Archive for focused passion

The Toughest Sale an Entrepreneur Can Make….Investment Capital to Grow

Posted by on September 29, 2011 with 2 Comments

 

I enjoy sales, I really do. I see sales as the ultimate example of serving others. You connect with people in your market that may have problems your product or service can solve, and you help them solve their problems. For me it’s the ultimate rush helping clients solve problems they have struggled with and felt they must learn to live with. However there is another sale entrepreneurs have to make that is not nearly as fun and can be emotionally and physically taxing if you do not know what you are doing…raising investment capital.

Typically the companies I serve have the capital and or are self funding and I am asked to create a repeatable sales process, based on how their buyers want to buy. Then I train their team how and when to use the sales tools we create for each step of the new sales process. In one instance however, a company I was asked to turn around lacked adequate access to capital to truly scale the business. So I approached raising investment capital as I would any market with various buyer personas , but in this case what I was selling was the viability of the business and future potential. I found there are basically five ways to fund your growth and each has its own characteristics, requirements, needs and challenges. Over a three month period while out making sales calls with customers, I met with as many “potential buyers” for funding as I could to understand  shape and I even named my buyers, my ways to raise funds.( I had way to much car time, so stick with me)

Self Fund through sales revenue – “Willy Lowman”

 

State and Government Grants – “Annette to detail”

 

Friends and Family- “Have-I” , as in have -I got a deal for you

 

Angel Investors- “Michael”, like the archangel

 

Venture Capital –”Barbra”, from the show shark tank

 

The first I called “Willy Lowman” from Death of a Salesman. You are out chasing revenue, cold calling, following up on every potential lead, and networking like crazy. You bootstrap your way, working 12-14 hours a day meeting with clients who could provide that next big order. At night you stuff envelopes with letters and brochures, and scour the internet using social media tools searching for the right contact to speak with at your future targeted accounts.

Characteristics- You often find yourself bunking on friends couches and driving great distances simply because the meetings need to occur but you lack the capital to afford air flights and hotel rooms. You have a passionate connection to your product and you have the ability to sell convincing presentations that drive early orders. You may hire independent sales representatives to sell your product on straight commission, but quickly find they too require time, your most precious asset at this point.

Requirements – You have to be skilled at taking inventory of what you have to work with and leveraging it to the best of your ability while always being cognizant of the businesses cash requirements, cash flow. You personally will do without.  You need tenacity, good old fashioned (excuse the expression)… “piss and vinegar”. You will have many doors slammed in your face and you will need the ability to press on in the face of adversity. You know the “right” way to get orders, but you lack the capital today, so you do what you need to do. I have 50 other ugly truths in my eBook you can download off my blog. You have to possess the ability to create learning’s through each transaction and adapt quickly.

Need – samples, sell sheets and a clear understanding of the problem you solve, and who potentially has that problem. With some of the software out there today and help from friends in your network you can create some professional presentations and sell sheets. You must have a web site.

 

Caution – it’s not unusual to start a business this way trying to sell your way to success, however know that it is not for the faint of heart, and if you do it for too long you too run the risk of going nuts like our buddy Willy. If whatever you are launching cannot gain traction and begin to result in predictable sales revenues within 12-18 months, cut bait! Chances are you are pushing mud uphill and you have not answered one of the four questions with a yes.

So how about you…have you launched a business on shear tenacity? How did it turn out?

 

As you look back, how long were you in the bootstrap mode? (Or are you still in it?)

 

What did you find the hardest part of this phase?

 

What advice would you give someone who has desperately tried to scale their business, their dream for 18 months with no success?

The key to funding I have learned over time is to truly understand where your company is on the business growth continuum. Is your business pre-cash, do you have a few customers, some revenue… but needing capital to scale, ….?

Once you clearly understand where your business is, you can connect to the right kind of funding. As you move from self funding / friends and family to Government Grants to Angel investors to Venture Capital, you must clearly understand where you are at and what your buyer (investor) requires.

What I have experienced is friends and families are investing more in you and your abilities than the business. They are looking at your past success and your personal abilities. They have a personal relationship with you.

Government Grants/ other Grants are focused on answering a specific issue. You must be skilled at writing grant applications and clearly answering how your product falls into their grant offering.

Angels fund from small $20k investments up to $2 million from larger angel funds. Angel funds are groups of angel investors who pool their monies and invest in companies. Sometimes members of the fund may also wish to make “side car” investments in addition to the fund investment. Angels focus on;

  • proprietary product and or technology
  • leaders ability to lead organization, monetize opportunity
  • the market and your product solution’s potential
  • your team and its ability to execute
  • your exit plan, who would be potential buyers, or do you plan to go public

Venture Capital traditionally invests in opportunities over $2 million. They are industry specific and the cost of their funds in terms of equity in your business is often much greater. They are focused on return on their investment. They have specific business valuation models and your engagement with them will feel more like a business transaction than a relationship. VC’s will receive 1,000’s of pitches each year and only work with a select few companies that match their criteria. I recommend you watch the show Shark Tank and pay attention to the discussions, the interaction as it will prepare you for possible discussions you may be having should you pursue VC funding.

