Life Would Be Easy... If It Weren't for DIFFICULT People

by Connie Podesta Go on, it's okay. Admit it! We all know that life would be a whole lot easier if we didn't have to deal with those few (or many) difficult people we just can't seem to avoid. I think you know who I'm talking about. What's not okay is to give up something you need, want or deserve because of their rude, obnoxious, sullen, and apathetic habits. Yes, I do mean "habits". If you're tired of playing their game, take charge of your life by taking a good look at yourself! You cannot change them, but you can change what you do and how you act around them - and ultimately how they affect your life. The Good News... and the Bad News Difficult people have been trained and taught to act the way they do since they were children. In fact, they have been rewarded for their negative behavior throughout their entire lives. Difficult behavior worked for them as children - and more important, it continues to work for them as adults. I believe that most of us are born with the capacity and desire to love and be loved. As we grow, we learn to respond to verbal and visual cues and we begin to adjust our behavior to obtain the positive responses we want. Children who can manipulate their parents soon learn to enjoy feelings of power and control over others. The game of life is basically about "getting our needs met." And you certainly do play a part! We reward difficult people by giving in to their needs. Think about it. If someone's behavior is consistently inappropriate or unacceptable toward you, ask yourself if in any way you are rewarding their negative behavior. For example, Helen gets upset every time Harry mentions that he wants to play golf. Rather than face a 2-hour lecture he usually finds it easier to just stay home. One day, however, he gets angry and accuses her of being a nag who never understands him. Instead of answering back, Helen gets her feelings hurt, stomps off and gives him the silent treatment. Harry takes advantage of her "cold shoulder" and plays a few holes of golf! Jennifer wins the same "reward" at her new school. Few of the kids would talk to her and some were even making fun of her. She asked to stay in during recess, but the teacher said no. Eventually she gets into a fight and pushes another girl down. The teacher tells Jennifer that fighting is against the rules and she will have to stay inside. What did Jennifer learn? Ask the teacher respectfully and you will not get what you want. Push someone and you can avoid recess! We have three choices each time we respond to another person: 1. Be positive; 2. Be negative; and 3. Avoid or ignore them. Difficult people see avoidance as a positive response. When we ignore unacceptable, inappropriate behavior, it will usually happen again because our avoidance tells the difficult person that we are willing to accept their behavior. What do they really want? Difficult people want to do their own thing, in their own time, in their own way, without interference. In addition, they expect everyone around them to cooperate - even work extra hard - to ensure that this happens. And they do not see anything unreasonable about these expectations. There is little in their experience to signal them that their actions are inappropriate. They also have little (if any) desire or motivation to change their habits. What can I do about it? We learn a lot from difficult people. We tolerate their behavior and attitudes as "part of life." We hold back our feelings and swallow our words. We make concessions even when we do not receive anything in return. We compromise even when it is 90/10 instead of 50/50. We may even question our own ability to relate and communicate with others reasoning that "Maybe it's me." Since we cannot change difficult people, we can only change ourselves and our reactions to their behavior. They need our cooperation and our permission to intimidate, control and repeatedly manipulate us to get their way. In most relationships, we are treated exactly the way we allow ourselves to be treated. The good news is that because we are partly responsible there is something we can do to create and maintain relationships where we are treated respectfully. That's great news! By focusing on ourselves and the changes we can make in our own behaviors and reactions, we can begin to take control of how other people treat us - today!

