Highly Chilled Habit #5: Be Clear

clarity

The 7 Habits of Highly Chilled Small Business owners

This is the fifth article in a monthly series on small business owners I have met or worked with over the years who developed beautiful successful businesses.

Stories of successful real business owners

In 35 years of doing business and working with some of the most inspiring people I’ve ever met, I’ve learned a very important lesson: Success in small business starts by building great habits. I call these practices the “7 Highly Chilled Habits” and I find they’re best illustrated with the stories of real business owners who I happen to have had the pleasure of coaching.

The articles are based on my E-book, The 7 Habits of Highly Chilled Small Business Owners. All of my books and other resources are available for free here

Habit #5:

Highly Chilled Business Owners Say "No" a Lot

be clear business habit 5

In order to build a Highly Chilled business, you must have a succinct, one-sentence answer to the question: “Why does your business exist and why would anybody care about that?”

BTW, You can read up on Chilled habit #1: Be dependable here

Getting Clear

In the early days of my building business, I basically tried to take on any building job that came along for any client that walked past my door. I was inexperienced in business, and I figured that we had to achieve at least 2 million dollars in turnover if I was going to have enough money left over. The upshot of this was lots of frustration and heartache (for myself and some of my clients), and very little money.

Luckily, I learnt from my mistakes. I realised what we were good at and what we weren’t so good at. Some years later, I decided to specialise and focus on renovations to old terraced houses in Sydney’s inner city. I had an affinity for them. I also understood the challenges and opportunities. We developed an expertise in these projects and offered a unique package of building and design services aimed at the owners of terraced houses.

Building Up the Courage

Picking this niche started turning my building business around. However, the biggest turning point came when I built up enough courage to start saying “no” to building projects that fell outside of our narrow speciality.

I became happier, as did our customers. We started making money. We even went well beyond the turnover target I had dreamt about early on.

That was the first time I understood how important it is to be able to answer the Big Question of Small Business: “Why does your business exist, what’s it on this earth for, and why would anybody care about that?”

Our Purpose (with a capital “P”) in the building company became: “To make the process of renovating your terraced house a joy.”

Be Focused, Like Jo

In the past 12 years, I’ve helped many small business owners become completely clear about the Big Question and then watched them build Highly Chilled small businesses. One of these people is named Jo and she has built a Highly Chilled web development business. This is her website.

When I met Jo, she was struggling on many fronts. She worked day and night, but she still made very little money. Essentially, Jo was in the same place I’d been in the early stages of my building career. She felt frustrated and stressed because she took on every job that came up.

Over a 6-month period, we set about discovering her strengths and weaknesses, what gets her out of bed in the morning and who her perfect clients are. We ended up with this Purpose statement: “We make it easy for companies to do business online.”

The day we nailed that statement, things started to turn around for Jo. It suddenly became easy to decide where to direct her focus, which opportunities to say “yes” to and most importantly, which to say “no” to.

6 months later and Jo is still working hard, but she’s having fun, her customers love her and she’s making money. Jo’s is a Highly Chilled business and Jo is a Highly Chilled small business owner.

Your Homework (The Chilled Kind)

Here’s a short exercise you could carry out to start the process of making this habit your own.

Practice Highly Chilled habit #5:

Grab a coffee or a wine and a piece of paper and pen. Brainstorm 50 sentences that start with the statement: “In my business, we strive to X”. It doesn’t matter if some of the sentences you write down feel silly. Simply scribbling lots and lots of options will help you get closer to the Purpose of your business.

Are you a small business owner who’s feeling the heat? Explore Highly Chilled habit #6 here as soon as it is live on my blog here 

More on this topic:

The Purpose of Business Podcast

boy with megaphone

 Subscribe in a reader

 
Download this episode (right click and save)

Tell the world:  We’re on a Crusade! boy with megaphone

The podcast of the Small Business Masterminds Foundation Webinar on the Purpose of your business (with a capital “P”)

Small business Masterminds Foundation webinars are held every second Thursday… for Free… Go to this link to register for the next one now.

The Purpose of Your Business

Have you ever asked yourself:

Why does your business exist

and why would anybody care?

If you enjoy this article click here to get a free copy of one of my “The Ten Truths” books for business owners

What does it take to make a success of your small business… how can you avoid adding to those frightening statistics about failure rates of small business?

In this series of articles and associated webinars and workshops by Roland Hanekroot you will learn the basic concepts and get the knowledge need to become a successful ‘Business-Owner’, as opposed to a struggling ‘Business-Doer’.

Format

The format of each episode in the “First Steps” series is to explain the basics of the topic and then in line with the principles of New Perspectives business development programs, to suggest some “First Steps” you can take straight away to put the knowledge into action.

The Purpose Question

In the fourth of these articles we’ll look at Purpose and ask: What is the Purpose of your Business?

conscious-capitalismContrary to what most people think, the Purpose of your business is not to make lots of money.

As John Mackey, author of the book “Conscious Capitalism” (More info here) and founder of “Wholefoods Markets” says: “Thinking that the purpose of business is to make money, is like thinking that human beings are on this earth to eat. Eating allows us to fulfil our purpose in life and it is the same for business. Profit allows Business to make good on its Greater Purpose”

Shame really, because life was so much easier when us business owners could just focus on “maximising shareholder value”, but in the 21st century we have to rethink the Purpose of business.

