TAB-Scottsdale

KEYS TO BEING A SUCCESSFUL BUSINESS OWNER

I was just reading a post from the Business Owners Blog written in December from one of my collegues Ray Brun called SIXTEEN MIND FRAMES OF SUCCESSFUL BUSINESS OWNERS.  Even though this was written in 2006, the mind frames are even more important today.  He refers to Successful Owners of Businesses as SOB's.  Affectionately, of course.  One does not have to perform every mind frame to be successful.  However, if you are not doing at least 50% you may want to consider taking action.  Can you add more to the list?    These are also great discussion points at your Alternative Board meetings or with your particular peer advisory group.  I hope everyone has one.  Here is the short version of the Mind Frames. 

1.  There is always a Better Way to Do it.

2.  Being a Marketer Turmps Being a Master Every Time (my particular favorite).

3.  Risk is alway Manageable.

4.  The Answer is Somewhere - Don't ever be afraid to ask for help.

5.  Delay is Costly and is Unacceptable - Take Action NOW.

6.  I can Always find Self Confidence When I need it Most

7.  Where There is a Problem There is a System to Solve It

8.  There is no such thing as a problem only opportunity.

9.  Mistakes are a Requirement for Success - See my previous blogs.  Embrace them and learn from them.

10.  They Set high standards.

11.  Creeping Excellence Trumps Perfection - There is no perfect company.  If you know one tell me, so I can work there.

12.  Focus equals power -  Who doesn't have difficulty with this one? 

13.  It is About the Goal Not the Plan -

14.  They empower others.

15.  They Break Overwhelming Projects into Small Steps

16.  Having Your own Business is a Joy.

WE ARE ALL IN THIS TOGETHER

As business owners in the East Valley, we are all in this economic crisis together.  As a community of business owners what benefits one benefits all especially in these challenging times.  The Alternative Board (TAB) has benefited over 3000 businesses both locally and nationally.  The Alternative Board is where business owners help other business owners in a confidential “think tank” environment.  They work on various business concerns such as sales, marketing, cash management and personnel.  They hold each other accountable, in a way in which only peers can do.  I recognize that it may not be for you.  Believe me, I am okay with that.  At the same time, I talk to dozens and dozens of business owners every month.  Some maybe possible prospects for what you are doing.  I am passionate about helping, and if your service can benefit the local business community or one of my contacts, I will be happy to pass it along.  Regardless what you decide to do regarding TAB, each of us will have a resource if the need arrives.  Can we meet so we can discuss some of your business concerns, the Alternative Board, and get a better understanding of your business, so I can refer you when the need arises? 

NEVER WORKED HARDER FOR SO LITTLE – Isn’t it a great opportunity?

We had an interesting conversation at one of our Alternative Board Meetings this past week. All 6 business owners and I agreed that we have never worked so hard for so little monetary reward. Is this all bad? Not at all. It is teaching us how to run better businesses, and developing new skill sets or improving on old ones. For example, many businesses in the Phoenix area relied solely on referrals. CPA’s, lawyers, and a whole host of professional services never had to look for business. The market has changed, and the ones that are learning how to develop business rather than wait for it to come to their door will survive. Another example is how much has been learned about cash management and cash flow. Small businesses never really worried about this aspect of business as long as sales were coming in, it hid all the mismanagement in cash. Monthly profit and loss statements were never looked at. We had some business owners, that could not tell you were their bottom line was in previous years. Now everyone is looking daily at their cash and trying to project forward. These are lessons learned that will never be forgotten after this economy turns around. At our monthly “think tank” meetings we discuss these and many other tactics to supporting each others business. If you are interested, please do not hesitate to contact me. Allan Himmelstein allanh@tab-eastvalley.com 480-656-3565

CHANGING COURSE OF YOUR COMPANY

Because of the economy, many businesses must change course to survive. It may require some thinking out of the box. We have to look at this as an opportunity to improve and not a panic reaction to the economy. Here are several suggestions on how to approach changing course. 1. What is your personal biggest strength and what do you add to the bigger picture of your business? Recognize it, embrace your strength and maximize it to drive your business. This is what you really enjoy, and what got you this far in the business. We sometimes forget this in the day to day. 2. Be very realistic about the company strengths, weaknesses, opportunities, and threats. There is no perfect company. 3. Redefine your Company Vision to something that is realistic and attainable in the long term and with this economy. You must share this with your employees. They must buy into it. 4. Plan your work, and work your plan. Write a Plan which identifies what is critical to your success on the short term. Write out specific goals, strategies, and actions with time frames and review it on a monthly basis. Writing brings clarity to everything going on in your head. We pride ourselves at the Alternative Board in having the Business Assessment tools, the coaching, and the peer advisory boards to make changing course a reality and not a dream. We will hold you accountable and guarantee you success.

