Growing Your Small Business – Working on your business and not in it (well, eventually)

If you’re a small business owner, then chances are that you’ve heard about the importance of working on the business and not just in the business. 

But it does take time, self-awareness and some careful planning to reach this “higher consciousness” state in the evolution of your small business.

In the early days – it’s all about YOU

In other words, when you first establish your business you tend to be working in the business. You’re doing a lot of the operational work yourself – whether your business is plumbing or printing or baking or graphic design or hairdressing or selling insurance. It’s usually a frantic time, characterised by long hours and with you wearing a lot of different hats to help keep your expenses to a minimum.
 
In this start-up infancy stage, your business is typically dependent upon your technical skills and perhaps many of your customers only want to deal directly with you …... This might be because they see you as the “expert” and the one who is best suited to solve their problem. Or maybe because of the good history and relationship they have in dealing directly with you. But the problem with this business model is that you can’t afford to get sick or go on holidays - otherwise sales and revenue slow down without your presence.

However, it’s so easy to get stuck in this stage without realising it – ‘cause you’re so busy. It just seems like there’s not enough time to step back, take a deep breath and think about where you’re heading. Your focus gets stuck in just churning the work out and meeting the next deadline. You’re grateful there’s plenty of work – even though it can be overwhelming. But the reason it’s so overwhelming, is that so much of it remains reliant upon you.

Shift from being a “doer” to being a manager

Working on the business is all about building something that becomes less and less reliant upon your presence. In other words, over time you will have developed the right processes and systems, and recruited the right staff, so that the business can operate without you. It can sometimes take a while to convince customers who are used to dealing with you that they can trust the expertise of other people in your team – but again you ease yourself gradually out of being central to these client relationships and sell your customers on the experience and credentials of your staff.

Eventually, as you continue to coach and mentor your staff, you find there is no longer the imperative that you yourself be performing the operational or technical duties. You encourage your staff - who are becoming more skilled and confident - to take on more responsibility and make more decisions themselves. The investment you have made in the growth and development of your staff becomes one of the foundations supporting the growth of your business. Another foundation will have been your investment in learning how to manage and motivate staff.

You transition yourself to being more of a manager who oversees the planning, organising and timely completion of wok by your team. As you release yourself of operational duties, you then have more time to focus on business development – generating new business through expanding your customer base and developing new marketing plans (and possibly even new products or services). It should be said that not all business owners are able to “let go” of operations .... Some have a deep fear of losing control that prevents them from empowering their staff to step up and show what they are really capable of.
 

One small business owner, who started his business with one partner in the building industry and ended up employing more than 20 staff said this to me “ For me, learning to let go took years ….. It began by slowly letting go of the need to know all of the details ….  However the real impetus came when my doctor told me quite firmly one day that I had to take immediate steps to lower my high blood pressure, much of which was thought to be caused by stress. Then I realised  that my health was going to seriously suffer if I didn’t find a way to delegate and trust”

Grow your staff, so you can grow your business

Lance Hampton, CEO and one of the Directors of Hoepners Supply Chain Solutions shared some thoughts on this theme of growing your business through people.

“One of Hoepners greatest strengths is the quality of our people. Our employees become part of the family as they grow their careers within the company. We know it is their dedication to service and quality that keeps our clients coming back for more.

The care we have taken in recruitment and then investing in the training of our employees has been one of the key reasons the company has seen such amazing growth - but this doesn’t happen by accident. It is our company policy to promote wherever possible from within and to mentor employees to work their way up to supervisory and management positions. They are provided with career guidance and professional development to help them fulfil their potential.  This is why we have a history of retaining high quality employees, who are attracted by the rewarding work environment combined with the competitive pay structure the company offers.

My experience has taught me that for a small business to grow and be successful in a sustainable manner, it must have a strong ethical core that is based upon valuing its employees. Having said that however, let me also add that your relationships with suppliers and customers are equally critical. A business must cultivate collaborative relationships - both within, but also with trading partners. Only when all of the parties are achieving their goals and outcomes will relationships endure”

Engaging specialists in your business 

So let’s assume that you have recruited and developed the right people – and that you have learned to trust them ……  Now you should be able to start enjoying some work-life balance, spending more time with your family, because the operational work is no longer so all-consuming for you.

At this point, if the business continues to grow you might perhaps elect to contract out some of your marketing to “experts” – seeking advice on how to improve your online marketing initiatives, lift your search engine rankings, better engage with your customers through the use of social media and build alliances and partnerships with allied businesses. Alternatively, you may even do the calculations and assess that it will be more cost-effective to actually employ someone to head up the marketing function within your business.

Consistent, stable growth allows you to employ specialists who are now respectively looking after the operations, the sales, the finances and the administration within your business  

             

Grooming another to be “general manager” of the business

Surrounding yourself with good quality capable people who you trust, and whom you ensure get to share in some of the rewards of the growth of your business, is one of the keys to sustainable growth. A fair reward system for good staff is essential if you want to motivate your employees and retain them over time. So too is developing clear, efficient and documented procedures and systems that underpin the operations of your business

But developing a business that can genuinely function independently of you requires that you eventually start to groom a successor who can lead and manage the future of the business moving forward. This will ideally be someone from within your organisation whom you have identified possesses the right type of leadership capabilities, combined with the necessary drive to continue to grow the business. But you may need to conduct an external search to locate and attract the right person for this “general manager” role.

