Mike Michalowicz's Blog, page 79

Don’t Call Profit The Bottom Line

Let’s say for a second that you have decided to exercise more. There’s more than a tire around your waist, after all, you have tires everywhere. To fix your fitness, you plan to hit the gym. You have two options:

1. The second you wake up, put on your gym clothes and head to the gym.

2. At the end of the day, right before you go to sleep, head over to the gym.

Which one do you think will be more successful?

The answer is obvious. Putting your workouts at the very start of the day will stage you for success. When you workout first, the obstacles of the day can’t get in the way. Also, you have the energy and availability to do it. Plus, as a bonus, a great workout in the morning positions you to have great energy for the rest of the day. You have no excuse not to work out when the work out comes first, so you do.

Conversely, working out right before nigh-nigh time is a recipe for disaster. You’re already tired from the day. Commitments and distractions abound. Plus, the workout becomes the one thing standing in the way of a good night sleep. When your work out comes last you have every excuse not to do it, so you don’t.

Now let’s talk about profit. Profit historically comes last. It’s the “bottom line” after all. So, you likely check your profitability at the end of the year. Or maybe at the end of the quarter or month. You, and most entrepreneurs, treat profit like a nighttime workout. No wonder so few companies are ever profitable.

Let me suggest something much more fiscally intelligent: Take your profit first. Take a predetermined percentage of profit from every single on of your deposits, every single time. Make your profit the equivalent of the morning workout. When profit comes first, you will have no excuse not to be profitable.

If you want a financially healthy business (and life), realize that profit is not the bottom line. It’s the first line. Profit first, always.

Small Step Prospecting

Don’t send me an email telling me to “click here in the next five seconds” or I will forever lose the deal of a lifetime.

Don’t call me asking me to donate money to your charity, when I have never heard of you before.

Don’t assume the sale. Don’t give me an ultimatum. Don’t tell me how you can fix my problems. I have no idea who you are, yet.

I want to do business with people who I know, like and trust. First.

If you want to market to me, take small steps. Let’s just say hi and learn about each other. That’s it. Don’t sell me. I will sell myself.

And if you haven’t figured it out yet, me is everyone. It your entire market.

One Accountable, Many Responsible

If there is one thing that is absolutely guaranteed when working with a team, if multiple people are made accountable to an outcome it is unlikely to happen. It is the ultimate game of passing the buck, which usually ends with a triumphant finger pointing.

Whenever a specific outcome is needed, make one person (and only one person) accountable to the outcome. If it doesn’t happen, they are the one to face the consequences. If they succeed, they receive the recognition.

Of course, one person may be not be the adequate staffing to complete the goal at hand. The other people are responsible. They all must get their roles, and report to the one who is accountable. So while many can be responsible for a project, only ever make one accountable.

Small Plate Money Management

The American (and global) waistline continues to grow. The State of Obesity reports that nearly 40% of American adults between the ages of 40 to 59 are obese. That means either you are one of the folks you regularly are in contact with (a friend, relative, colleague, etc.) is obese.

The symptoms of this epidemic vary. Not enough exercise. Too much junk and processed food. Medical conditions. Not enough natural foods.  And while the symptoms vary the cause weight gain is always the same, the body retains more calories than it burns.

The solution to obesity is simple, at least in concept. Doing it is the hard part.  Consume less calories than you burn and you will lose weight.  You can continue to each hamburgers and twinkies, just a lot less, and you will lose weight. You can skip exercise, as long as you still burn more calories than you consume and you will lose weight.

Understanding this simple formula of consuming less calories than you burn, applying a solution is radically simple: use smaller plates. By limiting the space available for your food portions, you will take in less calories, yet still be able to follow you normal pattern of filling up the plate and cleaning off the plate.  You don’t have to change you habits (fill up the plate and eat all that is on the plate), you just need to establish “guardrails” that limit the intake.

Money can (and should) be managed the same way. Our normal behavior is to consume all that is made available to us.  We have one big “plate”, our checking account, and always find a way to spend it all.

