“It is change, continuing change, inevitable change, that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be. This, in turn, means that our statesmen, our businessmen, our every man must take on a science fictional way of thinking.” ~Isaac Asimov
As we move into a New Year, it is so important to take some time and think of what you can do to run your business better in this year as compared to last year. Maintaining the status quo is just not acceptable and setting reasonable goals for year 2011 are so, so important.
Obviously, in 2011, the economy is going to continue to improve and really hit its stride in the last quarter of the year or the beginning of 2012. With that, we should see a pick-up of both inflation and interest rates. Additionally, unemployment will continue to be a significant problem as the economy can only absorb so many jobs every month and it is going to take over 3 years to get this unemployment rate down.
Given those environmental factors, here are some goals or resolutions for you to consider and adopt for your business. First, a very important goal for this year has got to be increasing both gross profit margins and net profit margins. If your net profit margin last was 5% then set a reasonable goal this year of hitting 7%. You can easily reach a higher net profit margin my reducing costs by just 2% which is pretty easy to do. The net profit margin (NPM) is so influenced by the gross profit margin (GPM). In a like manner, if your gross profit margin has been 38% then shoot to increase this to 40%. The way you hit these higher margins is making sure that with every decision you make, you consider the impact of profitability. Over the last couple of years with our economy, most businesses just tried to survive but now you must focus hard on profits and profit improvement.
Another goal is to fire yourself on January 1st and evaluate what new skills and knowledge that you must have for 2011. Most entrepreneurs are constantly evaluating their staff and business but just do not take time to evaluate themselves as the leader. If you should feel that you are weak in finance, then take some courses and read some books in this area. However, the real point here is that you must take time at the beginning of this year and assess how effective you are. Sometimes the best way to do this is to hire an outside consultant to come in and do a formal evaluation of your skills. No one should ever think that they are good as they can be as this normally generates an attitude of complacency.
The final critical resolution and goal is to map out some personal goals for yourself apart from your business. For example it is so important that you take time to make sure that you are physically fit. Time spent on this allows you to be so much more effective in leading your business. Additionally, figure out what additional things that you need to do support your family with your time.
Now go out and set some goals to deal with increasing your profit margins, ascertain the additional training that you need and develop some personal goals for you and your family.
You can do this!!
Sunday, January 2, 2011
Sunday, December 19, 2010
Friends as Employees
“Who ceases to be a friend never was one.” ~Greek Proverb
Every entrepreneur wants to get the best help he or she can. However, hiring friends or befriending employees is a recipe for disaster and should be avoided if possible. Do not mistake being “friendly” and being “friends” as one in the same. You want to be friendly with your staff, but you do not want to be friends with them. There is a vast difference between the two.
Five years ago, a wonderful entrepreneur hired an office manager. This employee’s birthday happened to fall three days after she was hired, and she mentioned to her employer that her parents never really gave her much of a birthday. Hearing this, the entrepreneur went out and bought balloons, flowers and a very nice gift, and even took her out to a very nice lunch. This became a tradition that continued year after year.
The entrepreneur treated this employee as a member of the family and frequently asked her to come along on family get-togethers. Additionally, the entrepreneur kept giving this employee raises as she just could not say no to her friend. Consequently, the employee was being grossly overpaid for the work she was doing.
Over time, as the line between “employee” and “friend” became increasingly blurred, the entrepreneur began to see issues with the employee’s performance. She frequently found work that the employee had not done, but she never brought it up because she feared hurting the employee’s feelings.
The obvious solution was to let this employee go – these issues were more than sufficient to justify termination of a normal employee. But this entrepreneur had not treated this worker as a normal employee. She was a friend, and the entrepreneur was reluctant to take any action knowing the friendship would be lost.
In addition, the employee and entrepreneur shared a strong bond reinforced daily by their close working relationship. Their desks were adjacent to one another, and the entrepreneur just could not see herself running the business without this employee. She felt she was invaluable to the firm.
