Are You Ready to Sell Your Business?
Make Sure You Understand Your Motivation for Selling Your Business
Are you thinking about selling your business?
This simple one-question quiz will help you to better understand your motivations behind this thought. A better understanding of your underlying motivations will help you make the right decision.
Select the answer closest to your actual reason for thinking about selling your business.
A. "I'm selling my business because of the money I will make on the sale".
B. "I'm just tired and it's not fun anymore."
C. "I have too many irons in the fire and can't keep up".
D. "I'm ready to retire from owning my business".
Click Here to Find Out if You are Ready to Sell Your Business
Sunday, October 31, 2004
Wednesday, October 27, 2004
Selling Your Service Business
How to Sell a Business which delivers an Intangible Product or Service such as Accounting Firms, Consultants, Engineering Firms and Training Firms
Many service businesses do not deliver a tangible product that sits on a shelf. They deliver hard to measure products like good advice, training, and planning.
Without forethought, it can be very difficult to show a buyer how they will successfully operate the business. Buyers are rightfully skeptical and want to see what they are buying. They want to know how the cash flow will continue after settlement.
Intangible services and products do deliver measurable return on investment to purchasers. The right advice has made many business owners millions. Intangible services and products have a high value when marketed and delivered properly.
It is just that it is very hard to see intangible goods and services.
Compare this to walking into a card store. The card store has fixtures to hold the cards. The store has inventory everywhere in the form of cards, gifts, balloons, etc. A prospective buyer can see what they are getting from the start. Very little is left to the buyer’s imagination. They can see what they are buying.
This is the riddle to solve to obtain full value from your service business. How do you demonstrate to a purchaser that your product really exists and will continue to sell?
To do this you must develop credibility with the buyer. These transactions take more trust between buyer and seller to overcome the lack of visible assets. You must clearly show the framework you have, namely, how the new owner will operate the business, keep the clients, and provide outstanding results like you have.
More About Selling Your Service Business
How to Sell a Business which delivers an Intangible Product or Service such as Accounting Firms, Consultants, Engineering Firms and Training Firms
Many service businesses do not deliver a tangible product that sits on a shelf. They deliver hard to measure products like good advice, training, and planning.
Without forethought, it can be very difficult to show a buyer how they will successfully operate the business. Buyers are rightfully skeptical and want to see what they are buying. They want to know how the cash flow will continue after settlement.
Intangible services and products do deliver measurable return on investment to purchasers. The right advice has made many business owners millions. Intangible services and products have a high value when marketed and delivered properly.
It is just that it is very hard to see intangible goods and services.
Compare this to walking into a card store. The card store has fixtures to hold the cards. The store has inventory everywhere in the form of cards, gifts, balloons, etc. A prospective buyer can see what they are getting from the start. Very little is left to the buyer’s imagination. They can see what they are buying.
This is the riddle to solve to obtain full value from your service business. How do you demonstrate to a purchaser that your product really exists and will continue to sell?
To do this you must develop credibility with the buyer. These transactions take more trust between buyer and seller to overcome the lack of visible assets. You must clearly show the framework you have, namely, how the new owner will operate the business, keep the clients, and provide outstanding results like you have.
More About Selling Your Service Business
Tuesday, September 21, 2004
Are You Running Your Business Like The Bush and Kerry Presidential Campaigns
As a frequent newspaper reader and infrequent TV news viewer, I find the current Bush and Kerry presidential campaigns very frustrating. The candidates and the press seem completely wrapped up with what happened 20 years ago. They seem to have little interest in creating a vision of what might happen in the next 4 years.
Do you run your personal life and your business always looking at the past? If so you need to turn your head around and start looking in front of you.
Needless to say we have all made mistakes. Most of the very successful people we know have made more misstates than many less successful people. They just happened to try more things and push on until they won.
As Napoleon Hill said “You are only defeated when you think you are.”
Learn from your mistakes. Learn from those instances that have hurt you. But, do not dwell upon it. Move on to the future. Act in the present and move to the future. Leave your past behind.
Hopefully before election day the candidates will leave the past behind and give us a vision of the future. A future we Americans will be proud to share together.
And while you are thinking of the future, think about buying, selling or improving a closely held business with www.successfulexits.com
As a frequent newspaper reader and infrequent TV news viewer, I find the current Bush and Kerry presidential campaigns very frustrating. The candidates and the press seem completely wrapped up with what happened 20 years ago. They seem to have little interest in creating a vision of what might happen in the next 4 years.
Do you run your personal life and your business always looking at the past? If so you need to turn your head around and start looking in front of you.
Needless to say we have all made mistakes. Most of the very successful people we know have made more misstates than many less successful people. They just happened to try more things and push on until they won.
As Napoleon Hill said “You are only defeated when you think you are.”
Learn from your mistakes. Learn from those instances that have hurt you. But, do not dwell upon it. Move on to the future. Act in the present and move to the future. Leave your past behind.
Hopefully before election day the candidates will leave the past behind and give us a vision of the future. A future we Americans will be proud to share together.
And while you are thinking of the future, think about buying, selling or improving a closely held business with www.successfulexits.com
Tuesday, September 14, 2004
What is the Difference Between Price and Cost?
Brian Tracy stated, "The price is what it takes to purchase the item. The cost is the amount the customer eventually pays. They are not the same."
Do you really investigate the cost of what you are buying?
A screaming example of this is used boats. The price of the boat is nothing compared to the total cost to run and maintain the boat. The cost includes docking it, maintaining the engine, painting the bottom, etc. The total cost to use the boat all summer is often several times the initial price of the boat.
This certainly applies to business. It is fairly easy to apply this principal to equipment and asset purchases. Trucks, machinery, and other fixed assets are routinely purchased based on both the initial price and the cost to operate. When you combine initial price and the cost to operate you have calculated Brian Tracy's cost.
Why does this analysis seem to fall apart when services are being purchased?
For instance you hire an attorney because he costs $175 an hour instead of $250. Certainly a prudent move if they are of equal talent. You have an offer to settle a lawsuit before litigating for $30,000. Based on your attorney's opinion you litigate. You loose the case and receive a $150,000 judgment which you settle for $90,000. What did that attorney cost you?
Granted it can be very difficult to figure out the true cost of services in advance. Business owners are optimists. That is why you have the courage to take business risks.
Yet all owners must spend some time focusing on the downside. Errors by professional service providers will cost you many times their fees. If you run this risk then you must carefully select your providers. Always keep in mind how small their fees are compared to the damage they can do.
Brian Tracy stated, "The price is what it takes to purchase the item. The cost is the amount the customer eventually pays. They are not the same."
Do you really investigate the cost of what you are buying?
A screaming example of this is used boats. The price of the boat is nothing compared to the total cost to run and maintain the boat. The cost includes docking it, maintaining the engine, painting the bottom, etc. The total cost to use the boat all summer is often several times the initial price of the boat.
This certainly applies to business. It is fairly easy to apply this principal to equipment and asset purchases. Trucks, machinery, and other fixed assets are routinely purchased based on both the initial price and the cost to operate. When you combine initial price and the cost to operate you have calculated Brian Tracy's cost.
Why does this analysis seem to fall apart when services are being purchased?
For instance you hire an attorney because he costs $175 an hour instead of $250. Certainly a prudent move if they are of equal talent. You have an offer to settle a lawsuit before litigating for $30,000. Based on your attorney's opinion you litigate. You loose the case and receive a $150,000 judgment which you settle for $90,000. What did that attorney cost you?
Granted it can be very difficult to figure out the true cost of services in advance. Business owners are optimists. That is why you have the courage to take business risks.
Yet all owners must spend some time focusing on the downside. Errors by professional service providers will cost you many times their fees. If you run this risk then you must carefully select your providers. Always keep in mind how small their fees are compared to the damage they can do.
Friday, September 03, 2004
Grow like a Tree
Trees are an amazing form of life. They relentlessly grow upward into the air. They do not make noise. They are quite. They do not hunt. They do not roam. They know that they start with everything that they need to succeed.
Trees just focus on one thing, growing up to the light. They build a root system to keep them attached to the ground, to suck up the nutrients and water needed to grow even higher. Grounded, never forgetting their source.
