Its all about business.

Archive for October, 2007

Activity and decisions, there effects on your business

Oct 29

Posted by Steve Gray in Excellence!, Growth, Leadership, Negotiation, People!, Personal Development, Risk Management, Starting out in business | No Comments

Have you ever thought about the activity and decisions that takes place in your business, or in your life for that matter? Let’s get a handle on things to explain more about what I mean.

Active and inactive – It’s either one or the other and not much in between, of course at the either end there can be a lot or a little of each.

Reactive and proactive – the other aspects to activity one being positive and the other negative.

A situation takes place, e.g. an employee makes a mistake, a proactive stance could be “Well you made a mistake, did you or are you able to learn from it?” reactive could be “YOU DID WHAT! what will that cost us!!! Oh No!!!”

An inactive stance would be to do nothing and an active stance is to do something. The question is how do you make the decision and do you think much about it?

Okay enough of the basics, which way you turn with this can have a solid bearing on outcomes in your business, in the case of staff if they keep getting reactive responses from you on all issues, after a while they will not tell you anything. On the other hand if you are always proactive they can (in time) see you as a “soft touch” a person that always sees the positive even though it may be doing great damage to the business.

The flexible approach is to be able to flip responsibly between each area, you could choose to do nothing, something, react or be proactive. Lets pick another example, a person slips on the floor of your shop, you could do nothing (inactivity) and perhaps act as if it did not happen. Yet if you react and tell them off for not seeing the puddle on the floor it could go against you as well. A proactive stance might be to offer them assistance (but probably avoid mentioning that it is the companies fault.) and see if they are okay.

The choice is up to you, so you hope the decision you make is the one that is the best option all round.

Here’s the point about all of this, it’s about making decisions and often snap decisions at that. Many people say making decisions is hard and that can be true, the challenge is to make more of them (even poor ones) so that you get used to making them often and therefore get comfortable with making them.

Once comfortable with making decisions you can check consciously if they are reactive, proactive or inactive. Then in time you will probably make more of the right decisions automatically.

Rich with the gifts of life

Oct 27

Posted by Steve Gray in Excellence!, Growth, Leadership, People!, Personal Development, Planning, Risk Management, Starting out in business, The Board Room | No Comments

Business can be fickle, some succed, others fail, some just plod along making just enough to struggle on even though the market might be very buoyant.

In the end many will say business is just about money. Yes and no… I like to think I get more than just money out of what I do. In many cases I get a great deal of satisfaction out of being in business.

I recently came across a summary of the success classic Think and Grow Rich by Napoleon Hill, its simple, practical and highly effective… the thing is you need to know that richness is not about money… its more about the things. Things like how you feel, what you won, what you control, what you develop, what you create, Its all there you just need to know the simple formula for making these things happen.

Hills book was based on the success of many people and using extensive research he was able to distill the results into this classic.

Knowing that it’s easy to implement helps, but you have to be able to overcome procrastination, other peoles intervention, fears at all levels, above all you have to accept abundance is the norm, not the exception.

Stop now and think, am I rich with the gifts of life, or am I merely existing and chasing my tail… If you are ready to take on a full and rewarding life then do so by reading or re reading the classic.

The business success points

Oct 26

Posted by Steve Gray in Excellence!, Franchising, Growth, Planning, Risk Management, Starting out in business, The Board Room | No Comments

Over time I come up with a list of business success pointers and change it, the order does not matter much I think all the points are usually of equal importance.

Then I think about it some more, weigh that up against things I see and arguments I have in my head about how things are and what I am seeing. So for now as at Oct 07 this is “The list”.