If not for the economic downturn, this cozy relationship would have continued indefinitely. However, as cash became tight, the entrepreneur was forced to look at all possibilities for cutting costs. As it turned out, the only element she could really control was this employee’s salary.
This was a very difficult decision for this entrepreneur, and I spent a lot of time working with her. Once I was able to articulate that all of the problems they were experiencing with the business revolved around this one employee, the entrepreneur understood what was necessary.
Did I say anything that the entrepreneur had not already considered? No. All I did was reinforce what she knew to be true. That is why advice from an outside consultant is so useful.
The entrepreneur is now in the process now of finding a replacement at a much lower salary. She has promised me that she will not make the same mistake again by befriending the new employee.
Now go out and see if a friendship you have with an employee is negatively affecting your company’s morale or the employee’s performance. If it is, you must either step back into a more professional relationship or consider letting this employee go. This will not be easy, but these issues must be addressed for the well being of your business.
You can do this!
Every entrepreneur wants to get the best help he or she can. However, hiring friends or befriending employees is a recipe for disaster and should be avoided if possible. Do not mistake being “friendly” and being “friends” as one in the same. You want to be friendly with your staff, but you do not want to be friends with them. There is a vast difference between the two.
Five years ago, a wonderful entrepreneur hired an office manager. This employee’s birthday happened to fall three days after she was hired, and she mentioned to her employer that her parents never really gave her much of a birthday. Hearing this, the entrepreneur went out and bought balloons, flowers and a very nice gift, and even took her out to a very nice lunch. This became a tradition that continued year after year.
The entrepreneur treated this employee as a member of the family and frequently asked her to come along on family get-togethers. Additionally, the entrepreneur kept giving this employee raises as she just could not say no to her friend. Consequently, the employee was being grossly overpaid for the work she was doing.
Over time, as the line between “employee” and “friend” became increasingly blurred, the entrepreneur began to see issues with the employee’s performance. She frequently found work that the employee had not done, but she never brought it up because she feared hurting the employee’s feelings.
The obvious solution was to let this employee go – these issues were more than sufficient to justify termination of a normal employee. But this entrepreneur had not treated this worker as a normal employee. She was a friend, and the entrepreneur was reluctant to take any action knowing the friendship would be lost.
In addition, the employee and entrepreneur shared a strong bond reinforced daily by their close working relationship. Their desks were adjacent to one another, and the entrepreneur just could not see herself running the business without this employee. She felt she was invaluable to the firm.
If not for the economic downturn, this cozy relationship would have continued indefinitely. However, as cash became tight, the entrepreneur was forced to look at all possibilities for cutting costs. As it turned out, the only element she could really control was this employee’s salary.
This was a very difficult decision for this entrepreneur, and I spent a lot of time working with her. Once I was able to articulate that all of the problems they were experiencing with the business revolved around this one employee, the entrepreneur understood what was necessary.
Did I say anything that the entrepreneur had not already considered? No. All I did was reinforce what she knew to be true. That is why advice from an outside consultant is so useful.
The entrepreneur is now in the process now of finding a replacement at a much lower salary. She has promised me that she will not make the same mistake again by befriending the new employee.
Now go out and see if a friendship you have with an employee is negatively affecting your company’s morale or the employee’s performance. If it is, you must either step back into a more professional relationship or consider letting this employee go. This will not be easy, but these issues must be addressed for the well being of your business.
You can do this!
Sunday, December 12, 2010
Employee Input Or In The Catfish Line
“It takes a great man to be a good listener.” ~ Calvin Coolidge
There is no question in my mind that listening to your employees is almost as important as listening to your customers. Time and again, I see entrepreneurs underestimate the value of their employees’ opinions. Many times, entrepreneurs think they are the only ones who know how to improve their business, and it never even occurs to them to ask their staff how they might make it better.
Ignoring your staff is equivalent to a physician ignoring a patient’s concerns. In both cases, valuable information is lost and major damage can be done.
There is a neat company called King Arthur’s Tools. The company is run by Arthur and Pamela Aveling, who in the interests of fair disclosure, are also my good friends and clients of the Jim Moran Institute for more than 12 years.