If you are an entrepreneur and feel the next step to truly scale your company is funding, make sure you understand where your company is at, and what type of funding source best matches your needs. If you are like me, you will find it the most challenging sales process you have ever experienced!

Is your Market Strategy one of a "Hawk" or a "Dove"? …

Posted by on September 11, 2010 with 1 Comments

 

Market leaders understand the importance of working their plan, and they do not focus on “crushing” the competition, but they do passionately serve their markets. (Doves) Market losers focus their energies on “beating”and “crushing” the completion and have little understanding of the problems of their buyers as their entire focus is on their competitor(s). (Hawks)

Doves strategically and passionately set out to solve their buyer’s problems. Hawks try to swoop in and destroy competitors who may or may not be perched with an understanding of buyers, their problems and buying criteria. (they are only as good as their competitors…who chances are do not understand their market) Ironically, Hawks actually believe their competitors must know the market or they would not be trying to “beat” them.

The trouble occurs when you chase the quest to destroy competitors you fly even closer to your competitor and farther away from understanding your market.

 

One of the benefits of working with a variety of business leaders is listening to their stories. Recently I met with an entrepreneur who shared how he learned one of the most valuable lessons in business strategy  long ago when he served the Marriott Corporation. He described their training and one of their sessions was called “Hawks and Doves”. In this exercise they broke off into small groups and were presented a business challenge. Predictably, everyone fell into the trap of wanting to attack and crush the competition as a Hawks. Admittedly there is a sense of machismo ego in being a Hawk after all. However the problem with being a Hawk is there are always Eagles who can swoop down ( out of seemly no where) and destroy you. Doves however are singularly focused; serving the needs of their market.

As Hawks, you rely ( focus) on your prey,… in a way you are counting on their smarts, their understanding of the market….a follower strategy.

This entrepreneur went on to share how when Marriott would have a location oversold they would have a network of other hotels they would send customers to. On the surface this may seem odd, right? However Marriott is and has been consistently one of the top hotel chains in the world. Their quality and service are consistently recognized as market leaders.

Market leaders serve their market.

Market losers focus on killing competitors.

When I wrote “are you a Pit Bull or a Poodle?” I shared the tenacity entrepreneurs must have . They have a  sence of ownership and not a victim out look. However I do not want to leave you with the impression that means attacking and chewing up your competition. Pit bulls have a fierce tenacity and jaw strength that insures when they clamp down on unresolved market problems and they do not let go.

 As Pit Bull entrepreneurs you clamp down on your commitment to solve your buyers’ problems with your product or solution, but do so with the market serving strategy of a Dove.

How about your organization…..

Is your focus that of a Hawk or a Dove?

How’s that working for you?

Does your mission statement sound like a Dove strategy but you work for a Hawk?

 At the end of the day, it’s about your team’s intentional focus. Are you focused on serving your market or destroying the competition?

Pick wisely…

As an Entrepreneur are you a “Pit Bull or a “Poodle” take the test…

Posted by on September 1, 2010 with 2 Comments

 

As I discuss in my EBook: The 50 Ugly Truths about starting your own business …and why you should do it anyway,… the way of the entrepreneur is not for the faint of heart. Chances are you clearly see a problem in a market you know, and you set out to solve it with your product or service solution. One characteristic all entrepreneurs possess is the tenacity of a Pit Bull.

Some time ago I came across a test  I often share with clients that asks the question:

 

Are you a “Pit Bull” or a “Poodle”?

 

Pit Bull Test


1. Do you have a definite purpose backed up by a burning desire to see it fulfilled?


2. Are you continuously in action working on your plan?


3. Is your mind closed towards all negative and discouraging influences from foes, “friends,” dysfunctional parents, music, books, tapes, T.V. etc?


4. Do you hang out with people who are greater than you in what they have accomplished and who utterly challenge you to excellence?


5. Are you self-reliant and independent?


6. Do you take responsibility for your life, both failures and successes?


7. Do you hate it when you waste time?


8. Do you look at life as a game to be played and played like a champion?


9. Have you become impervious to the criticisms of pusillanimous men and women?


10. Do you boldly face your fears with faith and move towards your goals?

 

 

Poodle Test


1. Do you often complain about your life?


2. Do you avoid association with people who have accomplished more than you?


3. Does your life seem futile and your future hopeless?


4. Do you often feel self-pity?


5. Are you envious of those who excel you?


6. Do you worry a lot?


7. Are you overly cautious and negative?


8. Are you indifferent and lacking in ambition and enthusiasm?


9. Do you constantly use excuses and alibis to explain why you haven’t accomplished anything?


10. Do you often fantasize about lying on the front passenger seat of a Cadillac with a pink ribbon in your hair with your favorite chew toy?

