The Art of Simplicity in Business: Why Less Leads to More

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In a world obsessed with innovation and expansion, simplicity often gets overlooked. Yet, simplicity is one of the most powerful drivers of profitable growth. When businesses complicate their operations, product lines, or customer experiences, they don’t just confuse their teams; they confuse their customers, slow down decision-making, and bleed money.

Complexity Kills Clarity

Many businesses fall into the trap of thinking more options equal more value. But offering too many choices can backfire. Research in behavioral economics shows that too many options can lead to decision fatigue and buyer paralysis. Customers who feel overwhelmed don’t choose; instead, they walk away.

Take the example of a tech company offering dozens of variations of the same product with slight differences in features or pricing. Instead of empowering the buyer, this complexity forces them to over-analyze and second-guess. Meanwhile, a competitor with a streamlined, easy-to-understand product suite often wins the sale.

The same goes for internal operations. When a company’s systems are bloated—layered with too many processes, tools, or departments—it becomes harder to adapt, harder to scale, and harder to focus on what matters: delivering value to the customer.

Simplicity Is Not Laziness—It’s Discipline

Simplicity requires ruthless prioritization. It means stripping away the nonessential and zeroing in on what works. Steve Jobs understood this when he cut Apple’s product line from dozens of models to just four when he returned as CEO in the late 1990s. That move helped save Apple from the brink of collapse and paved the way for one of the most profitable decades in its business history.

This isn’t about doing less for the sake of it—it’s about focusing effort where it counts. A simpler product line is easier to market, easier to sell, easier to support, and often more profitable. A leaner business operation responds faster to change, aligns better across teams, and burns less cash.

Simplicity Strengthens Execution

Complexity slows teams down. Decision-making becomes bogged down by approval chains, duplicated efforts, and unclear ownership. In contrast, a simple organization structure clarifies roles, speeds up execution, and improves accountability. That’s why some of the most efficient companies adopt clear frameworks and keep their operations tight, even as they grow.

Southwest Airlines is a classic example. While other airlines complicated their offerings with multiple aircraft types, seating classes, and ticket options, Southwest kept it simple: one type of plane, no frills, one fare structure. That simplicity allowed them to minimize training costs, streamline maintenance, and consistently turn profits in a volatile industry.

Customer Experience Demands Simplicity

Customers crave convenience. If your website takes too many steps to complete a purchase, if your pricing page reads like a tax form, or if your service menu is a maze, they’ll leave. Every extra step is a reason to drop off.

Companies like Amazon and Uber succeeded not because they invented something new, but because they made something old ridiculously easy. Amazon’s one-click checkout is simplicity in action. Uber took the friction out of calling a cab. The innovation wasn’t in the service, it was in removing the pain points.

Simplify to Scale

The true test of a business is not whether it can grow, but whether it can scale. Scale requires repeatable systems, clear offerings, and consistent delivery. Complexity chokes scale. It creates inconsistencies, bloated costs, and barriers to entry for new hires, partners, and even customers.

Simplicity is not the absence of detail; it’s the removal of waste. It’s focusing every ounce of energy on what drives results. That’s not just smart. It’s essential.

In Summary

The art of simplicity in business is not just a nice-to-have; these days it’s a competitive edge. Complexity wastes time, drains money, and stalls growth. Simplicity sharpens focus, accelerates execution, and boosts profitability. Businesses that master simplicity will scale, thrive, and dominate.

As Leonardo da Vinci said, “Simplicity is the ultimate sophistication.”

Let us know how we can help you simplify the numbers that drive your business growth.

Why Bother with a Financial Plan?

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by Mike Iverson, Numbers Coach

Any competent financial executive will say “a business needs a sound financial plan” to tie the numbers to a business owner’s strategy. But what does that really mean?

