“There was once a Countryman who possessed the most wonderful Goose you can imagine, for every day when he visited the nest, the Goose had laid a beautiful, glittering, golden egg.

The Countryman took the eggs to market and soon began to get rich. But it was not long before he grew impatient with the Goose because she gave him only a single golden egg a day. He was not getting rich fast enough.

Then one day, after he had finished counting his money, the idea came to him that he could get all the golden eggs at once by killing the Goose and cutting it open. But when the deed was done, not a single golden egg did he find, and his precious Goose was dead.”

A white goose

Every time I hear this story, I’m reminded of a conversation I had with a relative of mine a number of years ago. In passing, I happened to mention that after 25 years, I was thinking of selling my business and taking my chips off the table.

To my surprise, he immediately responded that it was a terrible idea and that I should just hire a manager, sit back, and collect an ongoing dividend. “So don’t kill the Goose that laid the golden egg” he said.

“Theory is great,

until it is put into

practice”

Now this is a fine idea in theory, however as we all know, many theories are only good until they’re put into practice, then they just fall apart.

What really set me back with his theory was that he had never c0me close to risking his future on anything remotely entrepreneurial. He had a secure position, plus a bullet proof pension. That is far different than the life of an entrepreneur.

We do it all!

As owners, we deal with far different issues than being a corporate manager. We don’t have the luxury of having an HR department to handle hiring and discipline issues. Nor do most of us have a CFO to manage cashflow, payables and receivables. No, we tend to do it all.

In addition, we carry the burden of our family and employees futures on your shoulders. Let’s not forget the hours spent worrying how we are going generate revenue during a particularly lean period or wondering where the next threat to your business lies.

a golden egg

Let’s face it, if we are honest with ourselves this is what we signed up for and for the most part these challenges are what drive us forward, but the list of things that preoccupy us is endless. And unlike an employee, we don’t leave these worries at the office. They are always lingering just below the surface, 24-7.

This theory of hiring a manager to run your business is a great idea if your plan is to expand your business holdings in other areas. This is because you are still engaged. However, if you have reached a point or age in your life where you’ve achieved your goals or are no longer motivated, then this is just a bad idea.

For many of us, we have built our companies up over several years and any success we’ve enjoyed is a result of keeping an eye on the critical metrics of our enterprise. Turning everything over to a stranger in the hopes they will be as diligent as you have been, is a bit of a stretch.

Of course, if you’ve built a large enterprise and have the luxury of professional managers in place, then stepping away may work. But this is not the reality of most small businesses.

No, its never as easy as just walking away and have someone send you a check every month. There’s just too much at risk.

When you consider that most small business owners have upwards of 80% of their wealth tied up in their business, you’ll certainly need to stay engaged in some manner, lest you wake up some day only to find your business wrecked on the side of the entrepreneurial highway. This is not like a guaranteed annuity that sends you a check every month until you die, without ever lifting a finger.

Further, do you want to risk having to reengage in your business after an extended absence from the industry if the manager doesn’t work out? If you’re like most of us, the answer is probably no!

What the uninitiated don’t realize is that most owners decide to sell because they feel it’s time to move on and take their chips off the table and leave the worries behind.
Hiring a manager and hoping they do well just gives you one more thing to worry about. Isn’t that what we are trying to leave behind?

The moral of the story

Every fairy tale has a moral and so does this one. It’s simply, watch where you get advice! It’s always easy to be an armchair quarterback and offer an opinion when you’ve spent your life on the sidelines.

Let’s remember that it’s just a fairy tale, there never was a goose that laid the golden eggs.

 

You may also enjoy SBM #42  Successful People Do the Hard Stuff

Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

The reality of being a small business owner is that you are going to have difficult clients. How you deal with them comes down to how much you are willing to endure.

These are the clients that hire you because of your expertise, but then try to tell you how to run the project. They can also be the type that doesn’t respect your time or are late in getting you the information you need but still expect you to meet the original deadline. Of course, let’s not forget those that expect you do more than originally agreed upon, and don’t think they should be charged more. I could go on, but you get the point.

(more…)

For Thanksgiving we decided to get the whole family together and rent an Airbnb. Since our family has grown significantly over the last few years with marriages and the explosion of grandchildren, we now require a much larger accommodation. 

For the most part, many of the larger places also come with a higher price tag. In keeping with the higher price, such locations typically boast of a higher level of amenities. This is all good and is what it is.

As one would expect, with a higher price tag, there is an expectation that everything should be in working order and that cleanliness should be a priority, especially during this Covid era.

Person lying in bed-complacency

Unfortunately, what we encountered is a case of what I refer to as a “Lazy owner”. This is something I regularly caution all business owners against. No one sets out to be a lazy owner, but it happens to most of us at one time or another. Another term that can be easily substituted for Lazy owner is – complacency.

