When Business Leaders
Confess That They Don’t Know What They Don’t Know
I have avoided yoga class for a few months because I was intimidated by the fact that most of the participants twist and turn like the performers in Cirque du Soleil®. This morning I decided I would break through my barrier of feeling intimidated and attend the class. As I drove to class, I realized one of the reasons I was willing to step outside of my comfort zone TODAY was because I had attended previous classes with this specific teacher. Alyson Foreacre is the owner of Yoga Den, where I attend. She is an amazing teacher who I trusted to lead me through my own practice of yoga. If all I did was stay in one yoga pose and breath, she would probably encourage me to do more in a very respectful and empathetic way.
My journey with yoga can be compared to how business leaders
feel about financial information. In my years of practice, I have learned that
they are intimidated by financial reports. They are fearful of asking questions,
they don’t want to sound ignorant. Feeling intimidated by yoga class and by
financial information is similar, as in both cases we are keeping ourselves
from something that can be helpful in our overall lives.
My feelings of intimidation with yoga were primarily tied to fear of not keeping up with the class and not knowing how to do all the moves. I didn’t know what I didn’t know about how yoga class is a practice, not a directive. I was so right when I told myself “I got this” with Alyson’s assistance. She is an encouraging teacher who provides alternatives if she knows you need them. She also lovingly encourages you when you need a little guidance. Today she even laid on the floor beside me to show me how to do a certain move. She validated my confidence in her ability to get me through the difficult moves.
I often meet with entrepreneurial business owners, nonprofit
leaders or business professionals in corporations to discuss their pain points.
The most frequent statement I hear during those discussions are “I don’t know
what I don’t know.” I have to admit that,
it wasn’t until I was attacked by the anxiety of doing the right kind of
Downward-Facing Dog and other yoga moves, that I truly have the proper level of
empathy for this statement. I also realized that I should feel honored that my
clients trust in me to share their own fears of financial information.
Being responsible for an entire organization, or even just a section of one, without understanding the financial implications can be frightening. It takes a lot of courage to push through your uncomfortable zone, to accept some uncomfortable space for some time until you understand. Just like my sore muscles right now are telling me it will take a few times before that class feels good. But I know that if I dare to go again and I struggle, Alyson will be there for me.
Is it possible that you don’t know what you don’t know? If you struggle with the following internal dialog, the answer is probably “Yes”:
I do not receive financial statements each month
timely and I do not understand why.
Cash is very tight, and I am not sure we have
enough money to pay the bills and make payroll for the next month or two. I am not sure how to address this.
The new revenue recognition guidance is
required, and I do not know where to begin with implementation.
The organization needs to raise capital and I do
not know what the right type of investor is for our organization.
The corporation needs to divest of a subsidiary
or a line of business and I am not sure how to make that work. What are the
I know we need better systems and process to
improve the customer experience but I do not know where to begin or have the
time to ask various vendors what their system does, or even understand the full
capabilities of our current system.
Barker Associates can help you work through these anxieties and guide you through the process. We are direct communicators who will share with you the reality of the situation, even it is not what you want to hear. Recalling my sore yoga muscles, I will be empathetic to your journey of not knowing what you do not know. Give me a chance to let my experience work for you. https://mindybarkerassociates.com/contact/
If you don’t know where you are going any road will get you there. – Lewis Carroll
Customer experience (CX)
has been a hot topic for the last several years.
Companies have invested in teams to analyze data, customer service issues,
survey results, and they’ve utilized sophisticated tools such as the Net
Promoter Score (NPS) to understand how likely the customer is to share their
experience and promote the company.
Companies have increased
their budgets and resources to understand the habits, needs and desires of customers to create the perfect
journey and ultimate experience for those they serve but, despite all their
efforts, some companies are still falling short, which means lost revenue,
customer churn, and retention issues with their employees.
CX is the sum of all
interactions. According to a 2018 survey by Gartner, nearly 90% of businesses
compete on customer experience alone. Whether your company is transactional or
subscription-based the competition is fierce and if you want to attract, retain
and grow your customer base you have to lead with the end in mind and design
the ultimate experience.
Employee Experience EX
The exclusive focus on the
customer alone has not resulted in the business outcomes companies desire. Perhaps
the focus should be on something a little closer to home…the Employee Experience (EX). After all,
without employees you can’t serve customers, so maybe the old adage “customer
first” should take a back seat for organizations that truly desire to be
transformative in the market place.