Episode 54: Business Synchronization and Profitability with Antoine Gerschel

Also Available On

 

Show Summary

Teams of Distincton co-founder Antoine Gerschel joins Mike Michalowicz, Chris Curran and Kristina Bolduc for Episode 54 of the Profit First Podcast! Antoine has some fantastic words of wisdom for moving your business towards distinction (rather than extinction!)

 

Our Guest 

Antoine Gerschel is co-founder of Teams of Distinction, an advisory firm focusing on helping organizations reach SWING: the near perfect synchronization of talented people.  Before starting “Teams of Distinction”, Antoine has had multiple corporate and entrepreneurial leadership positions, including being the head of global leadership development at Sanofi-Aventis, and the COO of a learning technology start-up.  He has trained and coached teams on five continents and has written 3 best-selling books on conflict, change and communication. He has been featured in Forbes and other leading business publications. Recently he has helped such organizations as the US Trademark and Patent Office, The Department of Health and Mental Hygiene of the City of New York, Bayer, Pfizer, Munich Re, Swiss Re, UBS, Walmart and multiple start-ups.  He has also been guest speaker at University of Pennsylvania’s Wharton Business School and at the University of St.Gallen in Switzerland.

Antoine is originally from Zurich (Switzerland), and, with his family, has spent the past 18 years in Princeton, New Jersey.

 

Show Quotes 

You have to be a “bean counter” and know how much you have in your bank at the end of the day.

It’s very easy to run out of cash when you’re successful – you will be more inclined to make investments and payments upfront. It’s easy to spend the money when you have it.

Many businesses are invariably either moving towards distinction or extinction. Get your company moving towards distinction!

Gradually get your business into the swing of things – there are 5 steps to doing so:

1. Mission of critical thinking – What’s the business mission? What’s the team mission? Every team needs one in your company.

2. Be tactical & practical: aspirational ambitions – Is there 1 single thing the whole team can rally behind? A common short term objective for the whole team rather than one person.

3. Internal combustion – make sure every individual is operating at their best – make sure they’re happy with what they do. Communicate with your staff! People will only express their thoughts and concerns if you provide an environment that facilitates conversation.

4. More than the sum of it’s parts – value your time. Create a situation where you and your team function automatically and have a common understanding.

5. A mind of it’s own – trust in your employees to make decisions based on the interest of the company.

 

Show Links
Antoine’s Website: http://teamsofdistinction.com/
http://teamsofdistinction.com/swing/
http://teamsofdistinction.com/free-consultation/
http://teamsofdistinction.com/blog/

Teams of Distinction on Facebook
Antoine Gerschel on LinkedIn
Twitter: @DistinctTeams
Teams of Distinction on Youtube
https://plus.google.com/+Teamsofdistinction

 

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.

Episode 54: Business Synchronization and Profitability Antoine Gerschel

Also Available On

 

Show Summary

Teams of Distincton co-founder Antoine Gerschel joins Mike Michalowicz, Chris Curran and Kristina Bolduc for Episode 54 of the Profit First Podcast! Antoine has some fantastic words of wisdom for moving your business towards distinction (rather than extinction!)

 

Our Guest 

Antoine Gerschel is co-founder of Teams of Distinction, an advisory firm focusing on helping organizations reach SWING: the near perfect synchronization of talented people.  Before starting “Teams of Distinction”, Antoine has had multiple corporate and entrepreneurial leadership positions, including being the head of global leadership development at Sanofi-Aventis, and the COO of a learning technology start-up.  He has trained and coached teams on five continents and has written 3 best-selling books on conflict, change and communication. He has been featured in Forbes and other leading business publications. Recently he has helped such organizations as the US Trademark and Patent Office, The Department of Health and Mental Hygiene of the City of New York, Bayer, Pfizer, Munich Re, Swiss Re, UBS, Walmart and multiple start-ups.  He has also been guest speaker at University of Pennsylvania’s Wharton Business School and at the University of St.Gallen in Switzerland.

Antoine is originally from Zurich (Switzerland), and, with his family, has spent the past 18 years in Princeton, New Jersey.

 

Show Quotes 

You have to be a “bean counter” and know how much you have in your bank at the end of the day.