SIMPLIFIED CASH MANAGEMENT

There was an interesting post on the TAB Hotline about how upset business owners are with their accountants. CPA’s abilities are to look at the past and they do a fantastic job on your taxes. Accountants are NOT trained to be CFOs, and manage cash. This is just a small area where the Alternative Board can help. Seeing how other business owners manages their cash and holding each other accountable in the process is a beautiful thing to watch. We are working together to develop a simplified cash management system. Instead of staring at a Profit and Loss Statement, let’s try and be pro-active and project out the next 6 months. Do not think that Sales will cure all ills. That is probably what has gotten most companies in difficulties. One must take a look at the whole picture on a regular and consistent basis. To save money we arbitrarily cut employees, marketing, and sales efforts. Get out your Excel spreadsheets and try entering the following: Sales, Cost of Goods (include variable costs like sales commissions, overtime, etc.), Gross Profit, Gross Profit Percent, Expenses (Make sure to deduct the variable costs mentioned above), Extraordinary Expense, Net Income, Cash on Hand,Start from your fiscal year, and put in month to month numbers. Now put in all your projections for the rest of the year, and see where you need correction. Now your only problem is finding someone to hold you accountable and help you move forward. So join one of my Boards. If not find some advisors that have no agendas to please you, and ask for their help. Believe me it will be the best 4 hours a month, you will spend looking at your business rather then working in your business.

WHERE IS YOUR BUSINESS NOW AND WHERE IT IS GOING?

Difficult economic times call for ACTION.  One of the unseen challenges of small business owners is to know exactly where they stand with their customer, their employees, and consequently their business.  I do not know how many times I have asked business owner why they sell, and then ask one of their customers and get a completely different answer.  Honestly ask yourself the following questions: 

1. Is your management team in alignment with your Vision and Goals of the Company?
2. Is your organization aware of the factors which are critical to your success? 
3. What does your staff REALLY think about the direction of the company?
4. Do you really understand your companies Strengths and Weaknesses? 
5. Do your customers really KNOW what you do better than all your competitors, and do they pay for it? 

At The Alternative Board® we offer an on-line business assessment tool which will evaluate the company performance utilizing the input of yourself and key company employees.  We can also compare your results to those of companies with similar SIC codes.  It will give you an in-depth 360 degree snapshot of your business and will help you brainstorm ideas, create goals and strategies, and prioritize those areas most important in developing your business.  The key functional categories include:

Sales                                                                Operations

Marketing                                                          Corporate Finance

Planning                                                            Computer Technology

Customer Service                                               HR Procedures

Internal Communications                                    Employee Development

There are special sections for different company situations such as

Overseas Markets                                              Not for Profits

Time Management                                             Retail

Manufacturing                                                    Distribution

Planning to sell

 

Call to Action: If you are in the metropolitan Phoenix area and would like a complimentary TAB Business Vantage assessment plus a one hour face to face debriefing of the report please give me a call at 480-656-3565 or e-mail me at allanh@tab-scottsdalenorth.com .

 

 

SOBERING SALES STATISTICS

One of the more frequent discussions we have at our Board meetings is about hiring the right sales people, keeping sales people, and getting sales people to perform.  To different organizations sales people mean different things.  Do they have to be hunters or farmers?  Do the sales people have to be more technical or business oriented?  The questions are endless.

Joe Zente, my esteemed Alternative Board Colleague and CEO of Z3 Performance Development (www.zthree.com ) provided the following statistics.    

