Mike Michalowicz's Blog, page 73

Episode 61: Transitioning to Specific Business with Leticia Mooney

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Show Summary

Entrepreneur Leticia Mooney joins Mike Michalowicz and Chris Curran for Episode 61 of the Profit First Podcast! Leticia talks about her business goals as Mike gives some great tips on becoming a specialist to skyrocket your businesses success.

 

Our Guest 

Leticia Mooney is a 30-something woman of many talents. A published author, serial entrepreneur, music critic, and scholarship-winning dance student, Leticia has owned four businesses. One was a total failure, one was acquired just before it was shut down, the third – her current venture, Brutal Pixie – has gained traction and is a quickly growing success story. The fourth was a fast-grow, fast-fail startup that lasted 12 weeks, from July to October 2015. In the art of music critique, Leticia has been described as a “master”, and has been recognised internationally for her work.

Leticia’s mission in life is to inspire people, and on her tombstone they will write an epitaph to her ability to help people make positive change.

Point of interest: Dead-ringer for Sissy Spacek. Go to http://biodagar.com/about for proof of that (my sister thinks I must have been adopted or stolen. Ha!)

Brutal Pixie is an Australian content strategy company that focuses on strategy creation; risk, governance and workflow; and of course content development. People come to us for content and stay for the strategy.

 

Show Quotes 

The double helix trap: typical oscillation that entrepreneurs have between the working and the doing. As sales increase the work decreases because there’s less availability for it. Then when we try to focus on doing the work, we are unable to take time to sell. If we’re not selling the sales slow down and the work runs out. Panic ensues. This is the ultimate trap.

Oscillating back and forth will not bring you traction. When you work with any client of any type, that forces you to custom work; it’s not perfectly consistent. Think of a heart surgeon vs. a general surgeon. The general surgeon has a touch of knowledge in a bit of everything to be able to treat you. The heart surgeon is a specialist to help you with one thing.

If the practitioner realizes that your symptoms are severe they push you right to a specialist. The specialists make more money than the general practitioners because they attract the patients with very specialized needs. General practitioners attract a general audience with general needs AND the generalist diagnoses a significant problem and then refers them out to a specialist. A specialist is someone who can address a specific problem with a specific need and can charge a higher premium because the need is greater.

If you become a specialist, the likelihood of success increases significantly.

If you’re inspired with new ideas, DON’T focus on new ideas for new businesses; focus on new ideas within how you’re serving your existing clients! You will still get the same excitement but you’re innovating for your best clients.

If you start concentrating your services to one specific category, that will get your out of the double helix trap because you will start to get repeating consistent needs. There’s not a switch from serving anybody to serving a specific niche… it has to be a transition. As new work comes in you may continue to work in other industries – you need that money for survival so do not turn it away. Accept what’s coming in but no longer market to other communities; only market to the community you want to focus in and you will start to get natural traction. Once you have enough traction in the industry you desire, you can fully commit your business.

 

Show Links

Brutal Pixie  http://brutalpixie.com

Twitter @brutalpixie

Insta @brutal.pixie

Google+ Brutal Pixie Official 

Leticia Mooney on LinkedIn 

 

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.

How To Name Your New Company

If you are picking a company name the old fashion way you are in trouble. You know what I am talking about — brainstorm names how customers can quickly figure out what you do. Oh yeah, and you better pick a name that starts with an “A” in it so you can get first spot in any list of competitors. Not. That old school approach to choosing a company name does not work anymore. Here’s the new way:

1. Third Grade Vocabulary

How To Choose Your Company Name: The first consideration about your company name must be the ease of finding it on the web. Even if you have the coolest company name in the world, if it is hard to spell, people won’t find you on the web or will give up trying. And if they can’t find you on the web, you are losing money. That’s NOT the way to get ahead in business.

The Right Way: Pick short, simple, and easy-to-spell names. Now, I know what you are thinking, “all the short domain names are all already taken.” But alas, they are not. Try an adjective and a noun combination and you open infinite possibilities. Like Red Hat or Blue Cross or… you get the idea.