A company director who is no longer a manager

And once you have all of these building blocks in place – then low and behold there comes the day when you can enjoy the fruits of “semi-retirement”. As a hands-off director of the business, you have a capable general manager who is running the business and simply reporting to you.  You might perhaps continue to be involved with formulating and overseeing business strategy (perhaps thinking about franchising your business) – but you are no longer involved with the daily, weekly or monthly operations of the business.

Congratulations – your infant has grown into a young successful independent adult making their own decisions - although still consulting with you occasionally for a little advice and guidance during troubled times. This wouldn’t have happened unless you had learned how to delegate and could recognise when to start letting go.

Stepping back from the business

In closing, the point I hope you take away is this. In the same way that a parent can be guilty of holding on to their kids too tightly, the same mistake can be made by the small business owner.

Hold on too tightly and your business won’t grow. It will remain forever limited by the extent of your own capacity and your own expertise. But once you start giving good people in your business some genuine freedom to make decisions and take action – guiding them in their learning and judgement, then you really are building a strong foundation for your future business growth. What’s more, it’s likely you’ll be able to enjoy it too.

 © Copyright 2013. Brian Carroll is the founder of Performance Development - a leadership training and management coaching company based in Melbourne, Australia.

Small business giving back to the community

Recently I posed a question in a small business online forum, "How is your small business giving back to the community.?"

Quite frankly, I was staggered and inspired by the passionate responses to this question and the examples of how so many small businesses are providing both financial support as well as physical assistance to charities.

• It's not just about the bottom line

It was uplifting to realise that many small business owners have actually based part of their business model on a commitment to giving back and it shows that it's not just the bottom-line that motivates people in small business (or for that matter, some of the corporate world either).

Some of these charities that small business owners support are reasonably well known - World Vision, Salvation Army, the Smith Family, Red Cross, UNICEF and others. But there were many examples of other charities supported by small business that are doing outstanding and courageous work, that perhaps fly "under the radar" in terms of their public profile.

I'd like to share with you just a few of the examples of small businesses that are contributing to some lesser known but worthy causes ....

1. Matchboard

 

Sharon Melamed is the founder and owner of Matchboard, a Sydney based on-line business that brings together companies who are wanting to outsource their business processes or back-office functions, and matches them with appropriate suppliers. This is what Sharon had to say ....

 

"We have thrown our support behind Good Return, a unique charity not many people of heard of, but which helps women in impoverished countries set up small businesses through loans (usually just a few hundred dollars). 99% of loans get returned - an incredible success rate for small businesses! ... Through Matchboard's massive network of buyers and suppliers, we have promoted Good Return to the extent that they have received more than $100,000 through our connections.

 

One of the reasons that my business has elected to support Good Return is because I can see exactly where my money is going, which makes it a very personal form of giving: you can literally pick the profile of a woman and her small business plan on the Good Return website, and know by name precisely who you helped and how. To think that a couple of hundred $ loan can make such a difference to the lives of a single family in Nepal or the Philippines is very moving. 

 

Good Return place a big emphasis on training. Aspiring small business women in these poor countries learn skills, such as how to write a business plan and manage cash-flow, thanks to Good Return. So they not only facilitate micro-finance but also deliver education, which is perhaps the reason they get almost all loans repaid"

 

2. Baby Jewels

 

Jennifer Gregory is the owner and founder of Baby Jewels, based in Queensland. "At Baby Jewels, we give $1 for every sale over $20 to Mahboba's Promise which is an Australian charity helping women and children in Afghanistan with accommodation, food and education. Take care of one woman and she will take care of 11 others in Afghanistan!"  ......                                         

 

I asked Jennifer to explain a little more about why she decided that giving back needed to be such a core part of her business and also why she selected her particular charity......

 

"The Internet is a wonderful, amazing resource. Every day as I work in my comfortable third bedroom which is now the office of Baby Jewels, I am made aware of the struggles going on in many parts of the world, merely to survive. It's patently obvious that those of us able to run small businesses in first world countries, are the lucky few. 

 

My daughter is a computer programmer with various specialties and she built my website. The subject of "giving back" came up in one of our business planning discussions. Yes, I definitely want to do that, I decided.

But where to start, to find a worthy charity? Because there are so many and all are worthwhile.  One little business can only help one little charity so we looked for a charity working in one of the saddest parts of the world, one which helped its most marginalised members of that population. 

 

That's when a friend told me about Mahboba's Promise, a charity for which she'd set up monthly deductions from her bank account. It didn't take long before we discovered Mahboba's Promise fulfilled our desired criteria.

Mahboba's Promise is an Australian charity run by Mahboba Rawi, who grew up in Afghanistan. Mahboba knows what it is to flee her home, to walk 10 days over the Kyber Pass to escape imprisonment for leading a student demonstration. After 2 years in a Pakistani Refugee Camp, she married and came to Australia, with a desire to help the most marginalised people in her home country: The women and children, particularly widows whose life in Afghanistan is particularly difficult.