Because of this focus, they grow tall. They grow large. An oak tree in a field is a powerful sight. Standing tall, perhaps shading close to an acre of ground with its wide limbs that slowly and methodically branch into soft green leaves.
A tree without focus is a bush. Bushes are small and low to the ground. They branch out every which way. They do not try to grow up. Their limbs do not have an apparent plan or goal. Here, there, everywhere.
Be a tree. Find your source. Find your light. Grow to it.
Trees are an amazing form of life. They relentlessly grow upward into the air. They do not make noise. They are quite. They do not hunt. They do not roam. They know that they start with everything that they need to succeed.
Trees just focus on one thing, growing up to the light. They build a root system to keep them attached to the ground, to suck up the nutrients and water needed to grow even higher. Grounded, never forgetting their source.
Because of this focus, they grow tall. They grow large. An oak tree in a field is a powerful sight. Standing tall, perhaps shading close to an acre of ground with its wide limbs that slowly and methodically branch into soft green leaves.
A tree without focus is a bush. Bushes are small and low to the ground. They branch out every which way. They do not try to grow up. Their limbs do not have an apparent plan or goal. Here, there, everywhere.
Be a tree. Find your source. Find your light. Grow to it.
Tuesday, August 24, 2004
You Don't Have to Be Stuck
Are you stuck in a rut? You've read, thought and even tried to act on getting over to work you would love. Yet you just can't find it
Or perhaps you are not sure what you really want to do?
You can find what you were meant to do.
One way is to read books. You can start with classics like the Bible or maybe the I Chang, Book of Changes is more your style. Read, reflect, read, reflect. More direct is a book like What Color is Your Parachute? This is the epic about how to select a career. There are many other books have been written to help you decide what is right for you.
Another way is to take tests. There are many versions of the Myers Briggs and other tests that help you determine your personality type. Do a look-up on Google and select one that suits you. From there you can get overlays to determine what career's might be best for you.
A third way is to work with a coach, minister, or other advisor. A coach we like can be reached at www.terryschaefer.com . By working directly with someone you can speed up the process and get better results.
You can find where you belong. You just need to get started.
Are you stuck in a rut? You've read, thought and even tried to act on getting over to work you would love. Yet you just can't find it
Or perhaps you are not sure what you really want to do?
You can find what you were meant to do.
One way is to read books. You can start with classics like the Bible or maybe the I Chang, Book of Changes is more your style. Read, reflect, read, reflect. More direct is a book like What Color is Your Parachute? This is the epic about how to select a career. There are many other books have been written to help you decide what is right for you.
Another way is to take tests. There are many versions of the Myers Briggs and other tests that help you determine your personality type. Do a look-up on Google and select one that suits you. From there you can get overlays to determine what career's might be best for you.
A third way is to work with a coach, minister, or other advisor. A coach we like can be reached at www.terryschaefer.com . By working directly with someone you can speed up the process and get better results.
You can find where you belong. You just need to get started.
Build on Your Strengths
Janet was sick and tired of trying to "get" bookkeeping. She was originally hired to handle customer service calls and service delivery. Then someone decided that all employees needed to be cross trained. In Janet's opinion cross training is one thing, making her a bookkeeper was entirely another.
Margo the bookkeeper was even more perplexed trying to handle calls from all those complaining customers. She didn't even like happy customers. She liked books.
Does your company make people do work they are not suited for?
The answer is probably yes.
Maybe this is showing up as the phenomenal sales person who always seems bewildered now that he has been promoted to sales manager. Perhaps it is the copy clerk who just does not want to learn new skills but he can copy and correlate at an exceptional pace.
This happens because we have been told almost from birth that we must work on our weaknesses. A certain level of balance is necessary but we should not spend too much time on our weaknesses.
To spend too much time on our weaknesses is like an Olympic athlete, say a tall beach volleyball player switching positions with a gymnast just to become more well rounded. They would not do this so why do you insist on doing it?
Focus on your strengths. If you are a gymnast, practice being the best you can be at gymnastics. Don't worry about what the volleyball players are doing.
Janet was sick and tired of trying to "get" bookkeeping. She was originally hired to handle customer service calls and service delivery. Then someone decided that all employees needed to be cross trained. In Janet's opinion cross training is one thing, making her a bookkeeper was entirely another.
Margo the bookkeeper was even more perplexed trying to handle calls from all those complaining customers. She didn't even like happy customers. She liked books.
Does your company make people do work they are not suited for?
The answer is probably yes.
Maybe this is showing up as the phenomenal sales person who always seems bewildered now that he has been promoted to sales manager. Perhaps it is the copy clerk who just does not want to learn new skills but he can copy and correlate at an exceptional pace.
This happens because we have been told almost from birth that we must work on our weaknesses. A certain level of balance is necessary but we should not spend too much time on our weaknesses.
To spend too much time on our weaknesses is like an Olympic athlete, say a tall beach volleyball player switching positions with a gymnast just to become more well rounded. They would not do this so why do you insist on doing it?
Focus on your strengths. If you are a gymnast, practice being the best you can be at gymnastics. Don't worry about what the volleyball players are doing.
Monday, August 16, 2004
Do You Love What You Do?
Most people spend most of their lives miserable. Most people will spend hours rationalizing why the spend their days doing things they do not like to do. "I have to pay for the kids to go to collage." "I don't have enough capital." "I am afraid...."
When you started your business, was that your frame of mind?
No. When you started your business you were ready to tackle anything. Get it done. Move mountains. Where did those thoughts go?
I bet they are still in you. I bet they are festering and brewing and boiling.
Find those feelings. Find what gives you those feelings today. Find how you can move towards those feelings as completely as possible.
If you still love your business think quietly about how you can improve it. Find a mastermind group and think with them.
If you don't love your business start to plan how you can move on. Maybe you should hire a manager. Maybe you would like to focus your energies on a new part of the business. Maybe you should look at exit strategies.
Whatever it is, don't spend 20 years in a rut. Move to the things you love.
Visit Successfulexits.com
Most people spend most of their lives miserable. Most people will spend hours rationalizing why the spend their days doing things they do not like to do. "I have to pay for the kids to go to collage." "I don't have enough capital." "I am afraid...."
When you started your business, was that your frame of mind?
No. When you started your business you were ready to tackle anything. Get it done. Move mountains. Where did those thoughts go?
I bet they are still in you. I bet they are festering and brewing and boiling.
Find those feelings. Find what gives you those feelings today. Find how you can move towards those feelings as completely as possible.
If you still love your business think quietly about how you can improve it. Find a mastermind group and think with them.
If you don't love your business start to plan how you can move on. Maybe you should hire a manager. Maybe you would like to focus your energies on a new part of the business. Maybe you should look at exit strategies.
Whatever it is, don't spend 20 years in a rut. Move to the things you love.
Visit Successfulexits.com
Tuesday, August 10, 2004
Getting Your Loan to Buy a Business Approved
Most loans for the purchase of a business get rejected because they are not packaged correctly, presented to the proper lender, or properly negotiated with the bank loan officer. Loans to buy a business take special care and handling.
Packaging a loan correctly:
To package a loan correctly you must understand what type of loan you are asking for. A loan supported by a business' cash flow will be packaged differently that a loan supported by a ton of collateral.
In all instances make sure your package demonstrates how the business is going to generate the cash flow to pay back the loan. Make sure you can back up every statement with verifiable proof. This is why it is often hard to finance new businesses. How do you prove something out of thin air. Existing businesses have existing cash flow to work with. If the cash flow does not completely justify the loan look into ways to improve the cash flow. Click here to learn more...
Presenting your loan to the proper lender is best done by talking to a cross section of lenders to find the right one. Rejection is just part of the process. If you are unsure who is the best type of lender select a few national banks and local banks. This is like dating in that you only need one. Different banks will take different risks. The two ways to find the right bank is to pay a broker who knows your market or make to many calls and face rejection yourself.
The best way to negotiate your loan package through to acceptance is to always talk to your loan officer with an open mind. Ask questions and be willing to make changes in your package and loan request. Remember the goal is to get the loan that will allow you to move forward. The bank is right until you have a loan closing.
To Learn more visit Click Here to Visit Successful Exits.
