How to work "On" your business, not "In" it, by jason Cohen

How to Work ON Your Business, Not IN it

I am reproducing this blog by Jason Cohen, because it is so good., the original appears here: http://smallbiztrends.com/2009/10/how-to-work-on-business-not-in-it.html

We get so caught up in the daily life of running a business, it’s easy to miss the forest for the trees.

Not that you have a choice! You’re fighting fires, handling a pissed-off customer, rending your face over an emergency bug-fix, the website just went down, and the accountant is coming tomorrow and the books are in shambles.

All normal. But still every month or so it’s nice to take a step back and see whether you’re missing a chance to make a more meaningful change to your business.

Here’s some things you can do:

• View your website/product/service through the eyes of a new potential customer. *Do informal usability testing with a stranger. You’re too close to your own projects!
• Find a decision about your product or your behavior which is really due to ego rather than making life better for your employees or customers, or rather than seeking revenue. *There’s no shame in having a big ego and it’s natural to not want to admit mistakes or change your position on things, but sometimes it’s the right thing for everyone.
• Delegate activities you’re still doing yourself because “no one else can do them as well or as quickly,” but which don’t actually need to be done that well or quickly. *Delegation is hard, but healthy, and necessary if you expect to grow as a company and as a person.
• Do one thing to increase your company’s visibility on Twitter, blogs, Facebook – wherever.
• Identify one person who could really help get your company more exposure, and who might be personally motivated to do so. *Then spend real time trying to contact that person.
• Find one “number” in your business you know the least about (i.e. conversion rates, trial/sales rates, length of a trial, number of people who hit the home page and nothing more). Then spend time trying to learn more.
• Come up with one thing you could do that might increase conversion rates by 1%. Here “conversion” can mean any part of the funnel from home page hit to downloads to CRM opportunities to sales. *Usually conversion rates are in the 0.1% – 5% range, so just a single additional percent can result in a massive boost in revenue.
• Collect 10 pieces of empirical evidence about why your latest customers decided to give you money. *Use that to tune your website, ads, pitches, and marketing material to attract the next customers.
• Collect 10 pieces of empirical evidence about why people didn’t buy even when they were deep in your website or after they trialed your software. *The answer to more revenue lies with the folks who didn’t buy.
• Do one thing to prove to the world that you’re an expert in your field. *People like to buy from experts they trust.
• Identify one mundane, time-consuming tasks that you could outsource. *Even if it means spending money, it means you can spend your time on getting more revenue which will more than pay for the outsourcing.
• Quantify how much completely disposable cash you have in the company’s bank account. *Whether it’s $50 or $50,000, maybe you should brainstorm how to spend it to get more revenue.
• Defer something you’re working on now that really isn’t necessary to be done now. *Take a minute to reset your priorities. What’s really timely?
• Admit one thing you’re doing because of an assumption rather than because of hard evidence. *You have to make assumptions to live in the world, but it’s worth stepping back and challenging even the most basic ones.
• Identify anything you’re doing because of a “plan” rather than because of hard evidence. *There’s no glory in following a business plan. Do the right thing with information at hand today regardless of any “plan.”
• Identify choices that don’t “feel” like the right thing to do. *If it feels wrong, it is. Do what’s right instead of what makes most revenue; in the long run Karma does work in business.
• Change your home page to be more specific in describing how you help your customers. *General phrases and wishy-washy statements don’t excite people or win customers’ hearts.
• Give your customers something wonderful, for free. *A deal on a related product, a free book, even just a thoughtful article of interest to them — give them something for free to show you care and they’ll reward you ten-fold.
• Take one step to become more visible in communities related to your business. *On-line or off-line, how can you be a part of other social networks?
• Further differentiate yourself from competitors rather than just try to “kill” them. *Explaining the niche you unquestionably own is a better path to sales than trying to win every deal on every point.
• Congratulate yourself and your employees on the good aspects of the business. *We’re always battling problems instead of reveling in the good stuff; the good stuff is what makes business fun, and is kinda the whole point.
• Do something to invest in your customers’ experience after the sale. *We’re so caught up in getting new customers we sometimes forget how to keep them thrilled one year later.
• Take on a project that you could complete in under a week, and really ought to, but you’ve procrastinated because it sucks to have to do it.
• Remove 5 blogs from your feed reader because they’re not worth the time, and add 5 blogs that increase your chances of having a successful business.

