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.

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A constant refrain that I hear from business owners is “they should know better!” “They” of course being any or all the employees that screwed up. Naturally, when I hear this statement, I just can’t leave it alone and therefore I need to challenge it. At which point the conversation goes something like this,

Client: They should know better

Me: Really, why is that?

Client: It’s their job

Me: Did you tell them?

Client: No, I shouldn’t have to

Me: Why shouldn’t you have to?

Client: Because they’re supposed to be adults

Me: That may be true, but you still need to tell them what you expect

Client: I hired them to do a job. If I have to tell them or show them I don’t need them.

Me: Seriously?

It’s not about micro-managing

I think you get the drift and I’m sure many of us have felt the same way at times. Unfortunately, too many owners wrongly assume that once they hire an individual, that person should automatically know everything there is to know. Granted, they should have all the technical skills required for the job, but that’s only half the battle.

Where many entrepreneurs fail, is in telling their employees what they expect from them on a regular basis. We’re not talking about micro-managing, it’s about providing clarity. It’s about setting expectations or objectives. It’s about letting them know specifics, like when you expect the task to be completed or how many hours you’ve allocated for that project or how you expect them to act in front of customers, or your dress code and on and on. Just because you failed to mention something and then expecting your employees to read your mind, is asking a little much, don’t you think?

The easiest way to fix this is to communicate. Yup, it can be that simple. Communicating is nothing more than telling people what you expect. Because left unsaid, it is usually just asking for trouble. And once it becomes a crisis, emotions usually take over and its no longer just a conversation. By having regular ongoing dialogue between employees and managers, everyone should be on the same page. This can go a long way in minimizing surprises.

Here ya go, get it done!

You see, nobody likes surprises because they usually occur at the wrong time and leave little opportunity to correct the situation. Simple, regular and informal dialogue between managers and employees would avoid many of the problems that arise.

The alternative of course, is to simply assume that once the project was assigned, it would be completed without further communication and it usually goes something like this- “Here ya go, get it done!” The weakness in this strategy usually manifests itself once the client calls to inquire why the project is two weeks behind schedule. Those are always fun conversations. Why is it then, that the only person that knew was the client?

In hindsight, one of my major communication tools was simply wandering around and talking with my staff or watching them do their job. This provided me the opportunity to reinforce what my or our clients expectations were. If I noticed that something was lacking, I would typically bring it to the attention of the project coordinator responsible for the project, for them to rectify. Often in a quick group meeting.

Fortunately, this was a rarity because the coordinators were very good at setting expectations and at helping individuals meet those objectives. In addition, our reporting processes allowed us to monitor our benchmarks in real time. This real time reporting was not designed to “catch” individuals for low productivity, but to identify potential problems in the execution and to take corrective action early on, thereby allowing us to finish on time and on budget with excellent results.

Hoping things will improve rarely works

Because of our ongoing dialogue with the front line employees, coupled with the data, this allowed us to notify the client early on of a potential problem and take corrective action. Although this was never fun to tell a client you’re having a problem, and thankfully was a rarity, it was far better strategy than waiting until the end and hoping things would turn around on their own. It has been my experience that hoping things will improve rarely works and leaves you to make a bunch of lame excuses to a very disappointed client.

Being visible and asking questions is part of being a manager. Equally important to opening the lines of communication, is asking the right questions. These questions should focus on removing roadblocks to productivity and serve as teaching moments.

However, in order for this to work it must be a two way street. Employees need to feel comfortable enough to be able to express their thoughts or know that delivering bad news won’t earn your wrath.

Yes, they should know better, but if you want better communications within your organization, then it’s up to you to create it. Being visible, watching, listening and letting people know what to expect, will go a long way in reducing those nasty surprises that just ruin everybody’s day.

 

Copyright © Greg Weatherdon 2018

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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.

I have worked with hundreds of entrepreneurs helping them to shape their businesses into their vision. One problem that I frequently come across is the quality or I should say, the lack thereof of some 3rd party service providers e.g. bookkeeping, IT specialists, etc.

