Business Solutions - Business Coach | Blog

Sales are good. So I must be doing all right. Right?

3/5/2017

Business owners sometimes tell me that “sales” is the only number that matters...

(“That’s how we know if we’re winning!”)

Yeah, sales are an important number.

But guess what?

There are others that are just as important (if not more important).

Let’s look at Sam, a typical kiwi business owner who wants to take his business to the next level – grow his small business into a big business.

He’s been running his company for a few years now and is doing well with his goal - steadily growing at about 30% a year.

He is taking on more staff, has lots of new customers, and has worked hard on getting more sales.

“Sales are good,” he thinks, “I’m on the right track.”

He regards sales as the “all important number” in the business.

But if we look a little closer, there are some things Sam is missing.

Cashflow has been getting increasingly tighter.

Even though he is growing, his staff seem to be a lot more stressed and are making more mistake these days.

And lately, some of his bigger customers have been grumbling that orders are taking longer than they used to.

These are all signs he is heading for trouble if he doesn’t pay attention.

Sales are important but not the most important number.

Mainzeal had 7.5 Billion in construction projects but still went into liquidation
Pumpkin Patch’s turnover was 238 Million, now in receivership
Dick Smith Electronics are in liquidation, previous turnover of 87 Million

These companies all went broke, even though they had more sales than most NZ companies can only dream about.

Those companies are gone, while much smaller ones (like yours and mine) are still standing and actually making money.

The difference is, although sales were big, some of the other numbers were way off with these companies.

Here are some of the other numbers as a business you should be watching every single month.

Margins:

Many companies who focus on growth alone compete too hard to get business, at the expense of margins.

They end up with a whole lot more work without making more profits.

Cashflow:

This can be a killer for any growing business.

If you run out of money and the bank won’t back you, in just a few months you will be dead in the water.

Ignoring cashflow and focussing exclusively on sales is like rearranging deck chairs on the Titanic.

The reality is, as you grow you will have higher accounts receivable, wage bills, you will need to carry more stock, equipment, and gear.

These things all suck up cashflow and if not managed well, can become the iceberg.

Profitability:

Keep a close eye on which jobs or products you sell are making money and which ones aren’t.

Often you can be making good profits in some areas and leaking in others.

You must know which ones are leaking and why, as those leaks can get bigger quickly.

I was recently talking with a company that was losing over $100,000 and did not know why (don’t worry; we are sorting this out, pronto).

Customers Satisfaction:

Are you staying in contact with your customers to make sure they are still getting good service.

How many customers gave you good feedback and how many gave you bad?

Marketing:

How much new business did your marketing attract and are they the right kind of customers that are profitable to your business?

Staff:

Are your employees numbers growing but you’re not making any more money?

Watch this to make sure you don’t get too top-heavy.

Your time:

Keep an eye on where you are spending your time.

Are you putting out fires all day or focussing on the important parts of the business like training staff, talking with your best customers, sales, marketing, strategy, making better systems and more profit.

Stuff:

As you grow, you will need more stuff including equipment and gear, office furniture, computers and software, vehicles and maybe even bigger premises.

If you don’t know in advance how much this is going to cost and when you'll need this, it will be a very unpleasant surprise.

Once Sam gets a handle on these other numbers, he will have a whole new level of control he never had before.

If you have the right numbers when you need them, you have time on your side.

You will know early where the problems are before they get out of hand. If things are going south, you’ll know. And have plenty of time to adjust to get back on track.

But you will only be able to pull this off when you have the right numbers, which is much more than just the sales figures alone.

Now Sam can grow his sales further, be more profitable and have more fun doing it.

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Sales Just Sitting There Waiting To Happen?

28/2/2017

There was an old retired school teacher who used to work part time for me.

Wyn was a breath of fresh air and had more enthusiasm than most guys half his age.

He loved people (and they loved him).

Wyn even taught me something about sales, a little nugget I’ve used many times since with great success.

When I first met Wyn, he told me he had been a teacher his whole working life, except for one year when he was burnt out and needed a change.

He took that one year off and worked as a sales rep for a printing company.

And in that single year, he became the top sales rep, against others who had been there for years with long term accounts.

This is a guy with no contacts in an industry he knew very little about, a total business newbie, with no previous sales training.