Allow me to illustrate what I mean with one of my Business Bedtime Stories.

A Business Bedtime Story

(The ‘Business Bedtime Stories’ are real world case histories that illustrate the different aspects of business that the various New Perspectives Business Coaching programs deal with. See it in pictures here)

Once upon a time… a long long time ago in a country not unlike Australia… John owned a cornershop in the inner city of Sydney…

Running a cornershop in the inner city is hard, there are corner shops everywhere and then there are the 7-Elevens and city express stores and even Woolworths and Coles get in on the act from time to time.
The hours are insane, profitability is minimal and the Competition is just crazy.

John often caught himself thinking: “How can I escape this trap of deadly competition with my neighbours, so we can all have a better life?”

Working with me as his business coach, John came to realise that the only way to escape the competition trap was to make the competition irrelevant.
supermarketThe way to make the competition irrelevant is by making yourself truly unique, by creating something that is completely different from everything else out there.

And so he did, John decided to become “The Best Small Supermarket in Sydney”.

The day he made this decision, everything changed. Sydney has great corner-stores, handy convenience stores, big Coles and Woolworths, sexy delis and grocers, but there is only one “Best Small Supermarket in Sydney”.

2 Years later, John opened a second store, a year after that his third and a year later again his fourth. John’s customers love him and love his stores, profits are many times what they were 3 years ago and John is creating something really special in the Inner City of Sydney.

And John and all his satisfied customers lived happily ever after…

The End

Lessons from John:

So let’s have a look at what we can learn from John:
First: Competing on price is not a strategy for sustainable success of your business.
Second: In order to avoid having to compete on price, you need to be clear about the Purpose of your business.
Third: The Purpose of your business has to relate to your customer’s needs.

The Problem with Profit

start-with-whyFocusing on profit as the Purpose of your business, has one major flaw: Your customers have no interest in supporting you to make money. They are quite happy for you to make a profit, but only after you have met their needs first.

There is a beautiful video on Youtube by Simon Sinek (watch the video) another bestselling business author and management guru. In the video Simon states that “People don’t buy What you do, they buy Why you do it”.

In other words, your customers want you to explain to them why your business exists, what it is on this earth for and why they should care.

In working with my clients to find the deeper Purpose of their business, I always ask them those questions first and invariably I get the following three answers:
1.    We do great work
2.    At a great price
3.    And we give great customer service

Undoubtedly true, but first of all your customers expect those three qualities as a bare minimum, a starting point and secondly, your competition makes exactly the same three claims. Have you ever met a business owner who proudly claims to produce and average product at an average price with average customer service?

This is why you must find the deeper Purpose of your business.

Here are some example of deeper business Purposes:
1.   An Architect’s business: Architecture that Inspires
2.   A furniture factory: The Most Beautiful Tables in the World
3.  An Electrical contracting business: You’re in Safe Hands

table If you were in the market for a table, wouldn’t you like to check out the furniture factory at number 2? Of course you would… I know I did.

You might be interested to know that all three of these businesses have been wildly successful and bucked their respective industry trends for years now.

How do you find it?

The process of finding and developing the deeper Purpose of your own business starts with asking yourself the following 7 questions:

1)    What are my 5 most important personal values, as they relate to business?
2)    What core beliefs do I hold about my business and industry?
3)    What do I get really excited about in business; what do I get out of bed for; what am I passionate about?
4)    What do I want my business to be the best in the world at?
5)    Who are my ideal customers?
6)    What do my ideal customers need or want that they are not getting at present?
7)     How can I address all 6 questions above and develop a long term sustainable, profitable business model around that?

I encourage you to involve others in brainstorming these questions with you. Working your way through them will put your business on an entirely different footing, I guarantee it.

This is the topic we will be talking about at the November Masterminds ‘live’ workshop as well as the Masterminds online webinar, both on 14 November. If you would like to attend either the webinar or the workshop, register here

Your First Steps:

As mentioned at the start of this article, here are some resources and actions you can take right away, that will get you started on implementing the principles I discussed.

Go to the resources page to find the following resources that will help you clarify your Purpose and Passion in your business:
1)    The Simon Sinek Video about the “Why” of your business
2)    An article from business guru Jim Collins about the importance of “Vision”
3)    A worksheet and tool I have created to help you step through the 7 questions above.

Beer O’Clock and Toilet Paper: What’s All That About?

So it’s beer o’clock and I want to talk to you about toilet paper. Have I had a few too many already? No! I’ve just been reading Mike Michalowicz’s book, ‘The Toilet Paper Entrepreneur’ today.

Mike says, “Owning a business is not about working your arse off for the sake of trying to squeeze out a living. It is not about making tons of money at the expense of losing tons of life. It is about maximising life, bettering your life and the life of others, which ironically fattens your purse.”

This makes sense to me; you too? I recently heard an American marketing guru say it another way, “The purpose of business is not to make money; that would be like saying that the purpose of a human being is to eat food.”

Sure we need food or we can’t fulfil our purpose, and in the same way a business needs to make money otherwise we can’t deliver on the purpose of the business.

But (and this is the clincher) the purpose of the busines is something much more important than making money, and it’s different for every business on the planet.

So from beer o’clock and toilet paper we actually ended with a pretty profound thought. Cool, huh!