The Experts

Lesley Ann Grimoldby
The Business Coach
+ About Lesley Ann Grimoldby

About Lesley Ann Grimoldby - Switzer Business Coaching

Lesley Ann Grimoldby has been running her own businesses for 27 years. She began her working life as a primary school teacher in Western Australia and after eight years, took up new challenges in the hospitality and entertainment industries, where she created her own positions in public relations and training. In 1980, she started her own public relations company and has worked with many businesses, both large and small, taking particular interest in their markets and integrated marketing, structures and strategic planning.

In the mid 90s, Lesley Ann discovered ‘The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to do About it’ by Michael Gerber – a book which was named one of the top selling business books of the Twentieth Century. Fascinated by the principles, she became a client of Mr Gerber’s E-Myth Worldwide and soon after travelled to the United States to train to become a Certified E-Myth Consultant.

In 2007, she co-founded Switzer Business Coaching with Peter Switzer, one of Australia’s leading business commentators and chairman of The Switzer Group.

Lesley Ann believes that when it comes down to it, it’s not really about your business, it’s about your life and the way to make that happen is through business development. Her greatest joy is to see clients create businesses that work FOR them instead of BECAUSE of them.

www.switzer.com.au/switzer-business-coaching/

How can I make my small operation a medium-sized enterprise?

Friday, February 24, 2012

My company has been operating for around four years and I am making steady progress. However, I think that I could ramp up from a small business to a mid-sized one by buying a competitor or two, with staff. What are the pros and cons?

Big question, and an entrepreneurial one at that. Instead of giving you pros and cons, I will pose questions for you to consider. How ready is your current business to double or treble in size? Are all your systems in place? Are you clear on your future organisational structure and what needs to be in place to get where you want to go?

Leadership and people management are going to be key. You can have great entrepreneurial skill and fantastic technicians, but you also need tremendous management skills to tie the two together.

Every business – even in the same field – has a different way of doing things. Be aware of the pitfalls of blending cross cultures. Do you have a clear strategy to merge the cultures and do it in such a way that everyone is comfortable and still feels reasonably safe and willing to buy into your vision and way of doing things?

Mergers, particularly with smaller businesses where everyone knows everyone else, are like impending marriages. Once you have identified your prospective ‘partner’, spend some time getting to know them. In other words, date first, then get engaged and learn more about each other before walking down the aisle. Do you have training systems in place? How are you going to position the change with the clients so they still feel important and cared for? The last thing you want is a mass migration of unhappy clients. With the right elements in place, your strategy can certainly ramp your business up.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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What do I need to do to be a better manager?

Friday, February 17, 2012

No matter how I ask or tell my staff to do everything they need to do, they invariably take their own time in doing it and don’t seem to care about the standards. What do I need to do to be a better manager?

There are many different kinds of management and the two extremes showing what we do and don’t want I call

  1. Management by Imposition and Inquisition (‘you do it because I said you gotta do it’ and ‘have you finished that work yet?’), and;
  2. Management by Agreement and Exception.

Clearly the first is not going to be hugely productive. The latter starts with the orgasnisation chart and a written Job Position Agreement which states very clearly the objectives of the role, the standards (job specific and company specific), the actual work, any supervisory and resource authorities entailed and finally a signature page on which denotes agreement to be accountable for everything detailed in the document.

When both the manager and the direct report agree on what the position entails, and what support will be given, everyone gets on and does it, and there should be no more need for any over-shoulder watching, nagging or ‘bossing’.

The Exception part comes into play when the direct report realises that a commitment can’t be met and advises the manager as soon as possible and gives a reason and a solution and a time by which it will be done. In other words, when they know exactly what they are there to do and take responsibility for it, they are more able to manage themselves and the manager manages the results the direct report is there to accomplish.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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When should I hire?

Friday, February 03, 2012

At what point do I put on my next staff member? Do I wait until I have the work or put on someone new and then get the work? Each one seems to me to involve a level of stress.

We have a motto: before you throw people at a problem, throw systems at it first.

Take the message from the above answer. Create an organisation chart for your business around the functions – not the people – the business needs. Often you will find there are functions that aren’t full-time jobs in their own right. If this is the case, as it often is in small businesses, some of these roles can be combined.

Some of those roles might include reception duties, administration, data entry, marketing assistant, personal assistant, CRM management and so on. A combination of a couple of these might be rolled into one position. Each position should either generate more than it costs, or free up others, to generate more revenue.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I limit clients’ reliance on me?

Friday, January 20, 2012

Everyone who calls seems to want to speak to me. They are coming to my business because of me or because they are a personal contact. I feel trapped. How do I change this without offending them? 

This one also falls into the time-thief bag of questions.

First of all, make someone else the first point of contact and have them ask what the call is in relation to, and if you are not available, can someone else help? When you take a call and hear the request, even if it’s from your best mate, say, “You know, I’d like to have Bill look after this for you. He’s our expert on leasing. Let me put you through to him.” Mate happy. Bill happy.

Your bigger issue is to decide whether you are a salesperson first or a business owner first. If it’s the latter, you may have to let go of a bit of ego. However, if it’s the former and you want the business to continue to depend on you then you should be prepared to sacrifice growth. If you want growth, sacrifice some ego and acknowledge that you have good people who can handle the enquiries and transactions without you. They and your clients will respect you for it.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I make time for the important things?

Friday, December 16, 2011

Time seems to be in short supply. “I never have enough time to do everything I have to do.” “I seem to spend my time at everyone else’s beck and call.” “I could do with an eight-day week and then I might keep up.” And the most common theme is “There’s so much to do and I’m the only one here who can do it. No-one else knows what to do or how to handle tricky situations/clients.” This is really the nub of it.

And you know I believe every one of you. No one else knows how to do it. So whose fault is that? And would that be the main reason they are always interrupting you with questions? Did you employ them because they were not smart? I doubt it. Give them some credit. If you learned how to do it, I’m sure they can too.

Examine the interruptions and what the root cause is. More often than not you will find the issue is one of a lack of training and delegation. And confidence. Show them you have confidence in their decision-making abilities. Help them get into the habit of prioritising their questions and ask them to develop a solution to the issue before they come to you. Gradually those interruptions will become fewer and your staff will be happier, knowing they can get on and do what you have employed them to do.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Value your time

Thursday, December 08, 2011

The problem with most small business owners is not simply that they are doing too much work, but that they are doing the wrong kind of work. They should be looking at where their input adds the most value to the business.

Put a value on your time. What is it worth to the business? Here are two examples of how different business owners approached this question.

Example one:

Brian was working with a business coach on some new strategies for his broking and finance business.

He resented the time he had to put into the exercise, complaining that to date it had ‘taken him away’ from his usual office work for almost 15 hours.

His coach persisted. When the strategies were finally in place, projections showed that they would generate another $250,000 in revenue in the ensuing six months.

Brian’s coach asked him what he would pay someone else to do the work he felt he ‘should’ have been doing. His answer was, grudgingly, $50-an-hour. “And yet,” his coach pointed out, “15 hours of your strategic work is going to be worth $250,000 or more than $16,500-an-hour.”

Was there anyone else in the business who could have done that strategic work besides Brian? No. He got the point and began reassessing where his priorities lay.

Example two:

Mary Ellen runs a public relations consultancy. Her client time is charged out at $175-an-hour.

However, the amount of time she can give to this is curtailed because of the administrative work that needs to be done to support her consulting work. She doesn’t feel she can justify putting on someone else at this stage until she is bringing in more revenue. Problem is, there are no more available consulting hours left in the month.

Mary Ellen looked at what she would have to pay an administrative assistant; about $22 an hour. When asked if she would hire a $175-an-hour person and give them $22-an-hour jobs to do, she laughed. And then stopped laughing when she realised that was exactly what she was doing by doing that work herself.

Stop and look at the work you are doing. Put a value on your time and work out where you are spending it. Are you the most expensive clerical worker in your office? If so, reassess. Plan to work yourself out of that job and work yourself into the job that adds the most value to your business.