King Arthur’s sells woodworking tools to both distributors and hobbyists. They either buy or manufacture to their specifications the various components of these tools. When an order is received, a packing slip is generated and sent to the warehouse, where most of the packing is handled by Warehouse Manager Henry Williams. A very loyal and hardworking employee, Henry has been with King Arthur’s for more than three years.
At one of King Arthur’s retreats, the staff was working on the company’s core values. After much discussion, Arthur asked Henry if he could think of anything that could improve his operation. Without hesitation, Henry said that he would like to have cards made identifying him as the one who packed the goods. He thought doing so would reduce the rate of error.
Everyone agreed that this would be a neat idea, and Henry and the staff got to work making the cards the very next day. They came up with three versions. Each version had a different message on it, but all of them included Henry’s picture and the phrase, “Packed with care by Henry.” The three alternate messages were as follows:
1. It was my pleasure assembling your order, and I hope you enjoy using your King Arthur’s tools on your project.
2. Your order was packed with care by Henry. Thank you.
3. King Arthur’s Tools loves to see what customers make with their tools. Post your photos on Facebook.
The response to these cards has been overwhelming. So many customers have commented on how much they liked them and what a neat concept it was. Many customers even called to thank Henry personally for their order.
The cost of implementing this idea was minimal, but the value was considerable. It improved the company’s relationship with their customers and made Henry feel good about what he is doing. It all came about because Arthur and Pamela Aveling were willing to listen to their staff.
Now go out and make sure that you are listening to both your customers and your employees. The best way to get input from your employees is simply to ask for it. Ask your staff if there is anything they think the company can do better. Even if some do not have something to contribute, they’ll know you welcome their input, which is invaluable.
You can do this!
There is no question in my mind that listening to your employees is almost as important as listening to your customers. Time and again, I see entrepreneurs underestimate the value of their employees’ opinions. Many times, entrepreneurs think they are the only ones who know how to improve their business, and it never even occurs to them to ask their staff how they might make it better.
Ignoring your staff is equivalent to a physician ignoring a patient’s concerns. In both cases, valuable information is lost and major damage can be done.
There is a neat company called King Arthur’s Tools. The company is run by Arthur and Pamela Aveling, who in the interests of fair disclosure, are also my good friends and clients of the Jim Moran Institute for more than 12 years.
King Arthur’s sells woodworking tools to both distributors and hobbyists. They either buy or manufacture to their specifications the various components of these tools. When an order is received, a packing slip is generated and sent to the warehouse, where most of the packing is handled by Warehouse Manager Henry Williams. A very loyal and hardworking employee, Henry has been with King Arthur’s for more than three years.
At one of King Arthur’s retreats, the staff was working on the company’s core values. After much discussion, Arthur asked Henry if he could think of anything that could improve his operation. Without hesitation, Henry said that he would like to have cards made identifying him as the one who packed the goods. He thought doing so would reduce the rate of error.
Everyone agreed that this would be a neat idea, and Henry and the staff got to work making the cards the very next day. They came up with three versions. Each version had a different message on it, but all of them included Henry’s picture and the phrase, “Packed with care by Henry.” The three alternate messages were as follows:
1. It was my pleasure assembling your order, and I hope you enjoy using your King Arthur’s tools on your project.
2. Your order was packed with care by Henry. Thank you.
3. King Arthur’s Tools loves to see what customers make with their tools. Post your photos on Facebook.
The response to these cards has been overwhelming. So many customers have commented on how much they liked them and what a neat concept it was. Many customers even called to thank Henry personally for their order.
The cost of implementing this idea was minimal, but the value was considerable. It improved the company’s relationship with their customers and made Henry feel good about what he is doing. It all came about because Arthur and Pamela Aveling were willing to listen to their staff.
Now go out and make sure that you are listening to both your customers and your employees. The best way to get input from your employees is simply to ask for it. Ask your staff if there is anything they think the company can do better. Even if some do not have something to contribute, they’ll know you welcome their input, which is invaluable.
You can do this!
