Monthly Archives: September 2011

Should My Business Be Concerned About Going Green?

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Here’s another question from an EntreLeadership Podcast listener:

One business question that I’d love to hear discussed is at what size of business do you start to worry about your business’s environmental impact? And how much money do you spend to reduce your environmental footprint? Is a certain amount of money spent on showing how “green” you are worth it in the PR side of things?

The idea of going green is completely subjective to how important you believe it is, and what business you are in. If it is a moral obligation to you, then size doesn’t matter, the sooner the better. You can make simple changes in products you use in your office like cleaning supplies, recycled paper, no Styrofoam cups containing CFC’s, only filtered water machines instead of bottled water, etc. There are tons of little things you can do.

Choosing vendors who do the same will also become important to you. These are simple changes that will cost you a decent amount more, but will satisfy the need to feel green in your office.

If you’re a company that produces a product that is having an effect on the environment, then it’s a different story. Obviously you would be working inside EPA guidelines or hopefully you wouldn’t have a business. So taking it a step or ten further is now dependent on how it will affect your bottom line?

  • How much you spend is important. There’s a saying in ministry, where there is no margin, there is no ministry. It doesn’t make a lot of sense to spend so much money on your already approved product to make it green, if your bottom line disappears. If you can’t afford to keep the doors open, you don’t need to continue to crank out the product. Find an additional percentage that is acceptable to spend to make the product more green, and keeps you happy about the net profits.
  • How it affects your sales matters. If going green will increase the gross and net sales of your product, green it up! Get as much PR out there as you can and get movement as fast as possible. Keep in mind, if you lose $1.00 per item by going green, then selling 10,000 more, without decreased expenses, will only cause you to lose $10,000.00. Therefore, it again is a balancing act with the impact to the bottom line.

Either way, stay in business first, then decide the amount of the bottom line you want to change.

Question: How do you feel about your business going green?

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Commission vs. Profit-sharing

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Commissions should be paid whenever you can show how someone has generated revenue for the company on a consistent basis. So much that is violates the law of common sense to not have it as a commissioned role. All other positions can have a profit-sharing plan attached.

In How To Do Profit-sharing and How To Do Profit-sharing Pt 2 , I explain how to implement a system that works. The whole goal is to incentivize your team to cause expenses to go down and revenues to go up, which, in turn, creates profit. As the team starts to take responsibility for how the company is run, they begin to see increased paychecks. This creates buy-in and ownership by team members.

In a medical practice, you can easily point out the areas where the team can cut expenses. But finding increased revenues is a little harder. In pediatrics, the most effective way to increase revenues, in my mind, is to absolutely super serve the customers. There’s probably not a single parent who doesn’t know other parents with kids the same age as theirs.

Therefore, as you go over the top serving your little patients, parents will spread the word on how well you take care of their children. Like a great mechanic, every parent needs an excellent doctor, and they have no problem referring one to their friends. The more referrals, the more revenues. Super serving = happy parents = referrals = profit-sharing in their checks. The more profit-sharing, the more incentivized the team becomes.

However, profit-sharing can only go so far. The rest of the incentive comes when you consistently show your team that they are doing work that matters. They are doing something that is bigger than them. As they begin to understand, your team will work more from passion rather than just working a J.O.B. That’s when you will really start to see your business take off.

Question: How do you incentivize your team?

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Stop Talking!

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I happened to stop at a sandwich shop the other day. It’s a great chain with really good sandwiches. As I walked in, I quickly realized that I was the only customer there. But it was after lunch, so I bet it was hoppin’ a bit earlier.

There were three young folks working: two guys making sandwiches and one girl at the register. The guys seemed like they were having a good day. The girl just looked at me funny. I gave my order for three sandwiches, and the guys jumped right on it. (No, they weren’t all for me…just two of them. OK, just one.) Once I paid, I noticed that a couple of firemen and a young girl were in line behind me ready to order.

As they placed their orders, one of the guys had to run to the back to get something, so the girl took his place. It was then that she began to complain! She grumbled about something the company wasn’t doing, and it was loud enough for the customers to hear.

You should know that this is one of my pet peeves! I can’t stand when team members complain with customers around. Push aside the fact that it’s a severe gossip issue, no customer wants to hear it. And every time it happens, all I can think about is what’s wrong with their leadership.

There are many reasons for gossip, like lack of character, integrity, etc. Gossip is a cancer and needs to be IMMEDIATELY cut out! But there’s one main reason that I have found that team members gossip—the feeling that leadership won’t listen to what’s going on.

