Mike Michalowicz's Blog, page 96

Episode 12: Communication And Profitability With Mel West

Show Summary 

Business owner Mel West joins Episode 12 of the Profit First Podcast. Mel breaks down common problems in the work place and explains the importance of communicating with your employees.

 

Our Guest

Mel West is President of Prosperity Logic; a performance-consulting firm that specializes in assisting clients increase profits and achieve wealth using its Prosperity Business Model.

An advocate for developing and implementing performance improvement strategies, Mel provides consulting and executive coaching services with over 20 years of management experience with leadership roles in the financial services industry, manufacturing, and the military.

He earned his Masters of Business Administration (MBA) from St. Martin’s University and his Bachelors of Science Degree (BS) in Workforce, Education, and Development from Southern Illinois University Carbondale.  Mel is a U.S Navy Submarine Veteran and when he is not working, he is riding his Harley.

 

Show Quotes

Business problems can be narrowed down to 3 things: People, processes, or profits. Generally, If you take care of the People issues the processes and profits will take care of themselves.

Forming a peer board group requires commitment and consistency. They have to be committed to working on their business in a consistent process that allows them to go through that and track the results, and understand they are making the progress that they want to make.

Elements of a business that sucks the profit:

1. Employees are always the biggest “sucker of profit”.

2. Hiring employees to do a specific job, but then assigning them to other tasks, or not trusting them to do job.

3. How you go about making business decisions. Are you just shooting from the hip and hoping it works out?

Be able to use other people’s mistakes to your benefit. Understand your strengths, weaknesses, opportunities and threats, and how they align with your overall vision.

People want to be a part of something that is bigger than themselves, so if you have them engaged in things that are challenging them and they feel like they’re a valued part of the team, they’re going to perform better.

 

Show Links

Mel’s Website: www.prosperitylogic.com

Facebook: www.facebook.com/ProsperityLogic

LinkedIn: www.linkedin.com/in/melwest1

Mel West on Twitter

Google+: https://plus.google.com/+Prosperitylogic

 

Show Sponsors

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!

The post Episode 12: Communication And Profitability With Mel West appeared first on Mike Michalowicz.

5 Cloud Influenced Changes Your Business Will Be Forced To Make

A new year’s the perfect time to step back and take a critical look at your business with a view to making positive changes.  As you explore your options, one important area to explore is making the switch to running your business on the Cloud.  So you’re not one of the early adopters.  You’ve held out this long, and you’re wondering what changes you will be looking at should you convert your applications and data storage to web-based providers.  Here’s what you’ll need to know to plan ahead for a smooth transition.

 

The transition is inevitable.

Seriously.  The question isn’t if you’ll move to the Cloud; it’s when.   There’s one primary reason, and once you understand that reason, you’ll be both more willing and better prepared to make the change.  The Cloud, first and foremost, offers flexibility.  If you look at the significance of flexibility for just one aspect of your business – your staff – you’ll see right away that if you opt to be rigid and require that every employee report to the office every day (whether it’s essential or not,) you’ll discover that you will have trouble attracting and retaining good employees.  Workers can and do require more flexibility in terms of working hours and locations, and smart employers have figured it out.  If you refuse to offer staff flexible work options, you’re more likely to lose your best people to an employer who is more forward thinking.

 

Consumers demand convenience.  

And the Cloud gives it to them.  Remember when you didn’t have every answer at your fingertips?  Consumers don’t want to go backwards.  We’ve grown accustomed to having our questions answered immediately, and we’re unwilling to compromise in terms of time or of accuracy.  Cloud storage of data and mobile applications let businesses serve their customers in ways that are individually customizable to a greater degree than ever before.  If you’re not providing mobile apps or instant access for clients who want them, your customers will find a provider who will.

 

Your company’s infrastructure will look different.

You have a new set of filing cabinets, and your staff needs to get acquainted with them.  Once you move your data storage to the web, the new focus will be on navigation and retrieval of data rather than on the storage itself.  You may find that your staff requires dual (or even more) monitors.  You’re also going to find that more and more apps function best with touch screen hardware since touch screen is the focus for an increasing number of programmers.  There will be a training curve as you acquaint your staff with the best ways to access and navigate your new data storage systems, and you will need to identify and implement training solutions.

 

Sharing and securing information are the new priorities.  

Your company will need new policies for how to simultaneously share and safeguard sensitive data.  If you share a file with a client on Google Drive, for example, it’s essential that you give them access just to the file you want them to read, rather than to all of your files that contain information about how much money you’re making off that client.  Compartmentalizing files and raising awareness of the need to keep your company’s data secure is essential.