Complacency doesn’t just happen overnight, at least not for most people. No, it creeps in over time, where little by little we let our standards drop.

Short term vs long term complacency

Short term complacency is easy to understand and why it happens. When you consider that as entrepreneurs, we are always on and even for the best run companies, there are times when we have more issues to deal with than available resources. So, in our haste, we might let our standards drop a little.

However, once the storm has passed, conscientious owners usually up their game and re-establish their standards. Not ideal, but it happens.

Then there is the issue of long term complacency that has the potential to damage your business reputation. This kind of complacency truly reflects the lazy owner and is rooted in arrogance.

I say arrogance because the owners believe that they have a great product or service. It might be because it is popular and in demand now, so they feel they no longer have to try as hard anymore and dismiss any feedback as whining.

It’s been my experience that these owners used to sweat every detail about their business. They did so in order to establish themselves so, hard work is not foreign to them. In addition, their current success, reinforces that they have good instincts. Unfortunately, these good instincts can also lead owner to reject and negative feedback, because they think they are in tune. This combination can easily lull an owner into complacency.

Unfortunately, they fail to realize that they must put forth some effort in order to uphold those original standards. Sadly, many let success go to their heads and over time they lose sight of the finer points of their business and good enough becomes the norm.

Our experience

The Airbnb we selected had very high ratings and came with a price tag of $800/night. Not cheap but considering the size of our gang and the promised level of amenities, it was acceptable.

In general, the property met our expectations, however on closer observation, signs of complacency were everywhere. The following is the list of deficiencies we encountered during our 4 night stay:

1. Numerous burnt out light bulbs.
2. Very weak or no Wi-fi in many parts of the house. The listing stated working wi-fi however, the router was situated in a bedroom in the far corner of the original stone farmhouse which is not conducive for signal travel. Therefore, most of us had to use our cell phone data plans.
3. Satellite TV not functioning.
4. Water dispenser/ice machine on the fridge was non-functioning.
5. Remnants of leftover dry foodstuff from previous guests including empty containers.
6. An instruction manual that included updated data that was placed behind older instructions. The binder was full of with updated handwritten notes that conflicted with printed sheets and chalkboard information i.e., Wi-fi password, security codes, etc.
7. Numerous hairs found in and around master bedroom and bathroom.
8. A severely stained mattress and no mattress cover in one of the rooms. Unfortunately, it was not discovered until we were checking out
9. Unresponsive owner to text messages.

Except for the cleanliness issues, such as the hair and mattress cover, none of the items were a deal breaker, but it goes to show a level of inattention that is not acceptable.

So, what should have been done?

1. This owner should be doing is a quick walk around inspection between guests after the cleaning crew had left. Doing a walk around with a checklist would ensure the property was up to standards and that the cleaning crew was maintaining the property. I call this trust but verify.

2. Check the instruction manual. How hard would it be to check that the instruction book was up to date, without conflicting information? Writing in new information and scratching out the old is not acceptable.

3. If the appliances don’t work as expected, communicate that to the next guests or replace the unit.

4. Look up and around to ensure the lights are functioning.

5. Test the wi-fi and satellite tv and take corrective actions without the client having to discover sub-par performance. In other words, be proactive instead of reactive.

Unfortunately, this property appears to be consistently booked and therefore has effectively lulled the owner into a false sense complacency.

The review

After checkout, Airbnb requests a review of the stay. So, in a very diplomatic way, we mentioned the deficiencies. Unfortunately, the owner responded in what I like to call the “Not my fault syndrome”, suggesting that we were somehow at fault for some of the shortcomings and that we should have notified her, etc. etc. Which, by the way, we had attempted, but got no response.

So, instead of humbly apologizing, this owner goes on the attack. If you dig deep enough into the reviews of this property, you will discover that this a recurring pattern by this owner when faced with critical or negative reviews. Frankly, it’s not a great way to build relationships.

So, what’s the lesson?

I get it. We are all guilty of letting things slip occasionally, but it’s what you do about it that counts. When was the last time you took a fresh look at your office, retail space or warehouse? Is it looking a little tattered or cluttered with stuff? Are there a few more scuff marks on the wall or chipped paint than the last time you noticed?

What about your vehicles, are they clean and safe for your staff to drive? How do your employees look? Are they presentable or have their standards dropped? How do they talk to customers? Are they a little abrupt? How’s their language? Is it professional or a little too casual?

Even after you have asked all these questions, there is still a much bigger question to ask, and that is, how is your attitude? Because as an owner, you set the tone. Have you become little complacent and as result so have your employees?

Yes, these are all little things, but they go a long way to projecting your professionalism and show your customers that you are not a lazy owner.

