.
As a 21-year-old, Robbins volunteered at prisons in California. At one point he was matched with a man around his age who had been convicted of murder. Robbins was trying to help the man cope emotionally. Robbins says that helping others figure out their problems, as he did with this inmate, will have two primary impacts:
No. 1, your problems will lessen in intensity.
No. 2, your life will have more meaning.
“Life is not about me; life’s about we,” Robbins says. “So it’s not just growing, it’s growing and contributing beyond yourself that makes your life meaningful.”
One of the most important things you can do to make 2019 your best year yet is become comfortable with uncertainty. Robbins says it’s that simple.
“I tell people, ‘The quality of your life is in direct proportion to the amount of uncertainty you can comfortably live with,’ ” he explains. “Because if you want to be certain about everything every moment, then you can’t do something new, you can’t grow.”
“Have you ever been skiing?” Robbins asks me.
“Just once,” I reply, wondering how this topic relates to uncertainty.
Robbins says most people who have learned to ski or snowboard are always locked into a basic skill level. “They’re eternally intermediate,” he says. “And the reason is because they do what they’re comfortable with.”
But if they’re on the slope and suddenly see a sharp turn or steep decline, what happens? In many cases, they commit to quickly learning how to carve and not fall flat on their faces. They learn that they’re actually able to conquer what they were so afraid of.
Robbins says most people give up when faced with uncertainty. But if you can force yourself to take action in the midst of it, you will become better and better at coping with not knowing what will happen.
I ask why humans are so bad at dealing with uncertainty. “Because of the nature of the mind,” he says. Our brains were designed to assess and combat risk, and fight or flight when necessary. “But we are more than our minds. We’re our heart, we’re our soul, we’re our spirit.”
And if everything in life were certain, life wouldn’t be worth living.
“We all want certainty so bad,” he says. “But if you’re totally certain every moment, what’s going to happen? You’d be bored. So we need uncertainty. We need a lot of it.”
Six Questions to Reinvention
As Robbins watched the financial crisis begin to play out in 2007 and 2008, he knew he wanted to get involved. But finance wasn’t his area of expertise. He decided to pivot, focusing his energy on this new realm he wanted to tap into.
“I didn’t so much reinvent myself by changing myself, [but rather] I connected to my deeper passions,” Robbins says. “I figured out what resources to get. I figured out why I’m doing this. I figured out what would be available, what skills I needed. And I went and got them.”
The word reinvention is tossed around a lot in society. A mother might want to reinvent herself to have a renewed emphasis on her career, an accountant might want to reinvent himself to have more vitality and passion in his life, a painter might want to reinvent herself to have a new vision. But reinvention isn’t about making a small tweak here or there.
“I think reinvention is not so much about changing the appearance of things,” Robbins says. “It’s about connecting with a deeper part of yourself. Who are you really? What are you made for? What are you here for?”
Robbins says to ask these six questions to successfully reinvent yourself in 2019.
1. What am I here to serve?
This question is not easy. But it’s crucial. Instead of thinking, I want to be richer, smarter or more successful, try to tap into your true internal drive.
2. What is my core passion?
Once you’ve identified what you’re here to serve, connect to your core passion. Ask yourself why you want to pursue it.
“The most successful people on earth know what they’re here to deliver and they know why,” Robbins says. “And then you figure out the how.”
3. What resources are available to me?
Before taking action, figure out what assets are at your disposal. What brilliant minds do you have access to? Who can you consult for advice? What can you read, absorb and take in that will help you on your path?
4. What do I need to change in myself?
Figure out what you need to do differently to achieve a renewed sense of self. What skills do you need to acquire? What do you need to retool in yourself? Is there anything you need to condition your mind to do?
Regardless of what you’re changing in your life, make sure it’s something truly meaningful to you, not just a quick fix or a Band-Aid on a deeper problem.
5. What is my how?
Remember: This step should not come before you’ve identified your why.