 

Bandwidth is king.

Once you’re running on the cloud, maintaining access to data and apps for both you and your clients is absolutely essential.  Ask yourself how you’d conduct business if your internet went down.  Does the thought give you nightmares?  Time to develop a backup plan.  Whether it’s  finding alternatives (satellite, DSL, cable) or creating contingency plans, you need a solution for the problems that will inevitably crop up.  Planning for catastrophe can ensure that your business keeps running even when things go wrong and will earn you customers for life.

 

You may not be enthusiastic about transitioning to the Cloud, and you’re smart to try to anticipate the changes you’ll need to make.  Getting your staff trained and ready to handle the challenges associated with significant changes will dramatically increase your odds of success when you do finally make the leap.

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Bad Decision Makers Have These 8 Tendencies

I’ve been an entrepreneur for a lot of years.  At one point, I’d started, grown, and sold a couple of businesses, and I thought I knew everything there was to know about making business decisions.  After all, I was a success!  After I sold my companies, I became an angel investor – finding ventures that I thought were promising and plunking down my hard earned cash to give other entrepreneurs a chance at making their dreams a reality.

As it turned out, I was more like the angel of death.  I made some truly terrible decisions.  So bad that it started to seem like everything I touched was destined to fail.  I realized that I’d been pretty lucky early on (in addition to the fact that I’d worked really hard,) but I knew the money I’d earned wasn’t going to last forever – especially if I didn’t rethink the way I made my decisions.

Here are the things I learned – the hard way – about the tendencies and motivations of people who are making lousy business decisions.

Basing decisions on your ego.

If you think you know it all and that your expertise in a narrow field will translate to every other field, you’re just flat wrong.  Don’t fall prey to the fantasy that you’re King Midas and everything you touch will turn to gold.  In fact, even King Midas wasn’t very happy by the end of his tale, but you’re not Midas.  Assemble a team of folks whose experience rounds yours out, and you’ll have the benefit of an entire team’s input, rather than relying solely on your own knowledge.

Relying on the momentum effect.

There’s certainly some truth in the belief that past events can predict future events.  The problem, though, is that the world evolves.  Inevitably, things fall out of fashion and are replaced by new products.  Think about the typewriter.  At one point typewriters were the best technology available, and they sold like crazy.  But at some point, companies had to move on – to work processors and computers – or become obsolete.  If you’re sticking with the tried and true and refusing to look at other options, you’re running a high risk of making a bad decision.

Being lazy.

Entrepreneurs have to be hungry, have to be curious.  If you’re only looking to confirm the results that you expect when you research a new opportunity, then you’re likely to ignore other, potentially significant results.  Make sure you’re looking at the whole picture – both negatives and positives of any decision.

Being indecisive.

Don’t become a victim of the mañana syndrome.  Delaying a decision is still making a decision, and if you’re putting off making a choice, you can end up limiting your options down the road.  You may be right.  You may be wrong.  Don’t let yourself be cheated out of success, though.  Make the decision and stand by it.

Going it alone.

Just like you can’t expect yourself (or anyone else) to be an expert in every area, you can’t expect that you’ll necessarily understand all of the options and complexities of any given situation.  Sometimes the very best results are achieved through compromise.  If you’re the sole decision maker, then you’ll never get the benefit of working through all of the angles and options before arriving at a reasonable compromise that benefits everyone.

Executing poorly.

Making a decision is only ten percent of the process.  The execution of that decision is the other ninety percent.  If you fail to communicate the reasons for your decision to your staff, they may fail to understand its importance.  If you neglect to plan or follow up on the execution of your decision, then you’re not getting the job done.  Make sure that you implement your changes in a thoughtful, logical way.

Seeing the tree, rather than the forest.

Good decisions are made with the big picture in mind.  If you’re focused on putting out fires or only thinking about next week, then you’re not going to be able to plan for the next year, or the next decade.  Leave the short-term decisions to your trusted staff, and devote some energy to the long term.

Not balancing your sources.

Abraham Lincoln was a great President, but it wasn’t just because he was a smart, thoughtful man.  He was great because he surrounded himself with a Cabinet comprised of his most bitter rivals.  He knew the power of hearing from someone other than yes men.  Don’t fall into the trap of listening to sycophants who only tell you what you want to hear.  By seeking out contrary opinions, you’ll avoid making decisions based on biased sources.

