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M&A, complementary to widespread artificial intelligence implementation, is also high on the list of upcoming priorities for new Dark Matter CEO Vikas Rao. View the full article

The NEXA CEO accused his rival of lashing out at his company despite its own alleged wrongdoing in poaching loan officers and diverting loans. View the full article

Check out the initial reveal of the 28th edition of National Mortgage News' Top Producer survey, in a year where falling rates helped industry-wide volume. View the full article

The wearable breast pump space has never been more crowded. In the last three years alone, dozens of new devices have hit the market, each one positioned as more feature-packed than the last. Night lights. Stronger and stronger suction. Electric charging cases. Massagers and heat, placed with all the anatomical confidence of someone who has never needed to use one during late-night feeding hours, no less examined a woman’s anatomy or the clinical research on breast milk production. Feature innovation is important for a pitch deck you’re putting in front of investors. But from the inside of a nursing room – whether that’s at home, at the park, or in your employer’s pumping room – it too often looks like engineers trying to out-compete each other, rather than solving problems focused on women’s needs. I know this category from both sides. I came to this industry not as an executive with a market map, but as a mother who deeply understood the problem that existing products weren’t solving. That empathy taught me something that I don’t think gets said often enough in consumer tech: there is a meaningful difference between studying your user and being your user. The best products come from people who don’t have to imagine the problem because they’ve actually lived it. Empathy is an important part of innovating solutions, but it’s not enough, and this is also where many well-intentioned products fall short. Mothers don’t just deserve technology that centers their experience. They deserve technology that works, that has been tested, validated, and held to the same rigorous clinical standards we expect of any medical device that interacts with the human body. A flood of hardware Innovation in our category is genuinely important. Women deserve better products to support breastfeeding, and advocacy that moves the world forward in support of postpartum well-being. The market for products that support nursing mothers is growing, and that growth means more companies will enter it, some with real intent to innovate and others chasing revenue opportunities. In our category today, consumers are facing a flood of hardware that’s optimized to look good on a competitive spec sheet, not designed for their actual lives or biology. This is placing women into the “gadget trap”: a product team identifies a growing market, conducts a customer survey, and might even run a focus group or two before handing the design brief off to engineers to make the products impressive enough to win a slide in the investor deck. That device may look good on paper, but underperform — or even lead to discomfort or unsafe outcomes for those who are actually using it. For example, many wearable pumps strive to be the “thinnest” and, in doing so, build a pump that does not accommodate most women’s nipple enlargement while pumping — and worse, pair that with extremely strong suction. The result is a product that hurts and is ineffective. Not a niche Part of what drives this category’s blind spot is a persistent underestimation of who mothers are as consumers. They’re not a niche; they are some of the most discerning, demanding, and overlooked in consumer technology. They’re constantly navigating under limited time, limited sleep, limited physical and emotional bandwidth, and as industry innovators, we should have zero tolerance for products that waste any of those resources. Companies that center women and treat them with care and respect ultimately build better products. Brands that get this wrong are simply solving for the wrong audience. They were built for the marketing pitch and not for the person. To design with purpose, rather than to design for a pitch deck, isn’t about asking the question “What can we add?” It’s about asking “What can we make better? What can we simplify? What really works?” Listen rather than pitch These questions sound deceptively simple. Answering them is one of the hardest disciplines in product design, because they require resisting the instinct to keep building in “more.” Elegant, effective designs are built not through research alone. Research tells you what people say. Lived experience tells you what people mean. The best teams find ways to bridge that gap, through deep listening, through clinical partnership, through co-development with the people who will actually use what you’re building. The brands that will win in this category long-term are not just the ones with the most features. They’re the ones willing to go deeper and let the people who actually use the product lead the way. This is especially true in women’s health. For too long, women have been using products that weren’t really built for them — that was the problem with the breast pump category in the first place, before Willow began the wearable revolution. Let’s not let the mission at the core of this category be outpaced by market pressure to outcompete on the spec sheet. That discipline, the willingness to focus rather than add, to listen rather than pitch, is what separates a product built for a mother from a product built for a digital ad. View the full article

Earn citations in ChatGPT, Perplexity, and Google‘s AI Overviews with an 8-step SaaS playbook covering schema, llms.txt, and common pitfalls. View the full article

On February 10, 1985, an imprisoned 66-year-old male serving a life sentence was offered a conditional release that would have reunited him with his wife and children, from whom he had been separated for 23 years. The prisoner turned down the offer. His name was Nelson Mandela. In a rejection publicly delivered to the South African government by his daughter at a rally in Soweto, Mandela refused the condition that he permanently walk away from the country’s anti-apartheid movement. “I cherish my own freedom dearly, but I care even more for your freedom,” he stated, unwilling to “sell the birthright of the people to be free.” Mandela would spend another five years in prison until his unconditional release in 1990 at age 71. While often mythologized for his otherworldly stature, this lesser-known story best represents what made him revered: his courage. His life is a visceral, powerful example proving that we can live with virtue, alongside fear, and successfully navigate an uncompromising world. Unfortunately, tales of enduring models of courage—Abraham Lincoln, Rosa Parks, Amelia Earhart, among others—are told so reverently that courage begins to sound mystical. We tend to portray it as an innate trait possessed by dint of nature, a birthright hardwired into a rare few. Nothing could be further from the truth. Turning toward the fire Courage is the ability to act intentionally in service of a virtuous core mission, despite the risks. Yes, courage is foreshadowed by dread—an emotion that triggers our instinct to flee. But courage is what happens when we act against those instincts and run toward the fire. While some muster courage faster than others, we can all develop it as a habit. Courage takes work, time, and intention. Mandela noted that prison gave him time to think deeply, and that the rigid discipline of reflection shaped his behavior. He spent his days reading biographies and, legend has it, Marcus Aurelius’ Meditations. Aurelius’ Stoic philosophy argues that a good life depends on governing your own mind. Mandela’s worldview grew eerily similar: control yourself, manage your vanity, and temper your hunger for approval. In my research for my book, C.O.U.R.A.G.E., this emotional independence is the fundamental underpinning of a courageous life. Mandela spent 27 years honing his. I concluded that courage is a deliberate skill, an ability developed by training seven key muscles, practiced together: Commit To A Purpose Own Your Potential Unmask Fear Reject Distracting Voices Act Decisively Grow From Failure Embody Resilience Proper training To activate this framework, professionals must adopt the mindset of an elite athlete. An athlete trains for the moment before the moment arrives, rehearsing fundamentals until execution becomes dependable under pressure. Courage works the same way. A leader doesn’t suddenly manifest it during a corporate crisis out of thin air; they rely on “muscle memory” forged through daily repetitions of micro-courage. In my book, I share the lived experiences of “courage pilgrims”—compelling, everyday models of courage: Ali Hassan Mohd Hassan turned a tiny startup into Malaysia’s most beloved sports retailer while keeping his purpose rooted in service to young people, not just profit. Roosevelt Giles rose from sharecropping poverty with a sense of self-worth that outgrew his circumstances. Janet King, a single mother in a deeply patriarchal setting, kept saying no to limiting assumptions and built security and dignity for her family. Gary DeStefano showed what decisive courage looks like in business by moving from debate to action and, just as importantly, by developing courage in others. Simidele Adeagbo transformed the disappointment of missing one Olympic dream into becoming Nigeria’s first winter Olympian and the first Black female Olympian in skeleton. Wendy Lea turned personal tragedy and business setbacks into a life of ecosystem building and resilient leadership. None of them is famous. But they hit the “gym” every day, building their courage muscle by having difficult conversations, pushing past debilitating rejection, and viewing failure not as a stop sign, but as vital coaching feedback. We desperately require this kind of athletic, conditioned courage today. Between the rapid acceleration of artificial intelligence, deepening global polarization, the collapse of trust in institutions, and unprecedented economic shifts, we stand at a crossroads. The stakes are somewhat similar to the situation South Africa faced in 1990. Mandela’s cultivated courage steered a fractured nation toward reconciliation, averting anarchy. It took immense effort to forgive, to unite, and to insist on a shared future. Stepping into the arena Today, business professionals and everyday citizens face a similar challenge. The moment calls for leaders willing to risk their own comfort, popularity, or purse to guide the world toward common human uplift. We cannot wait for naturally endowed saviors to emerge. We must all step into the arena, knowing that we could each be the spark needed to ignite meaningful change. After all, courage is contagious. When Mandela was offered compromised freedom in 1985, he didn’t agonize over the decision. His response was quick because he had spent 23 years in the dark, lifting the heavy weights of reflection, purpose, and self-control. By the time the ultimate test arrived, his response was a reflex. We owe it to ourselves to start our own training today. Because ultimately, courage is not hardwired—it must be trained like a muscle. And courage is what the world needs the most these days. View the full article

