Month: 4
Year: 2005
The First Two Years
I attended a networking event in Hartford a couple of months ago. At this event I met a business owner who said: "One of the first things I ask a prospective vendor is how long they've been in business. If it's anything less than two years, I refuse to do business with them." I pressed him for more details. "People in their first two years of business just don't have it together. They promise what they can't deliver. They're impossible to deal with. They don't have their processes down yet. I just won't work with someone who is still trying to cut their teeth. I just can't afford to do business with someone who will probably be gone soon."
It's a sad commentary for new businesses. And unfortunately, the numbers back it up.
Every year, some 1 million people start a business.
By the end of the first year, at least 40% of them will be out of business.
Within 5 years, more than 80% of them 800,000 will fail.
We don't have to look very far to find success stories to balance off this First Two Year idea. Some businesses come right out of the gate and start building their success. What is it that separates these companies from the failures? In the last newsletter I wrote about the Seven Reasons Small Business Fail, and if you were to address each of those issues, you'd be in pretty good shape with your new business. But there was something that I didn't mention last time: Unstoppable Belief.
When a business owner has an Unstoppable Belief, it's the same as having "Unlimited Funding". That belief alone can make everything happen. Often the people around them think that they're crazy for even starting their business, but they do it anyway.
Here are three examples of Unstoppable Belief, two from my hometown, and one you will already know:
Ron Nodine built a small smokehouse in his back yard, a quarter mile down the street from my parent's house in Goshen. Everyone thought he was crazy. That was in the early 1970s. The business has grown and flourished. It now supplies specialty stores around the country.
Bud Wright was a farmer in Goshen. He had this dream that he could turn a great portion of his land into a resort lake (mind you, this was all dry land with a stream running through it). People would drive by and watch him work that bulldozer, clearing land day after day. Today, Woodridge Lake is a thriving, gated community that has beautiful homes, tennis courts, and a luxury clubhouse.
Do you recognize the name Korczak Ziolkowski? He's the sculptor that had the Unstoppable Belief to create the Crazy Horse Memorial. Although not complete, it's well underway, and was his life's work. Since he started working on it in the 1940s, and knew that he wouldn't finish it in his lifetime, do you think that his belief was an important part of his ability to carry out this work? You bet.
In closing, whether you're in your first two years of business, or your second decade, make sure that you've got that Unstoppable Belief in creating the perfect business. I promise that it will serve you well.
Till next time.....
Jerry
PS - I've just changed over my contact lists to a new format. I've tried my best to only send this email to people who have received it in the past. If I've sent you this email in error, please accept my apologies and simply unsubscribe by hitting the button at the bottom of this page.
2003 Jerry Wistrom and All Out Coaching, LLC
All rights reserved.
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Responsibility
One of the common traits of very successful small business owners is that they take responsibility for everything in their business. And I mean EVERYTHING.
When owners do not take responsibility, they see themselves as victims. This victim mentality stops them from moving forward, and actually gives them and excuse to not take appropriate action.
Here are just a few of the excuses I hear as a business coach:
"This town just doesn't support my business."
"My customers don't understand what we're doing here."
"I could do so much better if I could find the right employees."
An unsuccessful business owner identifies an issue, lays blame, holds that blame as a truth, and continues to act as if there is nothing that can be done. That's the easy way out. By blaming others, they don't have to take responsibility themselves.
A successful business owner accepts everything that happens in their business as their own responsibility. Sales are down? They will analyze and refine their marketing effort. Customers don't understand them? The owner sees it as his/her fault for not making it easy, and then rolls out a customer awareness or education program. Employees aren't performing well? The owner sees it as either a hiring or training issue and addresses it.
Just like in business, the same is true in life. The people we think of as heroes have all taken on terrible adversity. So what is the difference between the ones that overcome it and the ones that succumb to it? The ones that have overcome their adversity took responsibility for it, and charted a path to move past their obstacle.
There's a rule in golf that really explains it all. You have to play the ball where it lies. Where you are is where you are. When a lousy golfer hits a terrible shot, they blame the ball manufacturer, the golf course, the golf course designer, the club they used, the foursome on the next hole that made noise during their backswing, the sun, the weather for the past week, their terrible instructor... The list can go on and on. The rest of the folks playing don't want to hear any of this. Play the ball from where it lies, and keep headin' toward the hole. It's really that easy.
The past does not equal the future. Where you've been does not determine where you have to go. Take responsibility for WHERE YOU ARE NOW, and choose your path from here.
Till next time...
Jerry
PS - Jerry's class "Planning and Launching Your Small Business" is being offered through the Windsor Connecticut Adult Education office. To find out more about the class,Click Here.
2004 Jerry Wistrom and All Out Coaching, LLC
All rights reserved.
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"Across corporate America, coaching sessions for many companies have become as routine for executives as budget forecasts and quota meetings." - Investors Business Daily
"OK, You're a Small Business and Personal Coach. What the heck do you DO???" seems to be cropping up a lot in discussions I'm having. And so, I thought I'd take the opportunity in this month's newsletter to try to put that one to rest.
