Friday, October 26, 2012

Who are the readers of this blog?

For the past several weeks I have posted regularly on this blog but have received no feedback from any of its readers.  Would you please let me know who is reading the blog, what you do, and what topics you would like this blog to address?  That information would be very helpful to me.  Thank you.

Thursday, October 25, 2012

Is there a better way to do your job?


In 1967 I enlisted in the US Navy and a year later was assigned to the aircraft carrier USS Enterprise where I spent the next three years of my life.  I enjoyed many aspects of Navy life and may have made a career of it except I had a wife and daughter waiting for me to come back home and resume a normal life.  I find I am often drawn to books that are somehow connected to the Navy which I why I first picked up It's Your Ship: Management Techniques from the Best Damn Ship in the Navy, 10th Anniversary Edition by Captain D. Michael Abrashoff, then captain of the USS Benfold, a ship he turned from one of the worst in the Navy to one of its top performing ships.

One of the first things he did when he took command of the ship was to ask each crewman, "Is there a better way to do what you do?"  He found that there were many better ways to do things and whenever possible he gave the people the power to make those changes.  It was a huge morale booster that not only led to higher performance but also to a higher retention rate.

Abrashoff understood something many leaders forget.  The people doing the job often know more about that job than anyone else including the so-called experts.  The funny thing is that these leaders knew that when they were working their way up the ladder, but once they sat down in the manager's or owner's chair, they suddenly begin to believe they know more than the persons doing the job.

For thirty years I was employed at a factory working various machine lines, the assembly line, receiving, and quality.  I was amazed how often someone would come to a line where I was working from their air-conditioned office and begin to tell us how we could improve the way we were working.  I once had a time-study expert conduct a full time study on a particular job I was doing on the assembly line while the line was shut down for repair!  I told him it was impossible to do a time study on my job when I couldn't even do the job.  He insisted I walk him through what I did and he would be able to determine how long the job should take.  His report wasn't even close to the actual time it took to do that job.  What an idiot!

This guy reminded me of a product engineer who insisted that a part they had developed would fit perfectly on a certain model of engine we were building.  There was one particular configuration where the mounting holes would not match up properly.  Time and again we complained about the problem, and every time he would demonstrate on his computer how everything matched up fine.  It took weeks before someone forced him to come to the assembly line and actually install the part.  He soon found out the part would not install on that configuration, and the part was re-designed.

When I became owner of a small business I made many mistakes which I explain in my book by that name, but one mistake I avoided was to believe that I knew more about what our employees did than they did.  In one of our earliest meetings I told them that if I got in their way while they were trying to get work done to just kindly ask me to step aside.  These were experienced, hard-working people who knew far more than I ever would about how to do their jobs.  Any changes that would be made would happen only after we discussed them, not just because I thought something different would be better.

How often do you ask your team members if they can think of a better way to do their jobs?  How willing will you be to give them permission to make the changes they identify?  When people have real input into how they function while at work they are usually much more productive and have much better attitudes towards their work.  That can quickly improve the bottom line of any business.

If you haven't read Abrashoff's book I would highly recommend it.  It's really an interesting read.


Wednesday, October 24, 2012

John Maxwell's latest book


 
A few days ago I was thrilled to learn that I had won a free copy of John Maxwell's latest book The 15 Invaluable Laws of Growth: Live Them and Reach Your Potential.  I have been a big fan of Maxwell for many years and was looking forward to reading his latest book.  To win a free copy was icing on the cake.

Many people don't know how easy it can be to receive free items from their social media accounts.  This is the second time I've won a free book this summer.  Earlier in the summer I actually won two free books and a DVD simply by responding to a question about how I planned to spend my summer.  I won Maxwell's book by promoting its release on my social media sites a few weeks ago.  The publisher had a random drawing of all the people who did that and give away 25 copies of the book, and I was one of the recipients.  Counting the other books and DVD I've won this year it would come to about $75.00 worth of free top quality material for very little effort on my part.  You may want to check out some of the sites you regularly follow and see if they ever do any promotions.

