It's All About Your Business™

What vision do you have for your company? What is your Core Ideology? What are your Core Values? What is your Core Purpose?

When you discover your Core Ideology you will begin to Envision your Future.

Then you will be able to create your Big Hairy Audacious Goal (BHAG).

Here is where you say, “OMG, Larry’s lost it! He’s finally gone around the bend.”

Not quite.

In the October, 1996, Harvard Business Review, James C. Collins and Jerry I. Porras published an article titled Building Your Company’s Vision. You can click on the preceding link to read the full text. (I would reprint it here but I respect their copyright rights.)

If you want to go deeper on the subject, I recommend you read James Collins’ book Good to Great: Why Some Companies Make the Leap… and Others Don’t. It’s a classic and should be in your library.

In today’s business world, we all need more vision in our companies.

Thanks,
Larry

Last week I was talking shop with a fellow business coach (I’ll call him Bill). Bill told me about a sales seminar he did. When he finished the seminar, he asked his attendees what they thought. Their response was “I Don’t Get It.”

Bill couldn’t understand how attendees with the education levels of his attendees couldn’t “Get It.” I explained to Bill that I have had the same experience.

The problem is that they don’t get it because they can’t get it. And the reason they can’t get it is that they have never had any training or experience in sales.

Most people who graduate from college with degrees in management, marketing or business have never been exposed to sales. They don’t get any exposure to sales until they take courses for an MBA, if then.

Without experience or exposure to sales, no one can “get it.” We aren’t born knowing how to sell. Or what it means to sell.

I see this issue with new business owners. As Michael Gerber explains in his book E-Myth Revisited, most new business owners are technicians. They don’t understand that their job is to satisfy a want or need of their customers. They think that all they need to do is explain the features of their product or service and sales will magically follow.

I’m not saying anything negative about college graduates or new business owners. It’s just that we need to change our behavior. We need to face reality and understand that most of the people we meet won’t Get It. They won’t get it because they can’t get it.

Another example. A few years ago I was in a coaching session with Mark. Mark was venting his frustration(s) to me. Mark’s wife, Joan, had asked him about his day. He told Joan about all the networking and other contacts he had made that day. Joan said that was good, but asked Mark when was he going to make any sales. Joan was saying “I Don’t Get It.”

The lesson for all of us in business is to be sure the people we are talking to will understand what we are saying.

When we do a seminar, ask our attendees about their background. And we must change our presentation (often on-the-fly) to match their background.

When we are talking to family or friends, we need to realize they don’t get it, and adjust what we are saying.

When we make contact with a prospect, ask questions to be sure they will hear (and understand) what we are saying. Otherwise we are setting ourselves up to fail. And it will be our fault.

Thanks,
Larry

Pretend for a minute that you own a restaurant. Picture the kind of restaurant you own. It doesn’t matter whether it is a greasy-spoon grill or a 5-star gourmet. The choice is yours.

Since it is your restaurant, you get to choose the dishes you serve. You get to choose the ingredients you use. You get to set the menu.

As a restaurateur, you need customers. You need to sell.

Now THE question for you: “What is the one thing a prospective customer can say to you that will stop you in your tracks?”

The answer: “I’m not hungry.”

If your prospects aren’t hungry, it doesn’t matter what’s on your menu. It doesn’t matter what ingredients you use in the dishes you serve. And it doesn’t matter what kind of restaurant you own.

To know whether your prospects will buy, you must ask them “Are you hungry?”

Once you know they are hungry, your next question is “How hungry are you?” The level of their hunger will tell you how much they want and need what you are selling.

If a prospect is very hungry, they will buy your food for any price regardless of whether they like it or not.

So as you go into 2010, remember to find out if your prospects are hungry. If they aren’t hungry, find out when they will be hungry. If they say they will never be hungry, move on.

And don’t forget to ask yourself, How Hungry Are You?

When you are hungry enough, you will do whatever it takes to grow your business.

Thanks,
Larry

I was watching a special on the History Channel about the Grand Canyon. How the Earth was Made — Grand Canyon

Mountains grow. They grow from volcanism or from plate tectonics.

When the mountains stop growing they begin to die. Wind and water erode them. As they erode they fill up the valleys at their bases.

Where there were once mountains and valleys there becomes a flat plain or plateau.