Ok, no one else is around….how did you answer the above? You must be real with yourself. Not everyone is cut out for the entrepreneurial game and that’s ok.  Some people are much better as soldiers than generals leading the charge. Some people intentionally chose not to risk letting any of the key plates drop and they serve teams.

The above questions are a great filter to guide you to see if the entrepreneurial game is for you. As I recommend in my EBook make sure you enter this game with a clear understanding of what this role will entail and you have realistic expectations for performance and cash flow.

So how about you…are you a pit bull or a poodle?

 

In your current role what should you be?

 

If you are in a role that requires a pit bull and you find yourself a poodle, what should you do?

“Pushing Mud Uphill” …Launching a New Product or Service Without Four Clear “Yes’s”

Posted by on July 26, 2010 with 9 Comments

launch new products like pushing mud uphill

One of the most exciting things you can do in business is launch a new product, service, or entire business for that matter. As high as six out of ten US adult consumers are thinking about launching a business at any given time. If you chose to take the leap yourself, you will experience what I refer to as the “50 ugly truths…” but in so doing you will become stronger, and if you survive you will ultimately help people solve problems.

I can’t imagine anything more rewarding than helping someone solve a problem they thought there was no solution for. If this is true, then why do over 70% of new products (businesses) fail?

They fail because they failed to answer “yes” to four simple but key questions.

Question 1

Do you clearly understand the problem you are trying to solve and does your product (service) solve that problem completely? (if you have already said “no” stop, gather more data)

Question 2

Are there enough people, a market of people, with this problem to meet your desired ROA? ( if your answer is “I think so” stop and validate)

Question 3

Do the members of the market you validated as big enough have the ability to pay to solve their problem? (there are all kinds of problems we all have, but we are not willing to pay to fix)

Question 4

Are the members of the market you validated that is big enough, with the problem you solve, and ability to pay, “willing” to pay now? (there are many problems we have, and we have the ability to pay for, but not the willingness to pay for)

If you answered “Yes” with current market data (not data from three years ago when you first came up with this idea) go for it!

But remember; An Idea is not a product and it’s definitely not a Business.

Where most entrepreneurs blow it …as Jim Collins refers to it is; Hubris. They believe because they have launched products in the past and they were very successful they trust their gut and intuition that there new endeavor will also be a huge success.


So what happens if you launch based on emotion and Hubris?….

Your sales may come, but slowly

You will miss ROA targets

Need to add investment, instead of cutting bait

Your sales team (who trusted you) will push mud uphill each day…the good ones will leave due to frustration

You strain your entire organization (who is probably already multi tasking) morale suffers

You demonstrate to your market you do not know them

Personally you will become frustrated, aggravated, distracted, and you will loose focus

How can I rattle the above off so quickly?…Because I have done it. I have experienced the rush of growing companies by launching new products and or new divisions and when I find what feels like a huge unsolved problem in a market ….I get excited (emotional).

Instead of gathering current market date, I used to move into; validate my gut mode.

Instead of admitting what I did not know… and finding answers…I relied on past experiences to get me through the unforeseen roadblocks.

I have felt the emotion that builds, and heard that little voice in your head that says; “I don’t care what engineering, marketing, operations, and sales thinks we should do, or the more information they want to gather…we need to launch before someone else beats us to market”

What I lacked back then was a filter…simple filter that quickly cuts through the emotions and feelings and quickly lets you know if you have an “idea” or a “business”. The above four questions are the filter I recommend everyone use PRIOR to launching your new product, service, or business.

How about your company….

Have you ever had to push mud uphill?

While your team loyally pushes mud uphill, what is the opportunity cost of their time?

Do you have other questions to add to the filter to insure the products you launch do not fall into the 70% of those that are an expense without a ROA?

Again, having launched products, services, even new businesses in my career I understand that inner rush of adrenaline that makes your creative juices fire on all cylinders…I do. Maybe it’s an age thing…but I now highly recommend a pause, a strategic pause, before you launch and ask yourself the above questions.

To insure you maximize your percent of wins and your ROA for new products, make sure you use a filter, get the four “yes’s” prior to launch.

If you do not use mine above, I have also used the economic value added model back in the day. This model helps insure decisions are not made of Hubris.

Whatever you do, do not rely just on your gut, and or your key accounts, friends, and family members saying “go for it”.

If you would like to read more about this topic, I recommend you read;

Tuned In

How the Mighty Fall

Delivering Happiness

Delivering Happiness; Enterprise Rental Cars Knows it’s About Doing a Number of Little Things, Consistently Well

Posted by on July 14, 2010 with 28 Comments

 

 

Delivering happiness to your internal and external customers is not about just doing one big thing very well. Market leaders understand delivering happiness is about intimately understanding your customers and your market and consistently doing a number of little things exceptionally well.

