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Greetings!
For most of us December is the last month of the
fiscal year. It's also when we really focus on how we
are
going to perform in the coming year. The theme this
month is improving performance.
Some of
you might recognize the
first article. I'm revisiting the topic annually because
it's so important. Remember, as they say in the
Chevrolet ad: "Amateurs work until they get it right;
professionals work until they can't get it wrong!"
My gift to you for the holidays. I hope you
find it helpful.
The Seven Deadly Business Sins
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During my years in the corporate world and as a
coach I?ve found seven practices that can adversely
affect any business. It?s my Top Seven Business Sins
list. These sins are not the mortal sins spoken of in
religious doctrine. They won?t condemn you to an
eternity of torment. They can, however, be fatal.
Fatal to your business, that is. Many business
owners believe that they won?t get punished unless
they get caught. But, if you commit these sins, by
the time you realize you?re being punished it?s much
too late to claim ignorance.
You may recognize some of these sins in others. If
they make you feel uncomfortable, good. Take action
now to correct the problems standing in the way of
your success. In ascending order of importance they
are:
7. Not using your professional team
You?ve got an accountant, a lawyer, a banker, an
insurance agent, and probably a financial planner.
They are a resource that you can choose to use or
ignore. These are knowledgeable professionals whose
expertise is invaluable, if you use it wisely. When I
hired my lawyer, I told him I expected him to keep
me out of trouble, not defend me after I got into
trouble. Make them members of your team. Keep
them informed and get feedback before you make
any major decision or commitment.
6. Lack of Systems and Procedures
If you were in an accident and unconscious for three
days could your business run without you? Do you
have an operations manual? Even if you can be at
your business every day, would you hire a fox to
guard the henhouse? Of course you wouldn?t. You?d
even keep an eye on your trusted dog. So why would
you let a single employee control all your deposits,
write all your checks, or provide pricing to customers
without a second pair of eyes checking the
transactions? As President Reagan said, ?Trust, but
verify.? Put procedures in place to protect your
business.
5. Failing to plan
Some businesses succeed by accident and some
people win the lottery but most who consistently
succeed in business do so because they develop a
good plan and then follow that plan. Sure things
change, but if you don?t know where you want to go
it really doesn?t matter which road you take. Failing
to plan is planning to fail! So, plan the work and then
work the plan.
4. Ignoring your customers
Have you told your customers lately that you love
them? Unless you are the only business in town, your
competition is trying to convince your customers to
become theirs. Research has shown that for the
majority of consumers the intangibles like customer
service, quality and convenience are more important
than price. If your business is like many service
businesses, you probably get 80% of your revenue
from 20% of your customers. Invest 80% of your
attention in your best customers.
3. Doing, not leading
Many people spend too much time working ?in? their
business instead of working ?on? their business.
Leaders determine the goals and the direction of the
company. Managers implement that plan and
employees do the work. You are responsible for
setting the tone, not doing the work. Get the train
moving and then control the speed. Don?t shovel the
coal. Ask yourself, ?What is the highest and best use
of my time?? Focus on the important things in
business and life.
2. Not collecting receivables
I had a client once who said, ?Billing is one
procedure, Payment is another.? He believed in one
but not the other. The majority of businesses that
fail do so for lack of cash flow, not debt burden.
Make sure your customers understand and agree to
the price and terms and then follow up with them
before payment is due to prevent problems.
Recognize and reward prompt payment.
1. Making your business the most important thing
in your life
Okay, I admit that this will probably not result in the
failure of your business. As a coach I have to ask
you to think about it, though. Why are you in
business? What?s the purpose? What?s your goal? If I
asked your friends and family what?s important in
your life, what would they say?
Committing these sins won?t guarantee your failure,
and renouncing them won?t guarantee your success.
But, as a business owner, wouldn?t you prefer to
invest your time and money in something that is more
likely to pay off? Business owners who embrace good
practices are much more likely to achieve their goals,
experience less stress, and enjoy a more rewarding
personal life.
Note: If it seems familiar, it's
because you read this in the "Articles" section of the
website. It bears re-reading.
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Focus on Sales
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In the local Potbelly's Sandwich shop there's a
sign on the wall: The answer to any reasonable
request is ''Yes". What does that really mean?
I did a presentation recently at our national
conference in Jacksonville. I had two very different
service experiences on that trip. I flew down on
United and when I arrived at the Omni Hotel
discovered that one of the pockets on my garment
bag had ripped open in transit and the contents had
fallen out. No big deal, since it was only pajamas, a
polo, and a tee shirt I could wear to work out. Since
it was a rather new bag from LL Bean and
unconditionally guaranteed, I called United to see if
they could recover the clothing.
A half hour
later, after being asked to return to the airport to file
a claim ($80 taxi fares), put on hold twice, and asked
the same questions three times, "a file had been
started on my claim." I kept wondering why I didn't
just hang up, my time is worth a lot more than the
$50 worth of clothes! But, I finished the call and
headed downstairs to a reception.
It was
getting late and the shops in the neighborhood and
hotel were closed. I stopped at the front desk and
asked if they knew of a shop that was open where I
could get a tee shirt so I could work out in the
morning. Kathy, the manager, told me everything was
now closed but asked me if I cared what kind of shirt
it was. I told her I didn't care as long as it was
clean. She immediately called maintenance and asked
if they had a clean tee shirt, one they might have on
hand when they clean the boilers. Apparently they
did and when I arrived at my room after the
reception it was on my bed. I enjoyed my workouts
and highly recommend that you stay at the Omni
when you visit Jacksonville.
What would the
world be like if the answer to every reasonable
request was "Yes"?
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Networking Tips
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Yes, even family parties are an opportunity for
networking. Sometimes those are parties that you
want to attend and sometimes not. But, since it's
family you really don't have a choice, do you?
Try this the next time you're wondering how
such normally reasonable relatives can sometimes
behave so badly: Imagine that you are not related to
them. That's right, pick out another nice family and
pretend that they are the family you are related to
and those people behaving badly are total strangers.
You will be amazed at how quickly the stress of the
occasion evaporates. You may actually enjoy the
party and develop some useful contacts.
It's only a theory, of course. My
relatives have never given me cause to test it!
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