But the flat plain doesn’t stay a flat plain. Lakes form. The lakes overflow. When the lakes overflow they wash away part of the flat plain.

And the Colorado River does the rest.

The Grand Canyon is still growing.

That is nature. In nature, everything is either growing or dying. I didn’t make these rules. You didn’t make these rules. Nature made these rules.

For mountains, valleys, the Grand Canyon or the Colorado River the time period is millions of years.

For an adult mayfly the time period is (at most) 2 days. Mayflies Invade Minnesota For a microscopic life form the time period may be minutes or seconds.

What is the time period for your business? Is it growing? Or dying?

What did you do last week to grow your business? What are you doing today to grow your business? What are you doing tomorrow to grow your business?

Your business is either growing – or dying.

And the choice is yours.

Thanks,
Larry

…continued from yesterday

You need to know right now how your Cash Flow will look in the future.

Many business owners think Cash Flow means “Do I have enough cash in my bank account to cover my expenses?” They don’t think about the time element of Cash Flow.

In the real world Cash Flow means “Do I have enough cash on hand and coming in to cover my current and foreseeable future expenses?”

Cash Flow in your business means knowing if and when money is coming in. Cash Flow in your business means knowing when and why money is going out.

The Startup/Restart® Business Primer² is all about Cash Flow in the Real World. I’m not writing this as an accounting textbook.

I’m writing what you need to know to manage your Cash Flow. Managing your Cash Flow is critical to your business.

Chapter Two will teach you what you need to know about Managing Cash Flow.

These two posts contained a reprint of Chapter One of the Startup/Restart® Business Primer². I hope they have helped you.

As I mention above, the time element is often overlooked in dealing with Cash Flow. As business owners and managers, we need to be constantly aware of when a cash flow issue will arise.

To help your awareness of when a cash flow issue will arise, I put together a Cash Flow Worksheet. Click here to open it or download it.

It is a simple Excel spreadsheet. And it is one of the tools I discuss in Chapter 4 of the Primer.

You can use it to forecast what — and when — cash flow events will occur in your business.

If you have any questions about the worksheet, please post a comment. That way, everyone can share.

And here are a couple of (unedited) comments from people who have read the book:
“I have read the Cash Flow Primer and looked at the worksheet you recommended. It was all very useful and has me thinking in new ways.”

“I like the simplicity of it. It was straightforward and easy to understand. At least once I felt like the author was mistaking my ignorance for block-headedness. Different things. The examples given were repeated too often and they were not varied enough. Each assumed the small business was dealing primarily with a limited number of large contracts or repeat customers. This is not always the case with my work. … (One sentence redacted for privacy purposes.) We have a lot of one time clients and we need them. But our business ebbs and flows for reasons not discussed in the text so I had to work to make the examples applicable to me. On the other hand, I was able to do so. The examples got me thinking and got me on the right track. I also like the catchphrase quips like ‘don’t be afraid to turn down a job’. Those stuck in my head and changed the way I was thinking as I repeated them. There was at least one place where I thought the wording did not convey the complete intended thought. Or, at least, I had to mull it over to get to the root of it. I am remembering the line ‘I’m not saying not to spend money, I’m saying know where your money is being spent’, or something like that. It did get the point across, but I did not immediately understand WHY. It seems like the ‘why’ could be condensed or turned into a neat little maxim (maybe). But you are forcing me to be picky. It was good and simple. Even the author’s voice showed through in a likeable way. I would read more of the same.”

The list price of the book is $15.99. A few weeks ago, I was talking to some business owners about my books and one of them said “Larry, I can buy (author’s) book for $8.99 on Amazon.”

I said, “Yes you can.
But when you finish reading (author’s) book, will you put it on a shelf or keep it with you for reference?
Will you buy (author’s) book to read for entertainment, or to grow your business?
Do you look on (author’s) book as a book, or as a business tool?”
The Startup/Restart® Business Primer² is a reference source you can keep with you all the time. You can refer to it any time you feel the need – even when you aren’t at your computer.

It is very readable, but it isn’t for entertainment — it is to grow your business.

And it is a business tool — a step-by-step guide written just for business owners and managers like you.

Thanks,
Larry

PS Here are links to the Primer

on Createspace
on Mobipocket
and on Amazon

In the first Startup/Restart® Business Primer you learned three rules about money:
Rule 1. The perception of money is different from the reality of money.