“Come up with a vision of something that you’re driven by, and then come up with strong enough reasons to figure out the how,” Robbins says. “But if you start with the how, it’ll be overwhelming.”
Only once you’ve truly identified your why—your core passion—can you begin to think about the how. How are you going to execute? How can you leverage your resources, passion and skills to make this happen?
6. How can I implement this?
It’s time to take action. And remember that it’s OK to change course if things aren’t working.
“As you’re implementing, you have to stay awake to what’s working and what’s not, and change your approach,” he says.
Regardless of what you’re changing in your life, make sure it’s something truly meaningful to you, not just a quick fix or a Band-Aid on a deeper problem.
“When you reinvent yourself, you’re going through a process of how do I become more so I can give more?” Robbins says. “If that’s your mindset, you’re probably going to prosper. If you’re saying, ‘I want to reinvent myself so I just feel a little better,’ you’re probably not going to pull it off.”
“Have you ever shot a gun?” Robbins asks me.
“Uh, no I haven’t,” I reply, caught off guard.
Early in his career, Robbins tells me, he worked in Neuro-Linguistic Programming (NLP), a psychological approach to increasing one’s performance. Robbins quickly rose in the ranks as a trainer, but people were skeptical that a 22-year-old was becoming so successful despite having only worked in the field for a few months.
NLP founder John Grinder said that in order to prove to people that Robbins was the real deal, he would put him in situations he wasn’t prepared for and show that he could pull anything off. He connected Robbins with an Army general, and Robbins told him he believed he could compress the training time of anything they did in half.
The general tasked Robbins with teaching enlisted men how to effectively shoot a .45-caliber pistol.
Robbins’ partner on the project, who had experience shooting guns, had to cancel at the last minute. His stomach turned. So what did he do? He asked the general for his best shooters so he could study them and figure out what they were doing right.
“Because I had nowhere else to go—I had no net—I became resilient. Because I had to,” Robbins says. “I was like, OK. Some part of me knows the answers.”
Don’t Let This One Thing Get in Your Way
Walking between two buildings suspended only by a tightrope, Nik Wallenda might appear fearless. Jim Gaffigan, who cracks jokes on stage in front of thousands of people, or Jennifer Hudson, who belts her songs in front of millions, might also appear to have ice in their veins.
But in reality, no one lives without fear. It’s engrained into us as human beings.
“I don’t care who you are—I don’t care how smart you are, I don’t care how educated you are or how much passion you have,” Robbins says. “We all have a 200,000-year-old brain. And that brain is not designed to make you happy. It’s designed to make you survive. And that mind is always looking to try to protect you from some form of danger.”
The No. 1 thing that stops people from having the quality of life they want and deserve, Robbins says, is fear. But it has a simple solution.
“Courage,” he says. “It means you’re scared, but you train yourself to do it anyway. You push yourself.”
It’s Not All About Achievement
There are two primary skills people need to master to have an extraordinary life, Robbins says. The first, mastering the science of achievement, is pretty straightforward: Focus on what you want, not what you don’t want.
The second skill, Robbins says, is where people struggle: mastering the science of fulfillment.
“If you go out and have this massive success but you’re not happy and you’re not fulfilled, you’re gonna be empty inside,” he says.
Instead of changing things in your outside world, you must focus on what makes you feel good inside—what makes you feel truly alive and what makes you feel like you’re growing and becoming the best version of yourself.
“When people ask me, ‘What does it take to be happy?’ I always say to them, ‘It’s simple. One word: progress. Progress equals happiness,’ ” Robbins says.
Watch Your Coffee When Robbins was a young man, his mentor, Jim Rohn, instilled in him a lesson that has persisted for decades.
“Do you realize how powerful your mind is?” Rohn asked Robbins.
“I think so,” he said, hesitating.
“Well, tell me something,” Rohn said. “What if you let anybody put anything you want in your coffee? What if your worst enemy put sugar in your coffee? What’s going to happen?”
“I’ll have sweet coffee,” Robbins replied.