The book came today and I've already read the first two chapters.  In those initial chapters Maxwell argues that one cannot grow as a person and as a leader unless he or she is intentionally seeking such growth and is aware of what needs to be done in order to grow.  It seems so simple, and yet many people lack the self-awareness needed to do that.  They have never identified their strengths and weaknesses and thought about what steps they need to take to begin to grow.  Most people seem to think that growth just happens as it did when they were children.  We didn't have to do much to grow.  Every few weeks you could have someone measure you and you could see how much you had grown.  Well, there comes a time when physical growth ends, at least vertical growth, but the mental, spiritual, and emotional aspects of our lives should never stop growing.  But such growth will not just happen on its own.  We must be very intentional about seeking growth and very intentional about taking the necessary steps that will enable such growth to occur.

I became a pastor in 1981 with only a high school education and no pastoral experience.  I soon realized I was in over my head and began to seek growth opportunities.  About a year later I began my ministry education at a Bible college about a hour's drive from my home.  Working full time in a factory and pastoring a church meant that it would take me four years to complete their two year program, but shortly after graduating from that school I enrolled at a university also a hour away from my home to begin work on a college degree.  Since 1981 I have been committed to being a lifelong learner, and two years ago at the age of 62 I earned my doctorate.  All of those years I have been involved in ministry and working other jobs as well, but it was important to me to continue to learn and grow, and I've been willing to pay the price to do so.

I am not suggesting that you need to pursue a formal education, but you do need to be committed to a lifetime of growth if you want to grow as a leader.  If you're not sure how to begin such a journey I would suggest you begin by reading Maxwell's book.  I normally do not recommend books I haven't completed, but this book has started so strong and I have such confidence in Maxwell's writing that I will recommend this book without hesitation.  As you read the book keep asking yourself what steps do you need to be taking to grow as a person and as a leader.

Tuesday, October 23, 2012

The good is often the enemy of the best



A basic economic reality is that all resources are limited.  That includes your financial resources, your time, your manpower, your strengths, every resource you can think of.  With every decision there is an opportunity cost involved.  When you choose to do one thing you are therefore choosing to not do other things with whatever resources you are using.  Every dollar and every minute you spend in your business can never be used for anything else.  That is why we do not want to spend a single dollar or minute we don't have to.  Instead, the goal should be to wisely invest those resources into our businesses and our personal lives.

The usual enemy of the best is not the worst but the good.  Most people do not make decisions that they know will be harmful to them.  Most sane people try to make good decisions that will have a positive impact on their lives and their businesses, but too often we are satisfied with making the good choices rather than taking time to decide if this was the best choice.  You have X amount of dollars available to invest in your company.  Would it be better to spend that money on a new company vehicle or a new machine that would allow your employees to be more productive and efficient?  It really depends on numerous factors that you have to take in consideration as they apply to your particular situation.  The key is to realize that you can only invest that money in one thing.  I see too many small business owners driving new company vehicles while their employees are trying to operate with outdated equipment that costs the company a lot of productivity.  For editorial honesty, I will admit to being one of those owners at one time, and I regret it to this day.

How does one determine the best use of resources?  We have to go back to the vision of the company.  Where do you see your business in five years, and what must happen for you to get there?  Every investment of resources should be in line with that vision.  Not one moment, not one dollar should be spent that will not lead you to the achievement of that vision.  This means that once the vision is determined, strategic planning must follow so you can identify the steps that will take you to the fulfillment of that vision.

In closing, often the best investment of your resources will be in people.  Ultimately, it is not the equipment, the computer systems, the display pieces, the marketing, or anything else that will enable your company to succeed.  It will be the people who use the equipment, the computers, the displays, and who develops the marketing that will determine your level of success.  Investing in the very best people you can find and continuing to invest in their growth and skills will nearly always pay the greatest dividends.