Yes, you need a plan. But how you develop the plan will depend on your business objectives. Question #1 should be “Why are you in business?” Your answer may be:

  • “I want a good, stable lifestyle-maintaining business.”
  • “I want to increase my net worth so I can retire early and enjoy the good life.”
  • “I’ll start a ground-breaking business, grow it quickly and sell it so I can move on to the next adventure. I don’t want to get bored!”
  • “I want to create a legacy for my family.”

You might hear yourself in one of the answers above, or maybe you have a unique reason for starting a business. No matter – there are common elements to be explored as you develop your plan, such as sales, marketing, operations, finance, competitors, which products and services to offer, etc.

Create a Plan

I know it sounds like a lot of work. But keep in mind: if you are in business to create a nice income/lifestyle with moderate growth, then you may choose to keep it simple and short. Your financial plan may be just the number of hours at a specified hourly rate that you need to work in order to achieve your goal. Why spend hours on a 40-page plan when two to three pages is enough?

On the other hand, if you plan to grow your business beyond a few people in order to create a net worth exit opportunity or a significant enough business to leave as a legacy to your children, then a more detailed comprehensive plan will be needed. This means the plan should include all of the elements noted above, with enough market data to support your business premise. You’ll need details to specify what exactly it will take to grow your business. Details such as:

  • Monthly financial projections for 12-24 months
  • Annual projections for 3-5 years
  • Assumptions outlined that support projected sales and expenses (pricing, number of clients, new products, marketing initiatives, comparative plans, product costs and more)
  • “What If” scenarios to illustrate the potential ups and downs.

It is easy to think of the plan as the tool. And it is – a well developed plan helps you manage to your expectations. It provides business measures to keep things on track. (Ever hear the old saying, “If you don’t measure it you can’t manage it?”) But often overlooked is the value gained in going through the planning process, whether it’s a simple two page plan or a full-blown book with multiple chapters. The business idea will be refined and honed, and valuable insights achieved.

Ready to Execute

Once the planning process is complete and documented, with a set of financial projections that tie to your vision and help you see what success looks like and what it might cost you in dollars to do it – you’ll be ready to execute your idea! (Don’t forget, however, the plan is dynamic, meaning it will need updating and modifying on a regular basis!)

In the following case study I will illustrate two key elements I have found among successful entrepreneurs who have implemented a planning process:

  1. They start with the end in mind.
  2. Execution, execution, execution…..

Case Study: The Financial Operations Network

I have been fortunate to have been involved with the start-up and launch of a unique business model in my work with a successful serial entrepreneur – Phil Binkow. I have tremendous respect for Phil and his ability to see opportunities and make them happen.

About 10 years ago, Phil had the vision of building a content rich website for financial professionals, specifically in the area of Accounts Payable. Phil produced one of the best business and financial plans that I have seen. He researched his target audience, asking questions about price, content, and their day-to-day challenges. He carefully studied competitors and the industry to find any gaps. He articulated where he felt the business could go and even reached out to competitors as partners.

After reading the plan, I was convinced that here was a business with solid recurring revenue in a niche no one else was serving. We built a comprehensive financial projection which included assumptions for pricing, ramp up of memberships sold, and types of ancillary services and products to sell. The model also helped us understand the potential capital needed to develop and launch the initial site and a future complimentary resource site.

What Determines Success or Failure?

Phil implemented the two key elements in the planning process that I believe can define the difference between success and failure:

  1. He started with the end in mind.
    In other words, he actually has aligned himself with competitors that could ultimately become potential buyers of the Company. Phil knew intuitively that it is better not to go up against the larger, well financed competitors in the industry, but instead, nibble at their Achilles heel with a product or service that they will not pay attention to until its too late. This makes a company a prime acquisition target. He has a game plan for how he would like to exit.
  2. Execution, execution, execution.
    Phil knew his plan had to have the right premise: to solve someone’s problem. But without a solid execution on the part of him and the management team the business would not have taken off. It would still be at the gate announcing its intention to depart.

Now, fast forward to today. Phil successfully exited that business by selling to a strategic buyer and he and his team have started several new business adventures since!

