Your Business Life

Back to my favourite topic this week, that being sport, and I’d like to pick up on an interesting aspect, and I believe an entirely relevant aspect to business, concerning the behaviour of the England Rugby Team.

For those of you who have even a passing interest in this, you will be aware that England managed to achieve a fairly uninspiring victory over the Scots last Saturday, largely because our hosts seemed to be determined not to score a try against us (very polite of them). England were generally on the defence, repelling wave after wave of Scottish attacks, but miraculously not conceding penalties, which would of course have ensured victory for Scotland.

Over the past few seasons we have been used to England conceding a host of penalties, and indeed on many occasions having players sent off, and consequently we have lost more matches than we probably should have. But, most importantly, what has caused this significant transformation? The answer I believe, lies in the new culture of discipline that the new coach has brought in. He has apparently recognised that inappropriate, and indeed unruly (even illegal) behaviour off the pitch, left unpunished or ignored, has led to indiscipline on the pitch. You only have to log all the bad behaviour that has gone on both before and during the recent world cup, to see that there is a clear connection between the two. The new coach has stamped on any behaviour he feels to be inappropriate straight away, telling the perpetrators that he will not be picking them to play for England until they change their ways.

So for those of you who wish to change the way your team behave, especially one or two stirrers/trouble makers, be tough, be fair and act quickly. Set the boundaries and you will soon see a difference.

When I wake up in the morning I’m not always feeling bright and breezy. In fact I have never been a particularly deep sleeper, so I often have quite restless nights, and consequently wake up feeling quite tired still. However, instead of being grumpy, I make a choice and conscious effort to be positive and as happy as I can be. No doubt it would be a lot easier to let the depressing thoughts take over, and be down all day, but right now perhaps more than ever, it is so important to keep as upbeat as you possibly can be.

Focus on even the smallest things to help you feel better. We have just got a little bearded collie puppy called “Alfie”, and when I first come down in the morning the welcome I get can’t help but make me feel good (even if there are several unwelcome packages to clear up!).

Of course as a coach and a leader I can’t afford to be down for long, as this would hardly be seen as inspirational. If I turn up to my clients and moan about things, and how awful the economy is., I’m not going to be able to motivate them to feel positive and take the actions they need to do to move their businesses forward.

On that note it is also so much easier not to do things (take action) than to do things. Maintain the status quo for the sake of an easy life, but ultimately leading to abject failure. I’m not just talking about business either. It is so much easier not to go to a film in the evening, or not wash the car, or not do any number of things that will improve your life, but if you genuinely want to change things and make things better, surely despite the extra work and effort it may take, it is worthwhile doing them.

Times aren’t easy at the moment, but keep being as positive as you can be, take joy from the smallest of successes or good things in your life, do the things you least want to do, and I have no doubt that things will soon seem a lot better. After all spring is only a few weeks away!!

I am finding that a lot of my meetings with potential new clients are ending in the “not right now” scenario. Yes they love the concept, yes they realise they must do something different to change and improve things, but they want to wait and see what happens over the next couple of months before they actually do anything.

Now of course this is largely my fault that I can’t get them to see that they are just making excuses for themselves, but tough and uncertain financial times can have a very unsettling and unnerving effect on people, and they opt for what they may view as the safest option. But is it really?

The thing is, the doing nothing different, waiting to see what will happen option, is far more likely to lead to a bad outcome. If you realise that things are not going well as it stands, why would you keep on doing the same things? So change of some sort is likely to be beneficial, but why wait to do so. The longer you wait the worse things are likely to get.

Some people simply find the fear of spending any money takes over, and they find themselves almost like the rabbit in the headlights, terrified of what is coming, but unable to move. Naturally it is unwise to spend money you don’t have, but if at all possible, if investment is needed to make changes, or generate leads, then it is essential to do just that.

The businesses that adapt and move, are always the ones that survive, and eventually come out on top. If you look around you and see who is doing what for their business, inevitably the ones who being most innovative, finding newer and better ways of doing things, and investing in change, are the ones who are doing the best.

So are you one of the leaders, making changes, or are you still waiting for the right time?

Are you charging enough for your product or service? When was the last time you raised your prices? Do you worry too much about what others are charging or what people might think of you if you charge high rates? The difference between confidence and arrogance, and not charging enough and charging too much may be minimal, but if you get it wrong it can make a huge difference to your turnover, and more importantly, your profitability.