One of the most significant roles we play as entrepreneurs is the decision maker.  If we can improve the process by which we make the vital decisions that affect the health and profitability of our companies, then we’re certain to see more consistent and positive outcomes.

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The Adored Entrepreneur: 9 Traits To Acknowledge

We all know the type – the business owner for whom any employee would bend over backwards.  The shop owner whose staff treats every single customer as if they’re the most important person in the world.  There are entrepreneurs who inspire fierce loyalty and adoration, and we can learn a lot from these people.  What is it that makes them so special?

They’re truly authentic.  Adored entrepreneurs are unabashedly themselves.  They’re consistent because they’re not playing a game or putting up a front when they’re on the job.  Whether you see them in the office or at the amusement park, these people are always true to themselves.

They understand the power of reciprocity.  Adored entrepreneurs understand that hard work, honesty, and trust are given to the bosses who first demonstrate those qualities themselves.  Being open, trusting and trustworthy, and being willing to work harder than anyone on the staff is how the best business owners manage to have a staff who’d go to the ends of the earth to prove that they deserve the boss’s respect.

They’re positive.  We have to learn to lead the way in enthusiasm.  After all, if you’re not excited about your company, how on earth can you expect your assistant to be excited?  Harness the power of emotion and show your staff that you’re pumped about what you’re doing.  It’s important to acknowledge the negative things that will arise, but you should work to banish negativity (and the morale drain it creates) from your workplace.

They’re highly approachable.  The most powerful entrepreneurs I know are fiercely democratic, in that they believe that we’re all equal.  An adored entrepreneur knows that every single employee is important and has valuable insight to share and provides a unique value to the company.  Whether it’s the janitor, the top salesperson, or the part-time customer service rep, we need to be available to every single member of our staff.

They listen more than they talk.  We have two ears and one mouth for a reason, folks.  We should listen twice as much as we speak, and adored entrepreneurs understand this principle.  Observe, learn, and take it all in.  Then when you have something to say, people will listen.  Make your words count because of their content, rather than by being the most long-winded one in the room.

They pat, kick, pat.  Entrepreneurs have to deal with problems just like anyone else, but what differentiates the adored ones from the rest is the ability to give constructive criticism.  Start with a pat on the back, follow it up with a kick in the ass, and end with a pat on the back.  Praise, admonish, and praise.  This technique softens the blow and reinforces that you believe your employee is an important member of your team.

They work hard.  True entrepreneurs know that they have to set the example for the entire company.  If you’re merely in it for the Rolex and the golf club write-off, then it’s going to show in the attitudes of your staff.  Working hard sets the tone and motivates your employees to follow your lead.

They’re both authoritative and human.  Adored entrepreneurs don’t ignore problems.  They acknowledge that problems are inevitable, and then set out to solve them right away.  We like our leaders with a healthy dose of empathy and a willingness to acknowledge that any path that’s worth taking will come with its share of difficulties.  Let your staff know that you’re a realist who won’t tolerate problems for long.  Be a problem solver and move on.

They’re masters of public recognition.  There’s a huge reward in acknowledgment.  Being lavishly, genuinely praised in public will win over your staff every single time.  Just as you serve up criticism in private, you should bestow praise publicly.  Your employees will not only be proud of their accomplishments, but also proud of their place in your company.

Don’t get me wrong.  I’m not telling you that being an entrepreneur is a bed of roses.  There will be plenty of times when you have to make hard decisions that can’t possibly make everyone happy.  What I am unequivocally saying is that you can still, consistently keep the respect and adoration of your staff if you model the traits listed above.

 

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Are THESE Employees Draining Your Profit? By Sabrina Schleicher, PhD, PCC, BCC

There is a hidden profit leak in many small businesses. Payroll is typically one of the largest expenses in a small business. It’s also the source of a significant hidden cost—employee disengagement. During a Pumpkin Plan Kickstart Mike and I conducted, I walked our participants through calculating the cost of employee disengagement in their small businesses.  The cost of employee disengagement ranged from several hundred thousand dollars to millions of dollars—ANNUALLY. OUCH!

Here’s the problem: It seems so hard to find good-quality people to hire that you hang on to marginal employees just so you have a warm body doing some of the things you need done.

You know you’re not getting the best out of these employees. They don’t go the extra mile for your customers, even though you’ve had “that talk” repeatedly in staff meetings.  The truth is, they do just enough to get by. Plus, they often make mistakes that cost you lots of money in re-work. What’s worse….they may even be driving your best customers away. Ouch!!

