Mike Michalowicz's Blog, page 70

If It Hurts…

My wife dresses impeccably. If I criticized her ability to pick a good outfit, or told her that she has no clue how to dress, she would scoff. When you are criticized about something that isn’t true, it may not be fair, but it doesn’t hurt our self-perception.

Conversely, if I criticized her for something that was true (even in part), the reaction would not be a scoff. She would be defensive. She would be argumentative. She would be angry.

Are we  all wired this way? Observe yourself. When you get criticized, does it hurt? If so, it is probably true.

Twisting & Turning Ideas

If you want to get all the juice out of an orange, you first squeeze it. Then you twist it. Then turn it and twist it more.  If you are really working that orange over, you will put some real leverage and weight into it until that last final drop comes out. And that last drop is often the sweetest.

Apply this same concept to your ideas. When you have a new idea, start twisting it and turning it.  Squeeze the idea. Put weight into it. Keep turning it over and around. The more you manipulate your ideas, you will squeeze the juice out of them. And in many cases you will find that your final twist yields the sweetest drop.

What We Have Learned From Failing Restaurants

Notice any of your neighborhood restaurants going out of business in this economy? If so, you are not alone! It is happening everywhere, to all kinds of restaurants. But the good news is that there is actually a lesson to be learned from these failing restaurants.

Keep It Simple

You have probably heard the saying “keep it simple” before, right? Unfortunately, those failing businesses were doing anything but. Research that was conducted to see whether there was a pattern regarding which restaurants survived the economic storm, and which folded under pressure, revealed a lot.

The restaurants that went out of business had a common issue, and it largely centered around their menu. They were offering their customers way too many options. Sounds strange, right? But when you think about it closely, it is easy to see that it makes perfect sense.

Having too many menu options can result in a host of problems that a business fails to see coming at them. Without a doubt, they thought their large menu was what kept their few customers coming back. But it actually had an opposite impact on their business.

The Larger Picture

A restaurant that has too many menu items listed is going to run into problems. A lot of them, including many that you would probably never even realize, even if you were the restaurant owner or manager.

Some of the problems caused throughout the whole restaurant as a result of a menu that is too large include:

● Slower service. Get a frequent customer and hand them a large menu and it may be okay. But the average person is going to take a while to mull over the menu, making the table-turnover rate slower. A slower table-turnover rate means less money at the end of the day.

● Slower cooking. That slower service spills over into the kitchen, as the cooks need to keep shifting gears as they make a wide variety of dishes. When this happens, the dishes are likely to take longer to prepare, which doesn’t exactly keep customers happy.

● More mistakes. When you have so many things on the menu, the cooks have to strive to get a lot of different dishes right. There are bound to be more complaints and more food sent back, costing the restaurant even more money.

● Larger inventory. Can you imagine the inventory that a restaurant has to keep on hand, in order to provide all those dishes, any time someone orders? And if someone doesn’t order all the stuff, it translates to more money lost, as the food goes bad.

● More mistakes. Waiters are generally supposed to be pretty knowledgeable about the menu where they work. But having a lot of options on the menu means they are likely to make more mistakes, leading to more unhappy customers.

● Lower quality. If a restaurant concentrates on a small list of dishes, they are likely to get better-quality ingredients at a better rate. You lose that buying power when you are purchasing smaller amounts of many different ingredients.

Pair Down, Focus

Now you have a clear idea of just how much of a problem a large menu and lots of options can be for a restaurant. And the same principle can be carried over to your business, regardless of what you are serving or selling.

Rather than try to be everything to everyone, determine what you do best, and then narrow in on that area. When you tighten up your list of options, you will be helping to avoid the sort of problems that arise in the larger picture when you offer too many things. It may be too late for thousands of restaurants to learn from this advice, but, luckily, you can still benefit from it!

Episode 69: Significant Cash Ebbs and Flows with Melinda McCaw

Also Available On

 

Show Summary

Join Mike Michalowicz and Chris Curran as they interview Melinda McCaw, founder of Melinda McCaw Media. In this episode we navigate how to manage a scenario where your company is dependent on one major client (and what to do about it). We explore a simple strategy of knowing when to make that next hire, give some simple tips around profitability, and  share perspective on revenue per employee. Obi Ron Kenobi (Ron Saharyan) makes a special guest appearance and provides Melinda with great advice on how to reduce the pains of  significant cash ebbs and flows. Welcome to Episode 69 of the Profit First Podcast!

 

Our Guest 

Melinda McCaw is founder of Melinda McCaw Media, a full service web development company specializing in building mobile friendly custom WordPress websites.   Melinda started the company while finishing a degree in Interactive Media and over the past 7 years has grown the company to meet customer demands as well as positioning it for future growth.   

During this time Melinda has maintained an outdoor lifestyle following her passion of riding mountain bikes, skiing and just spending time in the Colorado Rockies.  To this end she has completed the Colorado Trail, an approximately 500 mile trail from Denver to Durango following the continental divide.  She is currently working heading back this year to complete the approximately 400 miles of trail accessible by mountain bike, and trail running the remaining 100 miles within a two week period.