 

When Mahboba's Promise first started working in Afghanistan, the needs of the widows and orphans were so basic that their work was mainly welfare orientated. Offering food, clothing and shelter to keep people alive was our primary goal. But as time went on, various projects were developed. Currently Mahboba's Promise is raising funds for community centres, a school for girls, a medical centre, a leadership training project, a permaculture project and an embroidery project.

 

The practical help aspect for women and children in Afghanistan appealed to me and Mahboba's Promise became Baby Jewels "Giving Back" project.

 

3. Kapow's Cleaning Services

 

Kelly Powell is the owner and co-founder (with her husband James) of Kapow's Cleaning Service, based on the Sunshine Coast of Queensland. Her commitment to giving back is reflected in the hiring practices of her small business. She is simply an amazing woman....

 

"At Kapow's, we give back to the community a little differently. I actively hire people with challenges and work closely with agencies like Epic and Steps to ensure we have the right support available to set up the staff we hire for their success. To date, I have been only impressed with the work ethics and effort that my guys bring to work every day.

 

I am incredibly proud to say that we will build off this platform and I know it will be successful and fulfilling for all involved. In fact, my 3 year goal is to have at least 40% of my workforce sourced from these agencies. I think it is absolutely critical to involve as many people with challenges as I can, as not only does their self worth and confidence soar...but I get genuine ambassadors representing my business proudly and effectively.

 

I hire people without challenges as well and I set the expectation that if they can't be flexible and support people in general...they can't work for us. I can proudly say that we have an incredibly close team who focus on each others strengths...not weaknesses.

There is also a misconception by employers I think, that people with challenges are hard work. I have not found this to be the case. There is full support from the agencies I go through and the people I have hired are driven and enthusiastic. It also makes good financial sense as there are financial incentives offered by most of these agencies which for a small business is gold.  ..... What more could you want!

Obviously I could bang on about this topic for ever, because quite frankly it is my number one passion...and it all simply stems from my belief that life where possible should be fair......And given that I control the decision making in my business I think employing people with challenges that other employers might not look at, is about as fair as you can get.

I'd like to leave you with one last thought.  About three weeks into his new job, I asked an employee how he was going and what he thought of his job. He had been unemployed for a considerable amount of time (in fact I doubt this 40 yr old gentle giant has ever had a long term paying job)

Anyway he stood very tall and said that he was proud of himself. He has changed his diet and is going for walks so he can be fitter so he can do his job better. I said that was great! I knew he lived with his elderly father so I asked him what his dad thought. He stood tall and proud again and replied "my dad has called all of his friends and told them that his son had a real job where he gets paid".

That for me was close to the best moment ever...I still get teary thinking about it...and that was the moment when I really realised what it's all about."

 

4. JustMums

 

Rachel Perkins is the owner and founder of JustMums Recruitment based in Melbourne and this is what she had to share .....

 

"In our business, very early on we placed a priority on "giving back" and we took care to identify two charity partners that we wanted to work with. We donate a percentage of our profits, provide them with volunteers and happily promote their organisations through our wide network to raise awareness (and hopefully some additional funds to support their work) - We respect, admire and appreciate the work that so many of these wonderful charities and NFPs do within the community. I would encourage every small business to consider partnering with a charity of choice"                                 

My sincere thanks to Kelly, Jennifer, Rachel and Sharon for sharing their stories ...... Your contribution inspires me to be more committed to the principle of giving back through my own small business

So, what are some ways that your small business might give back?

1. Agree to provide work experience or work placement to students
2. Volunteer your business expertise and offer to go on the board of your local not-for-profit
3. Sponsor or support your local community association, such as Lions Club or Rotary
4. Donate goods or services for school and community fundraisers
5. Become a mentor to other new business owners or young people in the community
6. Support local small businesses by using local suppliers
7. Offer a scholarship for disadvantaged youth, and subsidise their school books and fees
8.  Give your staff some time-off to volunteer at a charity of their choice
9. Keep a collection tin for donations to your favourite local charity on your front counter
10. Have a look at our Charities page and see if something appeals to your heart

In closing, for those of you who have perhaps been hesitating about what you might do, then the words of Malcolm Bane might be worth considering ....
“If you wait until you can do everything for everybody, instead of doing something for somebody, you’ll end up doing nothing for nobody.”

I would invite you to share your story with us .......

 

Copyright 2013. Brian Carroll is the founder of Performance Development - a corporate training and coaching company based in Melbourne, Australia that delivers management training and leadership development services

What help and support is available for small business?

Over the years, I’ve found that many people thinking of going into small business and even those already running a small business are quite often unaware of the government help and support that is available to them.   
 
I recently spoke with some of the folks at Business Victoria and asked them some questions about how they can help, in terms of making available either resources, small business grants or education. Here’s what they had to say …..
 
How can Business Victoria support people who are looking at starting up a small business in Victoria?
Business Victoria is the Victorian Government website that helps business grow by making compliance easier, solving problems and improving business management skills. We offer a range of services to help people who want to set up a successful business

Tools and templates -  planning is important to run a profitable small business. We have a business plan template  and a range of other supporting templates to go with it including a Financial statements template, Marketing plan template and many others
Workshops -  we provide workshops specifically for people starting a business. People can also brush up on some of the core skills needed for running a business - such as marketing, finances or getting online
Mentors - when people are first starting out in their own small business, getting expert advice can save them from making expensive mistakes.  The Small Business Mentoring Service is a low-cost way to get advice from a mentor who has the skills and knowledge you need.
 