At EntreLeadership, I get the opportunity to talk with both leaders and team members. When the discussion of gossip comes up, I dig really deep to find the root cause of it. Almost every time, the team members feel like they are trying to correct problems and nobody will give them the time of day. When this happens, they feel the need to tell someone else in order to be validated. They need to know that someone else understands the problem and the necessity to fix it.

This situation can be resolved pretty easily in most cases—TALK TO YOUR TEAM! You have to get in there and find out what’s going on. There is no leadership error that I hate more than a leader who won’t actually talk to their INDIVIDUAL team members and get a pulse. I capitalized “individual” because I know too many leaders who get a pulse from team members about OTHER team members. It is ridiculous and is another post some time.

“Well, I don’t want to talk to them because they’re just always so cynical!” Seriously? That’s your answer? Great job leader! You know, I once heard Jim Collins say that a cynic is nothing more than a passionate person who is tired of being let down. Why don’t you try getting out of yourself and discover the inner champion of your team member? Who knows? You might be impressed. Worst case, you find out they do suck, and you get rid of them. Most likely, I believe, it won’t be the issue. You’ll find that you’re the problem. OUCH!

The title Stop Talking! is for the team member who’s complaining, especially with the public within earshot. If that’s you, force a time with your leader to get them to listen. If they suck, and they can’t give you the time, go someplace where you can be a champion! Don’t stay and become a cynic!

Question: What do you think causes team members to talk like this?

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How To Avoid Emotional Fatigue In Business

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Fatigue of any kind is highly likely for an entrepreneur who’s wearing many hats and trying to grow a business. Eleven years ago, Dave hired me to run a business. I basically lived at our old office then. I would work every day until 10 or 11 p.m., and all day Saturday and Sunday afternoons. I did everything I could to make that bottom line bigger.

I made sales calls all day long, while people were available, and switched to the administrative side of the business at night and on the weekends. My goal was to create enough revenue with my efforts, so I could hire a salesperson to replace me. That first hire gave me most of my nights and weekends back. After hiring two salespeople, I had enough revenue coming in to hire an admin position. This allowed me to focus more on the business instead of in the business.

Was I tired? Heck yeah! As I traveled around the country doing events, I would find myself getting really frustrated and…snippy. I could feel the emotional fatigue draining me by the end of a season.  Fortunately, I found a few things that would turn it around.

  • ZZZZZZ – The biggest culprit of emotional fatigue for me is being tired! No matter how good things are going, I get emotional if I’m tired. Sleep is an absolute must.
  • Cut it out! – I find that drinking caffeine to keep you going actually has a bad effect in the long run. It’s OK if you only need the boost for a short while, but most people burning the candle at both ends tend to drink caffeine all day or night. The consistent highs and lows definitely affect your emotions. Drink as much water as you can. Hydration is essential.
  • Road Trip!!! - I discovered long weekends. I made it a point at the end of every season to take at least one four-day weekend. I would either get away or find something to do around the house that was mindless. A quick trip to a resort/bed-and-breakfast/cabin recharged me enough to get back on track.
  • Turn ‘em off! – You have to have down time that doesn’t include phones and computers—at least not where work is concerned. In fact, there are many studies that suggest computers mess with your melatonin levels, leaving you tired and unable to rest well.
  • Run Forest! – Get out and exercise. You don’t have to run a half marathon…although it’s not a bad idea. The more you exercise, the more you release endorphins into your system. They are like a happy drug for your body. The more, the merrier. (It was unavoidable. :-) )

While most of these ideas seem time-consuming, especially when extra time is something no entrepreneur has, they are critical to your health and business. If you don’t take the time to prevent, you will take the time to fix. There’s no way around it. The truth is that the happier you are, the more productive you are.

Question: What do you do to avoid emotional fatigue?

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Difficult Relationships, 5 A.M. Grumps, and Those Irate Wal-Mart Customers

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Here is an inspiring guest post by Chadrick Black, author of The Greatest Harvest. You can follow him on Facebook. You can guest post, as well! Read how to here.

“We often talk to and treat others the way we talk to and treat ourselves.”

The above statement enters my mind each time I observe irritated customers degrading an employee at our local Wal-Mart. Some deliver on cue, eloquently expressed profanity and rage, demonstrating this is not the first time their opinion has been expressed in public. Others show sophistication comparable only with the sophistication involved in making Rice Krispies Treats.

