I hear from business owners all of the time that they want to make more money but I never hear one tell me that they want to be a better business owner. The irony is that’s exactly what it takes to have a more successful business – being a better owner!
It’s not easy, but it doesn’t have to be hard. This week I talk about the importance of measurement in your business.
Have a great week! ~Bob
We teach business owners how to be a better owners. Come see what it’s all about – March 22, 2017 is GrowthCLUB. A day long networking/education event to allow owners to focus ON their business. Leave with a 90 day strategy for growth with specific tasks.
When I ask that question to business owners and leaders I often get that “look” that infers I just asked a really dumb question. It is proven fact that all businesses are either growing or dying. There is no in-between. I find that sometimes we measure what is easy to calculate. As business owners or leaders of our business we can start leading our people down a slippery slope without intending to if all we seem to focus on was yesterday’s revenue performance.
Our words matter, and the words that we use to direct our people and teams matter even more. I spent a lot of years working in large businesses that really focused on revenue growth. There was so much that was assumed that would naturally happen as long as revenue was growing. Therefore, every day the amount of revenue generated at each business unit was measured and in most cases discussed. When I say “discussed”, it was generally the KPI (key performance indicator) that was the determining factor of success or failure with current leadership. It is the assumption of this belief that can often times get our businesses into trouble.
All businesses are different and certainly the large corporations that I worked for had multiple metrics they were measuring daily or weekly. They also had a great deal of human infrastructure and resources that allowed for performance to be measured. Many of you reading this do not have those resources and tend to rely on a few metrics to measure progress in your business.
If you are growing your revenues, then you may be reaching the goal you have set. That does not mean that you are growing your profits. Our focus in business should be to grow our profits first. Why do all of that work and make the investments necessary to sustain growth if we make less per revenue dollar than we did a year ago?
Do you have a profitability target? What is your percentage of gross or net profit compared to your revenue growth? If you are growing at 15% revenue growth, shouldn’t your profits grow at the same pace? Think about it, at what point will your growth in revenues create an unacceptable profit return on your investment?
Take some time to make sure you are measuring and comparing profit percentages to your revenue growth. There are so many actions you can take to improve your bottom line results but if you are lost in the day to day, you won’t see it until it starts to sting a little bit.
What is your most profitable product that you sell and is it the largest category of revenue? If not, why? I am not telling any of you not to concentrate on growing the revenues in your business, but I would caution you all to make sure that your team isn’t perceiving that as your expectation. Make sure you are specific about your dialog with them on what revenue categories you choose to grow because you have a complete and thorough understanding of how that will grow the profitability of your company.
I love our coaching chassis because it does focus on growing profits faster than the business grows its revenues. We can grow revenues at 46% growth rate with the proper strategies applied and executed with a 61% improvement in profits. That is a winning combination for any business!
If you’d like to schedule a call or find out more about what we can do for your business, please contact me. Our next event is GrowthCLUB on 3/22/201 in The Woodlands TX. This is an incredible day long workshop where business owners plan out their success for the next quarter in their business.
There are 4 levels to learning and the most dangerous place to be is when you don’t know what you don’t know. At this level, you are not aware of what you need to know so you aren’t motivated to learn. The next level is you know what you don’t know. You’ve been exposed to something that has opened your eyes and you realize you are lacking….something. The third level of education is when you know what you know. What this means is you have learned a lot and you are beginning to practice it. What seemed difficult or impossible has become actionable. If you continue learning you will graduate to the next level of learning which is where you don’t even know what all you know. You’ve become so educated and practiced that you hardly think about what you do in your business to make it operate efficiently.
Watch our marketing tip here:
We’re now offering digital marketing training to business owners via MarketingCLUB. If you need to learn how to generate leads and not waste marketing money and time, this program is worth checking out.
