Using the roadmap analogy from Part 1 of the Planning Series, how can you start the journey if you don’t even know where you’re at?

Benchmarking is a very effective tool for knowing exactly where you’re at. Benchmarking has several meanings and can be used in number of manners.

Some companies benchmark themselves as a starting point for internal process improvement or profit improvement. Other companies benchmark themselves in relation to an industry or to national, regional or local competition.

This latter benchmarking is the kind of benchmarking I’m going to discuss. Benchmarking your company against similar style, similar sized businesses on a national, regional or local basis has many benefits:

 Identifying areas of concern you weren’t aware of
 Comparing yourself versus your competitors
 Providing realistic goals and objectives
 Indicating necessary strategies
 Helps dictate tactical plans
 Identify and rectify problems
 Development of a process for continuous improvement

In one instance a recently purchased sign company was carrying high levels of inventory because the previous owner told the buyer to keep it at that level. The new owner was benched marked versus his local and regional competition and it turned out that the inventory levels were almost ten times as high as the competition.

This information prodded the new owner into selling off over 85% of his inventory (at a profit – although a small one) and he gained over $350,000 of cash from the sale of the inventory. He would have never known (or found out too late) that his inventory levels were a problem without benchmarking.

This type of benchmarking drives a stake in the ground and says “We are here; this is where we will start our journey”. It will help determine your roadmap for the rest of your journey.

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One of the most glaring mistakes I have seen entrepreneurs and consultants (who should know better) make in formulating their business plans or strategic plans, is not taking into account how they want the business to fit into their lifestyle (and not trying to squeeze their lifestyle around the business).

Many people think I’m nuts when I tell them that planning your business with a "top-down" perspective is crucial to success. They think I am asking them to drive down the road before they’ve even gotten into the car.

How do you picture your ideal lifestyle? I’m guessing an important part of it has you securely positioned in a business where you’re completely in control - of your time as well as your finances.

Having that picture firmly in your head is the first step toward achieving it. Once you know how you want to live, you can build your business around that dream.

What are the ground rules for your business when taking into account that ideal lifestyle?

They might be:
1. No weekends
2. No Business Travel
3. Someone will run the business for you
4. High margin products
5. Little inventory
6. Wholesale (or retail or…) only
7. Referral based only
8. Etc.

Or whatever is important to you. Write these ground rules down. Look at them every day. Ever decision you make should be based upon these rules, either it fits into these rules or you don’t do it.

By the way, you are allowed to change the ground rules any time you want. They are by no means cast in stone. But you always need to have a set of rules to work with. They will prevent you from taking actions that lead you away from - not toward - your ideal lifestyle.

NOW do your business plan.

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Not matter what kind of business you’re in; having a plan is crucial to an positive outcome for your business.

A plan provides you with the necessary focus and direction. As Yogi Berra said “When you don’t know where your going any road will get you there”. Do you know where you’re going or are you just “letting it happen” – if you’re just letting it happen, how’s that working for you? For 99% of businesses is the path to disaster, both financially and emotionally.

Having a plan allows you to use your limited resources (time, money, effort) effectively and efficiently.

Most small business owners cringe at the thought of a “business plan”, the proverbial 50+ page bible. Who has the time for this? Who has the fortitude for this? Who has the desire for this? Certainly not me and I am fairly certain not you. And unless you are going to external sources for financing or support of some kind it’s not necessary.

There are many resources out there to assist you in doing a short and sweet business plan. One I recommend is the One Page Business Plan by Jim Horan. When I reconfigured my business this is what I used to do my business plan. Other than the dreaming/thinking time involved it took me about 16 hours (over several days) to do it. Who doesn’t have 16 hours for this task?