And yet, some demonstrate that a temper tantrum in Wal-Mart is not just an issue I sometimes have with my three-year-old. Forty-year-olds still have them. And during these times, while other bystanders may feel uncomfortable, I strangely smile as my mind rewinds to 1999 and the origin of that opening statement.

When most people see their alarm clock turn 5 a.m., they are relieved that another hour or more of sleep is available before the day begins. But in 1999, 5 a.m. for me signified that, for the next eight hours, I would receive overdoses of criticism, profanity, tears, shouting, begging and depression. And that was just from the other counselors at the drug rehab center I worked at!

The clients, who were typically court-ordered, delivered the real challenges. (You know, the best part of waking up may be Folgers in your cup, but it sure isn’t a court-ordered drug addict in your office at 5 a.m.) Therefore, if you ever find yourself in a position of working drug rehab at that early, early morning hour, standing behind the person at Wal-Mart serenading the checkout girl with insults or just have difficult relationships in your life, my observations below are for you.

  • Observation Number One: Drug addicts, in general, are not morning people. (Nothing more needs to be said about this one.)
  • Observation Number Two:  If you think it is tough maintaining your composure with that guy at the office or your insensitive neighbor, try meeting a drug addict at 5 a.m. to discuss their “feelings.” (Their options were meeting me or prison, and they usually had to think about it.) I recollect being called names that reached so far into the depths of profanity that I had to look the words up to learn their meanings after the client left. He called me a what??? Oh, that’s what that means! Cool!
  • Observation Number Three: Everyone has the right to have a bad day, but the definition of “bad day” is subjective. You believe you are having one because you had a flat tire on your way to work. And then a client shares that their drug habit began as a way to cope with the death of their child from cancer, and today would have been that child’s sixth birthday. Trust me, you forget about your flat tire. Again, the definition of “bad day” is subjective, and it is important to keep your problems in perspective.
  • Observation Number Four: When you work in a drug rehab center that opens at 5 a.m., almost every customer is bringing the heat. How do you deal with it? You stop thinking about how the customer is treating you and start focusing on why they are treating you that way.  That is where the solution is found. And the best tool you have to extract this information is kindness. Plus, the old saying holds true: “Nothing is personal until you decide to make it personal.”

After a few months at the center, I concluded that the people who did not like me at 5 a.m. usually did not like themselves at 5 a.m. People who did not respect me at 5 a.m. did not respect themselves at 5 a.m. People who were rude to me at 5 a.m. were usually rude to themselves at 5 a.m.  But in the end, what I really learned is that the time of day had nothing to do with it.

I realized we often talk to and treat others the way we talk to and treat ourselves. And many times, the best resolution was simply being kind to the unkind, encouraging to the discouraged, and occasionally keeping my opinion to myself instead of firing it off recklessly like bullets from a six-shooter at the O.K. Corral.

As your personal, social, and professional relationships become more complex, it is important to remember that you may not know the silent battles faced by those around you, but God does. He sees the big picture. He sees what is driving someone’s anger, sadness and depression. He knows the root cause of why someone becomes irritated over small things.

So when you feel like a victim and solicit God to comfort you by shooting lightning bolts from the sky at your attacker’s head, imagine God responding: “If you think the way they are treating you is bad, you should see how they treat themselves! But I know about battles they’re fighting that you don’t. And that’s why I sent them across your path today; for you to share your love and compassion, not your criticism and opinion.”

I find it ironic that I made about eight dollars an hour at that job but ended up receiving a million-dollar lesson in learning how to summon courtesy; even when it seemed impossible. And those lessons learned during that time have impacted my present business and relationships more than my college degrees ever have.

I will leave you with an important quote I often relied upon during that particular point in my life—something I hope you will take with you as a tool to help deal with your difficult relationships, 5 a.m. drug addicts and those irate customers at Wal-Mart.

“Your life may be the only Bible some people read.”

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How To Influence Your Leadership

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This question stemmed from the EntreLeadership Podcast:

I’m an employee in a firm of 25 and want to share information about culture and values with my boss and managers. Other CPAs are urging me to just get out and start on my own. I don’t want to quit (yet) but want to influence this company from within. How do I start, and how will I know when I’m fighting a losing battle?

