Building (and growing) a Fun business: Enough is Enough
Everything we’ve been taught about business growth is a myth
More is not necessarily better
Over the years, I have been on a journey in my thinking about entrepreneurship. Part of this has involved noticing a nagging feeling that I later realised was coming from a deep discomfort around the business world’s obsession with growth.
My second book is called “The Ten Truths for making your business grow” [you can download it for free here]. Whenever I re-read sections of this work, I still come away feeling excited and pleased with the content. However, pausing on the term “great growth company”, specifically, makes me realise that I have stopped believing in the business growth myth and the entrepreneurial model.
Here’s what I now believe to be true:
A business doesn’t have to grow to be healthy.
Enough is a good place to be.
The myth sounds something like this: Every healthy business must grow and a business that doesn’t grow, dies.
This is a foundation principle of business, capitalism and society at large. Every business coach, guru, mentor, consultant, author, academic and MBA student will tell you this. I admit that until not long ago, I sang from the same songbook too.
Today, I realise that the principle sounds good but is wrong… quite wrong. I am reminded of the quote by American journalist HL Mencken, “For every complex human problem, there is a plausible solution that is simple, neat, and wrong.”.
I don’t know who first stated that businesses must grow (and by extension, that more growth is better than less growth), but I do know that this “rule” is dangerous rubbish that has caused all kinds of damage to business owners, their families, their friends and society.
In fact, I think the idea that a business must grow or else it will fail exists alongside a number of other nonsensical notions on which we base the management of our society, such as celebrity worship culture and the basic belief that nothing is ever enough.
In the 21st century, we are never: thin enough, rich enough, good enough parents, educated enough, successful enough, beautiful enough, clever enough. And we are definitely never good enough as business owners. Well, unless we get to sell our business for $100 million or more.
The list of role models that we are told we must aspire to usually includes grass-roots entrepreneurs turned gazillionaires, such as Richard Branson, Steve Jobs or Larry Page. Don’t get me wrong, I think these are all amazing individuals, but I know many other people who are just as inspiring, yet they will never become billionaires (probably not even millionaires).
My Favourite Client
I have a client who is a plumber. He has three vans and employs three people. He might end up hiring one or two more people and having one or two more vans over the next few years but that’s probably where he will stop growing. He may continue to operate his plumbing business for the next 20 to 30 years and then, possibly, one of his kids or employees might take over. In any case, someone will probably run the same business in almost the same format and size for the bulk of this century and beyond.
His business isn’t dying, though. Far from it.
My client’s business is providing him, his family, his employees and their families with a good, meaningful and rewarding life – a life that allows him to feel proud, look after the people he cares about and do the stuff he wants to do.
In my eyes, this is a perfect model of a business that sustains the owner and everyone in the business and will do so for years to come.
The Little Voice
Now, I haven’t talked about this with my client specifically, but I can guarantee there is a small part of him, the little voice in his ear, the famous critic on his shoulder (mine is called Ted, by the way. What’s yours?), who will be whispering:
“You suck as a business owner.”
“You obviously aren’t fit to polish a true entrepreneur’s boots because a proper business owner would be well on his way to dominating Australia with offices and operations everywhere, ready for a lucrative take-over by Lend Lease or some other conglomerate like that.”
What does your little voice whisper to you in the quiet moments?
We are told by all the self-help gurus, business coaches and entrepreneurs who have already “made it” that we have to have an “abundance mindset” and that there are unlimited growth opportunities offering unlimited money for everyone.
All we have to do is think right and have the right attitude: “Screw It, Let’s Do It”, as the title of one of Richard Branson’s books suggests, and you too shall have an island in the Bahamas!
Allow me to be blunt: You will not have an island in the Bahamas, and nor will I, but you know something? That is perfectly okay. Who needs all that sun, sand and sea without 4G mobile reception anyway, right?!
Brene Brown says, in her book “Daring Greatly: How the Courage to Be Vulnerable Transforms the Way We Live, Love, Parent, and Lead”, that the opposite of scarcity is not abundance. She states that scarcity and abundance are, in fact, two sides of the same coin. Instead, the opposite of scarcity is enough, or sufficiency.
And it is. In time, my client’s plumbing business will enable him to employ a full-time admin assistant and then spend two days per week no longer “on the tools”. This will probably be “enough” growth for him.
That doesn’t mean the business goes to sleep and stagnates. There are all sorts of things that can be improved and run more smoothly. There are efficiencies to be gained and his people can get better. The business can steadily become more profitable as well. The challenges don’t stop, life doesn’t stop, but business growth can.
The Abundance Fantasy
When we are told to let go of our scarcity beliefs and embrace the abundance mindset, we are sold a fantasy. The pressure to embrace this mentality sets us up to feel bad about ourselves. It sets us up for failure and shame.
There is only room for one Richard Branson and one Donald Trump on this earth. 99.99999999999% of the rest of us are not going to become billionaires.
Neither you nor I will likely sell our businesses for $100 million. This book may end up being read by 100,000 people, for example, and it is possible there might be one or two in that group who will sell their business for some enormous amount of money. The rest of us will simply arrive at the end of our lives and have to find another way to measure how well we’ve done with the 75 years (hopefully more!) we were given.
The Entrepreneurial Myth
The entrepreneurial myth has done us all a lot of damage. We walk around with feelings of inadequacy, guilt and shame because deep down we know that we are not going to be the next celebrity entrepreneur and wealthy venture capitalists are not going to stake us with a few million dollars, only to cash out a few years later.
Enough is a great place to be. As Brene Brown says in her first TED talk, “You are enough.”
Your Homework (The Fun Kind)
So, I want to encourage you to ask yourself what “enough” looks like. What constitutes “enough” for you in your business? What do you need to achieve in your business that would mean you would be content with your achievements?