Planning is nothing more than setting your Vision and Mission, identifying and preparing your Goals and Objectives based on your Vision and then prioritizing them into some kind of order. There are six simple steps in developing a workable plan (don’t over think it, don’t over complicate it, this isn’t Quantum Physics) for the typical business owner, I’m not saying you’re typical, but if you were typical, they would be:

1) Set your Vision
2) Define your Mission Statement (as necessary)
3) Identify and prepare your Goals and Objectives
4) Define your Strategies to support the achievement of your Goals and Objectives
5) Generate your three to five year Plan; this is your Strategic Plan or Business Plan (the view from 30,000 feet).
6) Generate your one year plan; based on your Strategic Plan, this is your Tactical Plan or Annual Operating Plan (the view from a mile high).

Are you willing to spend two hours a week and a few days a year to stay on track, work on the critical issues, save yourself hundreds of hours (not working on the wrong or lower priority issues)?

I hope so… if not, how’s that (not having a plan) working for you

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According to David L. Aaker, a recognized customer service guru, the following 10 points will bring your customer service level up to a truly world class level.

1. Know your customer by their first name

2. Listen twice as much as you talk

3. Always tell the truth

4. Never argue with your customer

5. Under promise and over deliver

6. Follow up, follow up, follow up

7. Be thankful for customers who complain, for you still have the opportunity to make them happy

8. Enthusiasm
             The attitude of the employee is contagious to the customer

9. Be thankful for each and every customer

10. The GOLDEN RULE

You can and should contact David for your customer service issues at:
David K. Aaker ACE
Aaker & Associates
PO Box 509
Palm Springs CA 92263
Phone: (760) 323-4600
david@davidkaaker.com

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Not matter what kind of business you have; referrals are the warmest contact you can get. When you’re meeting someone, whether for the first time or not, (at a networking event, in your establishment, in the drug store line or wherever) always treat them with respect and courtesy.

They may not be a prospect, but you don’t know who they know. Everyone knows 50,100, 200 or more people and those people (The 250) may need your help, your product or they can help you.

After a recent networking event I was talking with a young man who was disappointed in the event, he told me "these people won’t do my business any good". I asked him if he thought that his persona came off that way, in other words was he dismissive of them. Not necessarily in his words but also in his body language and actions.

Did he know their circle of 25O?

Could someone in their circle be a prospect, partner, or referral source for him?

From the look in his eyes and his closed body language, he had already dismissed me, he had that look of "Yeah right", while his more experienced partner told us that exploiting the Circle of 250 was exactly how he had built and sold two businesses.

Be in the moment, that person in front of you at that moment is the most important person in the world at that time.

When I send an email blast out to the 4,000 associates in my consulting body, asking for help or a particular expertise, frequently the replies come back along the lines of "I have a client / partner / friend / vendor who can help". So I figure that instead of having the power of 4,000 associates I really have the power one million plus.

Who do you know?

How big is your circle?

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Not matter what kind of business you’re in; the three most common issues I have seen in most, if not all small businesses and small business owners are:

1) Small business owners live in ‘isolation’.
 They have no one to talk to
 No one to bounce ideas off of
 No one to ask advice or brainstorm and problem solve with

2) There is no one to hold the small business owner accountable.
 It is easy to fool yourself; especially if the task is something you don’t like doing.
 It is much harder to fool someone else.

3) They have no “game plan”.
 No 90 day plan, much less a
 One Year Plan or a
 Long Range Plan (3 to 5 Years)

I will write about the first two in this article and I am addressing “game plans” in the planning series.

A support group is imperative in any endeavor we undertake. Who has gone-it-alone and I mean completely alone and been successful. If you’re honest with yourself – very few of us have succeeded all alone.

Support groups can
1. Help you problem solve
2. Brainstorm ideas or new avenues of attack on an issue.
3. Hold you accountable to do the things you said you were going to do.
4. Be there for you when things seem overwhelming.
5. Help you plan week to week, month to month and year to year.

Who wouldn’t appreciate having a group of similar-size, similar-type of business entrepreneurs there to help them overcome the obstacles that confront them daily, weekly , monthly and so on?