My definition of a Small Business Coach: "A trained professional, hired by a small business owner, to help them enhance their business."
My definition of a Personal Coach: "A trained professional, hired to help someone enhance their personal life."
Let's break down the phrases:
TRAINED There are a number of coaching schools currently operating in the United States. I evaluated 10 of them before choosing COACH U as my training institute. In my curriculum which lasts two to three years, I'll have to complete over 40 courses in subjects ranging from "Empowering How to bring out the Client's best" to "Business Turnarounds How to help the client get back on track".
PROFESSIONAL Webster's Dictionary defines professional as "A calling requiring a specialized knowledge and often long and intensive academic preparation". Coaching is considered to be a profession. Some of the great coaches that I have met are some of the most dedicated and inspiring people I know. Professional also suggests that coaches are paid for their services. Coaches with good practices have incomes that match that of senior business executives.
HIRED BY A SMALL BUSINESS OWNER Most of my clients are owners of their own businesses, or they are commissioned salespeople who, for all intents and purposes, are running their own business.
TO HELP THEM Webster's definition of help "To give assistance or support to". Again, the emphasis here is "assist" and "support". I'm not hired to tell my clients what to do. Far from it. Most of my clients have no desire to be told anything. I'm not an authority figure for them, I'm hired to help my clients to kick-start their business into new dimensions of possibilities, performance and productivity.
ENHANCE Webster's "To RAISE; To add or contribute to".
BUSINESS I don't like Webster's definition here, so I'll use my own: "Generating Sales, Keeping Customers Happy, Staying Motivated, Having a Clear Vision of the Company". How can I define it in one or two sentences? I can't. I'm in the process of writing my first book on business for Small Business Owners. Maybe I'll define it there.... Maybe Not.....
PERSONAL Webster's - "Of, relating to, or affecting a person". In my practice, I help my clients handle all kinds of situations which are affecting their lives. Self esteem issues, motivation, goal setting, and balancing of business and personal lives, all get worked on in the course of my sessions with clients.
Who are my clients?
Well, due to confidentiality agreements, I can't name them, or even give you too many specifics.
Let me give you their qualities: They are ALL very dedicated, hard-working people. They've always been successful in what they've done. Some of them have advanced degrees far beyond mine. They've been in business a while. Some of them longer than me. They are ABSOLUTELY GREAT at their work. That's right. Each and every one of them. If I were to introduce you to them, you'd be amazed at their skill set in each of their areas of expertise.
If they're so good, why would they hire a "business coach"?
Good question. Simple answer is this: They want more, and they want better.
More what? Better what? Ah, that's where they differ.
Some want more profits, more free time, more success, more customers.
Most want their business to be better.
Some want their personal lives to be better.
Some are running a company for the first time and need help transitioning into the world of a business owner.
Some are taking on a new function (new in sales for example) and need some help there.
Some want to be better at handling problems with clients/customers.
Some want to make more money.
Some want to have a better balance between work and home.
So, who should consider using a business coach?
Frankly... everyone in business. I haven't met anyone that I couldn't help enhance their business or their personal life. Here are a couple of examples of people who may benefit from talking to a business coach:
Anyone who just isn't getting the results that they've been striving for.
Anyone starting a new business or changing their role or responsibility in their business.
Anyone who is experiencing the emotions of anger, jealousy, frustration, or disappointment about anything in their business.
Who should NOT use a business coach?
Anyone who doesn't LISTEN to reason.
Anyone who believes they know it all.
Anyone who is constantly looking to blame someone else for their own trouble.
All Out Coaching is really starting to come together. My client list is growing, and so are my products. I formed the company just over a year ago as a part time business. I've been employed full time as a consultant for over 6 years for a small consulting firm here in Connecticut. That's in the process of changing to the other way around. I've had discussions with my employer about transitioning to part time for them to allow more growth for All Out Coaching. It's very exciting. I know many of you would like to help me in this transition. Here's the best way I know that you can help: Send this newsletter on to your friends and acquaintances that may want to have some help in their business. Feel free to tell your friends about who I am and what I'm doing. You'll be doing us both a favor. If they contact me, please know that I will discuss their situation with them in full confidence. I don't charge for initial discussions. If they decide to hire me as their coach, I'll do everything I can to help them. There's a good reason I named the company the way I did. I absolutely go "All Out" for my clients. They will thank you for putting us together, and so will I.
Until next time......
Jerry
2003 Jerry Wistrom and All Out Coaching, LLC
All rights reserved.
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Seven Reasons Businesses Fail
Unfortunately, in this economy we've seen a number of businesses fail. It's a terrible thing. This article may seem simplistic, but there are seven areas that require every business's close attention. These areas need to be a part of the work that the business does on a daily basis. By area, here are some of the key questions that I ask every client. As you ask these questions of yourself, look for areas that you may not have given attention to for a while. It is very possible that the current view of that area may be different from the last time you analyzed it.
1) Money Being vague about any aspect of money coming in or out of your business can be fatal.
