Mike Michalowicz's Blog, page 84
July 14, 2015
“Will & Won’t” Beat “Can & Can’t”
My friend blurted out “I can’t take it anymore.”
Really? You can’t or or you won’t?
Stop saying you can (or can’t) do something. It only speaks to your perceived ability, but is also a non-commitment. Inaction follows non-commitment.
Start saying will (or won’t). These words speak to your commitment, and action follows commitment.
I already know you can. So don’t tell me that. Instead tell me if you will or won’t. I expect you to commit.
July 13, 2015
Episode 36: Employee Incentives and Business Funding with Christine Gray and Jared Hecht
Show Summary
Christine Gray and Jared Hecht join us for Episode 36 of the Profit First Podcast. Christine shares her structure for running a successful business. Jared shares with us how Fundera works!
SPOILER ALERT! We talk about the Jurassic World movie.
Our Guests
Christine Gray (left)
When Christine started Balance Your Books in 1997, her vision was to create an accounting advisory firm that focused on the growth of entrepreneurs, their business, and their financial health. After 10 years as a sole practitioner she decided to grow her practice. Balance Your Books grew rapidly and without processes and systems. Throughout this growth, she experienced personal financial growth, but at a cost of her personal time. That’s when she started her research on how she was going to develop Balance Your Books to sustain without her day-to-day involvement, grow the talented team she was fortunate to have hired, and grow her clients into well-rounded profitable entrepreneurs. Christine joined accounting firm accountability groups, and reached out to her peers; the change for her was finding Profit First. Through Profit First and the road map she created, Christine’s schedule is starting to open up, she is gearing towards a strong business development strategy around profit advisory and her team is feeling in balance with their career goals.
Jared Hecht (right)
Jared Hecht is a co-founder and the chief executive officer at Fundera, an online marketplace that matches small business owners to the best possible lender. He started Fundera after his cousin experienced the frustration and lack of transparency of applying for a small business loan. Previously, Jared co-founded GroupMe, a group messaging service that in August 2011 was acquired by Skype, which was subsequently acquired by Microsoft in October 2011. Prior to GroupMe, he led Business Development at Tumblr where he focused on international expansion and strategic partnerships. Jared currently serves on the Advisory Board of the Columbia University Entrepreneurship Organization and is an investor and advisor to startups such as Codecademy, SmartThings, and TransferWise.
Show Quotes
Let your employees become experts in separate industries and move them into a niche.
Talent deserves to grow!
“Incentive-ize” the results you want. Focus on what you want, build a structure around it to encourage people to be rewarded around what they want to do.
When looking for products or services for your company, search for the vendor (like Fundera) that will guide you to the products that are a good fit for you, and will explain why you are not eligible for other products.
Don’t get caught in a “death spiral” trap – this is when small business owners already have quite a bit of debt from starting with short term, high interest rate business loans that are difficult to pay back… and they continue to take out more loans. Do your research and find the best lender for you!
Have a question you’d like us to answer on the air? Email Kristina or Mike!
Kristina@MikeMichalowicz.com
Mike@MikeMichalowicz.com
Show Links
Christine Gray
Website: http://www.teambyb.com/
Jared Hecht
Websites: www.fundera.com , www.fundera.com/business-loans , www.fundera.com/blog
Twitter: www.twitter.com/jaredhecht , twitter.com/fundera
LinkedIn: www.linkedin.com/in/jaredhecht/
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!
July 10, 2015
The Right Way To Ask For Help
At one point or another, we all need some form of help, but very few of us really know how to ask for it in the right way. And if you don’t ask in the right way, you risk coming off as selfish or as if it doesn’t really matter in the first place. Getting the help you know you need really comes down to being an effective communicator when asking for that help. And it’s actually easier to do than it may seem!
The Right Approach
A select few individuals actually ask for what they need in a respectful and effective manner. And it is no surprise that those people get their requests filled, time and time again. Here is how they do it, and how you need to start doing it, as well:
1. Prepare them. Rather than just blurt out what you want or need from someone, take a softer approach, such as saying, “I need to ask you a favor” or “I want to ask you about something I need help with.” By leading with this, you don’t blindside the person. It brings them comfort and makes them feel appreciation for you, since you give them the time (albeit seconds) to mentally prepare for your request.