What about people already running a small business, how can Business Victoria help?

It doesn’t matter how long someone’s been running a business, there are always problems that will crop up and even sometimes growth opportunities that you’re not sure how to deal with. Here are some of the resources that Business Victoria has available to help small business owner’s deal with the most common challenges of running a business …

Growing your business: the Grants and assistance finder has support for developing your business. It includes the Grow your business program which provides businesses with the opportunity to develop a comprehensive strategic plan for future growth. The marketing and online sections also have some great templates to help, including marketing and content plan template
Cash flow problems: most small businesses in Australia say chasing payments from customers is their biggest cash flow problem. We’ve put together a Debt recovery process and templates which includes Financial policies and procedures for your staff, email scripts and phone scripts
Dealing with employees:  your staff can make or break your business.  From finding the right staff to making sure they’re as productive as possible, we have tools and tips to help in our Staff management section.
 

What do you think is the biggest mistake to avoid in the start-up phase?

In the early stages, the cause of many small business failures can be traced back to a failure to adequately research what their customers want.

However, one example of where early market research was done well is that of Melbourne online start-up Tweaky, who won Best Start-up Idea at this year’s Start-up-Smart Business Victoria awards. They reached profitability just nine months after they went liv  e.  

'It sounds obvious, but find out what your market really wants. Engage your customers early and often, and ask for feedback,’ says Tweaky co-founder Ned Dwyer.  Business Victoria offers a simple guide for Do-It-Yourself market research.

For more tips from Ned and to learn more about the experience of other small business owners, visit Tips and case studies section.  

What about people from overseas who may be looking to start-up a small business here in Australia?

Victorian businesses are the most confident in Australian for the year ahead, according to a recent Sensis survey. (Naturally the people at Business Victoria want to encourage investment in their state) With the help of Invest Victoria, they say you can set up a business in as little as two days! Their services include finding sites and assisting and supporting with approvals, linking with local suppliers and providing you with a client manager in one of 16 international business offices.

Thanks to the staff at Business Victoria for their time in contributing to this post. Hope the links and resources prove useful to you.

 
Copyright 2013. Brian Carroll is the founder of Performance Development - a corporate training and coaching company based in Melbourne, Australia that delivers management training and leadership development services

Small Business - Everything you wanted to know (well, at least some of it)

Here's some of the questions people often ask about small business ....
.

1. Is small business for me?

Depends. You need to have passion for what you're going to be doing - this makes some of the long hours easier to bear. The first couple of years can be quite a rocky road. Something like half of new small businesses don't get past this period. You need stamina.

It's not enough to have a great idea. You've got to do your market research ..... What's the existing competition like? What would be your point of difference - can you do things cheaper, better or faster in some way, compared to the competition?

And, you've got to have the right mix of skills. As Michael Gerber says in his classic book, The E-Myth, there's no point going into business on the basis of just having strong technical skills (for example, you're a highly capable mechanic, or plumber, or gardener). You've got to be able to sell and market your services or product. And you've got to be able to plan and organise efficient completion of the work. Plus you've got to be able to control your expenses and manage a budget. Needless-to-say, being self-motivated is essential.

2. What are some of the mistakes new small business owners make?

A common one is neglecting to have adequate cash reserves in place. In many small businesses, cash flow can be somewhat erratic. It can take quite a while to learn the cycles of your business, so that you can anticipate the ebb and flow of your revenue. If you're not making sales, then you need to draw upon your cash reserves to meet your running costs (power bills, rental, equipment and possibly labour wages).

Another common mistake is not clearly defining your target market - and then not listening to your market. In other words, too many people have gone into business thinking they've got a great product or service, but not seeking feedback from people they are targeting as customers. What ultimately determines whether your business generates sales has less to do with what you think about your product and more about what your potential customers think. Too many entrepreneurs fail to seek proper market feedback to guide them in the design and development of their product or service.

A mistake made by many small business owners when they are in the growth phase of their business  occurs when they start to hire staff for the first time. Too often not enough probing is done during the interview - and the inexperienced business owner can be "seduced" by the applicant who is simply a good talker, but not necessarily possessing the required capabilities to do the job. Enormous damage can be done to the brand of your business when you recruit the wrong person. Get some expert advice before you start hiring staff - there's a nice concise article you might find useful Hiring Tips for Small Business But even if you happen to recruit the right staff member, then you've also got to know how to train, manage and motivate staff

3. But what if I fail and it all goes pear-shaped?

Yes, there is a risk that the business may not work.  But there are strategies you can adopt to help manage the risk.......
i) Get advice from experienced business people before you make any significant financial investment
ii) Trial the business on a part-time basis before you quit your job
iii) Regularly put aside some of the profit, instead of pouring it all back into the business. Use some of your profit to build up your reserves

And when you are considering the risk, remember to also think about what you stand to gain if you can find a way to make it all work. By all means take care, do your research and do not be reckless. But try not to let a fear of failure cause you to just stand still and never move forward. As Thomas Edison wisely said "The person who never failed, never learned anything". For more excellent tips on dealing with this, have a look at Overcoming a Fear of Failure

There will inevitably be many times when you are running a business that you recognise you've made a mistake - perhaps for example an error of judgement when you have responded too slowly to changing market trends. Or maybe you realise you recruited the wrong person. Or you paid too much for some plant or equipment. Hopefully, you don't make the same mistake twice. It is a measure of your mental toughness that you bounce back, seeking firstly to fix the mistake and repair any damage. Then secondly, it's about putting in place whatever is necessary to prevent recurrence - sometimes this may mean correcting procedures or processes in the business.