Here is the harsh truth: If you continue to operate this way, eventually your business will die. Small businesses that hang on to too many marginal performers for too long fail.

That’s why it is an absolute MUST that you identify the right strategies for your business to find and attract A-Players. A-Players are resourceful. You can count on them. They find a way through and around problems, day in and day out. They go the extra mile for your customers. 1 A-Player can do the work of 9-12 C or D Players.

Yes, you can attract A-Players, even if you are in a rural area. I’m here to help you if this is a priority for you in 2015.

How would you like my PERSONAL mentoring to attract your next golden A-Player employee? I’m going to be taking 10 committed business owners on a journey to discover the hidden opportunities to attract their next A-Player.

Check out the details here and find out how you can be 1 of the lucky 10 I GIFT with a private “Strike the Gold” Business Breakthrough Session.

Dr. Sabrina Schleicher recognizes that employee problems can be one of the biggest stumbling blocks for any business owner. With her background in psychology, and years of coaching small business owners to extraordinary results, Dr. Schleicher knows what it takes to find, keep and get exceptional performance out of your biggest investment-your employees. Access her comprehensive video training 5 Secrets to Exceptional Employee Performance (her gift to you!) at www.tapthepotential.com

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Episode 11: How to Profit As A Life Coach With Rick Clemons

Show Summary 

Life Strategist and Entrepreneur Rick Clemons joins Episode 11 of the Profit First Podcast. Rick explains how staying true to yourself will lead to many different forms of success.

 

Our Guest

Rick’s a professionally certified coach, internationally syndicated blogger, author of Frankly My Dear I’m Gay, and an expert at waking people up to live their truth. He’s taken the lessons he learned as the son of a carpenter to become a closet buster and life renovator in his own right.

Snatched up as a Coming Out expert by the Ricki Lake Show, Huffington Post Live, and YourTango.com, Rick is the guy behind the Just Be You Revolution, a movement that’s challenging everyone from every walk of life to stop pretending and start living.

His quick wit, loving sarcasm, and jaw dropping questions take readers, audiences, and clients out of the numbness of living pretend lives, into the raw truth of being fully self-expressed in life, love, career, and business.

Breaking all the rules, Rick’s mastered the art of conception, bringing two beautiful daughters into the world, even though he’s gay; he’s an avid distance cyclist who’s built like a line backer, a singer who only performs when he teaches spin class, and a world traveler with a shoe fetish that would make Carrie Bradshaw swoon.

 

Show Quotes

There is a trigger that triggers every one of us in every aspect of our lives.

As you come out, so do the people around you; they come out as individuals who now have a gay member of the family, but then they also start to come out to themselves and who they really are.

If you make the decision to give up what you know, the beautiful thing is when you commit everything else starts to fall into place.

I need to go do what i’m passionate about. If you are leaving a job, don’t leave your clients hanging; package the message with a new solution.

When determining your prices, base it on how you would buy something personally.

Everyone has the right to be themselves and come out of whatever closets they have in their lives.

 

Show Links

Rick’s Website: www.rickclemons.com

Connect with Rick on Facebook

@RickClemons on Twitter

 

Show Sponsors

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!

The post Episode 11: How to Profit As A Life Coach With Rick Clemons appeared first on Mike Michalowicz.

Quick Fixes To Skyrocket Productivity

You can install apps for it, buy books about it, and make resolutions to improve it, but the key to improving your productivity is actually pretty simple when you reduce it to the proven techniques.  Sure, we’re all busy, and we have more items on our to-do lists than there are hours in the day.  The solution to being overworked and overloaded is out there, though.  It’s all about minimizing distractions and prioritizing effectively.

Here are my secret fixes when I find myself in a cycle of unproductive behavior and have trouble getting focused properly:

Walk away.  Literally.  Fight inertia by getting up and taking a walk.  Physical activity will help you refresh and reset your brain, and a change of scenery can do you a world of good.  If I’ve been working in my office for several hours, I find that even moving down the hall to a conference room can help me get refocused and back to work with renewed vigor.  Stretch your legs, get your blood moving, and you’ll discover that you’re better able to handle complex tasks.