Need some guidance on financial planning for your business? Check out our Financial Planning Tool Kit

Company Growth: Slow and Steady Wins the Race

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Most business owners, CEOs, and CFOs associate the rapid growth of a business with success. But you don’t have to search too long or far to find a company that met its demise after an attempt to expand at a fast and furious pace.

Of course, most business owners aren’t going to scoff at the idea of their small, startup company becoming the next Amazon or UPS! Lofty goals are admirable, but it is wise to proceed with caution. It’s not uncommon for the owner of a booming business to be overconfident and make the mistakes of growing too fast.

Mistake #1: Lack of Cash

One of the biggest problems of rocket-speed expansion is a cash flow that becomes a cash trickle, or even a cash desert. Growing a business takes money, often more money than there is in the company piggy bank. Up-front investment capital is needed for assets such as building and equipment as well as day-to-day operating expenses like salaries and inventory. Pouring capital into a new venture is always risky because no one can read the future. Unexpected events and circumstances affect the economy, which in turn can affect your business.

Mistake #2: Lack of Quality Control

Quality control is another aspect of a business that can suffer with the too-much-too-fast approach. The pressure to increase production puts stress on over-worked employees that may push them to cut corners. Hiring and training qualified people take time and can be hard to keep up with production. Morale can become low and tension amongst employees can build.

The downsides of rapid growth aren’t the only reason to consider taking a slow and steady approach to expansion. Business owners who learn to trust the process, take time to enjoy the fruits of their labor, and appreciate loyal employees seem to enjoy their success that much more. Speed can get you there faster, but it can also kill the business before it arrives at its destination.

Growth is a good thing but do it within the capabilities of the business. Every business has a “speed limit,” often referred to as the Affordable Growth Rate (AGR). Your company’s profitability and capital structure will dictate how fast you can grow. For help determining your company’s AGR, check out our Financial Model Tool Kit

Forget 1 Million, Focus on 1,000 for Success

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During my time at college, I had a friend who was obsessed with the idea of making $1 million. How hard could it be, he wondered, to take $1 from each of 1 million people? “Look at the guy who invented the pet rock. He became a millionaire selling. . . rocks!” my friend observed.

Creating the next big fad was his plan, but he quickly found it’s not easy to duplicate the success of the pet rock. Creating a product that could command the attention of 1 million people is a challenging dream to chase.

I recalled my friend’s ambitious plan to gain 1 million customers while recently reading author Kevin Kelly’s essay entitled “1,000 True Fans.” The main point of the essay is that most of us do not need 1 million customers; 1,000 will do nicely.

Defining a “True Fan“

Kelly’s “1,000 true fans” are people who would do almost anything to help their favorite businesses prosper. He gives the examples of a singer whose devotees will drive 200 miles to hear her perform and a writer whose fans buy hardback, paperback and audio versions of his latest book.

We would all like to have diehard fans like those, but they are difficult to attract. That’s especially true if your business provides a product or service that is not unique – like state-mandated auto emissions tests, for instance. Nobody is going to travel 200 miles to get their emissions test from you, except possibly your mother.

On the other hand, I have clients like dentists and property managers who are very highly regarded as regional experts. Their top clients, or fans if you will, are loyal to the point of sending them gifts and personalized Christmas cards. I have to imagine their fans would follow them through a change of office locations or the occasional fee increase.

Why 1,000?

Two premises of Kelly’s “1,000 True Fans” are that the entrepreneur can earn, on average, $100 profit from each true fan per year and that an entrepreneur can make a living by earning, on average, $100 per year from each of 1,000 customers. That’s $100,000 per year, but the $100,000 must be free and clear of all operating costs. In other words, it is net profit.

Why is 1,000 the magic number? That is the question I asked myself while reading “1,000 True Fans.” I know dry cleaning businesses whose owners make their livings from customer bases smaller than 1,000. I can imagine Kelly’s premises being valid for a writer or a singer without a band. But for most of my clients’ businesses, some adjustments would have to be made.