  1. Effective systems - Production – Management – Marketing – Risk management. No not systems to create a bueracracy but systems to create elegant flows of the right information and resources to the right place at the right times. Checklists, operational procedures etc.
  2. Excellent products and services – With the right ones in place the profit margins are easy to sustain and even build on. Think apple’s Ipod, it really was just another MP3 player, but the design and the hyoe compbined made it a stand out performer, everything else (generally cheaper) paled into insignificance. It is clearly No 1 in the market If you were able to produce stand out products and back it up with service second to none then you would clearly have a siner.
  3. Clear aims and strategies - Marketing – Operations – Management, from profit to HR issues clarity of the aims and strategies (the how to’s in the system) will (and does) make every bit of sense, your people will know what to do and when, and chances are you let them develop the aims and strategies and so they are hell bent on bringing them to fruition. Make sure innovation and leadership are a part of the aims and strategies, if not add them NOW, business requires organisations that can and do make positive use of these two.
  4. Clear mission and vision – And I don’t care how small or large the organisation is have something you can hang a mantra on, so you and your people can chant it silently and know it permeates everything your organisation stands for. Then imagine, what if each division had its own mission and vision… could be useful for larger organisations wanting to take teams to a fresh level.
  5. Growth and development strategies - This probably comes out of the mission and vision along with the aims and objectives, the aim in short to make sure the business is able to develop and grow in effective ways… It might be profit to begin with, then more staff to share the load… then, well its up to you, check out your aims and objectives, if they don’t fit to this area alter them now.
  6. Brand image – People, customers – suppliers – prospective and existing staff should be able to say they know the organisation and perhaps what it does by the brand image. Clarity of communication here will build pride all round and leave a professional image in their minds. Look at the logo, the slogan (if you have one) then all the marketing materials, signage adverts THE WHOLE SHEBANG and see if it’s a rock solid image that is being presented.
  7. Customer focus - No customers no business, so get vital about focusing on them, are they treated like royalty? Should they be? They bring $$ in to the Co… so go all out to make them feel fantastic, so much so they want to come back with their friends and buy all you have! Suggestion make it sustainable, there is no use to a focus that becomes fuzzy over time and is not sustained.

That’s the list, pull it apart, print it out and hang it on the wall, throw darts at it to figure out what to do next, I care not, I just know that this list of “stuff” works and will make a difference. date for implementation… NOW!

The impact of the “stages” of business

Oct 25

Posted by Steve Gray in Franchisees, Franchising, Growth, People!, Personal Development, Planning, Risk Management, Starting out in business | No Comments

Describing business in terms of its stages, infancy, adolescence, maturity and so on is a great way to sum up the situation, but there are impacts and of course differences in each.

So in the development of the franchise from the start up infancy stage, through to maturity there are some different challenges to face that would not ordinarily show up. here’s an example, for some it will be starting out with an understanding of why they pay a franchising fee, then doubting its value when the chips are down, then up again as things turn around.

The question is will the franchisee ever fully regain the respect they had for the fee in the first place. Chances are no… Some of the edges may well have been chipped off. But its all part of the stages and this up and down attitude can happen multiple times in the course of each stage.

The challenge therefore is for the head office team and peer mentors to be able to recognise the situation and then be able to do something about it. Even if it is just a list of things to look out for, or a reminder list of what the franchisee fee covers, or even in the newsletter or Co blog it outlines more ways the franchisee fee gets used each month.

These sorts of reminders can go a long way to clearly showing the franchisees how they are being served and the value of that service.

For the non franchise business it may well be a case of looking out for challenges as they arise (e.g. why am I spending $x on insurance) then looking at the peace of mind that can bring and the potential hassles it can prevent, then move on from there.

In business there will always be stages to go through but its up to us to be able to handle the challenges within each.

Up the downhill or how to look at challenges.

Oct 24

Posted by Steve Gray in Excellence!, Franchisees, Growth, Innovation and Creativity, Personal Development, Planning, Risk Management, Starting out in business | No Comments

In a previous article I mentioned business being like a roller coaster with its ups and downs… This time lets look at some of the causes of this “uppsy downsy” situation.

1. I feel flat – This can be from a build up of things not going too well, everything else can be okay but the flatness you feel can cause your downhill attitude to rub off. Be aware of this happening and endeavour to keep the team in high spirits. One waqy to do this is to say “I feel a bit flat today, things have been busy and I’m a bit worn out, its not so much the team here but the workload, so guys, cut me some slack if I seem a little grumpy” This clearly states the situation so they don’t have to feel as though they are at fault.

2. $$ down you are up – You know the work load has been steady and the accounts go out at the end of the month, but the expenses are piling up and there will be too much month at the end of the money! You feel okay but the word is out that the $$ are short… the undercurrent hits the team like a dumping wave in the surf, they can hardly come up for air… In a one person business this can be a double edged sword, and who knows next month when you are flush for cash the work may well slide off the scale (the bottom ind of it!) Therefore aim to build your cash reserves to cover these situations, build a buffer between you and the bottom of the $$ jar.