Sort tasks on $, smileys, and infinity signs.  Everyone I know has to-do lists that never get completed.  The key to real productivity is attacking your list with a plan to accomplish the most important tasks first.  Mark tasks that directly bring in money with a $, tasks for existing clients with a smiley, and tasks that will become automatic – systems that will be able to run themselves after you complete them – with an infinity sign.  Some of your tasks will have all three — $, smiley, and infinity signs, and those are your top priority.  Making money, keeping your clients happy, and building systems that run on autopilot should be the tasks you tackle first, leaving the least profitable tasks for after you’ve crossed off all of the $, smileys, and infinity signs.

Use a pen and paper.  Going old school can be the ideal solution when you’re stuck in a rut, especially if you’re overworked.  Just like a change of scenery can help you focus better, using different tools will get your mind working differently.  Try brainstorming or composing the old fashioned way when you’re looking for new insight or if you’re stuck on a problem.  Jotting down a quick note can help you resist the temptation to piddle away your time by using unnecessarily complicated applications to track your progress or collect your thoughts.  Frequently, simple is better.

Put the pressure on.  If you agree to a deadline, then you’re motivated to keep your promise.  Pressure can be a good thing, and you’ll surprise yourself at how quickly you can knock out that project you’ve been putting off when you’ve put your reputation on the line.

Get someone else involved.  Find a coworker to collaborate with, and you’re making yourself accountable in a way you’re not for solo projects.  If you’re committed to follow up and report on the status of a project, then you will manage your time differently.  Not only will you feel the pressure of your coworker’s expectations, but you will also benefit from the fresh perspectives offered by your colleagues.

Delegate or subcontract.  When you find yourself getting bogged down with tasks that don’t suit your skillset or prevent you from dealing with your $ and smileys, farm those tasks out.  If you’re in a small office (or even at home) you may have to get creative when it comes to delegating.  My favorite solution is Elance – an online marketplace that connects you to contractors who are freelance experts in their fields.  You post your job, hire your expert, and get back to the work that makes you money.  Elance and other freelance marketplaces give you access to a full staff without the expense of paying full-time wages.  If you do have staff in your office, use their skillsets to magnify yours.  Letting your staff work to their strengths not only yields a better finished product, but you’re also certain to boost morale as well.

What all of these tips share is the means to get you focused on what’s most important and the best use of your time and energy.  We all get overwhelmed from time to time, and running through a checklist of options for streamlining your day can be just the solution you’re looking for.

 

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Stop Employee Turnover In 3 Simple Steps

You know the only thing that’s more expensive than hiring, paying, and training new employees? Losing an employee and having to do it all over again. Over and over I see that improving employee retention is one of the smartest and most fiscally sound moves any business can make. The trouble is that it can keep forever may quit on short notice and leave you with a void in your company. As usual, a little planning can go a long way to reducing employee turnover and keeping your staff stable and productive.

 

STEP 1: Hire into your culture.

Here’s a secret: turnover can start on a new employee’s very first day! Rather than hiring only for a particular skill set and hoping that the qualified applicant will find a way to fit into your company, you’re far better off hiring someone with aptitude and who also fits into your existing company culture. You can train folks, but you can’t alter their personalities. Is your business light-hearted and fun? Hiring someone who’d find a nerf gun battle inappropriate may not work out long-term. Is your office buttoned down and no-nonsense? Hiring someone whose idea of business casual means having to put on shoes may be a mistake. Hiring into your culture means that you must first understand the climate you’ve created, and then you need to work on matching your prospective hires with your environment. Remember – turnover is gradual. That “last straw” moment only tells part of the story, and you’re better off if you hire staff who’ll fit in seamlessly.

STEP 2: Treat your staff like gold.

Ideally – once you have a solid staff established – the only reason your employees should want to leave is if they’re not sufficiently challenged. Realize that top employees are worth landing and research the industry standard in terms of compensation … and then exceed that standard. One highly-paid, really great employee can be a much better value in the long run than three entry level, mediocre ones, so it’s worth your while to ensure that those top hires are satisfied. Top employees give you efficient work, satisfied customers, and peace of mind, and if you look at your bottom line, factoring in things like how much time and money you’ll lose if you have to replace one of your rock star staff members, you’ll often discover that investing heavily in your staff is the wisest choice you can make.

STEP 3: Open an honest dialogue.