Delivering happiness is the “golden rule” in action.

 

This week my work brought me to Chicago. As I discussed in a previous post about the buying experience as a differentiator , my preferred rental car company is Enterprise Rental Cars because of the amazing expertise I had at their Denver location.

I arrived at the Chicago airport, retrieved my checked bags and I was off to the rental car shuttle bus location. When I arrived I was happy to find the Enterprise bus waiting and I quickly boarded. The driver helped me with my bags and provided me a map to help me return the rental car when my trip was over. Another bus arrived and we were quickly off to the rental car parking lot. On the trip the driver (just like Denver) said “we will be arriving at your car in approximately 12 minutes”. As we drove the driver offered to provide us directions if we needed them. The driver radioed “we have two customers approaching and we are two minutes out”…great, I wonder if they will greet us when the van rolls up like Denver?

Sure enough, we were greeted by professionally dressed associates waiting for us. They introduced themselves and invited us inside. As I made my way to the counter, I was offered a cold water to drink. (How did she know I was so thirsty)? We quickly started on the paperwork and she asked how my flight was. Interesting, this is when Dollar or Hertz is typically trying to sell me a GPS rental or insurance, and she seemed to genuinely want to know about my day…

The reservation was pulled up quickly and she led me outside to pick out my car. I chose a small Kia and she walked around the car with her clipboard inspecting the car for damages with me. Again, how nice as this is my job with other companies and it never seems to fail I miss something. She asks about gasoline and insurance packages, but in a way as if she was concerned about my overall service experience and not like she was receiving a sales spiff like I have experienced with Thrifty and other rental car companies. Again she asked if I needed directions and she drew on my map the route to my hotel. She too offered me a map for returning the rental car and circled the directions I would use based on the location of my hotel in Shamburg. She quickly handed me my paperwork and said; “you will need to show this paperwork and your drivers license to the guard at the gate when you leave”. How did she know? How did she know one of my (many) travel pet peeves is if you need to see my drivers license again when I leave your lot, tell me. Don’t wait until I am in the driver’s seat, seat belt fastened and now having to retrieve my wallet and license again. Awesome, it’s like they shadowed me for the past 26 years of traveling and know each of my needs.

Another smaller irritant if you will is finding a radio station I like. Not a big deal mind you, but I often find myself trying to find a station , as I am driving at night in a strange place, trying to follow my Google Maps directions while keeping my eyes out for the right exit signs. When I sit behind the wheel of my Enterprise Rental car I look up and there, hanging from the rear view mirror is a list of radio stations…again how awesome.

After my work was completed I followed the circled directions and quickly found the rental car lot for my car return. When I arrived I was directed to rental car returns and found three people, professionally dressed again, waiting to help me. I would say from the time I pulled in, to the time I was back on the bus to the terminal was no more than 3-5 minutes. Again…awesome! They must know that travelers on their way home just want to get home. We seem to lack patience even more so on the return home than when we arrive and waiting in lines to drop off a rental car is not something we want to do.

Enterprise Rental Cars is in the delivering happiness business and they again reinforced my loyalty based on an amazing overall buying experience.

 

To deliver happiness you must intimately understand your buyers and not rely on your gut and intuition.

 

The test if you are truly committed to delivering happiness is the repeatability of the overall service experience.

 

Market leaders identify customer needs and build repeatable processes and procedures that insure a quality experience each interaction.

 

Market leaders committed to delivering happiness also instill a passion in their team members that is seen in authentic individualized service that reinforces the overall passion to serve.

 

So how about your team?…

 

Do you choose to deliver happiness to your internal and external customers?

 

Is your customer experience the same in Denver as it is in Chicago, Cleveland, or Miami?

 

Do you have processes and procedures in place to insure you consistently deliver happiness? (Market leaders do)

 

How can you instill a passion to deliver happiness in your organization?

 

Just as Enterprise Rental Cars has taken what historically was a matter of fact exchange of service in renting a car to an opportunity to deliver happiness, you can too. You too can get to know your buyers, your market and identify all those little opportunities to serve them that often cost very little but have a huge impact. To do so you need a culture passionately committed to the overall customer experience and an intimate knowledge of your buyers, their needs, and frequent problems.

Oh…as a side benefit, when you passionately deliver happiness customers are forgiving when things go wrong. When I arrived at my hotel I noticed my automatic door locks and truck release did not work. Given how many times I was in and out of the car and trunk over the weekend this would have normally been something that irritated me and tainted my overall buying experience. Since so many other parts of the buying experience were amazing I found the door and trunk release not working not a major problem. I was more forgiving of those inevitable occurrences that go bump in the night than I would have been having rented a car else ware.

