Mike Michalowicz's Blog, page 100
January 19, 2015
Episode 11: How to Profit As A Life Coach With Rick Clemons
Life Strategist and Entrepreneur Rick Clemons joins Episode 11 of the Profit First Podcast. Rick explains how staying true to yourself will lead to many different forms of success.
Our Guest
Rick’s a professionally certified coach, internationally syndicated blogger, author of Frankly My Dear I’m Gay, and an expert at waking people up to live their truth. He’s taken the lessons he learned as the son of a carpenter to become a closet buster and life renovator in his own right.
Snatched up as a Coming Out expert by the Ricki Lake Show, Huffington Post Live, and YourTango.com, Rick is the guy behind the Just Be You Revolution, a movement that’s challenging everyone from every walk of life to stop pretending and start living.
His quick wit, loving sarcasm, and jaw dropping questions take readers, audiences, and clients out of the numbness of living pretend lives, into the raw truth of being fully self-expressed in life, love, career, and business.
Breaking all the rules, Rick’s mastered the art of conception, bringing two beautiful daughters into the world, even though he’s gay; he’s an avid distance cyclist who’s built like a line backer, a singer who only performs when he teaches spin class, and a world traveler with a shoe fetish that would make Carrie Bradshaw swoon.
Show Quotes
There is a trigger that triggers every one of us in every aspect of our lives.
As you come out, so do the people around you; they come out as individuals who now have a gay member of the family, but then they also start to come out to themselves and who they really are.
If you make the decision to give up what you know, the beautiful thing is when you commit everything else starts to fall into place.
I need to go do what i’m passionate about. If you are leaving a job, don’t leave your clients hanging; package the message with a new solution.
When determining your prices, base it on how you would buy something personally.
Everyone has the right to be themselves and come out of whatever closets they have in their lives.
Show Links
Rick’s Website: www.rickclemons.com
Show Sponsors
Nextiva – VOIP phone providers for small businesses.
Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches.
TSheets – The #1 customer rated time tracking solution!
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January 16, 2015
Quick Fixes To Skyrocket Productivity
You can install apps for it, buy books about it, and make resolutions to improve it, but the key to improving your productivity is actually pretty simple when you reduce it to the proven techniques. Sure, we’re all busy, and we have more items on our to-do lists than there are hours in the day. The solution to being overworked and overloaded is out there, though. It’s all about minimizing distractions and prioritizing effectively.
Here are my secret fixes when I find myself in a cycle of unproductive behavior and have trouble getting focused properly:
Walk away. Literally. Fight inertia by getting up and taking a walk. Physical activity will help you refresh and reset your brain, and a change of scenery can do you a world of good. If I’ve been working in my office for several hours, I find that even moving down the hall to a conference room can help me get refocused and back to work with renewed vigor. Stretch your legs, get your blood moving, and you’ll discover that you’re better able to handle complex tasks.
Sort tasks on $, smileys, and infinity signs. Everyone I know has to-do lists that never get completed. The key to real productivity is attacking your list with a plan to accomplish the most important tasks first. Mark tasks that directly bring in money with a $, tasks for existing clients with a smiley, and tasks that will become automatic – systems that will be able to run themselves after you complete them – with an infinity sign. Some of your tasks will have all three — $, smiley, and infinity signs, and those are your top priority. Making money, keeping your clients happy, and building systems that run on autopilot should be the tasks you tackle first, leaving the least profitable tasks for after you’ve crossed off all of the $, smileys, and infinity signs.
Use a pen and paper. Going old school can be the ideal solution when you’re stuck in a rut, especially if you’re overworked. Just like a change of scenery can help you focus better, using different tools will get your mind working differently. Try brainstorming or composing the old fashioned way when you’re looking for new insight or if you’re stuck on a problem. Jotting down a quick note can help you resist the temptation to piddle away your time by using unnecessarily complicated applications to track your progress or collect your thoughts. Frequently, simple is better.
