When we start off in business, we often do so because we have a great strength. Whether, you’re a terrific salesperson or an intrepid designer, your strength is the vehicle to make you money. Unfortunately, it only takes about a week into your business when you realize what you do poorly. This can be customer relations, accounting, or…well, practically anything and everything that can go wrong when it comes to running a bootstrapped business. So what do you do? You only have so much time and effort, so do you build on strengths or fix weaknesses?
A little perspective: Almost everybody will always focus on their weaknesses instead of their strengths. This is true on a large scale too. There are 40,000 clinical studies on depression, but less than 400 on joy. Think back to being a kid—did your parents give you as much praise for your A+ in school as they did scolding for your C-? Probably not. Overall, weaknesses are seen not as areas we are lacking, but as Achilles Heels that are bound to destroy us and our business in the future.
But this isn’t the case. In fact, our weaknesses are areas where we need to work with over time. Just because we don’t do something well at this very moment, doesn’t mean we can’t become very skilled at it in the future. Instead of looking at these spots as weaknesses, plan for more time or do a little more reading in these areas, but most importantly accept that you are going to need do some extra work as a matter of course. Many weak areas can also be aided by special learning software and assistance from others in order to bolster your business until you can get up to the appropriate standards. But remember—a weakness worked at doesn’t become a strength.
Moreover, your weaknesses don’t generate income, your strengths do. So accept your weaknesses—outsource the work, find tools to help you, or spend a little more time on these areas—but build on your strengths because they are what will make or break your business in the long run. As your business becomes more successful because of these strengths, you’ll be able to hand off more of your weaknesses to other people. Thus, the damages your weaknesses do may only be short term, but the benefits of your strengths will define your future success.
Let’s face it—the economy is doing really bad right now. It may not require soup lines, but everyone is feeling the pressure weigh down on them. Wages are going down while expenses are going up, and worst of all as the value of cash lowers, bills start to pile up. This has meant a huge increase in the number of bills being left unpaid. With everything so tight to begin with, creditors and businesses are in a tough spot. They need their bills paid on time because they themselves don’t have much spare cash lying around. This has led to repossessions and canceled accounts for many people because of the apparent necessity to keep payers in line.
However, this isn’t the only choice businesses have. Yes, of course, bills need to be paid just for your business to stay alive, but a single paid bill isn’t as valuable as a customer that will keep returning to you again and again. Even in an economy where businesses may be hanging on from month to month, companies still need to look down the road and think about ways to maintain a strong customer base even in rough times. Moreover, as the economy will eventually begin to turn, the few customers you do have will be ready to spend more once the financial situation improves.
Does this mean not having your customers pay bills? Naturally, this will make them very happy, but it will put you out of business. No, customers still have to pay bills, but leniency should be exercised when it comes to late payments. Severely penalizing customers when they are delinquent for a couple months only trims them of extra cash they might have spent at your business. Now it may appear to be money either way, but it’s probably a definite that your customers won’t be coming back if you give them huge late fees for delinquent payments.
In a slow economy customers are always looking for the best deal. One way to still maintain your prices and offer a competitive edge is to offer a more lenient pay schedule. Doing so keeps your position exactly the same as before the down turn without doing much more than improving your customer relations. Additionally, consider that your customers are often in the same position as your business is—they have income and expenses that don’t always time up exactly. So, just because a customer can’t pay immediately, doesn’t mean they won’t have the money in the future.
Word of mouth is very important—good customer relations spreads the word about your business and can draw other customers from other businesses. You may take a wash for a couple months, but if this turns around and puts more people at your door, it will definitely pay off just like any investment.
Simply put—putting your customers out of business puts you out of business. Remember, your customers are not ATMs, simply distributing cash as you need it. Instead, they are people with memories and will develop loyalty to a company that shows them leniency; especially in a tough time. They may miss a bill every once and a while, but if you let it slide in this tough climate, your customers will be paying your bills for years to come.
Most successful entrepreneurs have a list of mentors and books that they have on hand acting as mantra for how we conduct and innovate our businesses. By being lucky enough to be one of those crazy work from home guys I find the discussions that I get going in my head from a good article or a book is needed to keep me sharp and often takes on the role of those old debates I used to get into with co-workers (Well that is the crazy shit I tell myself so I don’t attract attention to when I wander around my house in my robe yelling at myself).