But he became the top sales rep in just one year before returning to teaching.

He told me he did it with just one idea…

Use the company’s biggest asset…

Their customers.

He made a list of all the old customers who had not bought from them in the last year.

He phoned every one of them and asked a simple question:

“Do you still consider yourself a customer and if not, what happened?".

Some had complaints, some were dealing with the opposition, some had just forgotten who they were.

Then he would simply ask if they would give them another go - and many said yes.

So what can we learn from Wyn?

a) The sales figures from Wyn’s simple strategy of following up old customers were so great he outclassed the other reps.

Can you afford not to do this?

It is an easy way to revive old leads and get more customers on board quickly. These are sales just sitting there waiting to happen.

b) Keep in touch with your customers regularly and don’t let them go cold, forget about you, or be stolen by the opposition in the first place.

If there’s one thing you must have in your business, it’s a complete list of your customers.

Every current customer, every previous customer, those who have shown interest in doing business with you (leads/prospects/quotes).

Also, include suppliers and those who deal with your type of customers that might refer you business (referral sources).

This is basic but so many small businesses just don’t have a list.

You should have systems in place to capture contact details and keep it up to date.

Your customer list is your greatest asset and also your insurance policy if you find yourself in quiet times, ever have to shift premises, or need to quickly contact your customers.

Use your list to full advantage and keep ‘em sweet. Show them some love by communicating with them regularly.

You could entice them to buy new products or services you offer, buy bundles instead of a single product, add one new suggested item to their regular buy, tell others about your services.

How confident are you that your customers even know about every product or service you offer? Obviously, they don't unless you tell them.

Imagine the boost in your sales figures if your customers just spent a little more with you each time they buy, or just came back more often.

This is part of the benefits of keeping in touch.

What's the bottom line here?

Well, Wyn knew instinctively what the research tells us:

If you send an offer to our customers, those who have brought before are 5-6 times more likely to respond.

So, it is more economic and easier to get repeat customers and revive old customers, than get new ones over the line.

Don’t make the same mistake Wyn’s company made.

If you don’t have a list or you aren’t keeping in touch with your customers and contacts regularly, you’re letting your opposition steal your biggest asset without a fight.

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Why Getting Your Name Out There Doesn't Work & What To Do Instead

26/1/2017

Many businesses think if they can just get their name out there, truckloads of new customers will start flooding in.

It makes sense. I mean, how can people buy your fabulouso products or services if they don’t know you exist?

Yet this idea is a dangerous myth for the small business.

It could send you broke if you’re not careful…

(I’m sure we can all think of a few businesses that had a lot of brand recognition and were quite well known, who recently went broke.)

“Get your name out there” is a good battle-cry for mass media sales reps selling advertising or maybe a large corporate with a huge budget they are keen to spend.

Maybe if you’re Coca-Cola.

But not so good for small businesses.

Here’s why:

In a small business, every dollar needs to count.

The dollars you spend on marketing have to stack up and pull their weight.

You should *know* your advertising is getting you a return.

Questions you should know the answers to:

• How much did you spend in the last year on marketing and advertising?
• How many dollars in sales and profits was generated from this?

I have seen advertising budgets of up to $100,000 in relatively small companies not knowing what results, if any, they were getting - very dangerous.

Before you spend any more of your cold hard cash on sales and marketing, here are some things to keep in mind to ensure your dollars are an investment, not an expense:

Targeting
Aim at your ideal most profitable customers and talk specifically to them. Your “ideal” customer will likely be buying your highest-margin product or service, will repeat buy, doesn’t complain, values your company, and will tell friends about you.

Profiling
Get as many details about your ideal customer as you can including who they are (age, gender, location etc), typical interests, typical concerns they have before buying, what they like about you, etc. This will help you craft irresistible marketing that attracts lots of new business.

Be Different
Be the purple cow; don't be the same as everyone else. Show how you are different from your competitors - the more specific you are, the more you will appeal to those certain customers you’re wanting.

Be Where Your Customers Are - Not Where They Are Not
All your promotions and advertising should be where your customers are. For example, don’t advertise in the local rag if your customers don't read it.

Give A Reason To Buy From You
In all your advertising, include a call to action. Most times you’ll also want to offer a reason to buy from you now eg. a special incentive or deal for a set time period.