Are you in the delivering happiness business?

 

If not now is as good a time as any to start!

Delivering Happiness; Proof …the “Golden Rule” is Profitable !

Posted by on July 9, 2010 with 8 Comments

  

 Delivering Happiness: A Path to Profits, Passion, and Purpose

Does your business (do you) solve your customers’ unresolved problems? Does your team’s culture promote serving your internal and external customers to ultimately deliver happiness in their lives? Or, are you like the 90% of businesses out their hunkered down, focused on your numbers…driving costs out of your business…achieving your objectives…striving to hit your bottom line?

Businesses who passionately deliver happiness through solving their customers’ unresolved problems grow rapidly and are significantly more profitable than those with an inward focus.

 

Market leaders passionately serve their market’s needs and experience greater shareholder value than those inwardly focused.

 

If you read my blog, you know I enjoy reading. Some time ago one of my mentors said “leaders are readers” and this gave me a ravenous appetite to read and learn. I just finished: Delivering Happiness ;A Path to Profits, Passion, and Purpose by Tony  Hsieh the founder of Zappos. The book is a quick read as it is written in a conversational tone that makes its overall message and stories connect. What I enjoyed most is you cannot argue with Zappos success having just recently been acquired by Amazon for $ 1 billion.

We know the “Golden Rule” is something we should all live by….” Do onto others as you would have others do onto you”, however many business leaders are afraid of weaving this into the very culture of their businesses due to fear. The first fear usually comes from the CFO types out there…are you crazy, do you know how much that will cost us? (they are quickly won over when sales and profits grow exponentially)

Then there’s the hard-driving, what DISC would say is a “Driven” personality types, who says…serve my market? I want to drive results through my market.” (they can be convinced)

Lastly we also have the old school (market loser) mentality that says; I win you loose and the delivery of goods and services is about their personal needs and is not in any way connected to their customer’s needs or problems. They look at each day as a competition to sell their product or service, to overcome the buyer’s objections, and create a need for their product in their market. (they rarely change their beliefs and are often removed due to poor overall team performance)

The first two examples, the concerned CFO and the Driven leader can be convinced, however the business leader who is out for his own personal goals …well he or she will take a great deal of convincing and may never see the light based on my experience. The sad reality is this last type often looses what they are working so hard to create since they are focused on the wrong self-serving outcome.

I enjoyed this book as it truly captures the thoughts and emotions involved in the minds of entrepreneurs in the start-up phase of the business. Tony shares those bleeding edge of decision moments that brought me back to a number of personal experiences I have experienced. If you have launched a business or even a new product to some degree, you may have experienced;

Will we have enough cash?

 

Will that promised big order come in?

 

I now know what we need to do but can we truly afford to do it?

 

Will that big receivable we have been waiting on arrive in time for us to make payroll?

 

Should I continue to personally invest in this business or cut bait?

Can we find the funding we need in time?

 

I particularly enjoyed Tony’s account of the roadblocks and the corresponding emotions we all face in launching anything new. In the past 26 years of launching new products, new businesses, I cannot recall one that we did not encounter unforeseen roadblocks. What we must quickly do is identify the issue with unfiltered data, focus on the solution, the objective we plan to achieve, and take action.

Businesses that face roadblocks like the proverbial deer in the headlights get run over.

 

What stands out most is how Zappos is a current example of a business that intentionally has woven the golden rule through their culture and their brand. Far too many organizations launch with an unintentional disconnect between what they say in their mission and value statements and what they actually do. This disconnect is felt internally as well as in their market and in both cases violates trust.

Establishing trust is the most critical foundation in building win-win relationships with your internal and external customers.

 

Zappos intentionally set out to create their culture and clearly defined their culture in terms of 10 core values;

  1. Deliver WOW through service
  2. Embrace and Drive Change
  3. Create Fun and a Little weirdness
  4. Be adventurous, Creative, and Open-Minded
  5. Pursue Growth and Learning
  6. Build Open and Honest Relationships with Communication
  7. Build a Positive Team and Family Spirit
  8. Do more with less
  9. Be passionate and Determined
  10. Be humble

 

Tony goes on to say; “many companies have core values, but they don’t really commit to them. They usually sound more like something you’d read in a press release….We believe that it’s really important to come up with core values that you can commit to.”

 

So how about your company….

 

Do you have core values? Can everyone on your team rattle them off…or just HR?

 

Are your core values intentionally woven into how you serve your market…or are there exceptions to the rule?

 

Have you intentionally set out to build trust with your internal and external customers?

 

Does your team authentically live the core values of your organization in all they do…or are their very actions breaking trust with your internal and external customers?

 

Do your team members have the freedom (and sense of safety) to boldly challenge practices not in align with your core values?….even if one of your senior leaders is violating them?