 

Show Links

Website: http://www.melindamccawmedia.com/

Facebook: https://www.facebook.com/McCawMedia/

 

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.

Waves

The marketplace is an ocean and it is the only place you can capture waves.

When you are in the ocean… do everything you can to ride a wave. Don’t try to make a wave (you can’t anyway).

Look for the movements in customer demand (the waves), and get in front of the one you’re best suited to serve.

Capture the energy from the surge.

Why You Should Become An Entrepreneur

You’ve had the moment. I am sure of it. That fleeting thought of a great idea. Or that momentary dream of being your own boss. And maybe, just maybe, you are having the moment right now. I mean, why else would you be reading this?

If that’s true, I have a job here and I need to move quickly. You see, most people (maybe all people) have the entrepreneurial inspired moment but then quickly sink back into “reality.” They let “logic” set in and go back to the “safety” of a job. I mean, what could be safer than working for someone else and letting them determine when you get promoted, if you should get promoted, or if you are even needed any more.

But there is something bigger at play. It’s the WHY. Why are you doing what you are currently doing? If you are working for someone else, the question is why? Are you doing it because it brings happiness to your every day? Or are you doing it for the money?

If you are like most of the world, you are working your butt off. You are working to save as much money as possible, so that one day (often after that magic age of 65) you have enough money to retire and enjoy doing the things that makes you happy. Well, I am here to tell you that is backwards. Instead of working yourself to near death so that you can be happy one day, try this: Get happy now!

And how do you get happy now? You become your own boss and do what you have always wanted to do. Always wanted to scuba dive year round? Start an instructional school. Love watching CSI and Bones? Start your own personal investigation firm. Love fashion? Start a business to finally show people how not to dress like a Wal-Mart super shopper.

Here’s the deal, chiefy. I can’t guarantee your success. I don’t know if you have what it takes. And I can’t even promise that you will want to be an entrepreneur for the rest of your life. But, I can promise this… I have never seen someone’s gut steer them wrong. Maybe it won’t bring you to riches, but if you follow your heart it will bring you to happiness. And after all, aren’t we just accumulating riches so that we can get to the happiness part?

Episode 68: Imminent Need and Profitability with Jonathan Royce

Also Available On

 

Show Summary

This week we had the privilege of interviewing Jonathan Royce, founder of Hustling Hoagies – a brand new business that delivers hoagies to Univ. of Michigan football games and other local events. Join Mike Michalowicz and Chris Curran for a journey with Jonathan as we discuss where he’s making money and where he’s not, as well as the concept of imminent need. We explore where Jonathan has spent money which was of no value, and the technique of using Profit First to pre-allocate money toward profitability AND his own pay to determine how much money is truly available to infuse money back into his business. Welcome to Episode 68 of the Profit First Podcast!

 

Our Guest 

 

Jonathan Royce is an individual with multiple talents and interests.  He is an owner of a new food venture Hustling Hoagies, is the author of the children’s picture book Detective Dwayne Drake and the Alphabet Thief, has worked professionally as a model and commercial actor, was a three time  All American Athlete at the University of Michigan and is an inductee into the U of M Hall of Fame, and has coached at both the high school and college ranks. Additionally and most importantly he has worked in education and with children for many years.  He earned his bachelor’s degree from the University of Michigan and received his Masters in Educational Leadership from Eastern Michigan University. He is currently an assistant principal at Ypsilanti Community Middle School.

 

Show Links

www.facebook.com/HustlingHoagies/

 

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.

Why You Can’t Trust An Experts Opinion (Including Mine)

Need advice? Experts (me included) will be glad to share! Unfortunately, there is a problem. The experts (me included, again) are often not qualified and can be very wrong in the advice they give. I get it, I need to walk a fine line here, since this article itself is an expert opinion, but hear me out.

First, let me tackle the main problem with experts today. Everyone seems to be one. Don’t believe me? Go ahead and try this little test for yourself. Stop the next 5 people you come across and ask them what they happen to be an expert in. You are sure to get an expert in social media, an expert life coach, an expert in home remedies, an expert in marketing, and, my personal favorite, an expert in coaching experts.

Now, please don’t get me wrong, experts are needed. The next time my dishwasher breaks, I will want an expert in getting the thing fixed. And sure, if my business is struggling in marketing, I will want a marketing expert to help me. The thing is, you need to separate the good from the bad by watching for these 5 warning signs:

1. They Haven’t Been There & They Haven’t Done That – You want a coach or expert who has actually done what you are doing. While a coach may have training in your field, nothing can top hands on practical experience. Look for a coach that has actual, direct personal, real life experience in what you need advice about.