[INSERT CONNECTION/INTRO AND HYPERLINK TO NEXT BLOG POST AS CTA]
Next Month, I’ll be talking about what next and how to make it all come together for you in your business
What does it take to be the leader of a Fun business
Great leadership in business can (for a while at least!) compensate for less than perfect scores when it comes to profit, passion, planning and many other pivotal aspects of running a Fun Business that sustains you for years to come.
If you are a great business leader of your people, then you’ve taken the Leadership Truth from my first book (download it for free here) to heart: “Your time, your health and your brain cells are gold,”. It’s also likely that you live the Truth from my second book (download it for free here) about leadership: “You have passionate beliefs, you walk the talk, and you are not afraid to dream,”. If so, you will more than likely have a business that does better than most.
I also once wrote that “a leader is simply someone we trust, and who is courageous, authentic and passionate.” This is clearly a great starting point because if your people don’t trust you, then no amount of systemisation, marketing or planning will get your business past a subsistence level. Inversely, when your people do trust you, see your courage and feel your passion, you will be forgiven for many other shortcomings.
Now, I’m going to invite you to take this thinking one step further.
Fun for Everyone
A Fun Business should be Fun for everyone involved. It should also sustain everyone – not just the owner – for years to come.
When I say everyone, I actually do mean Everyone (with a capital “E”): you, your family, your staff, your staff’s family, your suppliers, your contractors, your customers, your investors and even your community.
In fact, I am completely convinced (from everything I’ve seen and studied over the past 35 years!) that truly great small businesses are founded by and built around a leader who is committed to building such a business, for everyone.
Servant First, Leader Second
In his book “Good to Great”, Jim Collins talks about the concept of “Level 5 Leadership”. Leaders who operate at this level are passionate, authentic, driven and ambitious – but not for themselves.
Level 5 leaders are ambitious for their organisation and their people. Their ego doesn’t get in the way of how they run their businesses. They might be heading up massive global corporations, but they still fly economy (like the founder of Ikea) or do their own shopping at the supermarket on Saturdays (like the founder of Walmart) or answer their own phones (like the CEO of Nucor Steel).
This concept has a lot of parallels with “servant leadership”. Robert Greenleaf at Harvard University coined the term in the 1970s, but the idea has been around for much longer (a famous Chinese general wrote about something similar thousands of years ago). As Robert Greenleaf explains: “The servant leader is servant first… It begins with the natural feeling that one wants to serve first. Then conscious choice brings one to aspire to lead… (versus one who is leader first…).”
In my experience, every small, medium and large Fun Business that sustains all for years to come is run by a leader who sees their role as servant first and leader second.
A great example of this “leader as servant” notion comes from a client of mine who owns supermarkets. I remember the day we were discussing the structure of his business and we had drawn a new organisational chart in the traditional hierarchical model – the classic pyramid structure.
My client sat on top of the pyramid as the CEO. He had two different top managers below him, a bunch of store managers in the middle and all the shop staff at the bottom. We spent a lot of time talking about the structure and it became clear that my client was feeling uncomfortable.
We got up and walked around the room a little and suddenly his eyes lit up while he was stood on the opposite side of the table. “That’s it,” he said, “I am going to turn the pyramid upside down! I see my role as being at the bottom, not the top. My role is to support everyone in the business to do great work and grow as people.”
My client had that insight in 2010 and now his company has grown into a Fun Business that sustains everyone and will undoubtedly do so for years to come.
There is a quote by sales guru Zig Ziglar that illustrates the same principle: “You can get everything in life you want, if you will just help enough other people get what they want.”
Your Homework (The Fun Kind)
Think about some of the greatest business leaders of the modern era. Don’t imagine the rock star leaders who are household names for a while and then cash out and let everything fall apart behind them. Focus on the quiet, enlightened leaders of businesses that grow and develop year after year without fanfare.
In order to build a Fun Business that sustains you for years to come, you need to strive to become an enlightened leader. These leaders are committed, driven and ambitious. However, they don’t do it for themselves. They do it for the business and its people.
What can you do to embody enlightened leadership? It could be anything from regularly sharing helpful insights and nuggets of wisdom with your team to honing your emotional intelligence in order to find more empathy for others. No guru necessary – I promise!
Remember, if you want to have something you’ve never had before, you’ve got to be someone you’ve never been before.
Next Month, I’ll be talking about the myths of business growth, click here
One of the greatest business management books of the last 20 years is called “Good to Great” by Jim Collins. The book explores what makes average companies become great, and a number of the conclusions translate just as well into the world of small business. In particular, I have seen time and time again with clients, friends, colleagues and in my own business that what Jim Collins refers to as the “Hedgehog Principles” are the absolute foundations upon which to build a Fun Business (and a business that sustains you for years to come).
The Big Question of Small Business: Purpose, Passion and Profit
I call it The Big Question of Small Business: Why does your business exist and why would anybody care? The answer is all about the three Ps: Purpose, Passion and Profit.
Jim Collins in his book talks about the simplicity and single-mindedness of the hedgehog.
In order to stay alive, hedgehogs do one thing really well: roll up into a spikey ball when under attack. They do this over and over again, never tempted to vary their approach. The Hedgehog Principles state that a long-term successful business must be able to answer three questions unequivocally and, like the humble hedgehog, never waiver from its commitment to the answers. The three questions are about Purpose, Passion and Profit and together they combine into the one big question I mentioned above, The Big Question of Small Business and
Many businesses can answer one of the three, some can answer two, but very few can satisfy all three. Long-term sustainable success is absolutely dependent on there being complete clarity for all three questions at once.
1) Purpose: A Fun Business Strives to be the Best in the World at ‘Something’
Question 1: What will we strive to be the best in the world at, day in and day out, without fail?
In the 21st century, it is simply not good enough to answer this question the way most business owners do:
“I give really good customer service.”
“My prices are fantastic.”
“I provide great products and services.”
Why? Because all of your competitors are saying exactly the same thing. Customers want to know what makes you different to everyone else. If you don’t clearly communicate the answer to the first Hedgehog Question, you are essentially leaving it in your customers’ hands to work out what sets you and your competition apart.