I hope some of these ideas inspire you to reconsider your priorities and shift your behavior. Don’t let fire-fighting or your personality get in the way of healthy revenue growth!

What other tips do you have? Leave a comment and join the conversation!

* * * * *

About the Author: Jason Cohen is the founder of Smart Bear Software and mentor at Austin-based startup launcher Capital Factory. He blogs at A Smart Bear about startups and marketing with a geeky twist.

Installment 2 of the Top 10 - "Secrets"... revealed

The - absolute - undeniable - must have - rockbottom - can’t do without - believe it or not - Top 10 (and beyond) - Secrets of Sustainable Small Business Growth, in good times or bad

Thank you for tuning into this second installment of "The Secrets"

You might remember that Installment 1 was largely about the deeper purpose of your business and how that connects with your passion. Todays 7 secrets are mostly related to marketing, customer relations and your staff.

Installment 1 can be re-read on my website article archive: click here or on the blog archive here or I can email it to you again. Just click here: roland@newperspectives.com.au

Let me remind you of my pleases......
1)... PLEASE!: Take a few minutes and let "The Secrets" sink in. If you are not sure about any of them, drop me a line or call me or argue with me or shout me a coffee or abuse me or pick my brain, but whatever you do, don't just glance over them and put them aside!
2)... PLEASE!: Do something with each and every one of "The Secrets". This is important stuff... believe me, I know what I am talking about here.

As I foreshaddowed in the first installment, I have "Twittered" about "The Secrets" already... so they must be true and real.

Here they are (numbers should start at 8, but I can't get that work properly):

1. Engage your staff in what you stand for, what you are good at and treat them the way you would personally like to be treated… generous, sharing, involved, accountable, open, clear
2. Remind yourself and your staff regularly, at least once a month, that: The purpose of a business is to find customers and keep them, by giving them what they want, again and again
3. Be truthful in all dealings... give it and expect it… Ask yourself what your your clients' absolute truth is and provide the absolute truth in return.
4. Customers believe that you make them a promise when they buy from you... so... make absolutely sure you know what it is they believe your promise to them to be and deliver that... without fail... afterwards confirm you actually kept that promise with them.
5. Decide if and why something is worth doing… and if it is... then it is always worth experimenting with it for a while and giving it another go if it doesn't work the first time.
6. Make sure everyone knows what you and your business are really good at... YELL it from the rooftops at every opportunity you get, write about it, speak about it, blog about it, Twitter about it, Youtube about it, encourage your customers to rave about it, ensure your website raves about it, and your friends... do not be shy about this....ever!
7. Create and build communities and relationships with people who want what you are really good at, communicate, know your community, share, give value... authentically and generously.

Those were "The Secrets" 8 to 14.... in about a week and a half I will reveal some more.... from Secret 15 we get into the financial stuff and money.... I bet you can't wait!

In the mean time PLEASE...do something with "The Secrets"... and I say again if you want to talk to me or email about them I'd love to hear.... I am sure that we can have some great discussions about this stuff and I am happy to explain to you in more depth what the meaning of "The Secrets" is... but whatever you do: Don't just put it aside for another time... Do Something Different... Do Something NOW...

Hope to hear from you soon.

My contacts:
Roland Hanekroot
New Perspectives Business Coaching
"Take Control of your Business and Your Life"
www.newperspectives.com.au
roland@newperspectives.com.au
twitter: http://www.twitter.com/coachbusiness
LinkedIn: http://www.linkedin.com/in/newperspectives
facebook: http://tinyurl.com/c6mph5

Tom peters... 48 pieces of advice for small business

I came across this from Tom Peters..... wonderful advice and thoughts.... love them... I trust and hope that Tom Peters is pleased with having them republished on my blog....