Don’t be like the man whose business was turning over $5 million and he still worked all his appointments around getting to the Post Office every morning to collect the mail. This is what he had done since he started the business when he was the only employee, and was such an ingrained habit that he had never considered that someone else might be able to do it, thereby freeing his early mornings to attend to activities and meetings he needed to do.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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When it comes to systems, where do I begin?

Friday, December 02, 2011

I hear all this talk about systems and processes and know I should put them in place, but really don’t know the first place to start. What should a system look like?

This is one of those questions that falls into the ‘too afraid to ask because I should know the answer’ category, and it’s one that many will be pleased you brought up.

So I will start by defining what a system is. It’s a way of performing any given task in a consistent way that will give a predictable outcome.

The next question should be, in relation to a specific task, what does the system need to accomplish and who is responsible or accountable for the outcomes?

Then get their buy-in and contribution to the development, because without that they will have little incentive or enthusiasm for its success. Now begin developing the system by stating the outcome.

Next, what are the resources that anyone driving this system will need? These may be as simple as a pen and paper, computer database, application forms, a script or any number of various resources, including people.

What are the key elements or steps that need to take place, by whom and by when? Keep the steps simple. If a single step sounds complicated, break it down into smaller steps.

Finally, define the standards by which you want this particular activity done. Standards usually relate to quantity and quality; how often, how many; what manner; courtesy and politeness, correctness of data and so on.

Once it is done, it doesn’t mean you are done. You may need training (cue for a training process). You will need to ensure that you understand why this system is being put in place.

To have your new systems implemented seamlessly, you will need to draw on your own bank of leadership and management skills.

Systems need to be adopted, not imposed, if they are to be assimilated into your business.

Your question is really such a big one, there is so much more to the answer than could possibly be included here.

Our business coaches and their clients dedicate weeks and months addressing systems and developing business systems strategies.

This answer is just the tip of the iceberg but I hope it helps you get started.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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What should I look for in a coach?

Friday, November 25, 2011

I am that stage of my business where I know I need help. I have thought about a business coach but don’t really know where to start. What should I be looking for in a coach?

You’re asking this question of a coach – and by definition you may get a biased answer. I will try to be as unbiased way as possible. 

First, be clear about what you want. Know that a coach won’t do the actual work for you (that’s what you might get a consultant in to do – but after the expense of that, it is quite likely that you and or your business will go back to doing things the way they were done before).

A good coach will help you shift your thinking about your business and gain an understanding of basic and essential business principles and then guide you in the best way to implement them.

Ask a potential coach if they have any personal experience in small business. Ask how they work; do they work from a structured program or is what they do dependent on their knowledge?

Examples of structured coaching programs are E-Myth Mastery Program and the Full Spectrum Business Coaching Program.

Ask if they have any testimonials or case studies. Check out the areas they cover in detail, such as marketing, finance, leadership, delivery, service and systems. While you think you may need one or two of these, they are all interdependent. Look for someone who can deliver in all these areas.

Most coaches will tell you you need to measure and evaluate everything you do. Ask them how they do the same with the work they do with you.

Perhaps the last word is that no matter how good a coach and their way of working is, the relationship is still only effective if you do the work you commit to in between meetings. Engaging a business coach and not doing the work required is like saying, “I bought the diet book, so how come I haven’t lost weight?”

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How do I overcome the systems challenge?

Friday, November 18, 2011

I know I have to put systems in my business but I don’t seem to have the time. It just seems like another thing I have to do. How do I overcome this challenge?

We have addressed the question before, but it is such a predicament in small business, it bears repeating.

The challenge is threefold: how do I find the time? Where do I start? And what the hell does a system actually look like?

As indicated by your question, the time issue is the big one. To paraphrase: you don’t have the time to put the things in place that will give you back your time. You know what the response is going to be. If you don’t find the time, who will? And if you don’t start putting these systems in place, what will change? 

The answer to that is: nothing will change. And six months, 12 months from today, you will be asking the same question. So what are you going to do about it?

Well, you can first examine everything that takes up your time and if you can’t free up at least one hour a day by delegating appropriately, I’ll eat my action plans. 

The next thing to do is to ensure that when you have found that hour, you don’t fritter it on other ‘stuff’. Develop and document just one simple system. Do that each day and at the end of the week, you will have five ready to go. At the end of the month – twenty, and so on.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I find the magic in numbers?

Friday, November 11, 2011

I’m in the ‘money’ business, but I’m ashamed to admit that I really neglect this side of my business because I don’t really know what I should be watching, or what questions I should be asking. Can you advise?

Not knowing what is going on with money in your business is an abdication of your responsibility as a business owner. You’re not alone; I come across many businesses where the owner only watches the bank balance and makes decisions based on that.

To make educated decisions on the direction of your company, you need to know how everything it does impacts your numbers and the health of the business.

As well as a big picture strategy for your business, you need to have a financial strategy that meshes with that big picture. If you find profit and loss statements, balance sheets and ratios a mystery, and prefer them to be someone else’s responsibility, then perhaps the business should be theirs also. However, if you decide you really want to be in full control of your business then get help and learn to love and understand those figures that tell you how and where you are going. Or consider hiring a financial controller who can conjure up a financial view of the business at a moment’s notice.

Get a business coach or a good accountant and learn how to read those reports and interpret the significant points they reveal. Train yourself to measure costs accurately and continually. Figures were never my thing, but now after years of practice and self-discipline, even I can find budgets fascinating and informative – sometimes even exciting. Who’d have thought?

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I get employees to toe the line?

Friday, October 28, 2011

I have quite a few systems in place. On the whole, things are working quite well. However, there are still some staff who either don’t ‘buy-in’ or decide to alter the process to suit themselves. Also, there is still a constant need for me to solve problems. How do I handle all of this? I’m determined to get there.

And I have no doubt you will get there.

Not getting buy-in will often happen if employees feel that systems have been imposed on them, or if they can’t see the point. And I have to assume that if you have a system in place that there is a result or outcome that it’s there to achieve. Are they clear on why it’s there? Have you discussed it with them or asked for their input? 

Rather than saying, “We have a problem here so now we’re all going to do it this way,” try a more collaborative approach. “This process doesn’t seem to be working as well as it should. I would welcome your thoughts as to how we can change or improve the way things are done at the moment so we have a more consistent outcome.”

Even if you believe you know exactly what needs to be done, listen. Then together, or with the team, set it out in written form (hello – a system) and get agreement that this is the optimum way to approach this particular task. When you take this approach, there is less of a tendency to short cut or ignore the system.

Regarding the need for you to solve problems, I’m guessing this is because you have always been the go-to person for problems. Turn it around. Start asking them what they think the solution should be and discuss it, and then have them action it.

Introduce the concept ‘bring me solutions, not problems’. This has huge benefits. It gives them the freedom to make decisions (and mistakes, which are OK as long as they learn from them). It develops confidence, makes them potentially better employees and team members, frees up your time (to do more strategic thinking) and generally improves the whole workplace environment.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I stop doing all the work?

Friday, October 21, 2011

I have a reasonably successful business and capable staff, but I find I am forever having to get in and do the work myself to be sure it’s done properly. I want the business to grow, but growth seems painfully slow.

First of all, you need to get out of your own way. It sounds to me as if you are spending too much time micromanaging and doing the technical work of the business.

Didn’t you employ others to do that? You can help them by developing and then implementing those processes as well as the process that will help you all track the results.

Do this right and you will also be able to catch problems as they emerge, rather than when they have become entrenched and are therefore much tougher to eliminate.

Micromanaging has the effect of retarding or holding back growth. It also sends a message to your managers that you lack confidence in them.

Take a look at the strengths in your senior staff. They are almost certainly being under-utilised and probably aching for more responsibility and a chance to demonstrate that they can take the stretch.

If you don’t give them the responsibility they are wanting, they will go somewhere else where their skills are more appreciated – and you will be left doing all the technical work, which is what they think you want.

Work with them to develop the processes that will achieve the desired results. Talk to them about the tracked results. And get out of their way.

As long as you are there doing the work you employed others to do, you are not doing the work they need you to do.

Your role is to define the bigger picture and develop the strategies the business needs in order to grow.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I motivate my team?

Friday, September 16, 2011

My team seems demotivated. What do I do?