“What if a family member, a friend or somebody by accident dropped strychnine in your coffee?” Rohn then asked.
“I’m dead,” Robbins said.
“Well, guess what? Life is both sugar and strychnine. You better watch your coffee,” Rohn said.
Much like we must guard our metaphorical coffees, Robbins says, we must guard our minds. We must selectively choose what news and information we want to absorb, and filter out the noise.
“We’re drowning in information,” Robbins says.
“And we’re starving for wisdom.”
Life Is Growth
“When people come to me or come to your magazine, what do they want? I want more money. I want to be happy. I want to get more physically fit. I want a better relationship. I want love in my life. I want to grow my business. I want to make ‘x’ amount of money. What they’re really after is a greater quality of life. And if you really think about it, we all want that.
“Even if life is great, we usually want more. And that’s a healthy mindset, because life is growth.”
The word “office” may conjure images of dreary cubicles and fluorescent lighting, or, if you’re lucky, a very funny TV show starring Steve Carell. But these days, an “office” usually means any environment to which people dedicate most of their business hours. Of course, there’s been a surge in the debate recently over whether or not startups need office space at all — thanks to free wifi in most cafes, an uptick in remote work arrangements and the increase in other alternatives to working at a desk 9-to-5. And, naturally, the arrangement that works best for your business depends on a number of variables deserving careful consideration.
But for entrepreneurs fortunate enough to run a business that is growing and adding individuals to its team, the idea of an organized work space with dependable infrastructure and room to fit a budding workforce shouldn’t be so easily dismissed. Here are nine reasons entrepreneurs should think carefully about providing an environment where their team — and their business — can thrive.
1. Attracting talent
A company’s office space can be a clue to its stature; everything from its financial health to its work philosophy can find expression in the walls of its physical space. There’s a reason the most celebrated companies in the world are recognized for living in celebrated homes, too: Office space is one of the endemic ways a brand communicates its essence. Among the audiences for that communication, perhaps the most important is the top talent these brands — especially those of growing startups — are trying to attract. The best and brightest want to know they’ll be working for a company that’s going to be around for a while. They want to know that the physical space they’ll be working in is appealing and comfortable. After all, they’ll be spending a majority of their time there. And, clearly, they won’t get that impression if your company is one without any space at all.
Team-building is more than a lofty exercise; it can result in a supportive work environment, which is crucial to your team’s success. If you’re trying to build a top-notch sales organization or make sure your product and marketing are better integrated, what better way to foster that dynamic than with an environment where employees can socialize and support one other?
3. Social life
Socializing segues naturally from team-building. For some people, co-workers end up being close friends, even outside of the office. Any time you can help employees improve their social lives, you’re providing a holistic benefit that makes them happier — and by extension more productive — at work.
If you’re fond of meetings that start on time and run smoothly, you should seriously consider an organized work space for your startup. One of the biggest myths about startups and office space is that, thanks to video-conferencing tools like Skype, Google Hangout and Vidyo, you don’t really need to meet in person at all. But varying degrees of network connectivity and the resulting latency issues, among other technical problems that can arise, often mean that 10 to 15 minutes elapses before everyone can simply hear and see each other. That won’t be a problem if everyone is in the same space.
Accountability issues happen all the time. Think about the yellow-orange “idle” or red “busy” icon next to a employee’s name on Google Chat. You open a chat with him or her anyway. No reply. Is that person even there? Or sunbathing in the park? If everyone is at the office, the no-show problem lessens (somewhat). At the end of the day, though, your company is facing productivity and accountability issues. Your team is made up of people who have diverse interests and hobbies, and their ability to pursue them is a big part of what keeps them happy and productive
You just want to make sure they pursue them on their time, not yours. And, an office helps.
Another great reason to consider office space is if your investors advise you to. More comments from hands-on investors will help you account for all the factors you need to consider before deciding whether or not to move operations to an office.