2. Tell them what you need. This is where you really need to be specific about what you want or need. You want the person to be able to answer yes or no, in direct response to your question. “Yes,” of course, is what you want. But even “No” will bring you clarity about what you need to do next (like move on to the next person). What you are trying to avoid is having them ask whether they can take some time to think about it, or state that they need to consult with others before committing. So, always try to ask for help in a way that will get you a straight yes or no response.
3. Tell them why you need it (a justifier). This is a little behavior-influence voodoo magic! Study after study shows that people are more persuaded to say yes to a request when there is a justification that supports the reason for asking. Instead of just asking, “Will you cover my shift tonight?,” a far more influential request would be, “Will you cover my shift tonight? I need to get home, since my babysitter canceled at the last minute and my 3-year-old son is home alone.” Just remember that your justifier always needs to be truthful.
4. Give them a way out. No one feels like doing a favor that is simply put upon them. By giving them a way to decline without egg on their face, you will make them feel much better about you. And when they do say yes, they will feel it was fully their decision – which is a really good thing. Oh, and if they decline, they would have hated you if you forced it upon them, so it is a good thing, either way.
5. Remember appreciation and gratitude. Always thank them when they do accept your request. Reiterate how it is helping you, and reward them for the favor. A little gift is a wonderful way to show your appreciation. “Thanks for covering for me, last night. You really helped me out…so here is a little something for you – a bottle of my favorite wine.” And, by giving a gift, you position yourself to ask them for a favor again, if you ever need one down the road.
Your Turn
When people do help you out, they may come back and ask for a return favor. They may not have read this article, to know the right way to approach the situation, but you have, so you can apply what you know to responding to their request.
Doing favors for one another is part of our nature. But we are not always taught the right way to go about voicing such a request. Making the effort to approach it in the above manner will greatly increase your chances of success. You will also be demonstrating to others how to effectively ask for such assistance from others.
July 9, 2015
Attract More Business! Go Beyond Free Shipping
If you are like most businesses that have products to ship, you likely already know that when you offer free shipping, well, customers tend to buy more. In fact, this happens to a degree that defies logic. The problem with the free-shipping incentive is that most customers know it and expect it, making it that much more important that you go beyond free shipping in order to get the sale.
UPS reports that approximately half of online transactions include free shipping. In addition, a comScore survey states that 61 percent of customers say they will cancel an order if free shipping isn’t offered. So if you thought that just offering your customers free shipping was incentive enough, think again! Now is the time to go beyond and stand out.
So if you want to stand out from the standard free-shipping crowd (and why wouldn’t you want to, considering that it’s what everyone is doing?), here are three ways to do it:
1. Member with Shipping Benefits. Offer a membership, where the person pays an annual membership fee but, in return, qualifies for faster shipping. Many people like this option because it means they will get their packages faster, without having to pay for a premium upgrade each time. The key here, however, is that the shipping has to be a lot faster than what they get without the membership (such as offering two-day shipping, versus shipping in 5-7 days).
2. Pick-Up Pay Back. Provide your customers with a discount, which reflects the shipping cost savings, if they pick the order up from your store. They will appreciate the additional savings and it is one less package you will need to prepare and ship. Your customers may also like the personal connection of being able to walk in and see your business, beyond its site or catalog.
3. Local Store Pick-Up. This one could be a big win for you in terms of cutting costs, if you do a lot of shipping. What you need to do is build relations with stores in major metro areas. When customers order, have them pick it up at these stores. That way, you can ship a large container (which is cheaper than individual shipments) to the store with all your orders from local customers, and the store can hand each of the orders out.
Most businesses offer some sort of free shipping, so when you add one or more of these other incentives, you give them a reason to buy from you instead of the competition. And now that you are attracting more business, it is a good time to talk about cutting your shipping costs, as well.
Reducing your shipping costs will keep more money in your pocket. A good way to do this is to look at the flat-rate shipping options that exist today. Even the post office is offering flat-rate shipping rates. Also, take advantage of reusing boxes and mailers that you can get your hands on. Not only is this better for the environment, but it will help keep your expenses lower, which is always a good thing.
Although you are selling products, there is a good chance that you are also buying, from time to time. Ask yourself what you would like, as a buyer, when it comes to shipping. If it is something that would entice you or help you become more satisfied as a customer, then there is a good chance it will do the same for your customers.
Shipping procedures can be a deterrent to online customers, or they can be an incentive. As an entrepreneur, it is your job to shoot for the incentive. When you offer incentives beyond just free shipping, more customers will likely buy from you as a result.
