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.

I’m always surprised at how many small business owners don’t prepare for their business’s year-end. Sadly, it’s more of a case that “they don’t know what they don’t know!” But spending some time on this annual event can potentially save you a lot of money.

As to why so many entrepreneurs are oblivious to the importance of preparing for year-end has a couple of parents.

To begin, most of the responsibility lies squarely on the shoulders of the business owner. For some unknown reason, far too many owners don’t take the time to understand the financials of their business.

Being an entrepreneur requires you to have an understanding of all aspects of your business if you hope to succeed. So many owners can recite chapter and verse on the merits of social media or other online promotions but can’t read an income statement. This makes absolutely no sense to me.

Files

The root cause for this appears to be that many owners are afraid or don’t want to look foolish by asking questions of their accountants, yet in the next breath complain that it’s bewildering and too complicated. Therefore, like ostriches, they just stick their head in the sand and leave it to their accountants.

This brings me to the second group that can share part of the responsibility – accountants . Now, as a caveat, I personally know a half dozen accountants that take the time to help their clients get a working knowledge of financials statements. These individuals also provide insight to entrepreneurs on how to manage their corporate finances in areas such as cashflow, receivables, etc. Unfortunately, they are in the minority.

Far too often I come across individuals that leave their accountants office feeling they that they are no wiser and everything they heard was in Latin. Sadly, most just sat through the meeting nodding their head pretending they understood. Now in defence of accountants, most will gladly explain anything on the financial statements, if they are asked. Unfortunately, they rarely ask their clients if they truly understand what is being presented. So, a word of advice to owners, start asking questions and don’t stop until you understand.

So, in order to help you prepare for your companies year-end the following areas need to be addressed to ensure you get the clearest idea of where you and your company stand at the closing of each and every year. This process should begin during the final month of your company’s year-end.

1.Invoices

Get your invoicing done! Simply invoicing every client for work completed during the current year could make the difference between a good year and a bad year or a good year and a great year! By doing so, you attribute all the income you have generated to the actual year that the work was done. Failing to do so, distorts the actual revenue and expenses you generated during the year.

Often, I see companies showing a loss at year-end and after a little digging, I find they should have shown a profit had they just invoiced their clients.

2.Expenses

Get all your payables in whatever accounting system or spread sheet you use. Again, these are for work completed during the current year-end period. Much like invoicing, failure to get your arms around all the expenses you incurred, distort your final financial results.

For example, failing to get all your expenses in could increase your profits for the year. Those profits are subject to taxes. Inadvertently overlooking some expenses mean that you’ll have a higher tax bill, and nobody want to pay more taxes than they need to. So, get a hold of any laggard suppliers you have and get them to send their bills to you.

People woking on computer

3.Inventory

Does your business carry any inventory? If so, this is the time of year to do a physical count to determine its value. Inventory is an asset and can impact the value of your company. Although a company’s valuation is always important, it is even more so, if you are planning on selling it.

 

4.Write-offs

Have you got any bad debts? You know, those clients that are never going to pay you. So, if you’ve exhausted every means to collect and have decided that spending any more time, effort or money in trying to collect is useless , then it might be time to write off the receivable. This also applies to customers who have declared bankruptcy.

The same thing applies to inventory. If you have dead inventory sitting around collecting dust, now might be the year to blow it out at clearance prices and turn it into cash or donate it somewhere, but get rid of it and take the write-off.

Writing off bad debts and blowing out dead inventory, both serve to reduce your net income and when we reduce our net income, we also reduce our, you guessed it, taxes.

5.Purchases

In need of a new piece of equipment for the business? This might be the best time to make the purchase or purchases, especially if you’ve generated a profit.

You see most jurisdiction allow businesses to deduct a percentage of the value of their equipment every year. This deduction is an expense and serves to reduce your taxes.

However, the real intent for depreciation allowance is that the government knows that you will need to replace that equipment as it ages. In theory therefore, that allowance should be kept aside for future replacement purchases. But in reality, no one does.