Oh, and I know it might feel a little unrealistic to aim to be “the best plumber in the world”, but you can sure as hell strive to be the best plumber in your world (perhaps your suburb) and for your narrow niche or sub-speciality.
Remember, customers always want to know what’s in it for them.
2: Passion: A Fun Business is Passionate About That ‘Something’
Question 2: What are we absolutely passionate about and will happily jump out of bed for, day in and day out, year after year?
Many business authors have written about the importance of this question:
“People don’t buy what you do, they buy why you do it.” – Simon Sinek (It All Starts with Why)
It’s Not What You Sell, It’s What You Stand For – Roy Spence
There is no doubt that there is deep truth in these statements. People want to know what you stand for: your core values and beliefs. It is this information, more than anything else, that helps them decide to do business with you over your competitors.
You can be passionate about so many things in relation to your business: making people smile, being a trendsetter, helping people achieve their dreams, building partnerships, or even seeing people improve their diet. These are passions that can be clearly connected to and expressed in the purpose of your business, and customers will understand why they’d want to do business with you.
If you don’t care about your business then your customers certainly won’t either, so you must honestly consider what gets you out of bed in the morning and how that relates to what your business does. Oh, and let me give you a hint: your passion for making money won’t do as the answer to this question (sorry!).
I promise, if your passion and your business purpose coincide, you will find it so much easier to take the next steps to building a Fun Business that sustains you for years to come.
Remember, it’s not what you sell, it’s what you stand for.
3: Profit: A Fun Business Makes Sustainable Profits from That ‘Something’
Question 3: How can we create a long-term sustainable economic model around the answers that we gave to questions one and two?
This question is actually more complicated than it seems, and most businesses never really sit down to work it out properly.
Firstly, just because we are passionate about something and we are the best in the world at delivering that something doesn’t guarantee we can build a business out of it: Is there enough of a market to win consistent work in your area? Do you need to expand into other complementary services or build a flexible team that can manage peaks and troughs in demand?
Secondly, a business must make money to survive. How much money the business needs to make is a complex question to answer. Your business will likely need to provide for your financial needs, and it will also need to make enough profit to provide a return on investment to the shareholders or investors (even if that’s just you and your financial input). A business also needs funds to grow – actual cash that you can use to pay your bills. Businesses in a growth phase will be particularly thirsty for cash and the best way to quench it is by having profits.
Thirdly, it’s important to think about your business’ ability to generate steady long-term profit and cash flow. In other words, if you don’t think about the sustainability of your business model, you might end up with a flash in the pan. A good rule of thumb is to ensure that your business is not reliant on one customer for more than 10% of its revenue.
Finally, the last reason why a business must make profit: Making money is a lot of fun. It is simply a heap of fun to make money and to see the balance sheet grow!
Remember, a business that doesn’t generate profits and cash is a hobby.
Your Homework (The Fun Kind)
If you make sustainable profits from doing something you are passionate about and committed to being the best in the world at, all the steps towards building a Fun Business will fall into place – I promise. And the way I see it, if you are not in business to have a lot of fun then I suggest you find an easier way to make a living!
Still eager to stick with this messy-and-tricky-yet-incredibly-fun entrepreneurial stuff? Ask yourself the following question today:
What first steps can I take in the next few weeks to focus my business on the three Hedgehog Questions?
The Three Secrets to Building a Beautiful Business and Life
Have you ever felt overwhelmed, frustrated or stuck in your business? My guess is that most of us have, and, if you haven’t, then you’re either knee-deep in denial or some kind of entrepreneurial unicorn. (If you fit into the latter category, feel free to move smugly on to another blog post… but not before you send me your secrets!)
When we first start out on our entrepreneurial journey, we’re told that success is all about the sensible, hardnosed principles and business buzzwords that you’ve likely heard a bazillion times: visioning, leadership, delegation, systems, planning, KPIs, and more. Of course, all of these things are crucially important, but there are three key principles that matter even more.
Three Unrecognised Factors for Success
I believe there are three undervalued and almost unrecognised factors for business success that are far more important than all those clichéd examples put together. These are the secrets to getting unstuck, stepping out of overwhelm and finally building the beautiful business and life that you deserve.
So, what must you learn?
Your time is your business’ most valuable asset.
It’s okay to say “no”, often.
Be kind to yourself.
And that, my friends, is it.
Simple, right? Too simple for some of your sceptical minds, I’m sure. In fact, I can feel the eye rolls and smirks burning through the screen, but don’t write my theory off just yet! Your beautiful business (and life) is on the other side of listening to, and applying, what I’m about to share.
Maximising Time: Your Most Valuable Asset
In my experience, most business owners believe their most valuable asset is their staff, customers, intellectual property, stock, equipment or buildings. All of these things (or people) are incredibly valuable, for sure, but time is the only asset that is truly limited. You can never get more time – no matter how much you try to beg, borrow, hire, buy or steal.
Your time – spent fully focused on the stuff that really matters – is an asset almost as rare as rocking horse droppings.
In order to build a beautiful business and life, you must learn to become greedy with your time. You need to repeatedly check in and ask yourself questions like:
Is this thing the best use of my time right now?
What would happen if I didn’t do this thing?
Is there someone else who could be doing this thing instead of me?
What would happen if I did this thing later?
If I do this thing now, what am I sacrificing?
Trust me: it pays to train yourself to ask these questions, often. Make it a habit. You will always have a “to do” list longer than your arm. You will always have more demands on your time than you can physically fit into a good day’s work. That is, of course, if you aren’t an aforementioned entrepreneurial unicorn (in which case, why are you still reading?!).
In short: learn to do only the stuff that matters most.
Saying “Yes” to Saying No
There is no more important skill for a business owner than knowing how and when to say “no”. Why? For starters, it will help you out immensely with achieving point 1 (maximising your time), but it will also pave the way for making your business stand out from the crowd.