2. Unexpectedly Visual

How To Choose Your Company Name: When you hear Monster, you think — wait for it — job searches. And what picture comes to mind? A cute monster, right? That is the power of being unexpectedly visual — you tie a common picture in with an unexpected association, and people remember. How about Proctor & Gamble? What picture comes to mind? Nothing really. Maybe a couple of old guys that smell funky, but that’s about it.

The Right Way: Pick a company name that can invoke a picture in your customer’s mind. Then make sure the connection is not obvious, but with a story that makes sense. Once they make the connection, the picture will stay with them for life and you will never be forgotten.

3. Think Globally

How To Choose Your Company Name: When American car manufacturer Chevy introduced the Nova, US consumers bought it in droves. But when the same car was introduced to Spanish speaking countries in South America, the car didn’t sell at all. Once Chevy realized “no va” in Spanish means, “it won’t go”, they quickly renamed the car to Caribe and, sure enough, sales took off.

The Right Way: Realize that the moment you open your doors for business, you are in an international market. Spend a little time researching how your company name will play out in different languages before you commit.

4. Taken

How To Choose Your Company Name: So you pass the first three qualifiers and you love your name. It sounds so great, you are amazed that no one else has thought of it. Think again. Just because you can’t find the name out there on the web, doesn’t mean someone else hasn’t already grabbed it.

The Right Way: A simple trademark search will identify if the name is already legally owned by someone else. And that is way better than the alternative method of finding out – a cease and desist letter. Then check the web to see if the domain is available (most common names are swallowed up already, so you may need to buy it from someone or find an alternative.)

5. Make It A Verb

How To Choose Your Company Name: There is a good chance you found my blog post by “googling” or “tweeting.” They are two examples of businesses that have made their company name into verbs. There is no sweeter music to an entrepreneur’s ears than having your company name become the activity itself.

The Right Way: If your company name ends in a noun (e.g. Toilet Paper Entrepreneur) it becomes much more difficult to become a verb, but it is still possible – especially through acronyms. For example, many readers of The Toilet Paper Entrepreneur are “TPEing” their way to riches, and readers of The Pumpkin Plan are Pumpkin Planning their business.

Doing More, Faster: The Hidden Secret

If you are like most people in business, you are looking to do more, faster. This is evident from even a quick search on Amazon.com for books about productivity. One search will net you over 40,000 hits! That subject is the Holy Grail for the majority of us. We all seem to have the same goal – make a boatload of money in the least amount of time.

Productivity Killers

As you may have suspected, ironically, productivity is decreasing. People are working longer and longer hours, yet we seem to be getting less done. The biggest killer of productivity seems to be the Internet. How ironic, since it is also the most amazing productivity platform ever, allowing us to talk, work, learn, and find virtually anything, at any time.

The problem is that, along with unlimited access to the world, come unlimited ways to waste time by surfing, e-mailing, chatting, and watching. Just one look at the statistics and it is clear that we are wasting a lot of time online during our workday. We log on for just a few seconds…but those ‘few seconds’ turn into a wandering path as we check out a multitude of other things.

Case in point – Nielson reports that 65 percent of all streaming content is watched during the work week, between the hours of 9:00 a.m. and 5:00 p.m. Furthermore, YouTube reports that 2 billion videos are watched each day on their site alone. That’s a lot of lost productivity, especially considering that most watched videos don’t have much if anything to do with business.

Taming the Snowball Effect

But here is the real killer when it comes to continuously diverting your attention with online pursuits. When you are finally ready to get back to work, you usually find that you’ve forgotten where you left off and need to start all over again. And, with that, you might as well surf again…and so you are off to the races!

So, here is what all the productivity books tell you to do: turn off the Internet and turn off your e-mail. I mean, duh, it is so simple! No Internet, no distractions, work gets done.

But there is the problem with that. You actually need the Internet to get work done! So, ultimately, these well-intended directions don’t actually work. Instead, there is a better way to be more productive, and it only requires a piece of paper, a pen and a highlighter.