As Kelly explains: “The number 1,000 is not absolute. Its significance is in its rough order of magnitude — three orders less than a million.” So, 1,000 is not posited as the be all and end all. It’s an approximation far closer to the mark than 1 million customers.

For an entrepreneurial professional with employees, the business probably needs to clear $100,000 per professional (maybe more depending on the region). And, the 1,000 customers likely needs to be expanded to accommodate a practice of several professionals.

The key point is that attaining 1,000 customers is an achievable goal. You can grow your business to that size by adding just a few accounts each week. And, if 1,000 is achievable, so is 2,000. It just takes more time. . . and an unwavering commitment to keeping customers happy.

Here’s to your 1,000!

Mike, The Numbers Coach

Business Growth… Is Bigger Better?

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This is often a question that I ponder.  The tendency is to say but of course if you don’t grow, then you wither and die as an organization.  Some of the conventional wisdom says that size and growth matter.  However, is it really about being bigger or is it really about being great at what you do?

I read a book titled “Small Giants: Companies that Choose to be Great Instead of Big” by Bo Burlingame.  I really liked many of the concepts that emerged from his research on how companies with strong brands such as Clif Bar and Anchor Brewing became great companies in their industries.  Instead their focus was on becoming great companies delivering their products to their customers and creating a work environment where their employees thrive.

I challenge you to think outside the box and determine what your path should be—getting bigger or being the best? Knowing your business “why” will shape how you answer this question.

Here’s to thinking outside the box about what growth means to you!

Mike

Cash Flow Tips For Uncertain Times

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I’ve been watching the news and talking with colleagues and clients and wanted to share some strategies with you that may come in handy as you navigate through uncertain times.

Consider these cash preservation ideas…

  • Research refinance options for any high interest loans and ask for some or all of the closing costs to be waived.
  • The Small Business Administration has created a program to fast track low interest loans under its Economic Injury Disaster Loan, visit: www.sba.gov/disaster
  • Reach out to your lenders about deferring payments, or reducing to interest only payments, on debt.
  • Ask your landlord if you can pay rent at the end of the month (in arrears) for the next 90 days.
  • Ask your landlord about reducing or deferring Common Area Maintenance (CAM) charges for the next 90 days.
  • Call clients to see who can pay faster/earlier.
  • Call vendors to see if you can get extended terms or defer some portion of invoices to a later date.
  • Ask vendors to take payment on a company credit card.  Ask the vendor to charge the amount just after the credit card statement drop date.  This can defer a payment from 15-45 days if timed correctly.
  • Reach out to your credit card company to ask for reduced or zero interest for the next 90-120 days.
  • Bill customers as quickly as possible.
  • Consider whether you have any customers who might pay now for future delivery of services.
  • Defer your personal tax return filing and payment to July 15th.  The IRS issued recent ruling that is allowing a delayed 2019 tax filing until this date.  However, if you are owed a refund file your return now to get the funds.

If you think of other ideas, I’d love to hear them!  My belief is that we will come out of this stronger and definitely together when times are tough.  Stay well and here’s to more cash flow coming into your company!

Mike

Want To Improve Your Sales? Do This One Thing

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I recently ran across an article discussing how some companies are asking one simple question to get an understanding on whether a customer would recommend your product or service.  Referred to as the “net promoter score “, the question asked is the following.

On a scale of 0 to 10 how likely is it that you would recommend us to your friends or colleagues?

High responses in the 9 to 10 range are promoters.  Low responses from 0 to 6 are detractors and responses between 7 to 8 are somewhat satisfied.  This concept was embraced by GE Healthcare who at the time was doing traditional customer satisfaction surveys that only gave vague results.

GE went so far as to not only compile a score but also tie it to a bonus.  However, there are critics of this approach too.  While it is a simple measure some say its simplicity may point people in the wrong direction. My thought is we all need to start somewhere and having an actual metric gets you started thinking about how to make customers your best source of referrals.  Understanding why detractors answered the way that they did can only give you helpful information to become better at what you do.  The discussion with your customers on this question can be of great value that can accelerate your company’s growth.