4. What should I name my business?

Some small business owners elect to combine their family name with the nature of the business, such as Taylor's Gardening Service, or Murray's Garage, or Mitchell's Plumbing Solutions. Other owners elect to go for something that is a bit quirky, such as Google or Twitter ..... believing it will be more memorable.

Whatever you choose, you can register it online with the Australian Securities & Investment Commission (ASIC) - just check with their data base that the name you desire has not already been registered.

 5. What's the best way to promote my small business?

For a start, get the basics right ...... deliver a great product or service, at a good price, consistently. If you can do this, then your satisfied customers themselves will naturally work on your behalf to promote your business

Then, think about digital marketing. Make sure you have a compelling website - and that does not need to be an expensive one. Learn about how to get found by Google. And support your website with some social media - try to develop a blog and a Facebook page that allows you to engage with potential customers.

Think about sponsorship of some of your local sporting clubs or school events, if you need to raise a local profile. For some further ideas on growing your business, look at Marketing for Small Business

6. How do I value my small business if I want to sell it?

There are many different methods and formulas that can be used. Obviously an accountant can give you a more detailed answer, however as a simple guide to get you started, you might consider the following components in calculating the value of your small business

Firstly, consider the nett asset value. This is determined by adding up your total assets (cash, stock, plant and equipment) and subtracting your liabilities (bank debts and outstanding payments you owe). This would be the money you walk away with if your business closed today.

However, this figure alone does not take into account the ability of a business to generate future profit. This is where the concept of adding the value of goodwill comes into the equation. The value of the brand and reputation of the business, plus the value of the location of the business. Location can be in terms of either the physical store or the digital location - and the online authority of the business to generate traffic and therefore sales.

Different accountants can attempt to use different methods for different industries to estimate the value of goodwill ..... sometimes a multiple, say 3 or 4, times annual profit has been used for example. But ultimately, the goodwill value of your business will be determined by the marketplace.

7. Should I sell my small business?

If you're contemplating selling your business, step back and ask yourself why. Selling the business will mean a major change in your lifestyle and is as big a decision as when you first decided to start the business.

Is it maybe that you simply need a break, perhaps some of the stress and frustration has been getting you down and some time-off will help you rejuvenate?

Or maybe there are specific parts of running your business that are getting to you - and perhaps you could consider outsourcing these eleemnts? ..... But at the end of the day, if you feel that you've lost your passion for the business and you no longer experience the drive and enthusiasm that you used to possess, then it's likely time to sit down and discuss preparing for an exit with a trusted financial advisor.

Carefully consider the timing of any sales decision. When your industry is peaking and your own business is generating healthy sales, then there will likely be greater interest from prospective buyers. Maybe even some of your competitors might be interested in the business.  The WA Small Business Development Corporation offer some good advice on when and whether to sell a business.

For more small business tips on running and growing your business, have a look at some of the articles in the Sydney Morning Herald's My Small Business

Copyright 2013. Brian Carroll is the founder of Performance Development - a corporate training and coaching company based in Melbourne, Australia that delivers management training and leadership development services.

Small Business - How to sell your ideas

Perhaps you run a small business or you lead a team or you provide a consulting service - and you want some tips on how to sell your ideas and become more persuasive?

Maybe you want to sell potential investors on the growth prospects of your small business.  Or perhaps you’re presenting a pitch to a prospective client …. Or you want to persuade your suppliers to extend a line of credit to your business. Or you’re trying to convince your team of the eventual efficiency benefits of a new computer system that’s being implemented.

Navigating your way around business and the workplace now-days requires good communication skills, there’s no question about that. And there are many situations when you need to be able to not just communicate your message clearly – but also persuasively. Many times when you want to be able to gain agreement from another person, have them accept your ideas and win their support for the course of action you are proposing

Seven keys to communicating more persuasively
So what are some of the influencing keys to being able to effectively get people “on side” so they become more open to considering your ideas?  Here’s seven tips ……

1.   Prepare - Know what you want to achieve from your meeting or discussion with the person. Have a clear objective in mind and think about the best time and place for you to approach them with your idea or proposal. Should your approach be a formal one – or more of an informal and casual one? Are they a visual person – would some visual aids help in getting your message across?

2.   Intend to do at least as much listening as talking. I have found that way too many people when they are trying to sell their ideas just talk, talk, talk ….. Blah, blah, blah …… A hard sell approach will usually make other people feel suspicious and defensive with you. Instead, by carefully listening to the other person and asking them questions to genuinely learn more about their thoughts is an important step in beginning to build some rapport with them

3.   Speak in the language of the other person. Target your message to the agenda of the other person. Identify their interests and aspirations. Provide reasons and benefits of why they should agree that have relevance and significance to them. When preparing, try to anticipate the concerns and questions the other person may voice, so that you are able to comfortably address them if they are raised.