Marketing 101 says that every business needs a unique selling point (USP). That’s why it pays to know your fortes and play to them by turning other opportunities down. After all, “a jack of all trades is the master of none”. Focus on your fortes and you’ll reap the rewards of presenting a highly differentiated brand.
Here’s some homework to get you started. Practice saying “no” in front of the mirror and then make a pact with yourself to say it for real at least once this week – or better yet, today! Remember, it is possible to say “no” respectfully, clearly, calmly and without feeling guilty. This brings me to my next point…
Less Guilt, More Kindness
Do you frequently beat yourself up for procrastinating? Believe you’re inherently disorganised, forgetful and lazy? Think your time management SUCKS? Does a cruel voice in your head frequently tell you that you’re not good enough?
You’re not alone. Absolutely everybody (except psychopaths!) has that critical inner voice. Everyone lets their worries, anxieties and irrational feelings of guilt get the best of them sometimes. However, us business owners are particularly hard on ourselves. In fact, I often jokingly say that small business owners are the most guilt-ridden people on the planet because I hear these kinds of self-deprecating words so often in my coaching practice.
That’s why I saved this particular pearl of wisdom for last, hoping you would remember and digest it well. In my humble opinion, being kind to yourself is not only the most powerful antidote to self-sabotage, but your fastest path back to JOY.
Being kind to yourself is not just the most effective way out of feeling stuck or overwhelmed in your business and your life – it’s the only way.
When we allow negativity and feelings of guilt to take hold, we give ourselves ever bigger burdens to carry. We set the bar impossibly high and then we punish ourselves when we don’t hit the mark. We lead ourselves to the paralysing place of overwhelm with too many tasks to complete in too little time and no plausible end in sight.
An overwhelmed brain is not pretty. It’s extremely inefficient, scientifically proven to underperform at every level and an enormous waste of your incredibly valuable time. And while the devil on your shoulder is, in fact, a protective mechanism designed to keep you safe, that doesn’t mean it ain’t a giant pain in the arse. So, how do we overcome it?
The good news is that you are completely capable of dialling down the negative voice and freeing yourself of imposter syndrome (feeling inadequate despite your success). Our brains are surprisingly malleable, and it IS possible to break the habit of a lifetime. Begin by noticing it and catching yourself in the act. Be inquisitive about where the self-doubt could be coming from. Remain compassionate, judgement-free and patient with your perfectly imperfect self while you reframe those pesky misperceptions and then continue on your merry way feeling 10 stone lighter!
I promise you; this soft, cuddly kindness stuff is the most crucial and hard-hitting work of all. Silencing (or at least muting because it’s a work in progress for all of us, including me!) that inner critic provides the space for creativity to flourish and a new level of clarity and productivity to arise. Plus, as soppy as it sounds, you have every right and reason to give yourself a pat on the pack. You’ve made it this far. You’re alive. You’re learning. You’re growing.
Your Permission Slip
So, here’s your permission slip to stop, give yourself a break and smell the roses. Look at what you’ve already achieved. Tell that little voice in your head to kindly move along because you’ve got this, and you ARE good enough. Now, make a note of my TLDR summary below and then TAKE ACTION on the good stuff today.
If you’re feeling overwhelmed, frustrated or stuck and you want to build a beautiful business and life, you must learn to:
Accept that your time is your business’ most valuable asset – and act accordingly.
Say “no” regularly, calmly, respectfully and clearly.
Be kind to yourself, above all else.
This shit works. I promise you.
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How to grow your business is the most enduring of The 7 Big Questions. All of us business owners have felt frustrated at some stage in our journey to building a Beautiful Business The business feels stuck at one level and we are not sure how to get it to the next level.
So many misunderstandings and myths about business growth:
I have written about the general topic of business growth in many different places. I think there are a number of misunderstandings about business growth that are not helping us, as business owners, to feel better about ourselves. The first article is about that (and you can also read about the misunderstandings about growth in my book: The Ten Truths for Making Business Fun):
I believe that to grow a Beautiful Business that Stands the Test of Time you must be able to answer the question: Why does your business exist and why would anybody care? Most business owners can’t answer that question succinctly and powerfully. That’s bad, because if you don’t know why your business exists, your customers certainly won’t be able to tell, and then all it comes down to is price. Competing on price is a dog’s game, unless you’re Aldi, where price is your Purpose. The second reason you need to be able to answer the question clearly is that if you can’t, you will never master the greatest skill of effective business owners, namely the ability to say “NO”.
We’ve all heard that to grow your business you must start with Goal setting. But effective Goal setting is more complicated than you might think. Most Goals we set for ourselves and for our businesses are at best ineffective and at worst actually hinder our progress. Goals are often arbitrary, unrealistic, and unrelated to what really matters in our lives. A Goal to make $2 million revenue is an arbitrary and meaningless number, why $2 million? why not $1,956,384.13, or $2,163,927.46 for example? And so what when you reach the goal? Will you be better off somehow? What if you fall short? By $100, or by $1,000, or by $100,000? Does that mean you are a failure? Goal setting really makes a difference, as long as you understand that Goals are like a compass, they provide a direction on your journey, they are not the destination.
Marketing is about creating opportunities to sell your stuff. As such, I fervently believe that:
Marketing is everything and everything is marketing
And it is. To grow your business you have to look at every aspect of your business. Marketing is about advertising campaigns, and social media and designing your logo and your website, but it’s also about how you answer the telephone, about your pricing policies, about ensuring that your customers are happy with what you sell them. It’s about how you dress and about how you present your quotes and about your Public Relations strategies and about your warranty return policies. One of the greatest marketing strategies is a relentless focus on quality in everything the business does, in order to “Create Raving Fans”, because if your customers are all Raving Fans, they will actually do your marketing for you.
