The new year is fast approaching, and for many of us that means goal setting time! Of course, goal setting is something that can be done and re-done throughout the year, but it seems to be that feeling of a fresh start that comes with January 1st that encourages up to really look at where we are and where we want to be.
There are generally 3 steps to setting goals. If a person uses them correctly, it can really become an inspirational force to push you to where you want to be. The problem is, most people set them backwards!
Here is how it usually works:
1. Numbers - We say things like, "Alright...I did $750,000 in sales last year. This year I will do $800,000."
2. Achievements/Milestones - "If I do that much business I will need an assistant to take some stuff off my plate. I know I was working way too much just to keep up this year. So that will be a goal for this year, hire an assistant."
3. Rewards - "Well, after paying that assistant, my net might not be a whole lot different. I do need to reward myself though. Ok. I will take a 2 week trip to Mexico again like I did this year. I should be able to afford that."
Starting with the numbers limits everything. If your goals are limited, so is your imagination. If your imagination is limited, so is your excitement. If your excitement is limited, so is your determination. If your determination is limited, so is your result.
To set an effective goal, flip this system over!
1. Rewards - "I enjoyed my 2 weeks in Mexico last year. This year I want 2 trips. Two weeks in Mexico and 3 weeks in Ireland."
2. Accomplishments/Milestones - "If I am going to be away, I will need someone competent to handle things when I am gone. An assistant won't be enough. I need someone who can actually manage the place. I will hire an manager to work under me in the first half of this year."
3. Numbers - "I know what I want and the major change that will have to happen to make it a reality. I need to pay for it. After crunching the numbers I realize that my business needs to do $900,000 to pay for all of this. I will do at least $900,000 in sales this year. Having that manager in place will take a lot of work off my plate so I can concentrate on sales so I should easily be able to reach that number and not have to work insane hours like last year."
This way creates motivation, drive and determination because it is based on something you want as a person, not just cold numbers at the accountant's office.
In the first system it sounds like this, "I will pick a number that is bigger than last year because that is what businesses are supposed to do right? (P.S. I don't agree that is the case). Then if I hit that number, I will do something nice for myself."
The second is much more powerful because it sounds like this, "I know what I want in my personal life and my business is my tool to provide those things. Here is what I want and here is what my business needs to do to get it for me." Much more powerful! (On a side note, do not be surprised if you need to scale your business back a bit to meet your personal goals. Especially if you are in the case where your business is starting to consume your life)
This year, when you sit down to set your business goals remember, you are a person. You have things that you want to experience in this life and you have people that you want to share your life with. Your business is simply a tool to make those things happen. Set your personal goals and then set your business goals in a way that supports them.
Your personal goals may not be a trip. They may be a new house, more time with your family, more time for yourself, to give a certain amount to a cause or to volunteer more of your time. It is all up to you and there are infinite possibilities. Just concentrate on what you want out of your life, then build your goals around that.
If you set your goals in this way, you will find much more drive to make your business a success. That is because you will be working toward providing what you see as a fulfilled life. Not just shooting for empty numbers.
Working on the person behind the business is key to being a success in business and life. Click here for more information on how to reach your goals.
Wednesday, 21 December 2011
Sunday, 18 December 2011
The 4 Parts of an Entrepreneur (Part 2)
In Part 1 you read about the artist and the analyst working together within you. Those two come to light at the beginning. They get all the ideas rolling and find ways to make them a reality, if they are working together properly. Once they get to a certain point with their ideas, they need two more parts of your inner entrepreneur to step in. They are the manager and the motivator.
The Manager
Ideas that your artist and analyst create are wonderful, but at some point they need systems and actions put into place to drive them forward. That is where your manager comes in. She is the part of you that takes the ideas and says, "Ok, if this is going to work then we need to do this, this and this...." She makes the plans that will take your realistic idea and make it a profitable business. Your manager is the one that will watch everything that goes on in your business, see what works and make adjustments to the things that don't. She will crunch the numbers and decide how to make them better. She will often come up with problems that she can hand back to the artist and analyst to solve. She will also delegate a certain role to the next character ...
The Motivator
The motivator is the communication specialist within you. This is the part of you that can turn on the charm, do the negotiating, encourage, convince and argue. The motivator is the part of your inner entrepreneur that is shown to the world. Everything created by the artist, analyst and manager come to light through the motivator. She is the part of you helping others to see the value in your dream. She makes sales, gets buy in from employees and shows the public what you are all about.
By combining these 4 parts of you properly; The Artist, The Analyst, The Manager, The Motivator; you will be able to bring your business into the world and know that you have all your basis covered.
Often, one of these 4 will stand out due to an entrepreneurs unique personality. It is very important not to let that happen. To be a well rounded business owner, the 4 must operate in a balanced fashion, aiding each other and performing their specific roles.
In my workshop, "Discovering the Entrepreneur Within" we explore the relationship between these 4 parts. You will learn to identify them, bring their strengths to the surface and make them work as a well oiled machine.
Find these parts of you, give them faces, get to know them and see how easy it becomes to make and act on decisions.
The Manager
Ideas that your artist and analyst create are wonderful, but at some point they need systems and actions put into place to drive them forward. That is where your manager comes in. She is the part of you that takes the ideas and says, "Ok, if this is going to work then we need to do this, this and this...." She makes the plans that will take your realistic idea and make it a profitable business. Your manager is the one that will watch everything that goes on in your business, see what works and make adjustments to the things that don't. She will crunch the numbers and decide how to make them better. She will often come up with problems that she can hand back to the artist and analyst to solve. She will also delegate a certain role to the next character ...
The Motivator
The motivator is the communication specialist within you. This is the part of you that can turn on the charm, do the negotiating, encourage, convince and argue. The motivator is the part of your inner entrepreneur that is shown to the world. Everything created by the artist, analyst and manager come to light through the motivator. She is the part of you helping others to see the value in your dream. She makes sales, gets buy in from employees and shows the public what you are all about.
By combining these 4 parts of you properly; The Artist, The Analyst, The Manager, The Motivator; you will be able to bring your business into the world and know that you have all your basis covered.
Often, one of these 4 will stand out due to an entrepreneurs unique personality. It is very important not to let that happen. To be a well rounded business owner, the 4 must operate in a balanced fashion, aiding each other and performing their specific roles.
In my workshop, "Discovering the Entrepreneur Within" we explore the relationship between these 4 parts. You will learn to identify them, bring their strengths to the surface and make them work as a well oiled machine.
Find these parts of you, give them faces, get to know them and see how easy it becomes to make and act on decisions.
Friday, 16 December 2011
The 4 Parts of an Entrepreneur (Part 1)
Most entrepreneurs find themselves walking through stages in their business as they build it to success. In each of those stages, a certain mindset is needed. The temptation is to completely change your mindset once your business moves into the next stage. Instead, it is important to keep each mindset active as you build your business to success.
I look at my inner entrepreneur as 4 parts. They are the artist, the analyst, the manager and the motivator. (Maybe I shouldn't admit this, but I actually have a character built up for each one, that I can see in my mind as I consult with them.) Perfection is to have all of them active in any decision, working together as a team.
Today I want to introduce you to two of them; the artist and the analyst. Here is what they do:
The Artist
This is the part of you that is present right from the start. He is probably the one who came up with your business idea, then ran with it. The artist is the one that got you all excited and pointed out all of the possibilities to you; some realistic, some maybe out of reach (for now). The artist may not always be the most practical but he is always full of imagination and creativity. Unfortunately, after the initial excitement dies down, the artist often gets pushed aside by the next character, but don't let it. Keep the artist alive and strong at all times.
Who is that next character?
The Analyst
When the analyst steps in he takes everything the artist has dreamed up and says, "Ok, this won't work, that will, this is great,... What on earth were you thinking here?...This part is genius, that part isn't...". Basically, the analyst puts the artists work up against the present reality. Of course, that is a necessary part of bringing your dream to life. Unfortunately it is where many potential entrepreneurs give up. If they see too many objections from the analyst, they completely forget about the artist and forget their dream.
Instead, you must embrace both of these two and get them to work together. The artist creates ideas, the analyst tests them. The analyst identifies challenges and gives it back to the artist. The artist then creates solutions to hand back to the analyst. This cycle continues until a clear and reasonable path to success is found.
If you build this wonderful relationship between your artist and your analyst, you will find that decision making and problem solving become much easier and more fruitful. You will see challenges as things that can be solved or maybe even used to your advantage. Your dream and vision for your idea will stay clear in front of you with a defined path toward it.
In my "Discovering the Entrepreneur Within" workshops, I teach people to first identify and accept their artist and analyst. We learn strategies to draw out the power of each one. Then we explore how to make them work together to make your business a success. We also look at how the other two characters, the manager and the motivator, must be brought into this picture. I will write about those two in another blog article soon.
Until then, work with your artist and analyst. Make them see how they need to work in unison to bring your vision of a successful business to life.
On to Part 2
I look at my inner entrepreneur as 4 parts. They are the artist, the analyst, the manager and the motivator. (Maybe I shouldn't admit this, but I actually have a character built up for each one, that I can see in my mind as I consult with them.) Perfection is to have all of them active in any decision, working together as a team.
Today I want to introduce you to two of them; the artist and the analyst. Here is what they do:
The Artist
This is the part of you that is present right from the start. He is probably the one who came up with your business idea, then ran with it. The artist is the one that got you all excited and pointed out all of the possibilities to you; some realistic, some maybe out of reach (for now). The artist may not always be the most practical but he is always full of imagination and creativity. Unfortunately, after the initial excitement dies down, the artist often gets pushed aside by the next character, but don't let it. Keep the artist alive and strong at all times.
