Colin Myles's Blog, page 28

C.R.E.A.M.

Recently I just finished reading " How To Speak Money " a book by John Lanchester, worth adding to your library. He goes through the A to Z and under C was C.R.E.A.M.  It is  a song title by the Wu-Tang Clan.

It stands for Cash Rules Everything Around Me and with everything thing happening in Greece,the Chinese stock market and stagnant economies around the world, my brain started running and thinking about the small business owner and entrepreneurs and their relationship with cash.

It may seem odd in the digital money globe we live in to be talking about cash. But cash still rules . . . he who has it rules. Without a healthy cash balance you are robbing Peter to pay Paul, with the good possibility your sales are only servicing your debt i.e. loans.

While this in and of itself is not a bad thing, it limits you. Not having a healthy cash balance will inhibit your ability to do what has to be done to improve your business. It means looking for another loan or extending current facilities to enact the changes you desire.

This will increase your repayments, meaning more of your sales going towards servicing debt, at a healthy interest rate. This has the potential to suck away your passion, when you realise you are going to work to service debt. Creating the feeling of Groundhog day.

Let's go back and look at the fundamentals, Sales, Costs and Profits.

1. If your sales are good, but costs too high your profits will be minimal or nil.

2. If your sales are low and costs too high, your profit turns to loss.

3. If option two continues there is a good chance of your loans being called in. Not good.

Everything returns to your sales and cash balance. Are you selling at the right price and correct profit margin, to cover your costs and make a profit ? Have you got a product or service that may not currently be a big seller, but has great margins ? You do, great, time to look at increasing their sales.

Another area to look at and this is a tough one ... are you selling to the right customers ? You may believe you have the right product and found your ideal customer, but sales are still a struggle. This is a good time to think about who you are selling to and is there anyone else in the marketplace you may have overlooked. Sometimes it may be someone in the middle of the purchasing chain who are you real customers, not the original one at the top or bottom of the chain, you identified.

Imagine a big weighing scales, Your sales on one side and costs on the other. To tip the scales in your favour, sales must be greater than costs. Time to get creative on who your ideal customers are. Without cash, it can be hard to move forward, not impossible,just challenging.

Make your life easier and remember Cash Rules Everything Around Me

Colin Myles
Author & Listener

P.S.
" Your customers are tuned into W.I.I.F.M , what's in it for me, are you broadcasting ? "

Author ; How to Avoid Business Failure

Why The Magic Vanishes ?

" I am not a businessman, I am a business, man. "  Jay Z

When in your business cycle does the magic stop happening ?  This question has intrigued me this past couple of weeks. What with Jay Z'x music platform Tidal and the fallout from Trump's decision to run for president.

It appears the magic has stopped and the pushback has occurred. The press are reporting dismal numbers for Tidal. Trump has run into difficulties with Miss USA and Macy's to say nothing of the other stuff.

You start our as an entrepreneur. You do well, other opportunities come your way, you grab them and continue to be successful. People offer you joint ventures and it appears the world is your oyster, beautiful pearls of money and recognition appear, as if by magic.

Then somewhere along the line, you go for one more thing, everyone tells you " it's a sure hit ". But this is when the pushback happens. The numbers are slow, the press start digging and nitpicking. Your words instead of calming, cause fear and panic.

What is this elusive point, where your star starts to fade. Studying economics at college, one of the first axioms you learn is about price elasticity demand.
" Price elasticity of demand shows the relationship between price and quantity demanded and provides a precise calculation of the affect of a change in price on quantity demanded ".

So what is the calculation that shows, how one goes from being a businessman, to a business, to the band snapping and the resulting fallout ?

I don't know, but it is one intriguing question. We have seen it time and time again throughout history. Is it hubris, overconfidence ? Are people comfortable at the level you have achieved and jealousy sets in and that one extra business is one too far, for your consumers and supporters ?

It is a conundrum and if anyone has a calculation like the price elasticity demand one, please share it in the comments below.

Have a fantastic week,
Colin Myles
Author & Listener

P.S.
Rushing into action, you fail,
Trying to grasp things, you lose them,
Forcing a project to completion
You ruin what was almost ripe"  The Book of Tao

How to Avoid Business Failure [ 7 steps ] 

Don't Complicate ... Just Simplify

Once upon a time in a land not far from were you are, there lived a successful entrepreneur. His fame was known and acknowledged throughout the land.