3. Personal dramas – Your personal life is just that PERSONAL, so keep it that way, there are times when the “chips are down” and you want to “throw in the towel” Again this is like No 1. on the list, you can communicate to the team that things are not great for you right now, so they know its not them. Then get on with things…

4. Lack of skill – You want to do a job for a customer but you are not sure of how to go about it, so you sweat on it, lose some sleep and get yourself all knotted up… over what? Often its as simple as asking someone who has done this type of job before or doing some research to see what’s involved. If you still feel you can’t do it, ring them and say so… Better to walk away with your ego in tact than make a real mess of it working under pressure.

5. You are over it – Business seemed like such an idealistic dream at first… then reality set in, long hours, low pay (how did that happen!) and the rest of the hassles that can come with being out on your own. Take a reality check is business a long term thing for you or a short term hope for the best scenario. It’s okay to start a business, it’s also okay to close one down. To be good in business there is a lot that goes into it and sometimes the only way to learn that is the hard way.

6. Permanent bad attitude – Some people seem to be born a little grumpy, or maybe you just became that way. Acknowledge it and do some thing about it. The staff turnover will be enough to put you off being in business for too long if you have a bad attitude.

That’s the list for now, maybe you have a few things you can tell us about in the comments?

Art and business

Oct 21

Posted by Steve Gray in Innovation and Creativity, Risk Management, The Board Room | No Comments

An often overlooked area of business is the art scene.

Diverse in its offerings, Art is often seen as the realm of the rich (in mind and $$). And can offer the purchaser more than just a decorative device, it can also boost their stakes in the up and up of social climbing as well as their investment assets.

Although often seen as a lofty pursuit, the need for artists to communicate and the want for purchasers to invest in visual literacy and one up-manship is solid. However a challenge arises when people arrive on the scene with limited knowledge of art and how it fits in the scheme of things. So here is a quick guide. Note I am more specifically talking bout painting and drawing here, not the crafts so much.

1. Contemporary - Considered to be the cutting edge of what’s taking place in the art world… New players abound, your research for pieces to invest in should focus on longer term artists of repute who have earned the title of contemporary artist. However the new players can provide the art lover with fresh perspectives and emergent investment opportunities.

2. Mature contemporary – These artists have been selling for years, some have passed on, some are still with us, but the work has gone from owner to owner being auctioned off in the revered art auction houses. Usually a much lower risk than an emergent Contemporary artist and often no where near as expensive as a classic.

3. Classics – The bigger picture of art from the past, from high level well renown artists to others of little note. Again in the bigger auction houses and from antique dealers, usually these works are for the “bigger players” in the investment market.

4. Leisure – The art works of people who create for enjoyment, some of these works attain a level of notoriety (often localised) However their value is often in the technique and style rather than the ability of the works to communicate contemporary themes. Often these are hobbyists that sell to help supplement their income or pay for their materials. As an investment they offer little in the way of $$ return as the artists often have little recognition to the active investment art world, any value is often sentimental.

5. Decorative – Renovation and do it yourself shows on TV show how to ‘take a canvas and tun it into your own piece of art’ the aim is to decorate a wall or space. This is all about colour and design basics and not about art for art sake. The images are usually meaningless and serve only as decoration, therefore they are not expected to appreciate in value.

There are probably a whole host of categories in between that fill various gaps but for now the above list is a starting point.

When looking at works of art you now have a perspective from which to view and assess them. So when asked “What do you think of our latest acquisition” when Aunt Millie points to a new painting in the lounge… you can start out with a discussion using a few of the points above. “Oh Aunt Millie, its rather colourful and fits the space nicely, tell me all about it…” then listen to hear how it was purchased, for what purpose, decoration or for investment.

For the artist they can take the list a see where they are at and or where they might be aiming, for galleries they can clarify their position and see who or target market might go for.

From all sides the list gives a starting point to understanding so the business of visual arts might be more clearly defined for all parties.

Uphill, down hill is there any in between?

Oct 19

Posted by Steve Gray in Excellence!, Growth, Human Resource Management, Personal Development, Risk Management, Starting out in business | 1 Comment

The road we travel in business is a rough one at times, then it gets smooth and before we know it it turns to a dusty track with giant potholes.

I’m talking about the everyday challenges we face, be it in getting enough customers, having enough profit, ensuring staff are happy and the $$ are still rolling in…

For many in business it’s like a roller coaster and few things seem to placate this, just experience over time that tells you “here it comes again!”