Who is that next character?
The Analyst
When the analyst steps in he takes everything the artist has dreamed up and says, "Ok, this won't work, that will, this is great,... What on earth were you thinking here?...This part is genius, that part isn't...". Basically, the analyst puts the artists work up against the present reality. Of course, that is a necessary part of bringing your dream to life. Unfortunately it is where many potential entrepreneurs give up. If they see too many objections from the analyst, they completely forget about the artist and forget their dream.
Instead, you must embrace both of these two and get them to work together. The artist creates ideas, the analyst tests them. The analyst identifies challenges and gives it back to the artist. The artist then creates solutions to hand back to the analyst. This cycle continues until a clear and reasonable path to success is found.
If you build this wonderful relationship between your artist and your analyst, you will find that decision making and problem solving become much easier and more fruitful. You will see challenges as things that can be solved or maybe even used to your advantage. Your dream and vision for your idea will stay clear in front of you with a defined path toward it.
In my "Discovering the Entrepreneur Within" workshops, I teach people to first identify and accept their artist and analyst. We learn strategies to draw out the power of each one. Then we explore how to make them work together to make your business a success. We also look at how the other two characters, the manager and the motivator, must be brought into this picture. I will write about those two in another blog article soon.
Until then, work with your artist and analyst. Make them see how they need to work in unison to bring your vision of a successful business to life.
On to Part 2
Monday, 12 December 2011
Business Grade 6 Style!
Today I finished up a series of classes called "A Business of Our Own" with a grade 6 class in Glenora school. The program is provided by Junior Achievement and delivered by volunteers like myself. The idea is for the kids to plan, build and operate their own business within their school. It comes completely from their own ideas and I act only as a consultant and guide.
I worked with this class over a period of 5 weeks. Their business was a snack stand to be operated during a book sale at their school. They borrowed $200 from a class fund they had as their initial investment. They divided themselves into groups that would be responsible for different parts of the business and they went to work.
They experienced all of the phases a new business would go through. The initial excitement, the pie-in-the-sky ideas, the slap of reality, the realistic business plan that follows the slap, the vision of a common goal, the squabbling on how to reach that goal, the productivity that comes from teamwork and finally the reward of seeing a functioning and very successful business in the end. Most entrepreneurs go through these stages over the course of several months, if not years. This group of kids dealt with it in a few weeks.
They saw a gross income of over $500 from the $200 investment. That is a 150% return on investment for a month of work! If only we could see that kind of return in our own businesses on a regular basis.
If there is one thing I see in them and wish I could give to every entrepreneur I know, it is their lack of fear. Granted, they were working in a safe environment, (if they lost money it wouldn't mean they would have to pay it back out of their pocket) but it was amazing to watch how they would make decisions when they didn't have fear of failure blinding them.
These kids had no business knowledge but that would not stop them. They looked at what they had to do, asked questions and found ways to learn the things they needed to know. They used creativity and curiosity to find ways to make their business work.
Personally, I will strive to have that same attitude when I face business decisions in areas I am not so skilled in. Like those kids, I will set the fear aside so that it doesn't block my view. Then look around for the answer. If it isn't there in the open, I will find creative ways to dig for it. Once I find it, I will implement it confidently. Operating outside of fear can lead only to progress. An earlier article I wrote asks the question, "What would you do if your weren't afraid?" I think the kids in that class were a living answer to that.
Do the same for yourself! Just try it! I know fear will always be there, especially in the early stages of business, but try ignoring it. Don't let it be a factor! Focus on removing fear from situations you face as you build your business. See the clear paths that appear when you remove that hindering emotion. Then walk down those paths confidently knowing that fear did not influence you or hold you back.
In the end, all of the profits they created were donated to the Stollery Children's Hospital, providing yet another good example for this world to look at.
So thank you to the grade 6 class of Glenora school for being a great example to the business world in many ways. If any of you from the class are reading this, I sincerely hope you learned something valuable that will help you in the future. Please know that I have learned some very valuable lessons from all of you as well.
I worked with this class over a period of 5 weeks. Their business was a snack stand to be operated during a book sale at their school. They borrowed $200 from a class fund they had as their initial investment. They divided themselves into groups that would be responsible for different parts of the business and they went to work.
They experienced all of the phases a new business would go through. The initial excitement, the pie-in-the-sky ideas, the slap of reality, the realistic business plan that follows the slap, the vision of a common goal, the squabbling on how to reach that goal, the productivity that comes from teamwork and finally the reward of seeing a functioning and very successful business in the end. Most entrepreneurs go through these stages over the course of several months, if not years. This group of kids dealt with it in a few weeks.
They saw a gross income of over $500 from the $200 investment. That is a 150% return on investment for a month of work! If only we could see that kind of return in our own businesses on a regular basis.
If there is one thing I see in them and wish I could give to every entrepreneur I know, it is their lack of fear. Granted, they were working in a safe environment, (if they lost money it wouldn't mean they would have to pay it back out of their pocket) but it was amazing to watch how they would make decisions when they didn't have fear of failure blinding them.
These kids had no business knowledge but that would not stop them. They looked at what they had to do, asked questions and found ways to learn the things they needed to know. They used creativity and curiosity to find ways to make their business work.
Personally, I will strive to have that same attitude when I face business decisions in areas I am not so skilled in. Like those kids, I will set the fear aside so that it doesn't block my view. Then look around for the answer. If it isn't there in the open, I will find creative ways to dig for it. Once I find it, I will implement it confidently. Operating outside of fear can lead only to progress. An earlier article I wrote asks the question, "What would you do if your weren't afraid?" I think the kids in that class were a living answer to that.
Do the same for yourself! Just try it! I know fear will always be there, especially in the early stages of business, but try ignoring it. Don't let it be a factor! Focus on removing fear from situations you face as you build your business. See the clear paths that appear when you remove that hindering emotion. Then walk down those paths confidently knowing that fear did not influence you or hold you back.
In the end, all of the profits they created were donated to the Stollery Children's Hospital, providing yet another good example for this world to look at.
So thank you to the grade 6 class of Glenora school for being a great example to the business world in many ways. If any of you from the class are reading this, I sincerely hope you learned something valuable that will help you in the future. Please know that I have learned some very valuable lessons from all of you as well.
Sunday, 11 December 2011
You are Not Your Business
For entrepreneurs, a constant danger is getting eaten by your business. (Normally I would use the word "consumed" there, but that just isn't graphic enough). You can get eaten! If you aren't careful, your business can take you and wrap you up so tightly within itself that you start to believe you are a single creature.
I see this in every industry but it really stood out to me during my time in real estate. So many real estate agents had sacrificed their own personal goals and replaced them with business goals. So many had lost meaningful touch with their families while trying to further their business. So many had started basing their own personal self worth on how many sales they were making. This type of behavior exists in every industry. It is a slippery slope that ends in bitterness, even if the business that has eaten you does well.
You and your business are two separate entities and you must constantly remind yourself to keep it that way. If you don't, you will start to experience some of the things I listed in the last paragraph. Your personal values and feelings of worth will end up being dependent on the success of your business. Your businesses operates on a different field than your personal life. If you let the business take over how you run your life it will end up being a hollow experience. You see, a business cannot provide what a fulfilled life needs. It can provide the tools to gaining a fulfilled life, but only you as a person (not as a business) can truly experience your life to the fullest based on your personal values (not on those of your business).
I know, I know. This line can be very grey, especially if you run a business that was based on something that makes you feel fulfilled as a person. But it is imperative that you retain your personal identity outside of your business to keep your life and your business healthy. As soon as the two start to become one, bad decisions get made on both ends. Business decisions end up having too much of your personal interests involved (i.e. hiring your very unqualified nephew to avoid offending a family member). Your personal interests end up being dictated by your business (i.e. You're time at home with your family is dictated by how much work needs to get done each day.)
To keep these two separate, start with making two sets of goals. One for your business and one for yourself. Your business goals may include a certain sales volume or profit, a milestone of some sort or possibly an expansion. Your personal goal list will be things that you want for yourself and those you love. Maybe a trip or a house or a certain amount of time spent with someone. Only you know what should be on your lists. After you see what your two separate lists of goals look like, then give attention to making them BOTH successful. Clearly define what you must do as a person and what your business must do. Do not mix them!
When you are working toward your business goals, make decisions and carry out actions that reflect the values and interests of the business. Have a place where you think only in business terms. An office that when you walk in, your mind says, "It's business time."
When you are working on your personal goals, enjoy it! Don't let your mind start working while you are spending time with family or friends. Know that your business is doing its thing off in the distance and that right now you are being a person and enjoying your life.
When you are working on your business, focus on it! When you are working toward your personal goals and enjoying your personal life, focus on it! Keep them separate, give them both the attention they need. You and your business will both benefit and you will not get eaten.
I see this in every industry but it really stood out to me during my time in real estate. So many real estate agents had sacrificed their own personal goals and replaced them with business goals. So many had lost meaningful touch with their families while trying to further their business. So many had started basing their own personal self worth on how many sales they were making. This type of behavior exists in every industry. It is a slippery slope that ends in bitterness, even if the business that has eaten you does well.