Most Importantly - Measure
Be specific about measuring everything you can - dollars spent, number of people your offer was exposed to, how many leads you got, sales produced. The more you measure, the more you can control, the better the results.

And - Face Reality
If your marketing is not working, own it. Try a different approach and if it’s still not working drop it and try something else.

Start including these important principles in your advertising and marketing, and if you get them right month after month, year after year they will *make* you money.

And you won't have to gamble anymore with getting your name out there, wondering, hoping, praying that those dollars will come back to you “one day”… throwing darts in a blizzard.

If you’d like to know more about results-based marketing, contact me and let's catch up for a coffee to chat about how I might be able to help.

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How To Get Everyone Heading In The Same Direction In Your Family Business

28/10/2016

Did you know it's estimated 75% of all firms in New Zealand are family businesses? This could be romantic couples, parent/child, brother/sister, uncles, aunts, in-laws, or many other combos.

(I offer some additional tips for couples in business, which of course has its own dynamics, in this blog, but keep reading, as this will be useful also...)

> The question is, how do you get everyone going in the same direction?

There are plenty of examples of family businesses that have thrived including Nike, Volkswagen, Samsung, and Walmart. Even at Facebook, Mark Zuckerberg’s sister and father have been involved.

A family business can be an incredible asset, where you build a future together, something you all can be proud of. It can last for generations and create real wealth in families.

It's also a fantastic training ground for the next generation, and an opportunity to learn business at a very high management level that is rarely available in other firms.

Of course, this is only if the business has been set up in the right way and family are heading in the same direction.

Because on the flip side, when family members are in business together - but going in different directions - it gets messy very quickly. And puts strain on both family relationships and the business.

When there are unmet expectations, frustration starts to build...

It can feel like you are holding a grenade in your left hand with the pin missing. Hoping you can hold on a little longer without an explosion. You might get away with it for a while, but eventually, if the grenade is not disarmed and put away, there will be an explosion in the wrong place, at the wrong time, causing the most damage.

Lack of direction can be an issue in any business, so no one is immune.However in a family business, in my experience it’s more obvious, the stakes are a little bit higher, the issues a bit more complex, and there is always history.

Some good history, some not so good. Little Brother remembers the time Older Bro didn’t back him in front of the other staff, or Dad can’t forget when Daughter’s inexperience cost a key account, even though it was 10 years ago and she now knows more about some aspects of the business than he does. (You may have a different story, but it will be something.)

History might blurt out in the heat of battle, or it could be a look that no one else recognises except you. But make no mistake, it’s there, and adds another layer to the dynamics of the business.

We'll leave the discussion on the emotional complexities there, but just remember to take them into account as they can derail plans quickly if not allowed for. Always ensure you’ve built in breathing space for all parties.

> To be in good shape, it's essential there is good structure in place to deal with direction and expectations of all family members involved in the business.

Here are some simple, practical steps you can take to make sure you stay on track:

1. Goals and Objectives

Meet regularly and define goals and objectives for the company.
Review what each family member wants to achieve in the next 1-3 years with the business.
Each family member should also consider their personal goals and how it all fits together.
Then talk about what needs to happen for the business to be successful.

If family members are employees, rather than owners, it is still smart to ask for and value their input and ideas, as you should of all your employees. Be transparent about the direction you want to take the company in, and make the job description very clear so there is no room for interpretation. Keep communication professional, and let your family member know in regular 1 to 1's the areas you are happy with and where they need to improve.

2. Exit Strategy

Have an exit strategy for both the business and individual family members.
Sometimes I have seen that a family member might want to do something else but feels that cannot leave because of others expectations; this is a bad reason to stay.
Make sure all family members are clear about their expectations around how much and who will be involved in the business long term, and if they are realistic or not.
If someone wants to leave, make sure this can be done with dignity for everyone so that relationships are still intact.
Take requests to leave as seriously as you would for another employee. Keep it professional; don't let it drag on.

3.    Clear Roles

Make sure you each have clear levels of responsibility, and everyone knows who is in charge of each area. Do staff know who to report to?

Too many chiefs and not enough indians is like trying to build a pyramid upside down – it only ends in rubble.

Often there are frustrations about sharing of information, or one person not being organised enough. If this is the case, you may need to make sure you have better systems in your business. This adds clarity, efficiency and takes the pressure off.

