Don't Stop And Expect The World To Stop With You

The more I learn about the human experience, the more I realize that happiness requires growth every day. Not life changing growth each day, but instead, an evolution of spirit which can often only be measured over weeks, months or years.

Avoiding change and stagnation, on the other hand, are poisons to us all. Stability may feel good for a short period to "simplify your life - trying to keep life basic and measured for days at a time. But if you make this your modus operandi, you doom yourself to watching your dreams disappear before you.

The truth is, the world grows and changes around us, along with those who we hold dear to us. As happy as you may be today with what you have or who you are, that too shall pass as the circumstances that create your happiness change before you. Your babies become young adults and need you less. Your youthful, flexible and strong body will become old, and less agile. The industry you are in will evolve and out of it will grow a new industry. Each of these things will disturb your life and necessitate growth on your part - require you to become more than you are today.

Are you ready? Do you know what you want in the future?

Do you have a strategy for moving forward in a positive manner or are you just going to let it happen to you - let life pass you by and sit idly by as it happens?

You don't have to begin with dramatic change. It might work in the short term, but the likelihood of large short term changes creating long term growth towards your desired end is very slim.

Just look at life around you, it changes slowly. Sometimes even imperceptibly. And as such, you should take the same course of action. Build into our life slow and consistent, evolutionary (not revolutionary) change. The kind of change that you may not see at the end of every day, but when viewed over the course of weeks, months and years, the growth is dramatic.

Build small changes into your life that over time will create
the YOU that you want.

For example, if you currently are lacking the educational degree to move forward in your field of expertise, don't quit your job and go back to school full time, take classes - one at a time. Sure it might take a couple years, but before you know, it you will there.

Bottom line, personal change management isn't rocket science. Sure you can try to avoid change in your life, but whether you personally try to change or not, everything around you is. It's not a matter of accepting change or not in your life, instead, it's a matter of participating in it or not.

Don't do it. Change is coming. And it's inevitable even though you may not see it.

Stop being stagnant. And take charge of the changes in your life!

With Employees, Reward The Behavior You Want

Whether your business is large or small, if you have employees, you probably struggle with productivity. A recent blog on Small Business CEO called "Offering New Employees Incentive Pay Instead of Large Salaries" brings up the ever important topic, How do you compensate your employees so that they work for you, are committed to you and are motivated to do the work that is important to the success of your business?

Believe it or not, the answer is simple. But with most simple answers, the implementation is the gotcha. The answer is to reward the behavior and results you want from your employees.

It doesn't matter at what level of your business your employees are, their compensation should be directly tied to the results and / or behavior you want. From the Janitor to the CEO - everyone should be rewarded based on production - not just effort. And definitely not for just showing up every day.

Sure, if you want someone to just occupy a chair (answer phone calls / man a desk) for a certain number of hours per day, and don't care what they do when they are there, then pay them an hourly wage or even a salary. But if you want them to actually do things that are important to the success of your business then reward them for what you want done - not for showing up.

Don't kid yourself though, this is a very scary concept for both you, as the business owner, and your employees. And it requires a lot of work. For you, as the employer / manager, you will need to take the time to figure out what you want and how to measure it, as well as how to compensate it. And for your employees, they most likely have never been held accountable for their work like this before and will be initially resistant to the idea.

Truth is, almost all employees would much rather continue to get paid just for showing up and doing what you tell them to do, than have their pay be dependent on the level or quality of their work. But that's what you are doing now - and if you are like most business owners / managers, it's not working for you.

I know in the current economic and social climate, with words like this, I might be calling for a lynch mob. But to be honest with you - when you build accountability into your compensation system and reward the behaviors that you desire in an employee two things happen:

1. You increase the production of your employees while often decreasing the need for excessive management oversight
2. You share with your employees the fruits of their labor. Literally you build a band of Entrepreneurial-Minded employees.

In order to implement these ideas, there are two things that you must do:

1. Figure out WHAT you want to reward.
2. Decide HOW to reward it.

So first we start with "WHAT" to reward. And that means writing Job Descriptions - Roles, Responsibilities and Goals for every position in your business. And yes, I know nobody wants to do this - as it is one of the most difficult things you will ever do as a manager / business owner. But, in spite of the hard work involved, I've got some good news for you, when you are done writing the job description with the help of your employees (as much as possible), you will literally be amazed at what happens. The work that you say you want to get done, will get done. And most likely they will be happier and more committed than you have ever seen them before.

Truth is, in the absence of a job description or your direction, employees will begin to do what they think they need to do. This isn't a bad thing, but it's rarely exactly what you want done. So don't leave things to chance - figure out what you want done, what you want them to do, and make it happen.

Second, in the process, is HOW you are going to compensate for accomplishing what the job description says for the your employees to do.

Traditional pay is usually built around one of three models: hourly, salary, or commission. None of these pay systems are bad, per se. However, you are getting what you pay for.

- In the case of hourly wages, you get hours. Production requires continuous management.
- In the case of salaried employees, you are paying someone to be there when you need them and to do a job, but whether they do it well or not, they still get paid. Again production requires continuous management - or a very well laid out plan.
- In the case of commission, you get results - but only exactly where you define them. But what you don't get is any form of allegiance to the business - because the employees are pretty much working for themselves.