Learn how AI tools like ChatGPT & Perplexity choose and cite sources. Check if your site is in sources and what to do if it’s not. View the full article

I have a confession to make. I keep a secret document in my Google Drive titled “Fund Theses That Piss Me Off.” And every time I read about a venture capital fund with a generic, meaningless, or buzzwordy thesis that manages to raise a bunch of money regardless, I copy and paste it into my burn pile. This is how I started to notice a couple of years back how sometimes VCs will make dramatic changes to their thesis and investing focus. And it happens not just at a fund level, but across whole chunks of the industry, too. Take, for instance, climate VC. This was a white-hot category not too long ago. Today, all of a sudden, all the climate funds are gone, or they’ve gone quiet. One climate VC that I used to send deals to is now doing “AI for climate” investing—something that I’m sure they know is an oxymoron. There are still funds doing what used to be thought of as climate deals, but now they have to talk about it using different words—words like American dynamism, resilience, supply chain, and defense. It should come as no surprise that this particular wild swing in language had something to do with a recent wild swing in the political discourse around climate in the U.S. I bet you can think of some other recent VC buzzwords that, due to political realities, are all but untouchable today—“diversity” being the big one. A whole generation of funds was built on the thesis that talent is equally distributed, but opportunity is not. To capture alpha from that arbitrage today, they must describe themselves in very different terms or risk extinction. SaaSpocalypse 😵 Politics is not the only culprit—tech trends play a big part in this, too. A couple of years back, funds that used to be generalist seed funds suddenly became AI funds. More recently, the so-called public market “SaaSpocalypse”—the expectation that artificial intelligence is going to kill SaaS companies, which have been the bread and butter of VC for decades—is changing the strategy and language of a large chunk of the industry. Five years ago, nearly everyone was a SaaS or enterprise investor. Today, it’s crickets. Last week, a fund manager friend who I used to think of as a SaaS guy told me that he’s only doing consumer these days (!). It’s not just SaaS that’s taking a hit—it’s a lot of general software investing, too. The spectacular growth of LLMs has lowered the barriers to entry in all kinds of software sectors. Now that it is so easy to build a product and launch it, the product itself is no longer thought to be any kind of protectable moat. And so, investors are venturing into sectors that are more immune to this, where the product is harder to replicate—spaces like hardware and consumer packaged goods. Both of which, not even a year ago, were extremely unpopular. I feel for you, founders For founders, the result is whiplash. They pitch VCs that Pitchbook says are in their sector, only to learn that their company is “out of thesis.” They find themselves in untouchable categories and have to pivot their own pitch, pronto. They follow VC advice, only to get the opposite advice not even six months later. By the way, this is a great reminder to founders that you should never build companies for the sake of investors. You should build for your customers, always. Investors will get it or they won’t, but the only way you’ll grow and eventually exit is by building something customers love. Hold the VC stereotype for a sec You might be tempted to blame this all on VC flimsiness or even hypocrisy. And sure, it plays into some well-deserved VC tropes. But it’s worth noting that founders do this, too. I bet you know some crypto folks who rebranded to AI in 2022. In fact, I bet you know some non-crypto folks who rebranded to AI recently, too. People should be allowed to change tracks, especially when there’s good reason to do so. I myself used to eye-roll when I noticed VCs jumping on a new bandwagon. But the more I see it, the better I understand it. I no longer assume that folks pivot language out of flimsiness. I assume they’re pivoting language for the sake of LPs, or limited partners—aka the people and funds that invest in VC funds. LPs are the lifeblood of VC Like founders and VCs, LPs are getting signals from the press, social media, analysts, and each other. Their bosses and investment committees are, too. If there is a general belief that a sector is dead (say, “SaaSpocalypse”), it will be really hard for an LP to justify investing in a fund that’s still focused on it. Conversely, if a new sector or opportunity emerges, it will be really hard to justify not having any new bets in that space. So the LP will want to fill that gap in their portfolio. And VC funds who hit that buzzword (and can back it up with proof) will have a shot at a new LP. In theory, our industry lionizes the contrarian. In practice, it’s extraordinarily hard to make contrarian bets and say contrarian things when you’re investing other people’s money. Because those people are hearing and reading about the things that are hot. And they’ll want to know why you’re doing something else. And, because it takes such a long time for VC bets to pay off, even if you’re contrarian and right, you won’t be proven a genius for a very, very long time. And you need to be able to raise regardless. A contrarian take For the record, my fund’s thesis is centered around founders rather than sectors. I occasionally get pushback from LPs who want me to concentrate further on a particular industry. In response, I share our sector interests, and disclose that these might change across vintages as new opportunities emerge and others ebb. And I disclose one of my most contrarian VC takes—that it’s better for early-stage VCs to specialize in types of people, not just in types of spaces. Because buzzwords come and go, and spaces rise and fall. But talent will always rule the day. View the full article