You and your business are two separate entities and you must constantly remind yourself to keep it that way. If you don't, you will start to experience some of the things I listed in the last paragraph. Your personal values and feelings of worth will end up being dependent on the success of your business. Your businesses operates on a different field than your personal life. If you let the business take over how you run your life it will end up being a hollow experience. You see, a business cannot provide what a fulfilled life needs. It can provide the tools to gaining a fulfilled life, but only you as a person (not as a business) can truly experience your life to the fullest based on your personal values (not on those of your business).
I know, I know. This line can be very grey, especially if you run a business that was based on something that makes you feel fulfilled as a person. But it is imperative that you retain your personal identity outside of your business to keep your life and your business healthy. As soon as the two start to become one, bad decisions get made on both ends. Business decisions end up having too much of your personal interests involved (i.e. hiring your very unqualified nephew to avoid offending a family member). Your personal interests end up being dictated by your business (i.e. You're time at home with your family is dictated by how much work needs to get done each day.)
To keep these two separate, start with making two sets of goals. One for your business and one for yourself. Your business goals may include a certain sales volume or profit, a milestone of some sort or possibly an expansion. Your personal goal list will be things that you want for yourself and those you love. Maybe a trip or a house or a certain amount of time spent with someone. Only you know what should be on your lists. After you see what your two separate lists of goals look like, then give attention to making them BOTH successful. Clearly define what you must do as a person and what your business must do. Do not mix them!
When you are working toward your business goals, make decisions and carry out actions that reflect the values and interests of the business. Have a place where you think only in business terms. An office that when you walk in, your mind says, "It's business time."
When you are working on your personal goals, enjoy it! Don't let your mind start working while you are spending time with family or friends. Know that your business is doing its thing off in the distance and that right now you are being a person and enjoying your life.
When you are working on your business, focus on it! When you are working toward your personal goals and enjoying your personal life, focus on it! Keep them separate, give them both the attention they need. You and your business will both benefit and you will not get eaten.
Wednesday, 7 December 2011
Icy Roads, Country Music and Self Discovery
Last night I was driving back to Edmonton from Calgary after looking at venues to host a "Discover the Entrepreneur Within" workshop. It was a relatively slow drive due to falling snow and I was getting tired of my usual music playlist. Digging into my console, I found an old CD with mostly '90's country music. Putting it in brought back all sorts of memories that I hadn't visited in a long time. Among them was a Clint Black song called "No Time To Kill". I remember listening to it as a teenager and not really "getting it". Last night a line stuck out to me like it never had before and I started to "get it".
The line went like this, "If we'd know 10 years ago today would be 10 years from now, would we spend tomorrow's yesterdays and make it last somehow."
That's a real mouthful and will probably take a couple reads to wrap your brain around if you are anything like me. In essence, it made me think back on all the time I had "wasted" over the past decade. I know that there were times where I could have accomplished more than I did. I could have worked harder to build business faster. But just when I started to think that I should make sure I pour tons of work into every moment from now until I die, another line caught me.
"No time to kill but time to change the kind of hurry I've been in."
If I am going to look back on the last 10 years and decide if I wasted time or not, I had better decide what is important to me first.
Sure, I probably could have pushed harder in business to make more money. I could have spent more time analyzing and growing my business. But you know what? When I look back, I am more than happy with where things are in that part of my life. I take pride in the fact that I spend a lot of time and energy enjoying time with my kids, family and my close friends. I see no "wasted time" in either of those realms. Where I do feel I "killed time" was in rewarding myself. Times that I could have done something nice for myself I often filled with chores or some other thing that really wasn't that important. So, I decided on that drive home that, over my next 10 years, I am going to make some time for me.
Look back at your last decade. What parts are you happy about? What parts would you change? Decide now to take control of that. Decide now to spend the next 10 years using time to the advantage of things that are important to you.
One last line from the song to sum all this up. If you get a chance, take a listen (And yes I sang this at the top of my lungs about 6 times over during that drive. My steering wheel is my biggest fan.)
"The highest cost livin's dyin' and that's one everybody pays. So have it spent before you get the bill, there's no time to kill."
The line went like this, "If we'd know 10 years ago today would be 10 years from now, would we spend tomorrow's yesterdays and make it last somehow."
That's a real mouthful and will probably take a couple reads to wrap your brain around if you are anything like me. In essence, it made me think back on all the time I had "wasted" over the past decade. I know that there were times where I could have accomplished more than I did. I could have worked harder to build business faster. But just when I started to think that I should make sure I pour tons of work into every moment from now until I die, another line caught me.
"No time to kill but time to change the kind of hurry I've been in."
If I am going to look back on the last 10 years and decide if I wasted time or not, I had better decide what is important to me first.
Sure, I probably could have pushed harder in business to make more money. I could have spent more time analyzing and growing my business. But you know what? When I look back, I am more than happy with where things are in that part of my life. I take pride in the fact that I spend a lot of time and energy enjoying time with my kids, family and my close friends. I see no "wasted time" in either of those realms. Where I do feel I "killed time" was in rewarding myself. Times that I could have done something nice for myself I often filled with chores or some other thing that really wasn't that important. So, I decided on that drive home that, over my next 10 years, I am going to make some time for me.
Look back at your last decade. What parts are you happy about? What parts would you change? Decide now to take control of that. Decide now to spend the next 10 years using time to the advantage of things that are important to you.
One last line from the song to sum all this up. If you get a chance, take a listen (And yes I sang this at the top of my lungs about 6 times over during that drive. My steering wheel is my biggest fan.)
"The highest cost livin's dyin' and that's one everybody pays. So have it spent before you get the bill, there's no time to kill."
Friday, 2 December 2011
Entrepreneur: Crazy or Genius?
Dear Entrepreneur, society has been trained to think you are crazy.
Because of the risks involved in entrepreneurship, most of your family, friends and other people around you are going to think you are crazy. They may not say it to your face, but they will probably be thinking it inside. They have seen the stats, they have heard the horror stories and the failures. They will dwell on those negative thoughts out of concern for you. What they will fail to realize is that every bit of shopping they do and every service they use is a success story. They will not be able to visualize what you do and will have trouble seeing you as one of the successes. You know differently though and must look past their doubt so that you can build your dream into a reality and prove them wrong.
The funny thing is, when you succeed, society will suddenly think you are a genius!
Then they will be coming to you asking how you did it. Asking if you could help them do the same.
My entrepreneurial hero is Sir Richard Branson, the owner of the Virgin group of companies with over 400 companies under his private umbrella. He left school when he was 16 years old as he was having trouble with his studies due to dyslexia. He tried selling Christmas trees and budgies with no success. Then he started a newspaper for students. This found great success and he expanded, bringing a small staff into a crypt to use as an office. Once the paper seemed to be maxing out their circulation, he started selling records by mail order on the side, using his own paper to advertise. From there, Virgin records was born. Over the years he branched into retail record stores, soft drinks, airlines, television, radio, financial services, cellular communications and even space travel! The thing that I love the most is that he did not venture into these ventures because he understood them. He entered them because he saw a need and wanted to fill it for the consumer. He had the vision and then surrounded himself with people with the technical know how. He then motivated them and managed then to a mutual success. He is no were near finished either. I am always excited to hear of his next idea.
I am sure Mr. Branson had his share of people telling him he was insane (he probably still hears it from time to time) but is now seen by most as an absolute business genius.
Don't let it bother you that people think you are crazy for wanting to build your own business. Listen to constructive criticism but dismiss those that just write off entrepreneurship as a whole. They think you are crazy now, but wait until they see you 5 years from now. They will marvel at what you have built.
Saturday, 26 November 2011
Know Who Is In Your Circle
If I talk about a new business plan to close friends and family, there are a few responses I can count on hearing:
My mother will say, "Oh no! Can't you just be satisfied with where you are at? What if it fails?"
My friend Don will say. "Wow! That's awesome! You go man!"
My friend Stacy will say, "That sounds like a great idea! Your only only big challenge might be ... "
When you are building a business it is very important to know who is around you and what effect they have on you. This is especially important during those early stages of bringing the dream to reality. When you explain your dream to people, they are going to react to it and you are going to see that reaction. If that person is someone close to you, you will be affected by that reaction.
Generally, you can put these people into 3 categories:
1. Caring Detractors
2. Biggest Fans
3. Motivating Realists
Knowing who fits into what category and planning on how to deal with them can save you a lot of strife. I have several people in each category so I will give you some examples:
Caring Detractor
My mother fits this category. Anytime I speak of a new idea, investment or business; she feels that it is her job to talk me out of it. No matter how solid the plan, she has to say , "Don't do it!" The trick for me is remembering why she does this. It is because she hates risk and fears change when it comes to the lives of her children.
I am sure you have similar people around you. When you talk about new ideas, they automatically try to "protect" you from the worst. They may have had bad experiences themselves that have led them to believe that entrepreneurship is something dangerous. They may just lack the creativity to see how an idea can become a successful venture. Either way, they try to dissuade you out of concern for you.
(There is another type of detractor. The kind that wants to dissuade you out of jealousy or bitterness. Not wanting success for you. These people should not be in your circle, so lets just forget about them)
Biggest Fans
I have few friends that fit in this category, they cheer me on and say, "What a great idea!" no matter what I am talking about. Don is one of these friends. He wants me to feel good and will say whatever he has to in order to accomplish that. He is a great friend and I wouldn't trade him for the world, but I have to be careful how much weight I put in his enthusiasm and encouragement.