It’s very easy to run out of cash when you’re successful – you will be more inclined to make investments and payments upfront. It’s easy to spend the money when you have it.

Many businesses are invariably either moving towards distinction or extinction. Get your company moving towards distinction!

Gradually get your business into the swing of things – there are 5 steps to doing so:

1. Mission of critical thinking – What’s the business mission? What’s the team mission? Every team needs one in your company.

2. Be tactical & practical: aspirational ambitions – Is there 1 single thing the whole team can rally behind? A common short term objective for the whole team rather than one person.

3. Internal combustion – make sure every individual is operating at their best – make sure they’re happy with what they do. Communicate with your staff! People will only express their thoughts and concerns if you provide an environment that facilitates conversation.

4. More than the sum of it’s parts – value your time. Create a situation where you and your team function automatically and have a common understanding.

5. A mind of it’s own – trust in your employees to make decisions based on the interest of the company.

 

Show Links
Antoine’s Website: http://teamsofdistinction.com/
http://teamsofdistinction.com/swing/
http://teamsofdistinction.com/free-consultation/
http://teamsofdistinction.com/blog/

Teams of Distinction on Facebook
Antoine Gerschel on LinkedIn
Twitter: @DistinctTeams
Teams of Distinction on Youtube
https://plus.google.com/+Teamsofdistinction

 

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.

YES: The Most Dangerous Word In Business

It’s YES. The most dangerous, damaging word in business is YES.

I know what you are thinking. “What the hell, Mike? Business is all about getting the customer to say yes, dummy. And an entrepreneur’s job is to always say yes to them. The customer is always right, after all. Yes?”

Wrong! Deadly wrong.

In fact your business’s life is dependent upon how often you say NO.

Don’t believe me? Let me share a little story, and perhaps you will agree with me on how dangerous yes is.

Let’s say you have a lawn mowing company and a client asks you to simply rake the leaves. Yes! It is a no brainer. Quick, easy money.

While you are out raking leaves, you can’t also be mowing the lawn for a different client. And you surely can’t be answering the phone when a new lawn mowing prospect calls.

So now that you are raking leaves AND mowing lawns, you are missing the next mowing job and all the growth opportunities that exist by being efficient at just one thing are lost.

Next time you are back at the office and waiting for the phone to ring, in comes a gutter cleaning project. You need the money, and it is kinda like raking leaves anyway. Kinda. So, YES, you take it. And while you’re away another mowing job is missed. But you’ll never know it.

And since you are cleaning leaves, siding houses makes sense. You have the ladders any way. Oh, and the customer asked… so YES, chimney repair is now your gig too. And YES, you will deliver wood for the chimney. YES you will make the fire. And the customer wants food, so YES you’ll cook it.

The mowing business? It was struggling any way. Thank God you said YES to all those other opportunities.

I have a question for you. Name the most successful lawn mowing, gutter cleaning, lawn raking, chimney repairing, fire making, cooking company that you know. Nothing bigger than the local Jack of all trades…. you know, the YES MAN.

I bet you can name hugely successful businesses that just do one thing. Just mow lawns or just cook meals. They said NO to all the other stuff.

Now it’s your turn. Learn to say no. It will serve you well. You grow by saying no.

The Right Place At The Right Time

Chances are your business is like a gumball machine.

Your clients aren’t strategically planning to buy from you. They aren’t spending years evaluating and weighing each option. They aren’t thinking about the consequences a year from now. Let alone a day from now.

They simply pass by your gumball machine. You are at the right place, at the right time and it becomes a no brainer.

I am not suggesting that the decision making process to buy from you is as light as a gumball. I suspect you charge more than twenty five cents for what you sell. But never discount the importance of being in the right place at the right time.

Ask your best customers where they go, what they read, who they hang out with and you will find the right place. Ask them when they do those things and what triggers them to do those things, and you will find the right time.

Episode 53: Branding and Profitability with Brian Scudamore

Also Available On










Show Summary

Business Owner Brian Scudamore joins Mike Michalowicz, Chris Curran and Kristina Bolduc for Episode 53 of the Profit First Podcast! Brian shares his story and gives us some great branding and marketing tips.