4.   Stick to a few strong points – rather than trying to make too many selling points. Otherwise, you end up diminishing the impact of your strong points with relative trivia.

5.   Show them first that you understand their problem, goal or aspiration  before you try to sell any type of solution or course of action. You need to regularly relate what you have to say back to their goals if you want to retain their attention.

6.   Welcome objections that the other person may voice to your idea or proposal, instead of becoming defensive. It is your chance to address a barrier that would otherwise prevent you from gaining their agreement. It is far better for you that their resistance is vocalised rather than remaining “beneath the surface”. Again before you respond, ensure that you have explored and probed the true nature of their concern. The last thing you want to do is turn the discussion into a debate, which will result in the person's resistance to your idea becoming more entrenched. Keep an open mind - maybe there is something you have failed to consider. And maybe you could actually improve your idea by taking their points on board.

7.   Recognise when to walk away. Sometimes you may need to come back to an issue at a later time, if you’re encountering too much resistance. Go away and review your communication strategy – you may need to make a fundamental change to the approach you have been adopting with the person. Or alternatively, you may judge it time to cut your losses and no longer pursue your idea with that particular person ….. Maybe there’s another decision-maker who might be more receptive to it?

So in conclusion, success in business and in the workplace relies upon your ability to communicate with influence across the many different relationships you have with customers, suppliers, staff and other stakeholders. But if you want to be persuasive, then you don’t just talk at people - you discuss with people.

You must adjust your message and how you deliver it to your audience. How you say something is at least as important as the actual content of what you say to another person. If you do not speak with conviction and confidence, then why should anyone trust you and agree to your recommendation?
   
And yet there can also sometimes be a fine line between being respected for your confidence and persistence, as opposed to being perceived as arrogant and creating resentment 

It’s about them, not you

Keep the agenda of the other person and their interests at the forefront of your mind, instead of focusing on your own needs and agenda. In doing so, it will be much more likely that you’ll end up gaining the support that you seek. And even if they don’t agree with you this time. if you’ve followed the above tips, then you’ll still have a firm foundation of goodwill in the relationship for any future influencing initiatives.

Related topics Management Skills Development and also Personal Development

Copyright 2013. Brian Carroll is the founder of Performance Development - a corporate training company based in Melbourne, Australia that delivers management training and leadership development services

Small Business Success Stories

So what are the ingredients for success when you’re running a small business in Australia?

Recently, I met with two small business owners who have achieved success and share their story with us – but from very different perspectives. In different ways, their experience offers guidance and inspiration to budding entrepreneurs.    

One has just celebrated her first year of being in business. Within a relatively short period of time, she has already carved out a remarkable slice of the market within the HR and recruitment industry and succeeded in establishing  a strong online presence for her business. Whilst the other has been running his consultancy business for more than 30 years and is widely respected as a leader within the public speaking coaching industry.

   

Surviving and succeeding the “Start-Up” phase

   

Let’s hear firstly from Natasha Hawker, who founded  Employee Matters, an HR Consultancy company based in Sydney, Australia that assists small to medium businesses with their HR functions to make them more efficient and profitable. In her own words, Natasha shares some of the lessons she has learned about setting up a small business and coping with those early challenges …..

“Fasten your seat-belts - you are in for a rocky ride-

 My reason for starting a business really came about due to necessity. I had just finished a role doing something similar and I could see there was a market; my confidence levels were high and if I went back to my corporate life, I would have missed the boat! But on the flip-side I was 42, married with three young children (6, 5 &4), held a mortgage and guess what? I was the breadwinner as my husband was studying full time and looking after the house and kids - hmm, am I mad? Perhaps - but I think maybe you need to be to take that leap into owning your own business and all the uncertainty that goes with it.

So what are some of the lessons learned?

1. Work your butt off! You will work harder than you ever have - I worked for many years at Accenture and I thought I worked hard then, but it pales in comparison to the hours spent, even just thinking about the business. (Not helped by your husband being your business partner and always wanting to discuss one more thing before bed!)

2. Keep fit - I play squash at 6am four mornings a week and this keeps me sane. Plus it is amazing the stress that can be worked off belting a little ball against a hard wall!

3. Do it gradually - we had no choice as we needed to keep food on the table and the mortgage paid. I was fortunate enough to have had a client for whom I have worked anywhere from 2 - 4 days per week throughout. This served to ease some of our financial pressure

4. Plan - we spent hours up front developing our business plan, strategy and marketing strategy. We reviewed it recently and learnt some great lessons and have developed a revised plan for this year

5. Emotional resilience - a friend once told me owning your own business is a roller coaster ride and never a truer word was spoken! There is a lot of initial uncertainty and then you need to be able to bounce back quickly and pragmatically after you encounter a disappointment. 