You probably have some of these as well. They are great for the ego. They are great for making you feel like the worthy person you are when you may be feeling less than worthy. Listen to what these people say and enjoy it. They are sincere. They love you and want the best for you. Just make sure that you don't place all of your stock in their comments. They will make you feel great about your idea but may make you blind to issues that need to be addressed.
That's where this next group comes in ...
Motivating Realists
These are hard to find but I do have a few in my life. Stacy is one of these. She wants me to succeed and will encourage and cheer me on, but at the same time, she will bring to light any snags in my plan. She has the courage to tell me the things I might not want to hear. She will point out bumps in the road that I may have to deal with. She offers me a perfect mix of encouragement and realism. When she sees potential problems she points them out and then helps me think through to a solution.
If you have some of these people around you, grab on to them and hold them close through the building of your business. They can be a huge contribution to your success. These people have usually taken some risks themselves and have been rewarded for it. They understand that a bit of hard going and uncertainty in the beginning can pay off a million times over in the future. They care about your success and are honest about the pros and cons of your plan.
Knowing who is around you and which type of person they are is a great way to avoid stress.
Know ahead of time that the detractors will try to stop you and handle your communication with them accordingly. (I don't tell my mother anything until I have already done it).
Know that your fans will cheer you on. Tell them what you are doing and bask in the encouragement they will offer. Just don't get blinded by that wonderful spotlight they put on you.
Know that the realists will be straight with you. Tell them what you are doing and then listen closely to what they say. It may not always be what you want to hear but it will always be helpful.
Balance these three and then go ahead knowing that, when it comes down to it, YOU are the key to making your dream a reality.
My mother will say, "Oh no! Can't you just be satisfied with where you are at? What if it fails?"
My friend Don will say. "Wow! That's awesome! You go man!"
My friend Stacy will say, "That sounds like a great idea! Your only only big challenge might be ... "
When you are building a business it is very important to know who is around you and what effect they have on you. This is especially important during those early stages of bringing the dream to reality. When you explain your dream to people, they are going to react to it and you are going to see that reaction. If that person is someone close to you, you will be affected by that reaction.
Generally, you can put these people into 3 categories:
1. Caring Detractors
2. Biggest Fans
3. Motivating Realists
Knowing who fits into what category and planning on how to deal with them can save you a lot of strife. I have several people in each category so I will give you some examples:
Caring Detractor
My mother fits this category. Anytime I speak of a new idea, investment or business; she feels that it is her job to talk me out of it. No matter how solid the plan, she has to say , "Don't do it!" The trick for me is remembering why she does this. It is because she hates risk and fears change when it comes to the lives of her children.
I am sure you have similar people around you. When you talk about new ideas, they automatically try to "protect" you from the worst. They may have had bad experiences themselves that have led them to believe that entrepreneurship is something dangerous. They may just lack the creativity to see how an idea can become a successful venture. Either way, they try to dissuade you out of concern for you.
(There is another type of detractor. The kind that wants to dissuade you out of jealousy or bitterness. Not wanting success for you. These people should not be in your circle, so lets just forget about them)
Biggest Fans
I have few friends that fit in this category, they cheer me on and say, "What a great idea!" no matter what I am talking about. Don is one of these friends. He wants me to feel good and will say whatever he has to in order to accomplish that. He is a great friend and I wouldn't trade him for the world, but I have to be careful how much weight I put in his enthusiasm and encouragement.
You probably have some of these as well. They are great for the ego. They are great for making you feel like the worthy person you are when you may be feeling less than worthy. Listen to what these people say and enjoy it. They are sincere. They love you and want the best for you. Just make sure that you don't place all of your stock in their comments. They will make you feel great about your idea but may make you blind to issues that need to be addressed.
That's where this next group comes in ...
Motivating Realists
These are hard to find but I do have a few in my life. Stacy is one of these. She wants me to succeed and will encourage and cheer me on, but at the same time, she will bring to light any snags in my plan. She has the courage to tell me the things I might not want to hear. She will point out bumps in the road that I may have to deal with. She offers me a perfect mix of encouragement and realism. When she sees potential problems she points them out and then helps me think through to a solution.
If you have some of these people around you, grab on to them and hold them close through the building of your business. They can be a huge contribution to your success. These people have usually taken some risks themselves and have been rewarded for it. They understand that a bit of hard going and uncertainty in the beginning can pay off a million times over in the future. They care about your success and are honest about the pros and cons of your plan.
Knowing who is around you and which type of person they are is a great way to avoid stress.
Know ahead of time that the detractors will try to stop you and handle your communication with them accordingly. (I don't tell my mother anything until I have already done it).
Know that your fans will cheer you on. Tell them what you are doing and bask in the encouragement they will offer. Just don't get blinded by that wonderful spotlight they put on you.
Know that the realists will be straight with you. Tell them what you are doing and then listen closely to what they say. It may not always be what you want to hear but it will always be helpful.
Balance these three and then go ahead knowing that, when it comes down to it, YOU are the key to making your dream a reality.
Thursday, 24 November 2011
What Would You Do If You Were't Afraid?
Entrepreneurs, especially those in the early stages of business, know that fear is a factor that must be dealt with on an almost daily basis.
What if people don't buy into my service?
What if the bank doesn't come through?
What if this big sale doesn't come together?
What if...
What if...
What if...
I am sure you have some personal fears you can complete those sentences with.
Fear is a natural reaction to uncertain circumstances and an unknown future. It is a survival tool after all. Fear is in us to warn us of things that could harm us. We fear falling off of things because the landing could kill us. We fear disease because it can ruin our lives. We fear our business failing because it means we could go broke.The trick is taking that fear and working through it. It can be a great tool if used properly.
I find this one question very helpful. When faced with something scary I ask myself, "What would I do if I wasn't afraid?" This question takes the emotion of fear out of the equation and lets me focus on what the logical approach to a situation should be.
A common example is public speaking. You have a presentation to make in 3 days and you are nervous because it is a very advanced audience you will be speaking to. They know their stuff and expect the same of you. You can sit and worry about making a fool of yourself, or you can ask, "What would I do if I wasn't afraid."
Your answer would likely be, "I would..."
...research the topic thoroughly.
...focus on writing accurate and interesting content.
...rehearse the speech several times.
...walk out onto the stage confidently on that day.
...present my thoughts in a fluid and engaging way.
You already know what you need to do in order to be successful. If you can side step the fear for a moment and concentrate on what needs to be done, you can alleviate that fear. As you go through the actions you prescribed for yourself, your confidence in success will return as you are consciously taking steps toward it.
Afraid that the bank won't say yes to your business loan? What would you do if you weren't afraid?
Afraid that your first customers won't like your product? What would you do if you were't afraid?
Afraid that your new employee won't perform well? What would you do if you weren't afraid?
Afraid to quit your day job and build your business full time? What would you do if you weren't afraid?
Fear will be present in your life as an entrepreneur. Acknowledge that there is a reason you are afraid, then ask what you would do if you were't. The answer to the problem causing the fear is usually right around the corner.
What if people don't buy into my service?
What if the bank doesn't come through?
What if this big sale doesn't come together?
What if...
What if...
What if...
I am sure you have some personal fears you can complete those sentences with.
Fear is a natural reaction to uncertain circumstances and an unknown future. It is a survival tool after all. Fear is in us to warn us of things that could harm us. We fear falling off of things because the landing could kill us. We fear disease because it can ruin our lives. We fear our business failing because it means we could go broke.The trick is taking that fear and working through it. It can be a great tool if used properly.
I find this one question very helpful. When faced with something scary I ask myself, "What would I do if I wasn't afraid?" This question takes the emotion of fear out of the equation and lets me focus on what the logical approach to a situation should be.
A common example is public speaking. You have a presentation to make in 3 days and you are nervous because it is a very advanced audience you will be speaking to. They know their stuff and expect the same of you. You can sit and worry about making a fool of yourself, or you can ask, "What would I do if I wasn't afraid."
Your answer would likely be, "I would..."
...research the topic thoroughly.
...focus on writing accurate and interesting content.
...rehearse the speech several times.
...walk out onto the stage confidently on that day.
...present my thoughts in a fluid and engaging way.
You already know what you need to do in order to be successful. If you can side step the fear for a moment and concentrate on what needs to be done, you can alleviate that fear. As you go through the actions you prescribed for yourself, your confidence in success will return as you are consciously taking steps toward it.
Afraid that the bank won't say yes to your business loan? What would you do if you weren't afraid?
Afraid that your first customers won't like your product? What would you do if you were't afraid?
Afraid that your new employee won't perform well? What would you do if you weren't afraid?
Afraid to quit your day job and build your business full time? What would you do if you weren't afraid?
Fear will be present in your life as an entrepreneur. Acknowledge that there is a reason you are afraid, then ask what you would do if you were't. The answer to the problem causing the fear is usually right around the corner.
Tuesday, 22 November 2011
Human Resources or Powerful Partners?
I have trouble with the phrase "human resources". Maybe I have an odd way of viewing it but I don't think I am alone. To me, it brings to mind a company seeing it's people as usable objects, like something they could take inventory on. "Lets see, we have 37 computers, 4 cars and 21 humans."
Its just semantics, I know; but it begs the questions, "How should a company view it's employees?"