Here is what you will need to do:

1. Make two columns on your sheet of paper: a small column to the left, labeled TYPE, and a second, wide column, labeled TASK. You will notice that there is no column for “DUE DATE,” because that is not necessarily reflective of the most important stuff. Due dates in fact make us rush to the urgent, but not necessarily the important.

2. In the task column, write down all the tasks you need to accomplish. And while you are working, if the thought of a new task comes to mind, write it down in the TASK list, right then and there. This is important, because if you try to simply remember the new task, you will either forget it or be distracted from the task at hand by trying to remember what else you need to do.

3. Next, once all your tasks are written out, go down the TYPE column and put a dollar sign ($) next to the tasks that will bring you revenue within the next 30 days.

4. Finally, go back through the list and put a smiley face next to the items that serve an existing client.

When you look over your columns, you will notice that most of your tasks don’t actually generate revenue or address a client. Those unmarked tasks are the items that you can tackle later. Now go through your list and, first, do those items that have both a dollar sign and a smiley face together. This is for a client who is bringing in revenue for you. Do that one now!

After that, do all the ones that have smiley faces, followed up by all the ones that have dollar signs. Once you are done with that, you are ready to go on to the other tasks. But here is the key – when you start a new task, use your highlighter to mark it. This way, when you get distracted by the phone or an e-mail, you can go right back to your sheet, see what is highlighted, and get it done. Once you complete a task, put a line through it. It is really gratifying to see items crossed of the list.

Getting It Done

I know it is hard to resist the urge to log online and check your e-mail every five minutes, or watch the new Justin Bieber video (hey, with almost 400 million views, someone is watching it!), but with this new little system you can slip a little, since you will be right back on track instantly – making money and helping clients.

Easy Doesn’t Last Forever

When sales comes easy, and you don’t need to scratch and claw to get it, you will not be ready for when sales dry up. And it will dry up. It always does. Ironically, it is during these easy-peasy times when you need to sell harder than ever. When business is good, you need to scratch and claw the most. . .

. . . because when the sales do dry up, all of your weak competitors will close their doors. Their former customers will need someone new, someone they can be confident in. If you are one of the standing healthy vendors, the customers will come to you.

Episode 60: Overcoming Limiting Beliefs with Stan Shields

Also Available On

 

Show Summary

Martial Artist Stan Shields joins Mike Michalowicz, Chris Curran and Kristina Bolduc for Episode 60 of the Profit First Podcast! Stan shares his entrepreneurial story and talks about overcoming limiting beliefs.

 

Our Guest 

Stan Shields is a martial arts professional who began operating a martial arts school in January 2002 (nearly 14 years now). Having been through the ups and downs of business cycles he has seen many businesses come and go, both in and out of the martial arts industry. Shields martial arts school currently boasts upwards of 200 students.

The martial arts school is not the first foray into business for Shields. He also co-owned and operated a very successful home remodeling company with family, owned and operated a security products company and was involved in a variety of network marketing organizations. Shields professional background also includes approximately 15 years in Human Resources, 3 years in financial services sales, another 5 years in technology sales, and a variety of other positions in corporate America.

Shields has been training in the martial arts since 1994 and has racked up some pretty nice accomplishments during this time. He is currently a 5th Degree Black Belt in the American Taekwondo Association, three time World Champion with the first coming in 1999 in sparring competition as a 2nd Degree Black, the second in 2006 in Xtreme (XMA) Weapons competition as a 3rd Degree Black Belt, and lastly in 2015 in Forms competition as a 5th Degree. Over the twenty plus years of competitions he has been in the top ten for Forms, Sparring and Weapons more than a dozen times. He has won State Champion in these events more than a half dozen times and is currently ranked in the top ten in Forms, Sparring, Weapons, and Combat Weapons Sparring. Shields is expecting to test and promote to the rank of 6th Degree Black Belt in July 2016 and is training for that now.

 

Show Quotes 

The key decision that made a difference in Stan’s business was moving his home office to his martial arts studio. Now someone was always there to answer the phones and take walk ins.

You need to have a live person answer the phone – many people will not leave a message!

There are so many accounting and bookkeeping professionals out there, but in many cases they don’t help you to understand where your money is going.