COMMITMENT

WHAT IS COMMITMENT? A great business leader once said: "...the basic philosophy, spirit, and drive of an organization have far more to do with its relative achievements than do technological or economic resources, organizational structure, innovation, and timing. All these things weigh heavily in success. But they are, I think, transcended by how strongly the people in the organization believe in its basic precepts and how faithfully they carry them out." (from Thomas J. Watson, Jr., A Business and its Beliefs - The ideas that helped build IBM). As true as this is for the success of a corporation, it is even more so for the individual. The most important single factor in individual success is COMMITMENT. Commitment ignites action. To commit is to pledge yourself to a certain purpose or line of conduct. It also means practicing your beliefs consistently. There are, therefore, two fundamental conditions for commitment. The first is having a sound set of beliefs. There is an old saying that goes, "Stand for something or you'll fall for anything." The second is faithful adherence to those beliefs with your behavior. Possibly the best description of commitment is "persistence with a purpose". Many successful business people are hailed as visionary leaders. On careful inspection they are found to be individuals who hold firmly to a simple set of commitments, usually grounded in beliefs such as "the best product money can buy", or the highest possible customer service". It is the strength of these commitments, religiously followed, that led to their business success. WHERE TO PRACTICE It appears that effective leaders hold dearly to a half dozen commitments. The first, and most basic, of these is a commitment to a set of values, principles or beliefs. These underlying principles define both the organization's uniqueness and the fundamental direction in which it wants to head. This first commitment leads to a common vision and purpose within the organization. The second commitment is to oneself, to how one acts as a leader. An effective leader possesses a strong sense of personal integrity and self confidence. This leads to a willingness to share the credit for success. Another side to this commitment is a deliberate emphasis on continual self-improvement. The combination of a strong, positive commitment to self and to a set of principles serve as a foundation to effectively maintain the remaining four commitments. These commitments are to: customers, results, employees, and the organization. Everyone has a customer and is a customer to someone else. Customers are usually thought of as external to the organization who needs your product or service. A question worth asking is, "How much are others willing to pay for my work?" The price your customers are willing to pay measures its values in their eyes. Besides serving customers, all organizations target specific results. Given the large number of demands placed on all of us, it is important to concentrate on achieving the most important goals and objectives. Commitment to results is largely determined by how clear priorities are, what actions get rewarded, and what risks are being taken to improve intended results. The next commitment is to the people. The quality of the organization's commitment to customers and results is largely based upon the quality of its commitment to people. The simple reason for this is that it is these people who serve the customer and achieve results. How are people treated in the organization? Commitment to people is largely the product of treating people with respect, challenging them, and giving them effective feedback on how they are doing. The final leadership commitment is to the larger organization. Other departments, higher management, the organization's overall strategy & mission are important. Communication is the key with this commitment. How people talk to, and about, each other greatly affects the quality of cooperation. How open are the channels of communication up, down, and across? Can management be challenged? Will people support management decisions and changes? Balancing all six commitments is the key to well directed leadership. When management supports its employees, they will be able and willing to achieve intended results, When these results support customer needs and expectations, customers will support the organization with their business. A strong and healthy organization can then continue to show commitment to its people. The glue that holds this process together is the values and leaders in the organization. HOW TO PRACTICE COMMITMENT Effectively demonstrating commitment to others, to the organization's basic principles, and to oneself is never easy. The truth is, demonstrating commitment is hard work. Wavering commitment is usually seen as no commitment at all. The only way to achieve a reputation for commitment is through determination and persistence. Genuine commitment stands the test of time. Day to day, commitment is demonstrated by a combination of two actions. The first action is called supporting. Genuine support develops a commitment in the minds and hearts of others. This is accomplished by focusing on what is important and leading by example. It is not uncommon for people to be either confused as to what is important, or lose sight of it over time. Supporting means concentrating on what adds value, spotlighting what's working, and rewarding others who are focusing on what is important and leading by example. A crucial aspect of true support is standing up to those who would undermine commitment, those whose words or actions show disrespect. The second action underlying commitment is called improving. Improving stretches our commitment to an even higher level. Commitment means a willingness to look for a better way and learn from the process. It focuses on eliminating complacency, confronting what is not working, and providing incentives for improvement. The spirit of improving is rooted in challenging current expectation and ultimately taking the risk to make changes. These changes are based more on an optimism in the future than dissatisfaction in the past. It is embodied in the reply of car maker Professor Porsche, who, when asked which was his favourite model in the long line of Porsche automobiles replied: "I haven't built it yet!" It is the combination of both supporting and improving behaviours that makes up the practice of commitment. Separately neither action is capable of sustaining commitment. Promoting alone can come across as a shallow and pollyannish. Continuous improvement can be seen as "good is never good enough". Together they provide a needed balance. Both are essential to commitment. WHEN IT IS MOST IMPORTANT Commitment is most difficult and most readily proven during tough times. How someone weathers the storms most clearly demonstrates their basic beliefs. In antiquity, Epicurus stated: "...a captain earns his reputation during the storms." When your competition scores big against you, when the money dries up, or when the glamour of success wears off, this is when it is easiest to compromise your commitments. The real test comes when you can hold the line against the easy route of compromise. Fortunately, paying the price that commitment commands has payoffs worth the cost - a reputation for integrity and, even more important, the commitment of others in return. Commitment is a two-way street. You only get it if you are willing to give it.

Brad Sugars's "Instant Repeat Business."

It is a known fact that it costs six times more to gain a new customer. In such a scenario, it becomes critical to keep your customers coming back so you get repeat business - over and over again. Here are 3 Steps to Keeping Your Clients Longer: 1- Welcome Your Customers. People are more inclined to engage with a company that makes them feel important and appreciated. Customers can tell whether you're happy to see them through subtle gestures and signals - your tone of voice, your expressions, your posture, the way you are dressed - all these things send potent, often powerful messages to them. 2- Reward Loyalty. If you can retain your customers, your revenues will increase. As discussed earlier, research indicates that it costs six times more to get a new customer versus serving an old one. Therefore, it obviously pays to retain your customers. So the question is, Are you keeping your current clients engaged, involved and interested in returning to you for your products and services?" It does not cost much or take much effort to let someone know you appreciate their patronage and are ready to reward them for coming back to you. 3- Reduce the Risk Factor for them by Providing Superlative Service: Each time a client decides to seek a new business, they are taking a risk in terms of determining whether they will have a good experience. If you can provide them with a good experience, you've greatly enhanced their satisfaction level and reduced their need or desire to go to a newer business where the quality of service or experience is unknown. This will make engaging with you less risky and help you retain your current customers. Keep an open ear and learn to look for any signs that your customers aren't happy with the product or service you are providing customer satisfaction surveys can play an important role here. In the long run, a few simple steps, intended to keep you focused on the needs and wants of your current clients, will be far more cost-effective then spending all that time, energy and money in looking for new clients.

Don't forget your customers!

I just had a recent client who started coaching with me. He was eager to grow his business, and I was able to get him to focus like a laser beam on revenue and client growth. Month after month he applied all of our marketing and business development tools, and generated significant growth and profit. He was swimming in cash and loving every second of it. Then one day he called in a panic. “I’m starting to lose clients, I don’t know what’s going on.” Quickly I had him survey his customers, only to discover that many of them were dissatisfied with his services, and bailing out of their agreements. There were major quality issues that he had never discovered, and his team was so focused on keeping up with the new business that they were ignoring any sort of product quality. What he had built with a flourish came crashing down in a heap of cancelations. As you grow your business, it is easy for you as a business owner to get seduced by the lure of easy money as you bring new customers into your business. However, real success and long-term profits are all about ensuring that your customers are not just satisfied, but delighted with your product or service, and continue doing business with you for a life time. Take a look at where your focus is in your business. If you spend all of your time marketing and selling, and no time ensuring excellent delivery of your services, it’s time to dial back and zero in on creating raving fans out of your current customers. By doing this, you will ensure a base of steady revenue that will allow you to reinvest back into sales and marketing in order to then grow your business in a safe and secure fashion. Remember, real success is not about explosive growth, but rather steady growth that happens for a lifetime.

Leadership

Things to Ponder My mentor said, "Let's go do it," not "You go do it." How powerful when someone says, "Let's"! Leaders must understand that some people will inevitably sell out to the evil side. Don't waste your time wondering why; spend your time discovering who. When dealing with people, I generally take the obvious approach. When someone says, "This always happens to me and that always happens to me. Why do these things always happen to me?" I simply say, "Beats me. I don't know. All I know is that those kinds of things seem to happen to people like you." We could all use a little coaching. When you're playing the game, it's hard to think of everything. A good objective of leadership is to help those who are doing poorly to do well and to help those who are doing well to do even better. As a leader you should always start with where people are before you try to take them to where you want them to go.

