Greg & Phil - Buying a Business Podcast
February 27, 2006
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In this show Phil and Greg begin a new concept for the show.
Links Mentioned in the Podcast
What Would you do if this were your last time doing whatever you're
doing? (Seth Godin article)
http://makeitgreat.typepad.com/makeitgreat/2006/02/what_would_you_.html
Malcolm Gladwell now blogging
http://makeitgreat.typepad.com/makeitgreat/2006/02/now_blogging_ma_1.html
Employees tend to quit their bosses, not their companies (grab the
picture too if you like)
http://makeitgreat.typepad.com/makeitgreat/2006/02/employees_tend_.html
Does Your Business Sell Hope and Certainty?
http://www.sbishere.com/does-your-business-sell-hope-and-certainty/
Book: Seeds of Greatness by Dennis Waitley
Phil's Blog: http://makeitgreat.typepad.com/
Greg's Blog: http://www.sbishere.com/
MP3 File
General Motors What Were You Thinking?!
February 22, 2006
In the mid 1990’s I created a series of entrepreneurial training programs and one of the topics we discussed was the service economy.
I held the point of view that General Motors, Ford, and Chrysler were service companies not manufacturing companies. Do they build and manufacture cars? Yes, but their balance sheet told a different story. Most of their profits came from financing vehicles, which is a service. The intangible service of financing a vehicle made the tangible car a reality.
So following 9/11 and their ‘Keep America Rolling’ incentive program, I was concerned. I wondered how long they could keep up with those 0% financing and cash back incentives before it really hurt them on their most profitable business ??? services.
Today, I got the latest issue of Fortune magazine and on the front cover it says, “The Tragedy of General Motors”. The problems that GM is experiencing have been silently percolating for decades.
Combined with the concessions made by previous CEO’s to quell labor strife, GM carries a huge financial burden. Only time will tell if GM will be able to avert Chapter 11. Regardless, GM will need to wake up and innovate to survive. This crisis is a huge opportunity for executives at GM to really make a difference.
Lessons Learned?
The impact that services have on the value of the products and services you sell is significant. So much so that I am concerned that CEO’s are taking it for granted.
Our economy in North America is changing. We are moving from a services based economy to innovation. The next wave of business growth will be fueled by innovation ??? the ‘innovation factor’ is where new market share will be carved out.
In the same way that services were the tool of choice to gain market share in the late 20th century - the ability of a business to innovate in the 21st century is what will make or break business in the 21st Century.
Whether you are GM, manage a company or department, or own a small business the challenge is the same - innovate to renovate!
Avoid the Valuation Trap - Buying a Business Podcast
February 21, 2006
In this show there are three segments.
- Avoid the Valuation Trap
- Global TV Interview (audio only)
- New Podcast Concept
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Avoid the Valuation Trap
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13.5 MB
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Global TV Interview
February 21, 2006
I appeared on the Global TV Morning Show on January 30th, 2006 and thought you might be interested to hear the interview where I talk about the book and buying a business.
Global TV Interview
February 21, 2006
I appeared on the Global TV Morning Show on January 30th, 2006 and thought you might be interested to hear the interview where I talk about the book and buying a business.
How Coaching Helps You Create Your Own Secret Sauce
February 20, 2006
As a Business Performance Coach I have the unique privilege of getting a glimpse into the life and characteristics of business owners. I have worked with entrepreneurs from all walks of life and what I see consistently is the difference character makes.
It is that unique combination of ethical qualities, strength, and originality in the nature of each business owner - that totally blows me away.
Every entrepreneur I have met is a unique individual with distinct life experience, vision, and desire that contributes to their success.
The Secret Sauce
The ’secret sauce’ is the intersection where business fundamentals meet vision, life experience, and personal desire to create a one-of-a-kind formula for business success.
That is what makes owning a business so exciting and addicting - it is the ultimate opportunity to express yourself and see your vision come into reality.
Yes, basic business fundamentals still are the essential main ingredient it is how each business owner mixes and combines those ingredients to build a successful business - is truly amazing.
As a business coach I help business owners create a recipe for their own ’secret sauce’ using a combination of training, coaching, and mentoring to improve the performance of the business, staff and the business owner. The acronym SOLID describes my approach to Business Performance Coaching:
- Structure: business coaching will expand your vision and give you insight into why some parts of your business are working and others don’t.
- Order: create order using coaching sessions to develop the owner, the business, and its resources. Coaching sessions become a refuge where you can unload, discuss, and strategize on your game plan.