4.    Performance

Just because someone is family does not automatically mean they should get the top job.

Do they have the skills and knowledge to do the job well, or do they need more training?

Are they better suited to another position or do they just need to grow into the role?

Have clear guidelines on performance levels for the position. If a family member is not making the grade, have the hard conversations early before expectations are sky high. Be very clear on what should happen next - standards met by a certain date, extra training to be undertaken, or some responsibilities to now be handed on.

Remember to play to your strengths. Do some personality/skills profiling to find out where each family members strengths and weaknesses are if you aren’t sure.

Being stuck in a role they’re not suited for, is not going to be good for the person or the business.

5.    Rules of Behaviour

Have standards of behaviour for everyone, but especially family. If discussions get heated, have rules on what is acceptable and what is not.

A good start would be:

No raising your voice
Always listen first without interruption and take time to understand each other’s point of view
Respect for each other (especially when you disagree)
Never argue in front of other staff members

6. Mediator

If you cannot agree on an important issue, work with a trusted mediator to talk through the issues with you. Sometimes with another viewpoint, they can help you work through the problem from another angle.

It would be useful to agree ahead of time, when things are good, who this person would be if it were ever needed.

7. Board Meetings

Have board meetings monthly to go through financial performance and other aspects of the business. Any family members in management positions should be accountable for their role and for the performance of the company.

This is a business - and must run like one!

> Working with family can be a lot of fun. Where there is mutual respect, the older generation can bring experience and perspective and the younger ones can bring energy and fresh enthusiasm. It can be the best of both worlds!

Although, sometimes, despite best intentions, running a business together isn’t healthy. If you’ve tried everything and it isn’t working, implement an exit strategy.

At the end of the day, money will come and go, and you can choose to start or stop a business. This business may not always be in your life, but your family will be. So make sure you protect the relationships; if broken, this would be probably a bigger source of pain and regret than a failing business would be.

You don’t want any grenades exploding. It's just way too messy.

> I have plenty of stories from clients who, with a little coaching, are all heading in the same direction again and loving it.

If after reading this, you realise your family business is not in good shape, give me a call. (The longer you wait or ignore the issues, the harder it will be to fix.)

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What's Slowing You Down?

30/8/2016

I have just completed a course with Perry Marshall, and he talked about getting rid of the “barnacles” in your business and your life.

Not owning a boat myself I didn’t know much about barnacles, so I did some research and discovered they are quite a big problem.

Barnacles on a boat or ship are “a marine crustacean with an external shell, which attaches itself permanently to a surface”.

They are small but little by little over time they build up until eventually, they affect the speed and performance of the ship.

The US Navy take them pretty seriously spending over $500 million per year to keep them under control. According to Wikipedia, governments and industry worldwide spend $5.7 billion annually.

Left to their own devices, these things eventually affect hull structure, damage the motor, spread contamination and bacteria, and introduce unwanted species from port to port - while also burning up to an incredible 40% more fuel.

40% is massive.

I bet if you could get another 40% efficiency and profits in your business by getting rid of these suckers, you would be happy right?

I am also going to go out on a limb here and predict that in same cases it could even add up to a lot more than 40% of time savings, especially if you haven’t done any scraping for a while.

Barnacles are all the things that eat away at your time that produce little or no results.

Maybe it's time to get scraping and let go of all those things that are slowing you down.

Here are some ideas of things to get rid of.

It might be:

Too much time on Social Media
Customers that take up all your time with requests and complaining
(that you can’t make any money off)
Answering the phone all day
Cleaning up other peoples mistakes
Toxic staff
Too much time spent dealing with emails
Arguing with your partner about stuff that doesn’t really matter
Bad beliefs e.g. that you have to "do it all"
Working evenings and weekends all the time
Low-level tasks that could easily be delegated
Too much TV, Netflix, junk food or alcohol

Action:
1. Take a few minutes to write down all the barnacles you can think of, both in your personal life and your business (things you know you should get rid of, time wasters, things that are slowing you down, and things that are negatively affecting speed and performance in your business).

2. Pick the top 3 that are having the most impact and get rid of them by delegating, limiting their time or simply just dropping them altogether.