Change is inevitable. Your employee’s lifestyle and needs may change. You may decide to shift the direction you’re taking your business. Change can be exciting, but it can also be stressful, and it can alter other aspects of your business. They key to retaining great employees through your business’ permutations is to ensure that information flows freely and honestly – in both directions. Keep your staff informed about where your company is headed and keep your eyes and your ears open for concerns and long-term patterns among your staff. For example, if you notice that you tend to lose staff at around the two year mark, you need to examine the causes. You need to check in to make sure folks aren’t overloaded and on track to burn out. Honest communication is the foundation of solid business relationships, and mutual trust yields honesty and loyalty – in both directions. Make sure your staff knows that you value their contributions and you think enough of them to keep them in the loop in terms of what’s ahead for the company.

 

Given the relatively high unemployment numbers, you can certainly find staff who are willing to do a job on the cheap. But when you factor in the costs associated with hiring and training new staff, you see immediately that it’s a much better long-term decision to find, hire, and retain the best people, even if that costs a little more in terms of payroll. You’re hiring more productive staff, and you’ll realize long-term benefits in keeping them satisfied. Is there a place for short-term labor? Sure, but make sure your key positions are filled with well-compensated staff who know their value to you and your company, and who are invested in an honest relationship that’s mutually beneficial.

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6 Tips For Writing A Highly Persuasive Proposal

Whether you’re selling something that costs $1000 or $100,000, putting together a compelling proposal is time consuming and can be intimidating.  Writing that proposal, though, and taking the time to do it right, may be the most productive use of your time.  Don’t make the mistake of carelessly throwing a whole lot of facts and figures at a client and hoping you will magically walk away with a sale.  Consistently using a formula for building a compelling proposal will improve your sales and make you much more confident.

1. Use the power of comparison.  Try this experiment – find one of those ads that uses before and after pics to demonstrate the effectiveness of a product and cover up the before pic.  You’ll discover that the after picture isn’t nearly so compelling without the comparison.  That contrast – the shock value – is incredibly compelling, and you can use that to your advantage in every proposal you write.  Say that your client needs to spend $9000 to update his computer system, and you know that he’s going to think $9K’s a lot of money.  Start your proposal with a $100,000 option – one that includes everything and a kitchen sink, so that when he gets to the $9K option, it looks like a great deal.  He’ll feel much better about parting with the $9000.

2. Offer 3 choices.  Customers want to feel like they’re in control and that they have choices.  If you give them just one or two options, they feel backed into a corner, and they may decide to wait, rather than selecting from the option or two that you provide.  If you offer too many choices, though, then your client may suffer from analysis paralysis – the inability to meaningfully differentiate among a confusing array of options.  Three is the perfect number of choices.  Your client will be able to feel good about their decision, and they’re more likely to be satisfied when it’s all said and done.

3. Start high, and go lower.  Always start with the highest priced option and work your way down.  Odds are that no matter what price you start with, your client may experience some sticker shock, and what you don’t want is to build unpleasant anxiety by escalating prices.  When you start with your highest priced option and decrease prices, you’re creating a sense of relief.  By the time that your client gets to your second and third options, they sound like a great value compared to the higher priced first option.

4. Use “investment” rather than “cost,” “fee,” or “charge.”  Choosing your words carefully means evaluating the connotation of words and using them to your advantage.  “Investments” pay off.  “Fees” are money you never see again.  The differences are subtle, but very important in terms of client satisfaction.

5. Never use price ranges.  When you tell a client that it’ll cost them somewhere around $100-$150 to have their office cleaned once a week, you’re setting both you and the client up to be disappointed.  You feel like you’ve just landed yourself a $150 job, but the client hears that it’s a $100 job, and if you come in $1 over that $100 price, they’ll be disappointed.  Rather than using a range that makes both parties feel less than satisfied, throw out a specific price and be prepared to negotiate it.  If you quote the client at $150 and they talk you down to $125, then they feel like they’ve gotten a good deal, and you’re better off than you would have been if you’d charged $100.

6. Personalize the benefits.  Use the word “you” when you talk about the benefits your client will receive, and distance them from the “investment” portion of the proposal by discussing the cost to their company.  For example, “You’ll have a sparkling clean workplace, and the investment for ABC Company is only $125 per month.”  Or “Clients typically invest about $125, and you will be amazed at the difference you see.”  Make the benefits personal and the investment impersonal.

The more you practice this formula, the more adept you’ll become at creating a proposal that both wins clients and makes those clients feel good about having given you their business.

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The HartfordVoice: Post Recession: What Small Business Owners Learned

A 2014 The Hartford Study finds that 77 percent of small business owners are feeling successful. Entrepreneur Mike Michalowicz explains what the secrets to that success are and the key lessons learned from the last recession.

 

Watch The 2 Minute Video Here

 

 

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