The key to influencing leadership is by example. It doesn’t matter how much you want to make a difference. If you’re not living the culture that you want to see, nobody’s going to care when you present it as an idea. You have to show every day that you believe in a better way. If you want a culture of no gossip, then you need to tell people who are gossiping to stop. People need to be able to anticipate what, why and how you are going to do something, so they know where you stand.

Once you are living the culture, then you can sit down with your leadership and express a desire to implement it in the workplace. Start by letting them know you would like to share a problem that you have a solution for. Otherwise, they may just view it as a complaint. Let them know how you believe the company can be stronger, more productive and more profitable if ________. (You fill in the blank.) And then, lay out exactly how it can be achieved.

If the leaders are strong enough that culture will work, they will be able to accept and move forward with your ideas. (Assuming you give great input.) If not, they will feel threatened, offended or even insulted. That’s the time you follow the advice of the other CPAs. :-)

Question: How would you convince your leaders to implement new culture?

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Fear Has Left The Building

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Here is an excellent guest post by Lance Cashion. Lance is a life and health insurance broker and financial advisor from Fort Worth, Texas, specializing in wealth preservation, liquidity retention and distribution. He attended EntreLeadership Master Series in Cancun, Mexico. You can follow him on Twitter or Facebook. You can guest post, as well! Read about it here.

“Fear has left the building” is what Dave Ramsey said about my situation to a room full of business leaders, pastors, entrepreneurs and their teams in Cancun. Moments before Dave made this pronouncement, I had an opportunity to privately speak with him. I compressed my life situation, business challenges, the reason I was in Cancun and what I had learned in the past five days into a few minutes.  Fortunately, Dave was able to make sense of my fragmented story.

You may be asking; “Fear of what?” Well, the fear of knowing that I must become a leader, but I did not know how. I feared failure. My family and career depended on me leading. No one could do it for me. In 2009, I found myself working in the family business, going nowhere, sinking into frustration and bitterness. I love my family, and I felt I was not serving to my full capacity.

I had two choices: grow out of my situation or die in it. That is what I was left with. I could allow the waves of life to toss me around until I succumbed to the currents, only to sink to the ocean’s depths. OR, I could pick a fixed point on the horizon and start swimming. I chose to start paddling.

Two years have passed since I came to the humbling conclusion that I needed help. Thanks to EntreLeadership, the seed of leadership has grown and flourished in many surprising ways. After several months of working within our business and not getting the results I desired, I decided to branch out and expand from our core market (individual health insurance). Had I not found the right coaching and encouragement, I would not have made this move.

I discovered how to recognize the root of fear and neutralize it.  I learned to transform a vision into a reality. Most importantly, I learned how to build a business and life around a central vision that is based on my calling.

In 2009, I was spinning my wheels and allowing fear to rule. In the last two years, I have launched a successful insurance firm and a financial advisory/wealth management firm. They are a representation of my vision in the marketplace, and they work in concert with each other. I have become the leader of two small groups at our church and have embraced my role as spiritual leader of our family.

My biggest lesson about leadership was learning to reach out to other leaders who are willing to share their secrets.

Decide to do something worthwhile and authentic. And then, figure out how to do it and rally the troops around the effort. Don’t allow the fear of failure to bring you down. Thomas Edison said, “I have not failed. I’ve just found 10,000 ways that won’t work.” Be determined. Years from now, you will look back on the day you began to lead without fear.

Question: How do you handle fear in your life?

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Don’t Let Someone Ruin Your Already-Bad Day

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I get the privilege of traveling around the country with the amazing Momentum team, speaking to pastors about the journey toward financial maturity for the body of Christ.

Recently, we journeyed to the college town of Columbia, Missouri. We had churches from around the country that came to find a better way of handling all of their finances. And as with every event, there’s an early morning Starbucks run to kick-start the road-weary team of roughly 10 people.

This particular morning, we stopped at a Starbucks that was essentially on the University of Missouri campus. As our group entered, I noticed that the staff was made up of college kids who looked like they had experienced a long weekend—and hadn’t had their coffee yet, either. That’s understandable for kids away for the first time in their lives living the college dream. It’s still unacceptable, though, from the stand point of customer service, but that’s a post for another day.

The cashier took the names with each order, and the barista began to call them out as he finished each drink. He called out Ken’s name and our team jokingly said, “Keeeeeeeeen!” He then called my name and the team said, “Chriiiiiiiiiiis!” By the time we did it with the third person, he stopped calling off the names.