3. Use your extra time wisely to build a better business and a better life outside work.

4. Keep the list and check in with yourself each week for the next 4 weeks to keep you on track so you don’t pick them up again.

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Are you gripping the controls too tightly in your business?

22/7/2016

If you’re trying to grow your business or your business is sucking up all your time and life, autopilot is the answer.

The best businesses are on autopilot.

Here's why.

Let's imagine you are a pilot and you're about to fly a Boeing 747 Christchurch to LAX.

Your job is to fly the plane, but there are lots of other distractions that can disrupt you. Direction needs adjusting, air control wants to change the schedule, a passenger is sick. Perhaps you had an argument with your honey this morning or are just having a bad day.

You’re just one person, so how can you handle everything? Enter the most amazing invention - the super dupa autopilot - an automated system that will fly the plane without 12 hours of your constant, unwavering attention. The beauty of this system is it can be turned on or off at any stage.

For the bulk of our flight to LAX, the plane is on autopilot. Fewer errors and more time to focus on the bigger picture.

In some or most situations, the autopilot is even better than a highly trained pilot. Smoother, more efficient, and having a backup for the pilot makes us feel safer at 30,000 feet as we look out the window at the fluffy white clouds of possibility.

What happens in your business if you grip the controls too tightly?

If you hold on too tight, you have to run a whole business all by yourself. That’s kind of crazy!

Signs include:

Working long hours: nights, weekends... your family have forgotten what you look like.
Wearing all the hats from driving sales to pushing marketing to hours of endless paperwork to collecting money and everything in between.
Exhausted and frustrated.
Not enough cash in the bank when you need it and cashflow headaches abound.
Staff often grumpy and inefficient and everyone wanting a piece of you because all the numbers and systems are in your head.
Just to name a few.

What can autopilot do for your business?

When we’re talking about autopilot – we’re really talking about systems in your business. Get the right systems in place and your business will run more smoothly, more efficiently, more profitably and with way less stress. Your time will be freed up for more time with family – or to focus on important projects to grow the business.

Here are some of the areas you want to start putting on autopilot:

Financials on Autopilot. Systems that ensure good profit and plenty of cash in the bank when you need it.

Marketing on Autopilot. Getting high-quality leads and enquiries coming in every month without relying on you.

Sales on Autopilot. A sales process that consistently converts enquiries to customers without relying on you.

Staff on Autopilot. Checklists and procedures that ensure staff produce consistent quality work even when you’re not around.

Time on Autopilot. Your time scheduled so that there is always time for the important things... Are you controlling your business or is your business controlling you?

Does it really work?

I was talking with a client of mine recently about what happened when we put some systems into their business. By the way, this was a solid, reputable building company with over 30 years of experience, producing top quality work and a reputation to be envied. But their office systems were letting them down, meaning they had to be the pilot a lot more than they wanted.

In their words "things were overwhelming and chaotic". But now they have some good systems in place; they go on holiday for weeks (sometimes over a month at a time) and business is rocking even when they are away! When they come back, everything is running smoothly... solid systems and great staff take care of the business for them.

Now their autopilot is working, so they don't have to. They are still pilots some of the time, but when they want to be, and doing the bits they want to do - not being slaves to their business.

Note: autopilot doesn't mean you're asleep on the job. You still need to be alert and in control. The autopilot will alarm when it’s NOT "business as usual" and you need to take the controls. Staff know when to come to you, or when you check in on the systems and the numbers, you'll know if something needs your attention.

And here’s the real key: Because you’re not exhausted and running from fire to fire, seeing only what’s right in front of you - you're fresh to deal with issues as they arise, and you are able to see the big picture and take advantage of the opportunities you can now see.

So how long could your business be on autopilot for before things go wrong? Anything less than a month is a sign that you need better autopilot - Drop me a line and let’s have a chat.

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3 Ways To Boost Profit Without Having To Make Any More Sales

28/5/2016

In my last blog, we talked about 3 sure-fire ways to make more profit.

Today, I’m going to share with you 3 ways to boost profit without having to make any more sales.

There are many different ways you can go about making more profit in your business, whether you are in a growing market when profits are rolling in, or in a shrinking market when you’re a little worried. Regardless, now is the time to take control and make a solid plan to ensure your business is surviving and thriving.

Here are 3 easy ways business owners can make more profit by being just a little more strategic. You just have to know what to look for.