I don’t mean to imply that online marketing is somehow something different from all other forms of marketing, it isn’t. But it is useful to pay special attention to online engagement and marketing to build and grow your business, because it has become such an important aspect of any marketing strategy. Whether your business is a cafe or a building company or a law practice, or it imports widgets or makes whatsits, you can not ignore a bunch of different forms of online marketing. Email marketing, content marketing, Search Engine Optimisation, Search Engine Marketing, Social Media Engagement, Social Media Marketing, online PR, online reputation management (The ubiquitous star ratings), video marketing. The list is near endless and constantly changing.
You could easily argue (and I have in one of the articles I refer to below), that the principles of marketing haven’t changed, we’ve just got a bunch of new tools to do it with. And at one level that’s true, people still want to get to know, like and trust you before they will do business with you. But on another level things have changed drastically. Ten years ago, you’d give someone a business card with your web address on it and they would immediately want to know if you also had a bricks and mortar store. These days they want to know you’ve got a high functioning web presence and that you’ve got a presence on Facebook and on Google local and ideally a bunch of 5 start ratings on Yelp and Trip Adviser. Whether or not you have a bricks and mortar presence, simply doesn’t matter anymore. Online engagement in all forms must be part of your marketing strategies or you will not be taken seriously.
That’s a quote I saw hanging on the wall at a big office once, many years ago. And it’s true. No business growth, no business, without sales. No matter how great your product is, how beautiful your logo is, how smart your website is, or how wonderful your employee conditions are, if you’re not selling, the business will cease to exist.
Sales is often seen as a subset of marketing, but I’m giving it it’s own section here, because I think of marketing as getting the customers to your door and sales as actually getting them to hand over money. Lead generation v lead conversion. Sales is about skill and it’s about mindset and systems and above all, it’s about making it easy for people. And this last word is the key to the whole shebang. It’s always about people. The old saying is:
People do business with people they know like and trust
You must always remember it’s about people first and foremost and in small business especially it’s about people in both directions: People do business with people. Your whole approach to sales, especially in small business, all aspects of it must be built on a people to people philosophy.
A business without a Plan achieves everything in it
Nothing in other words. Your business growth depends on planning. No human endeavour ever amounted to anything without a plan. Yet planning is guessing. It can never be anything more than guessing, because we can not know the future. So if planning is guessing, why does it matter so much and how can we do it so it works? There are two important answers to those questions:
1) You must understand that there are two entirely different types of business plans: Internal Plans, and External Plans. External plans are designed to impress others about your business and form part of the documentation to obtain a loan or other form of funding or make a proposal to a third party of some sort.
Internal Plans are documents designed to help the business focus. They are combined with meaningful goals (see above) and they help people in their day to day decision making processes. Internal and external plans have different functions and are presented quite differently as well.
2) Planning is a verb. It’s not static, it’s an activity that never stops. As soon as one plan is created, we start again. John Lennon said: Life’s what happens when we’re making other plans. Planning is like that, we make a bunch of assumptions and plan our actions accordingly. Then we go ahead and check reality as it unfolds and make changes to our plans to suit the new realities, every day, every week, every month and every year. Business Plans that work, that make a difference, are living documents.
Customer service is also a subset of marketing of course, if done well it leads to more business from those customers, and as I said above, everything is marketing and marketing is everything, but it’s worth mentioning separately, because of the concept of Raving Fans. Ken Blanchard wrote a little book that said it best in the title: Create Raving Fans and have your customers do your marketing for you. It’s a great little book and there’s a link below to get yourself a copy of it.
The principle of Ken Blanchard’s book is that your business should always be working to do one better for your customers than they expect. If you do so, your customers will become your advocates (Raving Fans) and advocates will go out of their way to help your business grow. They will talk to their friends about you, they will drag their colleagues to your door. They will defend your business against the competition and best of all, they won’t quibble about price. If your business focuses on turning it’s customers into Raving Fans, you will be able to slash your marketing budget in half, over time, for a better result.
Grow your business with systems and quality improvement
My clients often ask me to help them grow their business, and I often tell them to stop worrying about that. Getting more customers is actually the easy part. The hard part of business is:
To deliver what you say you will
By the time you say you will
For the price you say you will
At the quality you say you will…
With a smile
If you can do that all the time, the customers will come flocking to your door and you won’t have to spend much money on marketing (for one thing because you’ll be creating Raving Fans, see the previous topic). And right now, you may well be doing all those things, with a smile, but the trick is to be able to keep doing that as the business starts to grow.
I can’t tell you how many businesses I have seen struggle and fail in my years in business who couldn’t maintain their product or service quality and dependability and price, at scale. Once the business starts to grow and you, yourself, are no longer in charge of every step in the process, things start going wrong. Quality becomes inconsistent, delivery times become unreliable, prices go up or profitability suffers and your smile starts to disappear. Once the rot sets in like that, your reputation starts to suffer and customers start to look elsewhere.
There are only two answers to this dilemma: Either, don’t grow, stay small, learn to say NO and say it all the time… Or systematise. Developing systems for all aspects of the operation is the only answer. Systems for how the phone is answered, systems for estimating, systems for quality checking, systems for calendar management, systems for inventory management, systems for callbacks and warranty repairs. Systems for marketing, systems for hiring and firing etc etc. Above all, systems allow you to create Continuous Improvement Loops into your organisation. And continuous improvement is the Holy Grail of business. It’s what made companies like Toyota great.
Inventory management is a big specialised topic, and it’s really a subset of the systems section above. There are whole management libraries written about the various philosophical approaches to managing stock when building and growing a Great business that Stands the Test of Time. My earliest lessons of inventory management came from the owner of a big hardware store I dealt with a lot in my days as a builder, Colin. One of the reasons I bought so much of my material from Colin was that he always had everything in stock. Colin clearly knew what it took to create business growth, because his business was booming.
I asked Colin once if keeping such high stock levels of everything a builder such as myself might need from time to time was economical for him. I imagined that it was a very expensive way to run a business, having all that money tied up in timber and hardware and bits and bobs. His answer was:
If I don’t stock it I can’t sell it.