Monday, October 22, 2012

Strategic Planning



If you noticed I have not been posting for the past few days it's because my wife and I took a much needed vacation to Panama City Beach last week.  It was great to get away for a brief time, but now it's time to get back to work.

 I was very pleased to read an e-mail when I returned from a reader of my book Mistakes: Avoiding the Wrong Decisions That Will Close Your Small Business.  He wrote to tell me how much he enjoyed the book and felt that it should be a required book for a class for entrepreneurs.  He said he especially appreciated the chapter on strategic planning. 

That was also one of my favorite chapters to write because too much of what small businesses do is open their doors each day, fight through the  daily challenges, and wonder why nothing much changed over the past year.  The reason little changed is because the owners of these businesses did little intentionally to make changes.  They spent so much time working in their business they had little time to work on their business.  They assumed that somehow magically things would change and improve without their doing anything intentional to making that happen.

Small business owners must spend a portion of their time with their feet on their desks thinking about the future of their company.  They have to have a clear vision of where they want their business to go over the next year or so and then determine what steps will be needed to get there.  Begin with the end in mind, and then you can work backwards to identify the actions you will have to take that will get you from where you are to where you want to be.  That is strategic planning.

To read more about strategic planning and other decisions you need to make to keep your small business strong I encourage you to read the book.  It is currently only available for NOOK reading devices and can be purchased here.

Thursday, October 11, 2012

The power of knowing your customers



 
When I sold my business a few years ago I did so at an auction.  Quite frankly, we had it for sale for some time with no interest.  We had already closed it which meant there was no money coming in, but there was still money going out.  An auction would at least stop the bleeding.  The nature of the business meant it would not be something that the general public would be interested in attending the auction which concerned me.  Fortunately, the auctioneer I chose had a long list of persons who had bought items at previous auctions, and they were listed in his computer by the types of things they bought.  He assured me he could send letters to at least 100 companies who were in the same business I was selling to invite them to the auction.

That may be why he was successful at what he did and our company was not.  I never compiled a list of customers by their interests so I could send them information about new products or services they might be interested in purchasing.  I often read that direct mail to past customers was one of the best marketing strategies a company could use, but my few attempts at direct mail were all sent to prospects, and none of them resulted in a single sale.  When it came time for the sale, most of the vehicles in our parking lot were from companies similar to mine.  His direct mail worked and brought out buyers who may not have known of the sale otherwise.

Since that auction I began going to occasional auctions myself.  I've been to enough of them that the auctioneers know what I'm most likely to buy.  Today I received a letter from the auctioneer who conducted my sale letting me know he has an auction scheduled for this Friday evening.  He wanted to make sure I knew there were a lot of items that I've purchased in the past that would be available.  He even sent a list of many of the items and directed me to a site on the Internet where I could see pictures of those items.  I plan on going.

Several years ago I purchased a number of suits from a salesman in a nice department store in a nearby city.  After the first or second suit I bought I began receiving notices from him letting me know about sales his department were having.  He noticed I always bought my suits when they were on sale, so he made sure I knew upcoming sale dates, not only for suits but for other menswear items as well.  Over the course of three or four years I purchased a new suit from him about every six months.  I also bought a number of dress pants and dress shirts from that same salesman.  He left for another job, and I never received another contact from that store again.  Now that I think of it, I never bought another suit there either.  That salesman knew me, he knew what brand suit I liked, and what I would pay for it, and he made sure I always knew when I could buy one for that price. And, I usually did.

How well do you know your customers and what they want or need that your company can provide?  What are you doing to intentionally stay in contact with them?  How often do you send direct marketing material to them?  Studies find that it's much easier to sell to a current customer than to a prospect, and it costs much less to get their business as well.  If you don't have a current client list you need to begin developing one and begin marketing to it.  It will add to your bottom line.