One of the truths about businesses is that they are a reflection of their owner. If your team is demotivated, look first to your own behaviour and attitudes at work. See what they see. How would you rate your level of motivation? Where on the meter are you standing? Are you really motivated or just driven and cranky that people aren’t meeting your standards, so you feel you have to jump in and do the work yourself? What really gets and keeps you excited? 

Before you motivate them, think about what you need to do to motivate yourself. Do they know why they are doing the work they are doing?

I’m sure you’ve heard the story of the three men doing exactly the same job in a field. When asked what they are doing, the first says, “I’m breaking rocks.” The second says, “I’m earning a living.” And the third says, “I’m helping to build a cathedral.” Does your team know what they are building and what role they play in that? For that matter, do you know?

Motivation is not just about being aware of the big picture. It’s also about being valued for the job they do and who they are; being respected; being listened to and knowing that they have your support and backing.

Consider beginning one-on-one weekly meetings with each of your team. Use these to set out what you expect of them and what they can expect of you; address issues and above all – listen! I know. I know. You don’t have the time. Just try it for a month and see what happens.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I create a consistent customer service culture?

Friday, September 09, 2011

I have been noticing that our customer service is erratic and generally dependant on who is dealing with the customer. Some are great and some are ordinary. How do I begin the build a culture where it is expected?

Customer service is not an accident, or something we do because we like that particular customer. It is a state of mind and it is a business function. As such it should be built into your business as an integral part of your product delivery process. How your customers perceive your business and the way it treats them directly affects the way they talk about you and refer you – or not.

Good customer service should never be underestimated; it directly affects your revenue. Think of the times poor customer service has driven you from a business. It could have been a surly waiter at a restaurant, and the owner of the restaurant has no idea why you didn’t go back a second time.

When you assess the customer service your business delivers, look at it from the customers’ point of view. Consider your attitude – are they respected, valued and appreciated? Look at assistance – they want to be helped and have any hassle minimised or eliminated. Is that happening? They want information and advice; are they getting it in a timely and polite way? Is service only focused on before sales, or do you still show you care after the sale?

Ask and answer these questions and then educate and train your staff so that everyone understands and knows how to deliver good, if not outstanding, customer service.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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What is the key to marketing?

Friday, August 26, 2011

My operations manager has taken on the responsibility of managing the marketing for our business. However, I am not sure how to guide or advise him on marketing strategies. And right now we need it. Please help.

Big question, but I will try to condense the answer down to its salient points. The real key to marketing is measuring. Measure everything.

First of all, start by looking at where your best business has come from in the past. Which marketing initiatives have been most effective? Which haven’t? Do you know if the reason they didn’t work was a direct result of the actual message or the channel you used to spread the message?

Sometimes the message can be right, but the channel off track in terms of reaching your target market and vice versa. List your various marketing channels: database, referrals, website, advertising and so on. Then examine how many leads came from each method. What percentage were qualified leads and matched your target market? What percentage of those converted to business? Also, be equally as critical looking at the business you didn’t win and why.

Once you know in actual numbers what’s occurring, you can improve on the processes that generated those numbers and then determine a sound strategy.

Armed with that information, you can plan the two key elements of your sales process – how you generate leads and how you convert leads.

If the qualified leads are there and they’re not being converted in satisfactory numbers, then you may need to retrain people in using a more effective lead conversion process.

Another valuable resource for fine-tuning your processes and service is what your clients think. Do you ask for their feedback and analyse it?

Discuss all of this with your manager and develop a plan to gather all of this information.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Where, oh, where have the good staff gone?

Thursday, July 28, 2011

Finding good staff is a constant challenge and yet I’m sure they are out there. We have had mixed success in the last two years. Do you have any advice?

You’re right. It’s a bit like finding and starting a new relationship – finding the right person makes a difference and committing to the wrong one can be a nightmare. In business, it all boils down to having a really good recruiting and hiring system. It takes time and effort but then again so does patching up mistakes and getting rid of a wrong hire. Better to spend it at the front end of the process where you can be positive, than at the other end where you will be annoyed and frustrated.

I have two key pieces of advice. The first is take your time and never hire out of desperation or urgency. This is when you overlook or ignore the little warning signals, telling yourself they are only minor and won’t really make any difference . . . and anyway, you’ll be able to address them later on. Wrong.

The second is to interview for qualities. Once you have determined your required skill and experience levels, set down a list of the qualities you want in this employee. Think back to the best you have had and write down the qualities that made them so good. Then interview for these. Depending on the position, some qualities are likely to be enthusiasm, strong work ethic, willingness to learn, attention to detail, team spirit, attitude and a whole swag more.

You want the right people on board to make a difference in your business, not burden it.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I keep staff engaged?

Friday, July 22, 2011

I am frustrated. I know my business is a good one and our services are good, but recently I seem to be losing staff to competitors or businesses outside our industry, which results in me starting all over again finding and training a new person.

 Is there something I should be doing to stop the outflow?

Without knowing the full situation I can’t answer this precisely.

Perhaps you can consider what keeps people in a position. The real answer is rarely money – that is more often the excuse. Many of us think that pay is one of the strongest motivators and for some it can be. Sometimes people won’t take a job if the pay is too low, but high pay isn’t what motivates them to go above and beyond the call of duty.

Most people are more motivated by opportunity for growth and advancement, recognition, interesting work and responsibility.

With that in mind, ask yourself if you are building a culture that promotes these motivators and values. Are you communicating them to your staff? Or, are these things being promised in the initial hiring interview and not carried through or being lost in the rest of the daily pressure?

Don’t you hate people who answer a question with a question? 

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I stop the interruptions?

Friday, July 15, 2011

My biggest bugbear isn’t systems or planning – those I have pretty well handled – it’s interruptions. I never seem to be able to have clear time to focus on the task at hand.

While you have systems handled, you need to add a system to manage interruptions. Look at the interruptions and work out where they are coming from. Is it staff questions, or telephone calls or family wanting something or, heaven forbid, clients? Now ask yourself who gave them permission to interrupt you? Chances are there’s only one answer to that. You did.

Begin to change the situation by setting some guidelines.

Schedule some ‘do not disturb’ time – usually not more than 50 minutes at a time, at the end of which you deal with messages. Ask your staff to put their query on paper or in an email, or even hold it till the next staff meeting.

At the same time, tell them, if it is Drop Dead Urgent, you will drop everything and respond. Have them ask themselves the question: Is this DDU? If not, use another method to communicate.

You may be able to set up a gatekeeper with clear guidelines to screen interruptions. These are just a few strategies. Once you examine the interruptions and see how they fill your available time, you will also see the patterns emerging, and think of ways to shift your behaviour and the behaviour of those around you. Try some or all of these strategies for a month and measure the changes.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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What questions should I ask my accountant?

Friday, July 08, 2011

Accounting and numbers are not my bag and I have always handed this to my accountant to look after while I concentrate on what I do best – selling. But I feel I need to be asking better questions of the accountant. What should I be looking for?

You should be looking inside your business. Financial management isn’t something separate from your business; it’s an integral part of everything your business does. As the owner of the business, it is your responsibility to increase its value and to know everything that affects it.

I am not saying take the finance back from your accountant – far from it. We all need their expertise, but you are the owner of your business and you are the one responsible for internal business management, and your figures are what tell you what is happening in the business. 

It is from these that you will make decisions about the operational actions you need to take. While the taxation department and the government make decisions about your responsibility for external financials, you are responsible for determining what’s right and wrong, effective and ineffective within the business.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I manage my managers?

Friday, July 01, 2011

In the spirit of open management, I asked my office manager what his biggest frustrations were so we could address them. Among those he listed were, ‘I don’t know what my job really is’ and ‘inconsistent direction and instruction’. How do I deal with this? 

First of all, congratulations on asking the question. That is the biggest step towards addressing problems both seen and unseen and to being an effective manager. The two frustrations are related with the second almost certainly a direct result of the first. What happens in many small businesses is that the owner nominally gives someone responsibility and then takes it away, saying, ‘I know what to do here, let me handle this one’. The result is that the manager is never fully given the chance to manage or take on higher accountabilities. The missing piece here is a clear understanding on both sides of what the job entails.

With all our business-coaching clients we introduce written Job Agreements.