1. Key Suppliers

Every business needs to keep a close eye on costs. Suppliers are your biggest cost and a key area to look at. Use my 3-step system for success: First, look at your largest suppliers and write down the most significant products or services you buy from them. What does it cost you? Now, get in touch with other suppliers that sell similar products and get a comparison. You will find other suppliers will be cheaper in some areas.

Finally, negotiate with your current suppliers, quoting the better prices you have discovered from the others. Don’t just use the other suppliers pricing for leverage. Look at their offer genuinely and see if they are a better fit. If you were quoting for new business, you would want to be treated this way also.

When talking with your suppliers you might even discover you are still at old rates. If your business has grown, old pricing based on smaller volumes may not apply anymore. You should be able to get a much better deal. In most cases, just asking the question and pointing out your value as a customer and/or letting them know you can get a better deal elsewhere, will shake out improved prices and significant savings on your costs.

This will increase your margins and a little bit of attention here ultimately equals a lot more profit for you. Yay!

2. Stop Discounting

Another thing to look at: How often are you or your staff discounting when you don’t need to? Every business should have a clear policy on discounting. Without a policy, it is too easy for you and your staff to cut prices unnecessarily. It doesn’t seem like a big deal at the time, but discounting randomly means margins blow out and destroy profits.

I find that some business owners are naturally generous and discount far too often which has a big effect on their profits. You can still be generous to customers when the conditions are right, but you need to be in control. Ultimately, making good profit puts you in a much better position to give back to those around you including your customers, your staff, your family and your community.

3. Hold Your Advertising Accountable

Advertising is one area where costs can get wildly out of control. I have seen businesses waste thousands each year (sometimes up to $100k!) on advertising campaigns that are simply not working. They’re unhappy, but don't know what else to do, so continue burning cash month after month.

Don’t get me wrong: Advertising is vital, and everyone should be spending money on getting more customers into their business. But marketing and advertising must be tested.

How do you know? You must measure every dollar you spend on promoting your business. John Wanamaker famously said, “Half the money I spend on advertising is wasted, the trouble is I don’t know which half”. Always ask new customers “How did you hear about us?”. Do this for a little while and the results will be obvious. Stop what is consistently not working and you’ll spend less, in most cases resulting in significant savings on your advertising budget. And yes - do more of what is working! (which should pay for itself and then some!).

For more practical ways to increase profit, come to my "Rocket Your Profit" workshop - Tuesday 4 April 2017 - Otago Chamber of Commerce, Dunedin
Find out more here: https://goo.gl/3ZxbGL

3 Sure-Fire Ways to Make More Profit Even In a Shrinking Market

1/5/2016

I’ve heard a lot lately about “the economy” and customers spending less in some industries. There is concern from some business owners that their profits might be starting to shrink.

Now is the time you want to start concentrating on profits. Be strategic. You are the one in control, and what you do to position yourself will make the biggest difference to your profits.

With a bit of focus, even in a declining market, you can still prosper. However, you will need to concentrate on the right areas of your business to pull this off. You just need to know how.

Let’s go: Here are 3 sure-fire ways to boost profit and they’ll work whether you’re in a rising or falling market.

1. Increase Pricing

Many of my clients do this – and here’s the kicker: very few of their customers even notice! Did you know that even a 5% increase can make a big difference to your bottom line... example: if your sales per year are $1 Million, a 5% price increase gives you $50,000 extra cash in the bank!

What about the fear of losing customers? Well, say you did lose some customers. If your margin is 20%... and you put your prices up by 10%... you’d get the same gross profit even with 33% less sales. Are you likely to lose 33% of your sales as the result of a 10% price increase? Unlikely.

2. Sell More Higher Margin Products

Do you know for sure which of your products/services have the highest margin? Take a good look at your range and work out all margins (on paper). Once you know which products/services to focus on, promote promote promote, to both existing customers and new prospects.

Just being attentive and giving your best products a little push will give you much better results and more profit. Small gains add up.

3. More Leads

Okay, what is a “lead”? We're talking about connecting with a person or business that has an interest in your product or service and the authority to purchase it.

How many new leads per month do you need? How many are you getting? These are numbers you should track.

Every business needs a consistent stream of new leads. Profile your ideal customer (i.e. most profitable, will place a decent sized order, good margins on what they buy, will repeat buy). Target them specifically!

