Mike Michalowicz's Blog, page 69
March 23, 2016
Episode 73: From Loss to Profit with Dr. Sabrina Starling and Chuck Parmely
Show Summary
Chuck Parmely owns a $3.2 million dollar overhead door business – which sounds like a wildly successful business until you find out that his company has been in existence for 37 years, barely scratching 1% to 3% profitability; in other words, his business wasn’t making any money and surviving check by check. Chuck has implemented Profit First under the direction of Dr. Sabrina Starling and subsequently, a business that had a $20K loss in 2014 turned around and achieved a $220K profit in 2015, and 2016 is looking even better… all while in a rural area that was experiencing an economic decline. Chuck’s success story has been so impressive that his accountant went out of their way to call him and figure out his formula to success… and that’s what you’re about to find out! Welcome to Episode 73 of the Profit First Podcast!
Our Guests
Chuck Parmely is 57 seven years young and has run his business for the last 37 years. He has been working in the industry since he was 10 years old. This is the one and only job he has ever had, but has worn the hat of any position from janitor to the CEO – so he know this business inside and out. You can learn a lot from the school of hard knocks, but somethings have to be taught. Like knowing you can’t do it all by yourself.
Dr. Sabrina Starling, The Business PsychologistTM, is the author of the soon-to-be-released book, How to Hire the Best: The Rural Small Business Owner’s Ultimate Guide to Attracting Top-Performing Employees. The strategies Dr. Sabrina teaches work consistently across industries, even for business owners who have struggled for years being understaffed.
Dr. Sabrina recognizes that employee problems can be one of the biggest stumbling blocks for any business owner. With her background in psychology, and years of driving profit in small businesses, Dr. Sabrina knows what it takes tofind, keep and get exceptional performance out of your biggest investment–your employees. Access her 5 Secrets to Exceptional Employee Performance (her gift to you!) at www.tapthepotential.com
Show Links
Sabrina’s Website: www.tapthepotential.com
Chuck’s Website: www.overheaddoorriverton.com
Chuck’s Facebook: Overhead Door Co. of Riverton / Lander
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Mike Michalowicz will be speaking at Scaling New Heights 2016 ( #SNH16 ) at the BEAUTIFUL Atlantis on Paradise Island in the Bahamas!
May 22-25, 3016
For more information on this conference and to register, click here!
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Corporate Partners
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!
Fundbox – the simplest and fastest way to fix your cash flow by advancing payments for your outstanding invoices.
March 22, 2016
The Rise Of The Micro-Enterprise
Micro-enterprise has a pretty nice ring to it, doesn’t it? It even sounds like you’re part of something bigger than your office-in-a-box, because you are!
Would you believe that around 87 percent of all businesses in the United States are considered micro-enterprises? It’s true, according to the Association for Enterprise Opportunity. With 24 million micro-enterprises in the country, there’s a good chance that yours is one of them, which is actually a really good thing!
Micro-enterprises are great for many reasons, including such things as:
The low start-up costs involved. While $35,000 is the cap to be considered a micro-enterprise, many are started with much less, sometimes with no more than the change you find in the couch or have socked away for a rainy day!
The low overhead that you usually have once you do get started. With less than five employees, or being the only employee, you don’t have to worry about meeting a big payroll each month or paying huge health insurance premiums for your team. You can put a desk in the spare bedroom, or in the kitchen or basement, hang up a white board and call a box your filing cabinet and be totally cool.
You can easily capitalize on one of your talents and make it your source of income. Doing this with larger businesses is much harder because you have to convince investors that your talent is worth their funding.
The Internet has made it easier to reach your audience. No longer do you have to try to sell to only those in your city, or compete with entrenched and long established stores. So the possibilities are endless!
Kudos, Fellow Micros
Micro-enterprises are all over the place! Some you see, some you don’t. The not-so-obvious ones are run out of homes, cars, or in backroom offices. They may be the daycare center down the road, the cookie or cupcake maker who sells their product each week at the farmer’s market, or the online used bookstore that specializes in Civil War period books. There are micro-enterprises selling honey from their beekeeping hobby, produce from their gardens or grooming dogs out of an RV.