We have a simple definition of a ‘job’; it is the responsibility to produce a specific set of results. You either do the work to produce the results or you do the managerial work to see that other people or systems do the work to produce the results. To do that, the job must carry enough authority for appropriate decision making, to get resources and sometimes to supervise other people in other jobs.

A job agreement is an understanding between the business and an employee and a commitment to produce specific results. It has a stated purpose; it lists the different kinds of work inherent in the position; it sets out the reporting relationships and the authority to make decisions, get resources or manage others.

Having an agreement such as this in place will very quickly clarify the situation for you and your manager. You will both know exactly your roles in the business and move towards a more satisfying consistency and certainly clearer direction.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Should I work harder than my team?

Thursday, June 23, 2011

I have a pretty good team who can handle most things, but I feel guilty if I’m not working as hard, if not harder than them and setting an example.

Thank you for this question. It gives me a chance to trot out my favourite analogy.

On a ship you expect to find the captain on the bridge setting the course and taking responsibility for the ship as a whole and the safety and security of the crew. You do not expect to see him stoking the boilers and pumping the bilges (and other such nautical expressions). 

Sadly, in the ship of small business, that’s where you are most likely to find the captain, while the crew look on.

If you ask them why he or she is doing what they are doing, you’ll get answers like: “He says he’s the only one who can do it.” “I don’t think she trusts us to do it.” “She has never shown us how to do it.” “He says he’s always done this and likes to get his hands dirty.”

So back to the ship. Will the crew respect the captain less if he doesn’t work in the bowels of the ship? No. They know he has paid his dues and done all the hard work as he or she has risen through the ranks.

Get over the guilt by concentrating on where you want your ship to go and how you are going to get it there. And how you are going to get it there with a healthy and happy crew who understand their role and accountabilities.

Speaking of setting the right course for leadership, Peter Switzer will join US leadership expert John C. Maxwell onstage next week. For more details, click here.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How do we get from here to there?

Thursday, June 16, 2011

My partner and I are trying to grow our business but growth is painfully slow. We seem to take as many steps back as we do forward. We are both very clear on what we want, but it seems elusive. How do we get from here to there?

Both having a clear picture of where you want the business to go and what it will look like when it is there is the primary prerequisite.

The second is having a plan or a strategy. In fact, a strategy for each key area – marketing, sales, operations, financial, staffing, and so on – all of which operate within the context of your bigger picture. We call this strategic work. It is the work you do on the business as opposed to the work you do in the business.

Not doing this work, not dedicating at least one hour a day to it, is negligent and delinquent. Saying you don’t have time to do it is like saying you don’t have time to stop and fill your car with petrol. Like your car, the business will stay in one spot with a lot of people in it who only look like they are going somewhere.

The third step is action. Determine what has to be done and do it.

Start planning the actions you need to take and spend time each day fuelling your business to get where you want it to go. It often helps to create a set of timelines to show when you will tackle and complete each action within the strategy areas.

Of course, through these steps you’ll need good leadership. US leadership guru John Maxwell, author of the book The 21 Irrefutable Laws of Leadership, is coming to speak on Leadership towards the end of the month – his insights are unparalleled.

He's in Melbourne on June 29, Sydney on June 30 and Brisbane on July 1, and our very own Peter Switzer is on the bill too!

For more details, click here.

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Where do I draw the line on measurements?

Thursday, June 09, 2011

In past columns you have talked about measuring everything. This seems to me to be a waste of time and energy. I realise there are things I need to measure, but where do I draw the line of common sense?

You’re right. Too much measuring confuses and obscures the issues and is just as bad as too little.

What you want to measure is anything that will give you clarification and help you make effective decisions about the direction of your business. Every business is an intricate web of interlocking systems – even if you don’t have them documented (and if you don’t then you won’t have consistency and predictability because the outcome of the system will be dependent on who is driving it).

Just measuring the dollars isn’t enough. You want to track and measure the things that make the dollars move in and out of your business.

Start to think of the key systems in categories. What are your marketing systems? Your sales systems? Your production and delivery systems. Do you have recruiting, hiring, training and management systems in place and how effective are they?

Now, out of these, make a start and decide which have the most impact on the business.

Of course, if you are going to measure anything, you will want to set yourself standards; what is acceptable, what is not and what is outstanding? All businesses are different as are their owners and the degree to which you really understand what is happening in your business – and act on it – will generally correlate with your success.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I determine business direction?

Friday, June 03, 2011

I sometimes feel so close to the coalface in my business that I find it hard to be objective in assessing how it is performing and what I need to do next to keep it moving forward.

This is always a challenge in small business and akin to not being able to see the wood for the trees. However, the good news is that the minute you recognise the fact, you can step away and take a longer view. One of the things you can do at this time is a SWOT analysis and consider the external and internal forces that drive your business. The strengths and weaknesses are internal and things you can control, and the opportunities and threats are external and usually beyond your control. Draw up a four-box grid and list the key points in each segment

SWOT is really a state of mind where you are always checking in to the realities inside and outside your business and processing the information. Your business’ strengths are elements within the business that will enable you to succeed. Ask yourself what are the conditions or abilities that put you first in the eyes of your customers or make you an innovator in your market?

The inverse of this are the conditions that put you at a disadvantage. These weaknesses could be poor or missing systems, untrained staff or anything that results in dissatisfied customers.

Once you have determined your SWOT and the impact each point has on your business, you can make the necessary decisions on the actions you will take to develop or correct. The whole process is not difficult; it just takes careful thinking and application to move your business forward.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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What are the secrets to delegation?

Friday, May 27, 2011

I try to give my staff responsibility by delegating work projects to them with varying and generally uninspiring results. What are the secrets of delegation?

Clarity and communication. It’s no good you having a picture in your head of what you want and expecting them to mind read.

Example: “Jim, can you put together a report for me on xxx please?” Depending on how Jim interprets this, you might receive a novel, a half-page summary or something in between. That’s if or when you receive it, because he was given no clues as to length, content, timing or even purpose.

Good delegation needs:
  • Precise details of what is required
  • The reason or purpose it’s required
  • The format
  • The inclusions and a time frame.

And of course it’s preferable to preface the request with something like: “Jim, what’s your day/week looking like? I have a project I’d like you to do for me, it should take a couple of hours, can you fit it in?”

At the end of the conversation, the manager can check that task is understood and Jim should know he is free to ask for further information during the process.

So, if you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I get staff to bring solutions, not problems?

Friday, May 20, 2011

My time seems to be constantly taken up responding to staff questions about a whole variety of subjects from aspects of their normal everyday work to unusual situations and how to handle them. As a result, I never seem to get my own work done. How can I get them to think?

This is a common complaint in small businesses, and one of the key reasons they rarely become bigger businesses. The owner is so busy sorting out the myriad day-to-day issues they can’t focus on the higher-level work and thinking they should be doing on the business.

For most, it stems from an open-door policy and desire not to be seen as unapproachable. What’s really happening is that you have given staff permission to interrupt and by giving them the answer every time, you are embedding the practice and indicating that your work is of no consequence.

It’s time to change all that. Introduce the ‘bring me solutions, not problems’ principle. In other words, encourage them to do the initial thinking. Respond with: I’m in the middle of something right now, can you come back in half an hour, and, before you do, can you give some thought to the issue and bring back two or three options that you believe might be ways to handle it.

They have been relying on you for so long to answer the questions, they have become lazy. And you have been abdicating your responsibility as a manager to help them develop into valuable, thinking individuals and employees.

So, if you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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What should I look for when hiring a manager?

Thursday, May 12, 2011

What characteristics should I look for when hiring a manager? So far I have had two who have not worked out and I’m gun-shy about hiring another.

Michael Gerber, author of the best selling small business book The E-Myth Revisited, believes there aren’t any bad managers – only untrained managers, unmanaged managers, managers operating without a management system or managers expected to produce miracles without the right perspective and without the right tools and training.

Sounds a bit harsh maybe, but it holds a great deal of truth. Appointing someone as manager and leaving them to their own devices is abdication. If you can apply any of the above scenarios to your previous managers, put some thought into what actually was missing.