You may also enjoy BURNOUT

 

Comments, thoughts or ideas for future topics? Let me know in the comment section below

Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

An often published piece of advice to aspiring and to lesser extent existing entrepreneurs is to follow your passion. By doing so, riches or success will surely be yours. But, as with most of these sound bites, this is rarely the case.

Let’s be honest. There’s lots of things that people have a passion for that could never support their dream lifestyle. Unless of course their dream is to just grind out a meager living.

There are plenty of examples of bankrupt restauranteurs who have a passion for cooking but couldn’t run a restaurant. What about the numerous clothing stores that couldn’t make it even though the owner’s passion was fashion?

Be passionate

Plenty of people have a passion for gardening, knitting, pottery, or music, but few would ever be able to or even consider creating anything more than a side hustle that adds a few dollars in their pockets. Of course, there are always the exceptions to this, but they are by far in the minority.

Be Passionate

So, just because you have a passion for something doesn’t mean you can make a business out of it. But then what would happen to all those “Follow your passion” sound bites and their perpetrators?

So instead of “Follow your passion”, what we should be promoting is “Be passionate about what you do!” To some this may be just semantics, but it’s far more than that. It’s about believing that what you do provides a better solution for your customers and not just wishful thinking.

Another way to look at it is that being passionate more closely resembles enthusiasm whereas having a passion is more emotional.

Merriam-Webster defines enthusiasm as having a strong feeling of active interest in something that you like or enjoy. The operative words being “active interest”. Emotions on the other hand, is defined as a strong feeling such as love, anger, joy, hate or fear.

Being passionate is also about continually trying to improve what you do. It’s about immersing yourself in the industry and grasping its nuances. It’s about becoming a student of your industry and the needs of its customers. In other words, to strive to be an expert.

What are you good at?

Another reason being passionate wins out over passion, is because being passionate usually means your good at something. You’ve found a niche that allows you to excel and therefore you just naturally gravitate towards the area where learning and subject matter information is easily consumed.

At the end of the day, most of us would never achieve any level of success if we just followed our passion. And having talked with hundreds of successful entrepreneurs it was interesting that most didn’t follow their passion.

As a matter of fact, I don’t recall anyone of them telling me they followed their passion. No, most just saw an opportunity that aligned with their skill set and went for it. But they were passionate about what they were doing. Being “passionate” about what you do, is far better advice than “follow your passion” in my opinion.

You may also enjoy SBM #64 Defining Moments

Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

“Five percent of the people think; ten percent of the people think they think; and the other eighty-five percent would rather die than think”. This often repeated quote is regularly but wrongly attributed to Thomas Edison, Henry Ford and philosopher Bertrand Russell, all big thinkers in their own right. The reason for this is that they all had similar thoughts on the on the capacity or desire of humans to think, because thinking is hard work and most shy away from it. By the way, the actual author is Woods Hutchinson, an American physician who published “Balanced Work” in an edition of The Saturday Evening Post.

As entrepreneurs we are faced with a myriad of decisions we must make on any given day and quite frankly it can be exhausting. Couple that with all our other responsibilities, it leaves little time or more precisely, the energy to think. By think I mean intentionally focusing on a problem, opportunity, or challenge without distraction for an extended period of time as we search for the best solution. This is often referred to critical thinking.

Think not worry!

This is one of the reasons I repeatedly tell my audiences that as entrepreneurs, they need to make time to think. They need to find a way or a place to mentally retreat from all the day to day noise of our businesses and concentrate on the issue. For years I have used my daily walk or bike ride to ponder an issue. This 30 to 60 minute escape effectively disconnects me from all the other noise or distractions and provides focus time needed. I do not always resolve the issue, but this diversion usually provides a fertile field for ideas from which to germinate.

think

Too often people confuse worry with thinking and that is a mistake because there is a big difference between the two. Worry usually has too much emotional baggage attached to it and often has negative connotations that cloud our judgement. Whereas critical thinking on the other hand, is starting with a clean sheet and an opportunity mindset. This sets the stage to evaluate the issue or issues from a 360 degree perspective. The other upside to pondering our own solutions, is that it enhances our decision making process. To seriously think requires you to draw on all your knowledge and to determine any gaps you may have. Researching these gaps then adds to your knowledge and the more knowledge we gain, the more information we have to apply against future decisions.

Another way to look at it, is thinking is like exercise for the brain. As with all exercise it builds strength, resilience, and endurance to specific parts of our bodies. The same principle applies to thinking. The more we do it, the better we become, which in turn allows you to perform at a higher level.

The impact of Social Media

Although based purely on my observations, I see a disturbing trend evolving with many entrepreneurs and, for that matter, many individuals. They turn to various forums on social media platforms to solve their every problem. To my way of thinking this is doing the individual a disservice. Relying on others to help you make a decision does nothing to enhance your skill in this all important area.