This week’s Business Taps talks about slowing down in order to speed up in your business, which is exactly what we do in our quarterly GrowthCLUB workshop on 9/21/2016. Enjoy this two minute video to help you in your business. Click for more info
In this week’s Business Tap I’d like to talk a little bit about the Olympic games where it’s all about the competition. Athletes gather from all across the globe to compete in order to see who is the best in the world; of course, the common goal being to win gold.
There’s three important stages for every athlete who participates and it does apply to the business world. It starts with a dream. In athletic competition it’s pretty easy to identify the goal, which is to win. When you talk about the Olympics, the ultimate dream is to win the gold medal. For every athlete, that’s where it always begins–you have to decide on what is your dream or your goal.
Stage two is where one has to consider what you are willing to do in order to achieve that goal. Are you willing to make the necessary sacrifices? It will be an uphill battle. It will take stamina and training to succeed. When competing on that high level of competition one doesn’t decide to compete one day and win gold the next. It’s an endurance race which requires preparation and training.
Finally, have you ever heard of any professional athlete competing without a coach? In order to compete, these athletes realize they need a coach. They need that person that’s going to pull the best talent out of them and create an even playing field to allow them to compete at that high level. When you watch the Olympics you see the athlete, but inevitably you see the athlete going to their coach and embracing or talking to their coach. They understand that they can’t just do it on their own.
Here’s a question for all of you this week? Do you have a specific goal in your business? Where are you going? What’s your gold medal? And, are you willing to sacrifice to achieve that goal? Too often we start off with that goal or dream in mind and then life happens, or business and daily transactions happen and we lose sight of the goal, and therefore we lose our motivation to get there. Building a business is an uphill battle and it’s not easy and it’s not going to happen overnight, but if you know where you’re going then you can make the sacrifices needed to get there
Finally, do you have a coach? Do you have someone that’s going to bring the best talents out of not only you, but of the team members in your organization and make you a world class business so that you’ll be the gold medal standard of your industry. Do you have these things? If not, spend some time thinking about it…restructure, reorganize, refocus and win gold in your business and in your industry.
If you need help with this, get a coach. Remember, if your business needs traction then get into action.
Learn to calculate the real value of your time in this week’s Business Tap #16 by Bob Keplinger.
The single highest producing activity that any business owner can perform is generating sales. Yet we may be shocked to learn how much money we throw away by performing menial tasks.
In this week’s Business Tap #16 video, I share how to calculate your monetary hourly value. We all have the same amount of time but as business owners, sometimes we waste time by “Stepping over dollars to pick up dimes.” We may perform tasks that we simply enjoy or, more times than not, perform menial tasks that we could (and should) delegate. We tell ourselves that it’s quicker just to do it ourselves, or that no one else can do it as well as we can. Here’s the truth. If we invest in training a team member then we are free to work on generating revenue. We need to learn to recognize when we are being drawn away from what should be our highest priority, generating sales.
After watching this video and crunching just a few numbers you will most likely see how much potential revenue you’ve lost. By knowing your numbers you can calculate the real value of your time, and it should help keep you on track to only perform activities that will perpetuate growth in your business.
Here’s the Formula :
For last month, divide your Average Dollar Sale, by the total number of hours worked. The answer is your hourly value.
To calculate your Average Dollar Sale, add up all of your earned transactions during last month to get a Total dollar amount. Divide that Total dollar amount by the total number of transactions.
The founder of ActionCOACH, Brad Sugars, says “Saving yourself a wage can cost you a fortune.” You may be surprised to find out that by simply eliminating menial tasks from your day, you are able to increase sales. Now that you have a number, you can develop goals and KPI’s (key performance indicators) that you can measure in order to increase your sales. Delegate or outsource those tasks that are not making you money.
What would you do with more revenue in your business? Give yourself a raise? Take the family on vacation? Hire more team members? Exactly, choices are good to have. Stay aware of where you are spending your time to stay on track.