When Meryl Rosenthal and her cofounder started a human capital and workplace transformation consultancy in 2005, she was 41 years old. Nine years later, her cofounder left for personal reasons, rendering Rosenthal—by then age 50—a so-called solopreneur. Being a woman of that age and running a business on her own certainly came with challenges. One, she says, was that younger HR and business leaders tended to assume she didn’t have the necessary expertise because her background had not squarely been in HR. Another was a preconception that she—as an older woman—didn’t understand technology as well as her younger peers. None of these things daunted Rosenthal, though. “​​What helped me move forward was the combination of everything that had come before: work ethic, business experience, perspective, adaptability, and confidence. I was able to step fully into my own voice,” she says. “I was able to trust my judgment, and reshape the business around my strengths.” She adds that startup founders who succeed with their ventures often do so because they’re able to “borrow and apply skills from prior roles in entrepreneurial ways.” And that, she says, “is especially true for many women over 50.” Her business has thrived. It’s been going for over two decades. Rosenthal is about to turn 62. According to Census data, around 40% of all businesses in the U.S. were owned by women last year, a growing number that’s testament to changing gender norms. Women are also starting more companies than ever before—almost half, according to some research. But for female founders and business owners who are over 50, progress has come with a catch. Many report a double bind: bias tied not just to gender, but to age, too. That bias shows up most starkly in areas like funding. “You have to prove yourself a lot more as a woman, and an older woman,” says Julie Wing, a 65-year-old serial entrepreneur and aviation business owner. “Men don’t have to prove themselves.” What makes this double bind particularly galling is that, over the last few years, a growing body of research suggests that it is precisely this group of founders that may be among the most overlooked sources of entrepreneurial growth. One MIT study found that older business founders are much more likely to be successful than younger ones, not least because “prior experience in [a] specific industry predicts much greater rates of entrepreneurial success.” Research from Boston Consulting Group, meanwhile, shows that startups founded and cofounded by women performed better than those founded by men, generating, on average, 10% more in cumulative revenue over a five-year period. Perhaps even more strikingly, that research established that for every dollar of funding, the women-founded startups generated 78 cents, while male-founded startups generated less than half that—just 31 cents. In other words, overlooking founders who fall into both the disadvantaged age and gender categories could be leaving an indeterminable amount of economic value on the table. The Bias Trap While data on the particular experience of female founders over the age of 50 is scant, many studies show that both age and gender remain a barrier when starting a business and raising money. Research published last year shows that of the $289 billion of venture capital deployed in 2024, a mere 2.3% went to female-only founding teams, and just 14.1% went to mixed-gender founding teams. Academics in Germany and Austria last year published their results of a survey of 361 venture capitalists around the world, and found that more than a quarter of respondents said they believed women’s participation in founding teams to be overrated, that 15.3% said they considered women to be poor entrepreneurs, and 11.9% admitted they would not invest in women-led ventures. When it comes to age, the research is just as damning. One academic study published last year found a clear negative correlation between a founder’s age and the amount of money that person was able to raise: It became harder as founders got older. Shubhi Rao, a veteran corporate executive who, at the age of 54, recently founded an AI company, explains that both of these effects can, at least in part, be chalked up to familiarity bias—a tendency to favor and invest in a familiar or known option, even if, objectively, an unfamiliar option might be better. This can be particularly powerful when things are uncertain. And the world of startups is deeply uncertain. “There are no audited financials, no operating history, no comparables in the traditional sense. The product is unproven, the market is contested, and the team has almost certainly never done this specific thing before,” she says. Against this backdrop, decisions are frequently made on the basis of mental shortcuts, and what’s been done successfully in the past. “When you cannot underwrite the future,” she says, “you study the past.” Thin Historical Record The problem is that the past is not, as Rao puts it, “a neutral record.” Instead, it has been dominated by company founders who are young men—meaning that, by definition, successful founders are young men, too. So when someone who doesn’t fit that description enters the space, bias can kick in strongly. “Consider a woman in her mid-forties starting a company,” says Rao. “The question the system finds itself asking is not whether she is capable. It is whether there is anything to compare her to, whether the mental model [of her being a successful founder] holds, whether the pattern that we’ve so far seen when it comes to successful founders applies,” she adds. “And when you start layering variables, age and gender and sector and business model and background, the historical record thins out very quickly.” Julie Wing, the aviation executive, has seen this play out in everyday interactions. Of prospective customers or, indeed, potential funders, she says that they “naturally assume my male colleague is going to know more than me—even when I’m the sole owner of the business.” Sarah Clayton, a 58-year-old owner of a business-to-business conference company, says that women are also still more likely to be expected to manage children and other family responsibilities, something that’s corroborated by reams of research. This phenomenon also feeds into bias and preconceptions about their commitment and competence, and about what makes an ideal business leader. Rao says that for some combinations of founder characteristics, there is almost no prior example of somebody who’s done it before. For a woman of color, of a particular age and in a particular industry, for example, there might be no one else like her who’s made a name for herself. “Not because these founders have not existed,” she adds, “but because they were not the ones who got funded, and so they never made it into the picture in the first place.” The Experience Dividend Funders, and especially venture capital funders, are inherently focused on recognizing untapped value: finding the founder, the idea, or the company that no one else has spotted. And some funders actually are starting to appreciate that those opportunities might well be at an intersection of age and gender that’s traditionally not been as visible in the startup world. In a 2024 interview with Institutional Investor magazine, Katerina Stroponiati, a longtime investor, said that the venture capital world had for years “glorified youth.” “Imagine all this experience [older founders have], all this wisdom and all these years,” she added. Clayton says that the “list is long” of qualities that older women in business bring to the table: “They have high pain tolerance, they’re used to multitasking, used to preempting things happening while also just getting things done,” she says. “They also have high emotional intelligence and collaboration skills and they often lack ego,” she adds. Lauren Silva Laughlin, a 46-year-old founder of a men’s health startup that aims to create transparency around the market for sperm donorship, says that, in some cases, those structural disadvantages can actually force founders to build more disciplined businesses. “If it’s harder for me to raise money, then I don’t have the luxury of being able to afford to waste a million dollars in the first 12 months, or $5 million in the first two years,” she explains. “I have to be super thoughtful about what I’m doing and hyper-focused on it being a profitable company.” She also says that as an older founder, some of the barriers she faces embolden her, and make her more determined to succeed. “If I was in my twenties, some of what I encounter would piss me off,” she says. “But in my forties, I’m like—you do what you have to do to be successful.” Asked whether she thinks conditions are improving for women business owners and founders, Julie Wing, the aviation business owner, says that despite all of the challenges and headwinds that still exist, she’s optimistic. “Women are agile and resilient and determined, and the more we normalize women of all ages starting and leading businesses, the more we’re encouraging women to take that leap of faith—to pursue their dream of doing something on their own,” she says. She also thinks that women are becoming more willing and enthusiastic to go against gender norms and to prove themselves: “In some ways, I’d like to be alive in a hundred years’ time,” she says. “I think women might’ve conquered the world.” View the full article

Regulators had reviewed whether deal violated Beijing’s investment rulesView the full article