To be sure two heads can be better than one, but hundreds of opinions, not so much. The problem is the audience lacks the context of your specific situation and are better used when dealing technical issues rather than directional ones. Relying on others does absolutely nothing to enhance this much needed entrepreneurial skill set. Just remember old saying that “practice makes perfect”.

IBM – Think

Thinking was so important that for years IBM had the word THINK strategically placed above every doorway as a reminder. They expected their employees to solve problems both internally and externally for their customers. Apparently, the origin stems from an uninspiring sales meeting. Thomas Watson, the founder interrupted the meeting, saying “The trouble with every one of us is that we don’t think enough. We don’t get paid for working with our feet — we get paid for working with our heads”. Watson then wrote THINK on the easel. (Wikipedia). The word THINK has since long been an IBM trademark and they even named their laptops ThinkPads, that are now owned by Lenovo.

The ability to think critically opens our minds to our own possibilities and if done well it allows you to solve problems or envision what your future could be. By thinking through the pros and cons and all the what ifs, allows you to distill a course of action that is home grown and is tailored to your specific needs. But it cannot happen unless you make the time to think.

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Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

For newly minted entrepreneurs, the biggest priority is to generate revenue, any revenue in an effort to transition from struggling to profitable enterprise. To those of us who have made the crossing, we have more often than not sacrificed our own financial needs in order to create a proper fiscal foundation for our business. Because so few of us ever get investor capital, we are left to our own devices to fund our enterprises. That’s okay. As that old saying goes “What doesn’t kill us, makes us stronger!”

Unfortunately, we have trouble letting go of this attitude once the business moves off life support and begins breathing on its’ own. Of course this is understandable. Having lived through the tough times, it’s not something we’re eager to revisit. So under the guise of “reinvesting in the company”, we continue to pour our profits back into the organization and rarely do we consider taking it out of the company. Not to spend on toys, but to take some risk off the table.

Money Jar

80% of owners wealth is in their company

Considering most business owners hold upwards of 80% of their wealth in their business, this “all your eggs in one basket” scenario is a high risk situation. Ask these same owners if they would invest 80% of their net worth in shares of just one company on the stock exchange and they would certainly question your sanity. Yet these same individuals don’t think twice about their current wealth strategy.

In my case, I had set a target of getting 66% of my wealth outside of my operating company and to provide some form of creditor protection. I did this not because I was anticipating any sort of business crisis, but because I realized I didn’t want all that I had worked for to be totally dependent on the future performance of me and my company.

5 simple steps to get you started

Okay, so where and when do you begin? The following steps may help you frame your own initiative. Your corporate structure will dictate what vehicles are available to you and by all means consult your accountant, lawyer, financial planner and any other professional you need to maximize the effectiveness of this strategy

  1. Make sure you’re taking a regular dependable salary. Not your dream salary, but one that allows you to work without the stress of your personal financial situation overwhelming your decision making. In other words comfortably covering your basic needs.
  2. Begin formally moving a set amount from your current account to your chosen vehicle i.e. holding company, corporate savings account, etc. The formula you choose can range from 5% of all your billings that automatically gets transferred monthly to upwards of 50% of annual profit being transitioned out.
  3. This money should not be put at risk in another venture.
  4. Although minimizing taxation is always important, it can’t be the deciding factor.
  5. Eventually you will have transferred at least a portion of your wealth and created another pillar in your financial portfolio.

Freedom and security

If you were expecting some magic formula, I’m sorry to disappoint. This is basic wealth management, a rainy day fund, often ignored by business owners. Too many owners are hoping to cash-in when they sell their companies and are devastated when they can’t sell or get significantly less than they anticipated and have no additional source of wealth.

Being an eternal optimist is a necessary ingredient to having any chance of success as an entrepreneur, but it needs to be tempered with a bit of realism. It’s truly amazing the sense of freedom and security you feel when you’ve consciously created an additional source of wealth outside your operating company.

How you do it is up to you, but starting today in small increments is a must, because like a journey of a thousand miles, financial freedom begins with a single small step.

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Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

A year ago, had you asked small business owners what 5 things could put them out of business?, I would have bet a pandemic would not have been on their top 10 let alone their top 50 things. But a lot has changed in just over a year. According to the CFIB (Canadian Federation of Independent Businesses), it is estimated that 1 in 6 small businesses won’t survive because of Covid-19. The UK is also predicting hundreds of thousands of failures with the US expecting that number to exceed 1 million according to McKinsey.

Assuming the 1 in 6 estimate to be true, that means that approximately 83% of small businesses will survive. Most certainly won’t flourish and it’ll take a long time to recover, but they will survive. Unfortunately, with the ongoing lockdowns, just surviving is incredibly stressful, to say nothing about how exhausting it can be.