Tom Peters
22 February 2009
Queenstown New Zealand

The Heart of Business Strategy: 48 Things That Matter

We usually think of business strategy as some sort of aspirational market positioning statement. Doubtless that’s part of it. But I believe that the number one “strategic strength” is excellence in execution and systemic relationships (i.e., with everyone we come in contact with). Hence I offer the following 48 pieces of advice in creating a winning strategic that is inherently sustainable*:

• “Thank you.” Minimum several times a day. Measure it.
• “Thank you” to everyone even peripherally involved in some activity—especially those “deep in the hierarchy.”
• Smile. Work on it.
• Apologize. Even if “they” are “mostly” to blame.
• Jump all over those who play the “blame game.”
• Hire enthusiasm…Low enthusiasm. No hire. Any job.
• Hire optimists. Everywhere. (“Positive outlook on life,” not mindless optimism.)
• Hiring: Would you like to go to lunch with him-her. 100% of jobs.
• Hire for good manners.
• Do not reject “trouble makers”—that is those who are uncomfortable with the status quo.
• Expose all would-be hires to something unexpected-weird. Observe their reaction.
• Overwhelm response to even the smallest screw-ups.
• Become a student of all you will meet with. Big time.
• Hang out with interesting new people. Measure it.
• Lunch with folks in other functions. Measure it.
• Listen. Hear. Become a serious student of listening-hearing.
• Work on everyone’s listening skills. Practice.
• Become a student of information extraction-interviewing.
• Become a student of presentation giving. Formal. Short and spontaneous.
• Incredible care in 1st line supervisor selection.
• World’s best training for 1st line supervisors.
• Construct small leadership opportunities for junior people within days of starting on the job.
• Insane care in all promotion decisions.
• Promote “people people” for all managerial jobs. Finance-logistics-R&D as much as, say, sales.
• Hire-promote for demonstrated curiosity. Check their past commitment to continuous learning.
• Small “d” diversity. Rich mixes for any and all teams.
• Hire women. Roughly 50% women on exec team.
• Exec team “looks like” customer population, actual and desired.
• Focus on creating products for and selling to women.
• Focus on creating products for and selling to boomers-geezers.
• Work on first and last impressions.
• Walls: display tomorrow’s aspirations, not yesterday’s accomplishments.
• Simplify systems. Constantly.
• Insist that almost all material be covered by a 1-page summary. Absolutely no longer.
• Practice decency.
• Add “We are thoughtful in all we do” to corporate values list.
• Number 1 force for customer loyalty, employee satisfaction.
• Make some form of employee growth (for all) a formal part of values set.
• Flowers.
• Celebrate “small wins.” Often. Perhaps a “small win of the day.”
• Manage your calendar religiously: Does it accurately reflect your espoused priorities?
• Use a “calendar friend” who’s not very friendly to help you with this.
• Review your calendar: Work assiduously and mercilessly on your “To don’ts.”—stuff that distracts.
• Bosses, especially near the top: Formally cultivate one advisor whose role is to tell you the truth.
• Commit to Excellence.
• Talk up Excellence.
• Put “Excellence in all we do” in the values set.
• Measure everyone on demonstrated commitment to Excellence

Hard work never made anyone Rich!

Hard work never made anyone rich

Or the lessons I learnt from a fallen tree

By Roland Hanekroot, New Perspectives Business Coaching
I went for a big bushwalk by myself recently. One of the reasons for doing so was because I felt stuck writing this article. While listening to the birds, enjoying being by myself in the bush and giving my brain some space away from my business, I found the missing link that allowed me to become unstuck.

Walking along in the National Park, I stumbled on an enormous fallen tree, blocking the path ahead completely. It was muddy everywhere, but I felt like a rest so I decided to sit down on the tree. As I was eating my apple I noticed that the tree had been down for a long time and it had become a whole ecosystem in itself of lichen and moss and fungi and ants and beetles. The more I looked, the more fascinated and inspired I became about the system of life and abundance in and around the tree.

I moved on again but the only way ahead was to climb across the tree. After spending 15 minutes observing the tree so closely I realised that I had to climb across it with great care and attention so as not to disturb and destroy the beauty of the tree. As I continued my walk I started thinking about the tree, its beauty and the important lesson I had just learnt by taking the time to observe this particular obstacle closely.

Nearly every time I work with my clients at some point we come across the same two obstacles on the road to continued business development: The number of hours in a day and the number of cells in our brains, and as in the case of the beautiful tree across my bush track, the only way forward is to appreciate the beauty of these obstacles and learn to see them not just as obstacles but as the most valuable resources in your business.