Put the pressure on. If you agree to a deadline, then you’re motivated to keep your promise. Pressure can be a good thing, and you’ll surprise yourself at how quickly you can knock out that project you’ve been putting off when you’ve put your reputation on the line.
Get someone else involved. Find a coworker to collaborate with, and you’re making yourself accountable in a way you’re not for solo projects. If you’re committed to follow up and report on the status of a project, then you will manage your time differently. Not only will you feel the pressure of your coworker’s expectations, but you will also benefit from the fresh perspectives offered by your colleagues.
Delegate or subcontract. When you find yourself getting bogged down with tasks that don’t suit your skillset or prevent you from dealing with your $ and smileys, farm those tasks out. If you’re in a small office (or even at home) you may have to get creative when it comes to delegating. My favorite solution is Elance – an online marketplace that connects you to contractors who are freelance experts in their fields. You post your job, hire your expert, and get back to the work that makes you money. Elance and other freelance marketplaces give you access to a full staff without the expense of paying full-time wages. If you do have staff in your office, use their skillsets to magnify yours. Letting your staff work to their strengths not only yields a better finished product, but you’re also certain to boost morale as well.
What all of these tips share is the means to get you focused on what’s most important and the best use of your time and energy. We all get overwhelmed from time to time, and running through a checklist of options for streamlining your day can be just the solution you’re looking for.
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January 15, 2015
Stop Employee Turnover In 3 Simple Steps
You know the only thing that’s more expensive than hiring, paying, and training new employees? Losing an employee and having to do it all over again. Over and over I see that improving employee retention is one of the smartest and most fiscally sound moves any business can make. The trouble is that it can keep forever may quit on short notice and leave you with a void in your company. As usual, a little planning can go a long way to reducing employee turnover and keeping your staff stable and productive.
STEP 1: Hire into your culture.
Here’s a secret: turnover can start on a new employee’s very first day! Rather than hiring only for a particular skill set and hoping that the qualified applicant will find a way to fit into your company, you’re far better off hiring someone with aptitude and who also fits into your existing company culture. You can train folks, but you can’t alter their personalities. Is your business light-hearted and fun? Hiring someone who’d find a nerf gun battle inappropriate may not work out long-term. Is your office buttoned down and no-nonsense? Hiring someone whose idea of business casual means having to put on shoes may be a mistake. Hiring into your culture means that you must first understand the climate you’ve created, and then you need to work on matching your prospective hires with your environment. Remember – turnover is gradual. That “last straw” moment only tells part of the story, and you’re better off if you hire staff who’ll fit in seamlessly.
STEP 2: Treat your staff like gold.
Ideally – once you have a solid staff established – the only reason your employees should want to leave is if they’re not sufficiently challenged. Realize that top employees are worth landing and research the industry standard in terms of compensation … and then exceed that standard. One highly-paid, really great employee can be a much better value in the long run than three entry level, mediocre ones, so it’s worth your while to ensure that those top hires are satisfied. Top employees give you efficient work, satisfied customers, and peace of mind, and if you look at your bottom line, factoring in things like how much time and money you’ll lose if you have to replace one of your rock star staff members, you’ll often discover that investing heavily in your staff is the wisest choice you can make.
STEP 3: Open an honest dialogue.
Change is inevitable. Your employee’s lifestyle and needs may change. You may decide to shift the direction you’re taking your business. Change can be exciting, but it can also be stressful, and it can alter other aspects of your business. They key to retaining great employees through your business’ permutations is to ensure that information flows freely and honestly – in both directions. Keep your staff informed about where your company is headed and keep your eyes and your ears open for concerns and long-term patterns among your staff. For example, if you notice that you tend to lose staff at around the two year mark, you need to examine the causes. You need to check in to make sure folks aren’t overloaded and on track to burn out. Honest communication is the foundation of solid business relationships, and mutual trust yields honesty and loyalty – in both directions. Make sure your staff knows that you value their contributions and you think enough of them to keep them in the loop in terms of what’s ahead for the company.