What 3 things could put you out of business?

5 areas that require every owners attention

Managing the work-from-home environment is not easy for most small business owners. For many, current technology has made it possible to continue, but only after a number of implementation headaches and costs. The learning curve has been steep. Because for many, technology is just something they’ve never understood.

What we need to understand, is that most small businesses are run in an impromptu or spontaneous manner. The owners have been so busy trying grow their businesses prior to the pandemic, that the majority lacked formal processes. Most just spent their days acting, or more accurately, reacting to whatever the day had instore for them. They are more like fire fighters directing their staff on a moment to moment basis depending what fire was burning the most brightly.

To be sure this pandemic has forced a few owners to get better organized in how they structure their working days, but for many it has become quite the challenge in keeping everyone focused, productive and motivated. In episode #93 Pivot, I discussed the whole concept of pivoting, which is far more difficult than people are led to believe, but so is changing the way a company operates.

So this brings me to my question – What 3 things would put you out of business? Well if you are surviving, you can scratch off pandemic. Sadly, because so many entrepreneurs are so focused in the moment, they don’t realize there are a whole host of issues that can kill their
businesses in a heart beat. The following is a primer list of 5 pretty common areas that require every owners attention, in order to safeguard their business’s future.

 

 

 

 

“Those who think they have not time for bodily exercise, will sooner or later have to find time for illness.”

Edward Stanley, former Prime Minister of the UK

#1 Your health

Unfortunately, most of us don’t even consider what would happen to their life’s work if they were suddenly struck with an injury or worse a life threatening illness. What would happen to the business if you were laid up? Would it survive? If not, what would you do for income? How would you handle the debt? How would it affect your family? This is serious stuff and requires your attention. Contrary to what we think, we are not invincible.

The following are few of solutions that you can minimize the impact of a health problem.

First off, you should investigate disability insurance. Yes, it can be expensive and yes, it usually pays out less than you’re currently earning. But something is better than nothing.

Secondly, many health related issues are self inflicted by our lifestyle. Making time for some form of exercise should be mandatory for every owner. It can range from taking a daily walk to a full on cross-fit workout at the gym. Something is better than nothing. There’s a wonderful saying that kind of drives the point home and it is from Edward Stanley, former Prime Minister of the UK that says:

“Those who think they have not time for bodily exercise, will sooner or later have to find time for illness.”

An additional item that should be mandatory in every small business and that is delegate. By delegating absolutely everything you can to your existing staff, this will certainly relieve some of the pressure. That way, there’s a good chance that the business will survive, while you are laid up. Unfortunately, this is one of the hardest things to get entrepreneurs to do. (See Small Business Minute #18 Delegating is easier than you think)

#2 Key staff quits.

Having your key staff member quit can really ruin a perfectly good day and for some people it can take their business down.

People leave companies for a lot of reasons and sometimes there is nothing you can have do to prevent it. From career changes, to better opportunities to relocations, sometimes it’s just out of your hands. But in many cases it’s not. One of the top reasons employees leave is the lack of recognition and this is something you can control. An occasional pat on the back or some other form appreciation goes a long way. It can be as simple as a thank you for their efforts.

However, if a key employee leaves, what’s your plan? If you’re like most you don’t have one and chances are you don’t have a deep bench of trained people ready to assume that position.

Therefore one of the best things you can do is to cross train individuals. The secondary person doesn’t have to be as well versed as the key person, but they should have been given enough exposure that they could perform the job being vacated even though they may be less efficient.

Additionally, creating in depth documented processes for all positions, allows other personnel to perform those functions until such time as you can find a replacement. This will go a long way to ensure that your company will survive. (see SBM #34 Processes- Shampoo, Rinse and Repeat)

#3 Business interruption

Covid-19 aside, there are lots of things that can cause business interruptions. A flood, a fire, even vandalism can shut your business down for weeks, if not months. A closed business can’t generate cashflow, yet bills still need to be paid.

It is estimated that over 80% of small businesses have no form of business interruption insurance that would pay out a set dollar amount in the event of a catastrophe. This is different than typical commercial/business insurance, whereby the physical damage to your business is repaired. Business Interruption on the other hand can cover Gross Earnings, Profits, Extra Expenses. Certainly worth considering.

#4 Competition

What would happen if a new competitor came into your market, how would you deal with it? Being so focused on the here and now, is a great way to get caught off guard. As I’ve stated before, too many entrepreneurs are so busy just handling the daily priorities, they never have time to lift their heads up to see what going.

Inevitably, they are not even aware of that a competitor has set up shop until they start stealing your customers. By the time they do realize what’s happening that trickle of desertions turns into a flood and is hard to reverse.