Before you work out the ‘who’, decide on the why and the what. Then you can focus on the who and the how. Why do you want a manager? To take over from you? To free you up so you can do more strategic work? Move away from the business? Spend more time selling? Hopefully it’s one of the first two. If it’s the third, your time might be better spent training someone else to sell the way you do. 

What exactly do you want them to do and what are your expectations? What do you have in place to support them achieving the results you expect? Do you have a bigger picture strategy for your business you can lay out for them so they can help you drive the business in that direction? Do you have systems in place that set out the way you play the game at your place?

When you have all that sussed, work out the who. What sort of person will perform this position? And perhaps more importantly, do they have values around work, people and service that match yours?

Now think about the how. How do you want them to do what they have to do as a manager of your business? Have you considered or even documented how things are done in your company, or if they’re not being done right now – how you want them done?

Set out to have a good, trained, managed manager, operating with the right tools and systems.

So, if you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How do I create a customer-dedicated culture?

Thursday, May 05, 2011

I have been noticing that our customer service is erratic and generally dependant on who is dealing with the customer. Some are great and some are ordinary. How do I begin the build a culture where it is expected?

Customer service is not an accident, or something we do because we like that particular customer. It is a state of mind and it is a business function. As such, it should be built into your business as an integral part of your product delivery process. How your customers perceive your business and the way it treats them directly affects the way they talk about you and refer you – or not.

Good customer service should never be underestimated – it directly affects your revenue. Think of the times poor customer service has driven you from a business you have dealt with. It could have been a surly waiter at a restaurant, and the owner of the restaurant has no idea why you didn’t go back a second time to give him more of your money.

When you assess the customer service your business delivers, look at it from the customers’ point of view.

Some of the areas you can consider are:
  • Attitude – are they respected, valued and appreciated?
  • Assistance – they want to be helped and have any hassle minimised or eliminated. Is that happening?
  • They want information and advice – are they getting it in a timely and polite way?
  • Is service only focused on before sales, or do you still show you care after the sale?

Ask and answer these questions and then educate and train your staff so that everyone understands and knows how to deliver good, if not outstanding, customer service.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

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Why should I watch the money?

Thursday, April 28, 2011

I’m in the ‘money’ business, but I’m ashamed to admit (and thank goodness for anonymity) that I really neglect this side of my business because I don’t really know what I should be watching, or what questions I should be asking. Can you advise?

Not knowing what is going on with money in your business is an abdication of your responsibility as a business owner. You are not alone, we come across many, many businesses where the owner only watches the bank balance and makes a decision based on that. 

If you are to make educated decisions on the direction of your company, you need to know how everything it does impacts your numbers and the health of the business. As well as a big picture strategy for your business, you need to have a financial strategy that meshes with that big picture.

If you find profit and loss statements, balance sheets and ratios a mystery, and prefer them to be someone else’s responsibility, then perhaps the business should be theirs also. However, if you decide you really want to be in control of your business then get help and learn to love and understand those figures that tell you how and where you are going.

Get a business coach or a sympathetic and understanding accountant and learn how to read those reports and interpret the significant points they reveal. Train yourself to measure costs accurately and continually. Figures were never my thing, but now after years of practice and self-discipline, even I can find budgets engrossing, fascinating and informative – sometimes even exciting. Who’d have thought?

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching. 

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How can I create a measured marketing message?

Wednesday, April 20, 2011

My operations manager has also taken on the responsibility of managing the marketing for our business. However, I am not sure how to guide him or how to advise him on marketing strategies. And right now we need it! Help.

Big question, but I will try to condense the answer down to its salient points. The real key to marketing is measuring. Measure everything.

First of all, you can start by looking at where your best business has come from in the past. Which marketing initiatives have been most effective? Which haven’t? Do you know if the reason they didn’t work was a direct result of the actual message or the channel you used to spread the message? Sometimes the message can be right, but the channel way off beam in terms of reaching your target market and vice versa.

List your various marketing channels: database, referrals, website, advertising and so on. Then examine how many leads came from each method? What percentage of them were qualified leads and matched your target market? What percentage of those converted to business? And don’t just look at the business you won. Look equally as critically at the business you didn’t win and why.

Only once you know in actual numbers what’s been occurring can you hope to improve on the processes that generated those numbers and from that determine a sound strategy.

Simply armed with those figures and information, you can plan a lot and finetune the two key elements of your sales process – how you generate leads and how you convert leads.

If the qualified leads are there and they are not being converted in satisfactory numbers, then you may need to rethink or retrain your people in using a more effective lead conversion process.

Another valuable resource for finetuning your processes and your service is what your clients think. Do you ask them for feedback and analyse it?

Discuss all of this with your manager and develop a plan to gather all of this information.

So, if you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

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Getting in the driver’s seat

Thursday, April 14, 2011

Growing a business can be challenging, but a clear strategy and a set of systems can help take the pain out of growth.

There comes a point in most small businesses when the owner – you – stands back and acknowledges that it can no longer be classed as a start-up and that it’s time for it to grow to the next stage.

The challenge now is how do you do that? More of the same? Probably not.

You’ve done a great job to get to where you are now, but to get to the next stage will need a bigger plan.

Develop your vision

What do you want your business to become? How will it behave? What will set it apart from its competition? Decide what your growth goals are and set yourself targets and set some realistic milestones by which you can measure your progress.

These will include your revenue targets, the timeframe in which you will achieve this, number of staff and when they will join the business, number of outlets, profitability and so on.

Duncan Lugstein, managing director of Sydney-based Corporate Technical Services (CTS) believes the key is to map out a growth destination that is real, but stretches you and that can be broken down into smaller goals. “Planning growth in your business also needs you to work on developing yourself as a manager and a leader. Be prepared to get out of your comfort zone and grow as a person as your business will be a reflection of you.”

Your next task is to be really objective and honest about the business as it is now. If it has just come out of start-up stage then it is almost certainly still very ‘you-dependent’.

In other words, without you there it would not be able to operate effectively, let alone grow. This is a wake-up moment, and a very valuable realisation, because you are now able to ask yourself key questions about what really needs to be in place for growth to happen.

Time for action

The first thing is going to be time; specifically yours. Without you dedicating your time to business development, nothing will change. You are going to have to create some time in your working week.

Begin by identifying everything you do in a day, a week, a month. Work out which tasks you can delegate. (And if there is no one to delegate it to, you may have to consider getting in some office support – even if it’s only a day or two a week.)

Introduce systems

Work out the instructions for each of the activities this person or people will be doing. Imagine that they are doing the work without you there to tell them what comes next and set it all out on paper. These instructions must include clear steps, standards and timing. This is a system.

Make sure each system is recognisable as such and follows the same format.

Aim to free up at least one hour of your time every day – and when you have done that, begin to work on your growth plans and the systems that will streamline the work that needs to be done.

If you were to use that time just to develop one system, at the end of the week you would have five systems; at the end of the month, 20 and so on.

Key areas of focus

Incorporate into your planning the key areas your business will need to cover to ensure that the growth will be steady, managed and sustained.

Once you have a plan and created your thinking and development time, look at what your business will need in order to grow. If the answer is more sales, then maybe you should be looking at your marketing strategy.

If you have enough enquiries but are not converting them to business, then examine what is happening in your conversion process. Are you confident that your customer service department can deliver your products and services faultlessly and seamlessly? If not, then start there. Iron out the glitches. There is absolutely no point in developing a marketing strategy to bring in more business unless you know your business can deliver on its promises.

Think of your business as having four key strategic areas: production, marketing, management and resources. Then break those areas down into key areas. To begin with, you are going to be responsible for developing the strategies in all of these areas.

Lisa Clarke of Cavalier Homes West in Victoria, says that one of the first things she and husband and business partner Rob had to do was to define their roles and responsibilities within the business. “With that done, it was important that we had confidence in each other and our shared goals for the business to keep the ball rolling. We constantly review out strategic objective and look at where we are today to make sure we keep on track.”

Systems for growth

Duncan Lugstein says that recognising that he needed to implement systems was a breakthrough. “But before I could do that I needed to ‘systemise’ myself and my own thinking. Without that how could I possibly expect my staff to understand and adopt the same principles? In the beginning the systems that made the most difference were the deceptively simple and small ones.”