Social media and platforms
like Glassdoor and Indeed have created complete transparency so that organizations
can no longer hide from the real-time employee workplace reviews. In this
competitive market, where skilled talent can be scarce,
companies cannot ignore the need to make the Employee Experience a priority.
Like CX, EX is the sum of every day to day
interaction the employee has from the first contact to last. It’s every
touchpoint they have with recruiters, HR, their boss and peers, the software
they use, the processes they must follow; each touchpoint is specific and
The Employee Experience is
a full spectrum of all their experiences and
a well-designed EX should empower employees with the tools and know-how to
serve customers successfully, provide employees control over their professional
growth and development, and create an atmosphere for positive and healthy
collaboration in a well-designed workplace. When EX strategy is developed and correctly
implemented the end result will be happy employees with a commitment to the
company and their job.
According to a 2016 report
by Deloitte University
Press, organizational culture and employee engagement was a top
priority in 2017 and is still a top focus. The report noted that nearly 80% of
executives rated employee experience very important or important, yet only 22%
felt that their companies were excellent at building a differentiated employee
experience. Of those same responders, more than half were either not ready or
only somewhat ready to address the challenge.
In lieu of a true
strategy that focuses on understanding and implementing modern actionable solutions
to promote a positive EX, employers are using perks like casual Friday, free
ice cream and an occasional “bring your pet to work day” to solve the problem. Companies
use these perks in an attempt to build a great culture without any actual
thought to what creates a great culture.
Jacob Morgan, the author of
The Employee Experience Advantage, analyzed over 252 global organizations to
understand the attributes that promote EX and drive employee engagement. The
top 3 companies that excel in this area are no surprise: Facebook, Google, and
Apple. We’ve all heard about some of the amazing perks these companies offer, but according to Morgan, leadership in these
organizations has focused on the bigger picture to yield positive results. They
focused in areas that really matter to
employees: culture, technology, and physical space.
Culture is a nebulous word and people define culture in a variety of ways. Morgan describes culture as a side effect of
working for an organization. Are your employees frustrated and burnt out? Do
they have a voice and an opportunity to present ideas or provide feedback
without fear of backlash? Is there role clarity and a clearly defined path for
growth? If you’ve heard negative chatter,
you likely have a culture problem impacting the EX, which will ultimately
impact the engagement level of your employees and your customers.
Employees should have
access to technology that supports their function. Technology should be a help
not a hindrance to employees. They should be able to work successfully and with
ease with the help of technology, but sadly, many companies have convoluted
systems that don’t sync, resulting in
errors, rework and duplication, all of which are time-consuming, costly and put
not only the employee experience at risk but your company as well. Leaders who
fail to stay current with new technology and upgrade the employee experience
through exposure to more advanced technology risk losing those employees to
companies who do make such investments.
Lastly, a great employee
experience is dependent upon the physical space in which employees work. Is
your office well lit, clean, free of clutter? Do you participate in initiatives
that support a healthy workplace? Are employees situated in an environment that
supports their tasks? For instance, if call centers are placed next to
employees who must utilize quiet focus to get their job done, then you likely are going to have some unhappy and frustrated
Companies that invest in
the development of a focused EX have seen improved results with attracting and
retaining skilled employees who are passionate about the company and the brand,
and play an active role in the ongoing success of the organization. Employees
want and expect to develop their skills as the company grows and adapts to
market demands. Maintaining stale, obsolete skills is the ultimate morale
Although developing a
focused strategy has not been a priority to organizations, of the 252 global
organizations analyzed by Jacob Morgan, only 15 companies, or 6%, have created
a winning employee experience; companies that don’t focus their strategy are at
risk for both employee and customer churn.
Focusing on long term
solutions means taking the time to engage employees to understand their needs,
wants and expectations and work to align tactics with developing a winning experience.
In the end, you get happy, productive employees who bring tremendous value and
drive positive business outcomes.
Are your business outcomes
meeting your expectations?
Where is your focus, the CX
or the EX?
Have you invested in your
Employee Experience or paid it lip service?
Barker Associates will help you review and understand opportunities to enhance your Employee Experience – the work environment, use of technology and company culture. Together we can design and implement employee experience solutions that yield happy employees and positive results. Contact us today at (904) 394-2913 or by email at here.