Given the relatively high unemployment numbers, you can certainly find staff who are willing to do a job on the cheap. But when you factor in the costs associated with hiring and training new staff, you see immediately that it’s a much better long-term decision to find, hire, and retain the best people, even if that costs a little more in terms of payroll. You’re hiring more productive staff, and you’ll realize long-term benefits in keeping them satisfied. Is there a place for short-term labor? Sure, but make sure your key positions are filled with well-compensated staff who know their value to you and your company, and who are invested in an honest relationship that’s mutually beneficial.
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January 14, 2015
6 Tips For Writing A Highly Persuasive Proposal
Whether you’re selling something that costs $1000 or $100,000, putting together a compelling proposal is time consuming and can be intimidating. Writing that proposal, though, and taking the time to do it right, may be the most productive use of your time. Don’t make the mistake of carelessly throwing a whole lot of facts and figures at a client and hoping you will magically walk away with a sale. Consistently using a formula for building a compelling proposal will improve your sales and make you much more confident.
1. Use the power of comparison. Try this experiment – find one of those ads that uses before and after pics to demonstrate the effectiveness of a product and cover up the before pic. You’ll discover that the after picture isn’t nearly so compelling without the comparison. That contrast – the shock value – is incredibly compelling, and you can use that to your advantage in every proposal you write. Say that your client needs to spend $9000 to update his computer system, and you know that he’s going to think $9K’s a lot of money. Start your proposal with a $100,000 option – one that includes everything and a kitchen sink, so that when he gets to the $9K option, it looks like a great deal. He’ll feel much better about parting with the $9000.
2. Offer 3 choices. Customers want to feel like they’re in control and that they have choices. If you give them just one or two options, they feel backed into a corner, and they may decide to wait, rather than selecting from the option or two that you provide. If you offer too many choices, though, then your client may suffer from analysis paralysis – the inability to meaningfully differentiate among a confusing array of options. Three is the perfect number of choices. Your client will be able to feel good about their decision, and they’re more likely to be satisfied when it’s all said and done.
3. Start high, and go lower. Always start with the highest priced option and work your way down. Odds are that no matter what price you start with, your client may experience some sticker shock, and what you don’t want is to build unpleasant anxiety by escalating prices. When you start with your highest priced option and decrease prices, you’re creating a sense of relief. By the time that your client gets to your second and third options, they sound like a great value compared to the higher priced first option.
4. Use “investment” rather than “cost,” “fee,” or “charge.” Choosing your words carefully means evaluating the connotation of words and using them to your advantage. “Investments” pay off. “Fees” are money you never see again. The differences are subtle, but very important in terms of client satisfaction.
5. Never use price ranges. When you tell a client that it’ll cost them somewhere around $100-$150 to have their office cleaned once a week, you’re setting both you and the client up to be disappointed. You feel like you’ve just landed yourself a $150 job, but the client hears that it’s a $100 job, and if you come in $1 over that $100 price, they’ll be disappointed. Rather than using a range that makes both parties feel less than satisfied, throw out a specific price and be prepared to negotiate it. If you quote the client at $150 and they talk you down to $125, then they feel like they’ve gotten a good deal, and you’re better off than you would have been if you’d charged $100.
6. Personalize the benefits. Use the word “you” when you talk about the benefits your client will receive, and distance them from the “investment” portion of the proposal by discussing the cost to their company. For example, “You’ll have a sparkling clean workplace, and the investment for ABC Company is only $125 per month.” Or “Clients typically invest about $125, and you will be amazed at the difference you see.” Make the benefits personal and the investment impersonal.
The more you practice this formula, the more adept you’ll become at creating a proposal that both wins clients and makes those clients feel good about having given you their business.
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January 13, 2015
The HartfordVoice: Post Recession: What Small Business Owners Learned
A 2014 The Hartford Study finds that 77 percent of small business owners are feeling successful. Entrepreneur Mike Michalowicz explains what the secrets to that success are and the key lessons learned from the last recession.