Most loans for the purchase of a business get rejected because they are not packaged correctly, presented to the proper lender, or properly negotiated with the bank loan officer. Loans to buy a business take special care and handling.
Packaging a loan correctly:
To package a loan correctly you must understand what type of loan you are asking for. A loan supported by a business' cash flow will be packaged differently that a loan supported by a ton of collateral.
In all instances make sure your package demonstrates how the business is going to generate the cash flow to pay back the loan. Make sure you can back up every statement with verifiable proof. This is why it is often hard to finance new businesses. How do you prove something out of thin air. Existing businesses have existing cash flow to work with. If the cash flow does not completely justify the loan look into ways to improve the cash flow. Click here to learn more...
Presenting your loan to the proper lender is best done by talking to a cross section of lenders to find the right one. Rejection is just part of the process. If you are unsure who is the best type of lender select a few national banks and local banks. This is like dating in that you only need one. Different banks will take different risks. The two ways to find the right bank is to pay a broker who knows your market or make to many calls and face rejection yourself.
The best way to negotiate your loan package through to acceptance is to always talk to your loan officer with an open mind. Ask questions and be willing to make changes in your package and loan request. Remember the goal is to get the loan that will allow you to move forward. The bank is right until you have a loan closing.
To Learn more visit Click Here to Visit Successful Exits.
Thursday, August 05, 2004
Is Your Heart In Your Work
Has getting up in the morning and going to work become drudgery? Is Monday the worst day of the week? Is your heart still in your work?
Whether you are a business owner, independent contractor, or employee the issues are the same. If you have lost the motivation in your current career choice it may be time to perform a careful self examination and then look for alternatives.
Self examination can best be performed with a combination of quite thought and reflection, psychological testing, and honest discussion with close confidants and professionals.
Everyone gets tired. Sometimes you get stuck in a rut. This does not always mean it is time to move on. Sometimes small changes can get you started again.
If changes to your current routine don't break you out of your doldrums then it may be time to look at more radical changes.
Has getting up in the morning and going to work become drudgery? Is Monday the worst day of the week? Is your heart still in your work?
Whether you are a business owner, independent contractor, or employee the issues are the same. If you have lost the motivation in your current career choice it may be time to perform a careful self examination and then look for alternatives.
Self examination can best be performed with a combination of quite thought and reflection, psychological testing, and honest discussion with close confidants and professionals.
Everyone gets tired. Sometimes you get stuck in a rut. This does not always mean it is time to move on. Sometimes small changes can get you started again.
If changes to your current routine don't break you out of your doldrums then it may be time to look at more radical changes.
Friday, July 30, 2004
Getting the Most from Your Employees
One day she could not take it anymore and her mind shut down. Laura slowly had had the life sapped out of her. She could not let go of any detail. Everything was important and had to be reviewed by her. Her loyal employees tried to help but were never given the opportunity.
There are many Lauras out there. They are inadvertently draining their life strength and limiting their horizons. They need to delegate.
The right way to delegate.
The right way to delegate is to define a task and to define what success is for the task. Then you need to provide a way to measure the success. This does not have to be a huge manual. A few lines, a page is often enough.
For instance, we work with telemarketers. We have a defined script, a minimum number of calls per hour, which varies with the size company being called based on past experience and a minimum number of appointments to be set which also varies with the size company being called.
The marketer can vary from the script but must write down what they are doing and must continue to track dials and appointments. This way if they find an improvement it is captured. If they have worse results they quickly can see it and go back to the original script.
One final thought, many people are never going to make it as your employee. Once you sense that let them go. The quicker the better.
The keys to delegating are:
Use this system to start delegating today and find the time to improve your business and enjoy your life. For more see the article, 7 Principles to Improve You Business Sales Price
One day she could not take it anymore and her mind shut down. Laura slowly had had the life sapped out of her. She could not let go of any detail. Everything was important and had to be reviewed by her. Her loyal employees tried to help but were never given the opportunity.
There are many Lauras out there. They are inadvertently draining their life strength and limiting their horizons. They need to delegate.
The right way to delegate.
The right way to delegate is to define a task and to define what success is for the task. Then you need to provide a way to measure the success. This does not have to be a huge manual. A few lines, a page is often enough.
For instance, we work with telemarketers. We have a defined script, a minimum number of calls per hour, which varies with the size company being called based on past experience and a minimum number of appointments to be set which also varies with the size company being called.
The marketer can vary from the script but must write down what they are doing and must continue to track dials and appointments. This way if they find an improvement it is captured. If they have worse results they quickly can see it and go back to the original script.
One final thought, many people are never going to make it as your employee. Once you sense that let them go. The quicker the better.
The keys to delegating are:
1. Define the job.
2. Define how it is to be done (the system).
3. Define how it will be measured.
4. Measure at a reasonable interval. Make sure you do this step.
5. Track test changes in procedure and implement improvements.
6. Recognize that some people are not going to work in your system and let them go.
Use this system to start delegating today and find the time to improve your business and enjoy your life. For more see the article, 7 Principles to Improve You Business Sales Price
Monday, July 19, 2004
Personal Efficiency
You don't have enough time in the day to do everything on your list. You run from one item to the next. And like a machine that does not have clean oil you slowly heat up and become less and less efficient. Are you running more and accomplishing less? Most of us are.
Just like the mechanic needs to turn the machine off and change the oil occasionally you need to stop and change your oil. How does one stop and change their oil?
Human Oil Changes
You are saying, "How does jamming one more thing into my day help clear it?"
Like the machine that runs more efficiently with fresh oil, you will run more efficiently with a fresh mind. It just is.
Often after reflecting the first thing you might want to do is make a list of priorities for the day. Periodically list how you can make things more efficient by combining tasks or eliminating ones that are just habits and no longer needed. While this is an important benefit of quite, try not to spend all your quite time reflecting on these obligations.
Do not become frustrated is you have setbacks and days where you still shut down. Life is full of ups and downs. Remember it is the journey not the destination.
You don't have enough time in the day to do everything on your list. You run from one item to the next. And like a machine that does not have clean oil you slowly heat up and become less and less efficient. Are you running more and accomplishing less? Most of us are.
Just like the mechanic needs to turn the machine off and change the oil occasionally you need to stop and change your oil. How does one stop and change their oil?
Human Oil Changes
1. Make a habit to take a 30 minute walk. During the walk take the time to actually look at the beauty around you. Look at the sky, the beautiful clouds, the sunset etc. Look at the trees and their unusual shapes. Listen to the sounds. Smell the air.
2. Spend 15 to 30 minutes in quite reflection each day. The morning usually works best for this before the rush of the day. Just sit still (even learning to do that is a chore at first) and let your mind wonder. In time try to still your mind for a few seconds at a time.
3. Read the Bible, the Koran, other book that helps your spirit and allows you to clear your mind. Again 30 minutes a day can begin to change your world.
You are saying, "How does jamming one more thing into my day help clear it?"
Like the machine that runs more efficiently with fresh oil, you will run more efficiently with a fresh mind. It just is.
Often after reflecting the first thing you might want to do is make a list of priorities for the day. Periodically list how you can make things more efficient by combining tasks or eliminating ones that are just habits and no longer needed. While this is an important benefit of quite, try not to spend all your quite time reflecting on these obligations.
Do not become frustrated is you have setbacks and days where you still shut down. Life is full of ups and downs. Remember it is the journey not the destination.
Saturday, July 10, 2004
Leadership
Leadership is not friendship. Leadership is showing people how to do more than they would or could on their own. It is showing them how to stretch and increase their strengths and reduce and bypass their weaknesses.
Leadership is not making people feel good all the time. People like to be pushed to improve themselves. A good leader helps people get out of their boxes and grow. This often takes a good kick in the butt. You only have to look at great sports coaches to see what properly placed disappointment and anger can do.
A good leader knows when it is time to celebrate. For a group to develop real heart and real stick-to-it-ness when the pressure is on there needs to be celebration of victories. People must know the feeling joy and experience winning in order to keep the passion when times are hard.
Leadership is providing a framework where people with different talents can come together to create more than they would alone. Napoleon Hill's mastermind is a proven concept. Multiple minds will create much more effective solutions than one. Shared responsibility for implementation allows the most effective person to perform each task.
Pushing, rewarding, and finding the right mix of talent are the true talents of a leader.