7. Professional development
Whether it’s for hosting a guest speaker series, running workshops or starting a mentorship program, a space you can call home allows you to facilitate and effectively market more professional-development opportunities. When you show employees you’re willing to invest in their growth as people and professionals, that gesture goes a long way in keeping those employees satisfied and motivated to build their careers with you.
Research shows that a healthy team makes a productive team. As an employer, with an office, you can play a significant role in your team’s performance by making sure the pantry is stocked with healthy foods throughout the day. In many cases, the food you provide employees may be healthier than what they stock at home. And, commuting to an office usually involves more physical exercise than pulling on a pair of sweatpants in the morning to work from home. Whether it’s climbing the stairs out of the train station, walking to and from the office or taking frequent breaks to re-up on water and walk around the work space, office life isn’t without its health benefits.
9.Exposure to diversity
In every industry, exposure to different viewpoints, skill sets, levels of experience and personal histories (including race and gender) in the course of business is healthy. An office ensures that your team members are getting this exposure (assuming, of course, that you’re building a diverse team) in a collegial atmosphere. Securing office space for your startup is by no means a light decision. It will represent one of your most significant expenses, and it typically requires a 3-to-5 year commitment. That can be a scary thought when you’re not entirely sure where your business is going to be in five years. But you can always consult resources to help you determine your readiness for office space and determine what you need to know, to start looking. What’s more, finding a home for your business can be a tremendous launching pad for your next phase of growth. Is it the right choice for you? Schedule a tour
It’s time for another meeting with your staff, and you want to be sure that you’re choosing the most effective space possible. Whether you’re a large business or a small one, sometimes that means taking your meetings offsite in order to increase their effectiveness. If you’ve been wondering about the benefits of offsite meetings, we here at WorkSocial can guarantee you’ll see their positives immediately.
How WorkSocial and Offsite Meetings Can Benefit Your Business:
Reason #1: Offsite Meetings Create Variety
Chances are, your employees start groaning the moment they walk into your conference room. Not only that, but in many cases, their brains may immediately turn off, leaving them disinterested in whatever else is going on in the room. They may retain little of what goes on in the meeting–and they certainly won’t be in the right mindset to give it their personal best! The variety of remote office spaces from WorkSocial, on the other hand, can spice things up and lead to more productive employees who are better able to focus on the issue at hand. You’ll also find that hosting offsite meetings frees you up to expand your creative efforts so that you’re able to do things differently during the meeting and increase your employees’ response.
Reason #2: Offsite Meetings Have More Significance
When you have your meeting in the same place every time, every meeting takes on the same level of significance. Employees may not even know whether or not they genuinely need to attend a meeting, much less whether or not the content is going to be important! By moving the meeting offsite to one of WorkSocial’s remote office spaces, you show your employees that this one matters. They’re able to see that you have invested time and effort in the content of the meeting–and that means that they need to be ready to show up, get involved, and participate in the meeting.
Reason #3: Remote Office Spaces Allow For Better Connection
Your employees do a great job of connecting with one another within the confines of your office–or do they? Effective teams feel a connection to one another that goes beyond the four walls of your office. Simple staff field trips can go a long way toward increasing the connection the members of your staff feel toward one another. Taking your trip the extra mile and holding your meetings offsite can increase that sense of connection. When you have specific members of your company coming to remote office spaces for an offsite meeting, it increases their bond with one another and increases their ability to interact when they return to the office setting. this, in turn, boosts both morale and productivity. As an added bonus, offsite meetings decrease the potential for interruptions from individuals who aren’t involved in the meeting, which means that you’ll be able to connect with the issue at hand and focus more effectively.
Reason #4: Growth Occurs at Offsite Meetings
Has your company expanded faster than your conference room can keep up? Chances are, there will be a point in your company’s growth cycle when you need to bring more people together than you’re able to easily put into a single meeting room. Instead of getting stuck cramming people into your room or holding more than on meeting to convey the same information, bring your entire team together in a remote office space from WorkSocial. Not only is it easier to maneuver when you have extra space, you’ll find that you’re better able to schedule meetings when you’re dealing with an off-site venue.