Watch The 2 Minute Video Here
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January 12, 2015
Episode 10: Profit And Sales Management With Sharon Marrell
Instrumental Teacher and Business Owner Sharon Marrell joins Episode 10 of the Profit First Podcast. Sharon shares how to improve inventory sales in your retail space.
Our Guest
Sharon Marrell is the owner of Marrell Instrument Repair LLC in Lakewood OH. She has taught instrumental lessons for over 35 years and repairs musical instruments. She speaks at conferences providing band directors with tips and techniques on instrument repair.
Sharon is the Lakewood Chamber of Commerce 2014 Outstanding New Member and chairs the Education Committee providing workshops for local business owners.
Sharon is also Certified Profit First Professional Coach.
Show Quotes
Having a small retail space helps limit what you put out on the sales floor, and prevents going overboard on purchasing.
Buying for the customer, knowing what they want – that’s what you should have in stock. Don’t stock up for that one person that comes in twice a year, or buy items because it’s what you like.
When you have too much inventory and too much set on the shelves for a long period of time, it weighs you down. Get rid of the stagment inventory through creative sales or take the loss – just get it out of there. Even selling an item online is a quick way to get some income in. Then replenish with what the customers want.
When working in close quarters with your competitor, it helps to reach out to the community. Pay attention to the customers that your competition is not. Offer faster service with quality.
Show Links
Sharon’s Website: www.marrellinstrumentrepair.net
Show Sponsors
Nextiva – VOIP phone providers for small businesses.
Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches.
TSheets – The #1 customer rated time tracking solution!
The post Episode 10: Profit And Sales Management With Sharon Marrell appeared first on Mike Michalowicz.
January 9, 2015
Empower Any Employee With 3 Questions
You can’t do it all by yourself. I don’t care how brilliant you are, at some point, if you want to scale up your business, you’re going to have to trust and empower your employees to make key decisions for you. It’s tough. I know it is, but it’s also necessary if you want your company to grow.
The reluctance to empower your staff can be the single factor that limits your growth if you don’t find a way to overcome that reluctance. Yes, mistakes will happen. (Here’s a hint, though – you make mistakes too!) At some point, you’re going to have to take a deep breath, implement fail-safes that mitigate your risk, and you’re going to have to trust your employees to make decisions.
It’s important, though, that you give your staff a process for making good decisions because the choices your staff makes will affect both your company and, by extension, their job security. Good decision making isn’t necessarily intuitive, and if you want your company to thrive, you have to prepare your staff for their roles as corporate decision makers. You have to teach them the steps they’re to follow in determining if any given project should get the thumbs up. I’ve found that the best way to help guide your employees is to teach them to ask these three questions:
1. Does this decision further distinguish our company’s uniqueness? I’ve gotten some strange looks when I’ve explained this first question, but there’s a reason that it’s so important. Your company’s uniqueness is your edge. If you water it down, you become invisible to prospects, and that’s fatal. Now in order for your employees to be able to answer this question, you must first ensure that every single member of your company understands your competitive edge – what makes you different from every other company in the world. Only then can you trust your staff to make decisions that preserve or promote your uniqueness. If your employees can’t answer yes to this question, then they have to stop. They can’t proceed any further unless and until they can rework the decision so that it does, in fact, further distinguish your company’s uniqueness.
2. Does this decision further serve our best clients? I’ve seen it happen far too many times – a company does something really well, and in the struggle to grow bigger, loses sight of the reasons why customers flocked to them in the first place. Customers = revenue. We can’t ever, ever forget that key fact. We must always keep our focus on retaining our best customers while attracting new ones. If your employee can’t answer yes to this question, again – they’re stuck until they can.
3. Does this decision maintain or enhance profitability? It’s pretty simple: if you’re losing money, you won’t last. Every single decision needs to be able to pass the profitability test, or it’s dead in the water. If a decision doesn’t make fiscal sense, then it needs to be reworked until it does.