It took a couple of orders for us to realize what had happened. As we were sitting there, we definitely noticed he decided to change his process. What a bummer. Not for us. It actually didn’t bother us at all. But you could see that he didn’t want to participate in our early morning joy.

The truth is: it was more of a way for us to get ramped up for an event that would take place in a little over an hour and go for two days solid. For him, somehow, he was allowing it to steal what little joy he had that morning. What a terrible way to start off his Monday.

You’ve heard it said a million different ways that happiness is a decision. Perhaps, we were annoying to a very tired college student on Monday morning. But trying to rob us of our joy by not calling out the names wasn’t going to make his day any better. And it actually didn’t take away from what we were doing at all. We stayed happy and launched an amazing event.

If you’re starting this day off and things aren’t going your way, do yourself a favor and SNAP OUT OF IT!!! Make a decision right now to have the best day you’ve had in a long time. Or, stay the way you are and be miserable. You decide.

Question: How do you deal with having a bad day?

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When To Hire Team Members

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Here’s a question Charlie sent in after listening to the EntreLeadership Podcast:

I’m a one-person e-commerce company working from home. I feel like I could keep two or three people busy full-time, but I don’t have enough extra money to hire even one person part-time.  I have so many ideas on how to expand my business, but I hardly have time to work on any of them after doing all of the other things that have to be done day-to-day.

Maybe it will be covered in the (EntreLeadership) book or in a future podcast, but I’d sure like to know how I can get my business to the next level.  I have considered outsourcing my marketing,  but don’t know if that’s a smarter move than hiring a “team member” even part-time.

 Any advice or feedback would be greatly appreciated!

This is the age-old question for a one-person shop. When do you add a team member, and what if you can’t afford it? While the answer seems as though it must address both questions at the same time, it technically does not. The reason? You can actually tackle the first question without having to worry about the second. This early in the game, I am ALWAYS going to try to hire a salesperson first. There are two reasons why:

  • Without sales, your business doesn’t exist—no matter how amazing your product is. Obviously, Charlie has sales. But to grow, he has to sell more. In the early stages of a business, you should be looking for ways to add salespeople way before you hire administrative people. Get the product out the door into someone’s hands, so you can put more money in the bank!
  • Salespeople pay for themselves. The great thing about a sales position is it’s not a fixed expense. If they don’t sell anything, they don’t get paid. Therefore, it shouldn’t cost you much more than a few hard costs, like phone/space/bad coffee, to have someone selling your product. If you hire admin, you have a fixed cost that you must pay—no matter how many sales occur.

Where you might have to answer both questions at the same time is if it will take some time for the salesperson to get the “pipeline” full. If so, then you might have to supplement them a little until the sales start rolling in. It doesn’t need to be a lot, just enough to put food on the table and keep a healthy sense of desperation, so the sales do roll in. Pay too much, and the feet go up on the desk.

This time period shouldn’t last longer than 90 days if possible. By then, a good salesperson should have money coming in the door. If not, you need to ask yourself:

  • Is this the right salesperson? Have they done everything possible to make a sale? Are they selling to the “why” of the potential purchasers? Have I done everything possible to set them up for success?
  • Is it my product? Is there something wrong with the delivery system? Is the product something that is not needed?

The great thing about Charlie’s product is it’s already selling, so this should be an easier process.

Question: When did you know it was time for your first hire?

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Leadership Question: Interviews And Core Values

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I believe it all starts with you defining your core values. If you don’t know what those are to begin with, you have no clue what you’re looking for in the interview. Without them, only talent really matters. If you want someone who doesn’t gossip, or someone who has integrity, then you have a place to start. I asked our HR Director Rick Perry to jump in and give a little insight on this question:

I try to determine if a person is a match by explaining specific examples of our culture and the “why” (core value) behind doing it that way. Simple process:

  • Explain specifically how our culture works and the core value behind the “how.” For example, if the person is applying for a sales position, we will expect you to leave the cave, kill something and drag it home; that takes focused intensity over time and that translates into making a lot of phone calls every day.
  • Using this example allows the person to respond to that type of cultural mindset; if they don’t take me somewhere that convinces me they have focus, intensity, never-give-up attitude, etc. in their DNA, then I don’t see a match for this specific core value.

I try to cover everything from passion, work ethics, integrity, character, etc. using this process.

Always remember that you can ask as many questions as you would like, it’s your interview. Have a list of what your core values in front of you and throw out situations that would require each value. See how they respond. The process will become easier the more you do it.

Question: How do you discover if someone is a fit for your company?

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