Don't Send Your Ducks to Eagle School

by Jim Rohn The first rule of management is this: don’t send your ducks to eagle school. Why? Because it won’t work. Good people are found, not changed. They can change themselves, but you can’t change them. If you want good people, you have to find them. If you want motivated people, you have to find them, not motivate them. I picked up a magazine not long ago in New York that had a full-page ad in it for a hotel chain. The first line of the ad read, “We do not teach our people to be nice.” Now that got my attention. The second line said, “We hire nice people.” I thought, "what a clever shortcut!” Motivation is a mystery. Why are some people motivated and some are not? Why does one salesperson see his first prospect at seven in the morning while the other sees his first prospect at eleven in the morning? Why would one start at seven and the other start at eleven? I don’t know. Call it “mysteries of the mind.” I give lectures to a thousand people at a time. One walks out and says, ‘I’m going to change my life.” Another walks out with a yawn and says, “I’ve heard all this stuff before.” Why is that? The wealthy man says to a thousand people, “I read this book, and it started me on the road to wealth.” Guess how many of the thousand go out and get the book? Answer: very few. Isn’t that incredible? Why wouldn’t everyone go get the book? Mysteries of the mind… To one person, you have to say, “You’d better slow down. You can’t work that many hours, do that many things, go, go, go. You’re going to have a heart attack and die.” And to another person, you have to say, “When are you going to get off the couch?” What is the difference? Why wouldn’t everyone strive to be wealthy and happy? Chalk it up to mysteries of the mind and don’t waste your time trying to turn ducks into eagles. Hire people who already have the motivation and drive to be eagles and then just let them soar.

Closing More Sales - Now!

A critical success factor for all businesses is how good they are at selling. Every business is selling something, a product and/or a service, but very few are actually trained in the art of selling. Here are seven keys to selling to help you on the track to greater business success: 1. Ask More Questions: Questions are the answers in sales. Too many sales people tell their customers the features and benefits of their product or service but never take the time to find out which of the benefits the customer is actually interested in. So, ask them to tell you what they want. 2. Set Daily Targets: A common theme in sales- chase enough customers in the hope that one or more will buy. In reality this leads to sales people only selling to the early adopters or price shoppers who would probably buy from anyone. However by keeping track of how many customers buy on average from a given number of leads and then introducing strategies to convert a higher percentage will ensure your sales team learn how to improve their results. Set daily targets and assess your performance against these targets. 3. Use Sales Scripts: No one likes to hear someone read from a script but customers do expect us to be consistent. So how do you ensure all your interactions with prospects are consistent and that you deal with objections in a professional way? By writing down what it is you say in any given situation and by training your team to use the same questions and language you can bring a lot more productivity to your sales process. 4. Offer / Guarantee: Why should someone buy from you and not a competitor who can provide the same product or service at a lower price? What is it that you offer them or can guarantee them that will differentiate you from your competition? Your offer must generate excitement to get prospects to make a decision to buy now. 5. Ask For The Sale: One of the biggest common failings in sales is not asking the prospect to buy. A fear of rejection, that the sale will be lost, prevents many sales people from actually asking the final question. Just do it and learn from those that say no so you can improve your conversion rate over time. 6. Learning: To be successful in sales there absolutely must be a habit of learning. Learn from other sales experts, learn from books, learn from your best customers and learn from past experience. Both your good and bad experiences can be a huge help in improving your sales success. You must record these experiences and build your knowledge over time. Write it down so you do not keep repeating the same mistakes over and over again. 7. Testimonials: We all need to be reminded of what we are doing right and why our best customers love dealing with us. Sometimes we focus too much on what is going wrong rather than what we are doing right. Focus on the good stuff and we will do more of it! Get your customers to write down their testimonials so you can use it in your marketing and attract even more great customers. Question: When is the best time to make a sale? Answer: Just after you made your last one. Ever hear stories of football players who stop scoring goals and it seems they will never score again? Well generally they change something about themselves; their attitude or a superstition or a habit; and then suddenly they are back in scoring form again and they keep scoring.

Selling to price focused shoppers

The perception in the market place is that people are shopping based on price alone. The only reason your customer asks for the price upfront, is because, that is what we, as business owners, have trained them to do. More often than not, people go into a business not really knowing what model, style, color or features they are looking for and purely ask for the price? At this point should the salesperson come back with the direct response, “That is $29.95” or should they ask the customer some questions about what it is they are looking to use the product/service for? This can be further explained by using a simple example of a kettle. Now in most people’s eyes a kettle is a kettle, but it can have many different features and offer many different benefits. So what if the sales person simply tells the customer, “Just so I can help you better, is it okay if I ask you a couple of questions about the kettle you are looking for?” This is a better response than simply telling the customer how much the kettle costs. Most certainly, the customer would give an affirmative response as he would like to find the kettle that best suits their needs. The sales person may then ask questions like: “Are you looking to replace an existing kettle or is it a gift for someone?” “Do you regularly use your kettle or is it rarely used?” “Have you seen the cordless options that are available?” “Are you looking for something to match your kitchen?” “So what color are you looking for?” “Kettles come in different cup capacity; do you require 10-cup capacity or is five a better size for you?” From these questions, the customer gets the idea that the sales person is genuinely interested in their needs, and that the salesperson is able to offer options in the most suitable kettles based on his needs. The price, is therefore, negated. It is just a matter of now asking the customer to buy the kettle and close the sale. A good salesperson would then ask, “Well, based on what we have just spoken about, there are two options to choose from, model x and model y; which one suits you best?” Finally, he can ask, “Great, would you like to pay for that by cash or on a credit card. This example was based on a kettle- a relatively small dollar item. How does this apply to other businesses? This process works equally well on cars, retail, houses, furniture, service-based businesses and any other product there is, including funeral homes. Every business owner needs to work out what his customers are actually looking for when they ask for the price, and what’s most important to them in their buying decision.