Leadership is not friendship. Leadership is showing people how to do more than they would or could on their own. It is showing them how to stretch and increase their strengths and reduce and bypass their weaknesses.
Leadership is not making people feel good all the time. People like to be pushed to improve themselves. A good leader helps people get out of their boxes and grow. This often takes a good kick in the butt. You only have to look at great sports coaches to see what properly placed disappointment and anger can do.
A good leader knows when it is time to celebrate. For a group to develop real heart and real stick-to-it-ness when the pressure is on there needs to be celebration of victories. People must know the feeling joy and experience winning in order to keep the passion when times are hard.
Leadership is providing a framework where people with different talents can come together to create more than they would alone. Napoleon Hill's mastermind is a proven concept. Multiple minds will create much more effective solutions than one. Shared responsibility for implementation allows the most effective person to perform each task.
Pushing, rewarding, and finding the right mix of talent are the true talents of a leader.
Friday, July 02, 2004
Find Your Magic Bus
Everyone wants a magic bus. A magic bus is a wonderful vehicle where the riders are constantly happy. A magic bus may be a little worn and even tired but it is loved by all. Riders always return to the magic bus and when they do they bring more of their friends.
Is your business a Magic Bus?
Probably not. Magic Buses can exist in any industry but they always have certain traits in common.
Magic Busses have personality
Systemization has been allowed to take the personality out of people and businesses. People, that means your customers are looking for personality. They want to feel they know you. They want to get a piece of you when they do business with you. The best way to give it to them is to provide personality. Be different. Big hair. In your face copywriting. Quirky decorating. There are many ways to create and maintain personality. Seek it out and find it, and once you find it, keep it no matter how much you grow.
Magic Busses celebrate their riders
Being on the bus is about the experience. The experience is enhanced by the celebration of the riders or customers. On a magic bus riders feel encouraged to be themselves. Customers are encouraged to communicate with one another to create a spirit of unity and a zone of protection allowing further celebration and further self definition.
While there are a few examples of magic busses that become hugely mass market most are niche players and all started that way. One of the keys to celebrating customers is to allow them to be unique. The more this common uniqueness comes out the stronger the loyalty and the better the bus.
Magic Busses are not all things to all people.
The opposite side of providing a specific experience is that you will not satisfy all people. Get over it. As P. T. Barnum said, "You can't please everyone all the time."
Magic Busses provide consistency
While always maintaining and celebrating the quirky feel that makes you unique you must develop and maintain systems to provide a consistent experience. Humans are creatures of habit and you like everyone else want to know what to expect.
Magic Busses are highly profitable
A Magic Bus put in the hands of an organized businessperson will be highly profitable. Combine a unique market niche with a system that produces consistent experiences and results and you have built the better mousetrap.
Build a Magic Bus
When building your business look at how you can build a Magic Bus. It can be done. When you start thinking about your business, or your business plan think about how to make it into a magic bus. A little magic works well for all of us.
Everyone wants a magic bus. A magic bus is a wonderful vehicle where the riders are constantly happy. A magic bus may be a little worn and even tired but it is loved by all. Riders always return to the magic bus and when they do they bring more of their friends.
Is your business a Magic Bus?
Probably not. Magic Buses can exist in any industry but they always have certain traits in common.
Magic Busses have personality
Systemization has been allowed to take the personality out of people and businesses. People, that means your customers are looking for personality. They want to feel they know you. They want to get a piece of you when they do business with you. The best way to give it to them is to provide personality. Be different. Big hair. In your face copywriting. Quirky decorating. There are many ways to create and maintain personality. Seek it out and find it, and once you find it, keep it no matter how much you grow.
Magic Busses celebrate their riders
Being on the bus is about the experience. The experience is enhanced by the celebration of the riders or customers. On a magic bus riders feel encouraged to be themselves. Customers are encouraged to communicate with one another to create a spirit of unity and a zone of protection allowing further celebration and further self definition.
While there are a few examples of magic busses that become hugely mass market most are niche players and all started that way. One of the keys to celebrating customers is to allow them to be unique. The more this common uniqueness comes out the stronger the loyalty and the better the bus.
Magic Busses are not all things to all people.
The opposite side of providing a specific experience is that you will not satisfy all people. Get over it. As P. T. Barnum said, "You can't please everyone all the time."
Magic Busses provide consistency
While always maintaining and celebrating the quirky feel that makes you unique you must develop and maintain systems to provide a consistent experience. Humans are creatures of habit and you like everyone else want to know what to expect.
Magic Busses are highly profitable
A Magic Bus put in the hands of an organized businessperson will be highly profitable. Combine a unique market niche with a system that produces consistent experiences and results and you have built the better mousetrap.
Build a Magic Bus
When building your business look at how you can build a Magic Bus. It can be done. When you start thinking about your business, or your business plan think about how to make it into a magic bus. A little magic works well for all of us.
Wednesday, June 30, 2004
Get a Direction instead of a Plan
Current wisdom has it that you need a plan to succeed. I would challenge that assessment. What is a plan? A plan is an attempt to mold the future from today's knowledge. But everyday our knowledge grows, the future changes. Quickly, updating the plan so it is current, can become more time consuming than actually living the plan.
I would argue that you should have a Direction, not a plan. A direction is a set of goals defined in time. A direction is reviewed daily so it remains fresh in your mind. Big organizations would have many directions for different departments, employees, and so on.
Each day each person makes sure they perform some tasks necessary to move in the right direction. They do this by listing items that make sense based on the world that day. Then try to complete them as rapidly as possible. This avoids excessive planning only to find out base assumptions are not true and years of man-hours needs to be scrapped.
The problem with plans is they become ridged. The plan needs to be followed even when people are starting to realize that it does not make sense. Direction is a guidepost. Direction is like a road sign that points the way. You think carefully when you decide your direction but you trust that the steps will become clear as you proceed.
Direction requires trust. It requires trust that everyone can perform at a level requiring thought. It requires trust that people generally find the way on their own. It requires trust that everyone has basic creativity. Direction is the highest form of delegation to the lowest level. Now the people doing the work and determining the steps in real time.
Try using Direction is place of your ridged plan. You will be pleasantly surprised.
Current wisdom has it that you need a plan to succeed. I would challenge that assessment. What is a plan? A plan is an attempt to mold the future from today's knowledge. But everyday our knowledge grows, the future changes. Quickly, updating the plan so it is current, can become more time consuming than actually living the plan.
I would argue that you should have a Direction, not a plan. A direction is a set of goals defined in time. A direction is reviewed daily so it remains fresh in your mind. Big organizations would have many directions for different departments, employees, and so on.
Each day each person makes sure they perform some tasks necessary to move in the right direction. They do this by listing items that make sense based on the world that day. Then try to complete them as rapidly as possible. This avoids excessive planning only to find out base assumptions are not true and years of man-hours needs to be scrapped.
The problem with plans is they become ridged. The plan needs to be followed even when people are starting to realize that it does not make sense. Direction is a guidepost. Direction is like a road sign that points the way. You think carefully when you decide your direction but you trust that the steps will become clear as you proceed.
Direction requires trust. It requires trust that everyone can perform at a level requiring thought. It requires trust that people generally find the way on their own. It requires trust that everyone has basic creativity. Direction is the highest form of delegation to the lowest level. Now the people doing the work and determining the steps in real time.
Try using Direction is place of your ridged plan. You will be pleasantly surprised.
Saturday, June 26, 2004
Bury the Past
Bury your past. Your past is draped over you like the memories of the dead. The biggest difference is we generally remember the good about the dead and we generally remember the unfortunate about our past.
These memories send messages, you can't do it, it will not work, you tried it before remember.
These messages and memories are false. Today is a new day. Today your attempts will succeed. Today you can do it, it will work. And if it doesn't, try again tomorrow with an open heart and open head.
In the Jewish religion it is customary for the family of the deceased to shovel the dirt on the coffin up to the corners of the box. That and many other customs such as sitting Shiva where family and friends stay around for a week after the death are to help people begin to recover.
You need to develop rituals to bury your past whenever it creeps up again. These may be repeating positive words, talking a walk, reading the bible or other meaningful book.
We are all here to succeed and win. Don't let your past get in the way of succeeding in the future.