Putting into action a strong plan to get more leads will mean a nice boost in profit. (Of course, you win even more if you convert the maximum amount of these leads into solid buyers and loyal fans, but that is a whole other conversation.)

For more practical ways to increase profit, come to my "Rocket Your Profit" workshop - Tuesday 4 April 2017 - Otago Chamber of Commerce, Dunedin
Find out more here: https://goo.gl/3ZxbGL

Would Your Business Survive This?

1/4/2016

Imagine for a moment you are at the hospital, and the doctor is explaining to you that your wife/daughter/father… is very sick and over the next few months, they will be fighting for their lives. After the initial shock and as you support them through this, you start realising you are not able to put the time into your business that is needed.

Slowly but surely the business starts to stutter; small problems become bigger; staff are not "stepping up" like you need them to; cash flow starts to get tight, and you just don’t have the time to sort these things out. It’s becoming necessary to be at the hospital more and more, but if you don’t resolve these problems with the business, there is going to be one more casualty.

If you were in this situation, would your business survive for a week, a month, six months, a year? Would it continue to produce profits and income for you, or would it struggle to survive?

Here is the not-so-secret secret: Your business doesn’t care what’s happening to you. It just reacts to what you give it.

Your business is like a plant. If you give it water (customers), sunshine (good systems and staff), and good soil (the right market), it grows and flourishes. But if you neglect it, forget to water it, and put it in the wrong place, it will struggle. Leave it alone for too long and eventually it will die.

What if you found the perfect place for your plant, set up an automated water supply, and gave it nutrient-rich compost? Sure, you still need to check on it from time to time, but if you are away for a while, it would be okay. The plant doesn’t care what is happening in your personal life or if you or your family are healthy or well. It doesn’t understand and never will. To live and flourish it just needs what it needs.

I have seen businesses too reliant on the owner get into trouble very quickly. The owner experiences an unexpected personal crisis, can’t work for awhile, their attention is elsewhere. All of a sudden jobs start going wrong, customers start complaining, cash flow dries up, work stops coming in; it’s very very stressful.

As we all know (especially in Christchurch), unexpected things can happen in life. Circumstances can change in an instant, and your whole world looks different.

What kind of stuff can happen? Well, anything.

• Trouble with your marriage/partner
• A family member is very sick/Life-threatening illness
• Death of a loved one
• Personal injury or illness/chronic pain
• Spouse/partner needs a minor or major operation
• Addiction struggles (your own or a family member)
or
• Staff you rely on are experiencing one of the above

The list is endless, but you get the idea.

By the way, although the odds of these things happening to you in the next year are relatively small, if you look at the list entirely, the chances are at least one of these things will happen to you or your staff.

When it does, you will not be able to give the time and effort to your business that you once were. You will need space to deal with these important life events. (Even if you are still spending time in your business, you won’t be at your best).

I think we all agree family is more important than business. So if someone you love needs you, you need to be able to step away from your business without things falling apart.

In these storms, you need a business that will look after itself for a while or at least survive with only a little focus and help from you.

Remember too there are plenty of good things that affect your business also, although these are easier to see coming.

• Weddings and new relationships
• Pregnancy and new babies
• Moving house
• A big holiday or trip overseas

Think about what happened last time you took a few days or months off. What shape was your business in when you got back? Maybe you don’t take holidays anymore because the mess you come back to is just too stressful…

The good news is with planning and some good strong systems, it doesn’t have to be this way.

Two of my clients not so long ago each had an unexpected health crisis, and both of their businesses have come through in good shape. I am not saying the businesses were performing at optimum capacity, but they kept functioning properly in spite of the owners absence - continued to produce results, perform well and provide income. Staff knew what to do, so there was no extra stress on the owner.

You know what? Every single circumstance I listed above has happened in the lives of business owners I work with, at least once, in the last two years alone! And some in my own life as well.

As a business mentor and coach, I know how important it is to hope and plan for the best, but also have a plan for the worst.

So to sum up: your business needs protection. You need to make sure you have everything in place so, just like the plant, it will carry on regardless of your circumstances.

PS:
If you need help, email me to ask about the 7 Most Important Action Steps to ensure any business would survive a personal crisis.