Take advantage of automated systems! They will save you time and money.

 

Show Links

Website: www.kicks4all.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.

The 7 Ways To Make Your Clients Love You

Love is love is love. The same things that you used to woo your spouse or boy/girl friend with, work with clients too. Why? Because you’re showing them you appreciate them, care about them and are truly interested in developing a long-term relationship with them. I’ll try not to get too syrupy here, but I’m trying to make a point:

1. A rose by any other name wouldn’t smell as sweet. Nothing is as appealing to us as our own names. Learn their names (first and last). Say and spell their names properly. If you’re using a customer management system or digital database make sure whoever enters the names checks and double checks to make sure they’re entered correctly. Put a note in or on their file with the phonetic spelling of their name. Have your employees sing it during a weekly sales meeting karaoke session if you have to, but get it right. Make sure your entire team knows the names of your customers and can pronounce them correctly… because there is nothing we hate more than hearing our name beaten to shit.

2. If you love something, set it free… Corny right? But so true. Give customers insights on the best deals, even if it is not with you. Know your industry and your competitors well enough to know when what you offer doesn’t work as well as someone else’s product or service. This builds loyalty and trust because it tells them you’re actually looking out for them, not just the health of their wallet. Set them free to pursue a better deal-o-the-day and they will always come back to you.

Besides, if you don’t tell them, someone else will and then you’ll just look greedy and self-serving. Beat the competition to the punch. Put your customer’s best interests first, truly first. They’ll thank you with gratitude and referrals.

3. Surprise! Ever show up at home with flowers or a card for “no reason”? Yup. It works because unless they think you’re cheating on them, it screams, “Thinking of you!” when you’re not on the clock. And they will know it. Give an unexpected gift at an unexpected time, for no particular reason other than you’re glad they’re a client. You are glad, aren’t you? Gifts (even small gifts) when unexpected and genuine, build loyal loving fans.

4. Get it done early or faster. A classic in the under promise over deliver effort. Do more than expected and you win fans that keep coming back for more of the same. The key is really in not over promising. Set a realistic promise and then blow it away.

5. Anticipate their needs. Fix things before they happen. As you get more and more clients you can plan for problems your clients might experience before it happens. A contractor in NJ who specializes in kitchen renovation starts his projects by setting up a temporary kitchenette in the dining room of a client’s home. When the renovation gets under way, clients are thrilled to have a mini-kitchen they never thought they would need. This says, “thoughtful and considerate,” in ways you can never imagine.

6. Show appreciation every chance you get. Say “Thank You.” Show gratitude before, during and after. Never take anything for granted. What this does is convey the very real message that they do matter. Studies show that the more someone appreciates us, the more likely they are to respect us and vice versa. The more respect, the tighter the bond and the longer the relationship. You do the math. The return on investment for showing appreciation is huge!

7. Celebrate. If you’ve ever forgotten an anniversary, you know nothing says “caring” like remembering and celebrating the memory. Invest in an anniversary cake and card. Show your customer how much you value them, by sending them a cake and card on the one year anniversary.

See? It’s not that hard to keep your clients and customers happy, loyal and feeling appreciated. Call it karma or good business practice, customer service, or just simple human decency, but what goes around comes around. If you follow these seven practices your clients will keep coming around.

Is Money Always the best Way to Reward Employees?

Employees love to be rewarded. Heck, we all do! It makes us feel good and appreciated for the things we do. But, believe it or not, money may not be the best way to reward employees. That’s because there is too much “routine” involved in giving money as a reward.

You know the routine – like it being time to give out the Christmas bonus again. What was it last year, an extra two weeks of pay? This year, you better match it, even if you can’t afford to, because, well, you have set the precedent. From the employees’ standpoint, money is nice, but when it comes to routine, it isn’t so much ‘nice’ as it is ‘expected.’ And when you don’t deliver on that expectation, well, people get upset and disappointed.

Change It Up

So here is the first lesson: Whatever you do, don’t reward employees the same way every time. Don’t always give them the same $100 or the same pat on the back. You need to be careful about setting an expectation where the reward is perceived as simply being part of their “normal compensation.”