The first thing to understand is that people (the humans that are the employees of your company) are motivated by their own goals and needs. They are only going to be interested in your company as far as it is able to meet their needs. This isn't a selfish thing, it is simply human nature. We all need to have food and shelter, we all need to feel good about our lives, we all need to provide for the ones we love, we all need to feel like we are important, we all need to have time to enjoy life, we all need to feel like we are bettering our lives (and the lives of those we love) every day. Every person has these same basic needs no matter their position within an organization.
Employees can be treated either as faceless resources or like valuable people. And guess what ... The way that they act and feel toward your company is directly effected by that!
A person who is treated like a replaceable part of your organization will act like a replaceable part of your organization. Pay them the bottom end of what their position commands, give them a drab office, never ask for their input, never praise them for a job well done, hold fast to schedules without regard for their personal life and only speak to them when you need something. How hard do you think they will work to build your company? How much effort will they put in? Will they go above and beyond to help you reach the goals you have for the company? Of course not. Instead, they will be tossing resumes around hoping to find something to get them the heck away from you and your company. In this kind of situation, none of their personal needs are being met. Why on earth would they stay and show interest in bettering the position of you and your company if you show no interest in bettering their position in life?
If you employ a person, commit to treating them in a way fitting of someone who is helping you towards your goals, because that is exactly what they are doing! They are taking care of things for your business so that it can meet and exceed the goals you have set for it. Of course, paying people properly is a great way to make them feel valuable, but there are hundreds of other ways as well. For example:
In short, people need to feel valuable. If they feel valuable they will act valuable. They will want to push your company towards its goals because they feel like an important part of it. They will look for the things that can be improved and point them out to you. They will creatively think of ways to make customers happy. They will put in the extra time or effort needed to ensure the business runs smoothly. Why? because they know that taking care of your company's needs will in turn take care of their own needs. They will know that they are an integral part of your company's success and they will be proud of that fact. They will act in a way that benefits your business because it gives them a sense of pride and security to be a part of a successful venture. You see, it is a symbiotic relationship. Your business needs your employees and your employees need your business. If you take care of them, they will take care of you.
You, as the employer, set the tone of your organization. Present it as a company that values its people and your people will be very valuable to you. You will not see them as a resource, but as partners working toward the same goal.
Its just semantics, I know; but it begs the questions, "How should a company view it's employees?"
The first thing to understand is that people (the humans that are the employees of your company) are motivated by their own goals and needs. They are only going to be interested in your company as far as it is able to meet their needs. This isn't a selfish thing, it is simply human nature. We all need to have food and shelter, we all need to feel good about our lives, we all need to provide for the ones we love, we all need to feel like we are important, we all need to have time to enjoy life, we all need to feel like we are bettering our lives (and the lives of those we love) every day. Every person has these same basic needs no matter their position within an organization.
Employees can be treated either as faceless resources or like valuable people. And guess what ... The way that they act and feel toward your company is directly effected by that!
A person who is treated like a replaceable part of your organization will act like a replaceable part of your organization. Pay them the bottom end of what their position commands, give them a drab office, never ask for their input, never praise them for a job well done, hold fast to schedules without regard for their personal life and only speak to them when you need something. How hard do you think they will work to build your company? How much effort will they put in? Will they go above and beyond to help you reach the goals you have for the company? Of course not. Instead, they will be tossing resumes around hoping to find something to get them the heck away from you and your company. In this kind of situation, none of their personal needs are being met. Why on earth would they stay and show interest in bettering the position of you and your company if you show no interest in bettering their position in life?
If you employ a person, commit to treating them in a way fitting of someone who is helping you towards your goals, because that is exactly what they are doing! They are taking care of things for your business so that it can meet and exceed the goals you have set for it. Of course, paying people properly is a great way to make them feel valuable, but there are hundreds of other ways as well. For example:
- Give them a comfortable place to work. Somewhere they feel proud to work from.
- Schedule their hours in a way that shows you understand that they have a life outside of work.
- Make time to "chat" once in a while. (An off topic chat may seem like a waste, but it is an investment.)
- Publicly recognize their successes.
- Genuinely ask for their input when decisions are being made.
- Share the glory for your company's successes with them.
In short, people need to feel valuable. If they feel valuable they will act valuable. They will want to push your company towards its goals because they feel like an important part of it. They will look for the things that can be improved and point them out to you. They will creatively think of ways to make customers happy. They will put in the extra time or effort needed to ensure the business runs smoothly. Why? because they know that taking care of your company's needs will in turn take care of their own needs. They will know that they are an integral part of your company's success and they will be proud of that fact. They will act in a way that benefits your business because it gives them a sense of pride and security to be a part of a successful venture. You see, it is a symbiotic relationship. Your business needs your employees and your employees need your business. If you take care of them, they will take care of you.
You, as the employer, set the tone of your organization. Present it as a company that values its people and your people will be very valuable to you. You will not see them as a resource, but as partners working toward the same goal.
Tuesday, 15 November 2011
Keep Your Creative Mind Strong
There was a time I didn't need the gym. I was young and constantly doing physical things. I could eat anything I wanted and I wouldn't gain an ounce of fat. Now the story is different. I'm past the age where I can rely on my metabolism to keep me thin. Now I have to watch what I eat and make a point of staying active to keep in good shape. Fortunately, I enjoy my time at the gym. I find it to be a very creative place. While my body does the exercises, my mind can go in all sorts of directions often finding some interesting thoughts to ponder.
Today I realized that it isn't downtime that my mind is getting in the gym. It is a workout of its own. It is when the creative side of my entrepreneurial spirit gets to come out. (It happens in other places as well, my shower at home and my car being the best of all.) Without this time though, my creative side would constantly be overshadowed by the analytical side. When I am in the office speaking with clients, it is most often my analytical side that is doing the work. It stays strong on its own because of this constant activity. My creative side, though, only gets to come out when I am in certain situations (IE. gyms, cars or showers).
It is incredibly important for all entrepreneurs to keep that creative side active. If you are in business for yourself, you likely remember the moment when the dream of entrepreneurship popped into your head. It was wonderful wasn't it? The rush of suddenly seeing the world differently. A world opened up by the vision you had for your product or service. The feeling of unlimited potential, of all the possibilities ahead. That was the creative side of you shining through.
Many entrepreneurs lose touch with that creative side. Once they make their dream a reality, they fall into the trap of indulging only their analytical side in order to run the business on a day to day basis. Businesses need to deal in cold hard facts and numbers if they are to succeed, so there is a place for the analytical mind without a doubt. However, it should not overshadow the creative mind.
Creative thinking is where you are going to find ways to expand your business, please customers and create a great environment for your employees. It is how you will see not only where your business is going, but where it could go. It will allow you to step out of the numbers and see your business as an organism in a huge world where it plays a part. It will help you to see other parts your business could play, or perhaps an idea for a whole new business. It will keep that anxious urge to create alive in you, and that is the road to a wonderful life full of accomplishment! Shut all that down and you become a simple manager. Is that why you started your own business? To be a manager? I highly doubt it.
Take the time to keep your creative side active. Find that place or activity that opens you up in that way. Make a point of being in those situations that allow your mind to roam free. Keep seeing those opportunities in that wide open world that you first saw when you dreamed your business into being. Look at the road ahead through your creative eyes and marvel at the possibilities.
Tuesday, 8 November 2011
Chickens, Crocodiles and Great Business Ideas
Rancid, decomposing chicken carcasses would turn almost anyone's stomach. It was no different for a chicken farmer I heard about today. But his disgust lead to business success!
He had a farm that produced hundreds of thousands of chickens. Although his farm was far above average when it came to the conditions for his birds, he still had hundreds of dead chickens each week. He tried burying them but ran out of room, he tried incinerating them but it was too costly, he tried composting them but it was much too disgusting. Each week he was left with a disgusting mess.
On a family trip, he stopped in at a crocodile farm so that he and his kids could watch the mighty reptiles. By chance, he noticed that they were being fed chicken carcasses! An idea was born! He went through the proper channels and legally acquired 2 breeding crocodiles. He made a proper enclosure for them at his farm, fed them the dead chickens and watched them make babies. It didn't take long for him to have his own crocodile farm which people were paying to see!
Out of his frustration, his creative juices flowed. Not only did he solve a major problem for his main business, he also ended up creating a second successful business as a result!
When you are frustrated with a task or a tool, don't just storm away angry. Take some time to look for a creative solution. You may find a solution that makes your life much easier, save your business some money and maybe even stumble upon a great business idea that you can run with.
He had a farm that produced hundreds of thousands of chickens. Although his farm was far above average when it came to the conditions for his birds, he still had hundreds of dead chickens each week. He tried burying them but ran out of room, he tried incinerating them but it was too costly, he tried composting them but it was much too disgusting. Each week he was left with a disgusting mess.
On a family trip, he stopped in at a crocodile farm so that he and his kids could watch the mighty reptiles. By chance, he noticed that they were being fed chicken carcasses! An idea was born! He went through the proper channels and legally acquired 2 breeding crocodiles. He made a proper enclosure for them at his farm, fed them the dead chickens and watched them make babies. It didn't take long for him to have his own crocodile farm which people were paying to see!
Out of his frustration, his creative juices flowed. Not only did he solve a major problem for his main business, he also ended up creating a second successful business as a result!
When you are frustrated with a task or a tool, don't just storm away angry. Take some time to look for a creative solution. You may find a solution that makes your life much easier, save your business some money and maybe even stumble upon a great business idea that you can run with.
Entrepreneurs: Examine Your Hat Collection
Starting up a new business means that you will have to wear many hats. The problem is, not every hat is going to fit you perfectly. Knowing what hats to wear and which hats to put on someone else's head can be the difference between a business success or a business nightmare.