“Five ways to start the new financial year with a bang”

The weekend will see the end of the 2011-12 financial year, one that has seen start-ups under pressure from continued consumer caution and a tricky funding environment, with insolvency figures creeping steadily upwards. However, the picture is not all doom and gloom. Australia’s economic fundamentals are strong and there is – carbon tax aside – some government help on hand for entrepreneurs. So how can you get off to a flying start in 2012-13? Here are five top tips: 1. Tick off last-minute tax time housekeeping We may be in the death throes of financial year 2011-12, but that doesn’t mean you can’t sneak in a bit of last-minute tax time activity to reduce your liabilities. There are three key areas you really should’ve thought of by now: bonuses and directors’ fees, superannuation, and old stock. However, if you act quickly, you might be able to make some headway even if you’ve left it to the last minute. Tax expert Greg Hayes, of Hayes Knight, explains: “If you are planning to pay bonuses or directors’ fees, make sure that these are declared before June 30.” “They don’t have to be paid before June 30 to take the tax deduction, but the company does need to be legally committed.” “This is normally achieved by a director’s resolution approving the bonus or fee. Do this and the company takes the deduction into this year. The recipient does not need to declare it on their personal return until the year of actual receipt.” On super, Hayes says: “Make sure that you make your superannuation payments before June 30. The funds need to be receipted by the super fund to be eligible for current-year deduction.” “Where you have SGC payments for staff for the June quarter, if you can pay these before June 30 you will take a current-year tax deduction.” Meanwhile, any damaged or old stock that you have hanging around your business needs to be scrapped and written off – ASAP. “The written off amount forms an immediate tax deduction,” says Hayes. “Also start to review your stock in terms of the appropriate valuation method.” “While this is often cost price, it doesn’t have to be. You can value stock at the lower end of cost, replacement or net market value.” “You may have stock that you don’t want to scrap but may be worth less than its cost price. The market value approach will give you the tax saving into this year.” 2. Re-think your business’ structure If you are yet to launch, the new financial year is a good time to ponder the business structure that you intend to use for your start-up. Your decision to be a company, partnership, trust or sole trader will have significant tax and other implications that need to be weighed carefully. Business advisory expert Marc Peskett, of MPR Group, says that you need to think about how your business will operate and then consult your accountant about: • How you will be taxed under the structure during the life of the business, as the business earns income and then pays or distributes it to directors or beneficiaries? • How you can use the structure or a group of structures to meet your personal wealth needs and optimise your personal tax position? • How will you be taxed when you come to sell the business? If you don’t have the right structure, you could find yourself paying a lot more tax than you need to. “Your structure can also affect which tax concessions, incentives and grants you can take advantage of as well,” says Peskett. “There are several tax concessions available to small businesses, including the R&D Tax Concession, Small Business Entity Regime and Small Business Capital Gains Tax Concession.” “Each provide cash back to the business when it undertakes specific activities or at certain milestones in the life of the business, such as at sale.” Take your time, do a bit of research and work out which business structure is best for you. 3. Get investing The Federal Government has beefed up the instant asset write-off system for small businesses, with the aim of relieving the pressure on entrepreneurs who wish to invest and grow their enterprises. The budget measures, which will officially come into force on Sunday, will increase the small business instant asset write-off threshold from the current limit of $1,000 to $6,500. The measures will apply to businesses with annual turnover of less than $2 million, allowing them to write off depreciating assets costing less than $6,500 in the income year in which they start to use the asset or have it installed ready for use for a taxable purpose during or before that income year. If you choose to use the capital allowance provisions, you’ll also be able to claim an immediate deduction for additions to existing assets if the assets and the new piece of equipment both cost less than $6,500. So, for example, if you’re spending money on new in-house software for $4,000, as a depreciating asset, you can claim a $4,000 deduction for the 2012-13 financial year. While this change is unlikely to radically alter your investment intentions, it should certainly give you food for thought. Are there any systems or items of equipment that need to be replaced? If so, can you claim a deduction? If so, this could well be the ideal time to start investing sensibly in your start-up. 4. Take advantage of changes to workplace laws The new financial year will see a raft of changes to the ability of small businesses to employ and pay their staff. The minimum wage is going up from Sunday by 2.9% to $606.50, or $15.96 per hour, while unfair dismissal laws are changing too – the high income threshold increases from July 1 from the current level of $118,100 to $123,000, essentially meaning that employees who earn more than the high income threshold, and who aren’t covered by an award, can’t make an unfair dismissal claim. But perhaps the most eye-catching change will be Paid Parental Leave – allowing fathers and other partners earning under $150,000 a year to take two weeks’ leave at minimum wage levels, on top of existing payments. If you are yet to hire, you should be nimble enough to change tack and position yourself as a parent-friendly employer. Tout your flexibility to potential staff and make it clear that you want people who are committed to an innovative, up-and-coming business (that’s you) for the long haul. 5. Don’t let tax become an obsession The end of the financial year places an onus on tax – what you need to pay, how you can reduce that amount and how much you can get back. However, your business’ strategy and business plan shouldn’t be based upon your tax liability. Don’t become so focused on tax in the year ahead that you end up spending money that does nothing to drive sales and growth. “Tax should be a secondary consideration when balancing the tax management approach against the commercial needs of the business, i.e. don’t spend a $1 just to save 30c in tax,” advises Peskett. “A number of tax initiatives have been implemented for small businesses in the last few years that can make it tempting for investment dollars to be directed where costs may be recouped via deductions or write-offs.” Peskett suggests that you should ask yourself a few key questions when you’re about to invest in your business: • What areas of the business are the priorities for investment and growth? • How will this investment help generate leads or new potential clients? • How will it drive greater efficiency? • What other substantial benefit or return will it bring to the business? samthecoach.com

8 Rules For Good Customer Service

Good Customer Service Made Simple

Good customer service is the lifeblood of any business. You can offer promotions and slash prices to bring in as many new customers as you want, but unless you can get some of those customers to come back, your business won't be profitable for long.

