How long have you been putting off making the change you know is needed and will better your business?  Maybe it is hiring a new employee, letting one of your employees find happiness elsewhere, moving your business, adding a new product or service.

Is there something you need to change about yourself to be a better more productive business owner?  Are you a control freak, do you have trouble delegating, are you spending most of your time working in your business instead of working on it, do you manage your time poorly, do you know everything and your way is the only way, do you have trouble leading your team, do you have trouble making decisions?

At ActionCOACH we use something we call the formula for change:

D x V + F > R

D= Dissatisfaction

V= Vision

F= First Step

R= Resistance

Your level of dissatisfaction with the current situation, times the vision of how much better things could be, plus taking the first step to start making the needed change must be greater than your resistance to making the change.

If you find yourself procrastinating about making needed changes examine where your level of dissatisfaction is at.  Is it that you have simply learned to live with (tolerate) the current situation?  In your mind it may seem easier than taking the first step to making a change, even though you know in your heart that not doing so is hurting your business.  Really focus on the how the current situation is negatively affecting your business. Then think of how much better it could be if you made the needed change. The next thing is to determine the first step you need to take to make the change. It doesn’t matter if it is a change needed in your business or in you.  This may help you to overcome your resistance.

Try applying the “formula for change” the next time you find yourself resistant to making a needed change…

There is nothing more satisfying to me than seeing one of my clients grow their business, hire more employees, work fewer hours and make more money.  This is what happens when your business works for you instead of you working for your business.

Now think about why you do what you do.  Why are you really in business?  What’s in it for you? What are you really getting out of it?  Once you have answered this question, only then will be able to decide if it is worth it or not. If your business is not giving you what you want, ask yourself can it if I make some changes or do I need to turn the page and do something else?

What I have found is that my “why” of enriching other lives and helping them to increase their wealth, in return enriches my life and increases my wealth.  Does your why do that for you…

First is Destination…here we are look at vision, mission and culture.  Your vision is why your business does what it does. Your vision should enroll and inspire people to join in the vision of the business. Next is the mission of the business this is what your business does, the goods and or services it provides and how it provides them. Then there is culture. What is the environment that the business work under is it positive, toxic or somewhere in between. In order to have a productive team that reaches their potential a business must create and maintain a positive culture (work environment).

Second is Time…do you and your team use your time productively?  One of the most common challenges for business owners is the productive use of their time.  If a business owner tells me they never have enough time to get things done, that usually means they do not use their time productively. They are most likely doing many different things that they should be delegating, which would free up time for them to focus on the most productive and important uses of their time to benefit their business.

Third is Delivery…delivery is all about consistency. Does your business consistently deliver your goods and or services at a level that meets or exceeds your customer’s expectations? Where you set the bar for their expectation is vital to having success in this area.  Be careful not to set the bar to high where you will not be able to consistently meet or exceed it.

Lastly is Financial…it’s all about knowing your numbers. Does the business owner know their breakeven, conversion rates, gross margins, ROI’s, lead generation sources and many more?  Your financial statements are your report card for the business and a business owner must not only know what they are telling them, but also why. There are many numbers that are important to a business that are not on a P & L.  Such as conversion rates, ROI’s, lead generation sources and many more however, these numbers are no less important than the ones on a P & L statement.

The four areas a mastery I have just discussed must be mastered by the business owner in order for a business to grow and prosper.  If a business has cracks in its foundation it will become very apparent and quite quickly once the business begins to grow. The signs are different depending on which area of mastery is lacking. For Destination it could be an unmotivated and “going through the motions team”. Poor time mastery is usually very obvious in a chaotic schedule and never having enough time. Unacceptable delivery mastery most often shows up in poor customer service and lost customers. Lastly, lack of financial mastery appears when poor decisions are made based on guessing (seat of the pants) instead of knowing your numbers and what they are telling you.

Are your foundations solid or do you need to work on the four areas of business mastery…

Visit Ted’s website at http://www.actioncoach.com/tedschmidt

My last blog I discussed what a business coach was and why you as a business owner need a coach. Now I would like to tell you why I coach and also look at whether or not you are ready for a coach.