- Leadership: skillfully lead and develop your team by improving your communication, leadership and management capabilities with an eye to optimizing business and employee performance.
- Infrastructure: identify gaps in operations, employees, and resources to equip the business and increase effectiveness.
- Develop: develop plans, tools, and systems to achieve the most wanted results; increased profits and less stress.
More Profit, Less Stress, Guaranteed!
As the author of two Tips and Traps business books (Buying a Business and Writing an Effective Business Plan) Greg Balanko-Dickson has recorded his business experience allowing readers to tap into experience in 32 industries reflected in more than 700 pages between the two books, his blog and proprietary coaching documents clients have access to a massive library of solutions, tools, and resources.
Reduce customer turnover by using our 56 customer service strategies to create happy employees because happy employees create happy customers. You will learn how to create the systems, train, and manage your staff so you can make more money with less effort.
Coping with declining sales and shrinking profit margins? Business Performance Coaching will increase your profits, financial resources, and eliminate the cash flow blues. Starting with a marketing audit, financial review, and management systems we work with you to create a sales and marketing action plan to increase effectiveness and make more profit, with less stress, guaranteed!
The Remote Control CEO program serves a dual purpose. It combines personal and business effectiveness coaching to provide greater peace of mind, life balance and a coordinated plan to delegate and download tasks so you have a business that works for you.
Feeling like things are out of control? Are you overwhelmed and struggling to deal with the chaos in your business? Feeling isolated? The long-term coaching relationship and Business Performance Coaching sessions provide a refuge to regroup, unload and create action plans. No longer will you feel like the ‘business runs you’ because you will regain a sense of control, feel more confident, and run your business with authority.
Clients have access to 58 Human Resource strategies, tools, and programs to help recruit and retain happy and productive people. Your coach works with you to identify business needs provide selection tools and training to fill the gaps with the ‘right people in the right seats’.
The Remote Control CEO is a sustained coaching relationship that increases accountability and focus. Each coaching session ends with a weekly action plan of achievable, bite-sized tasks so you are always working on the most important next step toward achieving your goals.
With more than 100 marketing tools to diversify your approach to marketing you will attract better-qualified prospects and reduce time spent in the sales cycle by applying our process to audit current marketing tactics, improve your brand and identity, test and refine marketing strategies and tools so you end up with a Lead Generation Machine that provides predictable results.
I have more than 80 sales strategies to bring more structure to your sales process to increase performance, shorten sales cycles and close ratios. I will help you document your sales process, create a sales and communication skills training system to help your sales people win the best customers and contracts to create a reliable and predictable source of income.
With more than 25 financial management strategies you will have more control of your financial resources so you can afford to expand, retire, or take that long overdue vacation. We work with you to create a system to track your key performance indicators so you spend less than you earn and move from surviving to thriving.
As a member of the Professional Business Coaches Alliance I receive weekly training and support. If I do not have the answer to a business problem, someone in our alliance does. This allows me to provide a multi-disciplined approach to provide you with options to solve any complex business issue or predicament.
Sincerely,
Greg Balanko-Dickson, LPBC
Accessing Retirement Funds to Start or Buy a Business
February 19, 2006
Should you use retirement funds to start or buy a business? According to a 2004 article at Entrepreneur Magazine you shouldn’t and the article makes some good points. In the USA there have been some changes to tax law to allow you to ‘borrow’ from your 401(k) account.
The keyword here is ‘borrow’ the money does have to be paid back. In some cases I think it has legitimate use and application to help fund a startup or purchase of an existing business. Especially when a bank requires 25 per cent of the total investment to buy a building or a business to come from you the entrepreneur. An extra $50,000 could make a big difference in the way a lender would view your application.
In the USA: How to Borrow from Your Retirement Account
If you are interested in financing your business, you should know …about a tax law change that allows you to borrow up to $50,000 tax-free from your 401(k) retirement account. Any business with no employees can establish a self-employed 401(k) plan that comes with a loan feature. It doesn’t matter if your business is a startup or has been around for years. You can run your business part-time or full-time in the form of a sole proprietorship, 1099 contractor, partnership,LLC, or corporation.
In Canada: The Self-Directed RRSP
In a self-directed plan, you make your own investment choices. These decisions can be based on information given to you by your tax or financial adviser. In fact, many Canadians allow their financial planners to look after their self-directed plans. However, as the owner of the plan, you always have the final say in how it’s managed and the types of investments purchased.
Yes, there are limitations and you should seek the counsel of a financial planner before using these funds to make sure you understand all the terms, risks, and requirements when making a decision to tap your retirement funds to start your business.