He was successful in starting,buying and selling business after business. His motto was " the simpler the better ". As his enterprise grew, so did his need to hire people to run, maintain and grow his organization.

This entrepreneur was a curious person, he loved to travel to distant lands to see new ideas, products and organizations. On one such trip he came across  a wonderful widget business. It was simple and profitable, his favourite word after simple.

Clapping his hands in delight at the simplicity of it all, he bought the business. His many managers said he should bring it under their big umbrella, to learn their ways. He wasn't sure, he thought it should be left alone. After many conversations they prevailed and this wonderful, simple and profitable stand alone was brought under his managers watchful eyes.

Secretly they feared its simplicity. It had to be taught their ways. It had to learn to send memo's every day, to fill out the correct forms,  to have meetings about the forms and memo's. This was the managers way to show the entrepreneur that he was right in hiring them and they had the correct forms to show they were right.

Now this simple and profitable business had people who knew what they were doing and were kind and simple people. When the outsiders came in with all their forms and meetings, they became sad. Sad, because they couldn't work on the business in their way any more. They were too busy filling out forms and going to meetings.

As time went on the kind people got sadder. The sadder they became, the more they yearned for their simple business. The more they yearned the sadder they became. Until one by one they left the once simple business. The entrepreneur kept asking his managers how the simple and profitable business was doing and they said " wonderful, they are learning our ways "

After twelve months had gone by, the entrepreneur was sitting down with his favourite accountant. He liked him because he told him the truth. He was looking forward to seeing the profits from this simple business. He couldn't understand why his accountant kept looking away and tried to evade his questions about the simple business. At last he said " tell me the truth ".

The simple business was no longer profitable. It was losing money. It had lost all the kind and good people who had made it wonderful.  The entrepreneur cried. He went home and thought about what happened. He decided he was going to find all the kind and good people and give them back their business and freedom from his managers.

It took him time and energy but he did what he set out to do. After another twelve months he asked his accountant how the simple and profitable business was doing. He was amazed and happy to hear, it was profitable again.

He scolded his managers for making the simple business complicated. From that day forward all managers had to swear an oath to one rule, or be thrown on the street " Don't complicate ... Just simplify "

The End.

Colin Myles
Author & Listener

P.S.
Don't confuse motion with progress ... a rocking horse moves but doesn't progress " Various

Author ; 67 Uplifting Quotes
Author ; 5 Keys to Doing Business with The Right People
Author ; How to Avoid Business Failure

Project 3

There are only three reasons to take on a project
1. Increase revenue [sales ]
2. Reduce costs
3. Solve operational blocks

Anything else and well there is a good chance, vanity is at hand. You are in business to be profitable and successful. If not, it folds. These three stumbling blocks are what you need to be vigilant against.
1. Lack of sales
2. Cost overrun
3. System failures

Once you know which area is causing you sleepless nights, then you can initiate a project to solve the challenge. Kinda sounds simple, yes, but the number one reason a business folds is lack of sales. Not enough money coming in to pay the bills.

Sometimes the sales are good, but the profit margin sucks and your back is against the wall. Well you need to look at your costs. You need to dig deep into the middle of your accounts and see where the excess is and trim the fat. Sometimes it can be as simple as a price being locked in for too long a time. Whatever it is dig deep.

Then there is the old nugget, " a sale is not a sale until the money is in the bank ". Yes, your credit control may not be as solid as you thought. If your aged debtors list is running above 30 days, you might want to address this. Maybe there is too long a gap between an enquiry and your sales rep meeting the customer, leading to a lost sale. Or your time from order to delivery could be outside of what is the norm in the industry you are in. This could go against you.

For every challenge, there is a solution. Before things get out of hand, have a look at the three areas above and you might see the way to take action and solve your challenge.

To your success,
Colin Myles
Author & Listener

" The aim of the wise is to avoid pain "   Aristotle

Author ; How to Avoid Business Failure
Author ; 67 Uplifting Quotes
Author ; 5 Keys to Doing Business with The Right People

Why it pays not to stiff your customers

A couple of weeks ago I needed new headphones. It was a Saturday and I did not fancy driving into the city. But there was a couple of places in the suburbs where they could be purchased.

Outlets one and two didn't have any in stock. Outlet three was in a retail park, with not so great parking facilities. As the thought of heading into the city was a no-no, I decided to go there.