So, the point of that explanation was to bring to your attention to that by buying that new piece of equipment before year-end, you may get the benefit of a whole year’s worth of depreciation expense even though you have only owned it for a couple of weeks. Depending on the item, some countries even allow for a 100% write off in the first year. You’ll need to do your own homework on this one to get the specifics for your country.

As I said earlier, the responsibility for getting your house in order lies with you, the owner. Entrepreneurs need to look at this whole year-end process as getting a report card. Some years you pass and some years you fail, but having accurate information lets you know where you truly stand.

I’m providing this information to get you thinking, but it is by no means an exhaustive list of things you need to do to get ready for year-end. Furthermore, don’t take this as fact until you check your own tax guidelines. As a matter of fact, the easiest way to get that information would be to call your accountant and ask.

 

You may also enjoy The Money Business

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.

One of the biggest challenges of a service business is managing your inventory. Now you might wonder what inventory, besides a few stationary supplies you may have, that need to be managed?

Well, unlike a manufacturing, retail or a distribution business, where you have physical inventory that needs to be stored, sold and then replenished, service businesses on the other hand have a single and very unique inventory -TIME!

 

3 people standing inside big clock

Time- It’s how you get paid!

Because as a service business, your product is the knowledge that you and your staff carry around in your head. Putting this knowledge or expertise to work is how you generate your revenue and that’s usually in the form of hours worked.

It can be argued that service technicians like appliance or auto repair have inventory, but for the most part you hire them for their knowledge and they in turn they charge you for the time it takes to fix the problem. Therefore, the parts although important, are secondary to diagnostic skills the technician possess, because without those skills, there wouldn’t be a part to sell.

Similarly, sales and marketing services companies also generate revenue by the hour, however, it is rarely shown as such as most fees are displayed as a total for a given project. But all the fees are calculated as an estimate of how much time or hours are involved in executing the project by the various staff members.

Establish some balance

One of the biggest issues with owners of service businesses is understanding that their inventory is finite and that they should be running their companies with that in mind. Unfortunately, this is contrary to how many of these businesses operate. They assume that they can just put in more time and work longer hours. Although feasible in the short term, it is rarely a long term strategy. Yet so many continue to do so.

There are some advantages to managing your business based on your available inventory of time. First off, it should bring a sense of balance to a business. Balance, as in work life balance.
Secondly, it would allow you to establish realistic delivery timelines to the customer. Let’s be honest, we all think we can complete an assignment quicker than reality dictates but that just stresses out your staff or annoys the client when we are late. So being realistic can reduce the occurrence of both.

Additional benefits of managing your inventory can be significant on the financial front. Foremost, you’ll quickly understand whether you are charging enough and whether your existing inventory of hours available can support your financial demands.

Calculate how much time you really have

Furthermore, you should also discover how efficient or inefficient your organization is and where improvements can be made. Increases in efficiencies can greatly enhance your profitability. A simple metric such as revenue per hour is great place to start in benchmarking any improvements. This calculation is done by simply dividing your total revenue by total payroll hours for any given period, including your own.

So, how do you calculate this inventory? Well, it is easier than you think, and it really doesn’t matter whether your staff is making $20/hr or $200/hr as it is the exact same calculation. Earning a higher hourly rate does not give you more hours in a day, as we all get the same 24hrs.

The following example is how you calculate your total available inventory of time in a service business.

1. Assume a 40 hour work week = 2,080 hrs
2. Assume 3 weeks vacation = (120)
3. Assume 11 statutory holidays = (88).
4. Assume 5 sick days = (40)
5. Assume 2×15 mins breaks/day = (12.5)
Total available hours 1855.5 hrs

So before doing this exercise, most owners assume they have 40 hours a week or 2080 hours per year per employee that are available to them. However, after taking into account vacations, stat holidays, sick days and coffee breaks, that number is reduced by 11% to 1855 hours per year or a loss of almost 6 weeks out of a 52 week year.