How do you define you?
February 18, 2006
I was thinking about this quote from Stedman Graham, in case you do not know who he is, he is also known as Oprah’s boyfriend. Before you jump to conclusions Stedman is a success in his own right. He has a a management and marketing consulting company and clients include Merrill Lynch, Wells Fargo, Georgia Pacific, Hyatt Hotels Corporation, Manpower, CNN, GlaxoSmithKline, Plains Capital Corporation, U.S. Department of Labor’s Job Corps, Harvard University and Wharton Business School.
None of us are defined by our circumstances, nor are we defined by how other people perceive us. It is up to each one of us to define ourselves, and that is a life’s work. Each of us has the ability to lead a dynamic life by pursuing our unique goals and dreams. There are no limits to what you can do. - Stedman Graham, author and speaker
Danny Cox is one of my favorite authors and speakers. He has two books Sieze the Day and Leadership When the Heat is On - I have read both and am rereading them now. Danny talks in ‘Seize the Day’ about being a high performance individual and states, “…high performance is a way of life.” and in his first book “Leadership When the Heat is On” Danny states that “…no organization can rise above the quality of its leadership.”
This got my attention, “… success or failure of individuals within an organization depends largely upon each person’s willingness to adopt the vision and commitment to the organizations leadership.”
Danny says that leadership runs in both directions, uphill and downhill - you will either influence others or be influenced by them.
What direction is leadership flowing in your organization right now?
Are you setting the standard or has that been left vacant? Have you abdicated your leadership role?
Natural vs. Self-Imposed Barriers
I was a good mechanic in my youth except I became allergic to the varsol, oil, and gas I was exposed to and became toxic and fell ill, until I got out of that business. That is an example of a natural barrier.
Danny says, “Self imposed barriers get higher and wider when individuals focus on their own weaknesses as pointed out to them by friends, employers, teachers, parents, conventional wisdom etc. Shifting focus on developing strengths immediately weakens self-imposed barriers.”
Peter Drucker said, “Strong people have strong weaknesses.” So you are in good company and you do not have a character or personality deficit - it is most likely an unresolved personal challenge.
What are Your Undeveloped Strengths?
Make a list of your undeveloped strengths. Then begin working on them and watch your life change - as you experience personal growth your performance increases and life changes.
In his book, Danny asks you to ask yourself, “Am I in direction right now or simply moving?”
“Life is the lively process of becoming. If you haven’t added to your interests during the past year; if you are thinking the same thoughts, relating the same personal experiences, having the same predictable reactions ‘rigor mortis of the personality has set in.” - General Douglas MacArthur
Networking Tips
February 16, 2006
It used to be ‘what you know’ then, ‘who you know’ and today it is ‘how well do you know someone?
Networking Starts With Relationships and a Lot Of Hard Work
It is the quality of the relationship with someone that determines the potential for doing business.
Networking has that word in it. ‘Work’… ooh we don’t like that word.
Think about it.
It is not called net-couch potato, net-eat, net-talk. It is called Net-work!
In order for it to be productive, you have to ‘Work’ at it. Follow these three steps to maximize the value of your networking:
- Be Prepared: pay attention to how you dress.
- Presentation: is more important than volume. Be cautious not to overwhelm them with details and too much info, your objective is to learn as much as possible so you can try to help them by providing them with a sales lead - this gives you a really good reason to follow up and call them back. If you have a lead, they will want to take your call.
- Build Relationships: I strongly suggest that you set up a informal meeting (coffee, lunch etc.) to get to know them better and begin to build a relationship and find out how you can each help each other.
- Say Thank You: so few people write notes of thanks today and those that do make a real solid impression. Try it, you’ll like it!
A little hard work goes a long way - the more you invest in other people, the greater the need they have to reciprocate and help you with promoting your business. Plus, you will make a lot of great friends along the way.
Why Employees Resist Change
February 10, 2006
You would think that with the pace of change in the world your employees would be used to adjusting and making changes. In fact it is exactly the opposite because for most their job provides important structure in their lives.
Work provides structure and organization to your employees’ lives. In some cases work represents the only stable and dependable part of their entire lives. Some will be struggling at home with a new marriage, a new child, sick loved one or who knows what. Work represents the one place they can depend on and where they experience order and structure.
Recognize the Symptoms
Personalities: some personalities dislike change in general. For example, the analytical and technical most likely resist change the most - it is just part of their nature.
Feelings: there will be some of your employees that feel taken for granted no matter what you do and resisting change is their way of trying to control their environment.