At WorkSocial, we provide remote office spaces that can include anywhere from 4-40 individuals, giving you plenty of freedom to hold the meetings you need in a space that will work more effectively for your company. If you’re ready to schedule your next offsite meetings at one of our locations, contact us today.
Entrepreneurship is an exciting journey to embark on that will lead to an autonomous lifestyle and unimaginable success. However, while entrepreneurship is one of the most desirable paths, there are certain aspects of entrepreneurship that are necessary in order to truly be successful at it. For this reason, we’re going to provide you with 6 human needs every entrepreneur must know.
6 Human Needs Every Entrepreneur Must Know:
As an entrepreneur, you are a leader, and a leader must know their vision and be ready to act accordingly. It is important to be certain about the path you are taking because you set the tone for your business. Your team will follow suit if they know that you believe in your vision wholeheartedly. Ultimately, nothing shows this best than have a productive workspace for you and your team. These are important decisions that an entrepreneur must continue to make for their business. For instance, if you notice that there is a knowledge gap among some of your employees, then providing training at a training venue for those individuals will not only help them do their job more efficiently, but help your business.
Just like certainty, entrepreneurs need to clear up uncertain about things pertaining to your business because everything will not always align with your vision. You have to clearly understand your vision and know what it takes to see that vision through. For instance, some companies do not require their employees to come to work every day. Instead, they can work more efficiently by conducting their work at home and checking in for scheduled meetings. As an entrepreneur, you may decide that your team works best utilizing a virtual office rather than coming in. Essentially, entrepreneurs must be strategic and think twice about the decisions they are making to ensure they are always benefiting their business.
Entrepreneurship is all about significance. Significant entrepreneurs attract the right audience and can command a room. Essentially, what makes an entrepreneur significant is how they perceive themselves. This directly translates to what they choose to invest in. If you don’t invest much into your business, then you can’t expect people to invest either. On the other hand, making investments in your business leads to optimum results. For example, having a dedicated working space communicates to your employees that your business is important. Ultimately, it sets the standard and gives your organization significance as a whole. Your team will be more willing to invest their time as a result.
It is important for entrepreneurs to be able to not only connect with their customers, but their team as well. After all, they are the individuals that are going to support you in taking your business to the next level. This is why office spaces are important. You need an area where you can meet and collaborate with your team to show that they are included in the decision making process.
Entrepreneurship requires growth. This is the only way to learn, improve, and take your business to the next level. As your business grows, you will find that you, along with your employees, will need to learn new things whether it be new technology or business processes. For this reason, training venues will be an integral part in ensuring you and your team can continue to keep up with the demands of the business.
No entrepreneur has become successful alone. However, they have received valued support to help make their business better. Contributions from others will help you get a different perspective on your business and will help bring fresh ideas that can improve your business drastically. Having a dedicated office space will allow you to collaborate with your team on the regular so that you can co-work and get the most out of the workday.
WorkSocial is Here to Help Entrepreneurs Thrive
Worksocial is a company that is helping individuals connect, create, and grow. We help make it possible for entrepreneurs to excel and take their business to the next level. Ultimately, we have dedicated office spaces fit for any business. Whether you are looking to conduct meetings, train staff, or work on important projects, we have a space for you. Our goal is to help entrepreneurs be professional, work more efficiently, and be successful. If you have any additional questions on the services we provide, contact us and we’ll be happy to help.
The evidence is clear: nothing kills a meeting quite like monotony.According to Business News Daily,the number one offender is repetition, a special brand of monotony in which the person who has the floor gets lost in his or her own thoughts, repeating and rambling unchecked. Repetitious, unprepared speakers are not the only aspects that contribute to a monotonous meeting, of course. Sometimes location plays a part. Without a change of venue, the mind can easily fall into unbreakable patterns that can severely cripple creativity. That’s why nearly two-thirds of meeting planners say that meetings held outside the office are more productive! Let’s explore why.