Wednesday, October 10, 2012

Leadership failure



My last post looked at the importance of character in a leader's life.  I want to continue that thought today by looking at how a lack of character caused well known leaders to fail.  These character flaws were not morality issues, but they were character issues all the same.  There are four primary areas of leadership in which many leaders fail to exercise character: authenticity, self-management, humility, and courage.  Tim Irwin, in his excellent book Derailed: Five Lessons Learned from Catastrophic Failures of Leadership (NelsonFree), addresses these in detail and looks at the failures of well known leaders such as Robert Nardelli, Carly Fiorina, Durk Jager, Steven Heyer, Frank Raines, and Dick Fuld as examples of how these leaders failed as a result of one of those four character issues.  It is a sobering book as one realizes how, if these leaders at the top of their game, could fail it is very arrogant of us to believe it could never happen to us.

Irwin explains that derailment doesn't happen all at once.  It's a process that involves making one wrong decision after another.  It may be that one's arrogance prevents him from listening to the warnings of others.  It may be that a leader lacked courage to make a critical decision.  The problem could be that team members saw a lack of authenticity in their leader and refused to follow her.  Anyone can have an off day without it resulting in failure, but when such character issues are dominent in a leader's life it is almost a certainity that failure will eventually occur.

To counteract the possibility of such failure Irwin recommends five habits of the heart.  They are
  1. The habit of openness - A willingness to receive feedback from others
  2. The habit of self-other/awareness - An examination of one's strengths and weaknesses
  3. The habit of listening to early warning systems - Paying attention to the stresses in your company
  4. The habit of accountability - A willingness to be accountable to others for our actions
  5. The habit of reliliency - The ability to bounce back from adversity
Each of these habits are critical to the success of entrepreneurs and small business owners.  Lacking any of them can lead to failure as Irwin demonstrates by studying the failures of the business leaders mentioned above.  If these individuals can fail due to a lack of character, so can any of us.  A habit is something that is developed by consistently and intentionally focusing on something.  It is not something we can do once, cross off our to-do list, and move on.  We must examine our actions, our attitudes, and our words on a continual basis to ensure that we are developing each of these five habits.  To learn more about how these other leaders failed and how to develop these five habits in your life you should read Irwin's book.


Monday, October 8, 2012

Character and leadership



 
There are two things required of someone who seeks leadership:  competence and character.  While both are important the character of a person is often a better predictor of long term success than competence.  Robert Clinton, professor of leadership at Fuller Theological  Seminary believes that approximately 70 percent of leaders do not finish well.  He agrees that leaders can do rather well for themselves through their skills alone, but the leader whose skills are greater than his or her character will eventually falter.

As a small business owner you create the environment in which your company conducts its business.  Every business, like every other organization, has a culture, and the owner of small businesses determine what that culture will be.  We do not have the luxury of hiding behind "company policy."  We created that policy.  We cannot blame some faceless "they" because "they" are us.  We model the type of behavior and character that we expect from others on our team, and that becomes an important part of our brand.

The phone rang one day in our shop, and as I started to answer it one of my employees said, "If it's my wife I'm not here."  The two of them had an argument that morning before he came to work, and he didn't want to talk to her.  It so happened that it was her, and when she asked if he was there I said he was and told him to pick up the line.  When he later hung up he was not very happy with me.  He said, "I told you to tell her I wasn't here."  I looked at him and said, "If I'll lie for you, I'll lie to you.  Is that the type of company you want to work for?"  He looked at me for a moment and walked off.  I wanted him, and everyone else on our team, to know that they could expect the truth from me even when it wasn't pleasant, and I expected the same from them.

As some of you know, during the years I ran our business I was also the pastor of a small church in our community.  We did some work for another pastor who was very slow to pay us.  He was well past 90 days late paying his bill, and some wanted me to take him to small claims court for payment.  I refused to do so on biblical grounds.  The Bible teaches that Christians are not to take other Christians to court.  I know that is a teaching that many Christian business people ignore as not a good business practice, but I felt strongly that it would be wrong for me to sue him for the money he owed.  Probably two or three more months went by before he came in and paid his bill in full.  We received our money, my relationship with my fellow pastor remained intact, and I did not violate a biblical principle.  I realize this would be not a recommended business practice, but I felt that it was part of the climate I wanted for our company.