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Do your customers trust you?

26/2/2016

Do you find it hard to compete against the large marketing budgets of your competition?
Does it seem like their “name” just seems more credible to your market?

Are you not converting as many quotes or inquiries as you could?

Often “price” is quoted as the main reason why reps say they lost the sale - but is this true?

Research shows that in only 15% of cases, price is the sole factor. A staggering 85% of customers say that factors other than price influence the decision.

Credibility or Trust (in the sales rep or company) is a major factor in the decision.

Here is why...Have you ever paid for a product or service and it turned out to be a disaster?

Once I brought a pair of gumboots from a large chain. They were cheap, and at the time it seemed like a good deal. But after using them 3-4 times they split, so I took them back and exchanged them for another pair. Same thing happened - I didn't bother taking them back again. I had such a small amount of use out of them and if I look at the time I spent going back and forth, these were actually a very expensive pair of gumboots compared to a higher priced longer lasting pair.

For you it could be a shoddy tradesman, a faulty tablet, or a bad car. Whatever it is, we have all had an experience like this at some time.

Guess what? Potential customers who come across your business have had these experiences too. You can bet they will be asking themselves:

Is this a good company to deal with?
Are they going to give me good advice, or just try to get my money?
If there is a problem with my purchase, will they make it right?
Can I trust them?

So, how can your customer know if you are good or not?

You can say how good you are all day long, but the problem is that every company says they are good - especially the bad ones. So how do you separate yourself from the pack? One way is by providing "social proof" in the form of recommendations from others that have already dealt with you.

If your potential customer can see that others have dealt with your company and had a good experience, they feel the chances are, they will be looked after too.

As Mark Zuckerberg says: "People influence people."

Social proof/Customer testimonials is usually found in the form of favourable quotes from your happy customers aka "What our customers say about us".

If you want better conversion rates and more customers, then you should be using these whenever you can including:

On your quotes or tenders
In advertising
On business cards and thank you cards
On your website
Online – on LinkedIn, Facebook, Trip Advisor etc (depending on your industry)

You want lots of testimonials, and the more detail the better. Here are some of mine and you will see they are quite detailed and specific. If a company is looking for similar results to these, it helps them decide knowing that others have had similar problems and achieved results.

"With Daniel’s continued support we were also able to increase our profit by a massive 86% in just nine months, and have over doubled our sales and staff at the same time, which has been awesome."
Stewart Contracting

"With Daniel's help, we now have some great systems in place in all aspects of the business which has meant that we have most nights and weekends free again, staff are now much more manageable, quality of work is better, and we have clear direction for the business."
Hurunui Drainage and Plumbing

"The increase in the first year was 8% in sales, increase in margin 34%, increase in our net profit of 92%. We’ve been struggling with our margin and always thought it could be better but didn’t know how to put that together – and with Daniel’s help we’ve got there."
Woodend Nurseries

To get good testimonials, ask your best customers for a written testimonial when you have done a great job and they are really happy.

When writing a testimonial some customers will be very happy to oblige, but struggle to write it down. So you can make it easy for them by asking them some questions like:

What problems did you have or want to avoid when seeking our product/service?
What concerns did you initially have about using our product or services?
What benefits did you have from using us?
How did you find us to deal with?

Then put the answers together into a testimonial. Very important to let your customer see the final version and encourage them to change anything that is not accurate.

A good testimonial tells a story and addresses the problems or concerns your prospect might have when deciding about your product or service.

Many companies don't ask for testimonials or are not sure how to use them effectively, so put yourself ahead of your competition and attract more customers, convert more sales and have fun hearing how happy all your customers are.

Action Points for you:
1) Start collecting testimonials from current and previous customers
2) Use testimonials when quoting new jobs, on your website, and in your advertising

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<<Previous

Sales are good. So I must be doing all right. Right?

Sales Just Sitting There Waiting To Happen?

Why Getting Your Name Out There Doesn't Work & What To Do Instead

How To Get Everyone Heading In The Same Direction In Your Family Business

What's Slowing You Down?

Are you gripping the controls too tightly in your business?

3 Ways To Boost Profit Without Having To Make Any More Sales

3 Sure-Fire Ways to Make More Profit Even In a Shrinking Market

Would Your Business Survive This?

Do your customers trust you?

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