• < 10% of salespeople are capable of providing ROI (businessnet.com)
• The average sales turnover is approximately 53%
• 24% will not prospect—AT ALL
• From behavior assessments 8% can be considered hunters, 1% have full hunter skill set
• From behavior and value assessments 45% will not close
• From behavior and value assessments, the typical sales applicant has less than 23% of closing attributes

These are scary statistics.  Is there anything you can do about it?  If you are like me, you have a library of sales books on everything you can do to improve on these numbers, and raise the bar for salespeople and sales management.  Self-Analysis is great, but we all need a look from outside in to get a clearer perspective.  No one person has the answers.  Despite this information behavior assessments may only give 30% of the answer.  An outside advisor, coach, or an advisory board can be of tremendous help.  If you are interested in hearing more, please do not hesitate to contact me.  

SALES FACTS IN A RECESSION

 

My friend John Nelson from the Alternative Board provided some of these facts from a seminar he attended at IDC Research.  As we know, it is so much easier to use the internet to make buying smarter and easier.  Consumers are making more informed decisions, before they spend their money.

Recession Fact #1

Sales people need 20% more prospects to stay even.  No one can rest on their laurals, or think that a sale is coming in.  Do not assume.  Get as many prospects in that pipeline as possible.

Recession Fact #2

Companies that significantly reduce Sales & Marketing in 2009 will be gone in 2010.  This is a strong statement, but justified.  I would like to add that Sales will not cure all ills.  Cash Management, personel, and making sure you are touching base with all aspects key to your business is a must.  Do not accept mediocrity from yourself or your people.   

Recession Fact #3

Why do we lose sales? 22% of deals are lost to “no sale.” Don’t chase garbage, select better targets. Use a score card to identify good customers.  This is so true.  I do not know how many business owners I asked, who their target customer was, and they had no real idea how to identify.  The statement that everybody is my potential customer is just not true.  Benchmark which customers generate the most and are easiest to have and target new ones just like them. 

Recession Fact #4

Lack of insight into sales activity and the target markets loses 10% of all sales. Not having a full understanding of a standard processes, information, and interfaces, forced salespeople to lose sales.  The average business loses 10-20% of the business they had the previous year due to financial reasons, poor service, or unforseen competitive advantages.  Do you keep track?  What actions do you take to correct this issue? 

Recession Fact #5

It takes 20-30% longer to close a sale.  People just are afraid to buy.  It is actually quite strange, because it is the best time to buy. There is less business so better service, interest rates are low.  Why keep your money in a bank? 

 

In conclusion, comments are always appreciated and please do not hesitate to contact me directly. 

SALES IS NOT A DIRTY WORD

I had the privilege of hearing Harvey McKay at Enterprise Network.  For those of you who do not know, Mr. McKay wrote the very famous book “Swim with the Sharks without Being Eaten Alive”.  

 

Mr. McKay was asked how many salespeople do your have.  His reply was 600.  How many employees do you have in the $100,000,000 envelope company?  600.  Everyone is a salesperson for his company in one form or another.  How do you start getting everyone thinking about sales?  Of course, the shortest and best course is Ask Questions and Listen.  However, to get people really started no matter what their position in the company is for them to tell stories about helping customers, or problems that they solved for customers that they feel really good about.  There are a lot of other ways to make everyone in your company a salesperson that I would enjoy sharing with you.  For more information give me a call at 480-656-3565, drop me an e-mail at allanh@tab-scottsdalenorth.com  or invite me in to give a presentation to your group.  As a TAB facilitator and Coach, I am passionate about helping businesses achieve success. 

Better Communication - A Key to Growing Your Business

Throughout time miscommunication has always been a problem. Today, with the advent of e-mails, texting, and voicemails, miscommunication has become dramatically worse. We have more communication and greater misinterpretation. People are more likely to avoid face to face confrontations and difficult discussions, and rely on e-mails and voicemails. In these difficult times, where fear and security in companies is prevalent, clear communications understanding, and empathy are vital in growing your business. At The Alternative Board, we encourage open communication among business owners. This requires strong interaction,confidentiality, respect, and commitment. We use TABenos to assure that the egos are checked at the door. TABenos is derived from the Greek word “temenos" meaning: “A sacred palace in Greek Mythology where warriors felt so safe, they could take off their armor. We ask two basic points: 1. What characteristics have to be present for you to feel totally safe, so safe you can be completely honest and open with those around you? 2. What does your armor look like? That is, how do you defend yourself? How can the group recognize it, so that it does not impede further communication? There is a list of approximately 200 behaviors and attitudes under these two points. This is a great group exercise. If you are interested in getting more information, call me. DON’T e-mail. LETS TALK.