Do you know your fixed and variable expenses? Do you know your reserves? Do you have a solid monthly budget? Do you have profit projections for the week? Month? Year? Do you know all of your numbers/ratios? Are you being as profitable as you can be? Are there any areas where you can tighten up your expenses? Are your decisions made with the appropriate financial consideration?
2) Customers If your business does not revolve around your customers it will likely stop revolving at all and cease to exist.
Are your customers at the core of every business decision? Are you providing what they want? What they need? Are you making it easy for them to do business with you? How well do you know them? Do you know why they're doing business with you? Are there ways to enhance the relationship?
3) Marketing Having a detailed strategy about how you will market this business is essential. Also, making sure that you're consistently marketing is key.
How are you marketing your business? How do others in your type of business market themselves? What are the results of your marketing efforts? How do you know that your marketing is effective? What new forms of marketing are worth looking at for your business?
4) The Next Product Businesses that thrive do so by continuing to bring new products and services to their market. Keep selling exactly what you had a year ago may be the downfall of your business.
What will be the next product you bring out in your business? What will be the next type of product? Is there a new service you could bring to the market along with your current offerings? How many future products do you have "in the desk drawer"?
5) Your Own Process Making sure that your business is efficient in every way is essential to keeping the business profitable and customer oriented.
Are your procedures and methods correct? Is it the best possible way you can run your business? Are all of your employees on board with their role in the organization? Is everything handled efficiently?
6) Education/Self Development Business, products, and customers needs change very, very quickly these days. If you're not on top of everything that applies to your business, you're about to be left in the dust.
What are you doing to expand your knowledge of your business and industry? Are you constantly training? Learning? Growing? Do you keep in touch with the "leading edge" of your industry? Can you speak about the future of your business, and how you are working to make it a part of your current work?
7) The Long View Knowing where you're going, and why you're going there is essential to what you do every day. That clear picture of what your business will look like in the future shapes and molds our daily actions. Taking your eye off of that is deadly.
Have you set a picture in your mind of what your business will look like 5 years out? Are you doing everything you can to make that a reality now? Are your daily actions in line with making this business what it needs to be to fulfill your vision of it?
I hope that some of these questions can help to propel you forward in the ongoing creation of your business. Till next time....
Jerry
All Out Coaching LLC
Taking Your Business to the Next Level!
2003 Jerry Wistrom and All Out Coaching, LLC
All rights reserved.
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THE DREADED ANNUAL REVIEW
Here comes 2005! It's great to be a business owner, isn't it? We just close the books on 2004, hand everything over to the accountant and start all over again with a clean slate. Many of the "employees" of the world have a different process to go through at this time of the year - "The dreaded annual review"! Ever work for a big company that did these? I sure did, and some years it wasn't something I looked forward to!
Why do companies do this to their employees? A few reasons: They may want to be very truthful and honest with their employees and make sure that the employee gets very clear feedback about where they are, what they've done well, what they need to work on. Many companies decide how much (if any) raise there will be for the employees. They go through an elaborate process, essentially putting each employee into a category of Poor, Fair, Good or Excellent. Sometimes this is done on a series of skill sets for the position. Based on this assessment and how long they've been in that position - a new salary just appears on the employee's paycheck.
So, as a business owner - Who does YOUR annual review? If the answer is - "No one, thank you very much," I'd like to invite you to change that this year. Why should you do this for yourself? At least once each year, you need to take the long view of what happened in the business, and where you're going to go for the next year. But how do we do this review and take the word "DREADED" out of it? Here are my 7 easy steps to doing just that:
1. Get Comfortable - One past client of mine did this process with "a fine cigar and a bottle of scotch while sitting in front of a roaring fire in the fireplace". Whatever your equivalent is - do it. Get comfy.
2. Grab your set of goals and objectives for the past year - if you have a printed set of goals and objectives for the year, you're done with this step. If not, think back to January of the last year and make up a list of things you would have like to accomplished.
3. Give yourself a rating on each objective - I'm old school, so I do "A" through "F". Yes, it may be difficult - but rate each one as objectively as you can.
4. Now add to the list the things that happened that you didn't plan for - The good as well as the bad. Rate these as well - however you did it in step three.
5. Wipe out the "Dumb Ideas" that were on the plan - This is always a fun step, looking back on some of the things that you thought were important goals or objectives for the year, and now seeing that they really were dumb ideas. (These were probably objectives that got low ratings, so you get to have fun here wiping out the low scores).
6. Write down at least five things that you learned last year - Heck, you just spent another year as a business owner, you must have learned at least five things about yourself, your business, your views of the world. Write 'em down.
7. Create this year's plan - Take the objectives for the prior year that weren't hit but are still important and write them down. That's the base. Now brainstorm/dream/wish list other ideas for objectives for the year. Add in anything that comes from the list of things that you learned last year.
Feel free to use the worksheet I've designed at the bottom of this email. It will give you the format for everything. Just "fill in the blanks."
Now what about that pay raise for you? It will come as you do the process I just described. It may not start next week or month, but follow this process and you'll be quite pleased with the raise you're able to give yourself this year.
Till next time,
Copyright 2004 Jerry Wistrom and All Out Coaching, LLC
All rights reserved. |
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