Juggling Jane
You may recognise all or part of this scenario: Jane, is the owner of JW Solutions: Business is growing, Jane is happily spending more and more time fulfilling her contracts and extinguishing the ever present number of brush fires. Her customers love JW Solutions and the personal attention they get from Jane… and Jane is pleased with herself for keeping all the balls in the air… she is buzzing.

And things progress apace… until… “Oops”… One of the balls crashes on the floor…”Bugger, I won’t fix this with a bunch of flowers… I suppose you can’t win them all… I just don’t seem to have the time to supervise properly these days… better start doing some of those non-critical things in after hour’s time… Focus on the guys delivering during the day… Haven’t had a holiday for while… ah well cash is a little tight anyway… next year…”

Slaves to the business
And so it goes, For Jane and for you; you work harder, longer hours, weekends…”Business doesn’t stop just because I take a day off!”

But in the back of your head you can feel this little voice that says: “Wasn’t this business supposed to be something that worked for you? Wasn’t it supposed to give you freedom? Instead, have you actually become its little slave?”

“Nonsense” says Jane, “I just don’t work hard enough… after all,
“No-one ever died from hard work… right?””

Right indeed, but no-one ever got rich from hard work either …

No, the most effective way to get rich in a business is not to work harder, but to employ more people producing more products or services. We all know that of course, it is one of the reasons we are in business in the first place. But as you develop your business on this model, you will at some point be confronted by those twin obstacles of time and brain cells and you may, like Jane and like many before you, get stuck.

How you manage to get unstuck and how you interact with those obstacles in the middle of your path determines where your business will get to and if it truly starts to deliver the freedom and personal reward you want from it.

Stop and observe
When you do come across these obstacles in your path, instead of running faster, pushing harder and yelling louder, I would like you to stop for a minute instead. Take a breath and observe the striking beauty of the obstacles, just like I did when I came across the fallen tree.

You see, the missing link I found while being in the quiet space of the bush is this: The reason these same two obstacles appear for you and every small business owner that ever was is that your time and your brain cells are the ONLY truly scarce resources in your business, you simply can never go out and buy some more of them. At the same time, your business can not survive without being constantly fed with your time and your brain. Therefore they are far and away the two most valuable assets of your business and at the same time their scarcity is also what causes them to become obstacles.

The work of the business owner
Scarce resources need to be protected and once you truly start to value your time and your brain cells, you will start to let go. Because with every demand on your time or your brain you will first ask: “Does this actually need to be done by me? Is there anyone else who can do this? Does this need to be done at all?” You will want to use your time and your brain only for the “Work of The Business Owner” instead of the “Work of the Business”.

This is how you will build the beauty of the tree into your business.
I appreciate that this is a big change for you. Most business owners never make this change, and they remain stuck.

Don’t think you have to make this change in one fell swoop though; all I want you to do from here, to set out on the road to becoming a True Business Owner… is to actually get ON the road and take the first little step.

Little Step 1: A good first little step to take to start on this road is to set aside 1 hr a week for “Business Owner Time”, during business hours, at the same time every week, blocked out in your diary.

Don’t worry about how to use this time… just block it out first. At the appointed hour, turn off the phone, turn off the email, turn off the mobile, you might actually leave the office, go to a café, or sit in the park, but do not take any calls, emails or anything else, (except from your spouse of course)

You can do this!

Let me assure you, every business owner can do this and nearly every client I have ever worked with has tried to convince me that there was some special reason why they couldn’t possibly do this… but they could and they did… because it is an absolutely critical first step, and basic to the long term development and viability of your business.

Later you will need more than an hour a week but start with this hour first.

Little step 2: What do you do with this hour? This hour is business development time; It is strategic work; It is the work that no-one besides you, the owner, can do; and it is the best, most powerful use of that most valuable resource in your company…Your time.

To start with, just use the hour to think, sit and think, or walk and think, drink coffee and think, think with a piece of paper and pen or think in the park. Think strategy, think future, think big picture, think plans, think about where you want the business to be in a year, in 5 years…?

From here there is no limit to the projects you could turn your mind to: The coming recession and how to manage around that; Your marketing challenges; Your tendering processes; Innovation; Business Plan; etc

And I want you to treat this hour as absolute holy writ, come hail rain or shine…Tuesday morning from 10 to 11 you are not contactable, by anyone for anything…

Janes little steps
Back to Jane; Jane is actually a client of mine, and JW Solutions is her recruitment business. Jane found the obstacles, the tree in her path and she started with “Little Step 1”. Jane asked her PA for assistance. She explained to her assistant what she needed to do and that on Thursday morning every week, from 9 to 10 she would no longer be available for anyone except her husband or kids, and she asked her PA to help her manage that, and not to allow her to slip anything in her diary or answer any phone calls.