Often when I meet business owners, they ask me what I am charging. They then start working out my hourly rate, and complaining if they feel it is high. This immediately tells me that they worry about their image when it comes to hourly rates, and generally I can guess that they are under-charging. They give me excuses that they are not greedy (perhaps inferring that I am), and they are not that interested in money, but in reality they are trying to justify to themselves why they keep their prices down. In fact they do not have enough confidence in themselves or their product to raise their prices, because either they are not clear what differentiates them (their USP) or they listen to other people who hold them back and talk them down.

So what should you be doing? Clearly you can’t price yourself out of the market, but forget about your hourly rate and get your clients to focus on the benefits to them, and the value they will derive from your product or service.

Even in tight financial times, have confidence in what you can do for your clients, and therefore be certain that you can easily justify your prices, because (as a well known ad. points out) “you’re worth it”!

Last week was a pretty slow week for me. Nobody seemed to be contactable, a lot were still on holiday, and with all the news in the media promising a double dip recession, I have to confess that my initial enthusiasm for 2012 was rather dampened.

However, a new week quickly brings new opportunities, and I am never one to be down in the dumps for long. Meeting with my clients always gives me a boost, when I see how well they are doing, and how much they have progressed since we started. In fact last year was the best year ever for 3 of my clients, and I met a new client yesterday, who also said that he had had his most successful year. In fact over the last two days I have had numerous very positive communications, and I expect January and February soon to be filled with plenty of new business. As always positive thoughts attract further positive results, and it is no surprise that things have quickly turned around.

Of course there will still be plenty of trials and tribulations ahead, but we never allow ourselves to wallow in self pity as this will always keep us bumping along the bottom.

In talking with numerous different business owners, most of them still feel fairly upbeat about the future, but all complain that the media seem determined to talk things down (as ever this can become self fulfilling).

So let’s stop these doom and gloom merchants from bringing us all down, simply because it is good for their news. The more of us that keep positive, continually talk things up, and keep encouraging each other, then we are more likely to create more business, and ensure that 2012 is a really good year.

So Christmas is over, and I hope you all had a wonderful time with your friends and families. I always find it very hard to get started again after a nice long break, especially when I have really relaxed and enjoyed myself so much. Nevertheless, as for all of us, we need to hit the ground running in the New Year, and possibly more so than ever this January.

So how can we ensure that it is a “happy” new year, and indeed a good one throughout the year? Not easy bearing in mind the economic forecast, and the doom and gloom that the papers and television seem determined to spread about as much as they can. So it is all about believing in ourselves and our businesses, setting ourselves clear and specific targets, and knowing what we must do on a daily and weekly basis to achieve our goals.

It is no good keeping your head down and waiting for it all to go away. If you take that road, by the time you put your head back up again, there is every chance you will no longer have a business. For those of you regularly read my blog you will no doubt have written your goals (financial and otherwise) for the year, and will therefore now be in a position to plan how you are going to reach them. Redouble your efforts this year, not necessarily by working harder, but certainly by working smarter. Set yourself mini-goals (little stops) to achieve your end goals. For example I have determined to improve my conversion rate by 15% this year, so now I must plan the best way(s) to make that happen.

So make sure you do lots and lots of little things, take plenty of actions, and you are far more likely to reach your goals, and indeed have a Happy New Year.

Christmas is fast approaching (in case you hadn’t noticed) and I have to say I am greatly looking forward to it.
One of the main reasons I started my own business was to be able to spend more time with my family, and watch them grow up, and of course Christmas is traditionally one of the great times for all that. Also this year our youngest has finally got beyond the stage of believing in Father Christmas, so we no longer have to stay up to some unearthly hour, and try to deliver a stocking without waking her up (nigh on impossible in any case, as she seems to sleep with at least one eye open on Christmas Eve)!

So it is a time to unwind, a time to reflect, a time to plan, but for all business owners, to remember why you started running your own business. For many, or perhaps most of you, one of your reasons may well have been like mine. Have some family time, get away from the business for a while, and really relax and unwind. I know that we are all “under the cosh” at the moment, but nevertheless, don’t lose sight of this, and make sure that you give yourself a break this Christmas.

