Monthly Archives: July 2011

7 Year Old Entrepreneur

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Recently I tacked a couple of days on the front-side of a trip to LA, to go back to my home in Lake Tahoe. It was a much-needed break, and a fabulous time of reflecting and relaxing.

On one of my many trips around the lake, I saw something out of the corner of my eye. Doing 40 miles an hour, I saw on a side street what appeared to be a lemonade stand. If you know me at all, you know that I am absolutely crazy about kids. And kids trying to make something of themselves, even more! A kid setting up a lemonade stand, when they could be playing Wii, there’s no way I’m passing this up!

So I had to find a place to turn around. I drove back slowly trying to figure out what street it was that caught my eye. And then, there she was. The cutest little entrepreneur I had ever seen. As I pulled over to park, I noticed that she was serving two bicyclist. In fact, she was sitting at the top of a hill where the street meets a bike path. Her dad was sitting on a log off to the side just watching.

As I walked up, she was finishing her “current transaction” with the bikers. As she handed them their items, she bit her bottom lip as if giddy that she had made another sale. You could tell it had been a good day. I said “Hi”, and asked her what her name was. “Charley!” she said. “That’s a beautiful name!” I said. “How do you spell it?” “C..H..A..R….L…….E.Y” Ok, I’ll admit it, I melted.

I told her that I would like two cookies and a lemonade. She peeled back the plastic wrap from the cookies and let me know that I could choose which two I would like. She started to pour my lemonade from her little glass jar with the press down spout. She then stopped, and her eyes got big as if she remembered something. “Would you like ice with that?” she asked. “No thanks.” I said. She continued to pour.

The total was $3.00, so I gave her $5.00 and told her to keep the rest. She didn’t get that, but then again, she’s seven, and adorable. Once again, she bit her bottom lip with satisfaction. I then walked over to her dad and told him that I teach entrepreneurs and leaders, and I write a blog on leadership, and could I write a post about her? He asked a couple of good dad questions, and they said yes.

I asked how she came up with the idea of doing a stand. This was actually her second time. The first time was when her parents were doing a garage sale and she thought that the people coming might want some lemonade and cookies. Come to find out, she was right. So she then asked her dad if she could do a stand at the top of the hill on their street where the bike path is. The reason for that location? Because she noticed that the bikers pedal to the top and are tired. I love it! seven Years old and she understands about location, location, location!

CLo – “What are you going to do with the money that you make?”

Char – “Wedding Build-A-Bear.”

CLo – “Nice! Anything else?”

Char – “Mmmmm…a car.”

CLo – “HAHA…that’s awesome! Did you make the cookies and lemonade?”

At this point she reaches down, grabs her foot in her flip-flop and pulls it to her back. Standing on one leg she bites her bottom lip, this time from thought process.

Char – “Mmmm…no. Mom made the cookies ’cause of the oven. I made the lemonade.”

CLo – “What else do you like to do when you’re not running a business?”

Char – “Ski….and inter-tube.”

CLo – “Well thank you Charley for taking the time to talk with me. I really appreciate it.”

Char – “You’re welcome.”

And then she shook my hand. OMG!!! I turned to her dad, shook his, and thanked him. He said: “The funny thing is that I have the boat on the lake ready to go, but I can’t get her to leave.” About that time, Charley picked up the sign and began to tilt it back and forth. “Oh yeah,” her dad said: “She put sticks on the backside of her sign so she could spin it like the guys on the corners.” That’s it, she is officially entrepreneur of the year in my book!

Question: Simple, how cute is she?!

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You’re Fired!

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Here is another excellent guest post by Jon Edlin. Jon is the Marketing Manager for the Nazarene Publishing House. You can follow him on Twitter or Facebook. You should guest post! Read about it here.

I am the type of person who always sees the glass as half-full.   I can usually dismiss a person’s character flaws because I am so hopeful about helping them reach their full potential. Although my wife says she finds this personality trait of mine endearing, it has recently brought difficulty for me in the workplace.  In fact, when I had a difficult employee, I was so busy trying to develop that employee that I did not notice the rest of my team was suffering.