These three questions get at the core of your business’ best interests. If your staff carefully, thoughtfully considers your company’s uniqueness, its best customers, and its profitability with every single decision they make, then your business is in good hands. If you train your staff (and by the way – bonus – you’re training yourself as well) to make reasoned, sound decisions, then you’re free to move on and work on other aspects of your business.
Another important aspect of this process — training your employees to move through these three questions – is how you handle decisions when the answer to one or more of the questions is no. Great opportunities don’t just fall into our laps. Fortune favors the bold, and sometimes we have to put in some effort to shape an opportunity to become a better one.
If you’ve given your staff the authority to make decisions and you’ve given them to tools to make those decisions good ones, then you’ve also got to trust them to be able to reframe or rework their ideas to make them good for your company. When you have staff who knows that their judgment and input is valuable to you, then they’ll feel some of the pride of ownership that you do as well.
And that’s exactly what you want in a decision maker.
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January 8, 2015
7 Steps To Get Your Company Acquired For Big Bucks
I’ve sold two companies, and the sales were vastly different experiences, with wildly different results. When I was approached about the sale of my first company, I wasn’t looking to sell. I loved what I was doing, and the company was very attractive to the person who ended up purchasing it. I made big bucks off that first deal.
Fast forward a few years to the sale of my second company. My partner and I were very motivated to sell. We were actively soliciting investors, and what turned out to be a very long process was ultimately not very profitable for us. We didn’t make as much as we’d hoped to.
The lesson: Desperation isn’t attractive. If and when I ever sell another company, I’ll be much better prepared to maximize my profitability by following these steps:
1. Realize what acquirers are looking for. People buy companies for a number of different reasons, and if you can figure out what your buyer wants, you can position yourself to your advantage. Some purchases are strategic acquisitions – your office cleaning company (with its client list and equipment) is attractive to a home cleaning business looking to expand. Other purchases are defensive – your company is the chief competition, and buy purchasing you, your competitor is poised to dominate the marketplace. Other purchases are simply to generate revenue – allowing the buyer to streamline processes and cut costs by consolidating. Find out what your buyer wants.
2. Know that it’s a long process. My first sale – the most profitable one – took two months. I blinked and it was over, but that’s most definitely not the norm. My second sale took eight long months (that felt like eight years.) A process that long can put your business in serious trouble if you concentrate all your energy on pushing the sale through, rather than maintaining and growing your company. Sales do occasionally fall through, and it’s essential that you have an exit strategy – a plan B in the event that you can’t make the sale.
3. Get as many bidders involved as possible. Ever been to an auction and seen people get so involved in the thrill of bidding that they end up blowing their budget just to win the contest? Bidding (and buying) is an emotional process, and you can use that drive to win to your advantage.
4. Get an investment banker or a business broker to handle the sale with you. Your business is your baby. You’re emotionally wrapped up in it, and since you’re going to be working to keep that business profitable during the process of the sale, you need someone who’s more detached to keep an eye on the maximum return. A banker or broker will get you a premium price and let you keep the business alive.
5. Profitability is key. Lots of things go into establishing the value of a business – innovation, intellectual property, client base – but by far the most important element is the proven profitability of your company over time. You want a steady, strong history of making money. Minimize unnecessary expenditures and maximize your company’s profitability, and you’re improving your chances of selling for big bucks.
6. The riches are in the niches. If you’re providing a unique service to a dedicated, loyal group of satisfied customers, you’re poised to cash in big. It’s much harder for a bigger business to swallow you up on the cheap if you’re thriving in a niche market.
7. Make yourself dispensable. If you can subtract your ego and your involvement from your business, you’re adding to its value. Your business is much more valuable if it can run without you. Start scheduling and taking vacations and force your business to flourish on its own, demonstrating that the company will continue to thrive even after you no longer own it.
So here’s the secret to all of these steps: these are all things you should be doing anyway – things that make your company more efficient and profitable whether you plan to sell it or not. Your goal in prepping for the sale of your company should be to whip it into the best shape you can in order to boost its value. What you don’t want is to spend months trying to push for a sale and watch your business wither from neglect, only to have the sale fall through and leave you with a worthless business. Your best bet is to continue to grow your business, right up until the day you get that big check and hand over the keys.