You deserve to win. You will win once your thoughts remain on the good you can accomplish today.
Bury your past. Your past is draped over you like the memories of the dead. The biggest difference is we generally remember the good about the dead and we generally remember the unfortunate about our past.
These memories send messages, you can't do it, it will not work, you tried it before remember.
These messages and memories are false. Today is a new day. Today your attempts will succeed. Today you can do it, it will work. And if it doesn't, try again tomorrow with an open heart and open head.
In the Jewish religion it is customary for the family of the deceased to shovel the dirt on the coffin up to the corners of the box. That and many other customs such as sitting Shiva where family and friends stay around for a week after the death are to help people begin to recover.
You need to develop rituals to bury your past whenever it creeps up again. These may be repeating positive words, talking a walk, reading the bible or other meaningful book.
We are all here to succeed and win. Don't let your past get in the way of succeeding in the future.
You deserve to win. You will win once your thoughts remain on the good you can accomplish today.
Giving by Receiving
Receiving is one of the biggest gifts you can give.
You are receiving when you listen to someone. You are receiving when you understand them and are empathetic. You are receiving when you there when they need you. Many times this is the biggest gift of all.
How does this tie into business?
Receiving is the basis for consultative sales. If we do not know what our customers need how can we provide it? Any good salesman of services will tell you letting the client talk so you understand them is the most important part of the sales process. By asking questions you continue to receive. This is how you begin a successful sales process.
Remember, before you can give, you must receive.
Receiving is one of the biggest gifts you can give.
You are receiving when you listen to someone. You are receiving when you understand them and are empathetic. You are receiving when you there when they need you. Many times this is the biggest gift of all.
How does this tie into business?
Receiving is the basis for consultative sales. If we do not know what our customers need how can we provide it? Any good salesman of services will tell you letting the client talk so you understand them is the most important part of the sales process. By asking questions you continue to receive. This is how you begin a successful sales process.
Remember, before you can give, you must receive.
Thursday, June 17, 2004
Push on the Wall
Most of us are held back by our own beliefs. In our minds these beliefs form high solid walls that cannot be crossed. Yet in real life they are often only made of chicken wire that can be pushed out of the way at will.
For example many business people are afraid to go after clients that are big enough to provide lucrative profits. They believe, “ I am not big enough” or “ We are not qualified enough” or “We do not have enough experience”. When you ask them why they think this they give you lots of reasons, “we read it”, “we heard it”, “we think it”.
We think it. Need I say more? They never pushed on the wall to see if it is solid or just thin wire. Every day pick one area and push the wall hard. Stretch your self. Go out and get rejected 50 times. Each time ask why you were rejected. Fix what you can and keep plugging forward. You almost always will accomplish things you never thought possible. Remember, the wall is only in your mind.
Most of us are held back by our own beliefs. In our minds these beliefs form high solid walls that cannot be crossed. Yet in real life they are often only made of chicken wire that can be pushed out of the way at will.
For example many business people are afraid to go after clients that are big enough to provide lucrative profits. They believe, “ I am not big enough” or “ We are not qualified enough” or “We do not have enough experience”. When you ask them why they think this they give you lots of reasons, “we read it”, “we heard it”, “we think it”.
We think it. Need I say more? They never pushed on the wall to see if it is solid or just thin wire. Every day pick one area and push the wall hard. Stretch your self. Go out and get rejected 50 times. Each time ask why you were rejected. Fix what you can and keep plugging forward. You almost always will accomplish things you never thought possible. Remember, the wall is only in your mind.
Monday, May 24, 2004
Set up a Sales Force
Is your refrain about a sales force,
"I have never been able to get a salesperson to perform for me. They just don’t walk to the same beat as everyone else."
Of course the first attempt at hiring a sales force did not work. That is to be expected. The first several times you tried to ride a bike you probably fell off.
In order to grow with any growth strategy other than to ride a few corporate clients (which has other business risk) you will need to create a sale team.
The way to make a sales force work is actually, to treat them like other employees or contractors. Develop systems for how you want them to work. This needs to be realistically based on meeting their needs and have realistic objectives. But, just letting a good talker run wild will never work.
One way we recommend you start is to develop a process based on your personal experience:
1. Write down exactly how you make prospect calls.
2. Write down how you do follow-up and tracking.
3. Write down how you close your sales and what the paperwork process is.
4. Write down expectations for salesperson. Specific criteria such as number of cold calls per day, number of appointments per week, etc.
5. Develop tracking method to record progress in each area
6. Find a salesperson who will work for commission or almost completely commission AND will follow your system
7. This person might start with small areas such as cold calling.
8. While part-time might be work, in most cases they must only be selling your product.
9. Plan on hiring 5 people to get one that really works for you. Set it up in the beginning that if the results are not met they will not stay. When you get the one that really works keep them happy. Usually it is not money that causes people to leave.
Fine-tune this process with input from your salespeople, experience, and others.
Is your refrain about a sales force,
"I have never been able to get a salesperson to perform for me. They just don’t walk to the same beat as everyone else."
Of course the first attempt at hiring a sales force did not work. That is to be expected. The first several times you tried to ride a bike you probably fell off.
In order to grow with any growth strategy other than to ride a few corporate clients (which has other business risk) you will need to create a sale team.
The way to make a sales force work is actually, to treat them like other employees or contractors. Develop systems for how you want them to work. This needs to be realistically based on meeting their needs and have realistic objectives. But, just letting a good talker run wild will never work.
One way we recommend you start is to develop a process based on your personal experience:
1. Write down exactly how you make prospect calls.
2. Write down how you do follow-up and tracking.
3. Write down how you close your sales and what the paperwork process is.
4. Write down expectations for salesperson. Specific criteria such as number of cold calls per day, number of appointments per week, etc.
5. Develop tracking method to record progress in each area
6. Find a salesperson who will work for commission or almost completely commission AND will follow your system
7. This person might start with small areas such as cold calling.
8. While part-time might be work, in most cases they must only be selling your product.
9. Plan on hiring 5 people to get one that really works for you. Set it up in the beginning that if the results are not met they will not stay. When you get the one that really works keep them happy. Usually it is not money that causes people to leave.
Fine-tune this process with input from your salespeople, experience, and others.
Interesting Collateral Marketing Materials
"Our marketing materials are so bland no-one reads them". How can this be overcome?
Develop simple collateral materials around the problem you solve:
1. Determine the chief problems that your product is solving from the customer point of view.
2. Determine if your clients think the product solved the problem and would they recommend it to others – get recommendation letters, tapes etc.
3. Maintaining a problem focus in the headlines, develop simple but effective collateral materials.
"Our marketing materials are so bland no-one reads them". How can this be overcome?
Develop simple collateral materials around the problem you solve:
1. Determine the chief problems that your product is solving from the customer point of view.
2. Determine if your clients think the product solved the problem and would they recommend it to others – get recommendation letters, tapes etc.
3. Maintaining a problem focus in the headlines, develop simple but effective collateral materials.
Monday, May 17, 2004
Who Does What?
“How do I know what needs to be done,” is not a reasonable excuse for delaying the task of defining job descriptions. If you, or the correct person below you, do not know what your people should be doing, how do you expect them to know?
In order to effectively delegate you must clearly define what people need to do. We have heard every excuse imaginable as to why people don’t accurately record job descriptions including, “the tasks change too rapidly”, “if they are really good we will want to give them more work”, and finally, “how do I know what needs to be done.”
The best way to define tasks is to carefully write down each step as it is done for each defined task. Find a logical starting point and a logical finish point for the task. Once you have written down what is done you may want to get together with staff and talk about how the process might be improved. Staff will often have great time and step saving ideas that improve efficiency and results.
The definitions can often be covered in one or two pages. They do not have to be huge books. Start with your critical complex tasks then work down to the simple ones. Defining one job a month for a year will cover most small businesses.
Part of the definition process is to define acceptable variances and to define how to fix issues once they fall out of an acceptable range. Include how the work will be measured. This may be spot-checking at certain times, going over summary reports or other methods. It is important to keep the process as simple and self-correcting as possible.