In your business' infancy, you MUST wear all the hats. I say must, because even if you have the ability to hire a staff right off the bat, it is necessary to understand your business from every angle. Immerse yourself in it, sign every check, examine every invoice, talk to every customer. Really get to understand everything about it so that you appreciate every nuance that goes on in the belly of what you have created.
Soon though, you need to ensure that the right people are wearing the right hats.
Most entrepreneurs are of the creative type. They see the world a bit differently than most people do. They see opportunities to improve things and shake the system up to make it better. If this is you, then put that hat on. Look at your business from all of those angles and use your creativity to change the things that can be improved. That may mean that you need to have a manager in place to take care of the day to day maintenance type decisions. You may need sales people to handle the finding of customers or clients. You may need an accountant to crunch the numbers. Find the right people for those jobs so that you can concentrate on wearing that hat of creativity to steer your business in the ways it must go.
You may be of a different set though. Some entrepreneurs have incredible technical knowledge of the product they are producing but may not have the business savvy to take it to the public successfully. If that is you, wear the right hat. Surround yourself with a dynamic manager and sales staff who can take care of getting your product out to the public while you put your skills to use where no one else can, perfecting what it is you have created.
Every entrepreneur is different. To be successful, you must be honest about what your true skills are and where you are lacking. You must then be willing to find others who have skills where you are lacking to create a well tuned business.
In the beginning, wear all the hats for a bit so that you know how they all fit. But then, examine your skills, put on the hat that really fits you, find people who wear the other hats perfectly, then watch your business soar as everyone does their part according to their skill.
In your business' infancy, you MUST wear all the hats. I say must, because even if you have the ability to hire a staff right off the bat, it is necessary to understand your business from every angle. Immerse yourself in it, sign every check, examine every invoice, talk to every customer. Really get to understand everything about it so that you appreciate every nuance that goes on in the belly of what you have created.
Soon though, you need to ensure that the right people are wearing the right hats.
Most entrepreneurs are of the creative type. They see the world a bit differently than most people do. They see opportunities to improve things and shake the system up to make it better. If this is you, then put that hat on. Look at your business from all of those angles and use your creativity to change the things that can be improved. That may mean that you need to have a manager in place to take care of the day to day maintenance type decisions. You may need sales people to handle the finding of customers or clients. You may need an accountant to crunch the numbers. Find the right people for those jobs so that you can concentrate on wearing that hat of creativity to steer your business in the ways it must go.
You may be of a different set though. Some entrepreneurs have incredible technical knowledge of the product they are producing but may not have the business savvy to take it to the public successfully. If that is you, wear the right hat. Surround yourself with a dynamic manager and sales staff who can take care of getting your product out to the public while you put your skills to use where no one else can, perfecting what it is you have created.
Every entrepreneur is different. To be successful, you must be honest about what your true skills are and where you are lacking. You must then be willing to find others who have skills where you are lacking to create a well tuned business.
In the beginning, wear all the hats for a bit so that you know how they all fit. But then, examine your skills, put on the hat that really fits you, find people who wear the other hats perfectly, then watch your business soar as everyone does their part according to their skill.
Friday, 4 November 2011
Make Your Business Support Your Life
Why do you want to be an entrepreneur?
So many answers arise to this question:
I want the freedom it offers.
I know it can lead to lots of money.
I have a great product or idea that I want to share with the world.
I want to be my own boss.
I want to control my destiny.
I have a need to create.
Insert your answer (or several of them ) here.
There is no right answer to this question, but before stepping into your first business creation, make sure you understand why you are doing it.
If you truly want to find personal success in entrepreneurship, you need your business to cater to your motivation.
For example, if freedom and being your own boss are your motivation, then starting a consulting business and hiring yourslef out to one or two big companies probably won’t make you happy about your business. There will be specific demands on your time and productivity. This will make it feel like someone else is in control of your time. A person with this motivation may be better suited to a retail or manufacturing business where staff could be hired to handle things in the business owners absence.
If your motivation is controlling your own destiny or a need to create, you may want to avoid that retail or manufacturing business. Your ties to a physical location and staff may limit your ability to change your business as you create new ideas and goals. You may be better suited to a broader service that can walk into several fields or industries. An example of this might be an efficiency consultant or something similar. This would give you the opportunity to work on short term projects with several different companies. In turn that would make your business seem fresh and open to change all the time.
Here are some questions that you should ask yourself to make sure your new enterprise will support your motivation and goals:
1. If I could only have one of these, which would I chose? A stable income or control over my time?
2. Do I enjoy managing people, delegating responsibilities and encouraging others or do I prefer to work solo?
3. How far do I want to take this business? Built it into something I can sell, create a business that can exist in my family for generations or something in between?
4. Do I picture myself being hands on, every day with my business or do I see myself turning day to day decisions over to a manager?
5. If I lack a skill involved in running my business would I rather pay to have it taken care of or learn to do it myself?
6. What does a perfect work/life balance look like to me?
7. Which is more important to me if I was forced to chose between the two? Showing growth in profit every year or creating a certain life style for myself?
8. If I had to sum up all my goals for my business, as it relates to my lifestyle, into a 10 word sentence; what would it be?
9. How do I feel about dealing with unexpected problems and issues? Do I feel excited by the challenge or do I feel frustrated by them?
10. Can I motivate myself to give 100% every day or do I prefer having deadlines to motivate me?
By answering each of these questions honestly and in detail, you will be able to see a pattern appear as to what a business needs to be like in order for you to be happy with it. Does your current business idea support these answers? If not, can it be structured differently so that it will? Is there a new idea out there for you that will provide the things you discovered in your answers?
Happy, successful entrepreneurs have one thing in common; their business works with their lifestyle and values. Structure your business to do that for you right from the start and you will realize success and fulfillment very quickly.
So many answers arise to this question:
I want the freedom it offers.
I know it can lead to lots of money.
I have a great product or idea that I want to share with the world.
I want to be my own boss.
I want to control my destiny.
I have a need to create.
Insert your answer (or several of them ) here.
There is no right answer to this question, but before stepping into your first business creation, make sure you understand why you are doing it.
If you truly want to find personal success in entrepreneurship, you need your business to cater to your motivation.
For example, if freedom and being your own boss are your motivation, then starting a consulting business and hiring yourslef out to one or two big companies probably won’t make you happy about your business. There will be specific demands on your time and productivity. This will make it feel like someone else is in control of your time. A person with this motivation may be better suited to a retail or manufacturing business where staff could be hired to handle things in the business owners absence.
If your motivation is controlling your own destiny or a need to create, you may want to avoid that retail or manufacturing business. Your ties to a physical location and staff may limit your ability to change your business as you create new ideas and goals. You may be better suited to a broader service that can walk into several fields or industries. An example of this might be an efficiency consultant or something similar. This would give you the opportunity to work on short term projects with several different companies. In turn that would make your business seem fresh and open to change all the time.
Here are some questions that you should ask yourself to make sure your new enterprise will support your motivation and goals:
1. If I could only have one of these, which would I chose? A stable income or control over my time?
2. Do I enjoy managing people, delegating responsibilities and encouraging others or do I prefer to work solo?
3. How far do I want to take this business? Built it into something I can sell, create a business that can exist in my family for generations or something in between?
4. Do I picture myself being hands on, every day with my business or do I see myself turning day to day decisions over to a manager?
5. If I lack a skill involved in running my business would I rather pay to have it taken care of or learn to do it myself?
6. What does a perfect work/life balance look like to me?
7. Which is more important to me if I was forced to chose between the two? Showing growth in profit every year or creating a certain life style for myself?
8. If I had to sum up all my goals for my business, as it relates to my lifestyle, into a 10 word sentence; what would it be?
9. How do I feel about dealing with unexpected problems and issues? Do I feel excited by the challenge or do I feel frustrated by them?
10. Can I motivate myself to give 100% every day or do I prefer having deadlines to motivate me?
By answering each of these questions honestly and in detail, you will be able to see a pattern appear as to what a business needs to be like in order for you to be happy with it. Does your current business idea support these answers? If not, can it be structured differently so that it will? Is there a new idea out there for you that will provide the things you discovered in your answers?
Happy, successful entrepreneurs have one thing in common; their business works with their lifestyle and values. Structure your business to do that for you right from the start and you will realize success and fulfillment very quickly.
Monday, 31 October 2011
A Simple Trick in Speaking Confidently
When you operate a small business, you will often find yourself in situations where you must show confidence. Sometimes true confidence isn't really there but you know that your client wants to see confidence in you before they give you their trust.
Appearing confident is a benefit in any situation where you need someone to trust your words. Sadly, it is usually the way something that is said that convinces people rather than the actual words being spoken.
There are several ways to show confidence but recently I have noticed one trend which needs to be corrected for many business owners, managers and sales people.
Often I hear people ending sentences with words that turn a statement into a question. What this communicates is a lack of confidence in the speaker. It asks for approval from the listener and basically gives them permission to doubt what you are saying.
"Let's get this meeting started, ok?"
"We need to make a decison today, alright?"
"...so you can see that is a great product for your situation right?"
These should be confident statements, not questions that ask for the listeners approval. Read them again without the question attached:"Let's get this meeting started."
"We need to make a decision today."
"...so you can see that is a great product for your situation."