Founder-itis is a serious condition that occurs when one or more of the founders have remained in their position in an organization for far too long. They have remained physically, mentally and emotionally in a position that is preventing the organization from healthy growth. This condition can occur in small to very large organizations. I have witnessed very strong impacts of Founder-itis at large companies.
The cure for this condition is an emotionally evolved founder-turned-leader to fight against their natural tendency to hang on to what is comfortable, what worked in the early stages of the company to catapult its growth.
Long-term CEOs of successful companies such as Jeff Bezos at Amazon and Howard Schultz at Starbucks have broadened their horizons as the company has grown.
Successful founders who transition to long-term leaders by avoiding Founder-itis have learned these four key qualities.
Deals with ambiguity – When an organization starts out the management team may find themselves working around someone’s dining room table, in a basement or their garage. All the stakeholders communicate and keep each other up to date in real time because they can, literally, reach out and touch. Modern-day conference software works for small teams as they start a business. During this stage, the Chief Executive Officer (CEO) is engaged in very detailed decisions and aware of every move that is made. When it’s time to move effectively upward with a growing organization at some point, the CEO must effectively delegate those detailed tasks to move up to a more strategic role with the organization. Details they knew off the top of their head intuitively will have to be delivered to them in a report that is generated as a result of a quality process. The CEO must learn to deal with some ambiguity and trust the management team is effectively executing their responsibilities. Founder-itis comes in when the CEO will not let go of knowing small details and continues to micromanage staff. This is not an effective use of CEO or staff time.
Hires well and timely – CEOs of high growth companies hire professionals for positions that will challenge them and help develop the strategy as well as successfully execute it. If the CEO lets Founder-itis slip in and only hires puppets who will execute only on what they are told without challenging the status quo, they are holding the organization back from the ability to grow effectively. I recently heard a private equity partner state that is one of the things that holds back the execution of the strategy that fuels growth.
Leads and supports rather than controls and micromanages – If a CEO constantly talks about how easy a certain task is and should be with 1980s style processing; is not open to a suggested change in process, upgrade to a new system or hiring enough staff to complete tasks, they are choking the organization. Two examples I often see of this are processing payroll internally instead of outsourcing and gathering paper receipts and matching against a paper credit card statement. You may think that only happens in smaller companies; however, it has happened in companies that have over $50 million in revenue and operate in most of the fifty states. Such situations persist because one of the Founders thinks that since they had always processed payroll manually when it was their responsibility, it’s just not a big deal.
I also have seen recently where a very young company got hit with an $8,000 fine from the state department of revenue related to incorrectly processing unemployment. This happened as the founder wanted to save money and not incur the payroll processing fee. The fee was taken from their bank account before the receipt of the letter that explained the error and related fee.
Embraces pivots – Founders who believe they can keep doing what got them to their first $1 million in revenue are not pivoting. Founders need to realize their role has changed and it is essential for the strategy of the organization to change. The world is changing so fast – just when an organization is up to date with technology, it is time to change again. Embracing that change and the short term disruption it causes is not easy, but it is essential if the organization is to remain relevant, keep talented and engaged employees and execute sustainable strategy.
Leadership and sustainability go hand-in-hand and truly make a difference in a growing organization. Especially with today’s low unemployment, leaders must recognize part of their strategy is to provide a working environment that will keep top talent engaged. Expecting employees to be happy that they receive a paycheck while you expect them to deal with 1980s technology and stone age processes will lead to high turnover and unnecessary chaos and is a sure symptom of Founder-itis.
My first CFO job was working for a relatively small organization with an administrative assistant who still used a typewriter and refused to have a computer on her desk. She had been with the company since its origination and she knew where everything was located. She had all the contracts, historical Board reports and legal agreements in a file drawer. If you asked her for a document, she could stand up from her desk open one file drawer and hand it to you within 3 minutes tops.
The truth is, in today’s environment, to locate corporate, financial and administrative documents when they are needed can cost organizations unbelievable amounts of money.
Betty did not like me too much when I became CFO, as she thought I was taking a job away from a man. My approach to this and all discrimination I have experienced in my career is to analyze the situation and determine if I could make it better by doing such an awesome job no one could ignore me. If that was not possible, I would have changed my geography.