Values Shift: major life events or significant changes in their circumstances often evoke a shift in values. An employee that normally would not mind staying a late no longer wants to and leaves promptly at the end of the day.
Depression, burn out and stress: almost 10% of the adult population (18 over) will experience a major disruptive disorder. 1 in 10 of your employees are at risk.
Inappropriate Expectations: to live and breathe is to have expectations of others. Many times when an employee is resisting change can be traced back to some sort of expectation on their part of receiving special treatment.
Long-term employees: long-term employees have long-term memories. They can harbor ill will based on simple misunderstandings, miscommunications, and conflict.
How Business Owners Unknowingly Disconnect
Owning and operating a business can be grueling. It is quite understandable that when you get really busy you need to focus and may appear distracted or distant.
Loose Connection: One of the things that employees working in small businesses enjoy is the ‘connection’ they have with the owner. When experiencing sustained growth there is not the usual time available for ‘normal’ communications, commiserating, and visiting. For some personality types this is very important and when they do not get it they will create it or become despondent and in some cases move on.
A busy business owner gets into execution mode and when they are concentrating and trying keep all their ‘balls in the air’ employees need for ‘connection’ or to deal with a ‘important matter’ may seem trivial to the business owner but crucial for the employee. It is not uncommon for me to hear a business owner state that his/her employees often pursue petty issues. What is important to distinguish is whether it really is the issue or how the issue makes them ‘feel’ unimportant or overlooked.
Overlook Good People Doing Good Work: when you have a team and individuals performing well and doing ‘what is expected of them’ it is incredibly easy to forget about their commitment and contribution.
Sustained Business Growth: As the business grows and changes, the context of your relationship with employees will change. This is your business and you can decide to run it anyway you wish and that is what is appealing about owning a business - I Did it My Way! Raise your awareness by thinking back to how you related and communicated with your employees. How has the ‘personality’ of the business changed? Is that something you want to change or should it stay the way it is now?
Your Goals Change: as a person ages and matures so do ones perspective, interests and priorities. The same is true for a business owner. The complicating factor for the business owner is that the business ‘formed around you’ and in a small business or department you set the tone.
When your priorities change it is important to communicate your intentions to key employees in a confidential environment. Express your feelings and appreciation for their hard work and ask them to help you during this time. Be careful not to make many firm commitments but let them know how the changes in your goals and priorities will impact them i.e. an opportunity for career growth and that you definitely have them in your ‘plans’ and will update them when you know more.
A small business needs a little extra TLC because of the close quarters and high touch relationships in most small businesses. Nurture and encourage a friendly and caring culture - it will reward you handsomely.
Understanding Group Dynamics and Guiding Your Team
February 9, 2006
When groups form, whether it is a group of employees, mastermind or non-profit group - struggles are a normal part of the group dynamic.
The Four Phases of Group Development
- Form’ing: as the group continues to develop the group begins to ‘form’ and take shape.
- Storm’ing: this happens when a group is newly formed and people struggle to find their place in the group, trying to fit in and the word ’storming’ implies a bit of a storm develops as people wrestle for attention and their ‘role’ in a group.
- Norm’ing: or normalization happens as people settle into the routine and relationships within the group. Tensions subside and an identity and common purpose begins to appear.
- Perform’ing: the last phase of the group dynamic is that now the group begins to really perform and achieve critical mass, momentum, and sees results which almost as exciting as getting started.
NOTE: anytime a new person comes into a group this process starts all over again. In fact if your team is starting to get lazy and comfortable, add a new team member and they will awake from their slumber.
The Excitement Index
The other thing that happens when people try to grow and push to improve is the excitement that sustained them in the beginning drops off dramatically. I guarantee that the excitement will drop off. You will feel it and will notice yourself start to think about not going and not participating in the group.
You have to press through because any permanent and healthy change takes time and hard work. You are investing in yourself and others by pushing through and not quitting plus the rewards are just around the bend.
Growth is an Endurance Race
Personal growth is an endurance race not a sprint. You will have to dig deep to rally your team and stick with it. Things might be difficult and the team seem like it is faltering but share with them the Four Phases of Group Development. Stick it out and speak plainly and tell them what your expectations are - speak to their nobler intention - that part of themselves that knows, deep down that they are special and can do it.
They Will Rise To Meet Your Expectations
Funny thing about human beings, we are lazy and will always take the easy way out. Whatever expectations you set - no matter how high or low - people will meet those expectations.