Together they are people who are fulfilling their dream of owning their own business, doing what they love. Collectively, they make up the largest area of business in the country. And because they rock, their popularity will continue to grow!
If you are a micro-enterprise owner, you should feel good about it. After all, you are part of the backbone of this country. You may feel like a small piece of the pie, but when you really look at it, by being a micro-enterprise owner, you fall into the category that makes up nearly the whole pie!
For those that haven’t yet started their micro-enterprise, now is the time! And shooting for a micro-enterprise is a smart move. They are an important part of the economy in this country, as well as around the world. So dig around for that pocket change, tap into your talent, and start running your own micro-enterprise!
March 21, 2016
Episode 72: The Irony of Success and Profitability with Matt Shoup
Show Summary
Matt Shoup joins Mike Michalowicz, Kristina Bolduc and Chris Curran to share his story of how he went into his business with $170K of debt and turned it into a multi million dollar practice – and in the process became affluent on his own accord. In this episode Matt shares the secrets to becoming successful… the irony is, when it comes to making that first sale (or any subsequent sale), shiny brochures and great references are of no importance; It’s all about finding a common bond with your client. Additionally, Matt explores the game of numbers and how calculating it in a couple dog bites guarantees you a sale. Matt also talks about the power of getting out of your own business and letting the true pros/colleagues run the show. Welcome to Episode 72 of the Profit First Podcast!
Our Guest
Matt Shoup exists to inspire and ignite small business leaders to own and live their life with excellence. He does so (while high on Spanish coffee) by writing books and speaking about winning shiny trophies, painting babies, and throwing stones at giants. In his spare time he starts fights with grown men on purpose and posts the videos on his website. Quick highlights of Matt‘s life:
Thrown out of:
– 6 schools: 2 in New Jersey and 4 in Colorado,
– 2 banks
– 2 bars in Mexico
Has accidentally:
– ordered a “vanilla vagina” from a woman in a Spanish McDonalds (she asked for here or to go)
– painted a house without asking first (the color was so awesome though)
– painted a customers baby without asking first (pissed off baby, very pissed off Mommy)
Magic Money Powers:
– March 2005 was debt $160,000, turned his last $100 into $1.2 Million in 3 years
– Millionaire in 2008
– Multimillionaire in 2012
– Does it all debt free
Show Links
Website: http://www.mattshoup.com/
Podcast coming soon! http://www.cafeconlechewithmatt.com/
Ninja Fighting: http://www.mattshoup.com/matt-competing-in-jiu-jitsu
Hate mail: http://www.mattshoup.com/ravingfansandhatemail
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Mike Michalowicz will be speaking at Scaling New Heights 2016 ( #SNH16 ) at the BEAUTIFUL Atlantis on Paradise Island in the Bahamas!
May 22-25, 3016
For more information on this conference and to register, click here!
.
Corporate Partners
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!
Fundbox – the simplest and fastest way to fix your cash flow by advancing payments for your outstanding invoices.
March 18, 2016
Have Great Client Meetings in These 12 Unexpected Places
Holding meetings with clients is a given. At some point just about all entrepreneurs need to meet with their client. But where you meet can make a big difference. So it’s time to challenge yourself and get out of the ordinary and start holding those client meetings in better places than you are used to. Your client will thank you for it!
Making Space
Skip the office, skip the hotel lobby, and for God’s sake never meet with a client again at Starbucks. Instead, pick from this list of unique places to meet that allow some one-on-one time, yet shows that you aren’t the status quo thinker!
1. Library. Meeting at a local library and finding an empty study room is an awesome way to get a meeting done. It’s clean, quiet and free.
2. Boat. Try renting a sailboat or powerboat for your meeting. Get back to nature and have a great one-on-one meeting. Just be sure to take along sunscreen so your client doesn’t go home burned and cursing the excursion.
3. Outdoors. Hold a meeting while sitting around a large fountain. Flowing water brings about a white noise that gets rid of distractions in public settings, and it is relaxing, too!
4. Spa. Rent out a meeting room at the spa. It is relaxing, super quiet and comfortable. Spas often use aromatherapy as well, so you may have the power of natural scents working to help you out in the background.