When she came to some of the first C-level management meetings, she would ask all the men in the room what they wanted to drink and skip over me. I was fortunate to have a wonderful boss who would then follow her out of the room and tell her what I would like. I quickly realized that if I wanted to be successful in this position, I had to figure out how to win Betty over so that I could get to those documents and of course get a cup of coffee at the management meetings.
Who’s Job is it to Manage Corporate Documents?
Times have changed and the days of Betty or any administrative assistant asking if you would like something to drink or logically organizing documents have gone the way of the rotary telephone.
Businesses have, for the most part, eliminated the administrative assistant position as they feel the position is not needed now that professionals have email and all the APPs and tools a computer provides. Even if there is an administrative assistant, the job description generally will not include managing and maintaining corporate documents. I frequently ask when I begin a new job with a company who has this responsibility; C-Level executives of small and large organizations look at me just like I asked them what kind of cheese is on the moon. They have no idea.
Failure to follow a document management process costs your organization in the following ways:
The C-Level executives do not have a clear line of sight to the contract terms they are bound to as they are carrying out their corporate responsibilities. This can lead to losing major customers, noncompliance issues with regulatory bodies and lawsuits that take a tremendous amount of time to litigate.
Creates negative relationships with vendors. I once spoke with a professional who had served as a manufacturer’s rep for an organization for several years. The management of the company changed, and when the manufacturer’s rep came to meet with the new management, they were told: “I looked in the file drawer, there was not a contract, so I am terminating our relationship today.” The manufacturer’s rep had a long-term relationship with the company and its customers in a very closely held industry. Once the new management realized the mistakes they had made, it was too late. Not only did the contract had a 90-day termination notice clause, but the rep was well-loved by many customers. The negative ethical behavior on the part of company management left the rep unwilling to work with that company.
I have seen many a deal fall apart, and the potential investor or buyer walk away, before due diligence is complete. When a company’s documents are distributed in corporate and personal emails, shared corporate drives, personal drives, even the email files of terminated employees, locating them takes valuable time in which the potential buyer can find a lot of other things that interest them, causing them to move on to another deal that is ready to move forward.
Compliance issues are not dealt with on an ongoing basis. As a new CFO at an organization with government contracts, a governmental agency called me to report my organization was out of compliance with the terms of the contract. I pulled the “I am the new kid on the block” card and asked to call them back. It was shocking how long it took to locate the contract after I hung up the phone and even more shocking to learn the terms of the contract to which we had agreed. It was apparent to me that our organization had failed to thoroughly read and understand their contractual obligations. When I appealed to the agency that the terms were not reasonable, the agency basically said, “Well you (meaning the organization) signed the contract and you will be compliant, or we will terminate the contract.” This was not the welcoming present I was looking for.
Who is Your Betty?
If I had a nickel for every time someone sent me a contract they considered final, but was not fully reviewed and executed with all signatures, I would be inviting you to my corporate yacht this weekend. Betty would never have filed an incomplete document in her precious filing system without all the signatures, dates, notary stamps and corporate seals. Honor Betty and her memory, as she now rests in peace in the clouds; put someone you trust in charge of finding and organizing all the corporate documents and maintaining them. Your organization will be better for it.
Barker Associates has the unique ability to work with all sizes of organizations and building infrastructure that matters. Contact us today!
Mindy Barker, Founder & CPA | Jacksonville, FL 32256
(904) 394-2913 or (904) 728-2920 | CFO@MindyBarkerAssociates.com
When you scale you need to have a more analytical approach of targeting and segmentation, but in the beginning, it’s more much qualitative.(Pavel Malos 6/11/18, uxdesign.cc)
Chief Executive Officers, Board Members, and Investors have a fiscal responsibility to ensure an organization can handle planned growth. For-profit business leaders must back up the strategy with the right level of working capital and financial infrastructure. Nonprofit leaders must make certain they have the right financial and fundraising data to analyze and plan effectively.
QuickBooks and other simple financial programs have elevated the confidence of professionals, not trained in accounting, past their competence. These systems allow you to process the basic information easily; however, the non-accountant may not have applied the required strategic thought process to the design of the infrastructure that a trained and experienced financial strategist would apply. Some entities can be run effectively in QuickBooks, and the financial data can be analyzed if the infrastructure is set up properly in the beginning.