Grasping the key components of finances in business is crucial for anyone looking to succeed in a competitive environment. Effective financial planning and budgeting help set clear goals and manage resources efficiently. Accurate financial statements, like balance sheets, reveal a company’s health, whereas financial ratios provide insights into profitability and liquidity. As you explore financing options and risk management, you’ll discover how these elements work together to create a solid financial foundation for growth. What’s next? Key Takeaways Effective financial planning involves setting business goals and realistic budgeting to control spending and prioritize investments. Financial statements, including balance sheets, income statements, and cash flow statements, evaluate a company’s financial health. Analyzing financial ratios reveals insights into profitability, liquidity, and leverage, aiding strategic decision-making. Financing options, such as debt and equity, provide necessary capital for growth, each with distinct implications for ownership and repayment. Risk management and resource allocation strategies ensure alignment of financial resources with business goals while addressing potential threats. Financial Planning and Budgeting When you think about running a successful business, effective financial planning and budgeting play a vital role in achieving your goals. Financial planning involves setting clear business goals, like revenue targets or market expansion plans, which guide your budgeting and resource allocation. By creating a realistic budget, you categorize expected revenues and expenses, including fixed and variable costs. This helps control spending and prioritize investments effectively. Financial forecasting is another significant component; it uses historical data and market trends to predict future financial outcomes, ensuring your budgets align with anticipated sales volumes. Regularly monitoring and adjusting your budgets is important for staying on track financially, allowing you to adapt to changing circumstances and market conditions. Financial Statements and Accounting Comprehending financial statements is essential for grasping your business’s financial health, as they include the balance sheet, income statement, and cash flow statement. Accurate accounting practices not merely guarantee compliance with tax regulations but additionally empower you to make informed decisions based on solid financial data. Understanding Financial Statements Financial statements serve as vital tools for evaluating a business’s economic performance and stability. They consist of three primary documents: the balance sheet, income statement, and cash flow statement. The balance sheet provides a snapshot of your company’s assets, liabilities, and equity, showing the relationship between what you own and owe. The income statement summarizes your revenue and expenses over a specific period, allowing you to assess profitability through metrics like gross profit and net income. Meanwhile, the cash flow statement tracks the inflow and outflow of cash from operating, investing, and financing activities, highlighting your liquidity. Regular analysis of these financial statements is important for informed decision-making, ensuring you understand your business’s financial health and operational efficiency. Importance of Accurate Accounting Accurate accounting is fundamental for any business aiming to maintain financial health and make informed decisions. It provides a clear snapshot of your company’s financial status through vital financial statements like the balance sheet, income statement, and cash flow statement. These documents are critical for evaluating financial stability and profitability, which are key components of business financial planning. For the best small businesses, regularly reviewing these statements helps identify areas for financial improvement and effective resource allocation. A solid financial plan for your business plan relies on this accurate data, ensuring you can meet immediate obligations and invest in future growth. In the end, effective finances for small businesses stem from diligent accounting practices that lay the foundation for informed decision-making. Analyzing Financial Ratios When you analyze financial ratios, you’re gaining crucial insights into a company’s overall performance and health. Financial ratios are derived from key financial statements, including the balance sheet and income statement. Profitability ratios, such as profit margin and return on assets, evaluate how effectively a business generates profit from its revenues and assets. Liquidity ratios, like the current ratio and quick ratio, measure a company’s ability to meet short-term obligations, indicating financial stability. Leverage ratios, such as the debt-to-equity ratio, assess the extent of debt financing compared to equity, providing insights into financial risk. Regularly analyzing these financial ratios allows you to identify strengths and weaknesses, guiding your strategic decision-making and financial planning. Financing and Investments In the realm of financing your business, comprehending debt and equity options is fundamental. Debt financing means borrowing money that you’ll need to repay with interest, which can be vital for covering costs or broadening operations. Conversely, equity financing involves selling ownership shares to investors, providing capital without repayment obligations, but it may dilute your ownership stake. Debt Financing Explained Debt financing, whereas a common strategy for businesses seeking growth, involves borrowing funds from external sources that must be repaid with interest. This method allows you to leverage capital without sacrificing ownership. Here are some key aspects to evaluate: Types: Common forms include bank loans, credit lines, and bonds. Repayment: Unlike equity financing, debt financing requires regular repayments, impacting your cash flow. Use: Businesses often utilize debt financing for capital expenditures, operational costs, and expansion projects. Tax Benefits: Interest payments are often tax-deductible, improving your financial management. Balancing borrowing costs with expected returns guarantees financial health and sustainability in your business finance strategy. Equity Financing Overview Equity financing serves as an essential alternative for businesses looking to raise capital by selling shares to investors, effectively inviting them to become partial owners in the company. This type of financing is particularly beneficial for small businesses, as it supports their financial planning without the burden of debt repayment. Nevertheless, it does dilute the ownership percentage of existing shareholders. Investors in equity financing typically seek returns through capital gains or dividends, relying on the company’s future performance. Startups often turn to venture capitalists or angel investors for initial funding. Furthermore, companies may opt for public equity financing through an Initial Public Offering (IPO), which can greatly improve capital for expansion and growth opportunities. Risk Management and Insurance Comprehending risk management and insurance is essential for any business aiming to maintain financial stability. To effectively manage risks and protect your financial health, consider these key steps: Identify Risks: Recognize potential financial threats that could impact your operations. Assess Risks: Evaluate the likelihood and potential impact of each risk on your business. Implement Insurance Coverage: Transfer financial risk through appropriate insurance policies that cover property damage, employee injuries, and operational disruptions. Engage in Contingency Planning: Develop strategies to address risks before they escalate, enhancing your business’s resilience. Regularly reviewing your insurance policies guarantees they align with your evolving risk profile and operational needs. Business Goals and Objectives Comprehending your business goals and objectives is essential for aligning your vision with your mission. By setting measurable targets and milestones, you can effectively allocate resources, ensuring that every financial decision supports your overall strategy. Regularly reviewing these objectives helps you adapt to changing market conditions, keeping your organization agile and focused on its priorities. Vision and Mission Alignment A well-defined vision and mission are crucial for aligning business goals and objectives, as they serve as the foundation for financial decision-making and strategic planning. When you focus on aligning your financial resources with these goals, you improve execution and accountability. Here are key components to contemplate: Clearly define revenue targets and market share aspirations. Establish specific, measurable objectives, like a 20% revenue increase through a new product line. Regularly review and adjust goals based on market trends and performance metrics. Communicate your mission effectively to nurture a shared direction among employees. Measurable Targets and Milestones Establishing measurable targets and milestones is crucial for driving business success since they provide clear direction and benchmarks to assess performance. You should set specific, quantifiable, and time-bound objectives, like aiming for a 15% increase in sales within the next fiscal year or reducing operational costs by 5% within six months. These measurable targets and milestones guide your financial planning for small business owners and help align your financial projections in the business plan. Utilizing Key Performance Indicators (KPIs) allows you to track your progress effectively. Regularly reviewing these milestones guarantees you can adjust strategies based on performance and market changes, enhancing your agility and overall success, allowing you to explore the best business ideas and implement them effectively. Resource Allocation Strategies Effective resource allocation strategies play a crucial role in achieving your business goals and objectives. To optimize your financial resources, consider these key approaches: Align resources with goals: Make sure your budgeting decisions reflect your overarching vision, like revenue targets or market expansion. Prioritize investments: Use historical performance data to guide investment prioritization based on projected returns. Regularly review strategies: Adjust your resource allocation to respond to market trends and operational changes, keeping in line with financial forecasts. Utilize KPIs: Assess the effectiveness of your resource allocation strategies, confirming that financial resources are directed toward the most impactful areas. Budgeting and Financial Forecasting When you think about managing finances in a business, budgeting and financial forecasting play crucial roles in ensuring long-term success. Budgeting involves outlining expected revenues and strategically allocating resources to cover both fixed and variable expenses. This practice instills financial discipline within your organization. Conversely, effective financial forecasting utilizes historical data and market trends to predict future revenues, allowing you to make informed decisions about investments and resource allocation. A realistic budget promotes sustainable growth by accurately estimating costs and avoiding overestimation of revenues, which can lead to financial shortfalls. Regularly comparing projected income to actual expenses during budget reviews helps identify financial gaps, enabling timely adjustments that maintain stability. Furthermore, financial forecasting techniques, like cash flow and profit/loss forecasting, are critical for anticipating cash needs and planning for seasonal fluctuations in business activity, ultimately enhancing your approach to business finance. Cash Flow Management Cash flow management is vital for maintaining the financial health of your business, as it involves closely monitoring the inflow and outflow of cash to guarantee you can meet your immediate obligations. To maintain positive cash flow, consider the following strategies: Prompt invoicing: Send invoices quickly to encourage faster payments. Effective inventory management: Optimize stock levels to reduce excess expenditure. Timing payments: Schedule payments to suppliers in alignment with cash inflows. Use cash flow forecasts: Predict future cash needs based on historical data and anticipated sales trends. Regularly reviewing cash flow statements can likewise help you identify patterns and potential issues. This process allows you to make informed adjustments to your financial strategies, ensuring that your business remains liquid and can cover operational expenses, service debts, and invest in growth opportunities effectively. Capital Expenditure Planning Capital expenditure planning is essential for any business looking to invest in long-term growth and operational efficiency. This process involves strategically allocating funds for long-term investments, like equipment, technology, and facilities, which improve your operational capacity and competitiveness. You’ll need to evaluate significant expenditures against your overall business objectives and potential return on investment. Assessing capital expenditures means analyzing cost-effectiveness, the expected lifespan of the asset, and how well it aligns with future growth strategies. A well-defined capital expenditure plan guarantees you have the necessary funds for critical investments as you balance financial risk and sustainability. Regularly reviewing your capital expenditures helps you adapt to changing market conditions and reallocate resources for peak financial performance. Profitability Analysis Profitability analysis is a critical tool for businesses aiming to improve their financial health and operational effectiveness. By evaluating revenue sources and cost structures, you can pinpoint the most profitable activities and identify areas for improvement. This analysis goes beyond measuring revenue; it assesses cost-effectiveness, enabling you to adapt strategies for maximizing returns and ensuring financial viability. Key profitability metrics to reflect upon include: Profit margin – indicates how much profit you make from sales. Return on assets (ROA) – measures how efficiently you utilize assets to generate profits. Return on equity (ROE) – evaluates the profitability relative to shareholders’ equity. Product line margins – help you analyze which products or services yield the highest returns. Conducting regular profitability assessments allows you to compare your performance against industry averages, informing your strategic planning and decision-making processes. Importance of Financial Planning and Role of AI Effective financial planning sets the foundation for a business’s success by enabling clear goal-setting, resource allocation, and anticipation of future expenses. By incorporating AI technologies into your financial planning, you improve precision and gain deeper insights into your financial data. These insights support more informed strategic decisions, vital in today’s competitive market. AI can analyze historical trends and current market conditions, allowing you to create more accurate financial forecasts and budgets that align with your business objectives. Moreover, the integration of AI facilitates real-time monitoring of financial performance, which enables you to quickly adapt to changing circumstances. This agility is fundamental for maintaining a competitive edge. In addition, leveraging AI streamlines your budgeting processes and improves risk management strategies, nurturing resilience and sustainability in your financial operations. In the end, effective financial planning combined with AI can considerably enhance your business’s overall financial health. Frequently Asked Questions What Are the 5 C’s of Finance? The 5 C’s of finance are crucial for evaluating creditworthiness. Character assesses your reliability and credit history. Capacity looks at your ability to repay loans by analyzing income and debts. Capital represents your investment in the business, showing your commitment. Collateral includes assets you pledge as security, which lenders can claim if you default. Finally, conditions refer to the broader economic environment and terms of the loan, affecting your borrowing potential. What Are the 5 Elements of Finance? The five elements of finance include financial planning, which sets your goals and the path to reach them; financial statements, like balance sheets and income statements, that reflect your financial health; financing options, covering debt and equity to raise capital; risk management, aimed at identifying and mitigating financial risks; and budgeting, which helps allocate resources wisely and control spending. Together, these components provide a thorough framework for managing your business finances effectively. What Are the 4 Primary Components of the Financial System? The four primary components of the financial system include financial markets, financial instruments, financial institutions, and financial services. Financial markets serve as platforms for trading assets like stocks and bonds. Financial instruments, including derivatives and currencies, facilitate risk and capital transfer. Financial institutions, such as banks, provide crucial services like lending and investment management. Finally, financial services help individuals and businesses manage resources, ensuring effective financial planning and stability in the economy. Which of the Following Is a Key Component of Business Finance? A key component of business finance is financial planning. It helps you set clear goals and create a roadmap for achieving them, ensuring efficient resource allocation. By analyzing financial statements like balance sheets and income statements, you gain insights into your company’s financial health. Furthermore, effective budgeting and cash flow management are essential for maintaining liquidity, allowing you to meet obligations during investing in future growth opportunities. Conclusion In summary, comprehending the key components of finances in business is essential for your success. Effective financial planning and budgeting, accurate financial statements, and strategic financing decisions lay the foundation for growth. Furthermore, managing cash flow and analyzing profitability help you make informed choices. By integrating risk management strategies and setting clear business goals, you can navigate challenges and seize opportunities. In the end, a strong financial framework empowers your business to thrive in a competitive environment. Image via Google Gemini This article, "What Are Key Components of Finances in Business?" was first published on Small Business Trends View the full article