Four Reasons to Hold Your Meetings Offsite
Offsite Meetings Create Variety
While holding meetings back at the office is always an option, there are three good reasons to consider a change of pace for your next training program or team-building event. First, there’s ample evidence that occasionally changing work-spaces can boost creative thinking. We see this concept play out especially well for freelancers and other professionals whose ability to complete their work is not tied to a particular location. Writers, software designers, musicians, and others will work from a remote location – a coffee shop one day, a sidewalk cafe the next, etc. They find that switching up locations often helps them achieve more. Since people respond differently to different environments, the freedom to move around helps them find their creative sweet spot.
“The freedom to explore multiple offices can also afford workers the opportunity to discover which environment they feel most at home in–whether that be a fancy, bustling space near Times Square or a shabby-chic office in Brooklyn” (Quartz).
Shuttling your entire staff around on a daily or weekly basis is not feasible; however, occasionally hosting offsite meetings in a new space can prove beneficial. Members of your team may respond to new environments in creative and surprising ways. The best way to test this hypothesis is to get your team out of its rut and hold your next meeting at a remote location.
Help Employees Understand the Meeting’s Significance
Another reason to consider hosting your meeting offsite is to cut down on possible distractions and to help your team understand the significance of the matter at hand. When you are back in your daily work environment, your mind naturally turns to pressing tasks and daily operations. It’s easy to consider slipping out of the meeting to check something back at your desk or to send a quick e-mail. Though seemingly small distractions, these little tasks are of special concern if your meeting focuses on forward-looking goals and long-range planning because your day-to-day environment can be difficult to set aside in order to focus on tomorrow’s opportunities. In a remote location, however, the mind can detach from daily cares and look toward the future.
A Remote Location for Meetings Allows for Deeper Connections
The third reason to consider hosting meetings offsite is that doing so will fully free you to run your meeting and make deeper connections – both with your team and with the ideas you’re hoping to engage. After all, if you host your meeting or conference yourself, you must attend to practical details, such as set-up, clean-up, and catering. You will need to arrive early and stay late. These tasks, while not arduous, will nevertheless split your focus. When you host offsite meetings, however, all you need to focus on is your team and its goals. That means all you have to do is show up and crush it. Everything else is taken care of for you.
Offsite Meetings Are Perfect for Growing Companies
Perhaps you’ve already outgrown your current meeting space. Perhaps you’re looking to do so in the near future. Either way, we can help. We’re here to provide both for those who have already outgrown their current situations and for those who wish to foster such growth. Either way, we’re here for you.
WorkSocial Can Help!
As hosts of the largest conference space in Jersey City, New Jersey, we are proud to support your business or industry with our premium training facilities. Capable of hosting groups anywhere from four people to forty, we are more than ready to host your next event. Our rooms are wired for advanced technologies, and we have catering options available as well. All you have to do is show up. If you have questions about our services, or if you would like to chat with us about partnering for your next offsite training program at a remote location, please feel free to contact us at any time. We look forward to serving you.
Imagine how happy you could be if you were in control of your own life. What if you decided how productive you were, what time you went to work, and how much money you made? The truth is that you can. Many people have followed a life of entrepreneurship by leaving their normal 9-5 work lives to launch out on their own! But what about the downside? What about all those businesses that fail? Don’t entrepreneurs struggle? Of course, we do! But, honestly, it’s all about perspective. What some entrepreneurs call failure, others call learning. What some call struggle, others call growth. It all depends on how each person looks at it. The problem here is how we choose to consider the situation. Will we view things as obstacles or as opportunities? Because truthfully, many of the negatives about entrepreneurship can actually be positives with the right frame of mind. Let’s explore the 3 most positive mind frames that lead new business starters into the true joys of entrepreneurship.