Lugstein says it was through those systems that many of the daily frustrations and obstacles that prevented things running smoothly were eliminated. “Gradually we incorporated all the systems and guidelines into a handbook. Now everyone knows what to do and where they stand.”

Rob Clarke believes the most effective system he and Lisa put in place was what they call their Exception Report. “As most of the work we ask people to do is timeline-based we need to know if they can’t complete something by a given time as this affects other tradesmen coming onto the building site after them. This has made everyone more aware of how their work impacts on others,” he explains.

The Clarkes say the best advice they could give anyone wanting to grow their business is to know your target market. “Really understand who they are, where they are and what motivates them. And, document everything and anything you do. Do not underestimate the importance of systems. This means that as people come into the business they know how things are done and there is a clear road map to follow.”

Tips for growth planning

Duncan Lugstein’s tips for growth planning:
  • Look for opportunities outside the norm that will still fit into your business framework
  • Develop your staff and yourself
  • Be committed and prepared to do what it takes
  • Lead by example
  • Plan for everything
  • Systemise your business
  • Put the right support structures in place
  • Employ those who complement your skills
  • Be prepared to turn away the wrong clients
  • Find good advisers (legal, etc.)
  • Develop a handbook for your policies and procedures.
Lisa and Rob Clarke’s tips for growth planning:
  • Get a business coach
  • Define all the roles in the business
  • Constantly review your strategic objective to keep on track
  • Develop systems for everything and never underestimate their value
  • See frustrations and complaints as opportunities to make your business better
  • Delegate wherever you can
  • Care for and develop your people
  • Really know your target market
  • Measure everything.
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How to create customer loyalty to the business

Friday, April 08, 2011

I have a great sales person who looks after the majority of my clients. However, I feel as if I am losing personal contact with them. They don’t know who I am and if she leaves, she could very easily take some of them with her. How do I reconnect with clients without overstepping what my salesperson is doing?

It would seem that the current client loyalty is with the salesperson rather than the business. Therefore, your task is twofold: build customer loyalty to the business (rather than you personally – because that will inhibit your growth), and get everything that happens in the sales area onto paper in the form of a system.

It’s not so much that you need to reconnect with the clients. More that you need to connect the clients with the business so that they associate the service they are receiving with the business name, not just the salesperson.

There are several ways in which you can reconnect and also offer them added value service. Set up a regular form of communication with them, such as a letter or email newsletter from you. Institute a bi-annual or annual review of their portfolios at which you can become involved together with your salesperson. Offer seminars on subjects related to the business.

In this way, you are letting them know who you are, and affirming your credibility and that of your company, and giving them more reasons to stay with the business, not just the salesperson.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Focus solves time, people and money

Thursday, March 31, 2011

The most commonly stated small business frustration is related to time, people and money. I believe the solution to all of these begins with one thing, and that is focus. Unless we make or find the time to focus on these challenges, nothing will change.

Finding the space and time to focus at work can be difficult. How often do any of us give ourselves the luxury of pure thinking time? Some manage to squeeze in a bit on the drive to or from work.

A measure that many of our business-coaching clients employ is to take themselves completely away from their work environment for anything from two days to two weeks. They check into a hotel, go to a holiday house or somewhere they can clear their mind and focus on the business without interruptions or distractions. Then, with minimal daily contact with their business, they apply themselves to thinking about their business creating strategies to build the business they envision.

The depressing truth is, 99 per cent of small business owners will tell you they don’t have the time to do this. What they are really saying they don’t think their business is worth focusing their thinking and planning time on.

Q: How can any small business owner do everything you suggest? How do I make sure our clients are looked after properly? How do I train staff to do it the way I do it? How do I systemise everything?  

A: You’re right. It’s all very daunting. However, I suggest you shift your focus. You are thinking entirely about the ‘how’ – how to do stuff and how to ‘fix’ things. It’s time to shift your approach. Stop thinking about the ‘how’. Start thinking about the ‘what’ and the results.

Begin with: What do I want to create with this business? What are the results that will show me I have done it? Then focus on the outcomes and the results. 

Once you start with the desired end result clearly in mind, you can go back and work out the ‘what’: what needs to be done, what systems need to be in place, what it is that you will want to measure along the way to show you are heading towards your result. From there you can develop the ‘how’, but from a far more effective standpoint.

It might seem like a lot of work. But weigh that up with the alternative. Would you rather keep stumbling along, being constantly stressed because things are not being done smoothly and efficiently? Do you want to continue to expend your energy on ‘fixing’ all those things you don’t like or want in your business? Or would you like to eliminate them? You won’t get rid of them all at once, but you can remove them one by one? It doesn’t happen by magic. You need to find the time to do the thinking and the subsequent work. Believe me, it’s worth the effort.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I find the right staff?

Friday, March 25, 2011

Finding good staff is a constant challenge and yet I’m sure they are out there. We have had mixed success in the last two years. Do you have any advice?

You’re right. It’s a bit like finding and starting a new relationship – finding the right person makes a difference and committing to the wrong one can be a nightmare.

In business, it all boils down to having a really good recruiting and hiring system. It takes time and effort, but so does patching up mistakes and getting rid of a wrong hire. Better to spend it at the front end of the process where you can be positive, than at the other end where you will be annoyed and frustrated.

I have two key pieces of advice. The first is take your time and never hire out of desperation or urgency. This is when you overlook or ignore the little warning signals, telling yourself they are only minor and won’t really make any difference, and that you’ll be able to address them later on. Wrong.

The second is to interview for qualities. Once you have determined your required skill and experience levels, set down a list of the qualities you want in this employee. Think back to the best you have had and write down the qualities that made them so good. Then interview for these.

Depending on the position, some qualities are likely to be enthusiasm, strong work ethic, willingness to learn, attention to detail, team spirit, attitude, and a whole swag more.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I minimise employee turnover?

Thursday, March 17, 2011

I am frustrated. I know my business is a good one and our services are good, but recently I seem to be losing staff to competitors or businesses outside our industry, which results in me starting all over again finding and training a new person. Is there something I should be doing to stop the outflow?

Without knowing the full situation, I can’t answer this precisely.

Perhaps you can consider what keeps people in a position. The real answer is rarely money – that is more often the excuse. Many of us think that pay is one of the strongest motivators and for some it can be. Sometimes people won’t take a job if the pay is too low, but high pay isn’t what motivates them to go above and beyond the call of duty.

Most people are more motivated by opportunity for growth and advancement, recognition, interesting work and responsibility. With that in mind, ask yourself if you are building a culture that promotes these motivators and values.

Are you communicating them to your staff? Or, are these things being promised in the initial hiring interview and not carried through or being lost in the rest of the daily pressure? Don’t you hate people who answer a question with a question?

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

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What’s the difference between an accountant and a business coach?

Friday, March 11, 2011

I am considering getting a business coach and have discussed this with my accountant, who said I don’t need it and that he can provide what a coach provides. The question is difficult for me to assess, because I’m now unsure that what he can give me is the same as I would get from a good coach. What do you recommend?

We love our accountants. Truly. They ensure that we comply with all the regulations, pay the right amount of tax (preferably no more than we need to), help us interpret figures from a regulatory point of view and assist us in understanding where we stand financially. However, they are not in our business.

You have a role as the leader of your business to do a number of things. One of the most important is setting the vision and path for your company. No one else can do this for you – it is your business and your vision.

As the leader, you must set the course, develop the systems and processes in all areas of the business; make sure your staff are trained in those processes and understand the need to stick with them; develop your marketing, sales and customer service strategies and systems and so on.

Another important thing you have to do is to learn how to develop and bring out the best in your people. That’s what leaders do. Many leader/managers simply ‘boss’, supervise, or, sadly in the case of a few, bully, or even abdicate. Effective leaders become the coaches of their own team, empowering those around them to manage daily operational problems, rather than running around themselves constantly fixing things.

Effective leaders also know how to ask, listen, encourage, inspire and give constructive feedback. And a lot more. These are just some of the aspects in which a good business coach can help you. If your accountant can coach you in all of these aspects of the business then take him up on his offer. If not, then consider taking on a good business coach.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I manage my business’ culture?