Why do I coach… in other words what’s in it for me?  To answer this question I think back to a new location I opened from my days as a business owner in the tool and equipment rental industry. I took an empty building turned into a multi-million dollar business with over twenty employees. Why did I do that and what did I really gain from it?  To be certain I learned a lot, it was a lot of work and a lot of hours worked. When I look back on those days what I really find the most satisfying is that I built something from nothing. I created jobs for people, helped my customers to succeed and my suppliers to grow their businesses. I helped train my employees to learn new skills and to reach their potential. What I really did was enrich lives and help to create wealth for others. The more I strived to enrich lives the more my life was enriched. That’s why I started a business and why I was willing to work so hard.  It is the same with business coaching, when I coach a business owner what I am really doing is helping to enrich their lives and create wealth. In return my life is being enriched as well and that is why I coach.

Are you ready for a business coach?  Unfortunately, most business owners simply aren’t ready for me.  They do not have the proper mindset to benefit from coaching.  There are a lot of reasons for this. Some are stuck in the past, some believe they already know all they need to achieve their goals, others don’t want to have someone holding them accountable and still others are afraid to make a change. There are as many reasons for not being ready for coaching as there are business owners. The question is are you ready? Let’s take a look at that and see.

When I am talking to a prospective client one of the first things I share with them is that it is not my job to tell them how to run their business. My job as a business coach is to help you be better at running your business, which will in turn provide you with a more successful business. As a business owner you don’t know what you don’t know. You must be willing to make changes, learn new things, be held accountable and put in the time and effort necessary to achieve your goals. It is really about reaching your potential that’s why all world class athletes have coaches. So…Are you ready to strive to reach your potential…Are you ready for a coach…

Visit my website at www.actioncoach.com/tedschmidt

Do you ever get asked what you do for a living?  It is a common question that I am asked pretty much every week. When I respond I am a business coach, I get some interesting reactions.  The most typical is, “what do you do exactly”?  Most people don’t really know what a business coach does or is.

I often use following illustration to educate someone about what I do as a business coach.  Think of a business coach like a personal trainer they help you to achieve your health/fitness goals. When you are working with a personal trainer they will start by giving you a knowledgeable, honest and objective assessment of your physical condition. Then discuss your goals and what you want to achieve with regard to your physical fitness. Your trainer will then work with you to develop a plan for achieving you goals.  They will also introduce you to some new techniques or systems to use while working out, along with some different strategies for implementing them. They will also discuss your diet with you and how that is affecting you physical fitness. In addition, a personal trainer will help to motive you to work on your physical fitness and strive towards reaching for your fitness potential. Lastly your trainer will hold you accountable for completing your workouts on a consistent basis even when you really don’t feel like it.

If you think about what a personal trainer does for their client it is very similar to what a business coach does for theirs.  The difference is that personal trainer is assisting you to work on improving your physical fitness and business coach is assisting you to improve fitness of your business.

Now let’s talk about why a business owner needs a business coach. Well, think about what we have already discussed. Is it helpful to a business owner to receive a knowledgeable, honest and objective assessment of their business?  Of course it is. Think about it, a personal trainer can point things out that you may not have notice or be aware of and so can a business coach. A business coach will assist you in setting and prioritizing your goals.  Things like the importance of writing your goals down and that they are specific, measurable, achievable, realistic and time bound. A business coach will also educate a business owner on techniques or systems they may have never heard of or used before to help improve their business and introduce strategies as to the best ways to implement them.  A personal trainer will discuss your diet with you, in other words what are you putting into your body and how it affects your fitness. A business coach will discuss what resources you are putting into your business and how they affect your business. Business coaching is about motivation as well, just like with a personal trainer. Sometimes you won’t feel like working out and sometimes a business owner won’t feel like working on their business. This is where a coach can be a motivating factor in the life of a business owner when their self motivation may not be where it needs to be.  Lastly, there is accountability your business coach will hold you accountable to consistently work on your business to achieve your goals, even when you really don’t feel like it. As a business owner the question to ask is would having a business coach improve your business?  So what’s your answer…

If you have any non-producers on your payroll right now, they are costing you money. So how much?