Sunday, December 5, 2010
In the catfish line.
I
"Trust is the lubrication that makes it possible for organizations to work." ~Warren Bennis
Business is about relationships. These relationships can be with employees, customers or potential customers, and a host of others. Most people would rather deal with someone they know and trust than with a stranger. Just like the old cliché says, it is not what you know, but who you know that determines success.
So many times I have seen struggling entrepreneurs happen to mention their business problems to an acquaintance, who gets them connected with large potential customers. All this comes about because of a relationship between two people.
For this and so many other reasons, relationships are vital to each and every business, and you just never know when or where a relationship will be formed. You must constantly be on the lookout for opportunities to make connections.
About a year ago, I attended the Broward Urban League Gala as my new job with JMI has me helping minority entrepreneurs at Broward College. At the gala, they had multiple serving lines, one of which was for fresh fried catfish.
While standing in the catfish line, I started talking with the very nice couple ahead of me. The man’s name was Ed Key, and he was employed as an administrator at Broward College. We hit it off, so I suggested that we have lunch in a couple of days.
During this lunch, I mentioned that we were coaching minority entrepreneurs and organizing a minority business conference. Without me asking, Ed put me in contact with Norm Seavers, the head of their Entrepreneurship Institute. When I met with Norm, he stepped in and agreed to allow us to hold our minority business conference at their venue and to provide so much other assistance that we needed.
I began mentoring Ed, meeting with him every month during my visits to South Florida. During one of our meetings, he brought a friend of his, Marcell Haywood, with him. Marcell is a very successful entrepreneur, the owner of a company called Dirt Pros EVS. Starting only five years ago with a $300 investment, he has grown this business to over $5 million in sales.
I was so impressed with Marcell. Though he holds a master’s degree, he does not have a formal education in business, yet he has been so successful. During lunch, I asked Marcell if he would be the keynote speaker at our conference, and he agreed.
Our conference was a great success, and Marcell’s talk was the hit of the day. This outcome can be attributed, in large part, to a conversation I had with a stranger in the fried catfish line.
Now go out and work on improving as many relationships as you can. You never know how they will pay off.
You can do this.
"Trust is the lubrication that makes it possible for organizations to work." ~Warren Bennis
Business is about relationships. These relationships can be with employees, customers or potential customers, and a host of others. Most people would rather deal with someone they know and trust than with a stranger. Just like the old cliché says, it is not what you know, but who you know that determines success.
So many times I have seen struggling entrepreneurs happen to mention their business problems to an acquaintance, who gets them connected with large potential customers. All this comes about because of a relationship between two people.
For this and so many other reasons, relationships are vital to each and every business, and you just never know when or where a relationship will be formed. You must constantly be on the lookout for opportunities to make connections.
About a year ago, I attended the Broward Urban League Gala as my new job with JMI has me helping minority entrepreneurs at Broward College. At the gala, they had multiple serving lines, one of which was for fresh fried catfish.
While standing in the catfish line, I started talking with the very nice couple ahead of me. The man’s name was Ed Key, and he was employed as an administrator at Broward College. We hit it off, so I suggested that we have lunch in a couple of days.
During this lunch, I mentioned that we were coaching minority entrepreneurs and organizing a minority business conference. Without me asking, Ed put me in contact with Norm Seavers, the head of their Entrepreneurship Institute. When I met with Norm, he stepped in and agreed to allow us to hold our minority business conference at their venue and to provide so much other assistance that we needed.
I began mentoring Ed, meeting with him every month during my visits to South Florida. During one of our meetings, he brought a friend of his, Marcell Haywood, with him. Marcell is a very successful entrepreneur, the owner of a company called Dirt Pros EVS. Starting only five years ago with a $300 investment, he has grown this business to over $5 million in sales.
I was so impressed with Marcell. Though he holds a master’s degree, he does not have a formal education in business, yet he has been so successful. During lunch, I asked Marcell if he would be the keynote speaker at our conference, and he agreed.