The first three weeks were tough but then Jane started getting into the habit. Things started to change for Jane, it was as if a weight was being lifted off her shoulder, and she started becoming clear about the things that needed doing in her business to move it forward. Now, a year and a half later, she has altered her approach and takes an hour and a half from 9 to 10.30 3 times a week, Monday, Wednesday and Friday, and her business has increased its turnover by 30% in the same time. Jane truly appreciates the unique value and beauty of her time and her brain, and I believe her husband is much happier too.

Further Reading:

• The “E-Myth revisited” and other books in the series, by Michael Gerber
• The “One Minute Manager” series, by Ken Blanchard et al
• “Small Giants”, by Bo Burlingham
• "Secrets of small business owners exposed”, by Dale Beaumont
• “The Elves and the Shoemaker”, by the brothers Grimm

BLUE OCEANS AND CLEAR SWIMMING POOLS

Blue Oceans and Empty Swimming Pools

Or the business lessons I learnt in an Italian "Piscina”

A few years ago I spent 4 months in Italy looking for the answer to the meaning of Life, the Universe and Everything. Sitting on piazza’s, sipping espresso, licking gelato and letting the Universe speak to me without distraction felt like a good idea. (By the way, it was a good idea and She did speak to me, but that is another story!)

One of the many exciting experiences I had while in Italy was going for a swim in a local swimming pool. I had taken up swimming as a serious strategy on the way to everlasting life a few years previous and was keen to continue the regime while waiting for the universe to send Her messages.

Most of us have some knowledge of Italian traffic; we take great delight to relate crazy traffic stories on our return from Rome or Naples. Italian traffic does indeed seem to operate along different rules than traffic in Australia, but the truly crazy traffic of Italy is to be found elsewhere, namely in the local swimming pools on any afternoon of the week. My first introduction to the council swimming pool in Florence was a heart stopping experience.

Bloodbath
There must have been 500 people in the pool, swimming in 500 different directions and all trying to find clear water. My pursuit of life everlasting took a backseat to my pursuit of life right then. I crawled out of the pool 10 minutes later with a bleeding nose, bruises and scratches all over my body, as if I had been in a pub fight.

I realised that I needed to change my approach to keeping my hard-won level of fitness during this summer of Chianti and Pizza. The competition was simply too fierce, there was only so much water to be found and everyone had to battle it out in the bloodbath that is the Florence Piscina

"How to make the Competition irrelevant"

I was reminded of this experience recently when reading a great book called “Blue Ocean Strategy; How to make the competition irrelevant”. In order to continue my swimming and fitness regime I had to find a pool where I could swim my laps, and zone-out without fearing for my life. I did; It turns out that Italians hate early morning exercise, it doesn’t fit with their life style at all, especially in summer, and so even though the pools open at 7.00 am, nobody comes near a swimming pool until about 10.30.

The other buggers
The authors of Blue Ocean Strategy make a similar point about business and competition. Most of us business owners look at our competition and ask: How can we stand out from the crowd, how can we be better, quicker, cheaper than the other buggers? In other words, we go to battle with our competition for the same dollar, the same customer. But what might we see if we step outside that battle for a minute? What might we see about the market and our business in it? What other opportunities are there? And how can we access those opportunities? What can we do to find clear water in the pool, so we can focus on doing what we do best instead of spending all that energy trying to beat the competition?

It is tempting to engage with the battle right in front of us and become absorbed by it. But is it really the best place to direct our energy? Maybe we can find a different field to play in all by ourselves?

My own example
Let me give you a business example from my own experience. I normally refer to myself as a “Business Coach”. There is no accepted definition of what business coaching actually is, but there is a successful franchise company that also describes its services as “Business Coaching”. Because I also refer to myself as a business coach, I am by default in competition with this company and swim in the same pool with them even though my approach and services are very different from theirs.