I have often thought about that statement in the years since, now that most operations run on the principle of “just in time”. Supermarkets have made an art form of stocking just enough and not a jar more than required, to minimise shelf apace and inventory cost.
I don’t know what the answer is, but I know that Colin got all my business for 20 years and most Sydney builders had an account with him, because everything we needed was always ready to be picked up.
Grow your business with hiring, firing and engaging people
Michael Gerber in his famous book “The E-Myth” wrote that it’s impossible to manage people and hence great businesses focus on systems, and manage those instead. And that’s certainly what grew McDonalds into the enormous business it is today, no argument. And as I’ve written elsewhere before, if you set out to make as much money as possible from selling restaurant food, it is undeniably the case that the McDonald’s model is the one to emulate. But, I can’t tell you how happy I am that not everyone in the restaurant industry wants to build McDonalds, because the world (and my palate) would be the poorer. The same philosophy can be applied to any industry.
If you’d like to build and grow a unique business, a business with an individual character, you’re going to have to manage people. You’re going to have to get good at putting the right people on the bus, sitting in the right seats, facing in the right direction and also know which people to get off the bus. If you don’t learn how to find and keep the right people and get them to do great work, your business will always struggle.
That means developing hiring policies, being prepared to hire people who might be better than you are at certain things, learning how to do great interviews, implementing induction and development training programs. It means learning how to coach your people, encourage them and hold them accountable. And it means learning about effective delegating. It means doing the HR admin and compliance effectively, writing job descriptions and doing performance reviews. It means learning what it takes to be a leader and it means being prepared to take the tough decisions when required, and take them quickly and respectfully.
To build and grow a Great business that Stands the Test of Time, you can’t afford to be left behind. The pace of change and innovation is relentless and what was ok even a few years ago is no longer ok now. Not long ago it was still fine for a cafe to have a sign saying “cash only”, but in 2018, you’ll lose a lot of business if you don’t accept cards in payment. Even in a business as simple as mine, people expect me to be able to accept online bookings. Cloud computing combined with smart phone technology and advanced GPS systems mean that customers now expect to be informed that their plumber is on its way and can be expected to pull up in front of their house in 13 minutes.
You don’t need to be Uber or AirBandB to implement new technology and come up with new ways of doing business. I just bought a house in a different state of Australia. The real estate agent gave me a private showing of the house via Skype. I engaged the conveyancer, the building inspector and a surveyor all without setting a foot in the house or the state.
A client of mine with a creative marketing agency has a team of designers and copywriters and marketing assistants all over the world and she rarely even meets her clients face to face. Another client with a small supermarket chain has technology in his stores that allow him to see what’s going on in any part of any store and to get live access to each of the store’s Point of Sale systems. He’s also just implement a bunch of tablet screens in his stores allowing people to find dinner recipes incorporating the fresh vegetables he has on special.
And all this stuff is only the beginning. It won’t be long before artificial intelligence is integrated in doctor’s surgeries and lawyer’s offices, and copywriting agencies. If you think that technology and innovation isn’t going to have a massive impact on the way you do business and how to create business growth, you are kidding yourself.
I’m often asked what the secret of small business is. I was recently asked this question by a new internet support service for micro and home based businesses called Brazzlebox . I told them there’s only one thing to get right and that is be able to answer the Big Question of Small Business, What’s the Purpose of your business?
It’s actually a really interesting question, and one that few business owners stop to think about before they get their business underway. I’ve also written about the Big Question here on Medium.com and in other pages on my website here as well as in this podcast for example. To be honest, I think that most business are started more or less by accident.
Of course there are startup entrepreneurs who plan the development of the next widget, they take a shared office space in some kind of incubator and plan to sell their widget to Facebook for 25 trazillion dollars one day, but I believe that those business owners are in a tiny minority.
The small business owners I meet everywhere (and the ones I support) start their business when an ever increasing level of frustration with their job or career to date simply overflows the bucket and they decide to take control of their life in their own hand.
And when that moment arrives they run around doing the practical logistical things; bank accounts, business names, email addresses, business cards… the basics, but the really important questions are not usually addressed until much later, sometimes never.
The really important questions that we should all attempt to answer right from the word go are the questions about the strategic direction of the business, the Goals (short, medium and long term) and the biggest question of all:
Why does your business exists; What’s it on this earth for, and why would anybody care?
Whenever I am at a networking function talking to business owners I always ask them what is special, or different about their business, why I would want to do business with them and how I could refer business to them. It’s actually surprising how difficult most business owners find it to a give a clear answer to those questions. Mostly people try and tell me that they have a Great product (Our widget comes in 23 different colours) and they give Great customer service (We re smaller than the competition so we care more about our customers) and their prices are Great too (we’re really efficient and run a tight ship and we have few overheads and we’re committed to “adding value”).
These days I have hardened up a bit so I don’t feel the pain so much anymore and mostly I remain polite and nod with interest and make engaged noises, but deep down I think to myself: “Oh Please… not another one!”
Of course you have a great product with a great price and great customer service, “D’OH” as Homer Simpson would say… I don’t think I’ve ever talked to a business owner who told me their product was average, their prices were average and they kind of looked after their customers in an average manner either. The competition has those three covered as well as you do (otherwise they wouldn’t be your competition in the first place) and your potential customers assume you will deliver them those three as a minimum, otherwise they wouldn’t be talking to you.
You have to find what sets you apart, what makes you different, because if you don’t, your customers only have one way to decide who they’ll use and that is by comparing your price and competing on price is a dog’s game, it might work for Walmart and Ikea but few others.
So… Why does your business exist, what’s it on this earth for, and why would anybody care about that?