Apart from experience the business operator needs to have a way of dealing with these situations to ensure they can come out on top, mentally, physically and emotionally (at least!) so to be prepared for these challenges consider a survival kit to help you on your way.

1. Get educated – If its marketing that’s a challenge? Find out how to do it better, If it’s leadership.. FIND out how to be a better leader. Get educated, take short courses, read books and implement it to make it work. I appreciate your time is precious but making time to get this one right will pay big dividends in the long run.

2. Get connected – Find a group of business people you can bounce ideas off, a business forum that provides an active place where ideas get ‘flipped about’ can be useful to help you see others are in a similar boat and there are ways out of it.

3. Hang Loose – Take some time out from your usual routine, go to a park, take a river walk… I care not for the details but give yourself a break… on your own is good, and leave the mobile phone in the car! Rain hail or shine this short break can do wonders to boost your emotional immune system and creativity.

4. Make it inspiring - The workplace is where you spend a lot of time, take a look around and say how inspiring is this place…. Now make alist of what to do and do it bit by bit if you have to, but make it happen to inspire you and your staff.

There you go a few points to help you on the road to business success. It may still have some potholes and challenging uphill sections but the goal at the end just got a fraction easier.

Aussie franchising gets teeth…

Oct 18

Posted by Steve Gray in Franchisees, Franchising, Planning, Risk Management, Starting out in business, The Board Room | No Comments

The ACCC (Australian Credit and Consumer Commission) in Australia has released a document to assist franchisees in buying a franchise. The doc outlines a bunch of details about how to find a scam franchise (rare) a glossary of terms… (had to I guess) and a range of things to look out for (good logical stuff).

Problem No 1. The horse has probably bolted by the time a prospective franchisee reads the document… It’s true, people get ideas in their head and run with it… They go to an accountant (maybe) chat with a “Solicitate” (sic) (maybe) and jump in the deep end. Did they go to the ACCC Web site? (Heck why would they…) shouldn’t the info be on the government business website? (Probably is…)

Problem No 2. They buy based on emotion – We all do, some of us go a bit further though and check out more details (logic and facts.)

Note how they are interlinked, jump in, and emotion.

The idea of starting a new job, a new venture, getting started, getting going… You might feel invincible at the thought of going into business, you might feel that the choice you have made is right (hey if it feels good do it right?)

Chances are most people that buy into a franchise are probably not fully clued up about business, its pitfalls as well as its earning capacity. Mos may find the difference between marketing and promotions a challenge, let alone the income and turnover differences question or the net V’s gross profit question. (Sorry guys you’re only as good as what you know…)

The ACCC have done the right thing (basically) however they could have mentioned that an emotive decision is not always a right decision and possibly save a whole lot of heartache and money hassles.

Who do you want to sell to?

Oct 18

Posted by Steve Gray in Finance, Franchisees, Growth, Planning, Risk Management, Starting out in business | No Comments

Of course you want to sell to people… that makes sense (until they invent a robot that can spend cash…)

BUT, what sort of people? Rich ones? Poor ones? Ones that work? Ones that play? Ones that have too much time on their hands? Ones that make decisions on BIG buying opportunities for a BIG business…

Whichever it is you should be sure that you can target the right people with the right offering and make sure it has a great profit to boot.

Low profit is fine for high turnover items in some instances but it all depends on your business, the costs to bring the item to market and all the rest of it. Remember you are in business so the aim is to make a profit, FIRST AND FOREMOST!

Too little profit means low cash reserves, which means a risk is being undertaken, the list goes on. So you should be thinking about what sort of people to sell to (to ensure a good profit is made) and what to offer them (product’s and services/s) then you should be able to focus on more effective ways to deliver that to them.

Go ahead and think about the ideal customer you would like to sell to, then build the picture from there, the results could well be amazing…

For more information of customer profiling… click here.

The circle of business a guidepost to understanding

Oct 17

Posted by Steve Gray in Excellence!, Planning, Starting out in business | No Comments

Years ago I put together a guideline to assist my clients in fully understanding what’s involved in a fully blown business, and for those working in one area to better understand the other areas around them. The result was a PDF file like this one.

It proved to be a useful device and I share it with you so you too can see the depth involved in a business.

I aimed to include all areas of the business but still find things I need to add from time to time.

Use it as a a guidepost to understanding, in time as you grow your business you can see the areas that need development and those that are already strong.

Enjoy…

  • You are currently browsing the archives for October, 2007