One of the best ways to avoid getting sideswiped is to stay in touch with all your customers on a regular basis. Too often the only time business owners talk with their customers is when they call in an order. The thought is, “they know where we are if they need us and I don’t want to bother them.”

What 3 things could put you out of business?

 

Staying in regular contact with customers signals that they are important to your business and can also provide you with competitive intelligence. Most customer don’t change on a whim unless you’ve treated them poorly. So, by staying in touch the fact that a competitor is circling is often shared, thereby giving you time to react. (See SBM #76 Pick up the phone)

#5 Bad debt

This one item alone has contributed to the demise of many small businesses. Aside from not being diligent in collecting receivables, having one customer represent more than 15% of your business can be potential fatal if they close their doors or refuse to pay.

When you consider that many small businesses have net incomes of less than 10%, taking a hit from a major customer can be devastating. For example if a client reneges on a $20,000 invoice and you only net 10%, you’ll need to generate $200,000 in additional revenue just to recover that loss.

When you think about it, most small business are not flush with spare cash, missing out a major payment means you can’t cover payroll, rent or suppliers.

If you do find yourself with a client that represents more than 15%, you have two choices. First grow your business to get them below that threshold or alternatively collect early and often. Don’t forget you can set the rules, so don’t be shy about protecting your company. (See SBM #20 Cash Flow, the Breath of Life).

These are just 5 areas that should get you thinking, but every business has it’s Achilles heel. Spending some time thinking about “What 3 things would put you out of business?” certainly deserves your attention. Then pick the #1 item on your list and make a plan.

Let me know your thought sand ideas in the comment section.

Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

You Got This-For some time now I’ve have taken issue with the advice given small business owners on social media platforms under the guise of motivation and advice. Sadly, much of this advice being spewed forth by many of these so called experts is, in my opinion, nothing more than hype to grow their popularity.

But in order to balance my opinion and for research purposes, I have spent over 20 hours of listening to the audio version of the books of some of these more popular gurus and to be honest, my opinion hasn’t changed. Listening to how we need to crush it or 10x our activity, because if we don’t, we’ll never achieve our goals, is a little much.

We all need motivation

Now granted, we all need motivation at times and Covid-19 has certainly increased the need. The ongoing pressure and changes has certainly amped up the challenges and anxiety of running a business. This increased strain can be draining and after a while can leave us feeling a little lost, worn out or just fed up.

Covid-19 aside, many of us entrepreneurs have been there over the years. Most of the time it’s nothing more than a speed bump after a prolonged period of grinding it out. You see, successful entrepreneurs are for the most part pretty positive and optimistic individuals. We have to be, considering what it takes to survive, let alone thrive. That’s why resilience is such a key characteristic of those that are successful.

But even with our higher dose of resilience coupled with a higher than average positivity and optimistic outlook, sometimes it’s just not enough, the tank is empty and were done. It’s what I like to call a “Poor Me Day”! It’s a day where we feel sorry for ourselves and wonder what the heck we got into and is it worth it? It doesn’t matter how long you been in business, Poor Me Days can happen to anyone.

The thing is, successful entrepreneurs don’t stay down long, hence the name Poor Me Day, not days. Now on the bright side, a Poor Me Day can be almost like a mental reboot, where it clears your mental cache that has accumulated bits of negative experiences over a period of time. And much like your PC, this cache needs to be cleared every once in a while. So having a Poor Me Day is ok, because once cleared, we can get back to doing what we need to do.

A witty meme doesn’t cut it when you advice

Crush it! 10X your businessAs I mentioned earlier, I do understand the need for motivation and sometimes it is the tonic we need to jolt us back to reality. But reading a pithy meme on Twitter, Facebook or Linkedin, unfortunately barely qualifies as motivation.

Motivation is supposed to help us to reset our compass and get our head screwed on straight again. Reading a witty meme or a quote that is misattributed to some personality really doesn’t quite cut it.

Digging into a book or listening to an audiobook has usually done it for me. It gets me thinking. My preference is for the audiobook, especially when read by the author allows me to get a truer sense of their message and their personalities. As a bonus, I can listen to them just about anywhere.

However, what I find disturbing by the two top personalities who’s audiobooks I have just listened to, was the messaging and the tone in which it was delivered.

Let’s start with the messaging. The last thing you want when you’re down is someone telling you that you’re not working hard enough. Telling you that you’ve got to up your game and do a lot more, otherwise you’ll never make it and you’ll be nothing more than average. Or if your not prepared to give it your all, sacrifice everything and put in longer hours in order to dominate, you’ll never achieve the success you want. Really? You call that motivational? I call it bull. But unfortunately that’s the underlying theme of these books.