This number actually gets worse if employees are required to travel to clients as in the case of a repair technician or a salesperson. You can easily lose and additional 2 hours per day which is a potential loss of an additional 13 weeks per annum. So now we are down to 33 weeks of billable time in a year or 1335 hours from a high of 2080 hours. That’s a 36% reduction in available inventory or billable time.

Once you understand how much available time you have, you can now start to make realistic assumptions and projections. Of course, the challenge to all service businesses is the ability to maximize your available time inventory and make sure it’s productive.

Hiring more people not the best option

Unfortunately, the only way to increase your inventory in a service business, is to hire more people. But realistically, that’s not necessarily the best option, especially if you have demand peaks and valleys in your business throughout the year. So, finding tools or processes to increase productivity might be a better avenue to maximize your existing inventory.

Realistically, we are all faced with slack periods where there’s insufficient demand and people are not busy. Sadly, you can’t store any unused time for future use. Because once that minute hand on the clock moves forward, you have lost that inventory forever.

So, sit down with staff and explain the impact they can have on the business by being more efficient. Then ask them where the bottlenecks are and their suggestions to get rid of them, because once that inventory is gone, it’s gone!

You may also enjoy episode #59 Quit Digging!

 

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.

There are lots of reasons start-ups fail, but one that I see far too often is the lack of industry experience. Industry experience can be summed up as having substantive knowledge working in the area of the planned start-up.

As an advisor, I have met with hundreds of budding start-ups and one of my primary questions to them once they have explained their idea is, “what industry experience do you have?” Unfortunately, I never thought to quantify the responses, but suffice to say that a large percentage had zero industry experience.

Interesting enough, this was not isolated to any particular industry, but ran the gamut from app development to the hospitality industry and everything in between. This lack of industry experience can be partially explained by the rampant promotion of entrepreneurship and the social media heroes that give false hope to their many followers, by suggesting that they only need desire or ambition to be successful. For those of us that know better, nothing could be farther from the truth.

Chilkoot Pass

To be sure there are examples of individuals who have been successful in areas where they had little experience. For the most part these individuals had a lot of luck or a lot of money to support them while they learned, but they are the exceptions. The average entrepreneur has neither, but what the successful ones do have is industry experience.

Knowledge deficit

The authors of Age and High-Growth Entrepreneurship stated the following in a Harvard Business Review post;

“We found that work experience plays a critical role. Relative to founders with no relevant experience, those with at least three years of prior work experience in the same narrow industry as their start-up were 85% more likely to launch a highly successful start-up.”

History itself can be a great teacher and as Winston Churchill once said in a speech to the House of Commons “Those who fail to learn from history are condemned to repeat it.” There are many examples from history that entrepreneurs can draw upon to support or justify why those individuals with industry experience have a greater chance at success.

What most people overlook is that having industry experience is a massive competitive advantage. It gives you the knowledge to spot an opportunity from the inside that is invisible to an outsider. This is by no means a guarantee but having industry experience can minimizes potential missteps that are not clearly visible to the outsider.

Klondike (Yukon) Gold Rush

One of the most interesting comparisons that I can make to todays rush to entrepreneurship is that of the Klondike Gold Rush. Once the news leaked out that gold was discovered in Dawson City in the Yukon in 1896, the stampede was on.

Much like social media does today, newspapers from around the world wrote extensively about the bonanza. So much so, that in one San Francisco newspaper it was front page news for over a year.

It is estimated that between 100,000 and 300,000 people from around the world, regardless of their experience, quit their jobs, left their families, and headed out on the year long trek to claim their share of the riches. Sadly, many did not get far. Of the potential 300,000 who set out, only 100,000 thousand actually made it to the Yukon and only 30,000 of them got to Dawson City.

It is interesting to note that of the 30,000 who made it to Dawson City, only 2,000 actually found gold and only a handful of those returned home with any.

Access to Yukon in those days required the gold seekers to travel north via ships from ports along the Pacific west coast to Skagway Alaska. This was the jumping off point to the Yukon, but even if you made it this far, many Stampeders, as they became known, were in for a rude awakening and ended many a dream.