Good customer service is all about bringing customers back. And about sending them away happy - happy enough to pass positive feedback about your business along to others, who may then try the product or service you offer for themselves and in their turn become repeat customers.

If you're a good salesperson, you can sell anything to anyone once. But it will be your approach to customer service that determines whether or not you’ll ever be able to sell that person anything else. The essence of good customer service is forming a relationship with customers – a relationship that that individual customer feels that he would like to pursue.
How do you go about forming such a relationship? By remembering the one true secret of good customer service and acting accordingly; "You will be judged by what you do, not what you say."
I know this verges on the kind of statement that's often seen on a sampler, but providing good customer service IS a simple thing. If you truly want to have good customer service, all you have to do is ensure that your business consistently does these things:

1) Answer your phone.
Get call forwarding. Or an answering service. Hire staff if you need to. But make sure that someone is picking up the phone when someone calls your business. (Notice I say "someone". People who call want to talk to a live person, not a fake "recorded robot".)

2) Don't make promises unless you will keep them.
Not plan to keep them. Will keep them. Reliability is one of the keys to any good relationship, and good customer service is no exception. If you say, “Your new bedroom furniture will be delivered on Tuesday”, make sure it is delivered on Tuesday. Otherwise, don't say it. The same rule applies to client appointments, deadlines, etc.. Think before you give any promise - because nothing annoys customers more than a broken one.

3) Listen to your customers.
Is there anything more exasperating than telling someone what you want or what
your problem is and then discovering that that person hasn't been paying attention
and needs to have it explained again? From a customer's point of view, I
doubt it. Can the sales pitches and the product babble. Let your customer talk
and show him that you are listening by making the appropriate responses, such
as suggesting how to solve the problem.

4) Deal with complaints.
No one likes hearing complaints, and many of us have developed a reflex shrug,
saying, "You can't please all the people all the time". Maybe not, but if you give
the complaint your attention, you may be able to please this one person this one
time - and position your business to reap the benefits of good customer service.

5) Be helpful - even if there's no immediate profit in it.
The other day I popped into a local watch shop because I had lost the small
piece that clips the pieces of my watch band together. When I explained the
problem, the store owner said that he thought he might have one lying around. He
found it, attached it to my watch band – and charged me nothing! Where do you
think I'll go when I need a new watch band or even a new watch? And how many
people do you think I've told this story to since?

6) Train your staff (if you have any) to be always helpful, courteous, and
knowledgeable.
Do it yourself or hire someone to train them. Talk to them about good customer
service and what it is (and isn't) regularly. Most importantly, give every member of
your staff enough information and power to make those small customer-pleasing
decisions, so he never has to say, "I don't know, but so-and-so will be back at..."

7) Take the extra step.
For instance, if someone walks into your store and asks you to help them find
something, don't just say, "It's in Aisle 3". Lead the customer to the item. Better
yet, wait and see if he has questions about it, or further needs. Whatever the extra
step may be, if you want to provide good customer service, take it. They may
not say so to you, but people notice when people make an extra effort and will tell
other people.

8) Throw in something extra.
Whether it's a coupon for a future discount, additional information on how to use
the product, or a genuine smile, people love to get more than they thought they
were getting. And don’t think that a gesture has to be large to be effective. I always remember the little samplers thrown in my bag when I purchased a perfume from Macy’s. A small thing, but so appreciated.

If you apply these eight simple rules consistently, your business will become
known for its good customer service. And the best part? The irony of good customer
service is that over time it will bring in more new customers than promotions
and price slashing ever did!

Sam

The Clock is Ticking

There are two things business people find very challenging: thinking ahead and doing things in order of importance. Doing these two things makes the difference between success in business and just surviving. And the same is true for all areas of our lives.

Leadership trainer and author John Maxwell says, “Thinking ahead and prioritizing responsibilities marks the major differences between a leader and a follower.”

Most people have heard of the Pareto Principle, more commonly known as the 80/20 Principle. Roughly stated this says that in most businesses 80 percent of your business comes from 20 percent of your customers.

Other examples of the Pareto Principle are:
Reading: 20 percent of the book contains 80 percent of the content.
Job: 20 percent of our work gives us 80 percent of our satisfaction.
Products: 20 percent of the products bring 80 percent of the profits.
Picnic: 20 percent of the people will eat 80 percent of the food!

A GUIDE TO BUSINESS SUCCESS

Hence, 20 percent of a business owner’s priorities will give him 80 percent of his production if he spends his time, energy, money and personnel on the top 20 percent of his priorities. When a business owner does this, he can get a 400 percent or fourfold return in productivity.

Every business person needs to understand the Pareto Principle as it applies to the areas of customers, team and leadership. In the area of customers, it is vital to identify the 20 percent who account for 80 percent of one’s business. These are also known as “raving fans,” and strategies must be put in place to care for them appropriately.

Within his team, the business owner must identify the top 20 percent producers. It is important for the business owner to spend 80 percent of his people time with these top performers, in order to develop them to their full potential.

In leadership, it is crucial to take an honest look at the question, “What do I have to do that no one else can do?” A leader is in a position to give up everything except final responsibility. A leader should decide whether he will be reactive or proactive when it comes to the use of his time.

The question is not, “Will I be busy?” but, “How will I invest my time?” It’s not “Will my calendar be full?” but, “Who will fill my calendar?” It’s not “Will I see people?” but, “Who will I see?”

Having one’s priorities in place can boost one’s productivity and personal satisfaction and make businesses grow to their full potential.

Brad Sugar

Doing the Remarkable

When it comes to meeting and conquering the negativity in your life, here is a key question:

What can you do, starting today, that will make a difference? What can you do during economic chaos? What can you do when everything has gone wrong? What can you do when you've run out of money, when you don't feel well and it's all gone sour? What can you do?