For the record, I’m all about outsourcing non-core or mission-critical activities to individuals who specialize in a given area. But time and again I find that many of these providers never consider the best interests of their clients.

Most of my entrepreneurial ventures have been as a service provider and one of my key mandates was to always be searching for ways to reduce our costs to our clients. That may sound treasonous, but in fact, it helped to grow our profits and our roster of clients, most of whom were divisions of global packaged goods companies.

“Clients are always looking for cost reductions…suppliers are always looking to increase their billings”

The premise was simple. Clients are always looking for cost reductions on the goods and services they buy, so my thought was to pre-empt that thinking. Without boring you with the details, we provided telemarketing and communication services to the packaged goods industry, servicing their small or orphaned accounts.

Our normal program recommendation was to execute 3-4 telemarketing sales programs a year. The targeted accounts would range between 3,000-5,000 retailers. By the end of the second program we had accumulated sufficient information to go back to the client looking to adjust our original agreement-downwards!

Of course, this is not the norm. Most suppliers always look for ways to increase their billings by recommending the program be expanded. Our approach on the other hand, was very disarming to clients but was based on solid business premises.

Our typical recommendation after the second wave, was to reduce the number of calls by around 20%. Because at this point we usually had enough data to determine which accounts simply weren’t interested, for whatever reason, in dealing with us. We were in effect, wasting our clients money and therefore they should be culled from the program.

So, what did this approach do for us? It positioned us as a trusted partner and an organization that had our clients best interest at heart.

  1. It dramatically increased our sales ratio performance e.g. a 35% sales ratio automatically jumped to over 40%.
  2. Our revenue per call would also soar. Clients always like that.
  3. Our profit margin jumped significantly as we kept a percentage of the savings. The clients never questioned us as we passed on about 80% of the savings.
  4. More often than not, clients would reallocate the savings to another program for us to execute. So, we really didn’t lose anything.
  5. Our efficiency increased as we were able to service more clients, at higher margins, without increasing our manpower or physical space. All while growing our revenues.
  6. Our clients regularly referred us to other divisions within their organizations.

The best part of this strategy was that we rarely had to justify our fees. Not many service organizations have that luxury.

“When I uncover these duplication, clients begin to lose faith”

Unfortunately, in working with my clients today, I find that many of the service providers they use, never look to help them. They simply focus on maintaining the status quo to protect their billings that often results in the duplication of efforts. When I uncover these duplications and bring this to my clients attention, they quickly begin to lose faith in these individuals.

These service providers think that by helping the client be more efficient or show them a better way, that they will put themselves out of job. Nothing could be farther from truth. It would in fact solidify their position in the eyes of their clients.

To be fair, clients are not innocent in this by any means. I’ve talked about this in The Small Business Minute #56 Delegate not Abdicate. Too many entrepreneurs eagerly outsource tasks that they don’t like doing or have no knowledge and then immediately ignore it assuming they no longer have to worry about that area of the business.

Too be fair, there are many great individual service providers that are engaged in their clients’ business. They provide valuable assistance and insights but, there are just as many that don’t.

So, if your service providers are not helping you run your business and don’t regularly suggest improvements, it’s probably time for you to demand more.

 

Copyright © Greg Weatherdon 2018

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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.

Read Time: 3:58 minutes

I often get approached by entrepreneurs who are facing significant challenges in their businesses. By significant I mean – They’ve dug themselves into a hole so deep that they’re going to go out of business if something doesn’t change! So, my first piece of advice courtesy of Will Rogers , the American humourist is, “When you find yourself in a hole, quit digging!

As far back as I can remember, I’ve always been the person called upon to help fix a situation. For the less urgent ones, I’m more of a troubleshooter, as I usually had some time to assess the problem or problems and then sketch out a game plan.

On the other hand, when I’m approached by an owner with an urgent challenge, I usually take on the role of a firefighter. This is because the situation is critical and there is no time for naval gazing and strategizing. It’s a time for action. It’s more akin to a scorched earth approach, whereby nothing is sacred.