Appearing confident is a benefit in any situation where you need someone to trust your words. Sadly, it is usually the way something that is said that convinces people rather than the actual words being spoken.
There are several ways to show confidence but recently I have noticed one trend which needs to be corrected for many business owners, managers and sales people.
Often I hear people ending sentences with words that turn a statement into a question. What this communicates is a lack of confidence in the speaker. It asks for approval from the listener and basically gives them permission to doubt what you are saying.
"Let's get this meeting started, ok?"
"We need to make a decison today, alright?"
"...so you can see that is a great product for your situation right?"
These should be confident statements, not questions that ask for the listeners approval. Read them again without the question attached:"Let's get this meeting started."
"We need to make a decision today."
"...so you can see that is a great product for your situation."
These statements become much more authoritative just by dropping that last word.They leave less room for negotiation and they do not seek approval from the listener.
if you run or represent a small business, people make judgement calls based on how you present yourself. If you do not seem confident in yourself, why would they want to place their confidence in you? If you appear confident in what you do, they will feel free to trust you and do business with you in you.
Speak in statements, show confidence.
Friday, 28 October 2011
Unique Experiences Create Customer Loyalty
I was in an Italian restaurant about a week ago. It was a small place, not flashy at all, you could even say it looked dated. However, this place is very well known throughout the city and has become a real destination.
My expectation was that the food must be wonderful to make so many people speak so well of the place. I was wrong. Don't misunderstand, the food was very good, but that is not what has made the establishment famous. Instead it was the feeling you have when you eat at this place.
When I first walked in, it looked like chaos. It was very loud with servers dashing about and full tables everywhere. As I came in the door I noticed there was no greeting area for a host/hostess to meet customers. Instead I hear a booming voice from across the room yell, "Come in! Come in my friend!" I yelled back that I had a reservation and said my name. He boomed back, "Yeeeessss! Of course!" as he walked over to me. When he reached me he patted me on the shoulder and gestured to an empty table, "Right this way sir."
That is when he had me.
That pat on the shoulder summed up the whole experience. I felt like a member of this man's family that just walked in for Thanksgiving dinner. As the evening went on, I realized that I had no specific server, but each one would check in on me from time to time. If I wanted something, I could ask any of them. They would joke with each customer as if they were long time friends, they would call each person by name if they had heard it mentioned. As I left, each server called out a goodbye of some sort before the door closed behind me. Absolutely, masterfully, wonderfully amazing!
As a business it is always important to provide a quality product at a reasonable price if you want to succeed. However, that will not make you stand out. Every successful business in the world does those two things. If you can find a way to provide an experience to your customers while they buy your product, you will win their loyalty.
Step into your customers' shoes. What do they feel as they purchase your products or services. Do they get the same experience as they would get with your competition? What would they like to feel when doing business with you? How could you create that feeling?
Depending on what type of business you run, the answer may be very different. The restaurant I was at did it through providing a genuinely welcoming and friendly atmosphere. Find the experience your customers want, create it and have business for life.
My expectation was that the food must be wonderful to make so many people speak so well of the place. I was wrong. Don't misunderstand, the food was very good, but that is not what has made the establishment famous. Instead it was the feeling you have when you eat at this place.
When I first walked in, it looked like chaos. It was very loud with servers dashing about and full tables everywhere. As I came in the door I noticed there was no greeting area for a host/hostess to meet customers. Instead I hear a booming voice from across the room yell, "Come in! Come in my friend!" I yelled back that I had a reservation and said my name. He boomed back, "Yeeeessss! Of course!" as he walked over to me. When he reached me he patted me on the shoulder and gestured to an empty table, "Right this way sir."
That is when he had me.
That pat on the shoulder summed up the whole experience. I felt like a member of this man's family that just walked in for Thanksgiving dinner. As the evening went on, I realized that I had no specific server, but each one would check in on me from time to time. If I wanted something, I could ask any of them. They would joke with each customer as if they were long time friends, they would call each person by name if they had heard it mentioned. As I left, each server called out a goodbye of some sort before the door closed behind me. Absolutely, masterfully, wonderfully amazing!
As a business it is always important to provide a quality product at a reasonable price if you want to succeed. However, that will not make you stand out. Every successful business in the world does those two things. If you can find a way to provide an experience to your customers while they buy your product, you will win their loyalty.
Step into your customers' shoes. What do they feel as they purchase your products or services. Do they get the same experience as they would get with your competition? What would they like to feel when doing business with you? How could you create that feeling?
Depending on what type of business you run, the answer may be very different. The restaurant I was at did it through providing a genuinely welcoming and friendly atmosphere. Find the experience your customers want, create it and have business for life.
Friday, 21 October 2011
Happy Employees = More Customers
Who is more important to growing your business, customers or employees? The answer is BOTH!
Customers want quality services and products for their money. If they find it at your establishment they will stay. If they don't they will move on. Your employees are a huge part of what determines that. If you treat your employees right, it will naturally bring in more business.
Let's take an auto repair shop for example. It is obvious that the staff at the front desk should be polite, dressed well and knowledgeable. The reception area should be clean and organized. That is where customers first interact with your business, it is your "packaging" and it makes your first impression. (Look here for an article on packaging your service based business) But what about the actual garage area?
If you have a dingy, dark and dirty pit of a garage, how will your mechanics feel? You will likely hear them complaining about the time they spend there. If they are complaining, do you think they are putting 110% effort into the job they are doing on your customers' cars? Not likely. They are probably doing the minimum just to ride out the time until they punch out.
Instead, provide a clean, bright garage with all of the modern tools needed. Then, the mechanics will be in an environment that allows them to enjoy their job. They probably got into it because they like cars, now they can work on the cars they love in a place that is comfortable for them. Then guess what happens ... The quality of their work improves because they are enjoying it! Skilled mechanics are attracted to your garage because they hear that it is a great environment to work in! Customers tell their friends how great of a job was done on their car! More business comes through the doors.
You rely on your employees to represent your company in every sense. Pay them fairly and provide a positive environment for them to work in. You will reap the rewards in more customers and a growing business.
Customers want quality services and products for their money. If they find it at your establishment they will stay. If they don't they will move on. Your employees are a huge part of what determines that. If you treat your employees right, it will naturally bring in more business.
Let's take an auto repair shop for example. It is obvious that the staff at the front desk should be polite, dressed well and knowledgeable. The reception area should be clean and organized. That is where customers first interact with your business, it is your "packaging" and it makes your first impression. (Look here for an article on packaging your service based business) But what about the actual garage area?
If you have a dingy, dark and dirty pit of a garage, how will your mechanics feel? You will likely hear them complaining about the time they spend there. If they are complaining, do you think they are putting 110% effort into the job they are doing on your customers' cars? Not likely. They are probably doing the minimum just to ride out the time until they punch out.
Instead, provide a clean, bright garage with all of the modern tools needed. Then, the mechanics will be in an environment that allows them to enjoy their job. They probably got into it because they like cars, now they can work on the cars they love in a place that is comfortable for them. Then guess what happens ... The quality of their work improves because they are enjoying it! Skilled mechanics are attracted to your garage because they hear that it is a great environment to work in! Customers tell their friends how great of a job was done on their car! More business comes through the doors.
You rely on your employees to represent your company in every sense. Pay them fairly and provide a positive environment for them to work in. You will reap the rewards in more customers and a growing business.
Tuesday, 18 October 2011
Empower Employees to Retain Customers
There is nothing more frustrating, when you have a complaint with a company, than to be making that complaint to someone who doesn't have any power to correct the situation.
As a customer, it is extremely frustrating to feel like you are getting no where as you try desperately to control your temper. It is also frustrating for the employee who is taking the complaint. They have to deal with an upset person while knowing that they have no real way to solve the problem.
If you manage front end staff, it would be wonderful to be able to have both the employee and the customer feeling good about that situation. It would help with both customer retention and staff loyalty.
The key is empowering the front end staff. Don't just use them as a shield between you and an unhappy customer. Give them tools that they can use when dealing with customer complaints.
Some examples of this might be:
Basically, the employee needs to know that they can talk to the customer, admit mistakes and offer an incentive to stay without having to "talk to the manager". The employee will feel empowered and have a sense of control in the situation. The customer will feel relieved that they didn't have to fight through a horde of front end staff to reach a manager who could correct the situation. You, as a manager or owner, will be relieved that you are retaining clients and not having to deal with as many unhappy customers.
Your front end staff is there to serve your customers. Give them the power to do it properly and everyone benefits.
As a customer, it is extremely frustrating to feel like you are getting no where as you try desperately to control your temper. It is also frustrating for the employee who is taking the complaint. They have to deal with an upset person while knowing that they have no real way to solve the problem.
If you manage front end staff, it would be wonderful to be able to have both the employee and the customer feeling good about that situation. It would help with both customer retention and staff loyalty.
The key is empowering the front end staff. Don't just use them as a shield between you and an unhappy customer. Give them tools that they can use when dealing with customer complaints.
Some examples of this might be:
- Give them authority to accept exchanges and returns on the spot.
- Allow them to give out coupons or vouchers as peacemaking items.
- Have a product that they can give away. (Perhaps a new product you hope to promote)
- Give them the power to sincerely apologize if your company or staff has made a mistake.
- Reward your front end staff for retaining a customer who complained.
- Be quickly available to your staff if it is something bigger than they can handle.