All organizations need to have financial information, in proper segments in the General Ledger and make sure there are proper period end procedures. Lack of proper information can lead to performing services or selling product at a loss, non-compliant reporting and a lack of proper cash flow. All of these issues can lead to an untimely end to any organization, for-profit or nonprofit. We have all heard of employees showing up for work one day to find the doors locked and an abrupt end to their job and paycheck. Sometimes these employees learn their employers have not remitted federal income taxes, deducted from their paychecks, to the IRS and they have to pay the taxes again. Leaders of organizations should listen to their financial leaders when they request upgraded systems and more people to account properly for the organization’s financial data.
Leaders who make it a priority to set up, manage and monitor metrics have thought through configuring their reporting infrastructure. Leaders without such foresight run through their day-to-day life worrying about how to make payroll and pay bills, with little to no awareness about which decisions are working and which are not working to scale growth to new levels.
Barker Associates has the unique ability to work with all sizes of organizations and building infrastructure that matters. Contact us today!
Mindy Barker, Founder & CPA | Jacksonville, FL 32256
(904) 394-2913 or (904) 728-2920 | CFO@MindyBarkerAssociates.com
Entrepreneurial growth companies, nonprofit agencies, and governmental organizations are all becoming alike in one way – they are seeking capital to carry forward their mission; however, they also compete for the same pool of high net worth individuals, venture capitalists, and private investors.
From this evolution comes the new challenge for each American – to step up and grasp their responsibility in this new world. To take responsibility, we all must accept the impact of this change: no longer can social and business issues can be addressed separately when funding involves the same pool of resources.
Entrepreneurial growth companies are led by individuals who have left the corporate environment to start a new venture, in part to do good for the community. They are social-minded, routinely volunteer or get involved in nonprofits one way or another. Generally, these entrepreneurs are seeking capital to push forward and provide the product or service they are selling.
On the flip side, nonprofit organizations are beginning to realize that they have to perform as social entrepreneurs, seeking funds from donors as if they were investors. Historically they have sought funds from governmental entities through grants; however, this avenue is becoming increasingly difficult to pursue, as the governmental entities do not have enough money to fund the nonprofits. Governments struggle to hire and maintain employees and provide services to the community so elected officials can remain in good favor and get reelected. The constraint of human and monetary resources leads to a direct hit to the nonprofit world.
For example, nonprofits struggle when they have multiple grant managers within the same governmental organization with a different interpretation of the impact of the grant guidelines. The result is that nonprofits find themselves funding services they expected to be reimbursed from the government, only to learn that they must raise the funds from donors to maintain sustainability because of misinterpretation of the rules.
In both the nonprofit and the entrepreneurial growth companies one of the major funding sources – the high net worth individuals and donors – are more insistent on monitoring outcomes for promised results from their investments. Both types of organizations must have the right infrastructure and process to capture metrics that support the promised result.
If you are a for-profit business professional reading this post, consider serving on a nonprofit Board or Finance committee. Learn more about the differences between for-profit and non-profit financials by participating in my free webinar, Financial Stress or Success, Which is your Nonprofit? then with your new-found knowledge, go out and volunteer.
A CFO has the financial birds-eye-view to develop forward-looking strategic thinking; they understand different cash management policies to help through challenging times; they help prepare a company for both the known and unknown or unexpected financial obligations, using strategies that make sense for the circumstances.
Do you launch bleeding-edge products? If so, you understand it’s not just about product design, sales, and marketing – the CFO is the team member you need to help with the financial aspect of a new product, such as how to price it, is it making money, should we discontinue an old product.
Want to offer new employee benefits? How much will that idea cost over time?
Considering expansion to a new city, or buying up a competitor? Where do you start?
These are areas where the CFO provides financial strategy and leadership throughout the process.
So, what was your question again – why do you need a CFO? That’s why.
Barker Associates, CFO Strategists, works with entrepreneurial growth companies, established corporations and nonprofits to develop positive cash flow and increase the value of your company. We can be contacted at firstname.lastname@example.org or 904.728.2920.
Have you ever prepared for your workout but realized you had not done laundry, so you had no clean clothes or you could not find your tennis shoes? Were you still motivated to go for the run after you did your laundry and found your shoes? Many of us would have lost interest due to the time delay. The same concept applies to a deal. Time kills deals when too much of it passes.