As for the tone, I found them to be a little too “in your face”! It’s been my experience that what most people need when they’re down, is a calming voice or message instead of someone screaming at you telling you that you’re inadequate and you’re not putting in the effort.

Nothing more than sound bites

Listening to these audiobooks let’s you hear the sheer arrogance of these authors that may not be conveyed when reading the text. I will say, if you can get by all the chest beating that you have to endure, there are a couple of nuggets of good advice, but unfortunately, there’s far more hollow advice that it makes me wonder how they’ve become best sellers.

Much of their advice really is nothing more than sound bites and lack any sound executional details. Although, I’m pretty sure I’m not their target market, it does make me wonder who actually drinks their Kool-Aid? Considering, that there’s just so many better motivational or educational resources out there that offer much better advice.

Does it help to move your business forward?

The good news for most is that many of these resources are free if you have a library card. Although they vary in selection, many libraries have digital libraries that you can download e-books or audiobooks that run the gambit from sales, marketing, social media and so on from a variety of authors.

The only minor downside for some may be that you have to do a deep dive on a subject by reading or listening for a few hours. But let me tell you, no one book will have all the answers, but many will tell you how instead of just saying you should.

So the next time you come across one of these social media posts, take a second to assess it’s true value. How does it help you move your business forward or are the authors just looking to increase their followers and likes? The choice is yours.

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Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

Burnout is one of the leading causes of small business failures. The thing about burnout is that it usually gets justified as just hard work. Of course, entrepreneur knows that being self employed is going to require sacrifices and therefore, burning the candle at both ends is the price of admission to a better life. To that I say, yes and no.

Yes, because there is a price to pay for getting into business. No, because it shouldn’t become a way of life and this is the problem. Too many entrepreneurs never transition from startup up mode. What is startup mode? It’s when you’re doing everything. You’re the chief cook and bottle washer. Your empire consists of a staff of one, you! It’s all you. It’s what the vast majority of small business owners go through when they launch their businesses.

Unfortunately, startup mode becomes a trap that many never escape and can lead to burnout. What really should happen is at the first opportunity, you need to find a way to off load some of the duties and responsibilities. Whether that be hiring a part-time person or finding a virtual assistant of some sort, you need to start elevating your role at the earliest possible moment. Ideally, you should get some help the first day you hang out your shingle. I’m serious this can’t happen soon enough.

When I started my first company, The Sales Support Company, I was just like everybody else and I wasn’t afraid of hard work. The business needed to be national in scope as soon as possible, for it to really work. Fortunately, at that time, I had a partner. So, even though the workload got distributed pretty evenly. It still required that we put in long days. But that’s what we’re supposed to do, right?

After about four years, the partner was losing interest and needless to say, I was starting to shoulder more of the workload and decision making. Before long, it was evident this chapter was coming to an end, so I bought him out. So, what went from a little bit more work, turned into a doubling of my workload.

Suffice to say with a staff of 150 working coast-to-coast, the days grew much longer. Weekends became just two more days to get the work done. This went on for almost another four years before I decided that I’d had enough, and it was time to move on and I disposed of the company. It wasn’t until a few month later that I realized that towards the end I had hit the wall and was facing burnout.

Of course, my entrepreneurial journey was far from over, as I was committed to making my next endeavour a success. However, I wasn’t going to do so if it required the same level of work, nor was I prepared to risk that zombie like effect that comes from burnout. I had learned my lesson and I wasn’t about to let history repeat itself. I wanted to create an environment where nobody took work home, especially me, and that nobody needed to worked weekends.

This commitment, to normalizing the work hours, became a critical operating premise for the 17 years that I owned The Marketing Resource Group. Making this a cornerstone of the business, it then forced me to rethink how it was going operate as working longer hours was not an option. I decide that I needed to focus on three things if this was going to work.

1. Is it necessary?

As the business got off the ground, we questioned everything we were planning to offer in terms of client support or reporting. We asked the simple question – Does anybody care about it? It may be a nice to do, but if the client didn’t care, why should we waist our time on it. It’s easier not to offer something than to offer it and then try to take it away. We would regularly ask the client if they needed any other information, but what we found out was they were satisfied with what we were providing because it already exceeded what they had expected.

2. Can we automate this?

I must admit that I had limited technical abilities, but if I was going to drive this initiative forward, I needed to lead from the front. The sad part was of the two employees I had at the time, I was the most tech savvy, which wasn’t saying much. So, I took it upon myself to prepare all the databases and entries screens and automating all the reporting. As the years went on though, this activity was transitioned to others with a mandate that we use off the shelf software, so that we didn’t need high priced programmers.

