Archives For Economy

How would you answer businesses toughest question?

February 28, 2013 — 3 Comments

“How can I increase my income without increasing my workload or overhead?”

At first glance, most business people would say there’s no way they could do that, however, the reason has more to do with their perception of the situation than actual reality.

The typical response to this question is that, in order to increase business, one has to either hire more people, work longer hours, or in some other way, add to the costs of operating the business.

This is simply not true.

Over the course of two decades, I have helped hundreds of businesses increase their revenue without adding to their work load or increasing the cost of running the business.

This is why I’ve repeatedly said,

“If you’re in business or sales and are not working with a coach you’re leaving money on the table.”

Almost any business can add revenue by becoming more creative in their thinking, learning to use a technique known as “powerful questions” and changing their focus.

business coach jim donovan

Client brainstorming meeting

One of the best techniques I’ve used with my business coaching clients is inquiry. Simply put, this is a process of using laser focused questions to elicit responses that are radically different from your usual line of thinking.

For example, I was recently sitting in a medical office waiting for a friend to complete his follow up visit from a recent surgery. If this doctor wanted to increase her income, the obvious response would be to attract more patients, however, this would also mean performing more surgery. Not the result we’re looking for.

By changing the question to something like, “What can do to I increase my income without having to work more hours?” we are giving our creative, right brain hemisphere a new challenge, one which it will happily accept. With her creative brain fully engaged in providing a solution, as a result of the more focused question, she will begin to see other possibilities.

In this case, since there was a lot of unused office space, adding complementary services performed by someone else, would accomplish the same thing.

An author wanting to add more revenue without having to work longer hours would use a similar question which may result in discovering new foreign markets where they could license the translation rights, explore alternative distribution channels, offer the material in different formats, and so on, increasing their revenue potential without adding to their workload.

A former client of mine had created a series of training videos. During one of our coaching sessions we were brainstorming possible sales and distribution channels. The result from this one session was an idea that was to generate an additional six figures in income annually from the core product.

To help you get started, here are two of my favorite business questions:

- What new markets are there for my existing products and services?

For example, Arm and Hammer Baking Soda went from something only bakers used, to a product that most people are using as a deodorant in their refrigerator.

- What new products can I market to my existing customers?

Once again we can look to Arm and Hammer who took their sleepy little baking soda and created an entire line of products from it, including the Cat Litter we use.

Using the questions above, what new income producing ideas can you come up with?

Get your team together and brainstorm these questions. Breakthrough ideas come from simple inquiry.

And, as I suggested above, if you are not working with a coach for your business you are leaving money on the table.

While you may know that I offer business coaching services, you may not know that I only work with a small number of people at any given time so, if you are interested in having me as your coach, don’t hesitate. Contact our office now.

 

In Business, Business Growth, Economy, Money , , , , , , ,
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Does big business have small companies by the short hairs?

January 18, 2013 — 2 Comments

If you look at current trends, it would seem as though giant companies, especially retailers, do in fact have their smaller vendors by the short hairs.

Bionic WrenchA case in point is the recent ABC News story about Dan Brown & his “Bionic Wrench,” made in Cabot, Pennsylvania and their horrendous experience with Sears. Brown’s company manufactures, and holds the patent, on the Bionic Wrench, a product made entirely in Pennsylvania.

Last year Sears was the Company’s biggest customer, ordering some 200,000 items for the Holiday shopping season. As a matter of fact, Sears was so enamored with the product that they asked Brown to refrain from selling to their competition and offered the sizable order to compensate.

This, in my opinion, was their first mistake.

Companies like Sears have been doing this to small businesses for decades. I was warned, back in 1975, about doing business with them, so, while it was no big surprise when I saw this story, it angered me none-the-less.

Several years ago an author I was coaching read me a contract she had received from Sam’s club. While the order was substantial and the discount they asked for reasonable for the quantity, their terms called for everything being fully returnable, in any condition, within five years.

She, of course, had already figured out this was a bad deal and I simply confirmed it for her. That’s one of the benefits of having someone to act as a sounding board and help with decisions.

What’s a small business owner to do when faced with an order from a giant company? Are there ways you can still benefit from the huge buying power of a large company without putting yourself at risk?

The answer is, of course, most certainly yes.

For example, Dan Brown and bis Bionic Wrench company could simply have declined Sears request for exclusivity. Making your company vulnerable by having only one big customer is never a good idea. I must say, like Mr. brown, I learned this lesson the hard way years ago.

A small manufacturer or service business needs to buffer themselves from things like this taking place. We need to “spread the risk” among a number of clients even if it means losing out on what seems, at first, to be a great opportunity.