Our conference was a great success, and Marcell’s talk was the hit of the day. This outcome can be attributed, in large part, to a conversation I had with a stranger in the fried catfish line.
Now go out and work on improving as many relationships as you can. You never know how they will pay off.
You can do this.
Sunday, November 28, 2010
Tips to be a great manager
"Motivation is everything. You can do the work of two people, but you can't be two people. Instead, you have to inspire the next guy down the line and get him to inspire his people." -Lee Iacocca
All of us want to be the best managers we can be. After all, our employees are our company. The more we can motivate our staff to feel good about what they do, the better our organizations will operate. Managing employees takes work and a commitment to help them succeed!
One great thing you can do is to find out what each employee’s goals are and then help them achieve those goals. Finding out what each person really wants out of life does two things. First, it tells the employee that you really care enough about them to ask. Sometimes staff just will not know their goals, which is okay, but just asking translates to caring. Second, once you know what their goals are, you can help them achieve them. It is so surprising to me how many managers just have no idea of what the career goals are of their staff. It is so important to think of yourself as a coach. Like an athletic coach, your job is guide the team members to be the best they can be.
Another thing, you really want to become a full time mentor with each of your employees because this really keeps your staff humming. That doesn't mean you are mentoring employees 12-hours a day, but that you have their success on your mind at all times. Evaluating your employees once a year is a one of those ideas that you really, really have to question. Normally an annual evaluation turns out to be the evaluation of only the last two weeks of an employee's work history. All employees, if they are human beings, need feedback to make sure they are living up their boss’s expectations. With only a yearly evaluation, frustration sets in quickly. I take each staff member out for a meal once a month. During that time, I try to find out how they are doing and to identify their needs. I also communicate how I feel they are doing in a clear and concise manner. Taking them out of the office really tells them that I want to be there to mentor them to be more and more successful. If you find the time to spend a few moments with each employee, you will be surprised what you might find out about your employees and how this individual time with them motivates them to succeed and promotes loyalty within the workplace.
Positive reinforcement is critical to being a great manager. So many times you hear staff members say that the manager only notices when I screw up and never notices when they do great things! Pay attention to great behavior and always recognize it whenever you see it. On a recent tour of a business I observed the owner who spotted one employee doing some great things. The entrepreneur stopped the tour to tell the employee what a great job he was doing. Recognizing great employee behaviors is a sure way to communicate to your staff how pleased you are with their performance.
Managing employees takes so much work and effort. However, it is so worthwhile because it makes your staff feel so much better about their work. Now go out and improve the ways you manage your staff.
You can do this!
All of us want to be the best managers we can be. After all, our employees are our company. The more we can motivate our staff to feel good about what they do, the better our organizations will operate. Managing employees takes work and a commitment to help them succeed!
One great thing you can do is to find out what each employee’s goals are and then help them achieve those goals. Finding out what each person really wants out of life does two things. First, it tells the employee that you really care enough about them to ask. Sometimes staff just will not know their goals, which is okay, but just asking translates to caring. Second, once you know what their goals are, you can help them achieve them. It is so surprising to me how many managers just have no idea of what the career goals are of their staff. It is so important to think of yourself as a coach. Like an athletic coach, your job is guide the team members to be the best they can be.
Another thing, you really want to become a full time mentor with each of your employees because this really keeps your staff humming. That doesn't mean you are mentoring employees 12-hours a day, but that you have their success on your mind at all times. Evaluating your employees once a year is a one of those ideas that you really, really have to question. Normally an annual evaluation turns out to be the evaluation of only the last two weeks of an employee's work history. All employees, if they are human beings, need feedback to make sure they are living up their boss’s expectations. With only a yearly evaluation, frustration sets in quickly. I take each staff member out for a meal once a month. During that time, I try to find out how they are doing and to identify their needs. I also communicate how I feel they are doing in a clear and concise manner. Taking them out of the office really tells them that I want to be there to mentor them to be more and more successful. If you find the time to spend a few moments with each employee, you will be surprised what you might find out about your employees and how this individual time with them motivates them to succeed and promotes loyalty within the workplace.