As a thought to keep your employment lawyer comfortable make sure you always include the following legal disclaimers. All descriptions and tasks are subject to change without notice. Nothing in this description is intended to change the relationship known, as employment at will between the employee and the employer. We suggest you check with your employment lawyer for exact wording in your jurisdiction.
The final step is to actually implement the job descriptions. The measurement and reporting should tie into periodic performance reviews. They also should be updated yearly.
“How do I know what needs to be done,” is not a reasonable excuse for delaying the task of defining job descriptions. If you, or the correct person below you, do not know what your people should be doing, how do you expect them to know?
In order to effectively delegate you must clearly define what people need to do. We have heard every excuse imaginable as to why people don’t accurately record job descriptions including, “the tasks change too rapidly”, “if they are really good we will want to give them more work”, and finally, “how do I know what needs to be done.”
The best way to define tasks is to carefully write down each step as it is done for each defined task. Find a logical starting point and a logical finish point for the task. Once you have written down what is done you may want to get together with staff and talk about how the process might be improved. Staff will often have great time and step saving ideas that improve efficiency and results.
The definitions can often be covered in one or two pages. They do not have to be huge books. Start with your critical complex tasks then work down to the simple ones. Defining one job a month for a year will cover most small businesses.
Part of the definition process is to define acceptable variances and to define how to fix issues once they fall out of an acceptable range. Include how the work will be measured. This may be spot-checking at certain times, going over summary reports or other methods. It is important to keep the process as simple and self-correcting as possible.
As a thought to keep your employment lawyer comfortable make sure you always include the following legal disclaimers. All descriptions and tasks are subject to change without notice. Nothing in this description is intended to change the relationship known, as employment at will between the employee and the employer. We suggest you check with your employment lawyer for exact wording in your jurisdiction.
The final step is to actually implement the job descriptions. The measurement and reporting should tie into periodic performance reviews. They also should be updated yearly.
Friday, May 14, 2004
Accounting Consistency
We went through our accounting records and concluded that we don’t have a clue about our expenses!
How could this happen? After all you paid your bookkeeper to enter all the information. You paid your vendors. Why is the information useless?
Many businesses make the mistake of carelessly cost coding their accounting records. One month the rent will be placed in the rent column. The next month it may be placed under lease. The month after that it may be called facilities. Over time it becomes very difficult to determine what is going on. Rent is usually a fairly large payment made monthly that can be sorted out. Think of the work involved to sort out with office purchases, material purchases, travel expenses and other variable costs.
To obtain valid data that becomes more meaningful over time you must consistently classify your expenses the same way every month. Then over time cost trends can be compared. These comparisons should be used to manage your business.
For instance carefully coded travel expenses will allow you to immediately see when your sales force decides to travel first class without your approval.
Don’t end up with tons of useless data. Cost code and enter accounting data with care. It really will not cost you any more and the information may one day save your business.
We went through our accounting records and concluded that we don’t have a clue about our expenses!
How could this happen? After all you paid your bookkeeper to enter all the information. You paid your vendors. Why is the information useless?
Many businesses make the mistake of carelessly cost coding their accounting records. One month the rent will be placed in the rent column. The next month it may be placed under lease. The month after that it may be called facilities. Over time it becomes very difficult to determine what is going on. Rent is usually a fairly large payment made monthly that can be sorted out. Think of the work involved to sort out with office purchases, material purchases, travel expenses and other variable costs.
To obtain valid data that becomes more meaningful over time you must consistently classify your expenses the same way every month. Then over time cost trends can be compared. These comparisons should be used to manage your business.
For instance carefully coded travel expenses will allow you to immediately see when your sales force decides to travel first class without your approval.
Don’t end up with tons of useless data. Cost code and enter accounting data with care. It really will not cost you any more and the information may one day save your business.
Monday, May 10, 2004
Maintaining Balance
Every once in a while we all get overwhelmed. Having just completed one of those periods I thought I might reflect.
Often becoming overwhelmed is from failing to delegate, failing to give product delivery dates that can be met, or failing to otherwise intelligently manage your workflow. You know it all has to be done tomorrow – but does it?
The best solution I have found for that panicky feeling that comes from being overwhelmed is to write a list of everything that needs to be done. Usually the list is not that daunting. Then you look at what needs to be done when and assign dates to projects. If necessary you can make a call or two to see if things can be moved around a little bit.
9 times out of 10 at this point you start feeling better. That 10th time will happen and is a part of life. Being overwhelmed the other 9 times should be avoided by staying or getting organized.
Once you are organized again find time to start doing your high value - important work instead of just your urgent low value work.
Remember to think – then act.
Every once in a while we all get overwhelmed. Having just completed one of those periods I thought I might reflect.
Often becoming overwhelmed is from failing to delegate, failing to give product delivery dates that can be met, or failing to otherwise intelligently manage your workflow. You know it all has to be done tomorrow – but does it?
The best solution I have found for that panicky feeling that comes from being overwhelmed is to write a list of everything that needs to be done. Usually the list is not that daunting. Then you look at what needs to be done when and assign dates to projects. If necessary you can make a call or two to see if things can be moved around a little bit.
9 times out of 10 at this point you start feeling better. That 10th time will happen and is a part of life. Being overwhelmed the other 9 times should be avoided by staying or getting organized.
Once you are organized again find time to start doing your high value - important work instead of just your urgent low value work.
Remember to think – then act.
Monday, May 03, 2004
Asking For Help
One of the absolutely best ways to improve your business, or anything else, is to ask for help. This seems so basic that you probably ask why I would write something like this.
Let me tell you a story. A long time ago, when I had just started my first job out of school I was given a PC and a software program, Symphony.
I spent 5 hours trying to get the program to boot up. I read the manual. I banged on the computer. I did everything but ask. After five hours I went - all embarrassed that I could not get the computer to start - and admitted to my boss that his new hire apparently could not read. Instead of looking at me like I was an idiot, he laughed and stated, “I forgot to tell you that the instructions are wrong, you would never get it started without asking.”
While it took me many more years to learn to ask freely for help I now save many hours a week by asking questions.
Perhaps you might do the same?
One of the absolutely best ways to improve your business, or anything else, is to ask for help. This seems so basic that you probably ask why I would write something like this.
Let me tell you a story. A long time ago, when I had just started my first job out of school I was given a PC and a software program, Symphony.
I spent 5 hours trying to get the program to boot up. I read the manual. I banged on the computer. I did everything but ask. After five hours I went - all embarrassed that I could not get the computer to start - and admitted to my boss that his new hire apparently could not read. Instead of looking at me like I was an idiot, he laughed and stated, “I forgot to tell you that the instructions are wrong, you would never get it started without asking.”
While it took me many more years to learn to ask freely for help I now save many hours a week by asking questions.
Perhaps you might do the same?
Tuesday, April 20, 2004
Your 30 Second Presentation
I attended a trade show today. Have you noticed how some people can make a great and memorable impression in 30 seconds while most of us feel like we are babbling?
The key to a memorable impression is to have a statement that defines you. This definition must be short, memorable and specific. It must not have been already taken and it needs to be very focused. For instance a friend of mine has the statement that, “Technology does not create productive people. We do.” He then explains that through proper training on Word and Excel users can save 15 to 30 minutes a day. He finished by demonstrating with a real world example about a law firm that through training was able to generate thousands of dollars in additional billable hours.
Short and memorable. Make a point that can be remembered and then follow the point by an interesting story.
I attended a trade show today. Have you noticed how some people can make a great and memorable impression in 30 seconds while most of us feel like we are babbling?
The key to a memorable impression is to have a statement that defines you. This definition must be short, memorable and specific. It must not have been already taken and it needs to be very focused. For instance a friend of mine has the statement that, “Technology does not create productive people. We do.” He then explains that through proper training on Word and Excel users can save 15 to 30 minutes a day. He finished by demonstrating with a real world example about a law firm that through training was able to generate thousands of dollars in additional billable hours.
Short and memorable. Make a point that can be remembered and then follow the point by an interesting story.
Sunday, April 18, 2004
Can Time Stand Still
I am sure you have had the experience of going into a car or bike crash when you were driving and it seemed like time slowed down and hundredths of a second become minutes.
To a lesser extent time seems to go very slow when you are not interested in something you must do. It speeds up when you are doing something you really enjoy.