Grasping the key components of finances in business is crucial for anyone looking to succeed in a competitive environment. Effective financial planning and budgeting help set clear goals and manage resources efficiently. Accurate financial statements, like balance sheets, reveal a company’s health, whereas financial ratios provide insights into profitability and liquidity. As you explore financing options and risk management, you’ll discover how these elements work together to create a solid financial foundation for growth. What’s next? Key Takeaways Effective financial planning involves setting business goals and realistic budgeting to control spending and prioritize investments. Financial statements, including balance sheets, income statements, and cash flow statements, evaluate a company’s financial health. Analyzing financial ratios reveals insights into profitability, liquidity, and leverage, aiding strategic decision-making. Financing options, such as debt and equity, provide necessary capital for growth, each with distinct implications for ownership and repayment. Risk management and resource allocation strategies ensure alignment of financial resources with business goals while addressing potential threats. Financial Planning and Budgeting When you think about running a successful business, effective financial planning and budgeting play a vital role in achieving your goals. Financial planning involves setting clear business goals, like revenue targets or market expansion plans, which guide your budgeting and resource allocation. By creating a realistic budget, you categorize expected revenues and expenses, including fixed and variable costs. This helps control spending and prioritize investments effectively. Financial forecasting is another significant component; it uses historical data and market trends to predict future financial outcomes, ensuring your budgets align with anticipated sales volumes. Regularly monitoring and adjusting your budgets is important for staying on track financially, allowing you to adapt to changing circumstances and market conditions. Financial Statements and Accounting Comprehending financial statements is essential for grasping your business’s financial health, as they include the balance sheet, income statement, and cash flow statement. Accurate accounting practices not merely guarantee compliance with tax regulations but additionally empower you to make informed decisions based on solid financial data. Understanding Financial Statements Financial statements serve as vital tools for evaluating a business’s economic performance and stability. They consist of three primary documents: the balance sheet, income statement, and cash flow statement. The balance sheet provides a snapshot of your company’s assets, liabilities, and equity, showing the relationship between what you own and owe. The income statement summarizes your revenue and expenses over a specific period, allowing you to assess profitability through metrics like gross profit and net income. Meanwhile, the cash flow statement tracks the inflow and outflow of cash from operating, investing, and financing activities, highlighting your liquidity. Regular analysis of these financial statements is important for informed decision-making, ensuring you understand your business’s financial health and operational efficiency. Importance of Accurate Accounting Accurate accounting is fundamental for any business aiming to maintain financial health and make informed decisions. It provides a clear snapshot of your company’s financial status through vital financial statements like the balance sheet, income statement, and cash flow statement. These documents are critical for evaluating financial stability and profitability, which are key components of business financial planning. For the best small businesses, regularly reviewing these statements helps identify areas for financial improvement and effective resource allocation. A solid financial plan for your business plan relies on this accurate data, ensuring you can meet immediate obligations and invest in future growth. In the end, effective finances for small businesses stem from diligent accounting practices that lay the foundation for informed decision-making. Analyzing Financial Ratios When you analyze financial ratios, you’re gaining crucial insights into a company’s overall performance and health. Financial ratios are derived from key financial statements, including the balance sheet and income statement. Profitability ratios, such as profit margin and return on assets, evaluate how effectively a business generates profit from its revenues and assets. Liquidity ratios, like the current ratio and quick ratio, measure a company’s ability to meet short-term obligations, indicating financial stability. Leverage ratios, such as the debt-to-equity ratio, assess the extent of debt financing compared to equity, providing insights into financial risk. Regularly analyzing these financial ratios allows you to identify strengths and weaknesses, guiding your strategic decision-making and financial planning. Financing and Investments In the realm of financing your business, comprehending debt and equity options is fundamental. Debt financing means borrowing money that you’ll need to repay with interest, which can be vital for covering costs or broadening operations. Conversely, equity financing involves selling ownership shares to investors, providing capital without repayment obligations, but it may dilute your ownership stake. Debt Financing Explained Debt financing, whereas a common strategy for businesses seeking growth, involves borrowing funds from external sources that must be repaid with interest. This method allows you to leverage capital without sacrificing ownership. Here are some key aspects to evaluate: Types: Common forms include bank loans, credit lines, and bonds. Repayment: Unlike equity financing, debt financing requires regular repayments, impacting your cash flow. Use: Businesses often utilize debt financing for capital expenditures, operational costs, and expansion projects. Tax Benefits: Interest payments are often tax-deductible, improving your financial management. Balancing borrowing costs with expected returns guarantees financial health and sustainability in your business finance strategy. Equity Financing Overview Equity financing serves as an essential alternative for businesses looking to raise capital by selling shares to investors, effectively inviting them to become partial owners in the company. This type of financing is particularly beneficial for small businesses, as it supports their financial planning without the burden of debt repayment. Nevertheless, it does dilute the ownership percentage of existing shareholders. Investors in equity financing typically seek returns through capital gains or dividends, relying on the company’s future performance. Startups often turn to venture capitalists or angel investors for initial funding. Furthermore, companies may opt for public equity financing through an Initial Public Offering (IPO), which can greatly improve capital for expansion and growth opportunities. Risk Management and Insurance Comprehending risk management and insurance is essential for any business aiming to maintain financial stability. To effectively manage risks and protect your financial health, consider these key steps: Identify Risks: Recognize potential financial threats that could impact your operations. Assess Risks: Evaluate the likelihood and potential impact of each risk on your business. Implement Insurance Coverage: Transfer financial risk through appropriate insurance policies that cover property damage, employee injuries, and operational disruptions. Engage in Contingency Planning: Develop strategies to address risks before they escalate, enhancing your business’s resilience. Regularly reviewing your insurance policies guarantees they align with your evolving risk profile and operational needs. Business Goals and Objectives Comprehending your business goals and objectives is essential for aligning your vision with your mission. By setting measurable targets and milestones, you can effectively allocate resources, ensuring that every financial decision supports your overall strategy. Regularly reviewing these objectives helps you adapt to changing market conditions, keeping your organization agile and focused on its priorities. Vision and Mission Alignment A well-defined vision and mission are crucial for aligning business goals and objectives, as they serve as the foundation for financial decision-making and strategic planning. When you focus on aligning your financial resources with these goals, you improve execution and accountability. Here are key components to contemplate: Clearly define revenue targets and market share aspirations. Establish specific, measurable objectives, like a 20% revenue increase through a new product line. Regularly review and adjust goals based on market trends and performance metrics. Communicate your mission effectively to nurture a shared direction among employees. Measurable Targets and Milestones Establishing measurable targets and milestones is crucial for driving business success since they provide clear direction and benchmarks to assess performance. You should set specific, quantifiable, and time-bound objectives, like aiming for a 15% increase in sales within the next fiscal year or reducing operational