The Golden Rule is always the safe option when one is confronted with an issue in his or her business.  If you were on the other side, how would you want to be treated?   Then that is how you should treat others.  If you would want grace, you must extend grace.  If you want people to be honest with you, you must be honest in your words and actions.  If you want respect, you must be respectful to others.  This is how one demonstrates character in his or her life and is how a culture of honesty and integrity is created in a business.  Such character will allow you to enjoy genuine success over the long term and make your small business a good place to work and with which to do business.

For an in-depth look at this issue I would highly recommend The Ascent of a Leader: How Ordinary Relationships Develop Extraordinary Character and Influence.  This very uplifting book explains how character enables you to have greater influence in your business, your home, and every other area of your life.


Saturday, October 6, 2012

When the dream becomes a nightmare

I begin my book Mistakes by describing the scene as trucks and vans left our business location at the end of an auction with our equipment, parts, tools, office equipment, everything.  It was one of the worst days of my life.  Fifteen years of my life went down the drain that day.  The only good news was that we were able to pay off our debts, barely, with the proceeds of the sale.

Like every small business owner I went into this wanting a better life for myself and my family.  This wasn't a new, unproven start-up but a well established business with a solid customer base and long-time employees.  On the surface there was no reason to believe this would not be a dream come true, and for the first 10 years it was.  The last five years, however, became a nightmare.  The reason I wrote Mistakes was to explain how that happened in the hopes it would spare others from having to go through my experience.

If I had to sum up one overall problem that led to the dream becoming a nightmare I would have to say it was a lack of focus on my part.  I didn't pay attention to the details.  I didn't spend enough time developing a strategy for how our company would continue to move forward into the future.  My competitors did and shot right on past us.  I didn't pay enough attention to the financial numbers, and although I knew they weren't good I assumed they would somehow, automatically (?) improve.  I didn't spend enough time working in our business, and even worse, much worse, didn't spend enough time working on our business.  A business can coast for a period of time, but eventually you run out of downhill, and when the road begins to run uphill you won't go far coasting.

You can purchase Mistakes for your NOOK reading device by clicking on the book cover in the right hand margin.  In this book you can learn about the mistakes I made, many of them not uncommon for small business owners, and how to avoid them so your business can continue prosper and be what you always envisioned.

Friday, October 5, 2012

Providing training for your team members

 
In the late 1980s I decided to begin work on a bachelor's degree.  I was forty years old, had a family, worked full-time in a factory, and was the bivocational pastor of a small church in our community.  You would think that would be enough to keep anyone busy, but I felt that I wanted to earn a college degree.  The company I worked for would pay my tuition for any class that would be applicable to my work there, and that included just about every class I took.  My cost was my time, books, and fuel driving back and forth to the classes.  It was a good deal for me and it's one that many businesses offer their employees.  It took seven years of attending classes to earn my degree, and a year after graduating I took early retirement and left that company after 30 years of service.  Some might think the company wasted their money, but I would disagree.

About three years before retiring a new position came open in our plant.  Being a union factory all shop jobs were assigned by seniority whether the person was qualified or not.  This job was different.  It would not be assigned by seniority, and the union would select the person.  The person who got the job would be a contact person for every customer the plant had.   This was the person who received information about quality issues for all the products our plant produced and had the responsibility to find out what went wrong and what corrections were needed to ensure it didn't happen again.  I became the person selected for the position.

It was quite a change for someone who was used to coming to work every day running machines that manufactured cast iron pulleys.  I had an cubicle in the office area and reported directly to the Quality Manager and the Plant Manager.  When I went out on the floor with a problem every supervisor knew that they had to work with me to resolve it.  I received phone calls from customers all over the world.  One day I had a conference call with customers in Scotland and Brazil.  When I began my new job our plant quality wasn't very good; when I left it three years later our defect rate was one of the lowest in our company.