July 8, 2015
The Shoulder
I am working on my next book as I write this. One of the privileges of being an author is you get to speak with extraordinary people from all walks of life. Today was no different.
I spoke with pro-surfer Holly Beck, and what she shared with me about surfing (and business) just can’t wait for my book to be published. She told me about the shoulder.
When a surfer rides a wave, they look for the core of the wave, the shoulder. All the power and energy is here. To ride the wave, you need to stay on the shoulder. Riding up and down it, and carving left and right. If you get off the shoulder for too long you lose the momentum and wipeout or sink. If you stay on the shoulder, you get a ride of a lifetime.
Marketplace waves have shoulders too. It is that core community of loyal clients in the marketplace. The energy and power is here. You need to know who they are and cater to them. As they change you need to morph with them. You need to carve, twist and turn to always be on the shoulder. If you ignore the shoulder you will wipeout or sink into oblivion. If you stay on it, you will have the ride of a life time.
July 7, 2015
Are You Replaceable?
As an entrepreneur, your first response to that question will likely be a resounding, “No, I can’t be replaced!” After all, we have been programmed to believe that being replaceable is a bad thing, like maybe what you do isn’t sufficiently important or involved. But I’m here to tell you that not being replaceable is a problem. A big problem!
Hear me out on this, because I know it is probably unsettling, at first, to think that you should want to be replaceable. After reading this, however, I think you will find that there are some benefits to be being replaceable that make it a must for every business owner.
For starters, if you have built a company and can’t be replaced, you have, in fact, built a trap. And that’s not something you want to get yourself into. Your job as a business owner is to make sure that all facets of your business are systematized, so that it can sustain itself and grow, as people come and go. And that, my friend, includes you.
Your job is to make yourself replaceable by systematizing everything you do. Document the duties you perform. Bring in contractors and employees to do what you are doing. If they can’t do it, go back and fix the system. If they still can’t do it right, it’s time to go back and fix the system.
Here are some of the reasons why you need to be replaceable in your business:
• Saleable. When you are replaceable, your company is more saleable. When someone buys your company (and trust me, this is a happy day), they will value it more if they can just take over the reins and it runs. If your absence will cause it to struggle, because you haven’t made yourself replaceable, the value drops.
• Freedom. This is probably one of the reasons you started the business in the first place. If you are the critical piece, you won’t be able to take time off. If you can make yourself replaceable, you can go out and enjoy life while the business grows.
• Leadership. When you can systemize the day-to-day actions, you can shift into a role where you seek out new opportunities, try new things, and innovate. In other words, you will be able to lead your company where you want it to go.
• Outside In. If you can manage to get yourself out of the day-to-day, it will give you a chance to watch the business from afar. This is big, because it will give you a chance to make little tweaks and changes and watch how the business reacts. You become the chef, rather than just being a part of the stew.
Now you can see that there are benefits to making yourself replaceable in your business. Another thing you may not have thought about is what would happen to your business if you were to suddenly find yourself too ill or incapacitated to carry on your work. While we don’t like to think about these things, we really need to. If you are not replaceable, and something happens to you, it could mean the immediate closing of your business. But if you have made yourself replaceable, others could easily step up and carry on, so that things are running smoothly when you return!
So go ahead, make yourself replaceable. It doesn’t mean that you will immediately be replaced, but it does mean that your business, which you have worked so hard to build, is ready to carry on, even if the day comes when you can’t, or no longer want to!
July 6, 2015
Episode 35: Productivity and Cash Flow with Emily Morgan and Billie Anne Grigg
Show Summary
Emily Morgan and Billie Anne Grigg join us for Episode 35 of the Profit First Podcast to discuss how to be more productive in your business, and how to get that profit in your pocket!
Our Guests
Emily Morgan (left)
Emily Morgan helps entrepreneurs and execs strategically clear their plates so they can focus on what they love! She is the founder of Delegate Solutions, a Strategic Support Firm and the designer of the “Delegate Method” which helps entreps identify areas of their business they can delegate or automate for maximum efficiency. She’s helped hundreds of entrepreneurs master delegation and design systems to support and grow their awesome businesses! This year alone, her team cleared nearly 10,000 hours of tasks off the plates of overwhelmed business owners.