Positive reinforcement is critical to being a great manager. So many times you hear staff members say that the manager only notices when I screw up and never notices when they do great things! Pay attention to great behavior and always recognize it whenever you see it. On a recent tour of a business I observed the owner who spotted one employee doing some great things. The entrepreneur stopped the tour to tell the employee what a great job he was doing. Recognizing great employee behaviors is a sure way to communicate to your staff how pleased you are with their performance.
Managing employees takes so much work and effort. However, it is so worthwhile because it makes your staff feel so much better about their work. Now go out and improve the ways you manage your staff.
You can do this!
Sunday, November 21, 2010
Alternative Marketing Approaches
“ORIGINALITY is unexplored territory. You get there by carrying a canoe – you can't take a taxi.” ~Alan Alda
So many marketing consultants believe there is only one way to advertise. Some feel that face-to-face interactions are the only way to make sales, building trust first then convincing the client to buy the product. Other experts swear by advertising on social networking sites. However, there are so many other approaches deserving consideration that are simple and just as effective.
We were helping a renowned sculptor, Nilda Comas, whose sales appeared to have stalled because of the shape of the economy. However, she had a database full of over 4,000 former customers and serious inquiries. These contacts were her low-hanging fruit. We suggested that she call these clients and tell them she had some time free if they would like to take advantage of it.
Artists are notorious for not wanting to push their own products, so she was a bit skeptical about this approach at first. But she gave it a try and had tremendous success. On the first call alone, she was able to sell three high-end sculptures.
A small plumbing contractor was having serious difficulty in the current economic climate. She was hemorrhaging cash at a rate of $10,000 a month. Because of her cash flow trouble, traditional advertising was not an option, and even repeat business from existing customers would not have been sufficient to turn the problem around. We had to think creatively about how we could drum up business.
We suggested that she use door hangar advertisements to offer a special price reduction on the first service call. She hired some very inexpensive workers, and for two weeks, they hung 2,500 hangars a day. After just the first month of this promotion, she watched her cash flow go from negative $10,000 a month to positive $16,000.
My co-author, Tim O’Brien, and I have just published a new book entitled, “If You Have Employees, You Really Need This Book.” A very meticulous entrepreneur, Tim spent days and days researching the best ways to market our book. He knew that if we were going to be successful, the book had to be an Amazon.com Bestseller. We would need that stamp of success.
Tim discovered that in order to be an Amazon.com Bestseller, it had to be the top-selling book during a one-hour period on any given day. Tim quickly figured out that we could make this happen by encouraging all our friends and acquaintances to buy the book at a designated date and time. We sent out an e-mail blast to all of our supporters, asking them to buy the book on Wednesday at 11 a.m. If they did, they could go to our website at www.osteryoungobrien.com and get three bonus items. One of these items was a video of me talking about customer service, and a second was an e-book that Tim had written.
This was an innovative marketing effort that brought us great success. At the end of the day, we did become number one in our category at Amazon.com, and we did not have to spend very much to get it.
These are just three examples where alternative approaches to marketing products and services were customized to the entrepreneur’s circumstances and worked brilliantly. This is just the tip of the iceberg. There are so many other ways that can work for your unique set of products or services.
Now go out and make sure that you are considering alternative marketing techniques and not getting stuck in a rut with traditional methods.
You can do this.
So many marketing consultants believe there is only one way to advertise. Some feel that face-to-face interactions are the only way to make sales, building trust first then convincing the client to buy the product. Other experts swear by advertising on social networking sites. However, there are so many other approaches deserving consideration that are simple and just as effective.
We were helping a renowned sculptor, Nilda Comas, whose sales appeared to have stalled because of the shape of the economy. However, she had a database full of over 4,000 former customers and serious inquiries. These contacts were her low-hanging fruit. We suggested that she call these clients and tell them she had some time free if they would like to take advantage of it.
Artists are notorious for not wanting to push their own products, so she was a bit skeptical about this approach at first. But she gave it a try and had tremendous success. On the first call alone, she was able to sell three high-end sculptures.