Beginning in 1896 the Canadian government would not allow entrance into the Yukon unless the individual had a year’s worth of supplies to sustain themselves. This is one of the reasons that tens of thousands of people could not continue, because they didn’t have the money to buy what was required.

These supplies were split equally between food and equipment and weighed approximately 2000 pounds. Failure to comply, would result in you being turned away at the Canadian border because the government did not want those who were woefully unprepared to even attempt this most grueling journey. Maybe today’s start-ups should be mandated in a similar way, but I digress.

.

The Chilkoot Pass

One of the most famous pictures of that time is of the Chilkoot pass, where a long stream of prospectors are struggling up a 900 foot climb.

This 33 mile (53 kms) pass was the fastest, but more arduous way to Dawson City and once you made it over the pass, you still had 400+ miles (700 kms) to go. But you did not just have to climb the pass once, no you had to do it upwards of 20 times in order to move your 2000 pounds of supplies along your route.

In the early days, this was raw country and there just was not many transportation alternatives. For the most part, you either did it yourself or it did not move.

Just show up

The point of this comparison is that of tens of thousands that set out to stake their claim to riches, most had never prospected for anything. But because of all the newspaper hype, many just assumed that the gold was just lying there waiting to be picked up and if they could just get there, they would be rich. Experience did not matter, just show up.

Not to be overlooked, because it is not well documented, is how many people died in the attempt to reach the Klondike, but it numbered in the thousands. They died from either malnutrition or exposure, as the temperatures dropped to -40 degrees and colder in the winter. Sadly, they naively set out on journey, not knowing any better nor bring prepared. In other words, they had no experience.
Too many people today assume that it is easy to start a business and all they must do is to show up. Sadly, those that are not prepared, never make it to their destination. It takes more than desire, it takes knowledge and skills, and those skills and knowledge come from experience.

We need to change the way we promote entrepreneurship because, contrary to what we hear, it is not for everybody. However, for those that want to be their own boss, they need to understand that one of the best things they can do to increase their odds of success, is to get some industry experience.

It is not enough to watch a few how-to videos on YouTube or participate webinars. Only working in the industry will give you the necessary insights to map your way to the gold.

Fortunately, unlike the Yukon Gold Rush, few today are dying because of a failed business idea.

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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.

“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.

You may also enjoy The 1st Million is the Hardest

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.

Pivot! Just pivot! That’s what your being told if you’re having challenges running your SME. It’s another one of those words that actually had value once upon a time. Now, it’s so abused that’s it’s nothing more than a throwaway statement by individuals who want to sound like they’re offering intelligent advice, but really aren’t. Realistically, most businesses can’t pivot.

If we’re to be honest, most individuals have a heck of a time coming up with one idea that they can get excited enough about to take the plunge. That doesn’t mean it’s a good idea. It’s just an idea that they’re prepared to risk their time, energy and resources on to make happen. Even then the failure rate exceeds 50% in the first 3 years and upwards of 85% in 5 years.

So my point is pivot to what? It’s so hard to have one idea let alone coming up with a second one, especially when under duress. I say duress because you wouldn’t even be considering pivoting if everything is running along fine.

No, most often a pivot or rethink is a result of a failed idea, a competitive threat or 100 year storm such as Covid-19. So I say duress because in most cases your business is heading to the ground with the power on and you’re desperate. And when things get desperate, we need a fix and in a hurry. That usually means doing something, anything to generate revenue and stop the bleeding. Unfortunately, being stressed out is not necessarily the best time to make decisions.

The news is full of stories showcasing various companies that have reinvented themselves during Covid-19. But on closer inspection of the stories, I don’t think they’d qualify as pivots as much as a survival strategy.

Pivot
Imagine Jen Theodore-Unsplash

It’s about survival

For example, how many clothing manufacturers converted their sewing rooms from producing apparel, to manufacturing medical masks? I’m pretty sure they’re not going to continue once the storm has passed. It’s a safe bet that most will return to fashion as soon as they can. This is not a pivot, it’s about survival.