So no business advice this week, except to switch off and forget it for a week or so. I, no doubt, will eat too much, drink too much, and have great fun with the family, though I am wary of being made to join in the dance game on the Wii. Apparently I will be made into an object of ridicule by my children – no change there then1

Have a great Christmas, and let’s start 2012 refreshed with a really positive outlook for the future.

As we wind down to Christmas perhaps now is a good time to reflect on the year, acknowledge what has been good and bad about it, decide what we have learned from it, and make sure we change things, and don’t make the same mistakes again next year.

The breakfast club I belong to (The Business Café) spent a very useful and interesting session this morning discussing these things, and I certainly came away from it feeling extremely positive.

The thing is, it is so easy to forget the good things, when everything seems to be gloomy all around us. In fact as it turned out, the majority of us had a lot of positive stories to tell, and we generally felt that more good things lie ahead for us in the coming year.

Equally well we shouldn’t just ignore the bad things, and hide them away, or there is more likelihood that we let them happen again. Facing up to these, understanding the issues, and resolving to learn from these mistakes is more likely to ensure that our businesses perform even better next year.

The other recurring theme that came out of the session, was to live for the moment, and to make sure that our businesses are giving us what we want, not being tied to them and letting them drag us down. I know I have often talked about the need to “enjoy the journey” and make the most of every situation, but perhaps now more than ever, we need to focus on all the good things that happen to us every day, however small they may seem.

So keep focusing on the positives, and more good things will come your way.

Cash flow is one of the biggest issues in all businesses right now. Of course cash flow should be something we all keep a close eye on at all times, but when times are tough as they are at the moment, people hang onto their cash for as long as they can.

Traditionally this has always been an issue between big and much smaller businesses, whereby the bigger company tends to dictate how and when they will pay. A grossly unfair situation no doubt, but the smaller companies are so desperate to hold onto the big account that they let it happen, and can sometimes find payment being delayed for 3 or more months.

But now, it is not just the big companies holding back payment. It goes right through the whole economy, and naturally enough this is exacerbating what is already a very tricky situation. If the money isn’t flowing or circulating quick enough, the knock on effect down the line can be devastating. If every link in the line, delays for an extra 3 or 4 weeks, by the time the last person in the queue gets paid, it can be too late.

So what should we all be doing about it? Ideally we should all be paying on time, but that I would suggest is unrealistic for many or even most of us. But to cover our own backs we need to keep constantly watching and checking our accounts. As soon as a customer becomes late in paying we should be chasing them for their money. Always keep contingency plans, and keep an eye out for any warning signs that one of your customers is likely to go bust.

Above all, don’t ignore the warning signs. If it doesn’t feel right, do something about it as early as you can. If you don’t you could be the next one to suffer.

This week I’m going to become a bit political, and at the risk of portraying the “grumpy old man” side of me, thought I would leap onto one of my favourite soap boxes.

I have never been a fan of being “European” and trying to morph all the different races with their wonderful, exciting and colourful cultures into one big lump of sameness. The Common Market I can see is a good thing, but to take it any further than that is unnecessary, and as it is beginning to turn out potentially divisive, and possibly even ruinous for many. I never trust people who tell me I “must” do something, or I “can’t afford not to”. Generally what they mean is they need me to do it, or that they can’t afford for me not to be part of it. This is exactly what is going on in the E.U. Of course the politicians, the key movers and shakers in industry, and many of the biggest corporations want to maintain the status quo, or even integrate further, because there is a huge trough of money, which all these people are able to stick their greedy noses into, without any fear of comebacks. I noticed recently that the E.U. accounts have for the 17th year in a row, been left unsigned off by the auditors, presumably because the numbers simply don’t add up.

I’m not an accountant, but I’m guessing that any other business that did not have their accounts signed off for more than a couple of years would be considered highly dodgy, and not one to be associated with.

If we then look at the majority of businesses and individuals, how do they benefit from being part of the E.U? I don’t believe that many small or medium sized businesses gain anything from it, and more likely it generally makes life a lot harder, and increases their costs. Look at the countries in Europe who are currently doing best. Most of the Scandinavian countries, who have never signed up to more than just the free trade within the “Common Market”. Of course there is always more to it than meets the eye, but on the face of it, do we really need to be part of the E.U?