In March, I had the opportunity to attend Dave Ramsey’s EntreLeadership 1-Day Event in Kansas City.  I took away a wealth of information from that event, but what Dave said about building the right team really caught my attention.   Dave mentioned that when visitors meet his team, they are often amazed at how nice everyone is.

Dave went on to explain that of course he has nice people working for him.  He fires the ones who aren’t.  He explained that if you have a team member working for you who you don’t like, there is probably a good reason for that.  Chances are that person could be bringing everyone on your team down.

As soon as those words came out of his mouth, something clicked for me.  My attempts at developing my difficult employee had been unsuccessful and all the while, the morale of my team had been steadily decreasing.  I wish I could say I went back to my office ready to defeat the virus that was plaguing my team, but I didn’t.

I continued to give my difficult employee chance after chance until I lost a perfectly good team member due to the unbearable environment I had allowed.  It was too late to prevent him from moving on, but it was then that I decided to keep the rest of my team from the same fate.  So I did it.  With good reason, I fired the employee that was holding my team back.

Since then, there has been a complete 180-degree shift.  My team is now working on all cylinders. A cloud has been lifted, and for the first time I can see a bright future.

Questions: Who’s holding your team back? If you don’t like them, why are they working for you?

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Five Ways To Fix Bad Habits

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Many leaders believe leading is not parenting. I hired you as an adult to do an adult job, so I should be able to treat you as an adult. The problem is, we ALL have childhood traits that carry over into our adult lives. And most likely, our working lives too.

Just because I’m an adult, doesn’t mean I don’t have bad habits that were instilled in me from a very early age. In fact, one of the things I see over and over again is a severe entitlement mentality. There’s this crazy idea in our young people that the world owes them something. Where they get that from doesn’t matter as much as what their parents didn’t do to fix that broken thought process.

As a leader, you get the great opportunity to receive those traits, or bad habits, when you hire each and every individual. (Don’t look now…but you have them as well.) So what can you do when some of those traits or habits start to surface? Well…fire them! Or…maybe we can take a different approach:

  • Please sir, may I have some more? – First thing you should do is start by giving them a little grace. Many times I watch leaders lose their minds over some of the things their team members do. And when I sit down to counsel with them, I find they are doing the same things, just in different ways. The truth is that we all fall short. We all have issues. And until you come to understand that about yourself, you can’t help your team.
  • Go all CSI on their stuff – You need to get to the bottom of the actual problem. Quite often you might notice a surface problem only to later discover a much deeper issue causing it. Spend some time investigating what you see going on. If you notice someone not giving you complete information on a project, is it possible they are covering up big mistakes?
  • Open a vein – Oh, I’m sorry, I meant a line…of communication. Once you discover what the problem is, sit down with the individual and discuss what you are seeing. Now, more often than not, this is where I see leaders ripping heads off. Trust me when I say, that gets you no-freakin-where! You may feel better, but you didn’t solve the problem. In fact, you probably pushed it further down inside, only for it to surface on a much more important project. Have a calm and gentle conversation on what you think needs to be worked on. Treat the person with dignity, so they can recognize for themselves that there is an issue.
  • Pete and Repeat were on a bridge… - Here is where most leaders get confused. You see, they didn’t get into that bad habit or trait overnight, so they sure aren’t going to get out of it overnight. This is going to be a process of you holding their arms up and helping them to truly fix the problem. You may have to meet with them on a weekly, and depending on the issue, maybe a daily basis to see how they are doing. And not just to see, but to be there in any way possible to help. Think of how you would want to be treated.
  • WOOT WOOT! – As you see progress, no matter how small, take the time to point out what they are doing right. We as leaders have no issue pointing out what our team is doing wrong, so take this opportunity to tell them you are seeing a change and how thankful you are that they are winning. Praise what you want repeated.

Some situations make take months to see real progress. Some may be fixed quickly because the team member didn’t know they had the habit. Either way, you have to decide what’s most important to you. Roll up your sleeves and get in there, or sit on the sidelines mad and waiting for them to fix themselves.