6. Cash-flow - you hear it all the time!..... Companies typically suffer cash-flow problems at 9 months and, sure enough, at that point we had just experienced our biggest month and yet could barely afford to pay our team on time or ourselves at all. Luckily our bank came to the rescue with an overdraft

7. Surround yourself with great people - we have hired experts who are brilliant at what they do. They give our clients confidence when working through challenging issues. They take away our clients' problems, allowing them to focus on their business

8. Systemise - what I mean by this is having policies and procedures in place. Try and map as many processes as you can - start early because if you need to scale quickly, this can rapidly undo your business and destroy your ability to function

9. Vision, Mission and Values - are critical; these form the 'structure' of the business and a foundation that supports your team and gives them direction. My team are remote - they work from either their home or the client site. We only see each other once a quarter, so I need them to be very clear about what the business, their colleagues and our clients expect of them

10. Good Service - it is not an old fashioned idea! Our vision is to 'exceed, excite, excel' and I see this as critical to our success to date. Over-service your clients and they will become advocates for you and your business ….. But don't be afraid to fire a client where there is a mismatch of values, slow payment or 'high maintenance' issues"

Natasha goes on to say that despite the times of stress and uncertainty that typically accompany establishing a small business, that never-the-less she is having a blast … “I love what I am doing, I love growing a business, I love growing a team and I can't wait to see where it goes but wow, getting there is awesome!”

Thanks Natasha, I'm reminded of what Steve Jobs said .... "When you love what you're doing, it ain't work".

Preparing for the long haul.

Natasha has succeeded in guiding her business through the start-up stage - but what does it take to sustain that success over a long period of time?

Paddy Spruce is the founder and Director of Integrity Learning, a corporate training company that specialises in public speaking skills training and executive coaching, and is based in Melbourne, Australia. He shares his thoughts from over 30 years of experience about what it takes to start a business - and then stay in there for the long haul.

“Imagine you are a truck driver and getting ready for a very long journey, say 3000km. You would need to do some planning. Know where you’re     going. Have enough fuel for the first leg. Check the weather. Fasten your load. Get the truck serviced. Tell people when you will be back.

Not unlike starting a business. In Gerber's classic book "E Myth", he mentions three legs to the stool of success in small business. E the entrepreneur. The one with the imitative and drive who decides to start a business. T the technical knowledge. Your expertise. M the manager, the accountant, the cash flow advisor, the one who plans for the long haul. Often this stool topples because the M leg is missing or seriously weak.

I started my business in 1982. I am a speaker, training consultant and speaking coach. I am a founding member of the National Speakers Association in Victoria and work overseas and in all Australian States.

If you are intending to be in business for the long haul (and why wouldn't you?), I have some suggestions that have helped me to run my small business enjoyably and successfully for over thirty years.

1. Decide to be in business for a long time. Don't dip your toe in to test the temperature. Commit. Tell yourself that this is what I am going to do for the long haul. Treat this as seriously as a marriage or more seriously than a marriage.

2. Do an audit on yourself. The entrepreneur will be excited or panic stricken. Both of these will pass. Make sure the technician has knowledge about good and services that the market needs. Put your ego aside. The going will be tough. Does the Manager know enough to make the business survive and then thrive. If not, does the Manager know where to get this information.

3. Become a realistic optimistic. Be optimistic in the long term. "I can do this and will do whatever it takes". Be realistic in the short term. When things become difficult, focus on what needs to be done NOW. Operate in the present and decide on action to go beyond the immediate hurdle. Tell yourself "This will pass". Don't let you mind wander into the future. Make sure what you are doing is productive and stay focused.

4. Get yourself in shape. Consider these points in your self-audit ……

- Peace of mind (are you free from fear or almost )

- Health and energy (do you have good health, eat well, exercise, relax daily, sleep well ),

- Strong relationships (a life partner, business colleagues who will assist you, friends you can call upon)

- Worthy goals and values ( Written goals  and values that are meaningful to you and benefit people besides you ),
- In control of your destiny ( control what you can and accept that luck exists - it does seem to favour the people who turn up and work hard )

5. Become a student of business. Discover what you need to know for the long haul and learn it anyway you can. Ask for help. Offer something in return.

6. Control your ego. Practise humility. Admit your ignorance. Be curious always. Tell the truth. Be honest with yourself and others. Make this your foundation. No one is successful without the help of others. Admit this at the start.

7. Form a mastermind group. Start or join a group of like-minded people. Look for same values but different expertise and experience. Discipline yourself to meet regularly. Give help before expecting to receive help.

8. Set goals for yourself and the business. Modest to start.

9. Clarify your purpose. Why are you starting this business? Be very clear or don't start. It may never be clearer than at the start.

10. Understand the risk before taking it. Many small businesses fail. Some do extraordinarily well. The successful ones manage the risk. They know what to do if something goes wrong. They are determined to survive and thrive. They are in for the long haul. It's not pessimistic to ask the question ' What if this doesn't work?' It's fundamental risk management. If you can't manage the risk, don't take it.

The most important suggestion I can make is to study Mindfulness. If you don't know what it is, find out. If you know what it is, use it more. If you are an expert, help others. It's about doing what you do as well as you can.

This is the secret to creating a successful small business. Know what you want to create, get help, find out what you need to know and don't know, examine your motives, decide on what's important and do everything you do as well as you can. That way, eventually you will gain  a reputation for excellence ......... Good luck with your long haul”

Paddy says that starting his own business more than 30 tears ago was the second smartest decision he ever made. "But the smartest one was marrying my wife, Hilary"

In closing

Let me thank Natasha and Paddy for sharing some of their experience with us .... Whether you are a budding entrepreneur looking for inspiration, or a seasoned small business owner seeking some extra self-motivation, I hope their story has given you some food for thought, that might help you persevere with your own small business success journey

Just before I sign off, you might also be interested to have a look at some more stories of  small businesses success. And their owners have based their business model on giving back to the community and sharing some of the rewards of their success.