Well, it’s probably much more than you think… but that’s not as important as what you are going to do about it.

Not what you’ve done about it, because if they are still on your payroll and underperforming, you haven’t done much. Have you?

You are still handing over leads that they are not converting, providing accounts for them to service poorly and giving them responsibilities they fail to perform or need help from teammates to accomplish. And you still have to pay them your hard earned revenue.

The Two Types of Employees:

There really are only two types of employees; the “right” and the “wrong” ones.

So how do you decipher between the two? Well, it’s easy.

The right ones make you money because they are dependable, engaged, self-motivated, good team-players and capable of performing their jobs without extra training, micro-management, bonuses or ultimatums.

And they are the ones you need to fill your organization with if you want to reach the potential you know your business has (but hasn’t yet reached).

There is NEVER a Good Time to have the “Wrong” People on Your Payroll

So, how can you tell who the wrong people are? Well, all of the things that the right people are, the wrong people are the opposite.

Yes, there are some employees that most of the days, weeks or months accomplish their goals as your Top Performers do. But then, for whatever reason (wrong person in the job 80% of the time / personal issues 20% of the time), they are unable to maintain peak productivity without being micro-managed and their performance slips.

You need to realize, their sporadic performance is hurting your bottom-line; and anyone who hurts your bottom-line is the wrong person to have on your payroll.

And there is never a good time to have the wrong people on your payroll; especially now in this time of economic uncertainty.

Today, it’s more important than ever to be focusing your efforts on initiating more effective marketing (as you learn about in this newsletter), increasing sales, servicing your clients and developing business. You should not be focusing on extra training, micro-management, creating bonuses or giving ultimatums.

The Cost of Employing Non-Producers

Complete the chart below to discover how much of your revenue is being wasted on the salaries of the wrong people.

Shocking, isn’t it.

The figure in the highlighted box is what you are spending a month just on the salaries of non-performers. Now, multiply that figure by 12 to find out how much of your annual revenue is being wasted paying people to hold your business back.

Remember, this is only the payroll expense of these people. You are also paying benefits, payroll and unemployment tax, L & I, etc. which will double this figure.

And when you factor in the lost opportunities, customers and sales because of incompetence and lack of skill, you can triple this figure.

That’s the Bad News… Now Here’s the Good

If less than 100% of your employees are TOP Performers, your business has more potential. If less than 80% of your employees are TOP Performers, your business has “a lot” more potential.

And by creating an HR System to find, hire and develop the right people, you’ll finally reach this potential.

There are three simple things you can do to be a more successful business owner or executive: always be on time, always tell the truth and always do what you say you will do. Just because they are simple doesn’t mean that they are easy to do. In fact a lot of people struggle with these three things. Let’s take them one at a time as they relate to your business and/or career and look at why they are important to your success.

Always be on time for meetings, appointments, phone calls, networking whatever it is. When we look at why is it important to always be on time consider the following. First and foremost, do you like to do business with someone who is always late?  What does it say about a person’s behavior and how they are perceived…undependable, disorganized, forgetful etc.  Secondly, what is someone who is always late really telling the people they are keeping waiting.  They are showing a lack of respect for the people who they keep waiting and for their most valuable asset “time”.

Next, always tell the truth this is especially relevant for business owners.  Think about the message you are sending in particular to your employees if you they witness you lying to customers, suppliers colleagues etc.  You are giving them permission to lie to someone if it serves their purpose. What does this say about you and your integrity as a person? When someone hears you tell a lie their next thought is, “I wonder if they have lied to me”.  More importantly would you want to do business with someone who will lie to you?  Sometimes it is difficult to always tell the truth, when you forget a meeting or to follow up on something for a customer. Trust me it is much better to own up to a mistake and take responsibility than to tell a lie (even a small one) to cover yourself. Think about how you would want to be treated.  Do you always want to be told the truth?