Here is Part 1 of the books that always keep me challenged and pushing forward in my life and business even while wandering in my robe.
Trust your gut, the research is done and proven!
The Kolbe Concept and Kathy Kolbe’s work are both mind bending and life altering. These three books are a bit older now but they make no less of an impact now then they did when they were released.
When I was still working in a corporate environment doing marketing for a recruiting and coaching company I was introduced to the Kolbe A index. A test that validates our instincts and studies the Conative part of our brain. Kolbe Wisdom says that if we are free to be ourselves and faced with a task each of us will use a path of least resistance perfectly matched for ourselves to get to an outcome.
When I took the Kolbe A index and got my results it was one of the most liberating days of my entire life and gave permission to be who I am. I have long been branded on the ADD and ADHD scale but I and many other entrepreneurs will be happy to know that Kathy’s work attacks that the whole notion of this head on.
The impact of this work has been so great that I headed to Phoenix a few years ago to become a Kolbe Certified Consultant so I would be able to share this knowledge and coach people and businesses about it’s impact. So shameless plug time, if you have any questions about Kolbe don’t hesitate to contact me.
I have a lot more to say on the subject but I will do it in an upcoming series of articles, in the mean time if your are on twitter you need to be following @kathykolbe. At our growth seminar we were bugging Kolbe Corp that they need to be doing more in social media and now we have Kathy addicted to Twitter. Her tweets are always informative and will help to shed light on the tool.
Powered by Instinct: 5 Rules for Trusting Your Guts is a simple read done much like a conversation between two people. It might be to informal and lacking a bit of meat for some readers but it can be consumed in a few stress free hours.
The Conative Connection: Uncovering the Link Between Who You Are and How You Perform is Kathy’s first book and goes into a lot of the research, It was written in the 90’s so some of the research has changed but it is still very valuable information.
Pure Instinct: Business’ Untapped Resource This book goes into a lot of detail for how the Kolbe tools are used in a business group setting. I would suggest that you leave this one until you have a better understanding of the concept or if you like to read deep into a subject.
The “Secret” but built for Business without all the “When I wish Upon a Star” and still sit on my ass all this free money will come to me.
When I was on the road to getting the hell out of the corporate world and was looking for guidance for how I could take my small side evening business and make it more then just a hobby I got caught up in the whole “The Secret” movie explosion.
Do I regret it, not a chance. I credit myself with taking the time to study and listen to what the teachers from the movie were actually saying. In my opinion that 90 min movie will go down as one of the best pieces of marketing ever. Most of all it opened a dialogue to make it acceptable to say things like you are a business person who meditates.
If you take the time to look at the other coaching the teachers do you will understand that the Law of Attraction is only one law and a starting point. During the movie John Assaraf was the person in the movie that resonated most with me, I think because he came to it from a business perspective. I was on a conference call with him and his OneCoach partner Murray Smith when he said we all need to remember the next most important universal law, The Law of “GOYA” or GET OFF YOUR ASS. If you just sit on your couch and ask the universe to give you everything eventually they will come and take your house from around you and your seat out from under you.
From that I joined the OneCoach’s Business Mastery Program that taught me how to put the right things in the right order to create a successful business.
John and Murray took the process they were teaching clients with great success and published The Answer: Grow Any Business, Achieve Financial Freedom, and Live an Extraordinary Life It is a great read and provides a very good framework to help make sure as a business owner you doing the highest income producing activities that are right for your specific business.
I will be back with part two of my book list very soon. I also want to hear about your great reads and resources. I am an avid business, marketing and personal development reader so I am always on the look out for new concepts.
Again here are the books I talked about in this post:
Powered by Instinct: 5 Rules for Trusting Your Guts by Kathy Kolbe
The Conative Connection: by Kathy Kolbe
Pure Instinct: Business’ Untapped Resource by Kathy Kolbe
and The Answer by John Assaraf and Murray Smith
The lifeblood of modern business, networking is a vital tool for just about anyone with any interest in running their own business/department/team. Basically, anyone with half a brain should realize the importance of a large network of contacts—in industry, in the marketplace, in the media, or even with Average Joe on the street. Networking raises your personal and company profile, can be used to secure contracts or deals that may otherwise pass you by, and help cement links with clients, investors, suppliers and just about anyone else. However, some people find stepping into the potential social minefield that is the networking circuit to be intimidating, as well as very hard work. If you are one of these people, you need to realize that networking really isn’t that hard—you do it most of the time without even realizing it.