Start with the end in mind. Every business owner should begin building their business with the idea of seeking investors or selling in the future, which means laying your due diligence foundation.
Have at hand the7 due diligence essentials. Investors will ask for them – do you know what they are? Do you have then available at all times, are you solidly prepared for due diligence, are you in a position to secure investment? Email me at email@example.com to get the list.
Then get your due diligence folder ready and keep it current.
As with any business relationship, finding the right fit with your investor is the first step in a long and successful association. This may sound like dating advice, as there are many similarities. For example, identifying potential investors through word-of-mouth or introductions from mutual friends has a better chance of success than selecting the first name your search engine delivers.
But don’t stop there, ask your acquaintance why they recommend this or that one. Understanding your goals is critical with whomever you choose to ask for money.
With potential candidates on your list, think of a few “speed dating” questions to narrow it down. You should know yourself well enough to already know which questions/answers are deal-breakers. What do I mean by that? Let’s say you want a silent investor who is hands-off. Ask how they work with their current clients – hands-on, hands-off or somewhere in the middle.
Other filtering questions might include: who are some of their other clients (besides your referring friend); are they local; in which industries do they specialize? Are they a solo investor or in a group? What type of client do they prefer – are you that client?
By doing your due diligence you have reduced the risk of having to break up with your new investor sooner than planned.
One of your goals in securing an investor should be that once they have reached their goal with your business, they stick around as your #trustedadvisor. You just may need them again when your successful business is ready to rise to the next level of success!
Building trust takes time and an investment from both parties. At the end of a successful pitch to gain an investor, the trust clock with that investor starts ticking. You both must deliver now on the promises made during the courtship; nothing builds trust quicker than doing what you said you would do. And when you follow through, the role of trusted advisor just naturally evolves.
At Mindy Barker & Associates we help entrepreneurial businesses prepare for meeting with investors to pitch their business and obtain funding. If you think you need an investor, but don’t know where to start, contact me at firstname.lastname@example.org to set up a no-obligation 30 minute discovery call to discuss how we can help.
My final word of advice: this process should begin the minute you start a business – not when you need the money. If you are trying to raise money at a time you are getting ready to lose money – you lose leverage.
Countless Americans seem to have an insatiable desire for immediate gratification. This drive for gratification has led to an increase in “on-demand” start-ups, such as Uber, one that is frequently in the news these days. These start-ups address needs such as transportation, food, entertainment and beauty treatments. The short-term euphoria derived from the instant gratification meets a perceived (or even real) need, resulting in billions of dollars being available to fund these companies. Investors have bet the companies will build enough revenue and momentum to go public. With an opportunity to exit through an Initial Public Offering (IPO), they can get a great return on the investment. The IPO market has allowed some unprofitable, high-growth companies to pass through the gates and create hope for others – including Amazon and FitBit.
Prathan Chorruangsak / Shutterstock.com
History often repeats itself – there were many “on-demand” start-ups during the dot.com boom in the 1990s that were unsuccessful, including Webvan, known as poster child of the dot-com “excess” bubble, according to techcrunch.com. My belief is that the initial euphoria of immediate gratification is then seized by the control freak in us who wants to choose our product. For example, when the apple from the grocery delivery shows up with a bruise or we cannot communicate with the office manicurist, the urgency for immediate gratification dies and we drive to the grocery store to pick our own perfect apple or to the spa to get the manicurist of our choosing.
The success of Uber has given the on-demand space an extra surge of enthusiasm and creativity. Many riders frequently use Uber because they appreciate the experience and the price. On the one hand, this is a great business outcome; the fact remains, the company eventually has to make money. Uber continues to struggle with growing regulatory issues that will eat into revenue, create higher operating costs and, ultimately result in higher rates. I recently landed in the New Orleans airport and requested an Uber car at the airport. An immediate and distinctive pop up on my phone alerted me that all Uber rides were $75 from the New Orleans airport due to city ordinances. This is compared to a $15 cab ride to my client’s office. I cancelled my Uber request and went to the cabstand.
The message to entrepreneurs and business owners is that we can learn from history, and basic business fundamentals are clear – you have to make money selling the product. Investors expect a return on investment, and at some point will be unwilling to continue to fund a losing proposition. Keep your books and records current to ensure all your products are making money or, by default, you could be making the decision to fund a loss leader.