For a while I was tempted to compete head-on with this crowd, to develop marketing materials and products, services and packages that were better, cheaper, quicker, faster than theirs. In other words I felt compelled to try to compete with them for space in the same swimming pool.
At some point I realised the stupidity of this strategy. To do so I would have to change my personal values, my philosophy and my approach to my clients. That is not a tenable proposition obviously, and it became clear to me that what I had to do instead, was to find my own swimming pool. Being able to settle into my favorite stroke without concerning myself what stroke everybody else was swimming and if I was about to be run over. It took me some time, but I have found that pool and I am so much happier for it.

Find your own pool
So this is your mission, should you choose to accept it: Go out and find your empty swimming pool, where you can swim powerfully on your own, being able to focus on your own stroke as opposed to everybody else’s.

To find this empty swimming pool you need to ask yourself a few simple questions:
1) Who are the potential customers of my services?
2) Which group(s) of potential customers don't buy (or virtually don’t) from my company or from my competitors?
3) What are all the factors that we and all our competitors already compete on with each other?
4) On which factors are none of us competing?

3 Case studies:

1) Financial planning for Gen Y:
A Financial Planning company I worked with some years ago went through a strategy planning process with me in which we asked questions like those above. The process turned up that all financial planners were trying to out-compete each other on the same factors and all aimed at the same clients.

The owner of the company saw a trend in society that indicated that young generation Y’ers were holding off buying their first bit of real estate and electing to continue to pay rent in the trendy inner city areas of Sydney. He suspected that when Gen Y’ers turn 35 they too start to think about having families and homes in the suburbs and that they would need a substantial nest egg to put down as a deposit. The other thing he noticed was that Gen Y’ers as a rule want nothing to do with financial planners, and vice versa.

He put these observations together and developed a really funky and smart offering aimed at helping Gen Y’ers prepare for the day that they do want to buy a home to raise their family in. Initially the fees they earned from these services were minimal but over time it has become a golden business, and essentially without competition. My client swims in his own pool and practices his own stroke.

2) Smart video productions:
Another client of mine produces video productions. To create his own swimming pool he has found a way to produce a professionally edited and cut 3 camera coverage of an event for the price of single camera operator. The difference this makes in quality is enormous. He is now swimming in a pool all by himself. For particular types of events (awards nights, school events, weddings etc) and a particular type of client, his competition is irrelevant.

3) Renovating Sydney’s terrace houses:
Finally I have another example from my own days as a builder in the crowded Sydney renovations market. We came to a realisation that 80% of Terrace houses fit in one of 5 design templates. At the same time most terrace house owners want to open up the back of the house to the light, bring the bathroom into the middle of the house and update the kitchen etc. Putting these two realisations together meant that we were able to offer a standardised design-and-construct service that nobody else was able to match. Very soon clients were knocking down the door and we stopped worrying about the competition.

Do your thing
If you would like to create your own swimming pool, your own golf course or your own private trout stream for your business, why don’t you come and have a chat with me. I can assure you there is nothing more fun and rewarding in business than swimming in your own pool.

The book I referred to is:
"Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne

The world’s greatest business development tools revealed

Or Metrics that matter

Article by Roland Hanekroot of New Perspectives Business Coaching www.newperspectives.com.au

Amazon stocks some 11,000 titles in the category “Small Business Management”, and although I can’t profess to have read them all, I am reasonably sure that very few will give you this simple bit of advice:

Experimentation and measurement are the most powerful business management tools any business owner can ever employ.

Did your ever hear your dad/ grand father/ uncle utter these words:

“If a job’s worth doing it is worth doing it well…”

Mine did, but now I disagree (respectfully of course). Instead I make this statement:

"If a job is worth doing it is worth messing around with!”

Too often we feel stifled by the feeling that this or that problem is worth tackling if only we knew what THE answer was. We are afraid we won’t get it right, that it won’t work, we’ll fail….

And of course we don’t know THE answer…………..

Good news and bad news:

• The Bad news: …………..There is no answer!
• The Good news: ……..….There are lots of answers!
  

There are as many answers as there are businesses and business owners.

This is not to say that there aren’t a number of basic principles that apply to all businesses. There are important common principles of marketing or finance for example, but how those principles apply to you in your business is entirely dependent on the unique combination that is you and your business.