The Hidden Joys of Entrepreneurship:
1. Not Enough Money (Or… The Joy of Resourcefulness)
One of the most common issues entrepreneurs face is capital, especially startup capital. This frustrates some to the point of freezing them still. They feel they don’t have enough, so they either don’t start at all or start but then stop too soon. Other entrepreneurs, however, view this differently. They see this as an opportunity. The solution is to become resourceful; these entrepreneurs come up with new ideas to raise funds, to get out and open doors in what appear to be closed hallways. They sell things, learn to invest, rent out a room, something, anything. This hidden joy of entrepreneurship is that they become stronger people. Added to their already developed set of skills is the newfound resourcefulness they’ve acquired along the way.
2. Too Much Competition (Or… The Joy of Innovation)
Another issue many entrepreneurs deal with is competition. As soon as they’ve developed their idea, the company across the street has done the same. It’s almost like when you buy a new car. Before you had the black Toyota Avalon, nobody had one. Now that you’ve got yours, you see black Toyota Avalons everywhere! Unfortunately, many entrepreneurs give up in this situation. They feel as though someone else beat them to the punch, so they back away. But not all of them. Some entrepreneurs recognize this as an opportunity – the chance for innovation. Backing away from your idea when competitors mimic it is not the only option. Innovating the idea to become better than what you originally made it and what the competitor made it is also possible. That’s when the joy of innovation comes in. The entrepreneurs who figure out how to make their idea better grow both themselves and their business. And this results in massive satisfaction.
3. Too Much Responsibility (Or… The Joy of Delegation)
In addition to the first two opportunities, entrepreneurship often comes with a third challenge – having to do too much. Especially in the beginning, entrepreneurs feel as though they are doing too many things to scale the business. It’s different than feeling overworked and under appreciated as is typical for an employee. The entrepreneur is generally happy to work long hours. The adrenaline and excitement that accompany a startup are usually enough to keep the person going. The challenge arises when the entrepreneur knows the company needs to expand, but they can’t scale it because they handle too many of the responsibilities alone. They may be the company manager, accountant, human resource department, and customer service specialist – all at the same time. Some entrepreneurs flatline at this point. They typically don’t quit if they’ve made it this far, but they generally stop growing as well. Then, the adrenaline fades from the initial startup and burnout begins. Other entrepreneurs see this differently, however. They’ve heard about delegation. Many of them want to do it. The problem is that delegation is a skill., not a natural talent. And it isn’t exactly easy to learn. But instead of freezing, some entrepreneurs view this as a chance to learn the joy of delegation. They begin to practice the skill. It’s hard at first. But they don’t give up. Then, they do it again. And again. Eventually, they get a good handle on it. Now, they aren’t wearing 7 different hats. They’re only wearing the one they’re supposed to wear – the delegator’s hat. And that’s when the entrepreneur begins to truly experience the joy and satisfaction of a fully scaled company as the results of having learned the skill of delegation.
Thrive by Finding the Hidden Joys of Entrepreneurship
All in all, entrepreneurship is a rewarding experience. And yes, it has its difficulties. But the solution is to view those difficulties not as setbacks, but as setups – setups for growth and the joys that follow as a result. And what separates the winners from the losers is the decision to enact this solution – to perceive the obstacles as actual opportunities instead. Where some see a lack of resources, others see the chance to become resourceful. Where some see difficult competitors, others see room for innovation. And where some see too many hats to wear, others see the prospect of delegation. It’s all a matter of mindset. And that is what makes the difference. We invite you to contact us about how we can help you on your journey.
Did you know that 9 out of every 10 businesses that start fail within the first year? That is a staggering statistic that indicates the odds are against every entrepreneur. We don’t read about that much on the internet. When’s the last time you opened a blog that said: “guess what, if you’re an entrepreneur, the chances are that you will not succeed”? We don’t like to hear about that. Instead, we want to hear about the 1 in 10 that make it. We like to listen to podcasts about Mark Zuckerberg and Jeff Bezos. But denying reality doesn’t exempt us from it. The key is not to hide and pretend that the odds are against us. The key is to find out what makes some entrepreneurs succeed while the majority of all the others fail. Finding that formula will help to put us in the 10% success rate.