I have a client who is an architect, he defined the purpose of his business as “Architecture that Inspires”
I have a client who owns a gym and he defined the purpose of his business as: “To build the finest resistance training community in the world”
I have a client who has a video production business and the Purpose of his business is: “It’s a joy to work with us”
When I meet someone at a networking function and I ask them what’s special about their business and they give me a powerful short statement like that, I sit up and take note and I’ll remember them and I will be able to introduce them to potential clients.
Also when your business rests on such a strong statement, it suddenly makes everything so much easier:
It’s suddenly easy to make decisions about which jobs to bid for and which opportunities to say No to
It’s suddenly clear which employees to hire
It’s suddenly clear what prices you should be charging
Finding the Purpose of your business and being able to express it with complete clarity is absolutely the biggest step you can take to building a sustainable, fun and rewarding business.
This is the first is a series of 12 posts on Change (with a capital “C”) and laying the foundations for building a Great Business that Stands the Test of Time. The following 11 weeks will see one post each week. Please also read last week’s post about Entrepreneurial Types, here.
The very strongest foundation for a great business
To become the very strongest foundation for your business, I believe you must learn to focus on 10 Priorities. They are:
Asking for Help
Over the next 10 posts I’m going to explain each of the priorities in more detail. The 10 posts are quite short (about 200 to 250 words each) and practical. I hope you’ll take the simple messages of each one to heart and experiment with them in your own life as a business owner. You can do a simple search and read all of the Priority posts at once, by clicking on the category: “Ten Priorities” in the category box in the right hand column.
The life of the harried business owner
First, let me sketch a picture of the life of a typical small business owner for you (BTW, I’d love to hear if you recognise yourself in any part of the picture):
You’re the first one in the door in the morning and the last one out at night. You run around from crisis to crisis, extinguishing brush fires all day long. You feel guilty that you don’t do the stuff you know you ought to do to develop the business. Your staff don’t seem able to tie their own shoe laces without your supervision. Customers expect you, not your staff, to be the one who personally does all their work for them, yourself. You actually made more money before you started employing all those people anyway. And finally, you have to do your admin and catch up on your email after the kids have gone to bed.
Sucked into a sea of mud
Recognise any of that picture at all? Even if you only recognise 25% of that picture, you’re most likely on first name terms with overwhelm. Overwhelm is no fun anyway, but worse is that human brains in overwhelm are ineffective, they focus on the wrong things and make the wrong decisions and that leads to more stress and overwhelm and the whole thing becomes a vicious cycle. Overwhelm affects your health and well-being and that of your families and besides, your business gets sucked into a sea of mud as well.
That’s the general state of things for many small business owners in my experience and some of the reasons many small businesses never develop to their potential.
Hence I’ve written The 10 Priorities. Accompanying the 10 Priorities are also a series of videos as as seen on Kochie’s Business Builders on national TV, Channel 7 in Australia, the first video can be seen here and others will follow as they are broadcast. I have also created a survey tool to help you find your own Entrepreneurial Type, you can complete the survey here and you will receive a report with your Type and an explanation of the Types and your strengths and challenges as an Eentrepreneur, by email in 24 to 48 hrs emailed to you.
If you make it your absolute commitment to focus on The 10 Priorities in the coming year, you will create a foundation on which you truly can build a Great Business that Stands the Test of Time, and your life will never be the same either… I promise you.
Why scraping nasty chemicals from the bottom of boats beats working for a living
In 1984 I arrived in Sydney as a corporate refugee with my wife and daughter. Until that time, I’d trained and worked as a journalist on various newspapers in Holland. But it was time to change the corporate Smoke-filled, Alcohol-fuelled offices of a daily newspaper in Holland for the Sun-filled, Wholesome Great Outdoors of Australia. Specifically, I wanted to work on and around sailing boats on Sydney Harbour.
We had very little money when we got here (The Dutch money we brought with us, converted to Australian dollars, was precisely enough to buy an old Ford Cortina and pay the rental bond on a grotty little terrace house in Redfern, and that was just about it) and I needed to make sure I got a job quickly. So I jumped on the first thing I could and got a job at the old Dairy Farmers Factory in Ultimo, packing yoghurt beakers into cartons.
I worked there for a couple of months, and some of the gloss had started to come off our big immigration adventure, when I met up with an old friend at a typical Sydney backyard barbeque. I’ll never forget his words, he said: What are you doing working in that factory? Right now, while you’re not fully settled in yet, is the best opportunity you’ll ever have to create the future you’ve been dreaming of and the longer you keep working in that factory, the harder you’ll find it to get moving.
Walking on the dock of the Bay
He was right, the next day I walked out of the factory. I went down to the big yacht-marina in Rushcutters Bay, and simply asked anyone I saw around the docks if there was any work going.
I’ve not worked regular hours, taken home a regular wage, or been told what to do by a boss since.
I won’t sit here and tell you it’s all been plain sailing (!!). Far from it. I’ve had to do some pretty unpleasant work from time to time (Scraping old antifoul paint (nasty chemical stuff that stops algae from growing on the bottom of boats) from the hulls of old trawlers in 40 degree Sydney heat is not one of my fondest memories), and I’ve stuffed up various contracts in those early years (The look of horror on the face of the owner of a boat I’d painted in entirely the wrong colour, still comes to mind from time to time), and I’ve naively been taken to the cleaners by unscrupulous customers at other times, but I’ve somehow managed to make a living, pay various mortgages and send the kids to school from 1984 to now.
Wild rollercoaster rides
Slowly but surely my work became a business and the business evolved away from boats to houses, it grew steadily and 20 years later I sold the building business to a junior partner. And in 2004 I started this thing I do now called business coaching and mentoring. And I feel good about myself and my life to date. It’s been a wild rollercoaster ride at times, but I am forever grateful to my old friend who shook me up at that barbeque in 1984. I am basically a happy chap.
Why am I telling you this?
Well, you see, I meet all kinds of people, those who work for The Man and those who work for themselves. And it’s become clear to me that people who work for themselves are nearly always happier than those who are employees, especially those who work for big companies. I believe this is because people are happiest when they feel they have agency, when they feel they are in control of their own lives.