Somewhere in those 11000 books on Amazon you might find the answer to your particular problem appropriate for you and your business, although that is by no means guaranteed. Besides, if you have time to read even 1% of that library you don’t need to read the rest of this article, your business is already running the way it should.

A much more useful approach is to look at the issue, pull it apart into as many component parts as possible and ask yourself: I wonder what I could try next? That is experimentation. Look at an issue and say hmmm…I wonder….. Big change can come from little experiments, and if the experiment doesn’t work out…try something different.

The “But”
There is always a “But” and this article is no different, sorry to disillusion you. The “but” is this: Experimentation must be based on measurement, without relevant measurement, experimentation falls flat on its face, is frustrating for everyone and costs lost of money.

You can’t manage what you don’t measure.

It is the continual cycle of measurement, experimentation, more measurement and more experimentation that will have the greatest impact on the sustainable growth of your business.

Case in point
I am going to take you through a real world example that will demonstrate what I mean. The example comes from a client of mine who is an electrician. I have tried to reduce the story down to the bare essentials, and obviously it demonstrates a principle only. How you translate this principle into something that works for you and your business I can’t say from here. My hope is that you will let it stew in your brain for a bit and ask yourself: “I wonder how I can experiment with that principle in my business?”

My client has a number of vans on the road, with a tradesman and apprentice in each van. One of his burning issues was the amount of (un-chargeable) time that his teams spent running to the local suppliers each week to pick up bits and pieces they needed for each job. The vans normally carried some stock (mostly stuff left over from previous jobs) but an enormous amount of time each week was lost because the vans were on the road, shopping. Over the years he had experimented with different ideas, but the issue persisted and he really didn’t know how to make headway with it.

This is what we started working on:
First we set up a way to measure how much time each team spent travelling to buy the bits and pieces, day by day and team by team.

We learnt two things:

• On average he lost about 11 billable hours per week for all teams combined to “shopping time”
• One of the teams spent significantly less time shopping than the other three.
  

Armed with that information we decided to find out what was different for this team.


We found two differences:

• Their van was tidier than the other vans,
• They kept rough diary notes about some of the items they were running low on.
  

Clearly here was the beginning of a solution worth experimenting with.


We also decided to measure 2 other things:

• First we measured what the top 100 most common items were that were used on jobs.
• Second we worked out that 85% of jobs would require nothing else than those top 100 items.

This gave us some solid base lines to work from.

Stock lists
Putting together all this information we decided to make the top 100 items the standard inventory of each van. At the completion of each job, the team notes on a standard stock list how many of each item they used on that job. When they next pass one of the regular suppliers, they replace everything on the inventory list in the exact same quantity that they have used (and noted on the list) since the last time they went to a shop. And then they start a new list.

Now he is measuring again.

The initial impact is significant; he has reduced the non-chargeable shopping time by 50% across the board. There is further work to do; the goal is to have no more un-chargeable shopping time at all, by the end of the current financial year.

Linda Evangelista
For now my client is able to take on an average of 3 extra jobs per week with the same resources. That equates to approximately $25,000 extra profit per year.

Apparently even Linda Evangelista would get out of bed for that!

One of the benefits of working with a business coach is that you will be encouraged time and again to ask yourself that question: “I wonder what would happen if……”

Further reading:

• “The E-Myth series” by Michael Gerber
• “Re-Imagine” by Tom Peters
• “The Solutions Focus” By Paul Jackson and Mark McKergow
• “Solutions Focus Working” by Mark McKergow and Jenny Clarke
• “The One Minute Manager series” by Ken Blanchard et al

Business Owners and Schizophrenia

The case for Multiple Personality

Disorder in business

Or how to be the Business Owner

By Roland Hanekroot, New Perspectives Business Coaching http://www.newperspectives.com.au/

Every business owner I have ever worked with has at some stage been stumped by a variation of the chicken or egg dilemma:

What comes first?

• I would like to spend more time developing my business, but I don’t know if I can afford to lose the time.
• I would like to employ extra staff, but I don’t know if I can afford the time to train them.
• I would like to spend more time generating leads and business, but if I am successful at that I don’t know if I will be able to handle the extra work.
• I would like to employ extra staff, but I don’t know if my cash flow will be able to handle it.
• I would like to develop my business processes and systems to be able to handle a lot more work, but maybe I should get that extra work first.
• I would like to employ extra staff, but I don’t know if I will still have enough work for them in 3 months.
• Etc.