Finding the Formula for Why Some Entrepreneurs Succeed
So what’s the secret? How do some entrepreneurs succeed against the odds? There are in fact 2 key ingredients that determine why some entrepreneurs succeed. Without these 2 factors, one can easily fall into the 90% statistic of unsuccessful startups. So what are the 2 things successful entrepreneurs have that the unsuccessful ones do not? Let’s take a close look at each one together.
1. They’ve Burned the Bridges
Conventional wisdom says to always have a plan B. And for successfully established companies, that is good, sound advice. But plan B is risk management. And risk management is counterintuitive to the entire entrepreneurial process. We aren’t advocating to throw common sense to the wind, but the fact is that if plan B is an option, then plan A does not have to work. For example, the employee who quits and says, “If it doesn’t work I’d like to come back,” and then goes on to start his own business has done two things. The first is that he has made a wise choice in minimizing his risk of the entrepreneurial endeavor not succeeding. The second thing he has done is minimized the chances of the entrepreneurial endeavor succeeding at all. The reason is that psychologically he knows it does not have to work. If it doesn’t, he can always go back to his former job. Again, that is wise risk management, but it is bad entrepreneurial launching. As is the case in every financial endeavor, risk and reward have a direct relationship. Diversity in an ETF with stocks and bonds and you will get more consistent, lower returns. Drop all your money into a promising stock and get really rich or lose it all. The same is true for successful entrepreneurs. If you have a bridge to cross in the event the business tanks, you will not have to succeed. If you burn the bridge, however, your business has to work. And that makes all the difference. We’re not saying you need to quit your job in an unprofessional manner. But we are saying that you’ve got to burn the fields behind you and not look back. In 1519, Hernan Cortes landed in Veracruz Mexico and conquered the land. Do you know how he did it? When he landed, he burned the ships that sailed him and his crew to Mexico. At that point, he had to conquer it. There was no other choice. The same is true for all successful entrepreneurs. If your business has to work, then the chances of it working greatly increase. If you have fall-back options, then you just might fall back.
2. They Have Decided to Win
“Let’s see if this will work,” is a terrible strategy. It is too flimsy. Successful entrepreneurs don’t say “if” – we make sure. A lot of this is mindset. The hard part is maintaining the decision to win when the evidence says you will lose. When you launch your idea, you do so with a desire to win – to be successful. But what happens when venture capital investors decline your invitation to invest? What about when traffic doesn’t flock to your blog? How do you handle negative reviews and customer critiques? What happens to many entrepreneurs is that their mindset (and thus, their game plan) shifts with the facts. When they started, they desired to win, but when the evidence started saying they were going to lose, they believed the facts. At that point, their desire to win became a decision to lose. And from that point on, the rest is usually history (in a bad way). What successful entrepreneurs do is launch with a desire to win. Then, when facts to the contrary start rolling in, we decide to win. We make the decision that we are going to win regardless of what the numbers are saying at the moment.
We will get our traffic up even when nobody initially notices our blog.
We will get great product reviews even though the first customers had complaints.
We will get the capital we need even when the first bank we speak with turns us down.
We will win. Period. This is a decision based on a mental state, not on the facts. And it is this mental state that carries us over the hurdles, around the mountains, and through the tunnels. We simply decide to win and refuse to accept any other possibility.
You Know Why Some Entrepreneurs Succeed – Now Become One of The Successful Entrepreneurs!
All in all, successful entrepreneurs don’t have it easy. It requires risks and a willingness to (not deny but to) overcome the facts. We burn the bridges behind us and abandon any plan B, other options, or alternative routes. Our idea has to work. And once we start making it work, we refuse to believe the overwhelming evidence that stacks against us. We decide that we will win no matter what. And when launch with these two secrets in place, we end up in the category of the 10% of successful entrepreneurs who make their dreams come true. We invite you to contact us about how we can be a part of your journey as a successful entrepreneur.