To this day I am convinced that one of the primary reasons I was selected for the job was because I was working on my college degree.  That didn't make me smarter than anyone else, but it did demonstrate I had the capacity to learn and the ability to relate to others.  Having to write papers made it more likely that I could handle the written communication the job demanded.  The reduction in our quality issues on my watch demonstrated the union rep made a good choice in selecting me, and the investment in my college education was one that paid off quite well for the company.

Some companies seem to understand the importance of training their team members while others still view them merely as production units.  I've heard some argue that they were not going to spend much time training them beyond what they needed to do their job because they would just leave anyway.  That may be true, but as Zig Ziglar says, "The only thing worse than training someone and losing them is not training them and keeping them."  Providing regular training opportunities often brings dividends to a company they never expected.  At the time I began my college education the job I would later get didn't even exist in our company.

Most small businesses would struggle paying for college tuition for their employees, but there are numerous training opportunities for people that are fairly inexpensive.  A local community college might offer a course that would be helpful or interesting to some of your team members.  There may be a seminar you could take people to.  Many offer significant discounts for additional team members to attend making them very affordable.  There are many on-line courses that some of your team members may enjoy.  Investing in their training makes them more valuable to your company and will often make them less likely to want to leave your company.  Many return your commitment to their growth with a greater commitment to you.  Making training available to your employees is the smart thing for every business to do.

Thursday, October 4, 2012

If it ain't broke...break it.



Many of us have heard all our lives  "If it ain't broke, don't fix it."  It was a warning that messing with something that was working well might create more problems than it was worth.  That may have been good advice at one time, but it's lousy advice now.  I encourage people that "If it ain't broke, break it because it will soon be obsolete anyway."

We live in a rapidly changing world that requires people to adapt quickly or be left behind.  Your business plan from 2007 is probably not as effective today as it was just five years ago.  Hopefully, you're not even using that plan any more.  If your equipment is more than five years old it's probably outdated and inefficient.  If the goods and/or services you offer your clients have not been updated in the past 2-3 years they are probably coming across as stale and unappealing compared to what your competitors are offering.  Have you taken a fresh look at your marketing strategy to see what's working and what's not?  Have you checked out new vendors to see how they can add value to your business?  How often do you change out your displays to showcase new items?

One of the mistakes I made when I took over our business was seldom changing anything.  You can read about that, and many other mistakes I made, in my e-book Mistakes: Avoiding the Wrong Decisions that Will Close Your Small Business.  You can order it for your NOOK reading device by clicking on the book cover on the right column on this blog.  I made very few changes in how we operated as a company, and the changes I did make were often too small and certainly too late in coming.  Our competitors ate our lunch because I didn't want to change things that had stopped working.

Several days ago I admitted I liked watching Bar Rescue on television.  One of the things that the rescuer does is change virtually everything about the bar.  He changes the name, the decor, the items on both the food and drink menu, the uniforms the employees wear, and the way they go about their business.  One of the reasons the bars are not profitable is that nothing has been changed for years, and he wants to help create a new brand for the bar.

When you walk into your business tomorrow take a long look around.  Try to imagine what it would look like to someone who had never been in your business before.  Would they find it vibrant and exciting, a good place in which to do business, with goods and services that appeal to them?  Or, would it appear to be tired and outdated with people who look like they would prefer to be just about anywhere but there?  You may want to ask someone to be a secret shopper so you can get an honest opinion from someone with new eyes who may see things you'll overlook.

Change just for the sake of change is stupid, but making changes that improve your organization makes a lot of sense.  Don't hold on to something just because it used to work or your employees (and you) find it a comfortable way of doing things.  Business is too competitive and customers are now too demanding to hold on to things that no longer make good business sense.

Wednesday, October 3, 2012

Are you ready for a coach?