 

Our Guest 

Brian Scudamore is the Founder & CEO of three franchise companies; an entrepreneur recognized for his passion, vision, and faith in people. Brian started his first business, 1-800-GOT-JUNK?  in Vancouver, Canada at the age of 18. He went on to revolutionize the junk removal industry. But he didn’t stop there. In 2010 came WOW 1 DAY PAINTING! and in 2013, You Move Me, a unique moving company.

Brian and his companies have celebrated appearances on programs such as Good Morning America, Dr. Phil, The Today Show, Oprah, Undercover Boss and Hoarders. His story has been told in Fortune Magazine, New York Times, Huffington Post, and Wall Street Journal, to name a few.

Accolades include Fortune Small Business’ Best Bosses Award, Globe & Mail’s Top 40 under 40, and the International Franchise Association’s Entrepreneur of the Year in 2007, while 1-800-GOT-JUNK? is a three-time winner of a prestigious “Best Company To Work For” award in British Columbia.

 

Show Quotes 

You want to get your business to the point where you work on it, not in it.

ENTRY-preneurs (your clients): people who are finding their passion and entry point; joining your business to build something in their market.

When you’re building a brand, people buy who you are more than what you do. What does your brand stand for? What are you about? The look and culture of your brand is important. If you’re going to make a change, the sooner you change it the better; having the right brand is everything.

Working in a “pit” instead of individual offices is a game changer – It’s easy to communicate quickly, you feed off of each others energy and it creates a whole different vibe in the office.

Marketing needs to be memorable, easy, and repeatable.

You need people that believe in your company! It’s a team effort. We all have our strong points and our week points. If you can find someone who can make your weaknesses their strengths in your business, it will soar.

 

Show Links

Website: http://www.o2ebrands.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 Entrepreneur’s Costume (Hint: Dress Like Your Brand)

Some entrepreneurs spend more time picking out a Halloween costume than they spend developing their own personal image. Even women, who traditionally allocate more time and energy to their appearance, often follow trends or societal norms when choosing a personal style, which is nuts, because then they just end up looking like all of the other women at the table. Brand before fashion, people!

Whether you like it or not, you are your brand. Even if your business is not centered on your expertise, you still have to represent your company in meetings and at public events. Even if you’re an über geek with serious agoraphobic issues you still have to Skype from time to time, and when you do, you better “look the brand.”

My company is not a three-piece-suit company, so I don’t wear one. Ever. I know what my brand message is, and I dress to fit that image— all of the time. Message. Consistency. Message. Consistency. The most successful entrepreneurs in the world know to follow these simple rules when walk into their pimped out closets every morning.

Take Martha Stewart. Her everyday look is the same as her on-screen, in-print costume: country estate meets self-made media mogul. Orange jumpsuit aside, she dresses to suit her carefully planned image for every occasion.

Or look at Hugh Hefner. From the beginning he dressed according to the Playboy image, complete with James Bond suits and velvet smoking jackets. You’re never going to see this guy in sweat pants or Bermuda shorts. His look is so consistent, so famous, people actually show up for Halloween as Hugh Hefner. Now that’s a costume.

Dressing like your brand goes beyond consistency. Martha and Hugh dress not only according to their company’s image; they dress to embody the aspirations of their target market. Martha wears her tailored suits and cashmere sweaters to appeal to every wannabe domestic goddess. And Hugh dresses like he either got some, is about to get some, or both, which plays into men’s fantasies— not that I would know that or anything.

When dressing like your brand, remember to think about the whole picture: hair, shoes, jewelry and other accessories. Richard Branson, one of the most successful entrepreneurs, dresses to the spirit of his brand: adventure. He’s a bit of a rebel, and he has the hair to prove it. When people see a picture of him they get him, and more importantly, they get his brand. That’s why you’re never going to see him with a crew cut.

So, are you dressing according to your company’s image, or are you showing up to Chamber of Commerce meetings looking like a schlub— or worse, like everyone else?

This upcoming Halloween, and everyday thereafter, go as your brand.