About Bob Keplinger:
Bob Keplinger is passionate about leadership and how understanding the importance of this responsibility as it impacts both the personal and professional aspects of our everyday life. He understands that we are all working to maintain the appropriate balance between the responsibilities to our internal and external customers along with having a fulfilling lifestyle while away from work.
Together, you and Bob Keplinger will accomplish new heights and achieve greater success in your business; GUARANTEED!
I am a member of the baby boomer generation. Admittedly I am on the tail end of this generational grouping but we did not grow up with the kind of technology that we have now. I have found that there is an interesting phenomenon going on with business owners that is crossing over the baby boomer, generation x and y categories. This phenomenon is that they have embraced or are embracing technology through just simply creating accounts or purchasing a website. As a business coach, I absolutely love seeing people make decisions to create positive change and even learning the how to when it comes to social media and website engagement. Interestingly enough though, just simply establishing a presence is only the first step in the process. It is great that the electronic world can find you, see who your friends are or even see what your interests are.
If you own a business, what message are you sending and who are you trying to appeal to? It is important to understand that the fundamentals of marketing has not changed. We must market our business using A-I-D-A. (Attention, Interest, Desire & Action). Being present and discoverable is one thing but it does not do you much good unless you get AIDA. Whether you are a small business marketing to prospects or a large corporation, this fundamental applies.
For some of you the internet or digital marketing landscape seems a bit overwhelming and intimidating. The pace of change in this digital revolution is hard to keep up with, even for those of us who have some acceptable base of knowledge and education. I would like to challenge everyone who is reading this blog to stop and see if you are driving your marketing or is your marketing driving you. Many business owners are guilty of allowing their business to drive them and therefore the success, or lack of it, instead of taking charge of what happens in their business. Since this is so prevalent it makes sense that when it comes to how business owners are trying to market in today’s digital age the same behaviors are trickling down to the manner in which they market their business.
Here are 3 questions that I would like for you to consider. If you can answer affirmatively to each of these then you are well on your way to creating the success (leads and engagement) that digital marketing can provide.
How much time have you invested in gaining the knowledge that you need to possess to understand how to be relevant in the digital environment? This should be the first step but is often not taken until something has not worked (and a good deal of dollars wasted). Google is the leader in the digital marketplace and they place an ultimate value of “relevance” for your marketing compared to everyone else. Investing some time in educating yourself how to be relevant is critical.
How much time have you invested in actually creating a strategy for your marketing? I mentioned AIDA earlier. What about your target market(s)? Doesn’t it make sense that will need a different message for different target markets as they have different needs? Which market are you going to penetrate first and what will be your strategy to touch them enough to gain their trust and interest? Marketing without a strategy is the equivalent to gambling, the odds of guessing a winning campaign are against you.
How are you going to implement or execute your marketing strategy? Are you going to do this by yourself and if so, how many hours per week do you have allocated to execute your marketing? Remember, living in the digital age is a very public activity. Visitors to your social media and digital media sites can easily ascertain if you are consistent or not. When I visit a website that has not been updated in over 2 years, it causes me to exit the site quickly. If you are going to market your business digitally then you must make it a regular, consistent part of your business activities. If you do not have the time then delegate the strategy to someone who does.
The bottom line is that all things we do in our business must be strategic. Isn’t it interesting that you may be the best Doctor, Dentist, CPA, Roofer, Landscaper, etc. by investing a great deal of time educating yourself on how to deliver your service or product but when it comes to marketing yourself you continue to allow yourself to remain undereducated in how to actually reach those who need your services!
I realize that this message is direct. After all I am your business coach. The message may sting a little but when you achieve your goals the pain or discomfort of planning is always forgotten with success!
It is amazing how many different answers that I get when I ask this question. In most every situation the answer is Yes, I am. When I ask to see those goals then there is usually more to the story. They are not written or they are not updated in most cases. As the speed of our world has increased through technological improvements like smart phones and tablets, I believe we have lost touch with some of the simple, basic things that allow us to prosper. You do not own a Busyness! You should own a Business. Our definition of a Business is a successful, profitable enterprise that works without YOU!
