Views from The Growth Coach�
December 2006
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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.


Focus on Sales
 


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"?


Networking Tips
 


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!



If you have ideas for future issues or questions on this one, let me know. And, if you think others in your sphere of influence could benefit from this information, click on the "Forward to a friend" link below.

Wishing you success and an enjoyable holiday season,


Dave Ferguson
The Growth Coach

Phone: 847-968-2468
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