• Feeling you are poor is a perception.
• Having no money is reality.
• Being afraid to talk about money is a perception.
• Not talking about money is reality.
• What you think you are worth is a perception.
• The number on your bank statement is reality.
• What you think your goods or services are worth is a perception.
• The cost of producing your goods or services, and the profit margin needed to keep your company in operation while meeting your goals, is reality.

Rule 2. Price isn’t the problem. The problem is in people and their perceptions of money.

Rule 3. Leave your emotions at the door. This rule applies throughout the selling process — not just when talking about money.

Now I’m going to talk to you about a business issue many people don’t understand. This is an issue that can make or break any business.

I’m going to talk about Cash Flow. In the Real World. This is different from how an accountant talks about it.

Let me explain.

Your accountant may give you a cash flow statement. Or you may have accounting software on your computer that will print out a cash flow statement for you.

And cash flow statements are okay as far as they go. Cash flow statements give you an accurate history of where your money came from and where it went.

But in the real world that is a problem.

Let me give you an example.
Right now in the news media we are hearing about world economic problems in business and government. The economic problems we are hearing about all pertain to cash flow.

They are talking about cash flow the same way as an accountant or your accounting software. They are talking about the history of where our money came from and where it went.

But to manage and grow your business, looking at cash flow from a historical view does you no good. You don’t want or need to know that you were bankrupt (or rich) at some point in the past.

What you just read is part of Chapter One of the Startup/Restart® Business Primer². Here is a picture of it

It is a primer. A simple book, written in simple terms. And it is short. It is only 36 pages in length.

Tomorrow I’ll share more from Chapter One. In the meantime, take a look at the book on Amazon.com, Mobipocket.com or Createspace.com.

Thanks,
Larry

The third reason people buy is that they want leaders. They want leaders they can rely on — leaders who are good listeners, truthful, supportive, empathic, unselfish, fun, and have a positive outlook.

They want to look at you as their leader. They want you to be the person who puts their best interests above your own self-interest.

To help your customers and prospects begin to look at you as their leader, listen carefully to what they are saying.

I know I mentioned listening in the previous post (The Second Reason People Buy), but now I am talking about listening with more than just your ears. I refer to this as “whole body listening.”

As they talk, sit up straight. Lean slightly forward. Look at them, but don’t stare. Give them your full and undivided attention.

There is always a risk your mind may wander. It happens to all of us. To help you keep your mind from wandering, take a few notes as they talk.

When they see you taking notes, they will know you are listening. When they know you are listening, they will trust you. And when they trust you, they will look on you as their leader.

By now you may begin to ask, “What’s in all this for me? All this sounds like it’s all about the customers and prospects. Where do I come in?”

And you are right. Shifting your focus to the real reasons your customers buy is never about you. Just as being a leader is never about the leader.

And there is a risk in this — a risk that you can be brought down. A risk that your attitude could be adversely affected.

This risk is the reason for Chapter 2 of the Startup/Restart® Business Primer, titled “Staying Positive.” Chapter 2 will help you maintain a positive outlook as you go through your business activities.

The Startup/Restart®s Business Primer will improve your ability to get what you want in your life. In your personal life (for example, when applying for a job) you are selling yourself. So the questions to answer are:

• What problem do they have?
• Can you solve the problem they have?
• How does that problem affect them personally?
• How important is it to them to have their problem solved?
• Can they trust you to solve their problem?
• Can they look on you as their leader?

You can use this approach with your family. You can use this approach with your friends. You can use this approach with your employees and your staff.

These four posts contained a reprint of Chapter One of the Startup/Restart® Business Primer. I hope they have helped you.

And here are a couple of (unedited) comments from people who have read the book:
“I thought the book was very simple and easy to read. I thought it was good that he would recap previous chapters to bring the overall idea together. Underlining key words were good starting places to get into the book. What he says about asking the right questions and paying attention is completely true and generally goes unnoticed by salespeople and managers alike.”

“I was at a meeting and remembered what you said about keeping quiet. So I just listened and asked some questions.”

The list price of the book is $15.99. A few weeks ago, I was talking to some business owners about my books and one of them said “Larry, I can buy (author’s) book for $8.99 on Amazon.”