costs by 5% within six months. These measurable targets and milestones guide your financial planning for small business owners and help align your financial projections in the business plan. Utilizing Key Performance Indicators (KPIs) allows you to track your progress effectively. Regularly reviewing these milestones guarantees you can adjust strategies based on performance and market changes, enhancing your agility and overall success, allowing you to explore the best business ideas and implement them effectively. Resource Allocation Strategies Effective resource allocation strategies play a crucial role in achieving your business goals and objectives. To optimize your financial resources, consider these key approaches: Align resources with goals: Make sure your budgeting decisions reflect your overarching vision, like revenue targets or market expansion. Prioritize investments: Use historical performance data to guide investment prioritization based on projected returns. Regularly review strategies: Adjust your resource allocation to respond to market trends and operational changes, keeping in line with financial forecasts. Utilize KPIs: Assess the effectiveness of your resource allocation strategies, confirming that financial resources are directed toward the most impactful areas. Budgeting and Financial Forecasting When you think about managing finances in a business, budgeting and financial forecasting play crucial roles in ensuring long-term success. Budgeting involves outlining expected revenues and strategically allocating resources to cover both fixed and variable expenses. This practice instills financial discipline within your organization. Conversely, effective financial forecasting utilizes historical data and market trends to predict future revenues, allowing you to make informed decisions about investments and resource allocation. A realistic budget promotes sustainable growth by accurately estimating costs and avoiding overestimation of revenues, which can lead to financial shortfalls. Regularly comparing projected income to actual expenses during budget reviews helps identify financial gaps, enabling timely adjustments that maintain stability. Furthermore, financial forecasting techniques, like cash flow and profit/loss forecasting, are critical for anticipating cash needs and planning for seasonal fluctuations in business activity, ultimately enhancing your approach to business finance. Cash Flow Management Cash flow management is vital for maintaining the financial health of your business, as it involves closely monitoring the inflow and outflow of cash to guarantee you can meet your immediate obligations. To maintain positive cash flow, consider the following strategies: Prompt invoicing: Send invoices quickly to encourage faster payments. Effective inventory management: Optimize stock levels to reduce excess expenditure. Timing payments: Schedule payments to suppliers in alignment with cash inflows. Use cash flow forecasts: Predict future cash needs based on historical data and anticipated sales trends. Regularly reviewing cash flow statements can likewise help you identify patterns and potential issues. This process allows you to make informed adjustments to your financial strategies, ensuring that your business remains liquid and can cover operational expenses, service debts, and invest in growth opportunities effectively. Capital Expenditure Planning Capital expenditure planning is essential for any business looking to invest in long-term growth and operational efficiency. This process involves strategically allocating funds for long-term investments, like equipment, technology, and facilities, which improve your operational capacity and competitiveness. You’ll need to evaluate significant expenditures against your overall business objectives and potential return on investment. Assessing capital expenditures means analyzing cost-effectiveness, the expected lifespan of the asset, and how well it aligns with future growth strategies. A well-defined capital expenditure plan guarantees you have the necessary funds for critical investments as you balance financial risk and sustainability. Regularly reviewing your capital expenditures helps you adapt to changing market conditions and reallocate resources for peak financial performance. Profitability Analysis Profitability analysis is a critical tool for businesses aiming to improve their financial health and operational effectiveness. By evaluating revenue sources and cost structures, you can pinpoint the most profitable activities and identify areas for improvement. This analysis goes beyond measuring revenue; it assesses cost-effectiveness, enabling you to adapt strategies for maximizing returns and ensuring financial viability. Key profitability metrics to reflect upon include: Profit margin – indicates how much profit you make from sales. Return on assets (ROA) – measures how efficiently you utilize assets to generate profits. Return on equity (ROE) – evaluates the profitability relative to shareholders’ equity. Product line margins – help you analyze which products or services yield the highest returns. Conducting regular profitability assessments allows you to compare your performance against industry averages, informing your strategic planning and decision-making processes. Importance of Financial Planning and Role of AI Effective financial planning sets the foundation for a business’s success by enabling clear goal-setting, resource allocation, and anticipation of future expenses. By incorporating AI technologies into your financial planning, you improve precision and gain deeper insights into your financial data. These insights support more informed strategic decisions, vital in today’s competitive market. AI can analyze historical trends and current market conditions, allowing you to create more accurate financial forecasts and budgets that align with your business objectives. Moreover, the integration of AI facilitates real-time monitoring of financial performance, which enables you to quickly adapt to changing circumstances. This agility is fundamental for maintaining a competitive edge. In addition, leveraging AI streamlines your budgeting processes and improves risk management strategies, nurturing resilience and sustainability in your financial operations. In the end, effective financial planning combined with AI can considerably enhance your business’s overall financial health. Frequently Asked Questions What Are the 5 C’s of Finance? The 5 C’s of finance are crucial for evaluating creditworthiness. Character assesses your reliability and credit history. Capacity looks at your ability to repay loans by analyzing income and debts. Capital represents your investment in the business, showing your commitment. Collateral includes assets you pledge as security, which lenders can claim if you default. Finally, conditions refer to the broader economic environment and terms of the loan, affecting your borrowing potential. What Are the 5 Elements of Finance? The five elements of finance include financial planning, which sets your goals and the path to reach them; financial statements, like balance sheets and income statements, that reflect your financial health; financing options, covering debt and equity to raise capital; risk management, aimed at identifying and mitigating financial risks; and budgeting, which helps allocate resources wisely and control spending. Together, these components provide a thorough framework for managing your business finances effectively. What Are the 4 Primary Components of the Financial System? The four primary components of the financial system include financial markets, financial instruments, financial institutions, and financial services. Financial markets serve as platforms for trading assets like stocks and bonds. Financial instruments, including derivatives and currencies, facilitate risk and capital transfer. Financial institutions, such as banks, provide crucial services like lending and investment management. Finally, financial services help individuals and businesses manage resources, ensuring effective financial planning and stability in the economy. Which of the Following Is a Key Component of Business Finance? A key component of business finance is financial planning. It helps you set clear goals and create a roadmap for achieving them, ensuring efficient resource allocation. By analyzing financial statements like balance sheets and income statements, you gain insights into your company’s financial health. Furthermore, effective budgeting and cash flow management are essential for maintaining liquidity, allowing you to meet obligations during investing in future growth opportunities. Conclusion In summary, comprehending the key components of finances in business is essential for your success. Effective financial planning and budgeting, accurate financial statements, and strategic financing decisions lay the foundation for growth. Furthermore, managing cash flow and analyzing profitability help you make informed choices. By integrating risk management strategies and setting clear business goals, you can navigate challenges and seize opportunities. In the end, a strong financial framework empowers your business to thrive in a competitive environment. Image via Google Gemini This article, "What Are Key Components of Finances in Business?" was first published on Small Business Trends View the full article