Emily speaks nationally on the topic of virtual teams and delegation. She’s been featured in the NY Times, NBC News and Martha Stewart Radio, and was recruited to develop a leading Virtual Assistant Training Program for an East-Coast college consortium where she personally developed two courses on virtual entrepreneurship. She is a Goldman Sachs 10,000 Small Businesses alum, and is an alumnae of UPenn. She also serves locally as a Board Member for the Economic Development Committee in Voorhees, NJ where she resides.
Billie Anne Grigg (right)
Billie Anne Grigg has more than sixteen years of bookkeeping experience in the retail and professional services sectors. She is a QuickBooks Online ProAdvisor, LivePlan Expert Advisor, FreshBooks Certified Beancounter, and is Oklahoma’s first Certified Profit First Professional. Billie Anne started Pocket Protector Bookkeeping in 2012 to provide a virtual bookkeeping solution for small to medium-sized retail and professional services businesses, with a focus on providing high-quality managerial accounting services to businesses who cannot yet justify employing a full-time, in-house managerial accounting staff.
When not keeping books, Billie Anne can usually be found with her nose stuck in one…or at least reading something on her Kindle. She is also a life-long crocheter, a fairly new knitter, a dance mom (but she’s not crazy, at least not in a mean way,) and is working with her husband (mostly on the financial side) to build their sustainable farm in northeast Oklahoma.
Show Quotes
To increase productivity in your business, focus on what goals you personally want to reach and what you want your daily tasks to be. From there you can delegate other responsibilities to your staff.
The three questions to ask yourself:
What tasks do you want to work on?
What tasks do you not enjoy working on? These are the tasks that can be delegated.
What tasks can be automated?
Scheduling and emails are the most common tasks that are delegated so the entrepreneurs can focus more on what they love.
Put the profit in your pocket.
There is always resistance with a new habit. Don’t get discouraged!
The wedge strategy: whatever your salary is – as your business increases, half of the increase is automatically diverted to a hidden account as another savings for yourself.
Have a question you’d like us to answer on the air? Email Kristina or Mike!
Kristina@MikeMichalowicz.com
Mike@MikeMichalowicz.com
Show Links
Emily Morgan
Webite: http://delegatesolutions.com/
Facebook: https://www.facebook.com/DelegateSolutions?_rdr=p
Twitter: https://twitter.com/Emily_Morgan
LinkedIn: https://www.linkedin.com/in/DelegateSolutions
Billie Anne Grigg
Website: www.pocketprotectorbookkeeping.com
Twitter: https://twitter.com/PPBookkeeping
Facebook: https://www.facebook.com/PocketProtectorBookkeeping
LinkedIn: https://www.linkedin.com/pub/billie-anne-grigg/67/190/799
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!
Episode 35 – Featuring Emily Morgan and Billie Anne Grigg
Show Summary
Emily Morgan and Billie Anne Grigg join us for Episode 35 of the Profit First Podcast.
Our Guests
Emily Morgan
Emily Morgan helps entrepreneurs and execs strategically clear their plates so they can focus on what they love! She is the founder of Delegate Solutions, a Strategic Support Firm and the designer of the “Delegate Method” which helps entreps identify areas of their business they can delegate or automate for maximum efficiency. She’s helped hundreds of entrepreneurs master delegation and design systems to support and grow their awesome businesses! This year alone, her team cleared nearly 10,000 hours of tasks off the plates of overwhelmed business owners.
Emily speaks nationally on the topic of virtual teams and delegation. She’s been featured in the NY Times, NBC News and Martha Stewart Radio, and was recruited to develop a leading Virtual Assistant Training Program for an East-Coast college consortium where she personally developed two courses on virtual entrepreneurship. She is a Goldman Sachs 10,000 Small Businesses alum, and is an alumnae of UPenn. She also serves locally as a Board Member for the Economic Development Committee in Voorhees, NJ where she resides.
Billie Anne Grigg
Billie Anne Grigg has more than sixteen years of bookkeeping experience in the retail and professional services sectors. She is a QuickBooks Online ProAdvisor, LivePlan Expert Advisor, FreshBooks Certified Beancounter, and is Oklahoma’s first Certified Profit First Professional. Billie Anne started Pocket Protector Bookkeeping in 2012 to provide a virtual bookkeeping solution for small to medium-sized retail and professional services businesses, with a focus on providing high-quality managerial accounting services to businesses who cannot yet justify employing a full-time, in-house managerial accounting staff.