5. Racetrack. Go to the racetrack and get the excitement flowing through the veins as horses run the track. Build off that excitement to sell to your client.
6. Diner. The greasy diner is a hit, and this old school meeting place is actually back in vogue!
7. Park. Find a nice park or garden where you can meet. Being surrounded by nature is calming and helps you think better.
8. Hike. Invite your client to take a hike. It’s a great way to connect with your client and nature, and it helps to get the blood flowing.
9. Golf. If you need to keep the client’s attention over the long haul, you still can’t beat a round of golf.
10. Universities. There are tons of empty space available at any given time. And there is something special when you are meeting with a client at a school – you feel smarter. My favorite is holding meetings at Princeton.
11. Clients house. Holding a meeting at the clients house is a little risky, so never impose the idea. But it’s fine to offer to make the trek out to them. Some clients like the idea.
12. Your home. People do business with people they know, like and trust. Inviting someone to your home to talk business helps overcome all three of these barriers.
Make it Count
When you get past holding a meeting in your office or the client’s, you will find that you feel more confident, comfortable and engaged. And those things alone will help you be more successful in getting sales. Where you hold your meeting helps to set the mood, so think about what type of tone you want to sent and then plan accordingly.
There is no rule that says meetings must be held in a corner office under fluorescent lights, thank goodness. So get creative, make it interesting, and invite your client to a meeting they will likely find a refreshing break from the ordinary. This will help you seal the deal, as well as help them to find you personally to be interesting, creative, and a break from the ordinary, which is a good thing!
March 14, 2016
Episode 71: Online Sales and Profit Margins with Carole Rains
Show Summary
Welcome to Episode 71 if the Profit First Podcast! Mike Michalowicz, Chris Curran and Kristina Bolduc get into the nitty-gritty of online sales with business owner Carole Rains. Carole is an amazon seller facing the challenge of growing a profitable business where there is a high volume of inventory she needs to purchase. One major roadblock for Carole arose when Amazon lost her order and she had to quickly replace her inventory. In this episode we also discuss some novel approaches to addressing inventory that cost literally nothing and will make those amazon lost shipment problems dissappear. In addition we talk about profit margins and how Carole can dictate at least a 4x markup (or more!) by using simple things like a name change or packaging her products with educational components too. Listen in…
Our Guest
Carole doesn’t fit the mold of the majority of entrepreneurs today, which is men in their 20s and 30s. She didn’t start her own business until her mid-fifties, making her one of the few women in that demographic who become an entrepreneur as her mid-life crisis event.
Prior to that, Carole was a chef (she makes a killer crab cake) and before that she did pharmaceutical advertising and marketing. It was her adult daughter’s foray into entrepreneurship that inspired Carole to take the leap.
Having become an expert at online shopping through plenty of practice, she decided ecommerce would be her next venture. In 2013 Carole launched RusticArtistry.com, an online shop featuring rustic chic furniture and décor handcrafted by American artisans.
Parlaying off the knowledge she had learned about ecommerce, Carole founded a second business in 2014, EmuBliss.com, after learning about the outstanding, but not well known, benefits of emu oil for dry skin, eczema, pain and more.
Carole likes to share her knowledge with others and has been a guest and contributor on podcasts and blogs, including Build My Online Store, My Wife Quit Her Job, Bootstrapping Ecommerce, Ecommerce Marketing Podcast, Ecommerce Pulse, Horses and Heels and Mountain Living Magazine.
Although she hasn’t yet won any trophies or plaques for her accomplishments, she did win something better: M&Ms with her face on them, at the Fuelies, the award ceremony at Ecommerce Fuel Live.
She can be reached at carole@emubliss.com or carole@rusticartistry.com.
Show Links
LinkedIn: https://www.linkedin.com/in/carole-rains-92735022
Facebook: facebook.com/rustic.artistry.shop
Facebook: facebook.com/emubliss
Find our more about our Certified Profit First Professional, Cyndi Thomason at http://www.bookskeep.com/
Corporate Partners
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!
Fundbox – the simplest and fastest way to fix your cash flow by advancing payments for your outstanding invoices.