Analysts expect Brent crude to trade at about $90 in fourth quarter, up from earlier $80 predictionView the full article

A testament to ExpatFIRE, NomadFIRE, BaristaFIRE, CoastFIRE, and financial creativity on the path to financial independence As I sit on another one way flight to Bangkok, this time from Seattle, I can’t help but smile, excited with both anticipation and appreciation…for what I experienced on my financial journey of the last 9+ years, for what ... Read moreView the full article

As a leadership consultant who helps organizations understand how to apply artistic thinking, one of the lessons I have learned is one of the basic differences between the artistic practice and the business practice—in the former, questioning is the way of life, in the latter answers are the way to go. Artists ask “why” constantly. Why does this exist? Why are things the way they are? Why are we doing it this way? That relentless questioning is how they push past convention—and it’s the engine of genuine creative thinking. Bring that same type of question into most organizations, and something breaks. “Why are we doing it this way?” stops sounding like curiosity. It starts sounding like accusation. When Curiosity Sounds Like Accusation The rookie mistake is thinking that asking “why” is about curiosity. In corporate life, it often lands as judgment. “Why are we doing this?” translates, in most organizational cultures, to: “You’ve made a poor decision. Explain yourself.” Chris Voss, the former FBI lead hostage negotiator, identified this clearly: “why” questions put people on the defensive. They activate the instinct to justify, protect, and counterattack. This isn’t a character flaw in the person being asked. It’s a predictable response to feeling interrogated rather than engaged. Hierarchy amplifies this further. When a senior leader asks “why,” the question carries weight they may not have intended. When a junior leader asks it, they risk being read as challenging authority or undermining a decision already made. The data confirms what most people already feel. According to Gartner, less than half of employees feel they have the safety to challenge the status quo—even among those who feel safe to experiment with new ideas. Challenging is more threatening than experimenting. And nothing triggers that gap faster than a poorly framed question. The intent is curiosity. The impact is conflict. And that gap is where creative thinking goes to die. Much of my work is about bringing artistic thinking and practices into business environments—but making sure they actually land. That translation problem is something I’ve spent years thinking about. The artists I study and work with don’t stop asking hard questions—they’ve just learned, often unconsciously, to deliver them in a way that others can receive. A painter who asks ‘why does this feel flat?’ isn’t accusing anyone. They’re reconstructing the reasoning behind a creative choice so they can understand it, build on it, or redirect it. The question is investigative, not evaluative. From Verdict to Inquiry Business leaders can adopt the same instinct—but deliver it in a format the organization can receive. The shift is simple: replace “why,” which implies a verdict, with “what” and “how” questions that invite reasoning without triggering defense. Here are a few examples; consider the differences. “Why are we still working with this provider?” sounds like a verdict on whoever owns that relationship. “What would it take for us to get better results from this partnership—or to know it’s time to explore other options?” opens a forward-looking conversation without attacking the past. “Why aren’t we pursuing this?” signals frustration. “What would need to be true for this to be worth pursuing?” surfaces real constraints without implying someone dropped the ball. “Why did this happen?” in a post-failure meeting is almost always heard as: whose fault is this? “What is it that brought us into this situation—and what does it tell us about how we make decisions?” shifts the conversation from blame to systemic understanding. The pattern is consistent: “what” and “how” questions reconstruct reasoning rather than assign blame. They’re oriented toward understanding, not evaluation. They leave the other person somewhere to go other than defense. There’s an important caveat. The words alone won’t do it. A “what” question delivered with visible frustration or impatience carries the same charge as “why.” And using these questions performatively—asking “what’s the objective?” while already having decided the objective is wrong—will be recognized immediately. Skilled people can smell the difference between genuine inquiry and rhetorical inquiry. The reframe works because of the intent behind it, not despite it. But the deeper issue isn’t technique. It’s what organizations lose when inquiry becomes too costly. For artists, questioning isn’t a technique. It’s how the work stays alive. A painter who stops asking “why does this feel wrong?” stops growing. A film director who loses the question “what are we trying to make the audience feel?” loses the thread. Business leaders face the exact same questions—they just call it customer experience, product usability, or brand. And they don’t recognize the dependency until the creative thinking has already left the building. When asking “why” consistently produces defensiveness, political friction, or quiet career damage, curiosity doesn’t disappear. It goes underground. And when curiosity goes underground, so does the kind of thinking that leads somewhere genuinely new. Inquiry is essential. Delivery matters. Those two things aren’t in tension—learning to hold both is what it means to apply artistic thinking inside a business. So before your next meeting, consider: what’s the question you’ve been hesitating to ask? And what would it sound like if you asked it in a way that opened the room rather than closed it? View the full article

Managing people is about helping people tap into underutilized reserves and overlooked skills that are indigenous to them, not fixing their habits. The people you manage naturally look to you for answers. They might even ask you to tell them what to do, which creates two major problems: If you tell them what to do, and even if you’re right, they won’t learn anything. If you give clear instructions regarding what to do and things still go wrong, they more than likely will blame you for the resulting mess. This kind of dynamic quietly creates an unhealthy dependency where the employee begins to look to you not just for guidance, but for approval. Anyone who relies on you for everything doesn’t make you a better manager or manager; it limits both their development and yours. That’s why boundaries are not optional—they’re essential. Managing with true empathy means supporting without enabling, guiding without taking over. GENERAL DOS AND DON’TS FOR PRACTICING EMPATHY What You Should Do Start by looking inward to understand how you show up for every conversation. Practicing self-awareness involves observing our thoughts, feelings, and bodily sensations without judgment. This can be challenging, as we often become so caught up in the moment that we fail to notice our internal state. However, by regularly taking a step back and observing ourselves, we can begin to identify patterns and triggers that influence our behavior. Once we become more aware of our emotions and beliefs, we can start to take steps to manage them in a more client-centered way. This may involve challenging our negative thoughts, practicing relaxation techniques, or seeking support from others. By developing greater self-awareness, we can become more mindful of our impact on others and create a more positive and productive environment for client success and personal growth. Here are some tips for cultivating and practicing self-awareness: Pay attention to your physical sensations. What are you feeling in your body? Are you tense, relaxed, or somewhere in between? Identify your emotions. What emotions are you experiencing? Are you feeling happy, sad, angry, or something else? Observe your thoughts. What are you thinking about? Are your thoughts positive, negative, or neutral? Consider your motivations. Why are you doing what you’re doing? What are your goals and intentions? Reflect on your interactions with your clients and others. How are you interacting with others? Are you being respectful, kind, and supportive? If not, you have more work to do. With that said, let’s consider another “do” for accurate empathy. Listen actively & nonjudgmentally. Pay close attention to what they’re telling you with their words and nonverbal cues. Are you reflecting what they’re saying back to them with your own insights, gestures, and facial expressions? It’s ideal to take some time after fully listening to them to think about your response, so you can respond with empathy. Don’t make the mistake of trying to multitask. You’ll miss out on what they mean, even if you don’t miss out on the words they say. Build on what they’re saying, so you can move toward greater understanding and connection. Yes, as a manager, you’re supposed to help your clients based on what you know. However, what you know to be true for you or someone else might not be particularly helpful or true for another client. Revisit and reflect. Regular introspection and reflection are critical on your journey of growth and self-actualization. If you can acknowledge that there’s always room to improve, and you’re willing to do the work to figure out how, then your outcomes will mirror your efforts. What You Shouldn’t Do Don’t ignore or downplay your own biases. Be honest about where you’re coming from and unpack your own baggage before you try to listen and engage in conversation. What are your personal triggers? Are there certain factors at play, like your age, race, gender, culture, personality type, or background that might be potential barriers to understanding? Some limiting beliefs are more deeply rooted than others. Don’t overlook indicators of misplaced empathy. Empathy is about stepping into another person’s experience, seeing the world through their eyes, and connecting with their feelings. Sympathy, on the other hand, means recognizing their pain from the outside and offering compassion without fully entering into their emotional space. Don’t assume that you’ve mastered empathy and have no more work to do. Learning accurate empathy is a lifelong process. As we’ve established, every person and situation is different. You’ll also change a lot throughout your life. It might be easier to show empathy in one season of your life and more difficult in another. If you adopt a learning mindset and get curious about yourself and others, you’ll constantly improve your ability to show accurate empathy. You can then apply these dos and don’ts to work and any other life situation. Excerpted from Leading from the Heart by Dr. D. Ivan Young, published by Post Hill Press. Available April 28, 2026, wherever books are sold. View the full article