 

As I mentioned in a blog that discussed Delivering Happiness, this is not just a book…

 

Delivering Happiness is more than a business model …it’s a Movement

 

So I ask you again;

Is your business, (you), your team, delivering happiness to your internal and external customers?

What is the cost to your bottom line if one of your competitors intentionally sets out to serve their market when you continue your inward focus on your goals and your bottom line?

Do I need a Passion Statement for my business? Take the short quiz…

Posted by on May 26, 2010 with 6 Comments

 

 

As I discussed in my post : Want to Jump Start Sales and Morale? Write a “Passion Statement” For Your Business…. A passion statement will jumpstart your sales and improves your team’s morale. Business leaders often spend a great deal of time on mission statements, their unique sales proposition as well as their stated team values. These are all needed , however nothing unties a team and inspires your buyers to buy like an authentic passion statement.

So how do you know if your organization needs a passion statement?

Please answer the below questions with the first answer that comes to your mind.

What I am looking for is your feeling more than an answer you spend time rationalizing.

  1. Do your customers perceive your product as a commodity?

  2. Has your overall gross profit as a % of sale decreased in the last 6 months?

  3. Do your team members work 9-5, no more, no less?

  4. When you work with salespeople in the field do you discover your key accounts are purchasing products from competitors because they were not aware you carried them?

  5. Has 50% or more of your sales team missed their goals over the last 6 months?

  6. Do your competitors always seem one step ahead of you with new products or services?

  7. When you launch new products, do they miss their ROI targets?

  8. When you review the performance of your last 3 new products would they be categorized as “evolutionary”? ( instead of revolutionary)

  9. Is you employee turnover greater than 20%?

  10. Have you lost one or more of your Key accounts in the last 6 months?

  11. Has your AR increase by 10 or more days to collect?

  12. Do your salespeople complain your products are significantly priced higher than competitors?

  13. Are salespeople listing features you must build into your product to make the next sale?

  14. Are you frustrated that your team does a good job of identifying roadblocks, but fails to develop plans to break through them?

  15. Have you ever said…” I am frustrated; I want my team members to act like owners and not just employees”.

  16. Have you lost a key employee over the past 3 months unexpectedly?

  17. Are you having difficulty identifying and recruiting new team members?

  18. Do your team members have more than 3 key performance indicators you evaluate them on each week?

  19. Is more than 3 hours of your week in meetings?

  20. Do you feel the need to create weekly objectives and activities for your subordinates, and “manage” them closely?

 

Here’s the deal….if you said “Yes” to more than 5 of the above you and your team need a quest, you need a passion statement to jumpstart your business.

If you answered “Yes” to 10 or more you are already on the slippery slope of becoming a Market Loser.( take corrective action now!)

 

How does your organization answer the above questions?

 

Based on your answers do you need a passion statement?

 

How do your clients describe your team and your products when you are not around?

Want to Jump Start Sales and Morale? Write a “Passion Statement” For Your Business….

Posted by on May 24, 2010 with 6 Comments

 

Business leaders for years have been taught to write a mission statement, a values statement , distinctive competence, and their Unique Sales Proposition. Leadership teams are sequestered off to three-day retreats to write these statements only to often return and go right back to practicing what prompted the retreat in the first place…Why? The reason is far too often is the “work” they did at the retreat was all “head work” and lacked “heart work”.

The quickest way to jumpstart sales as well as the morale of your team is to create a “Passion Statement”.

 

So what is a passion statement? A passion statement is something I help my clients to create that explains;

  • what problem your product or service solves?

 

  • who do we solve it for? Who are our buyer personas?

 

  • what emotion does our solving the problem create in our clients?

 

  • what emotion does solving our clients problems create for us?

 

If you study companies who have become market leaders they very seldom set out to build huge profitable companies. In the majority of the cases they saw a problem that someone had and set out passionately to solve that problem. Their focus was not as much a business as it was a quest.

For years we have heard; “fake it until you make it” , unfortunately however you can not fake a passion to serve your clients and your market.Your customers will quickly detect inauthentic commitments to serve.

An authentic passion ( quest)  to serve your markets unresolved problems takes your business to another level in the minds and hearts of your market.

 

Let me give you two examples of companies I have helped. One is a typical stale example without passion often find after interviewing their team and their customers, the other a passion statement we all can rally behind.

Example A

 “our business’s purpose is to create wealth for our owners and shareholders. We plan to accomplish this by charging the maximum price the market will bear for our product and service and we plan to hold our employees and partners accountable to this objective…” ( don’t worry once the CEO understood this was his teams’ perception ( and his customer’s) of why they were in business we helped them to change this )

 

Client Name not shared for obvious reasons

 

Example B

 

“Our passion is to helping consumers with physical disabilities from the waist down experience the rush and  freedom that results from riding a motorcycle.We are committed to helping our clients connect to their passion or riding”

 

Mobility Conquest

 

 

Which company would you like to buy from?