2. Big Words, Little Action – It is easy for an expert to gain credibility by writing (hey, look who’s talking, ahem… writing). Many experts quickly dominate the blogosphere with sage advice. But the reality is words means nothing if you can’t execute. Look for coaches who both write about what they do, and do what they write about.

3. Render Advice, When They Shouldn’t – Ever ask an expert what they think about your product or service and they then go on to tell you why it is a horrible or great idea? I don’t care if you have 100 years of consulting experience, if the expert is not the end consumer of the product or service his advice is wrong. The consumer knows what she wants. Listen to her. Tip – if you want to quickly qualify an expert, ask them what they think about your offering. If they offer advice, without qualifying (or disqualifying) themselves based on their consumer experience, they are likely giving you bad advice.

4. Don’t Have A Coach Themselves – If a coach doesn’t have their own coach, red flags should be every where! This indicates that the coach you are hiring doesn’t believe in coaching himself. It may also indicate that the coach feels she has nothing left to learn. Another major red flag.

5. Doesn’t Learn From You – An expert doesn’t mean having knowledge of all things. It means having superior knowledge and hands on experience in one category. To apply this knowledge, they must learn and understand your business. If they aren’t thirsty to learn about your industry and seek your direction, you may be getting a “one size fits all” solution, which at the end of the day, is not a real solution.

Experts don’t always have the best advice. You can ask five experts in the same field for advice, and end up with five completely different answers. When you need an expert in a certain field, be discerning when seeking them out. Remember, you want someone who knows what they’re talking about, does what they talk about, is constantly learning, and doesn’t seek to solve all problems with one easy-fix solution. Be cautious and you’ll find an expert who is knowledgeable, experienced, and gives some great advice!

Why People Talk About The Weather

It seems like many conversations include dialog about the weather.  Too hot, too cold, too wet, too dry, too windy, too still or just right.  There’s not much else to discuss. So why do we discuss it?

Because it is something we all experience.  No matter who you are talking to, they know and you know that you both have experienced some form of weather today.  The weather is something in common you both can discuss, and that is why you do it.

Us humans are designed to bond with each other through the “courtship of commonality.”  We look for ways that we are similar to each other.  The more similarities we find, the more we like each other.  Imagine if you found out that I grew up in the same town as you, went to the same college as you, and your best friend is my best friend too – let the love-fest begin. Commonality builds bonds.

Discussing the weather is the first dip of the toe into bonding.  So the next time someone asks you how the weather is in your part of town, be grateful they asked.  Then ask them who their best friend is.

What Not to Look for When Hiring: Experience!

In the market to hire someone? If you are like most others in business, you place a high priority on the amount of experience that an applicant has. Everyone looking for their next hire seems to look for the “best” employee, as defined by their experience. Obviously, someone with 10 years of experience is better than someone with two years, right? Not so quick, bucko!

What Counts

Realize this – the thing that you can give someone is experience. You can provide all the skills and experience that you want to. But there are other things that you cannot give them, which makes those things far more important than just having experience. What are those things? Glad you asked! The things you should be looking for in your next employee are:

Work ethic. A person’s work ethic is going to impact how they feel about their job, which in turn will impact how well they get it done. If they have a strong work ethic, they will be honest, accountable, and responsible. These are all things you want in an employee, or at least should want.

Attitude. Someone’s attitude is a big issue if you are bringing them in to work with you, or with a team of others. Attitude is how they convey their feelings, or disposition. The last thing you want is someone with a bad attitude who you are afraid to challenge.

Energy. How upbeat are they when they answer your questions? If it seems to take a lot out of them to respond, it will also take a lot out of them to muster up the energy to get the work done. And when it comes to energy, they can also have an impact on others they work around, for better or for worse.

Intelligence. Even if someone has a degree, that doesn’t guarantee that they are intelligent. Having intelligence means having the ability to learn or understand things. It also applies to how well they can adapt to new situations. You want someone intelligent, so they can grasp the essence of your business and do what needs to be done.

Values. This comes down to how well they promote what you consider important for your company. If you value good customer service and honesty, you want to make sure that your employees do, as well, as they will be the ones carrying out that mission.

So, when you are hiring someone, look beyond how much or how little experience someone has. Instead, ask questions that explore what they really bring to the table. Find out what they are like in terms of the important factors listed above. There are many other things you can do to also find out who they are, in this regard, such as conducting a background check, and investigating their use of social media.

And if you call to speak to any of their past employers, be sure to inquire about their work ethic, attitude, energy, etc.

Latching On

After doing this type of investigation into the person you are considering hiring, you will know if you have found the right person. Once you do find a match, hire them. Then you can focus on giving them the experience. But you will know that you have a solid match for who you want to have on your team. Experience is something that can easily be gained, if they have these other attributes.

Having qualities like a good work ethic and a positive attitude are far more important than work experience. After a year on the job, your new employee will not only have the great skills you are looking for in a team member, but will also have experience. That sure beats hiring someone based on experience and, a year later, they have another year of experience and an expensive habit of pilfering your ink cartridges for their home printer.