When I made the decision to stop playing baseball after my sophomore year in college, my biggest worry was that I would miss the competition. You know, me against my opponent to see who comes out on top.
What I quickly realized was that I didn't miss the competition at all. In fact, my joy for the game really wasn't about the competition. It was about the challenge of improving on my own performance. I missed going out and trying to win games for my team (more games than the year before) and I missed trying to improve on my statistics, each and every year. Hit .360 one year, the challenge would be to hit .380 the next year.
As business owners, it's the same. We're all competing against our own numbers (revenue, expense, profit, productivity, etc.) every year. That should be our focus and that should be what gets us charged up each day to work.
Lately, I've been hearing a lot of owners focus (some even obsess in my view) on their competitors. These owners will say: "My competitors are doing.....I heard they are going to start...."
There is no doubt you need to know your competition and what is working for them, but keep in mind that, as business owners, our biggest competitor is our own numbers. If we move those numbers in a positive direction, it doesn't matter what our competition is doing or not doing.
-Ron Ameln, SBM
Monday, February 28, 2011
Tuesday, February 22, 2011
Human Capital: Solving A Recurring Business Problem
When it comes to entrepreneurial firms growing in the next few years, Andrew Sherman, author and business growth guru, sees human capital as one of the biggest challenges entrepreneurs face. “This is a real problem,” he said. “Keeping GOOD people, motivating good people and figuring out how to pay them properly is very important.”
Sherman said the real problem is a lack of “old-fashioned loyalty.” “It is not always the employees fault,” he said. “It is a two-way street. Employers need to show a commitment to people. You get what you give. If you treat employees like a true peer, they will probably stick around for a long time.
“Smaller companies need to understand what it is going to take to hold onto good people as they compete with larger companies with bigger benefits in era of reduced loyalty. Our children are growing up in an era where they are watching their parents switch jobs every three years. Small-business owners need to develop a compensation system, a motivation system and a culture that keeps employees. It’s not just about money. Everyone wants money, but people want other things as well. Small companies are in a great position to deliver big on those other things.”
--Ron Ameln, SBM
Sherman said the real problem is a lack of “old-fashioned loyalty.” “It is not always the employees fault,” he said. “It is a two-way street. Employers need to show a commitment to people. You get what you give. If you treat employees like a true peer, they will probably stick around for a long time.
“Smaller companies need to understand what it is going to take to hold onto good people as they compete with larger companies with bigger benefits in era of reduced loyalty. Our children are growing up in an era where they are watching their parents switch jobs every three years. Small-business owners need to develop a compensation system, a motivation system and a culture that keeps employees. It’s not just about money. Everyone wants money, but people want other things as well. Small companies are in a great position to deliver big on those other things.”
--Ron Ameln, SBM
Monday, February 21, 2011
Entrepreneurs: Embrace Your Role As Salesperson
Listen, there are just certain tasks that come with certain jobs. Take, major league baseball player. Yes, you play baseball and get lots of money, cute girls and free dinners, etc., but you also have to answer questions from the geeky, very non-athletic sports reporters everyday (I know this because I used to be one). That's just part of the deal.
When it comes to being an entrepreneur, especially a solo-entrepreneur, sales is part of the deal. You don't have a boss, don't have to clock in or ask for PTO days, but you do need to sell.
As a consultant recently told me, "How come none of these solopreneurs want to sell?" Selling is part of the deal if you want to survive. Yes, old fashioned, selling. That means cold calls, presentations, networking, alliances, referrals, the whole nine yards.
Own it. Live it. Do it now.
Your head trash can tell you all types of things: "No one cold calls anymore," "cold calling doesn't work," "People don't like to be sold anymore," "Social media is all I need anymore," --whatever.
Tell yourself whatever you want. But the fact is when you became a solo business owner, your No. 1 job became salesperson.
The sooner you embrace that, the better off you'll be.
--Ron Ameln, SBM
When it comes to being an entrepreneur, especially a solo-entrepreneur, sales is part of the deal. You don't have a boss, don't have to clock in or ask for PTO days, but you do need to sell.
As a consultant recently told me, "How come none of these solopreneurs want to sell?" Selling is part of the deal if you want to survive. Yes, old fashioned, selling. That means cold calls, presentations, networking, alliances, referrals, the whole nine yards.
Own it. Live it. Do it now.
Your head trash can tell you all types of things: "No one cold calls anymore," "cold calling doesn't work," "People don't like to be sold anymore," "Social media is all I need anymore," --whatever.
Tell yourself whatever you want. But the fact is when you became a solo business owner, your No. 1 job became salesperson.