Friday, March 04, 2011

We have a great team – 20 of us work really well together – but there is one fly in the ointment, who just doesn’t fit within our culture.

Although he is experienced and very capable in his field, and from that perspective an asset, he will never take responsibility for any mistakes and always has an excuse or justification.

How do we manage this?

You said it yourself: he is not a cultural fit. When a platoon is marching on parade and one is out of step, does everybody else change step to fall in with the one out of step?

Probably time for you to part company and recruit someone who is willing and excited about marching to the beat of your drum.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How long do Australians stay put?

Monday, February 28, 2011

The length of time Australians stay put in their homes depends on many factors. Generally, it’s dictated by major life changes such as getting married, having children, downsizing for retirement and changing jobs or being transferred. There’s also our continual pursuit of the ‘dream house’ with most people having a favoured location and property type in mind for the future, such as a luxury apartment on the beach.

Right now we have a lot of upgraders in the marketplace looking for larger homes to accommodate their growing families or similar-sized homes in better lifestyle locations. Downsizers are also active particularly in the apartment market in coastal suburbs.

Across Australia, the average length of time we stay in each property we own is 7.5 years for houses and 6.5 years for apartments, according to independent data supplier, RP Data.

The numbers differ suburb to suburb and I’ll get into that in a minute as it’s fascinating stuff. But looking at it from a national point of view, we’re seeing the longest periods of tenure in desirable well-established suburbs close to the water and CBD in Melbourne and Sydney (9.6 years for houses, eight years apartments and 9.1 years for houses, 7.4 years for apartments respectively).

Property prices in these cities have been comparatively high for a long period of time and the costs of selling – including stamp duty, plus the costs of moving – are probably keeping more people in their homes for longer in these cities. However, Darwin is also an expensive market – in fact, it’s our fourth most expensive capital, yet it has the shortest average period of tenure (4.7 years for houses, four years for apartments).

The difference between Sydney/Melbourne and Darwin is that Darwin has been experiencing a phenomenal property boom over the past five years and during extended booms people tend to buy and sell within a shorter time period when rapid and substantial capital gains are available.

I’ll digress here to say I don’t recommend this, as the best capital gains are always reaped over the long term. Plus, the costs of moving (including stamp duty on your sale) these days are too high to make short-term holding financially viable. Looking at historical averages, property prices tend to double every 10 years but this doesn’t happen on a consistent year-on-year basis. We’ll have five per cent growth one year, 15 per cent the next, and so on depending on interest rates, the economy, development and government policies.

If you need more space but you like the location you’re in, I definitely recommend renovating or extending if you can as it’s far less costly than moving. Don’t have the money to renovate? Well, most of us don’t have tens of thousands of dollars lying around either! However, you could probably access the equity in your home to fund those renovations – this is really easy for your broker or bank to organise.

But back to looking at the tenure stats. On a suburb-by-suburb basis, it seems the residents of Ivanhoe East in Melbourne are very happy to stay put with the average tenure being 16 years – the longest average tenure of any capital city in Australia. The median house price in Ivanhoe East has increased from $250,000 to $1.25 million in that time – hence it’s doubled more than twice in well under 20 years!

The suburbs with the shortest average tenure (just 1.7 years) are outer ring suburbs dominated by new housing in Burnside Heights in Melbourne’s Melton region and Berrinba in Brisbane’s Logan area.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I find the time to write systems?

Thursday, February 24, 2011

I know I need systems and I know that systems will improve my business, but I work 70 hours a week now. How am I ever going to find the time to devise and then implement systems on top of this workload? 

Your challenge is that you are the only person who can make things change. It is your business and no one else can make that change happen.

The question to ask yourself is, what are the ramifications of you not implementing the systems you know you need? And, what will be the benefits of those systems once implemented?

The problem is not that you are doing too much work – you are simply doing the wrong kind of work.

Start by listing all of the things you do in a week and how much time you spend on them. Categorise them – client work, office administrative work, administrative support work, bookkeeping, etc.

Ask yourself what you would pay someone hourly to do each category of work. Chances are a lot of it will be $15 to $25-per-hour work.

Add up the hours. Consider what you value your time at as the owner of the business. Now work out how much you are costing the business by spending so much time working in the lowest paid sections of the business.

It is only when you can get a picture of what you are costing the business in this sense that you can come to terms with what needs to be done.

Start working on the systems in those areas and then get someone in on a part-time basis to follow them, freeing up some of your valuable time.

When you have that extra time, don’t just throw yourself into more of the same. Remember why you did it – and use the time wisely to develop some more systems that will free up more of your time, which you can then spend on activities that have significantly more value to the business.

A business is going to take a very long time getting to its objective if the owner is its most expensive clerical worker.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How can I create customer loyalty in my business?

Thursday, February 17, 2011

I have a great loan writer who looks after the majority of my clients. However, I feel as if I am losing personal contact with them. They don’t know who I am and if she leaves, she could very easily take some of my clients with her.

How do I reconnect with clients without overstepping what my loan writer is doing?

It would seem that the current client loyalty is with the loan writer rather than the business. Therefore, your task is twofold: build customer loyalty to the business (rather than you personally – because that will inhibit your growth), and get everything that happens in the sales area onto paper in the form of a system.

It’s not so much that you need to reconnect with the clients – more that you need to connect the clients with the business so that they associate the service they are receiving with the business name not just the loan writer.

There are several ways in which you can reconnect and also offer them added value service. Set up a regular form of communication with them, such as a letter or email newsletter from you. Institute a bi-annual or annual review of their portfolios at which you can become involved together with your loan writer.

Develop a status report on the property market in your state and nationally for the past and future six months and discuss the ramifications for them of the near term trends. Offer seminars on similar subjects.

In this way, you are letting them know who you are, and affirming your credibility and that of your company, and giving them more reasons to stay with the business, not just the loan writer.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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How to convert leads into sales

Thursday, February 10, 2011

One of my advisers is always returning to the office with a significant number of leads and I think we are really going to get some new business happening. Disappointingly, they all fall over and he fails to convert the leads to clients. How can I help him?

Selling isn’t about ‘selling’. It’s about uncovering the needs, finding the match, and providing a solution, or creating the value in the mind of the customer – or all three.

You have to understand that nobody wants to buy what you have to sell. They want to buy what it can do for them. If your adviser is only thinking of his commission, then he will rarely make a sale.

He needs to turn his focus to the customer’s needs and the value. What difference will your product make to their lives? Do you have any added value service features that make the difference between just making a sale and creating a client relationship?

What can you do to shift the customer’s perception of your product from that of a commodity they can get anywhere to a choice of your brand above others?

Often that’s a service or added value detail. (I bought a car because it had a picnic table. Someone else I know bought one because it had a great coffee cup holder. Go figure!)

If your adviser gets this right, they will most likely reap the rewards of loyal repeat business too, not one-hit wonder sales.

So, if you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Managing the Y of business

Thursday, January 27, 2011

I am a baby boomer boss. I have recently employed a number of younger staff in their early 20s and am finding my management style is not really working. How, as a baby boomer, do I manager these Generation Y employees?

Generation Y-ers are a fact of business life. Born between 1978 and 1994, they are the ‘now’ generation, meaning they want it in an instant – life, experience, position, salary, the lot.

The baby boomer business owner can pretend it’s not happening and just employ fellow baby-boomers – but they are getting a bit thin on the ground (and on top), or can accept, embrace the change and adapt.

Unlike the steadier boomer, the Gen Y employee will probably move on in two years – sometimes less, but don’t take it personally, because they don’t intend it to be so.

Take care to mentor, and train, not patronise or hold back as a result of knowing they are likely to move on just after you have expended great energy on training them. Get your systems in place and reduce the impact of this trend.

The businesses likely to be least negatively impacted by these moves are those that have a documented way of downloading the information from their heads and of training their replacements in a systemised way that makes the transition seamless.

Have a great recruiting and hiring system in place so when the time comes, it’s not panic stations, and you can swing into action – if you haven’t already anticipated it. Look at the areas the business could be negatively impacted by the loss of such a staff member and work out how you can minimise that through sound systems.

If you work on the principle that the systems drive the business and the people drive the systems, then your main focus, once you have the right processes in place, will be on recruiting, hiring and training.