Copyright 2013. Brian Carroll is the founder of Performance Development - a corporate training company based in Melbourne that delivers management training and leadership development services.

Change in Business - adapt, innovate and stay relevant

"If the pace of change outside your business is faster than that of inside your business, then the end may be near for you" ..... So said Jack Welsh when he was chairman of global company, GE

The ability to change and adapt is an essential survival skill if you run a small business

• Are you resisting change?

You weren't afraid of change when you went into business, so why should you resist it now? ..... Well, maybe part of you is reluctant to change because you feel like you've found a formula that seems to work for you in your small business, so why change something that doesn't appear broken.

A fair point. Except that the market changes and your competition is very likely changing. So unless you are open to change and innovation, you run the risk that you will be left behind.

For example, what was a good or distinctive level of service three years ago is now the norm. In other words, standards rise and customer expectations increase. Almost certainly some of your competitors have been looking for an edge and unless you continue to be open to new ideas, you may find these competitors increasing their market share at your expense.

So, how can you ensure that your small business remains fresh and relevant?

• Where can innovation come from?

Well firstly, listen to what your customers are saying to you.

They may be asking you for a product or service, and you or your staff may be saying that you don't offer it. Your customers then start looking elsewhere for this ...... and end up finding a supplier who can not only offer them this particular service or product, but can also provide them with your product or service. And bang - you've just lost a customer to a supplier who can provide them with a more complete solution to their needs.

Secondly, listen to your staff. They are dealing with your customers every day and they may be getting the customer feedback that you're not.

Maybe you think your staff should be telling you this sort of thing ...... but perhaps they're not telling you because they don't want to bother you with customer "complaints". Whatever the reason, the main thing is that you encourage them to provide you with their ideas and suggestions about either how you can improve your existing line of products/ services - or what can be added to the existing range.

And it's not just ideas about innovating new products, it can also be about improving efficiencies within your systems and procedures.

Too often over the years, I've seen many small business owners failing to capitalise upon the experience of their staff. They mistakenly believe that they themselves are the ones who must drive innovation - and they overlook the treasure chest of golden ideas that are buried in their own backyard.

And thirdly, keep an eye on your competitors and remain vigilant to new initiatives they may be introducing to their product line or services.

• Reward good ideas

Hey, if you want more ideas from your staff to help improve your small business, then remember to offer them some type of reward for a worthwhile suggestion. Whether it's movie tickets, a paid dinner out for them and their partner, or a $100 voucher at the local hardware store - find a tangible way to say thank you

Heck, even if it's not such a great idea the mere fact that they are putting some thought into improving things for your business should be appreciated.

Steve Jobs of Apple fame, said "Innovation is not about how big your R & D budget is ...... When we made our early technical break-throughs, IBM were spending more than 100 times what we were on research and development. Instead, innovation is about how you lead your people and whether they are given the opportunity and the encouragement to be creative"

• Innovate and stay relevant

So in a nutshell, if you're running a small business then embrace the need for change and innovation.  Actively encourage ideas from your employees and listen carefully to your customers for indications as to where your business can continue to grow and develop. Avoid becoming lulled into complacency by the comfortable routines and traditions of "business as usual" ...... What was a good standard three years ago has now become the norm. Unless you accept the need for change you will eventually lose your points of advantage and differentiation.

Push yourself to keep on learning. New technology may offer opportunities to improve customer response times or streamline some of your record keeping - so don't keep your head down and focus only within your own business. When you're talking to other small business owners, ask them about any new software they may be using and whether they think it's improved things. Join in online conversations with small business forums and enquire about their experience with new email marketing systems for example.

Remember the old saying "Your mind is like a parachute - it works best when it is open"

• Good can be an enemy to improvement

In his book, "From Good to Great" Jim Collins says it's all too easy to become overly comfortable with processes and procedures that are "good enough". But the companies who move beyond good and leap into greatness are the one's whose management ask questions and engage in conversations with their staff and customers about how things can be done better. They don't make the assumption that just because there don't appear to be problems with a process, it doesn't mean that it can't be improved. Collins says that becoming great is usually about a lot of regular little steps that improve things - rather than necessarily one big revolutionary idea that transforms the business.

So in summary, look up and beyond your immediate horizons and open yourself up to new and different ideas that could revitalise your business  And keeping your business fresh is just as much about ensuring that you find ways of refreshing yourself.and have developed strategies for coping with stress

By the way, if you're looking for some good tips on implementing change in your workplace, have a look at How to Manage Change After all, there's not much point having a great and innovative idea if it's executed poorly and generates resistance from your staff.

• Small business innovation

Here's a short video clip featuring an interview with the author of the popular book, "The Innovation Zone" in which he advises the small business entrepreneur to be willing to adapt their ideas, and remain open to the potential need to change their idea in response to feedback from the market (ie. customers). Yes persistence and resilience are important qualities for an entrepreneur - but not to the point of stubbornly clinging to an idea that the market would like modified in some manner.

Copyright 2013. Brian Carroll is the founder of Performance Development - a corporate training company based in Melbourne that delivers management training and leadership development services.