3. Delegate as much as I could. 

I recently read that when the leader start to delegate everything, it’s a sign that they’re bored. I think that’s a load of crap. Leaders shouldn’t be doing. They should spend most of their time teaching and being available to help their staff. With any remaining time strategizing or in customer contact. By delegating as much as possible it forced me to better explain my expectations and the steps required to complete the assignment.

These three things, along with other smaller initiatives, allowed me to go home at the same times as everyone else most evenings. Eventually, I was able to be the last in, in the mornings and first out most days. Which is the exact opposite of most business owners.

What’s really strange is that as business owners we have the right to set the parameters within which we want to operate. We have that freedom. But too often we don’t even give it a second thought. We think we must do like every other owner and work our butts off. When you consider that freedom is one of our primary goals for going into business, few ever achieve it.

For me, setting my work parameters made me a much better leader and manager, and I never faced burnout again.

Copyright © Greg Weatherdon 

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Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.

Technology has been an amazing boon for businesses of every size, but none more so than for small businesses. Having come of age as an entrepreneur through the technology evolution, it’s truly amazing that what once took days by many, is now done in minutes by one person.

The development and ease of use of current technology now allows small businesses to compete with much larger organizations. Software applications that once would have cost the small business owner a fortune to purchase, along with the hardware to run these applications, are now available for pennies a day and hosted on the cloud. Heck, most can be managed on your smartphone, giving you true mobility and freedom.

Small screen and keypad restrictive

I admit that, try as I might, there are just somethings that I can’t manage well on a smartphone. Whether that’s because the screen size or fat finger syndrome, I just prefer a much larger interface. Don’t get me wrong I love having all this capability in the palm of my hand, but I find the small screen and keypad restrictive.

I read somewhere once that smartphones and tablets are for consuming information, whereas laptops and desktops are for inputting information. I guess the reason I remembered this, is because it certainly rang true to me. Hats off though, to those that can manage everything on their smartphones!

This simple app never gets credit

However, one the most powerful apps included in every smartphone that gets used less and less every day, is the phone app. This powerful, yet simple app never gets any credit or hype, yet has the ability to increase our efficiency and productivity many times over.

Unlike so many of our other available communication apps, this simple app can cut through the clutter that fills our inboxes and messaging apps. Aside from calling a customer service line, where you’re put in a cue, because our call is important, if someone is available, they’ll usually answer the phone. This then becomes an opportunity to create a personal interaction that is sorely missing in todays business environment.

Calling someone to get an answer, is far quicker than writing an email or sending a text message. Talking to someone on the phone reinforces the relationship and that’s a critical element in a selling situation. One major advantage a phone call has over just every other communication vehicle, except face to face interaction, is the ability to hear an individual’s emotions.

It reinforces relationships

This live interaction gives you the opportunity to clarify or reinforce your position based on the feedback you’re receiving. A phone call allows to adjust on the spot should the situation change or if someone is having a bad day. You can’t really do that once you’ve hit send on that email or text message.

In addition, when two people are having a conversation, you can typically benefit from added information that is shared during a conversation. This information can be personal or business and serves again to reinforce the relationship. This rarely happens in email or text communications.

Phone calls also have an immediacy. Once more, if the individual is available, you’re not having to wait hours or days for a response that is becoming the norm with many electronic communications. Most interactions via the phone are usually just a clarification on some outstanding issue. If necessary, a follow up email can always be sent later as a confirmation. Meanwhile, by making a call, you get your answer and can then move forward with your task at hand.

Phone calls are personal

I’m constantly having to remind clients to pick up the phone when I see them starting to compose an email or text message. As a small business owner, it’s incredibly important to connect on a human level as frequently as we can with our customers and prospective customers. It’s one more human touchpoint. In many cases it can be a point of difference between you and your competition, because a phone call is personal.

I’m not sure how we’ve managed to move away from this tool but as the chasm grows between human interaction, I predict that we may see a resurgence in it’s use. I for one hopes so. So next time you’ve got a question for a customer, pick up the phone!

You may also enjoy Look as Good as You Sound

Copyright © Greg Weatherdon 2019

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Get More LIFE Out of Your Business

You shouldn’t be the hardest working person in your company.

Many small business owners find that even after the struggling start-up years, they’re working too many hours and still managing every aspect of their businesses.

Greg Weatherdon has been there, done that. As an entrepreneur, he learned not only how to get a business to the point of running smoothly, but also how to reduce the number of hours he worked, delegate more responsibility to his employees, and take longer vacations while his business chugged along like a well-oiled machine. And now he is providing the secret to success.

Do you suffer from any of the following?

1. Business ownership isn’t living up to the dream.
2. Endless workdays.
3. You can’t find good people.
4. Profits are less than expected.
5. You can never take a vacation.

You’re not alone. But there is a solution. As Greg demonstrates, with some time and effort, you really can Get More Life Out Of Your Business.