A small plumbing contractor was having serious difficulty in the current economic climate. She was hemorrhaging cash at a rate of $10,000 a month. Because of her cash flow trouble, traditional advertising was not an option, and even repeat business from existing customers would not have been sufficient to turn the problem around. We had to think creatively about how we could drum up business.
We suggested that she use door hangar advertisements to offer a special price reduction on the first service call. She hired some very inexpensive workers, and for two weeks, they hung 2,500 hangars a day. After just the first month of this promotion, she watched her cash flow go from negative $10,000 a month to positive $16,000.
My co-author, Tim O’Brien, and I have just published a new book entitled, “If You Have Employees, You Really Need This Book.” A very meticulous entrepreneur, Tim spent days and days researching the best ways to market our book. He knew that if we were going to be successful, the book had to be an Amazon.com Bestseller. We would need that stamp of success.
Tim discovered that in order to be an Amazon.com Bestseller, it had to be the top-selling book during a one-hour period on any given day. Tim quickly figured out that we could make this happen by encouraging all our friends and acquaintances to buy the book at a designated date and time. We sent out an e-mail blast to all of our supporters, asking them to buy the book on Wednesday at 11 a.m. If they did, they could go to our website at www.osteryoungobrien.com and get three bonus items. One of these items was a video of me talking about customer service, and a second was an e-book that Tim had written.
This was an innovative marketing effort that brought us great success. At the end of the day, we did become number one in our category at Amazon.com, and we did not have to spend very much to get it.
These are just three examples where alternative approaches to marketing products and services were customized to the entrepreneur’s circumstances and worked brilliantly. This is just the tip of the iceberg. There are so many other ways that can work for your unique set of products or services.
Now go out and make sure that you are considering alternative marketing techniques and not getting stuck in a rut with traditional methods.
You can do this.
Sunday, November 14, 2010
Business and Marriage
“It's all about quality of life and finding a happy balance between work and friends and family.” ~Philip Green
So many businesses are run by husband-and-wife teams. While working alongside your spouse may sound ideal, I can tell you that it is one of the most difficult partnership arrangements out there. Running a family business is like running a normal business but on steroids. Not only do you have to be concerned with all the usual entrepreneurial issues, but you must also deal with all of the family issues that are often so deeply engrained in the business.
For husband-and-wife teams and family-run businesses, one question always seems to arise. What comes first, the family or the business? For some, the answer is that the family always comes first, but for others, the business always takes the front seat. Where this is concerned, it is not so important which school of thought you subscribe to. The critical issue is that the priority is clearly articulated and understood by all of the partners.
We were helping a great couple that had been through so much. The wife started the business but had partnered with an individual that stole money and made her life miserable. It took them more than a year to dissolve this terrible partnership. Much like a very bad divorce, there were many legal and emotional challenges, and the path to the end just seemed interminable.
In order to finally end the long and nasty legal battle, the wife had to sell all of the assets and start a new company. She had to close the business for two months to make the much-needed renovations, and because of legal reasons, they had to form a whole new corporation with the husband at the helm. The wife could not be engaged at all.
While the husband was a great guy, he really had very little experience running a business, and he was equally inexperienced at managing the company’s all-women staff. As his lack of managerial skills began to affect the business, they hit a cash crisis.
Reacting out of fear that he would run out of money and the business would fail, the husband became very dogmatic in managing the staff. His lack of management skills became more and more pervasive, and both the business and the marriage began taking a thrashing. Adding an extra layer of complication to an already grim situation, the wife did not understand her husband’s reasons for adopting such a rigid management style. Soon enough, both business and marriage was floundering.
One day, I got calls from both of them, each saying how frustrated they were with the other. They had reached the breaking point. Their marriage was in serious trouble, giving out under the pressure as the husband struggled more and more with managing the business and the wife became more and more frustrated with her husband.
The following evening, I had dinner with the couple to see if I could help them deal with some of these difficult issues. To begin, I asked them whether they felt the marriage or the business was more important. In unison, they both answered that the marriage was. Once that was established, it was easy to show them what the real issues were and how they could resolve them.