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January 7, 2015
Find Great Talent With These 10 Interview Questions
While folks seeking employment may spend hours prepping for their interviews, the failure to adequately prepare typically comes on the end of the person asking the questions. Your staff can be your greatest strength or your greatest liability, and we owe it to ourselves and our businesses to take the time to find the most talented employees who are also a good fit for our business model.
Prospective employees prepare canned responses to the questions they think you’ll ask. Their goal is to make themselves look good – to amplify their strengths and minimize their weaknesses. Your goal should be to set up a discussion that reveals patterns in their behavior and predicts how they’ll fare in your company. Past behavior predicts future behavior. Set yourself up to collect some honest, thoughtful responses that will give you a better idea of how each candidate will actually perform.
1. What is your purpose in life? Most people haven’t thought about this question, and if they haven’t, then they’re far more likely to be working solely for the money, and you will know that they’re more likely to jump ship for a chance at more money. Since staff turnover is so expensive (in terms of both time and money,) one of your primary goals should be to define which candidates have long-term potential.
2. How do you make decisions? What you’re looking for in this instance is thought patterns. Ask your candidates to take you through their decision making process, and then ask them for examples of decisions they’ve made. Check to see if their real-life decisions are made by employing their process. You’re looking for consistency between what your applicants say and what they do.
3. Show me how… Ask your applicant to demonstrate one or two of the tasks they’ll be performing for your business. How do you answer the phone? How would you try to sell me this product? How would you edit this document? How would you handle this programming need? Even though the candidate may feel self-conscious, you will gain valuable insight into the ways they perform.
4. How did you go about researching our company? This question lets you immediately differentiate between casual applicants and those who are authentically interested. A candidate who takes the time to learn about your company and its goals is serious.
5. Tell me something about me that you think is interesting. Following up on the previous question, you’re sifting out the applicants who haven’t bothered to learn about your company and the goals of its founder. You’re also putting the applicants on the spot and creating an opportunity to see how they think on their feet.
6. What have your past bosses been like? This question will give you an idea of how candidates relate to authority and will tell you how each candidate likes to be managed. Again, remember that what you’re looking for is patterns in behavior. The tale of one horrendous boss may not indicate trouble, but a litany of gripes about every supervisor indicates a potentially problematic relationship with authority.
7. What is your greatest fear about this position? The goal of this question is two-fold. First, you can weed out candidates who aren’t entirely honest. Any applicant who claims to have no fears isn’t being completely truthful. Second, you’ll be able to identify each candidate’s weaknesses (and they all have ‘em.) Identifying weaknesses gives you another measure of comparison among candidates, and it can even help you get your new staff member started off right by focusing on the areas about which they’ve expressed concern.
8. If money were no object, what would your ideal job be? Ideal candidates will be working in – or working toward – their ideal jobs. If the position you’re hiring for has no relationship to the ultimate goals of your applicants, then they’re unlikely to be dedicated, long-term employees. If, however, your job is a step toward what they want to be doing, then even though you may not keep them forever, you’ll get great results from those employees who will continue to work in your field.
9. Who are the biggest jerks you’ve had to deal with in life? The answers to this question reveal how your candidates see other people. It reveals how they label others and whether they accept responsibility or shift blame. What you’re looking for is how each candidate resolves the conflict that’s inevitably going to occur.
10. What parts of work drive you nuts? The question gives you another way to get at each applicant’s weaknesses. The parts of work that we find frustrating highlight our weaknesses and ways in which we struggle.
Keep in mind that it’s not necessarily a specific answer that qualifies or disqualifies any candidate from employment, but that you’re looking for the employee who will be the best fit for your company’s culture and goals. You’re looking to anticipate future performance and hire successful, long-term staff. With that goal in mind, I strongly advise hiring for every position on a test or trial basis. If after the trial period – say three months – you decide that the employee is a keeper, try this bonus tip: Invite them to leave with a $500 check in hand, or stay for a full-time position. The employee who takes the $500 check relieves you of the future expense of time and money that’s associated with further training, while the employee who rips up the check demonstrates the commitment to you and your company that indicates dedication and long-term success.