Lastly, it is very important always do what you say (promise) you will do.  This can be difficult to pull off and we have all dropped the ball at one time or another. However, it goes right back to how do you want to be treated.  When someone you are doing business with says they will do something for you, how do you feel when they don’t deliver as promised?  Probably disappointed especially when you are depending on them in order to serve your own customer.  Again, do you want to do business with someone who never does that they say they will do for you?

If you are not achieving the level of success you would like as a business owner or executive, think about the “three things” and how you are perceived.  Are you always on time, do you always tell the truth and do you always do what you say you will do? Ask yourself this, “Would you want to do business with you”…

Visit my website at http://www.actioncoach.com/tedschmidt

I just returned from the ActionCOACH North American Conference.  It was a great experience and I learned a lot about myself as a coach and about how to be a better coach (34 pages of notes).

When I see a business owner who has stopped learning or “shut down” it is called having a case of the “I Knows”. It is like when you are trying to teach a teenager something and they respond with “I know”.  What they really did was tune you out and closed their mind to what you were saying. They “shut down” an opportunity to learn something new. Do you know anyone like this?  They think they already know all they need to and aren’t willing to consider learning something new, especially from someone else. Is this you?

At our conference I was reminded that in order to have continued success one can never “shut down” their willingness to learn.  As a business owner or business coach, continuing to learn new strategies for improving your business or yourself are critical. Once you stop learning or educating yourself or “shut down”, you are opening the door for your competitors who are proactive about keeping up with a changing business environment to pass you by and leave you for dead.

I have seen this with business owners.  In order for us to be the best we can be we must continue to learn and educate ourselves.  The one thing I have learned in my 30 plus year career in business is that if you want continued success you must never stop learning.

I am always looking for better ways to do things both for myself and my clients.  Think about it, do we live in a static environment?  No, we live in an ever changing world especially when it comes to technology.  It is up to me as a coach and you as a business owner to stay current with our changing environment and how we must adapt and change in order to not just survive, but to thrive.

I interact with business owners almost every day, I often come across a business owner with a bad case of the “I Knows”, followed up by a case of frustration. They just can’t seem to figure out why their business isn’t providing them with the life style they desire. The problem is that they are still running their business the way they did 5 or 10 years ago.  They have “shut down” and figured they know all they need to too be successful.

If you are frustrated with where your business is and how it is progressing or even worse regressing.  Examine how you are running your business, take a good look in the mirror and ask yourself if you have a case of the “I Knows”…

Visit my website at: http://www.actioncoach.com/tedschmidt

There is a real opportunity for business owners to out shine the competition if they are willing to set themselves apart by providing service that is consistent, makes it easy to buy and creates a “Wow” factor with their customers.

Let me share some examples of these three components from my days as the owner of a tool and equipment rental business.

First consistency- the vast majority of the time our tools and equipment were in perfect working order and our customers came to expect that they would have a trouble free rental experience. If a problem did occur they also knew it would be taken care of in a timely manner with a sense of urgency on the part of my employees. We consistently delivered a quality product and a positive experience for our customers.

Second make it easy to buy- we did not have lengthy drawn out rental agreements that required a first born child before we would let the customer leave with a piece of equipment. We essentially took any form of payment the customer chose to use and we processed the transaction quickly. The average customer would only be at our check-out counter for about 3 minutes (time is money, especially to contractors).

Third the “Wow” factor- we exceeded the customer’s expectations and the more you surprise them the better. We trained our yard personnel to greet all customers at their vehicles and find out what they needed to rent. While the customer was at the check-out counter our yard person was readying the rental item and loading it into the customer’s vehicle. By the time the customer made it back out to their vehicle they were already loaded and ready to go (we would wait and instruct a customer on the proper operation if needed and then load them).Customer’s that were not use to doing business with us were stunned and we definitely created a “Wow” factor. A customer could come in to rent a power rake for their lawn and be in and out of our business in less than 5 minutes. When they returned the item our goals was to have their paper work completed and their receipt ready when they walked through door (and we did more often than not). We would hand them there receipt, thank them for their business and they were on their way in a matter of seconds “Wow” again.

Ask yourself as a business owner does your business deliver a consistent, easy to buy experience for your customers that has a “Wow” factor?  If not, maybe it’s time to make some changes.