I believe the answer is the blend of the compensation methods - a compensation system where the employee gets a base salary (I recommend 50% of target average income), including some form of benefits, plus some form of "results-based compensation" that is attached to their goals. And as they begin to produce what is required of them, they earn more and more - often with no limits, except their own ingenuity and hard work.

With this form of compensation, you are doing three things. First, you are demonstrating a level of commitment from the company to the employee by giving them a salary that they can count on (even though they won't be able to live on it). Second you are giving them incentive to do the work that you want done, minimizing the "oversight" of constant management - literally the compensation has built in accountability. And finally if they decide to produce more than is expected of them, they have the ability to take home an even higher salary, as they benefit with you in the profits of their labor.

So, if you are tired of struggling with idea of either being a micro-manager or not getting the productivity that you want and / or need, then think about doing something a bit different - think about rewarding the behavior and results that you want from your employees.

The Secrets to Building a Business Plan That Works For You

Building a business plan is as important as anything that a small business owner will do to ensure his survival. And unfortunately, most small business owners will usually fight tooth and nail to avoid doing it. They think that it's pointless and irrelevant in the conduct of their business. They see it as something that only big businesses need to do.

But like so many other things that small business owners tend to ignore, it's not the business plan itself that is the key to helping a business grow properly, it is in the act of building the plan that is most beneficial.

The Business Plan, itself, is just the product you build - something that usually just ends up on a shelf collecting dust. What really makes the plan so important to the long term success of your business is going through the process of writing it and finding the answers to the questions that you must answer in doing so. Because the process includes analyzing and deciding how you are going to conduct every aspect of your business: from operations to marketing and from human resources to training.

You see, most perspective small business owners don't stop and look at everything that must be done each and every day for their business, before they start their business. They don't understand that running a small business is more than just doing what they do best. Sure, it is following your passion at first, but very quickly you learn that it's also creating a marketing plan, building a sales strategy, devising a training program, creating a human resource plan, and financial system, just to start.

Instead, most business owners build their business only as the needs arise - as opportunities (or problems) present themselves - instead of on purpose, intentionally.

Business Plans, on the other hand, are built to give you a tool to work from - both on good days and bad. Plans are a road map to success. And although most people would know to "use a map" when trying to navigate in an unfamiliar city, they seem to think they can navigate the difficult elements of starting a small business without any form of plan or guide to help them.

So how do you do it? How do you build a business plan? How do you write a plan that works for you - instead of one that is nothing more than a document on a shelf?

There are two answers that I have for that - depending on your current situation.

First, if you don't already have a business that you are currently running, then I would recommend you write the entire plan before taking your first step. Take the time necessary to learn what it is going to take to run YOUR business (not just any old business) by building the plan. Figure out how you want to do everything - including what you want to do, why you want to do it, and how you want to do it. Decide on your operations procedures, as well as your marketing strategy. Plan it all - as if you were already doing it. Because more than anything, what you want your Business Plan to be is a reflection of what you do first and then how you are going to do it better second.

Or, in the case that you already have a business, then it's easy (or it least it sounds easier). In this case, you start writing your business plan by writing down everything that you are already doing. Write down you Mission, your Vision, and your Commitments. Write down your operations processes and systems. Write down everything you can about how you are currently marketing as well as your sales strategy. Write down how you hire people and fire them. I don't care which part of your business it is, write down how you do it. And that will be the first step to creating your business plan.

Yeah, there's more to a business plan - but if you simply got this far, you would be years ahead of where you are today.

The next step is deciding how you are going to actually create the goals that you want - defining how you plan is going to evolve over time, what's going to happen when and what all of your contingencies are giving possible market conditions. But that doesn't matter now. We can work on that, after we first get things started.

In the end, a business plan is first and foremost a tool for you - a tool that is meant to help you run your business better, not something that you have to do to make your Banker or Business Coach happy. It is both a reflection of what you are doing today and where you want to go in the coming years. And with everything that I talk about in my blog - it's not a matter of knowing all of this, it's a matter of acting on it.

Just Write It!

Are Your Sales Down? By How Much?

Ask any small business owner these two questions and they can usually give you exact numbers.

But ask them the more important questions, "Why?" or "Which element of sales is down?", and most will look at you with completely blank stares. Or they will ask you a question right back, "What difference does it make?"

So I ask you, the reader, does it matter? Should I care why sales are down, or just that sales are down? Probably no surprise to you, but in my opinion, the answer to both of these questions is, "Absolutely, it matters."

If your industry average sales numbers are down 30% and you are only down 5%, are you doing something right or doing something wrong?

How about if your new customer sales are up 25% but your repeat customer sales are down 40%, do you have a marketing problem, an operational problem, or perhaps both? What if those numbers were reversed.

Unfortunately, it's my experience as a Small Business Coach, that most owners are incapable of asking these questions, because they don't gather the information necessary to even consider them. All they seem to care about is total sales and, surprisingly, to a lesser degree total profit. And no matter how much I try to get them to seek out more data, they continue to fall back on these big picture numbers - and stop there.