One of their most destructive issues was their lack of communication. As they took turns discussing what they felt were the real issues, the other just sat there in awe. Neither had any clue how the other person felt. Up to this point, they had not been communicating effectively, and as a result, they were completely in the dark about the other’s motivating factors.
The couple came away from our meeting with a newfound understanding of the importance of really listening to what the other was saying. The husband agreed to back away from running the business, and the wife agreed to step up and run the day-to-day operations. They each would have a say in expenditures over $500, and to resolve the communication gap, they would have weekly meetings.
This husband and wife started the evening as two separate people operating in different universes, but emerged as a unified team. As we left the dinner, both husband and wife felt so much better because they now truly understood where the other was coming from, and they were prepared to work together and support one another.
Now go out and make sure that the communication channels are open in your family business, and that each partner’s needs are being met. Additionally, make sure that you all clearly understand what will come first, the family or the business.
You can do this!
So many businesses are run by husband-and-wife teams. While working alongside your spouse may sound ideal, I can tell you that it is one of the most difficult partnership arrangements out there. Running a family business is like running a normal business but on steroids. Not only do you have to be concerned with all the usual entrepreneurial issues, but you must also deal with all of the family issues that are often so deeply engrained in the business.
For husband-and-wife teams and family-run businesses, one question always seems to arise. What comes first, the family or the business? For some, the answer is that the family always comes first, but for others, the business always takes the front seat. Where this is concerned, it is not so important which school of thought you subscribe to. The critical issue is that the priority is clearly articulated and understood by all of the partners.
We were helping a great couple that had been through so much. The wife started the business but had partnered with an individual that stole money and made her life miserable. It took them more than a year to dissolve this terrible partnership. Much like a very bad divorce, there were many legal and emotional challenges, and the path to the end just seemed interminable.
In order to finally end the long and nasty legal battle, the wife had to sell all of the assets and start a new company. She had to close the business for two months to make the much-needed renovations, and because of legal reasons, they had to form a whole new corporation with the husband at the helm. The wife could not be engaged at all.
While the husband was a great guy, he really had very little experience running a business, and he was equally inexperienced at managing the company’s all-women staff. As his lack of managerial skills began to affect the business, they hit a cash crisis.
Reacting out of fear that he would run out of money and the business would fail, the husband became very dogmatic in managing the staff. His lack of management skills became more and more pervasive, and both the business and the marriage began taking a thrashing. Adding an extra layer of complication to an already grim situation, the wife did not understand her husband’s reasons for adopting such a rigid management style. Soon enough, both business and marriage was floundering.
One day, I got calls from both of them, each saying how frustrated they were with the other. They had reached the breaking point. Their marriage was in serious trouble, giving out under the pressure as the husband struggled more and more with managing the business and the wife became more and more frustrated with her husband.
The following evening, I had dinner with the couple to see if I could help them deal with some of these difficult issues. To begin, I asked them whether they felt the marriage or the business was more important. In unison, they both answered that the marriage was. Once that was established, it was easy to show them what the real issues were and how they could resolve them.
One of their most destructive issues was their lack of communication. As they took turns discussing what they felt were the real issues, the other just sat there in awe. Neither had any clue how the other person felt. Up to this point, they had not been communicating effectively, and as a result, they were completely in the dark about the other’s motivating factors.
The couple came away from our meeting with a newfound understanding of the importance of really listening to what the other was saying. The husband agreed to back away from running the business, and the wife agreed to step up and run the day-to-day operations. They each would have a say in expenditures over $500, and to resolve the communication gap, they would have weekly meetings.
This husband and wife started the evening as two separate people operating in different universes, but emerged as a unified team. As we left the dinner, both husband and wife felt so much better because they now truly understood where the other was coming from, and they were prepared to work together and support one another.
Now go out and make sure that the communication channels are open in your family business, and that each partner’s needs are being met. Additionally, make sure that you all clearly understand what will come first, the family or the business.
You can do this!
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