Basically, the employee needs to know that they can talk to the customer, admit mistakes and offer an incentive to stay without having to "talk to the manager". The employee will feel empowered and have a sense of control in the situation. The customer will feel relieved that they didn't have to fight through a horde of front end staff to reach a manager who could correct the situation. You, as a manager or owner, will be relieved that you are retaining clients and not having to deal with as many unhappy customers.
Your front end staff is there to serve your customers. Give them the power to do it properly and everyone benefits.
Monday, 17 October 2011
Know What A Customer is Really Worth
Every customer is worth something to your business. Knowing that number will really help when it comes to handling customer service issues.
Recently, I worked with a house cleaning service. In looking how they did things I noticed 2 policies that needed to be changed. One is that they would charge for an in home quote for new clients. The second was that if a cleaner had to work and extra half hour in a home because of a special circumstance (like an extra messy kitchen due to a party) , they would bill for it. Their belief was that any time a cleaner was in a home, the client should be charged.
Of course, clients wanted an accurate quote before they committed to having the company clean their home. And no one likes being nickled and dimed by their service provider. So I told the manager that they should provide the free quotes and let those over time instances slide, provided it is just a one time thing. She didn't like that idea...until...I got her to calculate what a client is worth.
She took her average clients hourly rate, multiplied it by the number of hours spent in that client's home in a single cleaning, then multiplied that by the number of cleanings in a year. It worked out to about $3000 per year for the average client.
That is when she realized that every time they refused to provide a free in home quote, they probably threw away $3000. Also, every time they billed that extra half hour, they lost some of the loyalty they had with the client and risked throwing away the $3000. These actions also limited the possibility of referral business, which could bring them other clients worth $3000 every year.
They were thinking small scale, "Let's bill every minute we can to make more money." When they should have been thinking on the larger scale, "Let's make our customers love us to create more business."
By tailoring their services to make the clients happier in those areas, they ensured the loyalty of their current clients and created more possibilities for referrals.
Know what a client is worth to your business in the grand scheme of things, then make decisions about your customer service policies accordingly. The happier they are, the more they come back and the more friends they send.
Recently, I worked with a house cleaning service. In looking how they did things I noticed 2 policies that needed to be changed. One is that they would charge for an in home quote for new clients. The second was that if a cleaner had to work and extra half hour in a home because of a special circumstance (like an extra messy kitchen due to a party) , they would bill for it. Their belief was that any time a cleaner was in a home, the client should be charged.
Of course, clients wanted an accurate quote before they committed to having the company clean their home. And no one likes being nickled and dimed by their service provider. So I told the manager that they should provide the free quotes and let those over time instances slide, provided it is just a one time thing. She didn't like that idea...until...I got her to calculate what a client is worth.
She took her average clients hourly rate, multiplied it by the number of hours spent in that client's home in a single cleaning, then multiplied that by the number of cleanings in a year. It worked out to about $3000 per year for the average client.
That is when she realized that every time they refused to provide a free in home quote, they probably threw away $3000. Also, every time they billed that extra half hour, they lost some of the loyalty they had with the client and risked throwing away the $3000. These actions also limited the possibility of referral business, which could bring them other clients worth $3000 every year.
They were thinking small scale, "Let's bill every minute we can to make more money." When they should have been thinking on the larger scale, "Let's make our customers love us to create more business."
By tailoring their services to make the clients happier in those areas, they ensured the loyalty of their current clients and created more possibilities for referrals.
Know what a client is worth to your business in the grand scheme of things, then make decisions about your customer service policies accordingly. The happier they are, the more they come back and the more friends they send.
Change to Attract New Business
When wanting to expand your business there are ultimately 2 things that can be adjusted to stimulate that change. One is your service or product, the other is your target audience. All shifts in what market segments you capture must come from an adjustment to one or both of them.
For example: Lets say a garage does the majority of their business through selling and installing tires. Their current clientele is made mostly of neighborhood people buying average tires for average cars. They want to grow their business by attracting more tire buyers. They basically have two options:
1. Change the Audience - Advertise heavily outside of their normal geographic area to attract drivers from other areas. They would likely have to provide an incentive to convince those drivers or have very effective advertising to be successful with this.
2. Change the Product or Service - Start stocking specialty tires of some sort. An example could be high performance tires. This would attract the auto enthusiasts that normally wouldn't have come there looking for tires.
This is a very simple example, but the point is clear. If you want to attract a segment of the market that you have not attracted yet, you must make a change to get their attention. In the end, those changes will be either to the service or product you offer, or who you offer it to. Evaluate both, compare possible changes to what your strengths are and what the competition offers. Then do it!
For example: Lets say a garage does the majority of their business through selling and installing tires. Their current clientele is made mostly of neighborhood people buying average tires for average cars. They want to grow their business by attracting more tire buyers. They basically have two options:
1. Change the Audience - Advertise heavily outside of their normal geographic area to attract drivers from other areas. They would likely have to provide an incentive to convince those drivers or have very effective advertising to be successful with this.
2. Change the Product or Service - Start stocking specialty tires of some sort. An example could be high performance tires. This would attract the auto enthusiasts that normally wouldn't have come there looking for tires.
This is a very simple example, but the point is clear. If you want to attract a segment of the market that you have not attracted yet, you must make a change to get their attention. In the end, those changes will be either to the service or product you offer, or who you offer it to. Evaluate both, compare possible changes to what your strengths are and what the competition offers. Then do it!
Friday, 14 October 2011
Packaging Your Service to Sell
In retail it is very obvious, products with more impressive packaging will sell better and for more money than similar products with bland or out of context packaging. How do you incorporate this into your own business if you provide a service rather than a product?
The packaging on a product is what creates a first impression with the consumer. The colors, words and designs used will create a certain emotion for a prospective buyer and lead them to wanting to pick up the product. As a service provider, your first impression must create that same desire in the prospective client. Your "packaging" is the total of all the things that your client sees before you start describing your business.
Obviously, your packaging must speak to the type of client you are dealing with. For example, if you consult on oil drilling solutions, you don't want to show up on a rig in a 3 piece suit. On the other side, if you are an accountant you should not show up to meet a client in shorts and a t-shirt. Your client wouldn't take you seriously. Dress in a way that speaks to the situation.
Here are some examples of what clients may see and make first impressions on (depending on your business, some of these may not apply). Find a way to make each one speak positively to the type of client you deal with.
Clothing
Hair style
Piercings/tattoos
Jewelry
Vehicle
Office
Storefront
Briefcase
Business card
Smile
Posture
Handshake
etc
Try to imagine through your customers eyes. If this was your first meeting with you, what would you see? What would you want to see? What would make you trust you and want to do business with you?
Great packaging sells. Know your target, package accordingly and sell!
Friday, 7 October 2011
Your Business Should Reflect Your Motivation
Earlier this month I spoke with 2 real estate agents. They had two very different philosophies of doing business. This lead to two very different life styles but netted them the same income in the end. I found it very interesting as both of them were very happy with the outcome. It was due to their differing priorities and goals for their business.
The first markets her business through high profile advertising. Billboards, radio spots and high quality brochures to several neighborhoods is her norm. She employs a full time assistant and a buyers agent to follow up extra leads. A normal month would see 8 to 10 deals being done. She has office walls decorated with awards and is recognized like a minor celebrity in the neighborhoods she works.
The second markets only through word of mouth and social networking. Coffee and lunch meetings, personal cards and phone calls to past clients is his was of bringing in business. He employs a virtual assistant and handles all his clients personally. A normal month sees 2-3 deals being done. There are very few awards on his office wall.
The first works several more hours per week than the second and shows a much higher production level for it. In the end, after expenses, they net about the same income.
Who has the better business plan? Both and neither! These are two people that have very different motivations and have created businesses that fulfill them in different ways.
The first feels fulfilled by knowing that she is a top producer in her industry. She enjoys what she does very much and wants to be at the top of her field. She accomplishes it and feels happy.
The second values free time and the ability to control his schedule. Awards don't matter to him but free time does. He accomplishes that and is happy.
When you start a business, examine your motivation. What do you want as a person from your business? Is it about recognition? Is it about money? Is it about flexible time? Is it about contribution to society? There is no wrong answer. You need to know your motivation and be comfortable with it. Then you can build a business that provides that very thing to you.
The first markets her business through high profile advertising. Billboards, radio spots and high quality brochures to several neighborhoods is her norm. She employs a full time assistant and a buyers agent to follow up extra leads. A normal month would see 8 to 10 deals being done. She has office walls decorated with awards and is recognized like a minor celebrity in the neighborhoods she works.
The second markets only through word of mouth and social networking. Coffee and lunch meetings, personal cards and phone calls to past clients is his was of bringing in business. He employs a virtual assistant and handles all his clients personally. A normal month sees 2-3 deals being done. There are very few awards on his office wall.
The first works several more hours per week than the second and shows a much higher production level for it. In the end, after expenses, they net about the same income.
Who has the better business plan? Both and neither! These are two people that have very different motivations and have created businesses that fulfill them in different ways.
The first feels fulfilled by knowing that she is a top producer in her industry. She enjoys what she does very much and wants to be at the top of her field. She accomplishes it and feels happy.
The second values free time and the ability to control his schedule. Awards don't matter to him but free time does. He accomplishes that and is happy.
When you start a business, examine your motivation. What do you want as a person from your business? Is it about recognition? Is it about money? Is it about flexible time? Is it about contribution to society? There is no wrong answer. You need to know your motivation and be comfortable with it. Then you can build a business that provides that very thing to you.
Subscribe to:
Posts (Atom)