Want to Increase Sales?

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There is a whole lot of information on the web and in print on what to do to get great sales results.  Part of the solution is to know what are the statistics behind some sales activities that could help influence how you approach your activities.

  • Most emails get opened at the end of a day.  According to a study done by MailChimp they found the hours between 2pm and 5pm to have the most opens.
  • Tuesday is tending to be the day of the week with the best open rate.
  • A subject line is one of the keys to whether a person opens an email.  A study shows about 35% of people will make their decision to open an email based on a quick read of the email’s subject line.
  • Key words in your subject line are important for the open rate.  Words such as “learn”, “new”, “alert” tend to grab their attention.
  • According to a recent study about 57% of recipients will mark an email as spam, and this is even when the person knows the sender too.  If the subject line and material don’t resonate, they will throw it to spam because they don’t have the time to linger over matters that don’t help them move forward.
  • For outbound cold calling only about 2% result in an appointment.  This resonates with me because of my experience with clients using this technique.  It can be very effective but requires a large volume of calls to drive results.
  • On average a study showed that sales people will spend about 25 hours each month leaving voice mails.  Does leaving a voice mail work?  It may in some cases, but from my experience it does not result in calls to action to return the call.
  • Most voice mails will not be returned.  A study done by RingLead indicates that 80% of call go to voice mail and 90% of the first-time voice mails will go unanswered.  Some say to make it effective, only leave a voice mail that is between 5 to 15 seconds long.
  • The best time to call is generally between 6:30am – 8am and 4:30pm and 6:30pm.  People are usually checking messages and catching up at these times of day.
  • A recent study found that 77% of B-to-B buyers never talk to a sales person without independent research done before making contact.  It’s important to maintain the right social media presence and website content that will provide the information needed to the buyer.
  • Another study on B-to-B business found that 84% of buyers in this market started their buying decision with a referral.  One of the most powerful sales techniques is “word of mouth” referrals from a trusted friend or advisor.  How can your company position itself with influencers in your space as the “go to” source for your product or service?
  • Social media usage for business has found sales people are 79% more likely to hit their goals.  The key is using it for business communication with a strong message for recipient.

Give these statistics some thought on how you can utilize it with the sales techniques most appropriate for your company.

Here’s to increasing our sales!

Mike

Company Growth: Know Your Speed Limit

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Have you heard the saying “you’re either growing or dying?” 

For me, growth is in the eye of the beholder.  What I mean by that is growth means different things to different people and larger is not necessarily better.  The seduction of “bigger is better” exists because you can scale, get better pricing from vendors, and have a wider impact on your market.

However, as Basecamp founder Jason Fried explains in his article “The Zen Approach to Growth,” size may be important but it should be a by-product of meeting the mission of your company.  Getting bigger means more personnel to manage, larger customer base to manage, and so on.  Employees become a number vs. a name and family.

A business owner should think about why they want to grow and how it will impact the culture.  Being intentional about your growth is important.  Careful, methodical growth where the rate of growth is at least within the company’s affordable growth rate, which I often referred to as your “speed limit.”  Every company has a speed limit, and going excessively fast has its consequences.  Know your limit and why growth is important to you.

Here’s to knowing your speed limit and staying within it.

Mike

Building Your Financial Plan

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Any competent financial executive will say “a business needs a sound financial plan” to tie the numbers to a business owner’s strategy. But what does that really mean? It’s time to demystify this statement.