But here is the biggest thing that employers miss – money is a very short high. When you get money, it is exciting for maybe 10 minutes. Then it dies off. The reason is because money isn’t tangible. I mean, really. You get it on a small piece of paper (like a check) or a few bills, and then it disappears.

Lasting Options

There is a better way to reward employees on many occasions, and that is with a thoughtful gift. Why? Because a gift is tangible and has lasting power. That gift will come up in their thoughts again and again. The employees will get to use the gift again and again – providing that you gave them something they will actually use and that is an appropriate recognition for their efforts.

Here is what you can do to make sure you give them a gift they will truly appreciate:

– As you work with your employees, and personal conversations happen, make a note of the things they like or want.

– Write those things down because, when it comes time to get a gift, you will not be able to remember, as hard as you try.

– Build a list of these things to reward the employee with, when the time is right. You will also need to make sure that the gifts are appropriate.

Here is an example of how I did this with an intern who worked in my office last summer. He was working for free, to build his resume and gain some experience in the field. One day, he mentioned how he loved the Xbox and wanted one. It caught my attention, and I asked him what kinds of games he liked, and how many people he likes to play the game with. After the conversation ended, I quickly jotted down the details.

With that accomplished, I bought the Xbox, games and controllers. One vital tip you need to understand is that, if you give a gift, give the full function of the gift. An Xbox is useless without games and controllers. So giving just the Xbox would have been a burden on him, not a gift.

Making It Special

What an amazing day it was, when I gave him the gift! The total gift cost around $650, but the experience was priceless. On the last day of his internship, I walked him into the conference room, where I had the gift wrapped up in 7 different boxes. It was like Christmas morning for him! I told him how much we valued his help, and our hope for his future success, and then I told him to tear into the gifts.

I can’t tell you how thrilled he was! He jumped up and down, shouted, even hugged me. He called all his friends to share the news and announce a game night, that night at his house. He was absolutely thrilled! And, as a little extra surprise, I told him he had the rest of the day off so that he could set up for his game night.

The Payback

What we got back in return from that gesture was huge! He sent a nice thank you card and a voice mail, saying he couldn’t believe the generosity of the company, and that all his friends wanted to work there. Over a year later, I interviewed an exceptional guy who seemed eager to do anything, just to work for us. After we hired him, I asked why he wanted to work with us so badly. He explained, “Everyone does. Everyone knows you guys care about your people like family.” As it turned out, he had heard about us from the intern, when he stopped by his house and asked, “Where did you get the Xbox?”

So giving thoughtful gifts works! But one note – don’t think that giving money to an employee so they can get the gift is the same. They will have the momentary excitement over the money, but it will be quickly forgotten. And when they buy the gift themselves, it won’t make them think of you, it will only make them remember what they picked out for themselves.

How To Figure Out Your Competitors Revenue

Analyzing your competitor’s revenue is a helpful tool in measuring your own progress and potential.  Duh.  It’s not rocket science.  You won’t beat ‘em if you can’t find the finish line.  So how much are your competitors taking – or raking – in, and how the hell do you find out?

If your competitors are public companies, than you get to read all about their top line and bottom line in the annual audit report available to investors.  Of course they’re not always truthful (surprise!)  Sure, the government cracked down on the Enrons of the world, trying to avoid another disaster for investors, but people always find a way to lie.

For small and private companies, lying about top line revenue may have more to do with hiding the trouble so as not to worry staff or negatively affect the brand.  Or it is just chest pounding ego. Either way the lies are rampant.

Sometimes it’s a little white lie, like rounding up on the number.  Sometimes it’s a huge lie, like making up numbers.  (Pay no attention to the man behind the curtain!)  And sometimes it’s a lot of money and they don’t want you to know how much they’re hiding under the mattress.

But some companies are honest about it – they’re not going to tell you how much they make and that’s that.  It was nice of you to ask, but it’s none of your business.  Okay.  Fine.  Time for Plan B.