Look, we all know the drill. Job hunting is basically a full-time job that pays zero dollars and requires you to be perpetually “passionate” about companies that make, I don’t know, enterprise-grade cloud storage for other cloud storage companies. It’s exhausting. But it’s 2026, and if you’re still copy-pasting your résumé into a hundred different web forms like it’s 2012, you’re doing it wrong. The robots are already screening you, so you might as well hire some robots of your own to level the playing field. Here are five AI-powered job-hunting tools to check out. Teal: Mission control If your job search is currently a mess of saved LinkedIn posts and half-finished Google Sheets, you need Teal. Think of this site as a project management tool, but the project is you drawing a steady paycheck. Its AI résumé builder scans the specific job description you’re eyeing and tells you exactly which keywords you’re missing. Teal is a freemium service. The basic job tracker and résumé builder are free, but if you want the unlimited AI keyword matching and résumé analysis, Teal+ will run you $13 per week, $29 per month, or $79 for three months. JobCopilot: Apply while you sleep Applying to roles is a numbers game, but manual entry is a soul-crushing slog. JobCopilot identifies the roles that actually fit your profile and handles the repetitive form-filling and cover letter tailoring. It uses a personalized agent that learns your preferences so you don’t end up applying for a senior architect role when you’re a junior designer. Plans start at about a buck a day for 20 applications and go up from there. Revarta: Mock interview partner Talking to yourself in the mirror is fine for a pep talk, but it’s terrible for interview prep. Revarta uses voice AI to conduct realistic, job-specific mock interviews. It analyzes your pacing, detects filler words, and critiques the substance of your STAR (situation, task, action, result) method answers. There’s a seven-day free trial. After that, it’s $49 per month, or you can grab a 90-day pass for $129. If you’re a career-long over-preparer, there’s a lifetime access option for $349. PitchMeAI: Network infiltrator The “hidden job market” is real. PitchMeAI is a Chrome extension that finds verified hiring manager emails and uses AI to draft hyper-personalized outreach based on their background and your specific skills. You get three free credits per month to test the waters. For unlimited résumé personalizations and hiring manager discovery, the Pro plan is $22 per month. Jobscan: ATS tamer Most résumés are rejected by an applicant tracking system (ATS) before a human ever sees them. Jobscan reverse engineers the logic of big-name systems such as Greenhouse and Workday to give you a “Match Rate” so you can better tailor your résumé to get through the initial gate. You get five free scans per month. If you’re a high-volume applicant, the monthly plan is $50, or you can go quarterly for $90 for three months. View the full article

It’s five answers to five questions. Here we go… 1. Can a manager lead a Bible study? I am a mid-level supervisor for a state government agency. While I directly supervise several employees, about half of the employees in my section directly report to my manager, “Michael.” He, in turn, reports to “David” and “Jan,” who are the chief and the second-in-command. There are several other sections within our agency that do separate work, and those sections have their own corresponding Michaels, who also report to David and Jan. Hypothetically (I do not have any plans to do this currently), given the fact that I supervise some employees, would it be inappropriate for me to organize a Bible study, book club where we read a religious book, etc., which would occur, say, over lunch? On the one hand, my religion is extremely important to me and my religious beliefs aren’t exactly a secret. (For example, I told a coworker who lost a family member that I would pray for them, because I know they follow the same religion as me.) However, I would not want anyone, especially those I supervise, to think that their participation (or lack thereof) in this sort of activity is being encouraged by me by virtue of my position. That is, I wouldn’t want there to be any pressure for people to participate because someone in management is doing it. Does the fact that I only supervise a handful of people when there are well over 100 employees in our agency, many of whom do entirely separate work from me, make a difference? No, a manager should not organize any kind of religious discussion at work. No matter how sincere you are in saying that people who attend wouldn’t get favorable treatment from you, some of your staff will still worry that they will and/or will feel pressured to participate and/or will find it unfair that people are getting extra networking opportunities with you based on a shared religious practice. And frankly, it would be unfair — that is an extra networking opportunity with you, and it shouldn’t be open only to people willing to talk about religion with you (or be based around religion at all). 2. Can I ask an interviewer about their terrible customer reviews? After being laid off a month ago, I’m in the early stages of interviewing for a learning and development role at a midsize corporation. Unlike my last job, where I was creating customer-facing trainings, this role would entail creating internal trainings on a wide range of topics, which is much more aligned with my long-term career goals. However, when I was researching the company, I discovered that the service the company provides garners VERY low customer ratings (as in, 1.4 stars on Google reviews and Yelp and an enormous pile of Better Business Bureau complaints). While of course I realize that these online reviews don’t reflect the good experiences (there must be some, right?), I was appalled by some of the claims people were making. Right now, I’m leaning toward not moving forward in the interview process, as I’m not desperate for a job (yet!) and I am reluctant to work for a company that seems to have no compunction about scamming its customers. But there is a part of me that is curious as to how they would respond if I asked them about those reviews — I mean, maybe they’re working to address the issues. I have been considering asking something like, “I have seen some online reviews where customers are really unhappy with Company’s services. I know that people who are happy with Company aren’t likely to go online to rave about it, but I was wondering what steps Company takes to address customer feedback and how your customer service reps fit into the vision you have for the L&D team.” Or something along those lines. Is that totally unhinged? Should I just cut and run now? It’s not unhinged at all. That’s a pretty normal question to ask in this context, and they’ve probably been asked it before! They’re aware of their reviews, and they’re aware (some) candidates will be too. Your wording isn’t particularly aggressive or adversarial; it’s reasonable. That doesn’t mean you shouldn’t cut and run. But if you’d otherwise be interested in the job, go to the next interview and ask. Related: asking a company about its bad reputation in an interview 3. Should I tell a former coworker that someone is talking smack about them? I had a job recently where we were a team of seven, including the system admin, Amanda. Her attendance was sporadic, but didn’t really affect the rest of us. I felt like whatever arrangements she had with our team’s leadership were none of our business. The front-end guy, Kevin, and I talked regularly, and he’d often talk junk about her. He’d regularly make comments to me like, “Well, what the hell does Amanda do all day? Why don’t we see her on X date?” It made me uncomfortable because neither of us was Amanda’s supervisor and I felt it was none of our business as it didn’t affect our jobs in the slightest. Now that I’m no longer there, should I warn Amanda that Kevin was talking junk about her? Why or why not? Does it make a difference if I got fired for an unrelated reason? (It was my fault, and I own it.) Are you close with Amanda and do you consider her a friend? If so, sure, you could go ahead and tell her — if you think she needs to know that Kevin is potentially stirring up drama that could affect her. If you’d just be telling her on principle and not because it potentially could have repercussions for her, then no; in that case I’d leave it alone since there’s no point in getting involved when you’re not even there anymore. And if you’re not close with Amanda, then there’s nothing to do. You’re no longer there and that office’s issues don’t need to take up any space in your brain (and it risks coming across as odd and drama-stirring to contact someone you’re not close to after leaving to share something like this). 4. Expected to show up in person even when we don’t need to I’m a teacher in an independent school, and I love my job, for many reasons. However, my colleagues and I get frustrated by the administration’s expectations regarding our working hours. Like essentially all teachers, we work quite a bit outside of school hours; we work before school, after school, evenings, weekends, and on breaks. That’s just part of being a teacher. We are salaried, and sometimes we are required to stay after school or be at school in the evening for meetings, events, Parents’ Nights, graduations, etc. Also part of the job. What’s frustrating is that the administration and HR tell us that we have to be on campus for a particular eight hours a day (even when not teaching) and sometimes even on days with no classes or meetings. As teachers, we are a pretty highly educated bunch; most have advanced degrees and could earn a lot more in other industries. It feels kind of disrespectful of our time and dedication for us to be told that we have to be on campus when nothing is scheduled, and it feels inconsistent with other jobs for salaried professionals. What are your thoughts? Yes, it’s disrespectful of your time, your obvious commitment to the work, and the amount of additional hours you put in over and above a normal work week. It’s also pretty par for the course in teaching, unfortunately, which is still very much a “you need to be in the building to be seen to be working” culture from what I understand. 5. Is it legal for a job ad to set a limit on years of professional experience? I recently read on your site that requiring someone to be a recent graduate could quality as age discrimination. I’ve seen a company director posting a job on LinkedIn (not an ad, a post from their regular profile) saying the job only accepts people with a maximum amount of professional experience of five years. This is in the U.S., so doesn’t this open them up to age discrimination? While they work in an field I’m not interested in, I am nearing 50 with decades of “professional experience” and it really sounds like it is a statement of “old people need not apply.” Yes, it absolutely opens them up to liability for age discrimination. I wouldn’t be surprised if you don’t find that language in the actual HR-approved ad (because they know better) and this guy, in writing his own message, let the truth about who they prefer slip out. The post can a manager lead a Bible study, asking an interviewer about their awful online reviews, and more appeared first on Ask a Manager. View the full article

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