By meditating about something you need to resolve you slow time down giving yourself more time to solve the problem. When you meditate think about the problem. Think about what a great solution might be but do not become attached to that one solution. Then clear you mind and try to keep it completely clear for 15 minutes. Often the answer will appear. Once you understand the solution implementing it is easy. If the solution does not appear at that moment it usually will appear later that day.
This is a way to slow time down so you think more effectively. Try it. You will be amazed by the results.
I am sure you have had the experience of going into a car or bike crash when you were driving and it seemed like time slowed down and hundredths of a second become minutes.
To a lesser extent time seems to go very slow when you are not interested in something you must do. It speeds up when you are doing something you really enjoy.
By meditating about something you need to resolve you slow time down giving yourself more time to solve the problem. When you meditate think about the problem. Think about what a great solution might be but do not become attached to that one solution. Then clear you mind and try to keep it completely clear for 15 minutes. Often the answer will appear. Once you understand the solution implementing it is easy. If the solution does not appear at that moment it usually will appear later that day.
This is a way to slow time down so you think more effectively. Try it. You will be amazed by the results.
Friday, April 16, 2004
Fish in a Pond With Fish
The first issue in sales and marketing is to fish in a pond with fish. If there are no fish, you will not catch one. While this sounds elementary it is an easy mistake to make both when fishing and selling. If you have told your story to 50 prospects and none have bought, go back and ask them detailed questions on why. If none have bought after friendly questioning, and they all have valid objections, find a new market.
For instance a friend of my who had a decorating company was convinced that her niche was going to be preparing resale homes for market. She could show you how by spending a few thousand dollars to improve a homes interior appearance you would get ten to twenty thousand dollars more in sales price. Unfortunately she picked a very strong “sellers market” to do this in. Homes that had not been painted in 10 years were selling for record prices.
She spent a lot of time logically telling prospects why they should hire her. While these reasons might be true, when homes were selling in a week, for above initial asking prices, the sellers were not willing to pay for the services.
Finally she decided to seek another niche. She is now happily decorating high end new homes to create a regal feel.
The first issue in sales and marketing is to fish in a pond with fish. If there are no fish, you will not catch one. While this sounds elementary it is an easy mistake to make both when fishing and selling. If you have told your story to 50 prospects and none have bought, go back and ask them detailed questions on why. If none have bought after friendly questioning, and they all have valid objections, find a new market.
For instance a friend of my who had a decorating company was convinced that her niche was going to be preparing resale homes for market. She could show you how by spending a few thousand dollars to improve a homes interior appearance you would get ten to twenty thousand dollars more in sales price. Unfortunately she picked a very strong “sellers market” to do this in. Homes that had not been painted in 10 years were selling for record prices.
She spent a lot of time logically telling prospects why they should hire her. While these reasons might be true, when homes were selling in a week, for above initial asking prices, the sellers were not willing to pay for the services.
Finally she decided to seek another niche. She is now happily decorating high end new homes to create a regal feel.
Wednesday, April 14, 2004
Who are your best customers?
One of the most important value creation techniques over time is to improve your customer base. By moving to more profitable customers you can significantly rev up your profits. To do this you must identify your best customers. Once you identify these best customers you then need to learn more about them. Finally you take this knowledge and modify your offerings to attract more of them.
Your best customers are the customers that are easy to work with and order good quantities of profitable products. Namely they are high margin accounts. You can identify them by going through your sales records and your accounting records. Another way to identify them is to ask your salespeople. Customers who are profitable but make everyone tense or put the office in a constant uproar are not your best customers.
Once you identify your best customers you should ask them questions that will help you better understand them. By understanding them you can adjust your marketing and sales practices to obtain more of them. Appropriate questions are; why did you choose to buy from us? What features do you like the best? How have you bought these types of products before? Who else have you bought this from?
You also study them demographically and psychographically. Try to find similarities amongst you best customers. Then look at how other products they buy are marketed. Try to understand how they see themselves. Then take this information and modify your product offerings and marketing propositions based on your new understandings.
As always we suggest you try these new concepts within controlled tests wherever possible. Take one product or one service and make modifications and learn from it. As you begin to work out the bugs and sales improve with your desired groups then pull out the stops and watch margins jump.
One of the most important value creation techniques over time is to improve your customer base. By moving to more profitable customers you can significantly rev up your profits. To do this you must identify your best customers. Once you identify these best customers you then need to learn more about them. Finally you take this knowledge and modify your offerings to attract more of them.
Your best customers are the customers that are easy to work with and order good quantities of profitable products. Namely they are high margin accounts. You can identify them by going through your sales records and your accounting records. Another way to identify them is to ask your salespeople. Customers who are profitable but make everyone tense or put the office in a constant uproar are not your best customers.
Once you identify your best customers you should ask them questions that will help you better understand them. By understanding them you can adjust your marketing and sales practices to obtain more of them. Appropriate questions are; why did you choose to buy from us? What features do you like the best? How have you bought these types of products before? Who else have you bought this from?
You also study them demographically and psychographically. Try to find similarities amongst you best customers. Then look at how other products they buy are marketed. Try to understand how they see themselves. Then take this information and modify your product offerings and marketing propositions based on your new understandings.
As always we suggest you try these new concepts within controlled tests wherever possible. Take one product or one service and make modifications and learn from it. As you begin to work out the bugs and sales improve with your desired groups then pull out the stops and watch margins jump.
Sunday, April 11, 2004
Smile
Moping about feeling the pressure of the day, or even worse yet, feeling sorry for yourself does not move you forward. Feelings follow actions. To feel better about what is going on “force” yourself to smile. Get up and stretch your body. Do something for ten minutes (don’t allow it to become a device for procrastination) to warm up your mood. Then get back to your task at hand. And carry the good attitude over.
Smiling also makes everyone feel welcome around you. They respond favorably to you and to the things you are doing without prompting or effort. At first I didn’t realize the power of a smile until one day I was with my 13 year old son. He was meeting a new adult, up to that time always a stressful thing for him. He shyly said hello and then broke into a big goofy grin. Well that grin broke the ice for everyone, loosened up the room and allowed him to successfully take center stage.
This works at home and at the office.
Never underestimate the power of a smile!!!
Moping about feeling the pressure of the day, or even worse yet, feeling sorry for yourself does not move you forward. Feelings follow actions. To feel better about what is going on “force” yourself to smile. Get up and stretch your body. Do something for ten minutes (don’t allow it to become a device for procrastination) to warm up your mood. Then get back to your task at hand. And carry the good attitude over.
Smiling also makes everyone feel welcome around you. They respond favorably to you and to the things you are doing without prompting or effort. At first I didn’t realize the power of a smile until one day I was with my 13 year old son. He was meeting a new adult, up to that time always a stressful thing for him. He shyly said hello and then broke into a big goofy grin. Well that grin broke the ice for everyone, loosened up the room and allowed him to successfully take center stage.
This works at home and at the office.
Never underestimate the power of a smile!!!
Friday, April 09, 2004
Remember the 80 / 20 Rule
The best way to improve your business is to improve your own time management. Big picture time management means doing the right things. It is too easy to be busy but not productive. Delegate small tasks. Do the important tasks that take thought.
Remember the 80 /20 rule. Most of us only spend 20 % of our time doing important things. Important things if you are a salesperson is time prospecting on the phone and in front of clients. It is moving your deal forward. For a business owner important things means planning, positioning, systematizing, and otherwise figuring out how to make major gains in sales, productivity, and moral.
If you can increase your time doing these things from 20% to 30% you will spend 30% more time on important things. This is a huge gain when spread over months and years.
Anyone can be the receptionist, the machine operator, and the bookkeeper. Find a way to do the higher level things and watch your business take off.
The best way to improve your business is to improve your own time management. Big picture time management means doing the right things. It is too easy to be busy but not productive. Delegate small tasks. Do the important tasks that take thought.
Remember the 80 /20 rule. Most of us only spend 20 % of our time doing important things. Important things if you are a salesperson is time prospecting on the phone and in front of clients. It is moving your deal forward. For a business owner important things means planning, positioning, systematizing, and otherwise figuring out how to make major gains in sales, productivity, and moral.
If you can increase your time doing these things from 20% to 30% you will spend 30% more time on important things. This is a huge gain when spread over months and years.