They had headphones in stock, so I picked out a set. The price was okay so off to the counter to pay. The staff member scanned the item and then said " Actually that item has been reduced in price and the new price is X "

Slightly taken aback, I nodded yes and continued to pay. Later on in the day while using the new headphones the  thought struck me " I am going to use that shop again ". Why ? Because of the honesty of the staff member. They could have charged me the sticker price and pocketed a bigger commission for themselves. I would like to believe they were thinking long term and that they wanted me as a loyal customer, not a one time sale.

Most often it is the small gestures that create the lasting impression. The easy to do rather than the complicated. Imagine how I would have felt if later on I had checked out their website and found out that I had been overcharged for the headphones. Do you believe I still would have entertained the " I am going to shop there again " or " Bunch of thieving sods "

You as a small business owner or ambassador for your workplace have a choice. Do the right thing for your customer or suffer being known as " those thieving sods "

Customer loyalty is in your hands.

Colin Myles
Author & Listener

P.S.
" Some people create their own storms, then get upset when it rains " Unknown

Author ; 67 Uplifting Quotes
Author ; How to Avoid Business Failure

P.P.S
Author ; 5 Keys to Doing Business with The Right People ..... Author Interview

T.L.C.

The small business version of tender loving care is talk and listen to your customers.

How man of you take the time to talk to your customers. When you talk, do you listen to their responses or are you just waiting to hear what your ego wants to say ?

Anyone can talk at, but it requires something special to listen and understand what your customer is saying. When they feel you want to learn and improve from their responses, they will become more open and honest with you.

Did you know it is easier to sell to existing customers than expanding energy on one time deals. How would your customers know you have valuable add ons, which could make their life easier ? How many of them know you have a new product or service available ? How many of them know they could save money by changing to one of your better billing plans ? How many of them know that by working together, both of you could improve profit and productivity ?

They don't and won't unless you talk and listen to them. How many of them have informed you of an error in your system, that could be costing you money ? They won't until you follow the words of Zig Ziglar
" People don't care how much you know until they know how much you care "

Sounds simple, it is. Seems easy, you would think so. How many actually do it, not many. How much money is been left on the table ? A boatload.

It is springtime, show your customers some tender loving care. Talk and listen to your customer.

What you find out and the results you achieve, may surprise you !

Colin Myles
Author & Listener

Author ; How to Avoid Business Failure
Author : 67 Uplifting Quotes

P.S.
Silent and Listen are spelt with the same letters

P.P.S.
Author ; 5 Keys to Doing Business with The Right People ....... Buy Now

P.P.P.S.
To produce and abundant harvest you must reach your customers heart. To reach their heart you must use your ear to hear what they are saying"

Kiss Up Kick Down

" He must have being a kiss up kick down typa guy "

So spoke one of the detectives in an episode of Law & Order, I watched last week. It was his description of a suspect after they had dug into his background.

Which got me thinking about workplace culture. How many times have you come across this type of person  and the damage they cost to morale ? You have met this person at some stage in your career. They kiss up to superiors and treat the people they supervise like dirt.

They take credit, say yes to everything and push people to do the work, their kissing up agreed to do. But on a deeper level, what type of morale do they create in the workplace ? Is it one of openness or fear ? One where people are happy to come to work or working in dread until they can run out the door, open their arms and silently thank the universe for the end of the workday ?

As a small business owner, is this the type of culture you promote or stand firm against ? Do you ever wonder why your business at best is at a standstill or in decline. It might be time to take off the rose tinted glasses and see how many " kiss up kick down " people you employ. Because one thing is for sure, if this is happening and condoned in your workplace, stagnation is your best hope.

Gather you team together and make a promise that this is not they type of culture or energy you desire for your business. Give them the belief that you value each and everyone of them and that the " kiss up kick down " style is a no-no in your operation.

You maybe surprised at the results that follow.

Colin Myles
Author and Listener

Author ; 5 Keys to Doing Business with the Right People
Author ; 67 Uplifting Quotes

" One who is skilled in defeat shall never see destruction " Tai Gong Wong

Author ; How to Avoid Business Failure ............. Buy Now

Free Book 1 2 3

As a thank you for reading my blog, I would like to give you the opportunity to download all of my three books for free over the next coming days.