Question: Have you ever had a leader spend time working with you to make you a better team member?

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Sticking to your guns!

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I don’t consider myself to be an artistic person. In fact, I don’t know of anyone who would refer to me as artistic either. But there are times when I know how something should look. In marketing Live Events for 10 years, there were plenty of times when I knew our promotional stuff needed a drastic change — that what we were putting out just wasn’t eye-catching enough.

Another one of those situations was when I was building my house. There are a few spectacular views from my property. One of those is looking over my pond with a view of a valley floor and some houses. Another is looking at a really old and beautiful barn with a hillside as a back drop. When it was time to lay out the position of the house, I immediately knew it needed to face the barn.

Once I stated that, everybody told me I was wrong. Our builder, who is a great guy and built an amazing house, said it needed to face the pond. We could put a fountain in it, and it would be beautiful. I said barn. A few weeks later, our draftsman said it needed to face the pond. I said we would lose our backyard facing the pond due to the tree line…and it needs to face the barn.

A month later the architectural review board for the sub-division said it needed to face the pond. Even my wife was like, “A fountain would be nice. Maybe it should face the pond.” At this point I called everyone and told them to meet me out at the property. I wanted all parties there at the same time to see what I was seeing.

With everyone on the property, in the rain and lightning, I asked them to mark off what the house would look like in front of the pond. They took their handy-dandy rolling yard stick thingy and laid out all four corners. At this point I looked at the builder and didn’t say a word. He looked back at me and said, “Chris is right! It needs to face the barn.” He then walked over to me and said, “You’re in the wrong business.”

Now, have I always been right with every decision I’ve made like this? Yes! OK, of course not. Not even close. But there are moments, when everything inside of you is telling you that you are right. Those are the moments you need to stick to your guns. Even if you have to bring everyone together at the same time to see what it is that you see. From that day forward, I can’t tell you the number of times people have commented on how the view from the house it just amazing.

Question: What barn-facing moments have you had in your life?

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Why You Must Hire Correctly!

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It is a great honor and a privilege to be able to help so many people with their businesses. And because I love it so much, I always encourage my readers to ask me questions. Doesn’t matter what it is, I will do my best to answer it. So many great questions turn into posts that I’m able to share with everyone else.

Here is one of those posts. David Branch has attended both our EntreLeadership Master Series Dave taught in Cancun, and the EntreLeadership I taught here in Nashville. He brought three of his top guys along with him to my event. Let me say, that was the right thing for him to do with his business. Getting those guys on board gave him a huge advantage.

In Q & A On Profit-sharing and Q & A On Profit-sharing Pt. 2, David and I discussed how he could pay his team more money from profit-sharing than from high salaries, which were killing his bottom-line. After we talked that through, we discussed his need to offer lower salaries and the opportunity to make a lot of money through bonuses to potential new team members. We also talked about the importance of taking the time to find right people, not just offering a high salary to get someone on-board.

Below are two emails that I received from David. The first was not too long after we discussed his need to change his interview process. And the second is one month to the day later. Enjoy:

6/12/11

CLo: What are your thoughts on what we talked about?

DB: In my view I will pass up a whole lot of potentially great people because they have past financial sins that do not allow them to take a risk.  What about the guy who feels the risk is worth it, but has a mortgage, car loan and three kids and a wife, and has to make $50k or more to just meet his bills?  Not knowing enough about our company, he may not be in a position to take that chance.  

I know it may be worth it, but hiring has gone from what used to be a single interview to see if I liked the candidate, and if I did I made them a salary or hourly wage offer.  This new way will prove to be better, but it’s a total “pain in the butt.”  I have thrown away hundreds of resumes and had numerous interviews and hired nobody. Am I asking too much? It’s almost as if I’m looking for someone who doesn’t exist.

Thanks again for the therapy session !!

7/12/11

CLo: How are things down there?

DB: After a lot of prayer and endurance, I have finally found some qualified candidates to hire.  We have been stretched so thin for so long and are getting a bit burned out.  Stewart and I met for prayer a time or two, and we prayed specifically for great people.  We have been hiring for three positions and out of hundreds found NONE.  Then in one week we found people for all the positions. 