Let me give you the broad answer first. You can do the most remarkable things, no matter what happens. People can do incredible things, unbelievable things, despite the most impossible or disastrous circumstances.
Here is why humans can do remarkable things: because they are remarkable. Humans are different than any other creation. When a dog starts with weeds, he winds up with weeds. And the reason is because he's a dog. But that's not true with human beings. Humans can turn weeds into gardens.

Humans can turn nothing into something, pennies into fortune, and disaster into success. And the reason they can do such remarkable things is because they are remarkable. Try reaching down inside of yourself; you'll come up with some more of those remarkable human gifts. They're there, waiting to be discovered and employed.

With those gifts, you can change anything for yourself that you wish to change. And I challenge you to do that because you can change. If you don't like how something is going for you, change it. If something isn't enough, change it. If something doesn't suit you; change it. If something doesn't please you, change it. You don't ever have to be the same after today. If you don't like your present address, change it—you're not a tree!

If there is one thing to get excited about, it's your ability to make yourself do the necessary things, to get a desired result, to turn the negative into success. That's true excitement.

by Jim Rohn

MAKE THE MOST OF YOUR DAY!

Time! By Paul Meyer


When was the last time you complained that you had too much time on your hands? You probably cannot remember that far back. The truth is that most of us cannot squeeze into a 24-hour period all the items written on our daily planners. A common mistake most people make is to attempt to find time instead of make time!

How do you MAKE time?

FIRST, define your most important goals:

A burning desire to reach a specific goal motivates you to make time to take the required actions.

Write down specifically how you will use extra time. Will you spend it making personal calls, three-way calls, attending training meetings, making new contacts?

SECOND, chart your time:

Note how you spend each hour. Most time is wasted, not in hours, but in minutes. A bucket with a small hole in the bottom becomes just as empty as the one that is deliberately kicked over.

THIRD, organize your time to plug the time leaks:

Assume the attitude that every minute that does not work for you, works against you.

To make the most of your time, try these proven time savers:

► Examine the usual daily interruptions. See how many you can eliminate immediately, screen out, or delegate. Set aside a specific time for phoning people on your prospect list, making presentations, keeping up with the detail part of the job, attending training meetings, reading and sending emails and phone calls. These designated time blocks do not always work; emergencies occur, demanding flexibility in scheduling. But when you have a plan for organizing and investing your time, that extra hour of time each day will be available.

► Analyze your energy cycle. Determine when you tend to be at your best physically and mentally. Schedule challenging tasks during those times of peak performance and you will accomplish more in less time. I have more energy in the morning hours than I do in the afternoon hours, so I have always made the majority of my phone calls for sales appointments first thing in the morning. For some people it is just the opposite. They are evening people and work better in the evenings.

► Think about time the way you think about money. The more wisely you invest time, the greater the yield. Before you invest time in a given activity, ask yourself, "Is there something more profitable I could be doing?" And remember, making face-to-face contacts and presentations will ALWAYS be the most profitable thing you can do!

Make the most of your life by making the most of every minute, every hour and every day!

True Communication is the response you get!

As a business owner, how often have you said to yourself: "Why didn't they do it the way I told them?" "Why do I have to tell them again?" "Why didn't they get their activities done that I told them in the meeting?" Any of these types of questions that you ask yourself should be turned around to the question, "How did I communicate to them?"

In reality, it is important to recognize that when you get a response you did not expect, it is the response that will in some way reflect how you communicated in the first place. True communications is the response you get.

Effective communications over the past year have been dealt a real blow with the exaggerated, overblown, misleading and, in many cases, media biased communications that have pervaded all our lives during the political process.

With politicians' favorability ratings in the low teens, this should be seen as the true response the public has been giving to the communications that have been invading our lives. And I would suggest this has been having a negative impact on our business, personal and community lives at a subconscious level.

This communication lesson needs to be recognized by business owners and business leaders. The lack of clear communications is a leading reason, if not the most important reason that relationships between parties develop problems.

At the first sign that responses are inconsistent with expected results, the communication that created the activity needs to be examined. And this is not easy for business owners and business leaders as they frequently fail to realize they know a lot more than the people they are communicating to and don't spend the time to fully communicate their thoughts and requirements.

The basis for effective communications at a leadership level derives from asking questions, listening and then responding.

Three questions


There are three types of communication questions:

Open-ended questions- these are questions that cannot be answered simply by "yes" or "no". They encourage the other party or parties to open up and provide information from their perspective that will allow you to more fully understand their position.

Reflective questions- these allow the other party or parties to elaborate on a statement after you repeat a particular word or phrase that the other party used.

Directive questions- these guide the other party toward a desired, specific piece of information to allow you to quickly move to the response you want. Avoid using directive questions in a manipulative manner as this can backfire by creating mistrust and turning people against the desired communication.

In considering these three types of questions, always consciously see how many closed-ended questions can be converted to open-ended questions by using Rudyard Kipling's "six honest serving men": What, Why, When, Where, Who, How.

Proactive listening


Contrary to common belief, listening is not passive, it is active. As a leading Broadway stage director once said, "Acting is reacting. It's done with the ears, not the mouth." How do you get someone's attention to allow for productive communications from you?

It's not by talking at them, by making clever remarks or by impressing others about yourself. If


you want to open up the opportunity for effective communications with and from you, ask questions about what's important to them.

The biggest mistake in communications is talking about "me", "myself", and "I". "I want you to do this", "What I want to sell is...", "These are my needs..."

Consciously turn your attention to the other person. "How can I help you?", "What are your needs?". Then listen. By showing interest in the other person you can make more friends in 20 minutes than you can in 20 weeks by showing how interesting you think you are.

Effective responses


The third element of effective communications is framed by how you respond.

As Mother Teresa once said, "Kind words can be short and easy to speak, but their echoes are truly endless."

The five most important words a business owner or leader can say are: "I am proud of you."

The four most important words are: "What is your opinion?"

The three most important words are: "If you please."

The two most important words are: "Thank you."

And the most important single word is: "You."

In today's business environment, it is critical that business owners and leaders use positive and uplifting communication to generate the responses they intend from their communication by asking questions, by proactive listening and by using effective responses.