So what does this have to do with goals? Quite simply, without written goals we are left to perform based on what the world hands us daily instead of having a tool that keeps us focused on what is really important in our business. Good goals allow us to keep ourselves and our teams accountable.
Some years ago, a study of Harvard Business School graduates showed that upon graduation only 3% had written goals, 13% had thought of some goals and the balance were just thrilled to be out of school. Ten years later the 13% with non-written goals were making TWICE as much money as the 84% without any goals at all, while the 3% with written goals were making TEN TIMES what the other 97% were making. So if it is so compelling to have written goals, why aren’t we all doing it?
We do not have to re-invent the wheel when it comes to our business. What we have to do is to change our mindset about our goals. Here are some tips on how to get started.
Decide what your business will look like in 5 or 10 years. How much revenue will it be producing, how many jobs will it have created and how many locations will it have? How many hours will you be working?
Determine where you need to be with your business in 1 year to achieve the long term goals you previously established. We know you cannot do it alone so who do you need in your business. What revenue levels will you need to hit quarterly to achieve your annual goal.
Complete quarterly goals (that can be measured weekly). Plan some time each week to work “On” your business instead of just “in” it. I host a GrowthCLUB planning day for my clients each quarter in which we all take the day to plan our goals for the following quarter. We do this because it has been proven over and over again that having a written plan is where true success starts!
Right now would be a great time to develop a strong plan for your business with clear goals and action items that you can share with others for added accountability. Make sure to include clear milestones and chip away at each goal a little bit every day. If you do this consistently, you may soon be making TEN TIMES more than your competition.
I want to talk about the importance of facing your fear. We all possess this human emotion. What separates us, and our businesses, is what we decide to do with that emotion. The acronym that we use for FEAR is False Expectations Appearing Real. When you think about it, the fears we focus on usually do not present any real risk to our business. Where we get onto dangerous ground is when we let our fear cause us to postpone important decisions or even worse causes us to spend time and money trying to fix a challenge that does not really exist. We must understand that the things we fear happening are usually a result of something else. Instead of focusing on the result of that fear, focus on the real issues that are causing you to feel that way. I would like to address a few common failures that fear can create in our businesses.
“I cannot find good people to work in my business because no one can do what I do and how I do it.” This truly a fear based statement. What’s left for you to do if someone can actually perform the work you do? This means you will have to learn something new and that makes us uncomfortable. When you decide to quit allowing yourself to be a victim of this then you will change your expectation level. A replacement will be found and it will be the first step for you to become a business owner instead of a job owner.
“I just need more cash flow to be able to grow my business or hire the right team.” You are right; you do need revenues in order to grow. What are you doing to increase revenues or cash flow? More specifically, what are you doing differently to reach the new cash flow goal? If you continue to do the same things and hope that your bank account is going to suddenly increase then click here and listen to my radio show archive on business insanity.
“I have a plan, I am just waiting to implement it as soon as I get everything in the plan worked out.” The only perfect plan is one that gets started and gets measured. Waiting to make a decision on what to do next is based on fear. In our society we call this procrastination. Not sure what to do next? Order a book, research the topic or get some advice from a mentor. You do not have to possess all the answers and the sooner you realize that, the faster you will get results.
You are a business owner. We must evaluate our risk with any decision we make. The next step is to invest our time on ascertaining the amount of reward to be gained with that risk. Once we quantify what that the reward is, make a plan to achieve that. We only have a certain amount of hours in each day. You can choose to focus on the risk you are taking each day and how to manage those emotions or you can focus on what you are doing to achieve your goal. Write your fears down and then intentionally decide what your next step has to be for each of them. I work with business owners each week educating and providing them with the tools that create great rewards. For many of you, facing your fears may mean that you realize it is okay to invest in a coach to provide the direction to get you on the path to wealth. Often times, admitting we need help is the fear we must address first.