Recipe for biz failure
One night this past week, my wife and I stopped by a familiar local restaurant for dinner. We were the only patrons so we were able to spend time with one of the owners whom we happen to like very much.
When the inevitable question of “how’s business” came up, her response was simple; “we’re paying the bills but not getting ahead as the economy is really hurting us since people are not dining out as much.”
Though I usually reject this mantra since I help businesses prosper even in the darkest of times, I let it pass and accepted her assessment. After all, I need a night off too, right?
Reality always has a way of showing up when you least expect it, and in this case, it walked in the door 10 minutes later. It was about 35 minutes before the scheduled closing time and a couple came in to dine. The business proprietor informed them that the dining room was now closed but that they could get food to go.
WHOA, were my ears deceiving me? I had to ask my wife if what I thought I heard was what was really said. Yes, my hearing was correct. I was stunned! 10 minutes earlier the business had woes and now you have enough business to turn people away?
It is very easy to blame the economy for your lack of business, but you have to ask yourself this question; are you doing all that you can to overcome the challenges that you face, or are you relying on excuses alone?
Feel free to email me for strategies to make your business prosper no matter what the conditions on the ground are.
Why are the “experts” so stupid?
”William C. Dunkelberg”, an economist in the School of Business and Management at Temple University, said surveys showed that capital spending was at a 35-year low and that companies were still cutting, not adding, inventory. “Credit’s not an issue,” he said. “Customers are the issue.”
When I see quotes like this I am reminded just how oblivious the so-called “experts” really are.
This article contains nothing more than assumptions and guess-work. Both current clients and prospective clients of Confidential Counselor will tell you that you that statements such as “Bank representatives maintained that meritorious borrowers were getting loans, and economists agreed that there was not much evidence of a broad refusal to lend” just don’t hold water.
Most lenders go out of their way to avoid a formal application for credit. Instead, they have an informal conversation that may include sharing some documents such as P&L statements, cash flow analysis, and credit information. By doing this so informally, lenders are able to avoid reporting true numbers of lending requests as most are denied.
Why do small businesses agree to this? First, they have a fear that a formal application will ding their credit report and leave them looking vulnerable to current lenders and investors. Second, they mistakenly trust the “friendly” banking officer who portrays himself or herself as a friend to small business which, they are NOT!
If Mr. Bernanke and President Obama really want to help small businesses in the USA, they need to add (and listen to) small business owners on their various economic panels. The make-up of the group should include representation of firms with less than 25 employees as well as those who have 50, 75, 100, 250 and 500 associates.
As many others and I have written about over the last 2-1/2 years, the key to rebuilding America is getting small businesses moving. Its time for the policy makers to talk to the boots on the ground who make it happen ever day and not ideologues, pontificators, bureaucrats, fat-cats and others who have NO experience starting and running an actual small business.
Lead, follow or get out of the way
Are we facing a dearth of business leadership in the USA? According to a nationwide poll conducted by Powerfeedback, the answer is definitely yes.
If you own or run a business, please answer these questions honestly.
- My staff is intimately familiar with our short and long term goals
- Communication is seamless, consistent and clear in our organization
- I recognize everyone’s contributions and ideas
- Other companies look at our business as a role model for their own business
- I understand that part of successful leadership sometimes means deferring to others in my organization to lead a project or change
- An important ingredient of leadership is a willingness to adapt to new ideas, technologies and methods
If you answered “no” to any of these questions, you should immediately rethink your role in the organization. Remember, the tail doesn’t wag the dog. Its up to you to lead, follow, or get out of the way.
Need help in becoming a better leader? email me today.
Do customers love you?
My driveway was woefully in need of seal coating. Some of my neighbors got together and engaged “John” to do many driveways on our street for a lower rate. Besides the coating work, I asked John about applying a patch to one area of my driveway that was torn up.
John advised that he could apply “cold mix” but could not guarantee how long it would last. Thinking that my driveway always gets torn up in the winter due to snow plowing, as I told John, if I could get 6 months out of it, I would be happy. He felt that six months would be no issue.
Unfortunately the cold mix remedy didn’t even last a week so I called John for advice. He called “Ken”, a friend of his who did similar work but does “hot mix” instead. John said that he would be over to dig out the cold mix at 7am and that Ken would be over around 10am to apply the hot mix.
Sure enough both men showed up as promised and did what they said that they would do, and, in fact, John insisted on refunding me $50 of the money that I paid!
As a result of all of this I am recommending John and Ken to EVERYONE that I possibly can and doing whatever I can to drum up business for them.
Do you go the extra mile for your clientele? Are your customers/clients this committed to helping you? What do people say about you, and your business?
If you answered “no” to either, or both of these first two questions, and/or you don’t know the answer to the third, I highly encourage you to email me today for a free consult!
Protect the interns
As more and more small businesses are tuning to social media (Facebook, Twitter, Foursquare, Gowalla, Google Lattitude, LinkedIn, etc.) to promote their products and services, I offer some cautionary advice here.
After delivering a speech recently a small business owner sought me out for some advice. She mentioned her new and heavy use of social media and how her firm was conducting random street events where they gave away sample products and discounts. On the surface this sounds like a great plan, of course as my readers know, I always dig well below the surface.
I learned that “Emma” (not her real name) was relying heavily on summer interns for these casual events and that they were mostly using their personal social media accounts and contacts to garner an audience. I was still okay with this until I learned that many times these interns were alone at these random meet-ups.
Unfortunately we live in a dangerous world and predators are well tuned into social media, including location-based services. Businesses need to take appropriate precautions and have firm policies on these types of business activities. Employees/interns (male or female) should never be put in the position where they question their personal security.
As most businesses put up firewalls to protect their network, the same attitude ought be taken to protect staff. Its not only business smart, its also the right thing to do.
If you have questions or comments about this or any other business question, email me