March 11, 2016
Good Criticism vs Bad Criticism
I finished a speech last month and hustled to the back of the room to autograph books. It is my mini-rockstar moment and I love it thoroughly. Until I get a criticism.
Sometimes it is subtle. “Great speech, Mike. I think I saw your tie on a Brady Bunch episode.” Are you sure? I just bought it off the discount rack at Sears. Note to self: Mike Brady should not be my fashion role model.
Other times a criticism is delivered with pure love. One fella told me how powerful my speech was, but that he was distracted when I snorted a few times because of my runny nose. Gross! I didn’t even know I was doing that. Note to self: Always be armed with tissues.
And occasionally a criticism is delivered in a nasty, condescending way. At my speech last month, that is exactly what happened. A woman came up to me, saw me autographing books, and said “Clearly you haven’t been an author for long. You are autographing the wrong page. You are supposed to sign the page with your book title on it.” Note to self: This woman is an idiot.
My hackles went up. Who is she to tell me what to do? My thoughts immediately attacked her intelligence. Clearly she was a bitter, misguided fool. But after I thought about it and thought about it some more, it was clear. She was right and perhaps, just perhaps, not an idiot. From that moment forward I have always signed the title page.
The problem with criticism is that most of us judge the message on how it is delivered, not on what is delivered.
If a criticism crashes into our ego we reject it. (Even if it is a helpful piece of information.)
If a criticism is delivered, wrapped in chocolate, we are more likely to accept it. So the question is, how do you separate good criticism from bad? How do we remove our own ego? We can’t.
As much as I would like to say you need to logically evaluate every criticism you get, you can’t. Even if you’re related to Spock, it is unlikely you will be able to put an unbiased ear toward criticism. But there is a better way: Pay attention to how long it lingers.
If the criticism sticks around in your mind, it is clearly something that is important to you. Something perhaps you need to embrace. Conversely, if the criticism (even though it was wrapped in chocolate) is quickly forgotten, it likely should be just that. . . forgotten.
March 9, 2016
The Increasing Cost Of Doing Business
Have you ever noticed that the majority of business articles point to the (very real) fact that it is getting more expensive to run a business? Your employees don’t ask for salary cuts, they ask for raises. The landlord for your office space, will never come to you and say they are cutting your rent in half. Your vendors will send year end notices about their new (more costly) price structure. Increasing costs is just part of being in business. Or is it?
Just because increasing costs are the natural tendency of business, does not mean you need to get caught in the current. The next time you feel yourself settling for increased costs, ask yourself this question:
How do I double my results with half the costs?
That is right, a 200% increase in the margin between result and cost. The solution may not be obvious (or perhaps may not even exist). But if you ask a better question, you are sure to see a better result. Even if you don’t experience a 200% improvement, any improvement is a good thing.
March 8, 2016
Naysay The Naysayer
When the naysayer says, “What if it’s a flop?” Ask them, “What if it isn’t?”
When the naysayer says, “What makes you think you can do it?” Ask them, “Why would I ever think I can’t?”
When the naysayer says “You will never succeed!” Tell them, “I think you have me confused with someone else… yourself.”
March 7, 2016
Episode 70: Loss Aversion and Profitability with Nick Muzzatti
Show Summary
This week Mike Michalowicz, Chris Curran and Kristina Bolduc interview the Operator of Carnival Day and explore what it’s like to be a manager of a business, but not the owner – and what your relationship to money and profitability is as a result. In this episode we dispel the value of making bold decisions and loss aversion. In Nick’s case, selling his truck may be the best decision of his life. We also discuss feeling the pain in purchasing and the 5% rule when you make a purchase on behalf of the company. Welcome to Episode 70 if the Profit First Podcast!
Our Guest
Nick Muzzatti is the operator of an entertainment rental business in Rockville, Maryland. What started as an inflatable rental business, primarily serving backyard birthday parties, has grown in to an entertainment rental company that serves clients across the country. Nick began his career in the events industry as a “vinyl technician”, which basically means he set up moonbounces for a living! In time, he developed relationships with many of the event planning firms in the DC Metro area, as well with other clients across the country. By listening to his customers, and investing in new and unique rental pieces, his company has become a sought after provider for event entertainment.