The sooner you embrace that, the better off you'll be.
--Ron Ameln, SBM
Thursday, January 13, 2011
5 Signs Your Business Partnership May Be In Trouble
Are business partnerships for dummies? Well, at least my attorney thinks so. In many ways, business partnerships are more challenging than marriages. These partnerships bring all types of moving parts, like employees, debt, hopes and dreams, etc. Just like a marriage, business partnerships are hard to make work.
Because of financial reasons, some entrepreneurs have no choice if they want to start and build a thriving company. So, if you find yourself in one of these partnerships, look for the following 5 signs of trouble and get help early.
1. Sign No. 1: One partner says he/she is unhappy. When this starts happening, the clock is ticking. Do nothing and the partnership will end in a bad way. Jump on the problems early and start getting them resolved.
2. Sign No. 2: Little effort by one of the partners. If one of the partners starts slacking on his/her duties, that's a sign of disinterest.
3. Sign No. 3: One of the partners feels superior. If one of the partners feels he/she is more valuable than the other, that's not a good sign. The feeling of an unfair situation can often lead to partnership issues.
4. Sign No. 4: Little compromise. Just like a marriage, compromise must be present for a healthy relationship.
5. Sign No. 5: Lies. Trust is the key in any valuable relationship. If your partner isn't trustworthy, get out quickly.
--Ron Ameln, SBM
Because of financial reasons, some entrepreneurs have no choice if they want to start and build a thriving company. So, if you find yourself in one of these partnerships, look for the following 5 signs of trouble and get help early.
1. Sign No. 1: One partner says he/she is unhappy. When this starts happening, the clock is ticking. Do nothing and the partnership will end in a bad way. Jump on the problems early and start getting them resolved.
2. Sign No. 2: Little effort by one of the partners. If one of the partners starts slacking on his/her duties, that's a sign of disinterest.
3. Sign No. 3: One of the partners feels superior. If one of the partners feels he/she is more valuable than the other, that's not a good sign. The feeling of an unfair situation can often lead to partnership issues.
4. Sign No. 4: Little compromise. Just like a marriage, compromise must be present for a healthy relationship.
5. Sign No. 5: Lies. Trust is the key in any valuable relationship. If your partner isn't trustworthy, get out quickly.
--Ron Ameln, SBM
Monday, December 20, 2010
5 Questions For A More Productive 2011
Did your company perform as expected in 2010? Did you reach your goals?
If you want to build a thriving company in 2011, answer the following questions. Good answers to these questions will lead the way to a productive year.
1. Are you gaining feedback from customers?Entrepreneurs listen to customers and gain feedback. This is how they discover great ideas. Successful entrepreneurs are out in the field finding out what customers really want and need.
2. Are you looking for more opportunities, both inside and outside the organization?
Successful companies are not afraid to dump old products and move on to new ones.
3. Do you have a mentor? Mentors can jump-start an entrepreneur’s knowledge level, link him or her up with new contacts, offer feedback on ideas, plans and strategies and even provide help in raising capital.
4. Have you built an A-team?Savvy entrepreneurs bring people into the organization who are smarter and more skilled than they are. They then create incentives to keep them. The best entrepreneurs are clearly team builders.
5. Are you providing mind-boggling service? When you deliver legendary customer service, customers will rave about your company and become tremendously loyal.
-Ron Ameln, SBM
If you want to build a thriving company in 2011, answer the following questions. Good answers to these questions will lead the way to a productive year.
1. Are you gaining feedback from customers?Entrepreneurs listen to customers and gain feedback. This is how they discover great ideas. Successful entrepreneurs are out in the field finding out what customers really want and need.
2. Are you looking for more opportunities, both inside and outside the organization?
Successful companies are not afraid to dump old products and move on to new ones.
3. Do you have a mentor? Mentors can jump-start an entrepreneur’s knowledge level, link him or her up with new contacts, offer feedback on ideas, plans and strategies and even provide help in raising capital.
4. Have you built an A-team?Savvy entrepreneurs bring people into the organization who are smarter and more skilled than they are. They then create incentives to keep them. The best entrepreneurs are clearly team builders.
5. Are you providing mind-boggling service? When you deliver legendary customer service, customers will rave about your company and become tremendously loyal.
-Ron Ameln, SBM
Sunday, December 19, 2010
Do Groupon-Type Offers De-Value Your Services?
No one can argue with the success of Groupon, the entrepreneurial coupon-based tech firm that started from a Northwestern University dorm room a few years ago. Its success has spawned numerous imitators. From a business startup standpoint, the business model earns an A+.