Which company would you like to work for?

Which company is “selling” you and which company is “helping you buy”?

 

If you had to state your company’s passion statement today…is it more about what you want? Or is it about serving an unmet need of your customers? ( by the way, I do not mean the statement written on posters, shared in quarterly meeting …I mean the mission your team ( and your customers) perceive it to be)

 

Who would you rather compete against… company A or B? Why?

Ok …I hear you CFO’s and bottom line driven CEO’s out their saying …”Ya… but…” so let me assure you that if you study the most profitable market leading companies they have a passion statement.

Still not a believer? In my next post I will share the signs that you need a Passion Statement.

Top 20 Entrepreneurial Best Practices to Make Sure 2010 is a Profitable Year

Posted by on October 28, 2009 with 6 Comments

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When I wrote my EBook: 50 Ugly Truths About Owning and Running Your Own Business…and 5 reasons why you should do it anyway I was responding to a number of misperceptions I was hearing from entrepreneurs.

Historically, at any given time six out of ten US adults is thinking about starting their own business. A number of new entrepreneurs are emerging that  I refer to as “necessity-preneurs “who were downsized and can not find new employment, are deciding to launch their own businesses as they want a much more active role in the security of their careers. The last group are cashing in their 401k and or borrowing from friends or family to buy an existing business and in a short amount of time realize they really just bought a job and they are quickly running out of cash.

One thing I have learned over the past 25 years of identifying roadblocks impeding businesses profitable growth is there really is not any new creations in terms of problems and strategies to grow a profitable business. Peter Drucker simplified it even further; there are only two considerations; innovation or marketing.

Just as I shared 12 mentor moments that I have used personally over the years to help businesses grow profitably, I have the Top 20 entrepreneur best practices that I have observed and lived over the years.

#1 “More” Sales or “Create Sales Velocity”?

#2 Dismiss or Distribute “Yafo’s” quickly …

#3; If Sales are Scary, You Can NOT Afford to NOT get Creative..

#4 Remember “The Law of the Locker Room”… it truly is a small world after all

#5 Tailor Questions for your buyers that Illustrate your Expertise and Prepare you to Serve their Needs

#6 Learn To Cut Bait …early

#7 You are Not Your Market

# 8 When Sales Get Rough…Look for Diamonds

#9 Don’t Let the Two Most Important Plates Drop

#10 “How” you “CHASE” New Business Matters….Do you want pepperoni with that new checking account?

#11 Follow the leader is a dangerous game, particularly when you follow Hippos…

#12 An “Idea” is not a product…and it’s definitely not a business

#13 Hire Strategic Partners… Not “Marketing Tools”

#14 Customers will Stiff you…But Don’t Let Them Burn you…

#15 Beware of “Smores”…Social Media Whores

#16 “Make a Wish” come true with Focused Passion

#17 intentionally reward the customer behaviors you desire …

#18 You will Receive Your Best Tips To Grow Your Company From Prospects Who Do Not Buy From You…

#19 Interview those who Exit and identify Roadblocks to Achieving Your Strategic Objectives…

#20 Exercise Your Power of Choice in Choosing Your Role on the Team…If Your Gift is Being a Duck….Be a Duck!

 

The above are by no means an all inclusive list of every entrepreneur best practice but they are some of my favorites. The post that seemed to resonate the most and create the greatest number of discussions was the difference between creating “more” sales versus “creating sales velocity” ( entrepreneur best practice #1).

 

 

How about you….do you have an Entrepreneurial Best Practice you use regularly and would like to share?

 

 

Of the above which best practice(s) resonate most with you?

 

 

Which of the above do most entrepreneurs struggle the most with based on your observations?

 

 

Is there a Key best practice not identified? (If so please add to the discussion)

 

 

As we move into 2010 which of the above Best practices do you feel will resonate most? Why?

 

Thanks for hanging with me  in this series of posts and I want to particularly thank those who have reached out to me personally to discuss this series of posts. As I have discussed, I enjoy helping entrepreneurs realize profitable growth and the strategies discussed are not new. One of my goals in blogging is to help business owners who may not be able to afford outside help at this time and I hope this blog adds value.

If you are wired to take on the 50 Ugly truths of starting and owning your own business and you have intentionally chosen to do it anyway I hope the above best practices were of value to you and your team.

Entrepreneurs will lead our country to economic recovery and I am proud to serve this innovative group of passionate problem solvers along with my other clients.

Entrepreneur Best Practices: #20 Exercise Your Power of Choice in Choosing Your Role on the Team…If Your Gift is Being a Duck….Be a Duck!

Posted by on October 26, 2009 with 0 Comments

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As the entrepreneurial leader you have natural gifts. Market leading entrepreneurs understand a key principle; you have the power of choice…chose to exercise your power of choice in choosing the role you will play on YOUR team. Market losers focus on what they are not, and try to become experts in all the areas of business and thus dilute their personal giftedness and ultimately their contribution to the team’s bottom line. Market leaders know what they know as well as what they don’t know.

