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Every Business Can Use a Hand

This may seem like tooting my consultant horn but I wanted to share this story and some compelling observations.  It starts off with the typical referral to a small business that is struggling with sales, marketing, operations… basically direction. Morale is low and customer experience is not tracked.  I sit down with the owner who runs the show and begin the question and answer session to find out the details. I am appalled at the state of disarray and potential risk the business owner is completely ignorant of. We dive into his personal Pandora’s box and uncover many problems and few glimmers of hope. He rattled off answers in a dejected tone and comes across as beaten down. At that point I stop, wait and ask, “Do you really love what you do?” He said, yeah. “What made you start this business?” He spent 15 minutes talking about his original ideas, how great they were, his marketing strategy, beta customers… on and on. I stopped him in mid sentence and said, “Looks like you have all the answers to correct this situation.” He looked at me puzzled. “You need to rediscover your drive and get back on the right path, the rest will take care of itself.” He said, “really?” I replied, “are you ready?” He nodded and immediately sat straighter in the chair, took a deep breath, eyes began to sparkle, and he leaned forward. “How do we start?”

Business Consulting is StrategyGet a “Good” Consultant

This story is played out in many offices, boardrooms, coffee shops, and on kitchen tables every day. The common theme is a gutsy small business owner becomes lost in the daily grind and loses touch with what made his business great. Enter a “good” consultant. I mean “good” not a hack looking for cash. Stimulation, direction, formatting, processes and brainstorming lead to rekindling of the fire and the business is off.  All this sounds great on paper. What happens when the rubber meets the road?

What to Watch

Evaluate the following areas of your business and decide if they are adequate: revenue growth, operational standardization, risk avoidance, work force stability, product development, sales and marketing efficiency, and intellectual property. These are just a few of the critical areas in a business but positive change in any one category can create immediate value within the business.

Sales Operations Example

Let’s just focus on sales operations. If you are experiencing high employee/contractor turnover, low morale, lack of team work, theft, disorganization, poor reporting, lagging sales, inability to delegate, and troubled account management, then it’s time for you to bring in an outside resource. All of these symptoms come from poor company structure and can be immediately corrected with frequent meetings, clear communications, influx of technology, and adjustments in roles and responsibilities. In many cases the results will be simply astonishing. Ask yourself, “are you ready?”

What Would a Freeman Do?

Decisions should be strategicThe classic line from the movie “300” invokes a troubled view of a no win situation. Queen Gorgo doesn’t reassure her husband Leonidas or console him. She baits him into making a decision that could bring terrible consequence upon her and Sparta. In small business we face the same kind of risk in evaluating the best decisions for daily business. Probably don’t attribute life and death to each one but the premise is still the same.

Education First

Before making any critical business decision you should consult many resources not just referrals and friends. Many of these potential participants have unknown motives that can jeopardize business in the future. Each opinion you review has to be evaluated against the opportunity, their potential gain, and risk if the advice is wrong. Sometimes this can be very difficult. This is the main reason to educate first prior to making important decisions. Don’t dismiss this advice as obvious. Think back on decisions you have made. Were they based on strategic planning or “gut” feeling?

Who Finally Benefits?

Often decisions are made based on short-term results rather than long-term benefit. Benefactors may not even be considered. In the case of buying “good deal” products and services stemming from potential gain rather than how the fit in the product mix, purchase may lead to disaster including stranded assets, confused marketing messaging, and misdirection of customer attention. The only benefactor of this situation is the first seller. Everyone else adds risk and potential financial loss during the sales process. Business decision-making should evaluate the final benefactor(s) and roles of eachparticipant(s). Many companies end up in serious trouble if this practice is not the standard. The question becomes, “was this a good deal for the company?”

Decisions by Committee

In small business, owners tend to make decisions based on their knowledge of a situation and not all the potential facts that can be gleaned by others. A good practice is asking for opinions and perspectives prior to making the final call. Teams always have a better “hive” mind and usually make better decisions.  Owners fear being overruled by the committee which can lead to decision paralysis and perhaps choosing a lesser path to success. Strong small businesses build human capital and treat their employees and contractors as useful assets and resources.

Putting It All TogetherDecisions should focus long-term

In essence decisions should be formed from careful screening of all available data, take into account perspectives and opinions, be evaluated against set requirements and guidelines, and make the company function better. If the result of a decision leads to a negative outcome, simply don’t do it. Apply strategy and planning to guarantee success. Start by using my seven step method to provide a ground floor to build on. Call or e-mail any questions because it is YOUR decision to make.

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