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January 6, 2015
How To Destroy Employee Loyalty
I had dinner a few nights ago with a friend who works for a Fortune 500 company. He’s been looking for another job for nearly two years now, and he told me that he’s been so unhappy – so mentally checked out – that he’s been doing the least amount of work that he possibly can while still going unnoticed. He’s basically dead weight, and he knows it. In his long list of valid complaints about his company, I realized that there’s a recipe for widespread employee dissatisfaction – the penny wise, pound foolish things that employers do without realizing that they’re driving their talented staff away.
If your goal is high turnover and saying goodbye to your best employees, then follow these guidelines:
Require 24/7 access. You – as the business founder and owner – may choose to eat, sleep, and breathe your business, but you’re crazy to think that your staff wants to live that way. We need rest and relaxation to perform our best, and requiring that your staff be on call and available around the clock will inevitably produce resentful employees. Give your employees time to recharge and enjoy their private lives.
Require your staff to do work they suck at. One of the biggest mistakes I’ve ever made was failing to assign the right duties to my employees. If you take the time to match your staff with responsibilities they’re good at, everyone will be happier. The quality of work your staff produces will be higher, and they’ll feel more competent. Pushing an employee in the name of stretching their talents isn’t necessarily in your best interests as an employer.
Refer to your staff as “human resources.” I kid you not, I just observed a meeting in which a manager lamented the fact that his company was “low on human inventory.” Nothing makes your staff feel unappreciated more than realizing that you think of them as a resource rather than as a human being. Your staff is composed of people, not raw materials. Treat them like human beings. Learn their names, and for God’s sake, don’t ever refer to them as “inventory.”
Expect your staff to make the company part of their social life. There should be something like the separation between church and state in the lives of your employees. Don’t overreach the bounds of your business by expecting to see Facebook updates revolving around your company on your staff’s personal pages. Not only do they have a right to their private lives, but you also don’t want the hassles of inappropriate posts that involve your business.
Blame the rules. If you’re using the rules to cover for your inflexibility in work situations, then you’re missing out on one of the chief benefits of being the boss. You get to make – and change – the rules! If you’re privileging the employee manual over the employee, then you need to reexamine your priorities. Evaluate the situation and make good decisions rather than blindly following rules that may not be in your company’s best interest.
Ask for input and ignore it. If you’re going to solicit or require input from your staff, then you owe it to them to consider that input. While you may not implement all of their suggestions, it’s important to let your staff know that you value their insight and perspective.
Focus on money as the primary motivator. Money is the least effective and most expensive motivator when it comes to employee retention. If you’re simply shoving money at your staff – money that they use to fund their personal pursuits, you’re missing an opportunity. Focus on finding challenges that yield fulfillment and a sense of purpose. You’ll find that these abstract factors are actually more important in retaining employees than you thought.
Put your company ahead of your staff. If you’re focused on the bottom line rather than the people who help you bring in revenue, then you’re likely to watch those people walk out the door. Support your staff. Protect them, and they’ll reward you with long-term loyalty. You’ll eventually realize that protecting your staff is also taking care of your bottom line.
Attracting and retaining great employees is perhaps the single most important challenge you face in building a healthy business, and your decisions have a huge impact on your profitability. Quibbling over the cost of a ream of paper is small potatoes compared to the impact that a dissatisfied employee can have on your client relations. You want your customers to trust you with their business, and one of the best ways to demonstrate your trustworthiness is by creating a climate in which your staff knows their value to you and feels like a part of a team.
Disgruntled employees can hurt your business, whether they’re actively sabotaging your company or merely presenting a lousy attitude in their dealings with clients and fellow staff members. Investing in your staff and their satisfaction is one of the most profitable decisions you can make.
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