Definitely GOD!  Thanks for stressing the importance of being patient and waiting. I found myself wanting to compromise just to get relief, and now I am so glad I held the line. Now I have to pray that our work load sustains and bonuses are good. 

Three keys to David’s success:

  • The right compensations calculation
  • Prayer
  • Lots of patience

We can have the first two, but without the last one, you will find yourself in trouble.

Question: How has hiring the wrong way affected your company?

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Leadership Spotlight: Mark Daniels

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The Leadership Spotlight continues this week with Mark Daniels. Mark is the Business Technology Project Leader for Financial Peace University.

Mark has a diverse work history with 20 years of experience across a variety of industries including a non-profit research organization, a law firm, an IT consulting firm and a large multi-national corporation.  Mark has led developers, architects, business analysts and project managers on hundreds of projects.  Prior to joining Dave’s team, Mark worked for nine years at H&R Block’s world headquarters in Kansas City, MO, where he held various leadership positions.

This included leading the development team responsible for the tax software platform used in all H&R Block retail offices. When not at work, Mark enjoys spending time with his family and occasionally chasing a little white ball around nicely mowed grass. He and his wife, Jackie, have one daughter and live near Nashville, TN.

CLo: What is your role in leadership?

MD: My current role is really oriented around leadership in two different ways. First, I lead a team of software developers directly. Secondly, I lead a number of initiatives and projects for various departments, which means I lead others who do not directly report to me.

CLo: What is the best advice you’ve ever received about leadership?

MD: I have been blessed to work with some outstanding leaders and I have always tried to learn something from each one. While it is difficult to land on a “best,” here are a few things that stand out:

  • Be yourself. Don’t try to lead like someone you are not.
  • Empowerment can only truly come after alignment — get aligned with your leader and look to ensure your team is aligned with you.
  • Strive to be a servant leader and build relationships with those you lead.
  • People follow what is modeled — what you do speaks volumes.

CLo: What is the biggest challenge facing leaders today?

MD: I think it the biggest challenge remains how to communicate effectively. Everything we do involves people so communication and relationship is so key.

CLo: How do you continue to improve yourself as a leader?

MD: Find other leaders I can learn from and then try to build relationships with them.

CLo: How do you invest in others?

MD: I believe people want to know their leader cares about what they do and how they do it. I invest in others by showing them I care about the details of their work and make sure to recognize them for their efforts and contributions.

CLo: What was the last book you read?

MD: I have four going right now:

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Can You Agree With Your Spouse?

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The number one issue for fights inside of a marriage is money problems. Some studies show that 57% of the fights inside of a marriage are over money.

So if it’s that bad at home, what happens when a couple works together with the business finances? Well, here’s a very common question from one of our fans:

My husband and his father are running a small real estate management company. My husband hired me to start managing the finances/keeping the books for them beginning in September 2010. After working with their finances for several months now, I see that there is a substantial amount of credit card debt.

I have tried to explain to my husband that I need to apply the principle of the “debt-snowball” to this debt instead of continuing to make several minimum monthly payments that are several hundreds of dollars each. My husband argues with me about this stating that this will destroy the company’s credit rating, etc.

This is the same argument he made with me when I started FPU and told him we needed to start the debt-snowball on our personal credit card debt. In that case, he finally stopped arguing with me and let me go ahead. In terms of the small business, he is being a bit more difficult. I need to be able to show him the specific answer that the debt-snowball is applied in the same manner in a small company like theirs, as it is in personal finance. Please help!

The debt question is one that I get A LOT in EntreLeadership. So many leaders think that people can’t run a business without debt. So inevitably, during my event I will ask how many people are running their business debt free. It’s usually about 30% of the attendees. If people can’t run a business without debt, then how are so many doing it?