When not keeping books, Billie Anne can usually be found with her nose stuck in one…or at least reading something on her Kindle. She is also a life-long crocheter, a fairly new knitter, a dance mom (but she’s not crazy, at least not in a mean way,) and is working with her husband (mostly on the financial side) to build their sustainable farm in northeast Oklahoma.
Show Quotes
Coming Soon!
Have a question you’d like us to answer on the air? Email Kristina or Mike!
Kristina@MikeMichalowicz.com
Mike@MikeMichalowicz.com
Show Links
Emily Morgan
Webite: http://delegatesolutions.com/
Facebook: https://www.facebook.com/DelegateSolutions?_rdr=p
Twitter: https://twitter.com/Emily_Morgan
LinkedIn: https://www.linkedin.com/in/DelegateSolutions
Billie Anne Grigg
Website: www.pocketprotectorbookkeeping.com
Twitter: https://twitter.com/PPBookkeeping
Facebook: https://www.facebook.com/PocketProtectorBookkeeping
LinkedIn: https://www.linkedin.com/pub/billie-anne-grigg/67/190/799
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!
July 3, 2015
A Bad Economy Can Be A Good Thing; Here’s 7 Reasons Why
You read the headline correctly! You know all too well that the economy issues have taken its toll on the country. But there is always a silver lining, and the economy is not immune. While the media loves to cover all things negative (remember, if it bleeds it leads!), there are actually some good things that can come out of a bad economy. You may not hear much about them, but they are there, and if you focus them, the rewards will be immense!
Here are 7 reasons why a bad economy is actually a good thing:
1. Strengthening Relationships. When the economy is good and you are buried in business, you probably don’t get to spend much time nurturing relationships. Whether it’s with your family, friends, or those you would like to network with more frequently, now you have no excuses. You can give the time to strengthening those relationships and help reduce stress as the same time. Remember, laughter is sometimes the best medicine!
2. Scrutinizing Spending. As an entrepreneur, you are probably pretty free with spending when the economy is doing well. You don’t mind taking on some added expenses, even if there isn’t a return, because you are not hurting financially. But during a tough economy, you will need to look at each expense and really determine if it will bring you additional value or a return. If it will not, ax it and you will help your company financially.
3. Monitoring Cash Flow. During a strong economy people usually let the money fly, whether at home or at work. They spend freely, without giving it much thought. But during a down economy, you will be forced to keep closer tabs on your cash flow. This will make you better off financially at home and in the office. It will also help you learn to be better about making financial decisions.
4. Back to the Basics. A rough economy will get people back to doing more of the free or low cost basics that help to build strong families. Spending a lot of money going out to the theater for a family showing of the latest flick isn’t the only way to build strong family bonds and be entertained. You can rent a new release for a buck, pop some popcorn, and gather on the couch in your pajamas and save a lot of money! Same goes for your business – rather than putting out money on expensive parties, you can opt for low cost company picnic-type ones.
5. Trim the Fat. This economy is the perfect time to take a look at where you are spending money and see what can be trimmed. There are likely things at home and at work that are getting your money that is completely unnecessary. Find those things, cut them, and don’t look back! You will have more cash flow, and as you have already read, that’s a good thing!
6. Get creative. During a strong economy, most people just go with the flow and reinforce the status quo. But during a weak one, people will innovate and find new ways to do things both at home and in the business world. New business ideas will come out of this economic slump, and one of them could be yours!
7. Do for yourself. During high economic times people eat out more, among other things, that they could do for themselves. By getting back into the kitchen to do your own cooking, you will have more dedicated family time, will spend a lot less money, and will most likely be eating a heck of a lot healthier!
These are just seven examples of the good that can come out of a tough economy. There are many more as well! A poor economy will make you better at watching your money, tracking your spending habits, and even creating stronger bonds with people. In the end, you will likely emerge a happier, well adjusted individual that has a keen financial sense. And that, my friends, is a good thing!
July 2, 2015
How Would You Rather Fail?
Entrepreneurship is risky. It is fraught with challenges. While you can choose to do exactly what you love to do, there is a real possibility that you will fail.
The alternative is a career where you will likely do what you don’t want. It’s a career, but there is a catch. You can fail there too. And worse, others can decide if you fail (you’re fired!).
So, if there is a real possibility you are going to fail anyway, wouldn’t you much rather fail doing what you love?
Go for it. Fail in love with what you do.