To get to the truth, you’re going to have to do a little spying, but not as much as you think.  And no gadgets required.  Sorry.

Read quickly.  This blog post will destroy itself in sixty seconds!

1. Find out how many full-time employees your competitor has.  Most people will not dodge this question or fudge the number.  If you have trouble getting the information, just call and ask the receptionist if she’ll participate in a three-question survey.  Come up with two other benign questions she wouldn’t be afraid to answer, like “Where do you buy your office supplies?” or “Which crappy chain restaurant do you use for holiday parties?” Then ask the big one, “Approximately how many full time employees do you currently employ?”

2. Multiply the total number of employees by $125,000 and then again by $200,000.  The company revenue is likely between these two numbers.

3. If your competitors are in trouble their top line revenue is on the low end, and if they are doing well, it will be on the high end.  If they are kicking ass and taking names their revenue will be above $250,000 per employee.  I know one small private company that is bringing in $1,000,000 plus for each full-time employee – that is AWESOME!

4. How can you tell if a competing company is in trouble?  That, my friend, is a spy lesson for another day.

Why does this calculation work?  Because generally, when revenue increases so does the workload.  And for many business models, revenue is dependent on employees, such as agents for real estate firms or other sales staff.

Get your top secret on and figure it out.  Soon you’ll be calculating top line revenue in seconds flat.  You’ll even be doing it at parties.  (Hint: Don’t do it at parties.  You’ll never get a date.)

You Are Your Name

This article exemplifies the power of the words we use…

There are more “Clays” in the pottery business compared to other namesakes.

There are more “Melodies” and people with the last name “Singer” in choirs than other vocalists.

There’s more “Johns” that are #1 in the #2 industry.

It’s all related to the power of suggestion; We repeatedly hear our own names over and over again, therefore we become what is subconsciously suggested to us. So what name will you give yourself? “Loser” or “Winner”?

Episode 59: Concrete Profitability with Nick Dancer

Also Available On

 

Show Summary

Nick Dancer joins Mike Michalowicz, Chris Curran and Kristina Bolduc for Episode 59 of the Profit First Podcast! Nick talk about his experience with implementing the Profit First system in his business.

 

Our Guest 

Nick Dancer began his work with concrete right out of high school working a summer job pouring concrete basements. In 2007 he started what is now known as Dancer Concrete Design. Initially creating custom architectural elements out of concrete such as countertops and furniture he found his true passion in changing the design of a space through concrete flooring. Nick has a vast portfolio including works installed on projects ranging from small residential to large commercial projects. His passion and love for concrete and his developing awareness of design encourages Nick to always find solution to various problems. Dancer Concrete Design works with clients who value open communication, quality workmanship, and good design and they hold themselves to a high level of accountability and look to serve. Nick and his team only complete projects that they can be proud of. Nick is also very involved in the decorative concrete industry by speaking at conferences and writing for various trade publications. Dancer Concrete + Design serves residential, commercial and industrial clients and has no limit on project size or concrete condition and welcomes the challenges that other contractors may turn away.

 

Show Quotes 

Prior to Profit First, Nick tried to grow his business by forcing growth. He thought if he hired enough people growth would just come… but that didn’t work so well and they ran out of funds. They were a 10 person company and brought in a little less than $1 Million dollars in revenue; November and December were their weakest months. Nick sold his personal car to make payroll which was a wake-up call. They needed a systematized way to handle their bills and incoming receipts. That’s when Nick was introduced to Profit First… now they are a 14 person company and will do over $1 Million dollars in sales, and November and December have been their best months.

What we don’t like we push off until later; whatever get’s pushed off until later never gets done.

Start a tax account to prepare for taxes. Also consider setting up an extra account for “charitable giving” – if you’re involved in your community and someone asks for donations or sponsorship, you already have money budgeted for it. “When in doubt, set up another account.”

Staying disciplined with your accounts is crucial!

 

Show Links

http://nickdancerconcrete.com/

http://nickdancerconcrete.com/core-values-promise/

http://nickdancerconcrete.com/life-of-purpose/

http://nickdancerconcrete.com/photo-galleries/

 

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.