Got the t-shirt

It has been my experience, that in these situations to do anything less is not an option and speed is of the essence. These situations are usually long in the making but typically ignored until they become a full blown crisis. To an outside observer, you would wonder how it could have gotten so bad? But until you are in the thick of it, you’ll never really understand how these things happen. Been there, done that and I’ve got the t-shirt!

Of course, we’ve all read those inspirational books or articles that tell you to stick to it and persevere no matter how hard it is. Or, that suffering is the price you pay to be an entrepreneur. So, I want to tell you that there’s a limit to how much misery, you must put up with.

Unfortunately, when many of us are faced with business destroying crises, we tend to develop a bit of tunnel vision that limits our ability to see all the options available. Couple that with our desire to succeed, plus a little pride and ego, we don’t even consider any of the negative options that can effectively gut your company and your dream.

Strangely enough, when talking with these clients many already know what they “should” do. They just can’t bring themselves to do it, preferring to carry on hoping and praying that the situation will improve. Regrettably, it rarely does.

5 Survival Tips

If survival is your goal, then you must make the hard calls. The first of which is to reduce all your expenses, regardless of how uncomfortable you are. We’re talking survival here. The following list can get you thinking of some of the drastic measures you must take:

1. Move your business. Relocate to your residence or some other free or less expensive space.

2. Cut staff. Payroll is usually the largest expense a company has. Not a fun exercise but a necessary one.

3. Cut all non-core expenses. I mean everything. Nothing is sacred. Cell phone, copiers, coffee service, cleaning services. No more client lunches. Absolutely everything gets scrutinized.

4. Dump unprofitable clients. If you don’t know who they are, figure it out immediately. Deal only with those clients that are profitable now and pay promptly.

5. Streamline your product or service offerings to those items that are profitable. With reduced staffing, you probably won’t be able to support more than a couple of core services. So, do the stuff that makes you money.

Yes, I can state categorically, this is an painful and humbling process. But if you think the business and your sanity is worth saving then you have absolutely no choice. Once completed though, it’ll feel like a huge weight has been lifted off your shoulders.

Quit Digging

Many who have gone through this and survived have felt rejuvenated. It’s like they’re in start-up mode all over again and what they discover is that this is their happy place.

So, if you ever find yourself in a hole, quit digging!

You may also enjoy The Fear Of Decisions

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.

Wilfredo Pareto discovered the 80/20 rule when he wanted to determine who owned all the lands in Italy in the 18th century. He found out that 80% of the lands holdings were owned by just 20% of the families. As he continued his research he soon discovered that many things fit that profile.

Applying The 80/20 Rules For Sales

So how do we apply the 80/20 rules for sales? Well as entrepreneurs we seem to manage to bog ourselves down doing all sorts of non-productive activities. Sure we justify them as necessary activities but in many cases we’re just doing busy work that could easily be delegated or maybe not even done at all.

Because sales are such a critical element of our businesses, it is the #1 item that owners ask for help or guidance when I advise them.

The Formula

So here is my simple formula; until you have enough sales to provide you with sufficient revenue to cover your monthly fixed cost, including your salary, you should be spending 80% of your time on sales related activities, period! Make sure these activities are actual productive and really sales related. Too often, we classify all sorts of activities as sales related when in fact, they’re really not.

So what are sales related activities? Here’s a list of seven:

  1. Preparing prospect lists
  2. Making calls to the list
  3. Sending emails to the list
  4. Going to meetings with existing or prospective clients
  5. Preparing quotes or proposals
  6. Following up on quotes or proposals
  7. Cold calls if necessary

In other words, activities directly related to generating an order.

For some people these are unpleasant activities but as business owners you need to get over it and make this activity a priority otherwise you’ll struggle along for years.

The 80/20 rules for sales will help to keep you focused on what’s important. Thank you Mr. Pareto.

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.