 
Many large corporations provide an executive coach for their top tier management.  They understand the return-on-investment for coaching is huge.  A study in Michigan a few years ago of sales managers who hired coaches found a 10:1 ROI in less than a year.  That represents a serious return.  Another study of 100 executives, mostly from Fortune 1000 companies, found a ROI of 5.7:1.  That also is an impressive return on the money invested in coaching.  In addition, coaching provided other advantages to the companies that provided coaching to their leadership.  People who were considering leaving the organization remained.  A more positive work environment was created.  Customer satisfaction and revenue increased.

Despite the many positives that surround coaching few small business owners and entrepreneurs use coaches.  Some of that may be due to the cost of an executive coach which can run from $400-800 an hour and even higher.  The entrepreneurial spirit causes many to take a "Lone Ranger" mentality that doesn't lend itself to seeking outside help.  A third reason may be that small business owners are so busy that they don't feel they have the time or energy for coaching.  All of these are quite short-sighted reasons that fails to view coaching as an investment in one's life and career.

A few years ago I was struggling with a career decision and really felt pulled in two directions.  Ironically, our organization was providing coaching training to our executive staff and part of that training included coaching by our trainers.  For several months I had the opportunity to be coached by our primary trainer and used that time to explore the two options I was considering.  By the time our coaching was completed I had made a decision which of the two I would take.  It was such a powerful experience that I began coaching others and have enjoyed a coaching relationship with several people.  The benefits of coaching later became the thesis for my doctoral degree, and next spring I have a book being published that explores those benefits.

How do you know when you need a coach?  Here are some signs that you are ready for a coach.
  1. You feel stuck and are uncertain how to begin to move forward again.
  2. You have a desire to improve areas of your life and leadership abilities.
  3. You need help in troubleshooting issues that are holding your company back.
  4. You sense it is time to make major changes in your life or career.
  5. You are going through a life transition and need help in processing that.
  6. You need someone you can talk to who will maintain confidentiality.
  7. You are ready to take your business to the next level.
Do any of these ring true for you?  Maybe it's time you invested in a coach to help you begin to move forward in your life and/or career.  If so, I would be willing to talk to you to see if we would be a good fit for a coaching relationship.  If you would be interested in such a conversation, respond to this post with your contact information and we'll see if coaching makes sense for you.

Tuesday, October 2, 2012

The secret to business success: Selling

 
There are so many things to do when starting a small business.  There are business plans to write, inventory to purchase, supplies and equipment to buy, perhaps hiring team members, and finding a good location.  You have to ensure that the facility is kept clean, that paperwork is kept in order, taxes and vendors are paid in a timely fashion, and you are adequately marketing your company.  This list could go on and on.  But, nothing has really been done until you've sold something.  Everything else may be important, but none of them mean anything if you are not selling goods or services.  You're not in business to keep your shelves full and tidy, you are in business to make a profit, and you can't do that until you sell something.

I've met store owners and employees who didn't seem to understand that.  Clerks have made me wait to check out until they finished filling up the shelf they were working on.  Some were clearly frustrated when I interrupted what they were doing with a question on how to find something in their store.  I want to give them my money, and they want to finish dusting a shelf.  Here's a novel idea for a business:  Take the money.  Make the sale.

The most important thing that happens in any small business is sales.  Without sales you have no income, without income you have no profit, and without profit you soon won't have a business.  Every team member reporting for work should have one clear focus: to sell something.  That should be their focus every day.  They may not be in the sales department, but every person in your company needs to understand that everyone is in sales.  Some may be selling the product or service your company offers while others are in the business of selling your company and its brand. 

It's funny that even some salespeople do not understand how critical sales are for a business.  Such salespeople may be great at doing a sales presentation, but they forget to ask for the sale.  They work hard at developing a relationship with a possible client, but never get around asking for the sale.  Or, if they do ask for the sale, many times they make it easy for the client to say no.