Set your expectations a little beyond what is reasonable and you will be surprised to see your employees rise to meet your expectations. Do not stop setting and resetting your expectations.
Never give up on the human spirit and its ability to rise and meet a challenge. You cannot fail because the only true failure is to not try and quit. Never quit.
Rewarding Employees and How To Make it Pay
February 7, 2006
Rewarding employees can be a powerful tool or it can totally backfire and produce the exact opposite effect. The purpose of this article is to share with you what I have learned coaching business owners and an approach that definitely works.
I have written extensively on this topic and still have more to say hence this post.
The Trouble with Expectations
The secret to rewarding employees and ensuring that it motivates them onto greater growth and achievement is to be careful what you reward and how you do it. Let me explain.
Systematic rewards will become expected and your employees will come to feel a sense of entitlement to it and when that happens its effectiveness as a reward that motivates drops dramatically.
Be Clear About What You Are Rewarding
If you feel they really went over the top and exceeded your expectations that means you made a great hiring decision. The employee is a good fit. You need to recognize and reward yourself too.
You can reward achievement, behavior, and extraordinary contribution but you should never reward (monetary reward) them for doing their job well - after all isn-t that why you hired them in the first place? To do the job they were hired to do!
Reward Triggers
I see business owners wanting to reward employees that are typically triggered by one of three events including behavior, achievement, and extraordinary achievement. My observations include:
1. Behavior
Rewarding behavior is one of the biggest traps business owners fall into. Professional behavior and deportment is an expectation that every employer should get from every employee. To be successfully reward behavior you really need to know your employee and what drives him or her. When an employee is enduring trials in their personal life or facing difficult working encouragement and affirmations are the best option. If they are lacking self-confidence what they need is training, information, and knowledge. When they successfully complete the training or implement the knowledge into their work a raise may be a more appropriate reward.
2. Achievement
This is most often seen in sales teams where they get specific rewards i.e. a plaque, monetary gift, or gift certificate for achieving a specific goal. That is what is important - reward for achieving a goal - a public goal that was set in public and when achieved is rewarded in public. Set a public goal, measure and track progress, and then publicly reward them when it is achieved.
3. Extraordinary Contribution
In rare circumstances an employee attains an unusual level of achievement where the contribution to the community, business, or family is truly outstanding. This is the classic case of a good person doing what was right and going above and beyond. The reality is that for this person the reward is in the activity itself. Should you want to recognize this person think this through and decide how you can really ‘touch’ their heart. For example, organizing a surprise party with their family present as they get the recognition is a huge reward and positive anchor. They will remember it forever.
Maximum Impact
Your goal as business owner is for your rewards to have maximum impact and effect.
For rewards to have maximum impact you do not want to connect the reward with any specific behavior, let me repeat because this is counter-intuitive - do not reward and connect the reward with a specific behavior. The individual that is lacking confidence will be hurt next time they display the behavior and do not get the reward. For the achiever/promoter they will feel betrayed when rewarded once and then never again because in both cases, they have come to expect it or feel entitled. This is the exact opposite result of what you are looking for.
Remember, if you do decide to reward a behavior the reward must affirm the exact behavior you want and tell them this is a one-time thing you do once in awhile. The wrong reward will send the wrong message. Take your time with this and think it through.
You might be better off to do the reward at a time when they least expect it. It could be as simple as taking the employee out for coffee/lunch, or perhaps spending some time with them outside work. Your time is the most valuable possession you have - there is no higher compliment than to spend time with someone.
Is they are interested in sports take him/her to a professional basketball/football game. Find out what interests/hobbies he has and make the reward spontaneous.
What is more important is to develop a methodology for providing unexpected rewards.
Challenge the Achiever
When an employee exceeds your expectations it tells you they are trying to tell you something (notice me), and are a high growth individual that just loves their work.
Always use rewards as an opportunity to build them up, compliment them. Then keep ask them what their goals are - they will tell you their desires for job growth. Tell them you will think about it and see what you can come up with.
Then come up with a plan to challenge him. Talk to him about it, ask him what he learned, what he liked about the project. Learn something about him. Doing so ‘anchors’ a positive association with personal growth - a desire and thirst for personal growth will keep him on the ‘learning edge’ where pride in a job well done is the real reward. Pride of accomplishment is a huge emotional reward - it builds the person up and increases their confidence.
Sometimes rewarding with a monetary reward or gift can rob the individual of the personal achievement - cheapens it. It takes wisdom to do these things in business. Wisdom based upon what you know of the employee and what drives them to excel.
Use wisdom. Measure twice - cut once.
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