As a business owner. when things go well you can pat yourself on the back for making that happen and when things go badly you know that the buck stops with you just as much, and that they have it in their hands to turn things around again. Business owners know they are largely responsible for the outcomes of their lives.
Dogs and electric shocks
I read a book by Prof Martin Seligman a few years ago. Prof Seligman is the father of “Positive Psychology”. In the book Seligman describes a set of experiments run with dogs in the sixties. In the experiments dog A is given a light electrical shock every time a bell rings. The dog learns to associate the bell with the electrical shock, and knows the shocks cannot be escaped, it’s a fact of life. Then the dog is placed in a large crate that is divided in half. Half the floor is electrified and the bell is rung and the shock is applied. The dog could easily move to the other half of the floor to get away from the shock, but doesn’t and lies down on the floor shivering in fear.
Dog B is not conditioned beforehand and is also placed in the crate. The floor is electrified and the dog immediately moves to escape the shock.
The second dog has a sense of control over his life that the first one doesn’t anymore. Dog A has become depressed (if there is such a thing in dogs) and Dog B is full of vitality. Seligman referred to the condition of Dog A as “Learned Helplessness”.
I believe as humans working for large organisations we are also prone to “Learned Helplessness”. I am not saying that all people working for all companies have learned that they are helpless and are all depressed or that all depression comes as a result of having a job for a company. Obviously not. There are many different circumstances and many different strategies that people employ to maintain their vitality and sense of agency at work and in life.
There is an enormous sense of reward and satisfaction that flows from building something you created yourself and that you are entirely responsible for. There is a wonderful sense of freedom in knowing that you can simply take the rest of today off if you choose to do so, but that you may actually choose not to do so, for whatever reason. You might be tired and grumpy and overworked and you’d love nothing better than go to the beach and veg out for the rest of the day, but you choose not to, because something else is at this moment more important to you.
Clearly I am biased, I’ve worked for myself for more than 30 years and for the last 12 years supported those who do work for themselves. I can’t even remember anymore what it was like to be a journalist working for an editor in the hierarchy of a big corporate office. But I do know for a fact that none of the small business owners I’ve ever met show any of the symptoms of Learned Helplessness.
Why some business grow, hum along and make money and others don’t
The most successful growth strategy for your small business is found between your ears.
Owning your own business can be a lot of fun and it can be rewarding at many levels. But for many small business owners, the experience is one of frustration and confusion. You’re the first one in the door in the morning and the last one out the door at night, often you’re back at it after the kids have gone to bed and most weekends there is some admin or quoting that needs to be caught up on. The kids are growing up and not getting the attention you want to give them and money remains as tight as ever.
I know the feeling. I’ve been a small business owner for over 30 years now and since 2004 I’ve been a business coach supporting business owners to build Great Small Businesses, what I refer to as a Fun Business (with a capital “F”), you can read more about what a Fun Business is in my books and also in a number of articles on my blog such as this one here.
But some business owners break through that stage and actually build Fun Businesses. Their growth strategy works, they make money, their staff are engaged and motivated, their customers love them and they find the kind of balance in their lives that is important to them.
What’s their secret?
Over the years, I’ve met those who have broken through and those who don’t, and I’ve learnt to spot what sets them apart.
The Big 7
The business owners I’ve met who do break through and do build Fun Small Businesses, all have these 7 things in common:
1. They’ve come to understand that their own time is the most precious resource of their business. They constantly ask themselves: Is what I am about to spend time doing, the most important thing for me to be doing right now, or should I be looking for someone else to be doing it instead of me?
2. They’ve learnt that being a great plumber/ architect/ florist/ software developer/ shopkeeper is only a very small part of what it takes to build a great business based on those professions. It can help and smooth the path in the early days, but to build a Great Small Business, the owner must learn to focus on the work of the business owner, rather than the work of the business. (Business development work in other words)
3. They have found the answer to the question: Why does your business exist, what is it on this earth for and why would anybody care? And then they are 100% committed to the answer; it drives their decisions and actions every day.
4. They’ve learnt to understand and even love their numbers. If you don’t understand and love your numbers as a business owner, you’re managing your business by keeping your fingers crossed, and that is not one of the recognised management techniques. (When I talk about The Numbers, I refer to many other numbers besides the financial numbers alone. There are sales numbers and productivity numbers and quality numbers and customer satisfaction numbers, etc. The trick is to find the key numbers of the health of your business and learn to manage your business by those numbers).
5. They hire the best people they can possibly afford and they learn how to give those people every opportunity to love coming to work and to get ever better at doing their work. There is not much as silly as penny-pinching on staff. The only thing sillier is not making it your absolute focus to ensure that your people love coming to work and do great work every day.
6. They constantly ask themselves where the opportunities are for systemisation. Whatever can be systemised, is… That doesn’t mean every restaurant must aim to be a McDonalds, but if something can be systemised… Do so.
7. They know they can’t do it on their own. They find great advisers and they ask them for help. Just because you are a business owner doesn’t mean you will be an expert at all aspects of business. You can find great consultants, advisers, coaches and mentors to help you in tax and financial management, leadership, marketing, HR, IT, staff management, sales and every other aspect of business you are not 100% confident with. Great sports people all have great coaches on board.
Those are “The 7 Secrets”, that all business owners who build a Great Small Business have come to understand and strive to apply in their lives every day.
Salvation wears running shoes
Now, just so we understand each other. Accepting these statements as true, doesn’t mean you will somehow automatically build a Great Small Business yourself.
To quote a religious friend of mine: “Salvation wears running shoes.”
In other words, it’s all about what we do with our insights.
But if you do print out those 7 Secrets as your growth strategy, laminate them, hang them above your desk and make it your mission to apply them to your life as a business owner, every day, you will start to build a Great Small Business, that sustains you for years to come…