  • Define your objective.  Why do you run your business?  Your reason could be any of the following or something else, but it’s important to start with the end in mind:
    •    “I want a good, stable life style maintaining business.”
    •     “I want to increase my net worth so I can retire early and enjoy the good life.”
    •     “I’ll start a ground breaking business, grow it quickly and sell it so I can move on to the next adventure. I don’t want to get bored!”
    •     “I want to create a legacy for my family.”
  • Create a business plan.
    • Now that you have your objective in mind, the plan is simply the day-to-day activities that will help you achieve it.  This can be as simple as determining how many new clients you will need at X dollars per month, or more detailed with specific key performance indicators for all areas of the business (finance, operations, sales and marketing, HR, etc.)
    • It is easy to think of the plan as the tool. And it is – a well developed plan helps you manage to your expectations. It provides business measures to keep things on track. (And as we all know, if you don’t measure it you can’t manage it.)  But often overlooked is the value gained in going through the planning process – whether it’s a simple two-page plan or a full-blown book with multiple chapters. The business idea will be refined and honed, and valuable insights achieved during planning.
  • Execute.
    • Now it’s time to put the plan into action.  Without this step, a plan is just a piece of paper.  Start acting on your plan, find someone to keep you accountable to sticking with it, and celebrate your progress along the way.

Let me know how I can help you build your blueprint.  

Here’s to planning a successful year!   

Mike

Does Your Business Have the “Disease of More?”

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Have you met the person who is always seeking the next “growth opportunity?”  The person who is never satisfied with their results or their company’s results? 

There is a concept in the sports world known as the “Disease of More.”  This phrase was coined by Pat Riley.  Pat was the famous basketball coach of the Los Angeles Lakers and led them to six championships.  He said the “Disease of More” was often what explained why a championship team was dethroned from its winning ways.

After winning the championship, the members of the team would want “more”:  more money, more endorsements, more accolades, more play time, more attention. . . more, more, more.  Consequently, this team of cohesive players broke down and became an entitled toxic mess that ended up failing.

This reminds me of companies or leaders of companies who feel that you either “grow” (i.e., get more) or “die.”  My feeling has been that if a company strives to be the best at what it does, then the “more” or growth will come, and it’s not forced.  The book Small Giants by Bo Burlingham outlines companies that chose to be great instead of big.  The irony is some of the companies outlined in the book do continue to grow larger, but they do so in very intentional ways and not simply for the sake of wanting “more.” 

Do you or a company you know have the Disease of More?  Your cure may be the tradeoff between building a great company or a big company.

Cheers to growing a great business!
Mike

Selling via email? Absolutely – but use these tips for success

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Communicating with sales targets via email was probably not an option for your parents’ generation of workers. Yet email is a crucial tool for today’s salesperson. But these days, as we know too well, it’s impossible to read all incoming emails. So only “smart” emails will make it through your prospects’ filter.

Here are a few tips on how to craft and send emails that actually get read:

Best time to send:  According to Mailchimp, most emails are opened at the end of the workday, between 2:00 and 5:00 p.m. So, send emails in the afternoon to be first in line. A study by Experian shows that the most emails are read on Tuesdays. Why? Maybe because the Monday rush has passed. Maybe people are moving toward a four-day work week, whether their companies approve or not. Whatever is happening, send your most important sales emails on Tuesdays if possible.

Choose subject lines carefully:  Studies also show that the subject line makes or breaks an email: 35 percent of people decide whether to open an email based on the subject line. So a “cold call” email has got to have a short, interest-catching subject line.  Email open rates drop by 60% when the subject line is more than three words, so keep it short and concise.

    • There are also certain words in a subject line that increase the likelihood of it being opened. It may seem unoriginal, but words such as “alert,” “new,” and “free delivery” in the subject line (not only those words, of course) seem to pique recipients’ interest. Of course, the subject line should match the email content. Interestingly, words like “report” and “learn” in the subject line are likely to get your email escorted to the trash bin – perhaps because they allude to committing time that people just don’t have!

Content that inspires action:  Now we come to the content inside the email. The message should be friendly, concise, and action-triggering. It should have helpful information: why your product or service is better, what you want the recipient to know, what you want them to do next. People are busy; if it isn’t relevant to the receiver at the time, it’s clutter, no matter how fabulous you are. Give them a reason to reply!

So, send sales emails – but send smart sales emails. And think before you send each one. The last thing you want to do is flood someone’s inbox until your name equals “Junk Mail” in their mind.