So what really comes first?
First comes a realisation. It is the realisation that owning a business involves a particular type of schizophrenia or multiple personality disorder; you have to be three different people at once,

Michael Gerber in his E-Myth books refers to them as:

1. The Technician (Who does the technical work, be it that of a carpenter, a salesperson or a lawyer)
2. The manager (Who does the day to day management of the business: admin, finance, sales, managing people and processes etc)
3. The Entrepreneur, or the business owner (Who does the business building work)

Suffering from schizophrenia is something you would not wish on your worst enemy and what is more, if you are intent on owning a business there is no cure.
You are simply going to have to accept the fact that all three personalities demand their time and space, equally.

Most business owners (including myself) know how and when to be the technician, how to do the technical work (the work of the business), that is how we got started, and who we have always been. Most of us also know something about being the manager and with a greater or lesser degree of efficiency we carry out the work of the manager, maybe a bit later than we’d like, or just pushing the deadlines. Often we feel this manager person gnawing at the back of our minds when we are being the technician on a daily basis, but generally we give him or her the required time and space, otherwise our businesses would have gone down the toilet ages ago.

The entrepreneur

Not many of us know how and when to be that third person though. We really just put her in the too hard basket most of the time. We can feel her fighting to get out of that basket sometimes, but there just is no time this week; that quote must be finished first and project “X” has fallen behind, and we are already a week late with our BAS return etc. So we keep the entrepreneur in her basket, put the lid on the basket, and sit on it for good measure. Maybe we let her out at night sometimes, or on a weekend every now and then, but certainly not during business hours when we have to make money and do the stuff we do, and do it and do it and do it….

Yet, the contradiction is that the most important work that you and only you as the business owner can ever do is the business building work.

The work of the business owner is not the work of the business. The work of the business owner is not the technical work, it is not the administration, and nor is it the sales or any of the other things that the business needs to carry out on a day to day basis.

The work of the business owner is the creative work of developing the business; it is imagining what you want the business to look like in 6 months, a year, 5 years. It is thinking time, it is planning; it is looking into the future and deciding how it will look. It is developing the strategies, the processes, the systems to make your vision a reality. It is creating the methods to measure the effectiveness of your systems and processes, it is learning and innovating, and deciding what the key indicators for the health of your business are, and where to get them when you need them.

This is the work that you and you alone are accountable and responsible for. Only by doing the Business Building work consistently as a matter of priority, will you be able to build your business into the thing you set out to create when you started it.

The challenge

So here is my challenge to you: As a first little step, beginning modestly, starting this week, with the new financial year coming up soon. How would it be to block out 2 hours a week from your diary, every week? Set in stone, come hell or high water, you are no longer available for clients, suppliers, meetings, employees, administration, phone calls, emails, or anything else. This will be your business building time, your thinking time, and your creative time.

You might find it confronting and feel guilty at first to block a slab of time out of your diary for this work, and on a workday as well! What if a client has an urgent issue for example? Well, I would like you to look at it this way; if your clients want to talk to you urgently at 3.00 am on the Sunday morning of your daughters first birthday, while on a skiing holiday with your family, would you take the call and have a meeting with them at that time? (If you answered “yes” you have greater issues than I can deal with in this article).

Build a bridge

So as my girlfriend says: Build a bridge…. (And get over it)…. simple as that. This weekly business building time is right up there with sleeping and holidays and your family. If you are not building your business, you are not building anything. To quote Michael Gerber again: “You have created a job for yourself with a fool for a boss”.

When you do start to step into the personality of the Business Owner you will find that this is one of the rare occasions when suffering from Schizophrenia is highly rewarding, and you will start to find the solutions to those typical business owners’ dilemmas.

One of the benefits of engaging a business coach is that the realities of being a business owner will become inescapable and the coach will help you integrate this personality and the work that belongs to him into your business life.

Further reading:

• “The E-Myth” series (E-Myth Revisited, E-Myth Mastery, E-Myth contractor, E-Myth manager, E-Myth physician) by Michael Gerber
• “Maverick” by Ricardo Semmler
• “It is not the big that eat the small, but the fast that eat the slow” by Jason Jennings and Laurence Haughton
• “The effective executive” by Peter Drucker