The same can be said about distillers and micro brewers who started producing hand sanitizer. This is not a long term strategy. It’s about generating some short term cash flow by utilizing existing facilities and processes. Which at it’s core is distilling alcohol. It’s nothing more than a finger in the dyke. Once demand is satisfied, then what?

“Chances are their pivot is only a few degrees off of their original idea”

Alternatively, some businesses have got nowhere to turn. Take the hospitality industry for instance. They can’t just convert their hotels rooms into alternative use. To be sure restaurants can offer takeout or delivery, but that’s not a pivot. It’s just an extension or alternative to what they are already doing and sadly won’t cover their costs. Again, it’s a just matter of generating some cashflow and of survival.

Retail is another example. Making your offering available online because of a massive drop in walk-in traffic, certainly sounds easy. But it’s a lot more involved than most imagine. Such as setting up your website, getting and managing your inventory online and establishing your payment gateway. None of it is easy and it costs money. Money that most small businesses don’t have.

Let’s not forget all the time and energy required to promote and get visible once you are setup online. That of course assumes you have the necessary skills to begin with. Granted, you can try to learn these new skills, but that takes time. In the meanwhile, you still have rent and utilities to pay.

Yes, there are companies that have managed to pivot and have found success. That just tells me that their original idea probably may not have been as sustainable as they first thought. However, these companies appear to be sufficiently versed in their industry that they’ve managed to leverage their insights and skills to offer an alternative solution. Chances are their pivot is only a few degrees off of their original idea and not a wholesale change.

My Pivot

After 8 years of running my first company, The Sales Support Company, I realized that I was working way too hard and felt like I was treading water. Even though revenues were continually growing at a nice rate, it never translated into any significant profit.

The company provided retail sales services representing some of the world’s largest packaged goods companies.  I had 150 employees working coast to coast at a time before the internet and cell phones. Because of that, communicating with regional supervisors always took place after hours, so the days were long. It finally got to the point where I was just tired of trying to make it work. I was putting in endless hours, getting no closer to my goals and not making any money.

I knew the industry still required our type of service. So, I set out to come up with alternative method to service these stores. Two key criteria were, that it had to be profitable and give me a better quality of life. So, my pivot was to take what we were doing “live and in person” and attempt to do it via telemarketing, which really hadn’t been done before.

In order to find out if this idea would fly, I created Marketing Resource Group and tested the concept over the next 18 months. This happened all the while still running my other company.

Since it was a new concept for the industry, it did require a lot of convincing clients to test it. Fortunately, one by one clients began to support the concept as we were able to deliver the promised results.

More importantly though, is that this pivot was actually fulfilling my first priority of being profitable. My second criteria of having a better quality of life would be up to me, but profits would go a long way to making that happen.

Once I could see the momentum growing for our service, I sold The Sales Support Company. Well actually, it was more like I gave it away, but that’s a story for another time.

My pivot worked so well, I kept The Marketing Resource Group for 17 years before selling it. At which point we were making over 300,000 calls a year in Canada and the US.

Advantages

The point of that story is that I got to test the concept while I still had my first company. Although I was extremely well versed in retail sales and service, I knew nothing about telemarketing.

So the test phase allowed me to learn, trial, and refine the concept on my schedule. Unlike typical telemarketing organization that is script driven, our service had to be adapted to creating long term relationships. That’s why having the luxury of testing and refining made this pivot possible. Doing it overnight would not have had the same results and most likely would have failed.

A couple of advantages that I had that increased my odds at pulling off a successful pivot were:

  1. I knew the industry and
  2. I had a solid relationship with existing pool of potential clients that I could leverage.

As I stated before, most sustainable pivots are only a few degrees off the original idea and not massive wholesale changes. If we’re to be honest, there are far more businesses that can’t pivot, than those that can.

Sometimes that pivot can mean throwing in the towel, cut your losses and live to fight another day.

You may also enjoy SBM #82 Starting Over

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.