The bottom line is, if you plan to remain in business, you will need to learn to live with the changes. They do.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

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Measuring success in advertising dollars

Friday, January 21, 2011

Each year we spend significant money on advertising (such as Yellow Pages), but I don’t know how effective it is. I feel I’m not getting commensurate results. Am I spending it in the right area and how can I get better results?

First measure your results. Do you know where your business is coming from? Is your marketing and advertising targeted towards your most likely or ideal customer?

Do you know who your ideal customer is? If not, start by creating a composite picture of your best customers. What are their likes and dislikes about dealing with businesses like yours? What are they looking for in terms of service?

What are they most likely to see, hear or read? In other words, where do you need to advertise?

Once you know more about them, put yourself in their shoes and look at your advertising from their perspective. Is you existing marketing a fit? If your marketing is random, you are almost certainly having a scattergun approach and the customers who find out about you do more by good luck than design.

Once you know your target market, you need to look at both the channel and the message. The right channel and the wrong message or the right message and the wrong channel can be a costly exercise.

If you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Related articles

How can I make my small operation a medium-sized enterprise?

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When should I hire?

How can I limit clients’ reliance on me?

How can I make time for the important things?

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Strategies for growth – who can help?

Friday, July 17, 2009

As your business grows, it should begin to take on a life of its own and unless it’s structured to do this, its ability to grow will be limited.

If you have structured your business well, it will need less and less of your input in the day-to-day technical work. Your capacity to be everywhere and do everything is no longer as important as it was in the early stages – and indeed your recognition of this is one of the factors that will allow the growth. Your role becomes more one of providing direction and identifying and developing the management skills your people need, in order for you to focus on the more strategic elements. It becomes critical that you think ahead and plan, and your planning needs to include the resources upon which you can draw.

Preparing for growth

Successful business owners and managers replace themselves with sound systems. These are processes they put in place so their replacements can replicate the tasks previously done by the owner according to proscribed standards. In this way the owner can get on and drive the growth phase, confident that the middle and lower level responsibilities are being handled.
With growth comes complexity. Production issues, financial issues, marketing issues and general business planning all require more direction from the top.
For most business owners the concept of growth usually means bigger, but this is not always the case. It can also mean better, more responsive, tighter focus on target markets, greater satisfaction, increased stability and productivity, all of which they want ultimately to lead to increased profits. Whatever your objective, it requires strategic work.
What is strategic work?
Strategic work is the work you do to define what the business should be doing to move forward, to grow, to get to the place you have envisaged it. It is the planning work you do to get it there. You created the business with an end picture in mind. And if you didn’t you should have. Without strategic work, not only do you reduce your business’ potential for growth, you run the real risk of putting its life in jeopardy.
The challenge for many owners is not that they are doing too much work, they are simply doing the wrong kind of work. They are not sure how to get out of their own way and allow others to do what they were employed to do. Strategic work includes the work you do to enable others to do the work you used to do.
Is strategic work an effective use of my time?
Who else is going to do it if you don’t?  How will the business grow without it?
Consider this: if your sales or the demand for your services were to double in the next 24 hours, would you cope? The answer is, you probably would for a day, even a week, but after that it could get a bit iffy.
Your business is an integrated set of systems; it has marketing systems, sales systems, production and delivery systems, financial systems, management systems which are all interdependent. It’s all very well to set up whizz-bang sales systems, but if the fulfilment side of the bargain can’t keep up you will end up with dissatisfied customers who may not buy a second time – and worse, tell their friends of their experience.
With growth comes the possibility of outstripping your capacity to produce and deliver in a way that is satisfying to your customer. You as the owner are responsible for taking into account all the governing factors and developing a strategy for handling the growth.
That would seem to be a pretty effective use of your time and as it’s your business, you are the one to lead this strategic work. This is what is meant by working on your business.
How can I do this all on my own?
You don’t have to do it all on your own. First recognise your strengths and acknowledge your areas of weakness.
People generally get into business because they could do ‘something’ and they were trained to do that ‘thing’ by someone else. They then decide to start their own business doing that same ‘something’ for themselves, without looking at all the support structures and mechanisms a business needs, such as management, leadership, marketing and so on.
If you can’t do a specific task, you either go and develop the expertise yourself, or you find someone who can do it for you – often more efficiently and in a shorter time. If you are not naturally a sales person and you have a growing need for new business, there is no point in trying to do it all yourself. Find someone who is good at it. Growth can be quicker that way. It sometimes appears more costly, but if it facilitates faster growth, it can be a good investment. 
A good business coach can help you develop expertise in all the key areas of a business – management, marketing, finance and production. They can assist you in learning what you need to know in order to develop the right strategies. They are not going to teach you how to do the bookkeeping, but they will help you to learn what you need to understand as a business owner to make the right strategic decisions based on what the figures are telling you.
If you are competent with the bookkeeping and have been doing it yourself, now is the time to ask if this is the best use of your time, or has the time come for you to bring in a bookkeeper, an accountant or both to free you up to do critical planning in other areas of the business?
When do I bring in other resources?
Aneta Pazeski, Director – SME Centre, CPA Australia, says the point at which a business decides to employ an in-house accountant will differ depending on many variables including the size of the business, the rate of growth and the strategic goals.
“There are no set criteria as to when a business should employ an in-house accountant,” she says. “It largely depends on how the owner wants to grow the business and the rate at which they want it to grow.
“It’s time to bring in an in-house accountant when the business owner realizes it’s impossible for them to manage the daily processes of driving the business effectively as well as managing the finances.”
When you need someone who can do more than just assist with the finances, Pazeski recommends a CPA qualified accountant who is knowledgeable in broader strategic business issues such as decision making, leadership and corporate governance.
“They are also valuable in the area of costing and pricing to improve profitability,” she adds.
Where can I get the relevant information?
For a business owner, doing strategic work assumes that they are comfortable with ‘the business of business’. That is, that they are across the underlying principles of running a successful business that can grow and is not dependent on the owner. While this is the preferred status, it’s not always the case.
You have a number of avenues, each with its own benefits.
  • Books – the business sections in bookshops are full of information for small business owners, although not always helpful in showing you how to implement the advice.
  • Business courses – local Business Enterprise Centres are a good starting point.
  • Mentoring – find someone who has proved themselves as an expert in running a successful business and ask them to mentor you.
  • Business coaching – the most effective. Seek out a style of coaching that will help you look at your business as an integrated set of systems; one that has a structured program and is not solely reliant on the personal experience of the coach. 
 
Key partners and suppliers – who are they?
Depending on the business, they could be your taxation accountant, business adviser, bank manager, solicitor, wholesaler, distributor or stock and materials supplier. The operative word here is ‘partner’. Your strategic work must include developing, building and maintaining these relationships. While your staff will also be involved with some of them, your responsibility is to maintain them at the highest level.
This list of potential key partners is as varied as the list of small business categories.

Expertise comes in many forms from many experts who have the skills you don’t.

  • Accountants and bookkeepers
  • Tax advice
  • Legal advice
  • Sales skills
  • Marketing
  • Advertising
  • Copywriting
  • Market research
  • Design
  • Engineering
  • Graphic design
  • Web design. 
 
Your exit strategy
How many people incorporate their own exit strategy when they plan what their business is to become? The answer is: very few. The exceptions are true entrepreneurs who create a business in order to increase its value and sell it. They are very clear about the purpose of creating and developing a business. What is your exit strategy? What do you want your business to do for you?
If you have read this far, it’s a given that you want to build the business. And then what? Do you want to sell it? Do you want to bring in an investor? Franchise? Bring in a management team so you can stand back and still enjoy the rewards? Pass it on to the next generation? Or do you expect to retire and shut it down when you do so?
Whatever you decide – excluding the last option – your strategic planning must incorporate it. Being clear about your exit strategy will help clarify every step you take as you create a business that can handle and revel in healthy, controlled growth.

Lesley Ann Grimoldby is the managing director of Switzer Business Coaching, a coaching business which has proven, guaranteed systems for helping business owners achieve the life they truly want for themselves through their business. Click here for a free one-hour business assessment with a Switzer business coach.

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