Our Pastor at church has started a series on how we have a role to play in adding value based on the spiritual gifts we were born with coupled with those skills we developed over our life time. This message resonated with me both personally as well as made me think about a meeting last week.

When I meet with business owners and leaders the first thing I do is perform a triage of sorts. I ask a number of questions. I identify first if this is someone and a business I want to help. For example, I was asked to meet with a local entrepreneur about two years ago and when I discovered he wanted my help launching a smokeless cigarette that could help more consumers get addicted to nicotine and caffeine,..I chose to pass.

 

Secondly is the problem this business experiencing one I can solve? If not I refer them to one of my trusted network partners. I have a number of questions I use to identify what is and is not happening in the organization. Often the owner’s inability to answer some of my questions are answers in and of themselves. One area I need to focus on early is the owner’s objectives and motivations. Once I understand the true goals I can serve their team and provide the maximum value in the shortest time.

One of my questions that consistently creates a “pause” with entrepreneurial leaders is;

What are your dreams, your goals for this business and what do you personally want to do, and where do your gifts add the most value? ( not what you like to do…but what are you good at?)

 

What is often the case the entrepreneur started their business based on their personal gifts and seeing how their gifts can solve a particular market problem. They launch and realize success. Their desire to serve the market grows into a business and things begin to change. They start hiring team members, dealing with vendors, promoting the business, funding the business….and as time passes they move into a role of running versus doing their business. The shame is they focus so much energy on areas they are not naturally gifted in and they end up moving farther and farther away from their personal giftedness. When this occurs the owners stress increases, she feels like she is being pulled in 100 directions and nothing is getting done. The joy they once experienced when they first launched their business is gone…and now their business has become a job and no longer is a passionate quest.

I often shock business owners and leaders in this first meeting when I say;

There is a big difference between “making” widgets, and “running “a business that makes widgets…where are your gifts best used?

 

We are all uniquely wired with blessings we are to use to serve others. As that business consulting expert Jimmy Buffet shares…

“A blessing can become a curse if you keep it to yourself”

 

Our Pastor shared a story Sunday that I have heard before but this time resonated in a new way. It seems at the time of creation all the animals got together and decided they needed to focus on specific gifts as a group ; running, swimming, climbing and flying.

So the duck was an excellent swimmer but struggled with running. Not wanting to let the other animals down, he decided to focus on becoming a better runner. He trained to run faster and in the process got marginally better but tore the webbing in his feet. When he returned to the water he found he could not swim with the same expertise and speed he once had.

The rabbit was an amazing runner, but had difficulty swimming. So he focused on improving his swimming. In the process of doing so the muscles that made him a swift runner atrophied and when he tried to run, he could not run as fast as he once ran.

The squirrel was an amazing climber, but no matter how hard he tried he as not good at flying. After multiple attempts that ended in crashing to the forest floor he permanently injured his legs and this hampered his ability to climb with the same speed and efficiency he once had.

The eagle was amazing and the best at flying high above the earth and then quickly swooping down to capture her prey. He could catch the currents and seemly soar and dive without effort, but he was not efficient as a climber. He worked tirelessly to be a more effective climber, but in the process his wings became weak and he could not catch the updrafts he once could and could no longer soar to the heights he once exclusively owned.

 

Market leaders understand their gifts and use their gifts to serve their internal and external customers.

 

Market losers spend time trying to perfect areas that are not within their natural giftedness and ultimately reduce the value they provide their team and their market.

 

How about you…do you know your natural gifts and are you using them?

 

Are you in a role on your team that uses your gifts?

 

What should we do if we are in a role that does not use our natural giftedness?

 

As a business leader, entrepreneurial owner do you feel comfortable returning to your giftedness and hiring someone to run your business that is gifted in growing businesses?…why or why not?

 

 

I am not saying don’t learn about the other skills that can add value to your business. What I am saying is stay focused on serving your team and your market with your gifts. As the leader you will want to become aware of other skills , but do not try to become an expert in these areas as it will only dilute your gift’s contribution to the bottom line

 

I find one of the quickest ways to help businesses grow is to identify the various team members’ gifts, starting with  the leader and or owner, and making sure the role they play on the team is in alignment with their gifts. What is often he case is I give the owner a pink slip in running the business and I help find someone skilled at running businesses so the founder can return to their gift. They often express a sense of ….”am I allowed to do this…or is it OK for me to have fun again? “and my answer is always Yes! ( after all it is still your business)

If you are a duck…be a duck! You will swim much faster than those other ducks that are spending hours of frustration trying to become faster runners. While they dilute their gift you will remain focused on adding the maximum value by exercising your gifts.