If you can’t find an existing group, go to your local chamber and ask if they have or would form such groups, form one of your own, get fellow like-minded business owners to join you once a month to problem solve, hold each other accountable, brainstorm, etc.

Contact me and I will send you an outline for running one of these groups, with tips, tricks of the trade and suggestions.

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Every business consultant should use the following steps when working with you, the business owner. If they don’t use some fashion of this, seriously think about making modifications to your relationship with them. There are many more detailed steps to support the four listed below, but these four are the basis of all quality engagements.

1) They should meet with you, the small to medium business owner for preliminary discussion to review your business issues or project in its totality. If necessary follow on meetings are held to gain clarity of scope, purpose and expected outcomes.
(An Assessment Is Done)

2) The data gathered in the meeting is analyzed by the consultant, with an eye towards your particular business (there are no typical businesses - every one is unique). They should review the many resources available to help you realize the desired outcome. (The Data Is Analyzed)

3) Specific recommendations – in the form of a written proposal – are made to you and the proposed solutions are prioritized.
(Recommendations Are Made And Prioritized)

4) The agreed-upon recommendations are implemented, usually by the combined efforts of the consultant, any necessary experts AND you the business owner. It is absolutely imperative that you the business owner participate, and be accountable for both the implementation and the sustaining of the changes.
(Recommendations Are Implemented)

This 4-step process is swift, sure, economical and hard hitting.

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What I am about to tell you is what in my opinion is heart of the matter or more accurately, the commonalities I have seen in most, if not all small businesses and small business owners.

1) Small business owners live in ‘isolation’.

• They have no one to talk to
• No one to bounce ideas off of
• No one to ask advice or brainstorm and problem solve with

2) There is no one to hold the small business owner accountable.

• It is easy to fool yourself.

Especially if the task is something you don’t like doing. For instance, when I first started my business, cold calling was a must. I hated it – still do… So it was easy for me to justify or rationalize not getting around to doing it. “Oh, I was busy doing X or Y or Z”. Anything not to do cold calling, including “arranging my sock drawer”.

• It is much harder to fool someone else.

If there had been someone to hold me accountable for doing the cold calling, I’m sure I would have done much more of it than I did and potentially my business would have grown that much quicker.

3) They have no “game plan”.

• No 90 day plan, much less a
• One Year Plan or a
• Long Range Plan (3 to 5 Years)

As Yogi Berra said “If you don’t know where your going any road will get you there”.

These three issues make the typical small business owner vulnerable to, at the very least, complacency and at its worst FAILURE.

Over time as I have talked to small business owners I ask them “Who is your support group for problem solving? Who is holding you accountable? Do you think you would be more successful if you had these? ”

Invariably they think it’s a great idea and want to know where to go to find one. Unfortunately most formal or for profit CEO Roundtable cost much more than the typical small business owner can afford (or rather want to pay).

I have encouraged them to start their own support group of similar businesses. Many have asked that I start and facilitate the group and I am trying to carve out some time to start these up. 

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Recent surveys, both here and in the United Kingdom, the latest in Business XL magazine, have shown that money is not the prime motivator in their entrepreneurship.

Sixty plus percent would rather enjoy what they do than have a business that makes huge profits.

Throughout these surveys the results come back that quality of life, not the quantity of profits is the prime motivator for most entrepreneurs.

Less than 30% of state that success is defined by profitability, while more than 50% responded that respect of the community, having enough money to live comfortably and being able to secure their retirement were far more important!

Entrepreneurs must strike a balance between their business and their personal lives. You need to fit your business into your lifestyle not fit you lifestyle into your business. How to do that and still enjoy the rewards that should come from entrepreneurship is hard part.

What do you want?
Untold riches?
Quality of Life?
Respect and admiration?

How do you strike that balance?  How do you define your equilibrium, every entrepreneur is different and there is no correct answer. But we all must find that “sweet spot” or we will terminally unhappy.

I’ll be writing about the balance between your business and personal life more in the future… Stay tuned.

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