So what can you, as a small business owner, do about this? First, you need to recognize that you have a responsibility to your business to do whatever it needs to help it survive - not what feels good to you. And you can start with grasping the idea that your business needs you to start managing it - and stop letting it manage you.

The first step to management is measurement. So start measuring everything. Measure the number of times the phone rings (and what times it rings). Measure average sales every day, what kind of sales occur between 2-4pm on Tuesdays and which ones occur on Wednesday evenings. Measure your conversion rates, from both phone-in and website leads, separately.

But don't stop there. If you can think of it, measure it.

Do it all by hand at first (if you must). But over time, figure out how to automate it all.

And remember, the more you measure, the more you can manage. The more you can manage, the more you can begin to improve. The more you improve, the better the bottom line. And that's your ultimate goal - to improve your business and drive up profits.

Sales Management & Leadership - Effective Communication Is the Foundation

Let's take Tom Schaber's blog entry on Sales Management and Leadership to the next level. Effective communication isn't just for Sales Managers - it's key for anyone who is on a team - whether you are the leader of the team or just a team member.

Truth is, "Communication" is the underlying key of any relationship. And communication requires trust. Which in this context, is not referring to trusting someone will do what they are told. Instead, in this context, it refers "trusted" and open communication.

Trusted communication exists when each person respects all other members of a team and has their best interests in mind as well as the best interest of the team when communicating with each other. They will listen respectfully and be open to the words spoken - as well as being willing to speak their mind, knowing their words will be honored.

Think about the teams you are on - whether you are the leader of the team or just a member. Do you feel safe to say what's on your mind? Do others listen and respect your opinion? Do you make others feel safe to speak their mind?

Do you trust the others on the team enough to openly speak their mind? Are you trustworthy enough that others feel safe speaking their mind in front of you?

Think hard about the answers to those questions.

I would like to say that it is the leaders responsibility to make all of this happen - but in most situations, the leader / manager doesn't know enough to do it on their own. And if you wait until they figure it out, you might be out of luck. So, whether you are the leader, or just a team member, make the environment you work in a trusted environment.

So what can you do to build trust in the work place? It's simple - Be Impeccable With Your Word! (The first Agreement from don Miguel Ruiz's The Four Agreements)

- Respect others opinions and stand up for them whether you agree with them or not - making sure they know you will make sure their voice is heard. Give them voice.

- Respect those that aren't present - as if they were. Don't gossip.

- Actively listen to those who do speak - doing your best to listen to their inputs so that you truly understand them.

It may take some time and, in all likelihood, it will be very tough to do. But no matter who you are, you can change how well the communication works between you and any other person or team. You simply have to make a choice to make it happen - and commit to it.

It's Easier If I Do It Myself!

Have you ever said, "It's easier for me to do it myself, than to get someone else to do it - because they either don't know how to do it or they don't know how to do it right."

I can't tell you how many times I've said, thought, or heard those words over the course of my lifetime. And quite honestly, when you live only for the here and now, it is true. But, unfortunately, in most situations, if you consider what you are really trying to create in the long term, it is rarely the right response.

Sadly, in today's world, most of us live only for the short term - here and now - and forever live frustrated with this attitude.

So, if you want to be a business of one for the rest of your life, always doing everything yourself, then that attitude works just great for you. Just recognize that when you are a business of one, then quite honestly, you aren't a business at all - you are just self-employed (and pretending to run a business) - present company included.

This may surprise you, but when you look over the course of history, every great leader and business owner has built systems that run his business - and his people just run the systems. So, if you want "real long term business success", whether you are an owner or a manager, then the "do it yourself" attitude is not going to get you there. Real business success is about building systems that leverage the work of others - teams of others. And just because you don't actually do the work, doesn't mean that you can't get the consistency that you want.

Now, the truth be told, it's not easy to build systems and / or teach others how to do things (let alone how to do them right), but nothing worth doing is ever easy. There are times when you have to do things yourself - but more times than not, it just feels that way.

Unfortunately, this is not a habit you are going to break overnight. It takes time. The best way to attack the problem is to start small. Find a single task that only you can do right now, figure out how you do it, write it down and hand the responsibility to someone under you. Oh, but wait. There is two more things that you must do to ensure success. And these are the two steps that are most commonly left out.

The first is defining what is unacceptable, acceptable and great results. This means that not only do you have to give them the procedures to work with, but you also have to tell them and show them what the measures of success of that system are - how you are going to judge their performance on the job.

The second thing that is often forgotten is actually training them how to do the job, until there is no doubt in both of your minds that they know both what to do and what the end result should look like.

Then, sit back and enjoy your newly found time off. Right?

Wrong!

You job is now ensuring that the system is followed. You must hold the newly trained employee to produce what is expected. In the early stages, you may need to spend a bit more time with them. But as you gain confidence in their understanding of the process, and they gain understanding of the desired results and your commitment to achieving them, they will perform.

Then and only then, do you get to sit back and relax and enjoy the fruits of your labor . . . and theirs.

That is until you start the whole process over on the next procedure.