11 Ways to Strengthen Concentration!

Why do we sometimes have such trouble concentrating? The ability to focus is a skill – it is not innate. Here are 11 ways to strengthen concentration, even under difficult circumstances:

1. Connect emotionally to the task. Tightrope walkers and lion tamers have no trouble concentrating. That’s because their lives are at stake. But it’s easy for the mind to wander when it lacks passion for what we are doing. Of course, life’s realities often require us to focus on tasks we don’t like. In those cases, ask yourself, “What aspect of this task do I care about most deeply?”

2. Chart your energy level throughout the day. Most of us have certain times of day when we are clearheaded and energetic. Use those times for tasks that require the most concentration.

3. Remove items that regularly break your focus – family photos, magazines, and any material that is not relevant to your task; even the icon on your computer that alerts you to email...

4. Train yourself not to give in to distractions. When someone enters the room, or when a door slams, consciously keep your concentration on what is in front of you. When someone talks to you, don’t let your mind wander. Listen as if you were going to be required to repeat what is said back to the speaker.

5. Decide how long you intent to work, and what you plan to accomplish. Set strict time limits to complete subtasks. Ask your spouse of a co-worker to monitor your progress, and to apply gentle pressure when necessary.

6. Remember the big picture – but focus on the task at hand. If you keep mulling over the large, long-term consequences of your actions, your mind will shut down to keep you from becoming overwhelmed.

7. Use caffeine and sugar sparingly. True, they stimulate concentration, but their effects last only 30 to 60 minutes. The more caffeine or sugar you consume, the more you will eventually need in order to achieve the desired effects. Instead, try five minutes of light exercise, which will perk you up with no side effects.

8. Meditate. It strengthens your ability to control your thoughts. Try focusing solely on your breath going in and out. Start with five minutes per day. Build up to 20 minutes. When your mind wanders, observe the distracting thought rather than trying to force it out of your mind. After a few minutes, refocus your attention.

9. Take breaks. You should be able to concentrate on one task for about 40 minutes. Then take a five to ten minute break. Periodically shift your sitting position at your desk. This helps keep you alert by promoting circulation and sending more oxygen to your brain.

10. Ask yourself where the block is. If you are chronically unable to concentrate on a specific task, perhaps something about what you have taken on is not right for you. In that case, consider whether you are being fair to yourself by forcing yourself to continue with it.

11. Reward yourself for completing particularly difficult tasks.

samthecoach.com

Inspirational Quotes

"A mind at peace, a mind centered and not focused on harming others, is stronger than any physical force in the universe."
— Wayne Dyer (An American self-help advocate, author, and lecturer)

"The 80/20 principle - that 80 percent of result flow from just 20 per cent of the causes - is the one true principle of highly effective people."
— Richard Koch (A former management consultant, entrepreneur, and writer)

"Success is not for the timid. It is for those who seek guidance, make decisions, and take decisive action."
— Jose Silva (A American parapsychologist and author)

"Confidence is going after Moby Dick in a rowboat and taking the tartar sauce with you."
— Zig Ziglar (Motivational author and speaker)

"Entrepreneurship is living a few years of your life like most people won't, so that you can spend the rest of your life like most people can't."
— Unknown Author

"Nobody grows old by merely living a number of years. People grow old by deserting their ideals."
— Samuel Ullman (Poet)

"The difference between perseverance and obstinacy is that one comes from a strong will, and other from a strong won't."
— Henry Ward Beecher

"Whatever you're thinking about is literally like planning a future event. When you're worrying, you are planning. When you are appreciating, you are planning…What are you planning?"
— Esther Abraham-Hicks (Best-selling author and motivational speaker)

"If you want to build a ship, don't drum up the people to collect wood and don't assign them tasks and work, but rather teach them to long for the endless immensity of the sea."
— Antoine de Saint-Exupery

"People always call it luck when you've acted more sensibly than they have."
— Anne Tyler

"The young man knows the rules, but the old man knows the exceptions."
— Oliver Wendell Holmes

"The world has no sympathy with any but positive griefs; it will pity you for what you lose, but never for what you lack."
— Anne Sophie Swetchine

"Trying to change the outer is like seeing your unshaven face in the mirror and trying to shave the mirror."
— John Joe Vitale (Bestselling author and co-star of The Secret movie)

"We are at our very best, and we are happiest, when we are fully engaged in work we enjoy on the journey toward the goal we've established for ourselves. It gives meaning to our time off and comfort to our sleep. It makes everything else in life so wonderful, so worthwhile." "
— John Earl Nightingale (Motivational speaker and author)

"It is the nature of man to rise to greatness if greatness is expected of him."
— John Steinbeck

"The most fundamental form of human stupidity is forgetting what we were trying to do in the first place."
— Friedrich Nietzsche

"A person often meets his destiny on the road he took to avoid it."
— Jean de La Fontaine

"Every wrong attempt discarded is a step forward."
— Thomas Edison

"Every calamity is to be overcome by endurance."
— Virgil

"That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach."
— Aldous Huxley

"Great things are done by a series of small things brought together."
— Vincent van Gogh (a Dutch post-Impressionist artist)

"A great mind is one that can forget or look beyond itself."
— William Hazlitt

"Strive not to be a success, but rather to be of value."
— Albert Einstein

"The time you enjoy wasting is not wasted time."
- Bertrand Russell

"In order to become the master, the politician poses as the servant."
— Charles de Gaulle

"The less you open your heart to others, the more your heart suffers."
— Deepak Chopra (Speaker and writer on spirituality and mind-body topics)

"The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn."
— Alvin Toffler (Author and futurist)

"Whatever you can do, or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now."
— Johann Wolfgang Von Goethe (a German poet, playwright, novelist)


"The loudest and most influential voice you hear is your own inner voice, your self critic. It can work for you or against you, depending on the messages you allow."
— Keith Harrell (a motivational speaker, trainer, and coach)


"Happiness is a perfume you cannot pour on others without getting a few drops on yourself."
— Ralph Waldo Emerson


"A country without a memory is a country of madmen."
— George Santayana


"When Congress makes a joke, it's a law and when they make a law, it's a joke."
— Will Rogers


"A ruffled mind makes a restless pillow."
— Charlotte Bronte


"Ninety-nine percent of the failures come from people who have the habit of making excuses."
— George Washington Carver


"Our lives begin to end the day we become silent about the things that matter."
— Martin Luther King Jr.