Here are some things your salespeople needs to consider when talking to your clients.
  1. Know your product, your client's needs, and how your product or service can better meet that need than your competitors.
  2. Ask questions.  This is how you learn your client's needs.  After asking your questions, shut up and listen.  Your client will tell you what he or she wants.
  3. Use their comments in your close.  Few people will reject their own ideas.
  4. Sell the sizzle, not just the steak.  People are much less interested in your product or service as they are in how well your product or service will meet their needs.
  5. Make it easy for your clients to do business with you.  Offer financing.  Meet with them at a time that is convenient for them, not you.  Develop policies that are client friendly.
  6. Be prepared with several possible closes and use them at various times in your presentation.  If they agree to purchase your product or service, stop your presentation, take their check and get a signature.  You've already sold them.  There are no extra points for completing your presentation.
  7. Accept that call backs are a part of sales.  It may take 7-8 call backs before you make the sale.  Sometimes this is the result of poor presentations or the salesperson's failure to clearly ask for the sale in an earlier presentation.  Work to lower this number.
Obviously, there is more to know about selling than what's listed here.  For a fresh approach to selling I recommend you read Dan Kennedy's book No B.S. Sales Success.  Kennedy doesn't mince words and doesn't provide his readers with a lot of fluff and theory.  His books are filled with practical advice that he has learned as an entrepreneur and business owner.  You can order the book simply by clicking on the image below.


Monday, October 1, 2012

Avoiding the mistakes

 
Few things in my life have been more painful to me than when we closed our small business.  For 15 years I had managed our family owned heating and air conditioning business until we were forced to close it.  I had resisted making that decision for several years but just wasn't able to turn it around to its former profitability.  We closed it down and sold everything at auction.  Inventory and equipment went for pennies on the dollar.  

The day of the auction was one of the worst days of my life because I knew that I was the primary cause of it.  Our dream of owning a business had turned into a nightmare because of numerous mistakes I made.  Within days of the auction I began writing a book on the experience called Mistakes: Avoiding the Wrong Decisions That Will Close Your Small Business.  I had learned a lot about how to manage a small business, but I learned it too late to save ours.  I felt like if I honestly told of the mistakes I had made and what I had learned from them it might help other small business owners avoid making the same mistakes.  It is far better to learn from the mistakes of others than from making them yourself.

Although I have published several books I could not interest a publisher in this one.  I think I know why.  Walk into any bookstore and check out the books in the business section and see how many of them address mistakes.  You would think from reading the titles of the books you find on most of those shelves that all you have to do is open for business and you can start making plans for your next Mediterranean vacation.  Publishers like happy, positive books.  They don't like books that explain how the author messed up and lost a business due to his stupidity.

Actually, I think my book is a positive book.  It gives positive advice on how to lead and manage a small business well.  It points out possible issues that can create problems, but after doing so give the reader good advice on how to avoid those issues.  That's positive.  It's also more realistic than what some of the business books I've read.  No small business owner will avoid all mistakes, but he or she can miss several of them if they know to expect them and if they have some idea of what to do when they do happen.  I think this book provides that which is why I decided I would release this book as an e-book on NOOK.

For over three decades I have been a minister.  Twenty of those years I served as a pastor and for the past 12 years I've been a denominational leader.  At heart I am a teacher, and this book will teach you about potential problem areas you may encounter in your business and how to address them in a constructive way.  My interest in teaching is also why I created this website and why I publish so many articles on small business leadership, entrepreneurship, and sound decision making.  I would encourage you to follow my blog as well as the articles I copy each day on Twitter and Facebook.  Every article I share may not interest you, but I bet some of them will.  If you get even a nugget from reading one of the posts it can prove to be a major contributor to your well-being.

By making the book available on NOOK devices I've been able to make it immediately available to you and to sell it for much less than what a publisher would charge for it.  I encourage you to purchase it.  I also invite you to be my friend on Facebook and follow me on Twitter to see the numerous articles I post nearly every day.  If you have questions you would like me to address please let me know, and I'll try to incorporate the answers in future posts.