Anyone can be the receptionist, the machine operator, and the bookkeeper. Find a way to do the higher level things and watch your business take off.
Monday, April 05, 2004
Selling Your Business – Step in the Buyer’s Shoes
One of the most important acts you as a business owner can do in determining the value of your business is to honestly ask yourself what you would pay for your business.
Try to step out of your emotional attachment to what you have created and into your accountant’s fun world. How much debt can the business carry and continue to pay a suitable salary. Are there any unusual risks such as a major client making up more than 20% of the revenues, reliance on a lease or license that is ending soon, or perhaps the failure to create systems that can be passed on? How many dollars are going to have to be spent to improve the equipment, facilities, and other infrastructure to get the business where it should be if you were buying it?
Finally does the business feel good? Are things like paint, carpet, signage, and furniture fresh? Do your employees have spirit and can you feel their pride? Remember, people buy on emotion and justify with facts. To sell a business both parts of the human equation, emotion and financial facts must work. Don’t expect anyone else to pay more for your business than you would or could.
One of the most important acts you as a business owner can do in determining the value of your business is to honestly ask yourself what you would pay for your business.
Try to step out of your emotional attachment to what you have created and into your accountant’s fun world. How much debt can the business carry and continue to pay a suitable salary. Are there any unusual risks such as a major client making up more than 20% of the revenues, reliance on a lease or license that is ending soon, or perhaps the failure to create systems that can be passed on? How many dollars are going to have to be spent to improve the equipment, facilities, and other infrastructure to get the business where it should be if you were buying it?
Finally does the business feel good? Are things like paint, carpet, signage, and furniture fresh? Do your employees have spirit and can you feel their pride? Remember, people buy on emotion and justify with facts. To sell a business both parts of the human equation, emotion and financial facts must work. Don’t expect anyone else to pay more for your business than you would or could.
Friday, April 02, 2004
Managing People
Mary worked as part of a committee at a local association. She frequently volunteered for committee work and was devoted. Mary would dive into the projects and produce volumes of outlines, plans, and specifications. She then sent the work-product out on an email listserve as committee mandate without obtaining any approvals. When questioned she made it clear that she felt that she should not need to get approval. When she was told she needed approval, it was a committee she began to attack everyone who questioned what she was doing on the same public listserve. Even after this happened several times she continued to march off into the sunset without pausing, getting approval, and in general conforming to committee life.
Needless to say Mary is no longer part of this committee.
The best news from this difficult situation is that management is now free from spending time on Mary and the committee has come back together stronger than ever and is able to move forward as a group. Everyone is relived and more productive. There must have been more tension and conflict being generated by the situation than anyone realized.
While this was an extreme case, do you have a Mary in your group? Someone who causes disruptions and always has three other problems stirring? Someone who tries to cut of dialogue by attacking people instead of ideas?
If you do have a Mary you need to take action to fix the problem. Let your Mary know what she is doing wrong and what proper conformance looks like.
If she cannot conform then let her go. While this always produces a sense of loss it is far better to loose a part rather than loose the whole. When done you will feel better and you will probably learn how little this person was actually accomplishing.
Mary worked as part of a committee at a local association. She frequently volunteered for committee work and was devoted. Mary would dive into the projects and produce volumes of outlines, plans, and specifications. She then sent the work-product out on an email listserve as committee mandate without obtaining any approvals. When questioned she made it clear that she felt that she should not need to get approval. When she was told she needed approval, it was a committee she began to attack everyone who questioned what she was doing on the same public listserve. Even after this happened several times she continued to march off into the sunset without pausing, getting approval, and in general conforming to committee life.
Needless to say Mary is no longer part of this committee.
The best news from this difficult situation is that management is now free from spending time on Mary and the committee has come back together stronger than ever and is able to move forward as a group. Everyone is relived and more productive. There must have been more tension and conflict being generated by the situation than anyone realized.
While this was an extreme case, do you have a Mary in your group? Someone who causes disruptions and always has three other problems stirring? Someone who tries to cut of dialogue by attacking people instead of ideas?
If you do have a Mary you need to take action to fix the problem. Let your Mary know what she is doing wrong and what proper conformance looks like.
If she cannot conform then let her go. While this always produces a sense of loss it is far better to loose a part rather than loose the whole. When done you will feel better and you will probably learn how little this person was actually accomplishing.
Wednesday, March 31, 2004
Upset by the lack of profits on your tax returns?
Now that most business owners are starting to receive their tax returns the collective sigh of working too hard and making too little can be heard throughout the land.
What can be done about this plague?
There are really three options.
1. Don’t do anything. Change is hard. Change involves risk. A year from now you can complain and have another beer just like this year. As unfortunate as it may sound, most people will elect option 1 and not do a thing.
2. Take the time to analyze your business and yourself and determine where improvements and changes have to be made. Start with; are you in a business that you love? What are your strongest personal skills? Can you convert your responsibilities as an owner to reflect your strengths? Work through you personal / job items then start looking at the business itself.
Review your financial records and cost accounting records to see what products and services are the most profitable. Which products contributed the most to overhead? Which products sold at a reasonable margin without great effort? Can sales of that product be expanded? Perform this type of reflective analysis on every area of your business. Production, personnel, customer service, etc. Do this with several trusted advisors to really get the creative juices flowing. Write down all your ideas and thoughts into a list. Take the list and come up with three ideas that can be implemented over the next week, three ideas that can be implemented over the next month, three the next quarter and perhaps three for the next year.
3. If you realize the futility of option 1, and you just can’t do option 2, or, after doing option 2 you realize you own the wrong business, then you need to seriously look at option 3. Sell your business. Some owners are never going to succeed with their businesses because they are in the wrong business. Because they are spread too thin trying to do too many different things at once. Or because they really do not have the drive and interest to own a business. There is nothing wrong with any of these things. There is something terribly wrong if you continue to torture yourself running an under performing businesses because you don’t want to admit the need for change. You only live once and you should enjoy what you do.
I have no idea which option makes the most sense to you. If Option 2 makes the most sense but you can’t quite get organized, get help. I have several good friends who can help you with that type of organizational analysis. Send an email and we can try to get you set up. If you know you are in the wrong place, talk to us. We can explain the sales process and how it might work for you. We will have many more articles on those topics in the coming weeks.
Greg
3/31/04
Now that most business owners are starting to receive their tax returns the collective sigh of working too hard and making too little can be heard throughout the land.
What can be done about this plague?
There are really three options.
1. Don’t do anything. Change is hard. Change involves risk. A year from now you can complain and have another beer just like this year. As unfortunate as it may sound, most people will elect option 1 and not do a thing.
2. Take the time to analyze your business and yourself and determine where improvements and changes have to be made. Start with; are you in a business that you love? What are your strongest personal skills? Can you convert your responsibilities as an owner to reflect your strengths? Work through you personal / job items then start looking at the business itself.
Review your financial records and cost accounting records to see what products and services are the most profitable. Which products contributed the most to overhead? Which products sold at a reasonable margin without great effort? Can sales of that product be expanded? Perform this type of reflective analysis on every area of your business. Production, personnel, customer service, etc. Do this with several trusted advisors to really get the creative juices flowing. Write down all your ideas and thoughts into a list. Take the list and come up with three ideas that can be implemented over the next week, three ideas that can be implemented over the next month, three the next quarter and perhaps three for the next year.
3. If you realize the futility of option 1, and you just can’t do option 2, or, after doing option 2 you realize you own the wrong business, then you need to seriously look at option 3. Sell your business. Some owners are never going to succeed with their businesses because they are in the wrong business. Because they are spread too thin trying to do too many different things at once. Or because they really do not have the drive and interest to own a business. There is nothing wrong with any of these things. There is something terribly wrong if you continue to torture yourself running an under performing businesses because you don’t want to admit the need for change. You only live once and you should enjoy what you do.
I have no idea which option makes the most sense to you. If Option 2 makes the most sense but you can’t quite get organized, get help. I have several good friends who can help you with that type of organizational analysis. Send an email and we can try to get you set up. If you know you are in the wrong place, talk to us. We can explain the sales process and how it might work for you. We will have many more articles on those topics in the coming weeks.
Greg
3/31/04
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