Before you even start to think about networking in earnest, prepare yourself with an arsenal of materials. The Chinese (undisputed masters of the art of business networking) have a simple rule of thumb whenever they go out on business: get business cards printed. Ninety percent of businesses in the U.S. don’t use business cards period, and of those who do only 25 percent keep them updated regularly. Once you get your cards, you should carry at least twenty on your person at all times, preferably in a nice little business card case. Make sure all details are up to date—the card should feature your name, job title, contact telephone number, business address and email as a minimum, and you should also consider including some of your skills and areas of expertise on the back.
Then, buy a second business card holder fro all the cards you receive. Always keep a pen and paper on hand to write down the name and details of anyone who doesn’t have a card, and the minute you get to the office or your computer write everything down in a database. Write where you met, what they do, and any other info you can remember, and build up a definitive list of the people you meet who you may be able to work with in some capacity in the future.
Be confident in your networking, and always think long-term. Don’t discount someone as a contact because they may not be able to help you out immediately. Don’t run up to people demanding their assistance, either. Networking is a two-way street, and quite often it pays big dividends to be the person offering help, rather than the one asking for it. Make yourself useful to your contacts, start building a relationship, and then take things from there.
Always be polite and cordial, even if you think the entire population of the room/party/event you are at are insipid pond scum not worth the light of day. The irritating, pompous pest with an attitude problem and personal hygiene to rival your average skunk may one day turn out to be your best client, or the one man in town who can provide what you need.
So, you’ve sat down with your annual finances, stayed up until the early hours of the morning and drank the local coffee shop dry, and now your finished company budget is staring you in the face, challenging you to stick to it. It’s not easy—creating a feasible budget is hard enough, but sticking to it can be an absolute nightmare. However, with a little dedication and a bit of advice, making the company dollar stretch as far as you want it to is not such a daunting prospect.
Always, always, always have a slush fund—a portion of your budget unallocated to deal with major problems or expenses as they come up. No matter how well-planned the budget, if John from accounts somehow loses $50,000, or Mary the receptionist gets pregnant and requires maternity cover, or a virus crashes and wipes your server and causes all your computers to start displaying the lyrics to REM’s Bad Day, you’re going to be very, very thankful for every cent not allocated. Always plan for the worst, and if nothing goes catastrophically wrong then anything not spent from the slush fund can either go towards next year’s budget or a damn good Christmas party.
Learn to trim expenses wherever possible. Keep a weather eye on stock levels, employee overtime, charged expenses and company credit cards. Try and negotiate deals on rent every time the contract is up for renewal. Remember that if you can lower the expenses on the budget, you’ll have much more of a safety net inside your slush fund for that inevitable server meltdown.
Keep a close eye on the inflow of income, as this can also affect the slush fund and expenses. If you start to make more than you budgeted for, don’t clap your hands with glee and laugh all the way to the bank—put some of it into the slush fund or any other strained area of the budget.
Similarly, never let a month go by where you do not keep an eye on your budget, comparing it to monthly income and expenditures. Make it the same date every month, preferably some time around the 25th to give yourself enough time to start making changes before the next calendar month comes in. Check your cash flow, costs and potential liabilities with a fine-tooth comb, and when you’re done get somebody else to look at it for you. If you can snag an accountant to help out, even better.
Lastly, do not get downhearted if, at some point in the year, you realize your budget is completely messed up and you’re going to overspend this month. You need to remember that budget projections are a best guess only and nothing more—overspend is practically unavoidable in today’s uncertain economic climate. Face one simple truth—chances are that you will miss your estimates. Of course you try to avoid it, but if (when) it doesn’t make you the worst businessman ever or a dunce with no financial acumen. Just pick yourself up, dust yourself down, and look for ways that you can get the budget back on track next month—firing John from accounts for losing that $50,000 may be a good place to start.
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