Nick is passionate about business. He reads business books like other people check their facebook feeds; often and to a fault. Now, Nick is ready to take this knowledge and apply it productively to his current business and all future business ventures.
Show Links
Website: www.carnivalday.com
Facebook: www.facebook.com/carnivalday
Instagram: @carnivaldaymd
Twitter: @carnivaldaymd
Corporate Partners
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!
Fundbox – the simplest and fastest way to fix your cash flow by advancing payments for your outstanding invoices.
March 4, 2016
Facial Cues: How To Detect If A Client Is Lying
It was going to be the biggest client engagement of my life. After eight months of wining and dining my prospect I had received the nod to deliver a proposal. Three months later he had our agreement in hand and we were meeting to finalize the deal.
I sat across the conference table from John and he gave me a big smile. “I can’t tell you how thoroughly impressed we are with your proposal. We have made the decision to proceed with your firm. I am signing off on the agreement today and you will have the contract with our check by tomorrow morning.” For a fraction of a second he looked down and his mouth curled down. I never heard from him again.
I never got the signed contract. Never received a deposit. Never even got a call or email. In retrospect I knew the truth the moment he looked down. He had made a micro expression that revealed the truth – his firm had decided not to use our company, and he didn’t have the courage to say it face to face (or even over email for that matter).
Looking back, I could have saved my nearly year of effort if I just paid attention to his facial cues at our first meeting. When words don’t match the simultaneous facial expressions, it spells trouble.
Over time I have learned that the truth is not what people say. It is what they say AND what they do while they say it that speaks the truth. The truth is revealed through microexpressions, subtle changes in the face that happens for only a fraction of a second. A microexpression is just like any other facial expression (e.g. a wide open slacking jaw expressing utter surprise) it is just expressed momentarily, before the person “recovers” to a lying expression that matches their lying words.
Once you understand how facial cues work, you can match your clients words to their actions and “hear” the truth every single time:
Your client can’t afford your proposal – When you offer something that is more expensive than your client expected, it will trigger a fear or surprise response. Look for a microexpression where the person opens their eyes wide, crunches their browline and opens their mouth. This indicates surprise. Alternatively the person may open their eyes, crunch their browline, keep their mouth shut tight and stiffen their entire body. This is a fear response. Either way, they can’t afford your offer regardless of what they say.
The don’t understand the value of your offer – Even though your client may be saying they fully understand your offer, if they show a microexpression of one eyebrow raised higher than the other, the don’t. Look for the eyebrow raise to be matched with a wrinkled nose and a crease between the eyebrows. When you see this expression, make sure you re-explain your proposal, because if you don’t it may be lost.
You didn’t deliver what the customer expected – When someone sees something they did not expect, it triggers a surprise response. Look for wide open eyes and an open (even gaping) mouth. If they are totally shocked they will likely give a small frown along with the wide open eyes. Remember, this microexpression may reveal itself only for a split second. Be on the lookout and if you see it, explain why your proposal is be different than they might have expected.
You lost the deal – They utter the words “you’re our number one choice,” or “I am signing off on this today,” but it is coupled with their eyes glancing down, dropped shoulders and a frown – the microexpression for disappointment or sadness. Often when someone lies in an effort to make you feel good and avoid their own discomfort, the sadness microexpression will appear. If you see this, don’t take their words at face value (no pun intended). You better ask if there is anything else you can do to make sure you get the deal.
They feel you are taking advantage of them – You will only get a deal when both sides feel they are coming out winning. Even if your client says this looks like a good deal, if their nostrils flare and eyes squint their face is telling you the are upset.
They are ready to buy – This is the one you want! When a customer says they are ready to buy and shows a microexpression with a smile where the corners of the mouth turn up, typically with the just the upper teeth exposed – you have a serious buyer. And if the customer is really excited to work with you, the will likely have an open mouth smile with the eyes open to their fullest with their eyebrows up high. If you see that, congratulations, you landed the client!
Your customer has been telling you the truth all along, just not through their words, but through their expressions. Start asking more “yes” or “no” type questions and watch for their microexpressions. If the expression doesn’t match their words, they are lying.
Ultimately, the truth is written all over your client’s face.