Today 19th April 2015, you can download " 5 Keys to doing Business with The Right People "
Click Here

On Monday and Tuesday the 20th and 21st  of April 2015
You can claim your free copy of  " How to Avoid Business Failure "
Click Here

On Wednesday and Thursday the 22nd and 23rd of April 2015
You can download your free copy of  " 67 Uplifting Quotes "
Click Here


Thank you for reading my blog and I hope you enjoy the books.
Colin Myles
Author & Listener
http://www.colinmyles.net

P.S.
Abracadabra in ancient Aramaic means " I will create as I speak "

P.P.S.
The majority of people who download and read these books, write a review.

Just Ask

" he had his head down staring at a screen, going round and round, forwards, backwards, stop, start. Moving but not gaining. "

A couple of weeks ago while heading to an appointment, I noticed an older taxi in front of me. It caught my attention because of its big engine size, a rarity these days. It dropped the occupant out in the same mini business estate I was going to. The customer got out, he had his finest suit on and smartphone in hand.

I guessed he was heading for an interview. After getting a coffee and sitting back in my car, I noticed this guy wandering all over the estate. His head was down following the GPS on his phone. He was going everywhere except the place he wanted to be.

He passed many people on his wanderings, even my car at least three times. " why doesn't he just ask someone " I thought.

How many times as an entrepreneur/business owner have you felt lost and continued to be lost, because your pride wouldn't let you ask someone for directions. It is okay to ask.

It is not a sign of weakness, but a realisation that you don't know everything. You can't know everything, but you probably know someone who could answer your question.. You learn by asking, being quite won't get you any nearer to a solution.

If you have decided on a course of action, yet keep getting stuck before the end , pick up the phone. Send an e-mail, have a cup of coffee with an associate. Just ask.

Even if the person you ask doesn't know, they most likely will be able to point you in the right direction. It is not a sign of weakness, but strength. Being strong is holding your hands up and saying " I need to ask someone, because otherwise I going to be stuck here, chasing my tail going nowhere ".

Better to be going somewhere rather than nowhere.

The guy going for the interview, was still wandering around, phone in hand, eyes glued to the screen, going nowhere. I hope he got to the interview on time.

Imagine how easier his life would have been, if he had stopped and ASKED !

Colin Myles
Author & Listener

Author ; 67 Uplifting Quotes
Author ; How to Avoid Business Failure

P.S
 Let go or be dragged" Zen Proverb

P.P.S.
Why your customers will love you ....  click here

How to Lose Customers

Recently my car insurance was coming up for renewal. The business media was hinting that the company I was with were heading for a big loss.

So I was expecting a hike in the new quote. On he day the quote dropped through my letterbox, the CEO of said company in an interview stated, " most people would see a modest increase " , a couple of percentage points. I opened the letter, lo and behold a whopping 47% increase.

Some bright spark must have thought their customers would be gullible enough to pay for their loss. No sir not this one. Oh no I thought " here we go ringing around to get a new quote". I happened to mention this to a friend of mine and he recommended this one brokerage.

The next day I phoned up, spoke to a very nice lady and got a new quote. Even paying less than I was last year. Now here is the kicker. My new agency is underwritten by a company I left three years ago, because they tried to play the same trick, due to a massive loss they suffered.

To paraphrase a Jim Rohn quote " it takes about $10.000 to gain one new customer". These two companies are constantly advertising on TV,radio,print and the web. I wonder how many millions they spend trying to gain new customers. Thing is I was happy with the company I was with three years ago, I was even much happier with the one I just left and referred at least five people their way.

Another business saying " it takes six seconds to lose one customer and six months to gain a new one ".

Maybe someone out there can tell me which business school is teaching these folks to . .. . spend millions on advertising to gain new customers. When you get them,treat them well and remember when you suffer big losses increase your prices by 47% and all will be well and dandy.

We all make mistakes, but to expect your customers to pay for your management's error in judgement, just doesn't cut it. Those two companies could have saved themselves a fortune if they had just treated their customers with a little bit of respect and remembered the six second/six month rule.

If you are in business and have gone to the same school as these guys,don't expect your customers to stay loyal while you try to get them to pay for your mistakes.

Colin Myles
Author & Listener

Author ; How to Avoid Business Failure
Author ; 67 Uplifting Quotes

" Honesty is the soul of business "  Dutch Proverb

Author ; 5 Keys to Doing Business with The Right People