FOUNDATION BRICK #1 Embrace Your ROLE
The first chapter in my book,
The Five Little Business Pigs, is called
The Reluctant Business Owner – a term I believe accurately describes many small business owners including myself.
Reluctant Business Owners don't necessarily aspire to running a small business – it happened usually by chance, an opportunity presented itself or we believed we could deliver the same product or service better than our employer so we took the brave plunge and overnight became a small business owner.
And for most of us, we're great Technicians – good at a particular skill and this is what we focus on when we run our business. But having been in the world of small business for over 25 years, I (and you) know there's a lot more to success than simply having a passion for your product or service, and being great in your technical field of expertise.
We have to embrace everything which goes with the position title we hold ie Owner, CEO and probably also Manager of Sales, Finance, Marketing , HR and Systems.
Because ignoring the bits in each role we don't like to do or don't know how to do is not the answer so the choice is simple.
Either get the help you need to fully embrace EVERYONE in your role as a small business owner or engage someone to do these functions for you.
Remember: Leadership and the success of your small business starts with YOU!
FOUNDATION BRICK #2 Focus Your TIME
When I ask anyone running a small business, 'If I had a magic wand and could fix one thing into your business, what would it be?', invariably the number one answer is
'Can you please give me some more time?'.
The fact is we all have the same amount of hours in the day. Yet for many of us, we seem to drift through each day fighting fires and reacting to whatever comes through the door or on the email.
Which means we get to the end of the day and think, 'What did I even do today?'
And we all know staying in reactive mode and band-aiding is no way to run a simple profitable small business.
But if you've been doing this for so long, often you don't know how to break the bad habits.
If you truly want to get on top of things so you stop feeling burnt out and instead start feeling back in control, there is ONLY ONE THING YOU NEED TO DO.
STOP!
Now before you scream at me – I don't have time to STOP Tamara!, here's my question to you:
How's that working for YOU? (Thank you Dr Phil for the line!)
My experience tells me not very well because I'm constantly talking to and helping too many people working in small businesses who are frustrated, confused and overwhelmed with everything they have to do already; and yet, they are asked to do more and more and more.
Result: Overworked people (which is probably also YOU) who don't love coming to work, are over your business and not much fun to be around.
AND mistakes continue to occur, deadlines are missed, customers aren't provided with great service etc (I could go on).
So isn't it time (pun intended) to get off the merry go round once and for all, and look at different ways to manage and focus your time so you're back in control rather than everyone and everything driving your small business?
FOUNDATION BRICK #3 Design Your SYSTEMS
W Edwards Deming tells us ninety-five percent of all failure is a result of the SYSTEM, not the people.
So why does the rhetoric not match the facts?
Why do we continue to blame the people for what's going wrong in our businesses?
Because it's easier than doing what really needs to be done (and we think it's the right reason but it's not).
AND because we forget the most important reason of all:
SYSTEMS ARE ALL ABOUT CHANGE so we have to help staff through the change management process of designing and implementing simple systems.
Most small businesses have policies and procedures and yes, they may have gotten them through the first few years when your team was small and everyone knew how to do EVERYTHING, but that's NOT why you write them.
You write simple procedures (ie get the knowledge out of everyone's heads including your own) so ANYONE can follow the procedures and keep the work and business moving forward.
Otherwise.....
• no one can be sick (which means no contact with the office – no phone or email)
• no one can have a day off or a true holiday (which means no contact – no phone or email)
• staff can't move into other roles (which means they will probably leave out of frustration)
• the business can't grow, can't cope with unexpected growth or be sold (at least not for the value it should be).
So if you want to grow and/or sell your business; AND mitigate the risk of knowledge walking out the door, you have to start documenting what you do and how you do it – otherwise the consequences may be catastrophic.
FOUNDATION BRICK #4 Guide Your PEOPLE
Ask anyone about managing people or 'having staff', and most will roll their eyes and start on a huge rant about their staff not doing what they are asked.
The response usually includes comments like 'I thought my staff would help me but I spend all day dealing with their problems so they're just costing me money', and 'Why won't they do what I ask?' and 'Why do I have to keep chasing them?'.
Most people running small businesses believe their main problem is their staff, but it's not.
Initially, it can either be:
• an issue within the business itself
• lack of simple systems because the knowledge remains in people's heads
• procedures so complicated that no one follows them
• lack of leadership to make people accountable and responsible for their actions
• or a combination of any or all of these.
Staff crave clarity so they know what they have to do, when and why.
And yet, this is the area in which most people running small businesses fall down.
Why?
Because they believe telling people (with little or no support documentation) is the best way to train people. To which I will always ask, 'So how good is your memory?'.
Because they don't want to take the time to truly induct and train people in how things happen here, and then wonder why people struggle and don't feel confident enough to ask for help.
Because they believe giving people deadlines and making them accountable for them will create conflict (which it won't if done correctly), and so they let things slide because they're too nice.
People running small businesses are passionate about helping their customers and yet, most fall down when it comes to helping their own staff.
You have to be the LEADER of your small business and provide staff with the support and guidance they need to do their jobs correctly and enjoy their work.
So isn't it time to start giving your team the tools and support they need to succeed?
FOUNDATION BRICK #5 Constantly Renovate Your BUSINESS
The best and quickest way to renovate your business is to do ONE THING.
Stop being everything to everyone
At first, this statement may appear counterintuitive.
How do you boost your income by saying NO to customers and opportunities?
The fact is, if your Marketing and Sales Strategy is to say YES to anyone with a heartbeat and a wallet, you will suffer greater customer attrition and lower profits than a small business which is more selective with their marketing strategy.
This is a quality verses quantity argument and it's the first thing I look to rectify when I start coaching a Small Business Owner, CEO or one of their Managers.
Here's why...
When you focus on customer volume and ignore the issue of customer quality (by choosing the right type of customer), you will typically experience one or more of these issues:
• Customers unable to pay on time
• Customers turning up late to meetings, cancelling at the last minute or forgetting it was on
• Customers unwilling to follow agreed processes and deadlines
• Having to constantly chase customers for agreed information/paperwork
• Customers constantly complaining to you about what you haven't done (and not in the signed service agreement)
When you work with the wrong customer, you pay a big price. The price you pay is typically much higher on your business than it may first appear.
The wrong customers cost your team time. They soak up your business' resources and the energy they drain from your business is seldom negated by the income they produce.
Whilst this idea might be well intended and your desire to help everyone is part of your nature; ultimately the 'Say YES To Anyone' Strategy will, in the long run, slow and often halt your business growth.
The first step to improving your marketing process is to define the niches (ideally no more than 3) you work in and identify what the 'ideal customer' looks like for each of these areas.
So isn't it time to really look at your customer database and start mining the gold which is there from people who know and trust you?