Something else a smaller business can do when dealing with a much larger buyer is to carefully negotiate the terms of the sale. My coaching client, for example, could have renegotiated the contract to, perhaps, offer more of a discount for a non-returnable arrangement or even suggest a smaller order. Even a small publisher can risk a small quantity and, if successful, can always come back with better terms.

While the attraction of a big order from a giant company is always attractive, it’s important to protect yourself and your company from what can go wrong.

Richard Sears, founder, Sears Roebuck & Co.Of course, in the case of Dan Brown versus Sears, this is simply a lack of ethics on the part of Sears, not to mention their total disregard for supporting American businesses.

I doubt Richard Sears (1863-1914), the founder of Sears, Roebuck and Company would approve of the way the present management is running the organization he started.

You can read an interview with Dan Brown, that appeared on the New York Times Small Business Blog here.

If you want to grow your business with less risk, make sure you have someone who can act as your trusted advisor, coach or mentor. If you do not presently have a business coach, consider my small business coaching service to help you and your business. Please keep in mind I do not work with more than five (5) clients at any time. Go here.

 

In Branding, Business, Business Growth, Economy, Marketing, Strategy , , , , , , ,
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How to save money on your next event

January 8, 2013 — Leave a comment

It’s that time of year again when businesses are looking for ways to improve performance and increase their bottom line. One of the best things any company can do to impact their bottom line, especially during tough economic times, is to bring in a professional speaker or coach to work with your staff. Offering a seminar to your employees can go a long way toward increasing productivity, sales and overall performance.

Jim Donovan Chamber of Commerce seminar

In the past, companies invested in new and better equipment in order to be competitive and gain an edge in the marketplace. Today, your people are your most valuable asset, so an investment in upgrading their performance is a prudent move, one that will pay for itself many times over.

In addition to the obvious benefits of increased motivation, performance, skills and, as is the case for salespeople and customer service reps, more business, there are the not-so-obvious benefits of improved morale.

This is of particular importance in a company who has experienced layoffs and downsizing. By giving your employees seminars and other performance improvement services, such as coaching, you demonstrate your company’s commitment to their success, which translates into more success for the company. People feel valued and appreciated which, in turn, encourages them to value and appreciate the company more.

So, just how do you go about choosing the ideal presenter to hire?

Shop locally for better deals
For starters, many budget conscious company’s today are looking more and more to local speakers for their events. In addition to saving the added expense of travel and lodging, many professional speakers charge lower rates for local engagements. A good way to begin your search is to add your city’s name to your search for “motivational speaker. ” For example, you might enter, “affordable motivational speaker new jersey” as your search term.

Read what other’s have said
Next, read the speaker’s Web page looking, in particular, for testimonials. What others have said about a speakers performance is the best endorsement.

Don’t get discouraged by the Web site
When reading sample seminar topics on a speaker’s Web site, keep in mind that most will customize their presentation to meet the needs of your audience. If you do not see exactly what you need, don’t worry. Chances are the speaker will create a program to match your criteria.

Is the speaker you’re considering an author or in some way perceived as a celebrity?
Authors bring added value and can add to the impact of your event. This is of particular importance with groups who need to be enticed to attend the event.

Ask what else might be included.
For example, an author may “sweeten” the deal by offering a special price on their book or even packaging it into the fee. Would they include a couple of follow-up coaching sessions in the deal?

Ask if they will deliver a breakout session for less cost.
I once delivered a morning keynote to the management of a small business and then a shorter training session for the sales force after lunch. Since I was “all dressed up” and already there, we were able to agree on a combined fee that fit the clients budget nicely. Often, a speaker will include a short breakout session as part of the package or at a greatly reduced cost. Personally, since my main goal is to have satisfied clients, I’m pretty flexible, especially if it’s a local event.

Ask permission to record the event.
Having a permanent copy of the speakers program is quite valuable since new employees can gain access to the information and your existing staff can use it as a refresher.

Will the speaker barter a portion of their fee?
Depending on your industry, you may be able to trade a portion of the speaker’s fee for your product or service. A good example of this is, obviously, a resort hotel or even an top notch restaurant. Speakers like to travel and eat too:-)

Regardless of where or how you find a motivational speaker, bringing someone in to improve the performance of your employees is an investment that will pay for itself many times over and is a smart business decision in this challenging economy.

jim-donovan-nals-150Learn more about having international best-selling author and speaker Jim Donovan address your organization here.

 

In Business Growth, Economy, Employee productivity, Productivity, Self-Help, Success , , , , , , ,
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Has Back Friday gone too far?