There are a few things to consider:

  • What does God say? – The Bible is very clear on the issue of debt. DON’T DO IT! In fact, Proverbs says that if you have gone into debt, get out as quickly as you possibly can. Nowhere in the Bible will you find God blessing someone with debt. Nor do you see Him separating out personal and business. He doesn’t differentiate.
  • It gives me options – Actually, I am a firm believer that debt robs you of your options. When your money is tied up paying off debt, you’re not able to take advantage of situations when they come up. On top of that, you are potentially holding God back from doing some of the things He want to do in His business. (It is His, right?) I have seen plenty of God situations that people weren’t able to capitalize on because they were bound by debt. Going into debt is saying that you know better than God on the speed of growth you should have.
  • But my credit score! – There is only one thing that you need a credit score/rating for – to go into debt. That’s it. It’s there to help you get into more trouble. If you have cash, you don’t need a rating. Besides, you get MUCH better deals when you pay companies with cash. Especially in a time when so many companies are no getting their receivables collected for months on end. Go ahead and destroy the credit rating, it’s not helping you.
  • Proverbs 31 – Who can find a virtuous wife? Her worth is far above rubies. Her husbands heart trusts safely in her; so he will have no lack of gain. Dude, listen to your wife! She’s onto something. Women have a sense of discernment that us guys just don’t have. And like fools, so many guys don’t listen to them when it comes to business. This is a mistake. God has wired them differently than us. Drop the pride and ask for her opinion. You’ll be surprised at how much money, time, and nose bleeds it will save you.

Question: What ways have you experienced this in your life?

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Interview with Dave Ramsey’s Personal Assistant

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Patti Harris is in league of her own. Not only is she an outrageously talented team member, she’s also one of the nicest people you’ll ever meet. And make no mistake, she has been keeping Dave Ramsey in line for many years now.

The day Patti came on board is the day life got a little easier at our office. She instantly put things in place that brought a better order to our way of doing things. She put more structure into how leadership interacted with Dave, which in turn affected how we interacted with each other.

So much so, that Patti has also mentored other assistants around the building on how to keep their leaders on track. She has been a blessing to our whole company.

CLo: How would you describe working with Dave?

PH: My leader knows me very well.  He knows when I am having a good day, a bad day, what I like to do, what I don’t like to do, what I’m good at, and what I’m not so good at.  That comes from working together for eight years.  He gives me a lot of praise when I do something good and a lot of mercy when I mess something up.

He has off-the-chart integrity so I never have to wonder where he’s coming from or what he really wants.  There is no hidden agenda.  No dishonesty.  No lack of trust.  I have the best job in the world.

CLo: Whenever you attend an EntreLeadership event, attendees are always tracking you down to get some much-needed advice. What do you get asked the most?

PH: “I think I need an assistant.  Where do I find one?  What do I look for?  What is your DISC profile?” I ask them what they want an assistant to do.  Most of them don’t know.  They think they should get one because Dave has one, and they heard him talk about me.  Their biggest misconception is that they think one size fits all, or that anyone can be an assistant.

There’s a difference between an Administrative Assistant and a Personal Assistant. An Administrative Assistant is someone who acts as a gate-keeper with the phones, emails and team members. They also handle scheduling calendars, getting information to the team, etc.

A Personal Assistant does all of that and then takes care of all the “personal” stuff that keeps that leader from focusing on leading, like running errands, getting lunch, scheduling vacations and even taking care of things at the house. Either way, you need to hire for the needs that you have, so when those needs are taken care of, you can focus more on growing the business. If you hire a Personal Assistant just because it sounds fun, you’re wasting resources.

CLo: What other questions are most asked?

PH: “Dave said that you keep his calendar.  What else do you do?” I ask them if they’ve seen his calendar.  There is an immense amount of energy that goes into keeping the schedule of a CEO. Imagine what that’s like when the CEO is also a celebrity. It’s pretty crazy. There’s the three-hour block for the radio show that can’t be touched unless it’s an absolute emergency.

Then, the schedule is full months in advance so you have to weigh every new potential appointment against the importance of what’s on the schedule. And EVERYTHING on the schedule is important. From time to time you just have to tell people, “No, you need to get with your EVP on this.”