With all that said, here's a question: For those businesses participating in these types of deals, what are these companies really saying about their products and services? I mean, if you are willing to provide your products and services for 1/2 (sometimes even 2/3) of its price, what are you saying about the value of your products and services? Aren't you turning your product/service into a commodity that can be devalued (sometimes by 1/2 price). And, if your profit margins can afford a 50% decrease, maybe your overcharging customers in the first place.
Six months after the coupons stop running, are your customers going to be excited about paying twice the price for the same meal they paid 50% less for a few months ago? Or, will they just go to the next business down the street that offers another 50% off deal.
The big question is: How will customers see your product/service in the long run? Will it be seen as just another product/service, or will it be seen as something that is unique and has value to it?
Business owners should all be striving to create unique value in their offerings. Once you start slashing prices, your product/service begins to lose that value.
--Ron Ameln, SBM
With all that said, here's a question: For those businesses participating in these types of deals, what are these companies really saying about their products and services? I mean, if you are willing to provide your products and services for 1/2 (sometimes even 2/3) of its price, what are you saying about the value of your products and services? Aren't you turning your product/service into a commodity that can be devalued (sometimes by 1/2 price). And, if your profit margins can afford a 50% decrease, maybe your overcharging customers in the first place.
Six months after the coupons stop running, are your customers going to be excited about paying twice the price for the same meal they paid 50% less for a few months ago? Or, will they just go to the next business down the street that offers another 50% off deal.
The big question is: How will customers see your product/service in the long run? Will it be seen as just another product/service, or will it be seen as something that is unique and has value to it?
Business owners should all be striving to create unique value in their offerings. Once you start slashing prices, your product/service begins to lose that value.
--Ron Ameln, SBM
Thursday, December 16, 2010
4 No BS Ways To Sell More In 2011
2011 is just weeks away. The economy is starting to pick up. Now is the time to start building new sales. Here are four things you can do immediately to gain more business in 2011:
1. Start Measuring. You can't accomplish anything in life (i.e., weight loss, productivity) without charting and measuring your actions. Start by determining your goals (you can't get there if you don't know where you are going). Then, start measuring all of your sales activities and actions. After the first quarter, take a day and go over your activities and actions and see what worked/didn't work.
2. Find Your Niche. The 80/20 rule generally applies to most sales. 80% of your sales comes from 20% of your clients. Narrow your prospects. Take a look at your past sales and find out what industries, types of clients you've had the most success with and just focus on them. You'll build better relationships over time, which will lead to more sales.
3. Get Some Help. Everyone needs a coach. Professional athletes have coaches, professional singers have coaches. You need one as well. The coach doesn't need to be an expensive consultant. It might be a friend who can listen each month and offer encouragement. Sales can be a tough mental grind. All sales reps need someone in their corner to help when times get tough--and they will. Think of this person as your sponsor, similar to the AA model.
4. Don't Listen To The "So-Called" Experts. Find out what has worked for you in the past and focus on that before you try out the latest strategies from the "so-called" experts. For example, it's easy to find a guru to tell you cold calling doesn't work anymore. It still does work for some, and it may work for you. It all depends on you and your industry. Most of these gurus have never sold a thing before in their lives. Don't buy into their BS.
--Ron Ameln, SBM
1. Start Measuring. You can't accomplish anything in life (i.e., weight loss, productivity) without charting and measuring your actions. Start by determining your goals (you can't get there if you don't know where you are going). Then, start measuring all of your sales activities and actions. After the first quarter, take a day and go over your activities and actions and see what worked/didn't work.
2. Find Your Niche. The 80/20 rule generally applies to most sales. 80% of your sales comes from 20% of your clients. Narrow your prospects. Take a look at your past sales and find out what industries, types of clients you've had the most success with and just focus on them. You'll build better relationships over time, which will lead to more sales.
3. Get Some Help. Everyone needs a coach. Professional athletes have coaches, professional singers have coaches. You need one as well. The coach doesn't need to be an expensive consultant. It might be a friend who can listen each month and offer encouragement. Sales can be a tough mental grind. All sales reps need someone in their corner to help when times get tough--and they will. Think of this person as your sponsor, similar to the AA model.
4. Don't Listen To The "So-Called" Experts. Find out what has worked for you in the past and focus on that before you try out the latest strategies from the "so-called" experts. For example, it's easy to find a guru to tell you cold calling doesn't work anymore. It still does work for some, and it may work for you. It all depends on you and your industry. Most of these gurus have never sold a thing before in their lives. Don't buy into their BS.
--Ron Ameln, SBM
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