November 23, 2012 — Leave a comment

Considering that many big retailers are opening Thanksgiving day and shoppers were camped out in front of one giant retailer on Tuesday, awaiting the start of the holiday season, I’m guessing most people would say, “Yes, Black Friday has, in fact, gone too far.”

thanksgiving boycottA groundswell of opposition to retailers opening on Thanksgiving day has been circulating on Facebook, as more and more people recognize the absurdity of this new policy.

One woman was so upset at having to work on Thanksgiving day at Target that she started a Change.org petition, asking the retail giant to, “take the high road and save Thanksgiving.” As of Thanksgiving morning, it had 371,106 signatures.

On the other side of the equation are brands like Nordstrom, Neiman Marcus, Saks, and others who refuse to lower their standards and subject their employees to this absurd practice.

Perhaps this is why Nordstrom is rated as one of the top 100 companies to work for in the United States and why they have the reputation for setting the standard of how to succeed in retail. Others could take a lesson from the Nordstrom playbook.

Opening early the day after Thanksgiving has become a tradition and, while there’s nothing wrong with the idea in theory, the practice has gotten out of hand.

With several big retailers opening on Thanksgiving Day and others open at Midnight, what could have been a fun tradition – getting up early to start holiday shopping – has become a nightmare for the people who have to leave their holiday celebration and go to work.

We hear experts talking about the decline of the American family and the lack of communication around the dinner table while, at the same time retailers are encouraging people to forego the traditional holiday dinner with family and friends and, instead, go out at all hours and take advantage of “Door Buster” specials.

Of course, a close examination of the “specials” reveals an array of off-label, second rate products, imported from China for just this purpose, so who’s kidding whom?

This, in my opinion, is the deeper problem. We are conditioning people to “scramble for the crumbs.” This at a time when we should be encouraging them to be the best they can be.

If the United States is to, once again, become a world power, we need to raise, not lower, our standards.

We need to realize that, in the US anyone with ambition can earn whatever amount of income they want and that they do not need to beg and scrape for whatever trinkets they can grab.

We need to support businesses who make, distribute and sell quality products, not continue to buy low end junk from countries where profits are valued over people and working conditions are a disgrace.

We deserve better than we are being led to believe. Those people who, on Black Friday, are shopping at Nordstrom’s have learned this and should be an example to the rest if us.

The time has come for the American people to reclaim our rightful place as a leader of the free world, not a bunch of bargain hungry bottom feeders willing to fight with each other to save a few bucks on some cheaply made foreign import.

I welcome your comments and opinion on this issue below.

 

In Business, Do not RT, Economy, Employee productivity, Life, Money, Productivity, Success , , , , , , , , , ,
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TD Bank and Barnes & Noble Blunders Just the Tip of the Iceberg

June 6, 2012 — Leave a comment

Two recent stories from Huffington Post are warning signs of a deeper problem in American businesses today.

The first is a story about the New Jersey man who received a counterfeit $100 bill from TD Bank. When he tried to return it, he was told by a bank supervisor that it was against “bank policy” since he already left the bank before reporting it.

The second, a grandfather in Scottsdale, AZ, was told to leave a Barnes & Noble store simply because he was browsing, unaccompanied, in the Children’s book section.

It seems a customer, who obviously watched too many pedophile episodes on Law and Order Special Victims, was concerned that a lone male was in the Children’s section. When she complained to the store manager the man was kicked out.

These are both prime examples of poorly trained, disengaged employee’s knee-jerk reactions that will, ultimately, cost both companies dearly in lost business and bad publicity.

training seminarThe unfortunate thing is that both disasters could have been avoided had the companies invested in employee training and development.

In my opinion, as someone who, for two decades has worked with businesses to train, empower, and motivate staff, the fault lies with top management not investing in training their employees, not simply with the people on the front line.

Like the tip of the iceberg that sank the Titanic, these incidents are warning signs of a deeper problem.

In their efforts to cut spending to the bone, American companies have sacrificed one of their most valuable assets, their people. What would have been a small investment in employee training has now morphed into a major loss for both companies.

It is this type of short term thinking and reluctance to invest for the long haul that is reducing the effectiveness and, ultimately, the success of American businesses.

In both cases, an employee who had been trained to think through the situation and who felt engaged and empowered in their position would surely have reacted differently.

The problems for TD Bank as a direct result of this is still developing, however, so far the bank has not only lost the customer and his remaining $16,000 that was on deposit, but is the central focus of a negative story that has gone viral.

In Barnes & Noble’s case, you can bet than no males over the age of forty will venture into the Children’s book section alone for fear of being accused of improper motives.

At a time when the book retailer is struggling against online competition from the likes of Amazon, this is an error in judgement that should never have happened.

The best either company can hope for at this point is to offer a public apology, preferably from the CEO, and a pledge to better train their employees in the future.

 

 

 

In Business, Do not RT, Economy, Employee productivity , , , , ,
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