I said, “Yes you can.
But when you finish reading (author’s) book, will you put it on a shelf or keep it with you for reference?
Will you buy (author’s) book to read for entertainment, or to grow your business?
Do you look on (author’s) book as a book, or as a business tool?”

The Startup/Restart® Business Primer is a reference source you can keep with you all the time. You can refer to it any time you feel the need – even when you aren’t at your computer.

It is very readable, but it isn’t for entertainment — it is to grow your business.

And it is a business tool — a step-by-step guide written just for business owners and managers like you.

Thanks,
Larry

PS Here are links to the Primer
on Createspace,
on Mobipocket,
and on Amazon.

The second reason people buy from you is that they trust you. To build trust you need to establish a true relationship with your customers or prospects.

And the best way to establish a true relationship is to listen. Needless to say, if you are listening you are not talking. Be sure you are listening to them and not to yourself.

When you are with a prospect or a customer, it is easy for your mind to begin to wander. Suddenly, they ask you a question, but because your mind is wandering, you aren’t ready for the question.

You panic. And what so often happens, you resort to talking about features and benefits.

To avoid this scenario, stop listening to yourself. Listen to your customers and prospects.

As you do this, you may be surprised to find they will tell you how to sell to them. If you have the solution to their personal and emotional problem, they want to buy from you.

But if your failure to listen convinces them they can’t trust you, you’ll leave them no choice but to buy from someone else.

Tomorrow I’ll share more from Chapter One of the Startup/Restart® Business Primer. In the meantime, take a look at the book on Amazon.com, Mobipocket.com or Createspace.com.

Thanks,
Larry

The first reason people buy from you is because what you are selling solves a problem they have. They want you to solve a problem that affects them personally. The problem they have is one they cannot solve themselves. And the problem they have is one they want to solve, or need to solve.

So to find their real reasons, ask questions.

Ask questions to find out the problems your customers or prospects have. Ask questions to be sure the problem they have is one that affects them personally. Ask questions to be sure the problem they have is one they cannot solve themselves. Ask questions to be sure the problem they have is one they want to solve, or need to solve.

But remember, it is just as important to ask questions to be sure the problem they have is a problem you can solve for them.

Wait. Pause for a second and think about that last point. Too many businesspeople think prospects and customers are raising roadblocks when they say no.

You can have the greatest product or service in the world, but if it doesn’t solve your customer’s problem, they aren’t going to buy.

This chapter focuses on what makes your customers buy. A few seconds ago I mentioned asking questions, and asking questions does not mean asking random questions. You need to ask the right questions in the right way.

Unless your business has exclusivity within a market (a monopoly), your customers and prospects will have more than one choice. They can choose you or one of your competitors.

So as you ask your questions, your questions must focus not just on whether they want or need to solve their problems.

You also need to focus on the degree (the depth) of their wants or needs. How bad do they want what you are selling?

Many customers and prospects want to buy, but they don’t want it enough to remain committed to the purchase.

In this situation, you’ll find yourself faced with deals that fall through despite your best efforts. To avoid these situations read Chapter 3, titled “Don’t Buy Back What You Sold.”

What you just read is part of Chapter One of the Startup/Restart® Business Primer. Here is a picture of it

It is a primer. A simple book, written in simple terms. And it is short. It is only 42 pages in length.

Tomorrow I’ll share more from Chapter One. In the meantime, take a look at the book on Amazon.com, Mobipocket.com or Createspace.com.

Thanks,
Larry

What makes people buy? You can know the answer by thinking about your own buying experiences.

When you are talking to salespeople, they shower you with features and benefits of their product or service. How often do you want to buy from them? Probably not very often.

Do they even ask you any questions as they shower you with their features and benefits? Almost never.

The reason you buy is because what you are buying solves a problem or satisfies a want or need you have. Your problem or want or need is one that affects you personally. It is an issue you cannot solve or satisfy yourself.

If you spend a few minutes thinking about this, you realize that telling isn’t selling.

When you’re with a prospect or a customer and you shower them with features and benefits of your products or services, you are acting like every other salesperson. They have heard it all before. And they will feel about you the same way you feel about salespeople who treat you that way.

If you want your prospects and customers to look on you the same way you look on other salespeople, just keep showering them with features and benefits.

But if you want to increase your closing ratio, if you want to make more money, if you want to be happier — stop telling and start selling.

Thanks,
Larry