Sometimes it’s hard to put into words the line on my job description that says “Whatever I can do for Dave to make his life easier. :-)

Question: Have you seen how a high quality assistant can make a difference?

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How to retain your customers

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If you’re anything like me, you love great customer service. There’s no feeling like leaving a business when you have been taken care of. It sticks with you all day, and you can’t help but let others know.

Recently, I had one of those experiences. I’ve been taking my cars to Christian Brothers Automotive for a couple of years now. Mainly because they do a great job, but also because of their customer service. I feel like I can trust them to do high quality work, and they won’t take advantage of me. A trait you don’t find in a lot of auto repair places.

This past week I had an issue where a clip on one of my brakes was cutting into the back side of my rim. How fun would it be if it to cut all the way through the rim on the freeway? So I took it to CBA, explained my situation, and Marvin told me he would get right on it. I needed a ride back to work, and their normal driver was already taking someone else. Yep, they actually have a car service that will pick you up or drop you off.

Since the regular guy was out, the owner, Darleen Reese, jumped in to give me a ride. Now, there’s a whole other post right there about how, as an owner, you have to be willing to do what you ask others to do. In fact, I just so happened to write about it in Exclusive – Dave Ramsey Unloading Trucks!

Now, I have a high appreciation for women succeeding in business. So the drive back gave me a great opportunity to “interview” Darleen without her knowing. :-O Here’s some of our discussion:

CLo: How do you like running an auto shop?

DR: You know, it’s difficult from time to time trying to make sure nothing goes wrong in the shop. So it’s a lot of work. And I’m not the kind of leader who just sits in her office waiting for something to happen. I’m in the shop with the guys doing whatever is needed. What really drives me is I love to take care of people. Like when someone on a trip has a breakdown, and they call not knowing what to do. Being able to help them and take care of them excites me.

CLo: For years I have helped women not get taken advantage of at a repair place because it is so common. And with most women, getting your car fixed is intimidating. I bet women feel safe coming to your shop?

DR: Oh yeah. They see that I’m there, and you can see them relax. Once, a guy came into the shop and said, “I purposefully sent my wife in the other day to see how you would treat her. You took such good care of her and didn’t take advantage of her that I’m going to use you to work on my car.”

CLo: HAHA…that HAS to feel good!

DR: It really does.

CLo: By the way, I talk about you guys each time I teach EntreLeadership. Now you’ve given me more material.

DR: Oh! Well thanks! I’m glad I could help.

And that is why Darleen continues to receive my loyalty. Not just because they do a great job with my vehicles, but for the simple fact that what they do is bigger than themselves. They don’t just turn a wrench; they protect the single mom who knows very little about cars.

Question: Where have you seen this kind of customer service?

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Social Media Revolution – Why Social Media Is So Important To Business!

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What is this social media revolution? This is a question I get a lot during EntreLeadership. Usually from small companies that believe their business of….pouring concrete, doesn’t need a social media presence. If you feel that same way, then give four minutes and 19 seconds to this video:

You see, there is a very real shift that’s happening. You’re company is getting older, but most likely, your customers are getting younger. How do I mean? The next generation who will be buying your product is completely used to getting their information a different way than the current generation. And truthfully, the current generation is catching on as well.

Now when I want to learn how to do something, I don’t call someone. I don’t email someone. I Google it. Then I read 17 blogs trying to find someone who actually knows what I’m talking about. The funny thing is, as forward-thinking as I think I am, I’m not. You see, the younger generation doesn’t Google to learn how to do something. They YouTube it to watch how to do it.

By the way, YouTube has become one of the best places for you to get customer to trust you. When they can see your products and how you do business, then a confidence is built in their minds. They also feel like they received something for free, which in turn builds more confidence.

So if you can’t figure out how and why it is vastly important to have a social media presence, then I don’t know how to convince you. I can tell you this, if I need some concrete poured at my house, I’m not looking in the Yellow Pages to find someone. I’m online, and I’m reading reviews on all of my possible options. Will I find your company?

Question: How is your company seeing a change, or lack there of, due to social media?

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