"To acquire the habit of reading is to construct for yourself a refuge from almost all the miseries of life."
— W. Somerset Maugham


"If you want something said, ask a man. If you want something done, ask a woman."
— Margaret Thatcher

"The worst enemy to creativity is self doubt. "
— Sylvia Plath

"A problem well put is half solved."
- John Dewey
"When all men think alike, no one thinks very much."
- Walter Lippmann

"Learning never exhausts the mind."
- Leonardo da Vinci

"To do a common thing, uncommonly well, brings success."
- Henry John Heinz (American Businessman and Manufacturer, 1844-1919)

"It is best to act with confidence, no matter how little right you have to it."
- Lillian Hellman

"The biggest human temptation is to settle for too little."
- Thomas Merton

"I'm a firm believer in the long you live, the better you get."
- Bob Dylan

"Coming together is a beginning. Keeping together is progress. Working together is success."
- Henry Ford

"Human can get in under the door while seriousness is still fumbling at the handle."
- G.K. Chesterton

"Don't judge each day by the harvest you reap but by the seeds that you plant."
- Robert Louis Stevenson

"Don't bother just to be better than your contemporaries or predecessors. Try to be better than yourself."
- William Faulkner

"A primary method for gaining a mind full of peace is to practice emptying the mind."
- Napoleon Hill: Was a lecturer and author of books on achieving success
“The only sin is mediocrity.”
- Martha Graham: Choreographer

“Never think you’ve seen the last of anything.”
- Eudora Welty

“Vision without execution is hallucination.”
- Thomas Edison

“Success is a great deodorant. It takes away all your past smells.”
- Elizabeth Taylor

"Stay committed to your decisions, but stay flexible in your approach. It's the end you're after."
- Anthony Robbins: Motivational speaker and author

"Each man [is] the architect of his own fortune."
- Appius Caecus: Early Roman political figure and road builder

"Always dream and shoot higher than you know you can do. Don't bother just to be better than your contemporaries or predecessors. Try to be better than yourself."
- William Faulkner: Was an American author

“Life is a gamble at terrible odds. If it were a bet, you would not take it.”
- Playwright Tom Stoppard

"As soon as you start to feel differently about what you already have, you will start to attract more of the good things, more of the things you can be grateful for."
-Joe Vitale: Hypnotic marketer and author

"Most people diffuse their psychic energy (attention) in hundreds of random ways. Those who flow focus their psychic energy intentionally upon the task at hand. It really boils down to knowing your goal, concentrating upon it, remaining determined, and having the self-discipline to complete what you are doing."
-Dick Sutphen: Psychic researcher, hypnotist, author

"The trick is in what one emphasizes. We either make ourselves miserable, or we make ourselves happy. The amount of work is the same."
- Carlos Castaneda: Was an anthropologist and author

"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett: Investor, billionaire, and philanthropist

"Entrepreneurship is living a few years of your life like most people won't, so that you can spend the rest of your life like most people can't."
- Unknown Author

"One's best success comes after their greatest disappointments."
- Henry Ward Beecher

"The most important thing for a young man is to establish credit—a reputation and character."
- John D. Rockefeller: Was an industrialist and philanthropist

"Think big and don't listen to people who tell you it can't be done. Life's too short to think small."
— Tim Ferriss: Author, entrepreneur, and public speaker

"Simple kindness to one's self and all that lives is the most powerful transformational force of all."
- Dr. David Hawkins: Psychiatrist, physician, spiritual teacher, lecturer

"Every day I get up and look through the Forbes list of the richest people in America. If I'm not there, I go to work."
- Robert Orben: Is a magician and comedy writer

"By giving people the power to share, we're making the world more transparent."
- Mark Zuckerberg: Entrepreneur who co-founded Facebook

“Courage is resistance to fear, mastery of fear, not absence of fear.”
-Mark Twain

"When I get ready to talk to people, I spend two thirds of the time thinking what they want to hear and one third thinking about what I want to say."
— Abraham Lincoln: Was the 16th U.S. president

"What can you do right now to begin to turn your life around? The very first thing is to start making a list of things to be grateful for."
— Dr. Joe VItale: Motivational author and speaker

“Once we accept our limits, we go beyond them.”
— Albert Einstein

“Optimism can keep a fool from accepting failure.”
— Ernest Hemingway

“Arriving at one goal is the starting point to another.”
— John Dewey

“Great minds have purposes; others have wishes.”
— Washington Irving

"If successful people have one common trait, it's an utter lack of cynicism. The world owes them nothing. They go out and find what they need without asking for permission; they're driven, talented, and work through negatives by focusing on the positives."
— Mike Zimmerman

“It is easier to do a job right than to explain why you didn’t.”
— Martin Van Buren
“Nothing is easier than spending public money. It does not appear to belong to anybody. The temptation is overwhelming to bestow it on somebody.”
— Calvin Coolidge

“It takes many good deeds to build a good reputation and only one bad one to lose it.”
— Benjamin Franklin

"The greater danger for most of us lies not in setting our aim too high and falling short, but in setting our aim too low and achieving our mark."
— Michelangelo: 15th-16th century Italian sculptor, painter, and architect

"You cannot escape the responsibility of tomorrow by evading it today."
— Abraham Lincoln: Was the 16th president of the United States

"If your only goal is to become rich, you will never achieve it."
— John D. Rockefeller: Was an American industrialist and philanthropist

“The longer you can look back, the farther you can look forward.”
— Winston Churchill

"You can chain me, you can torture me, you can even destroy this body, but you will never imprison my mind."
— Mahatma Gandhi: was a political and spiritual leader of India

"Time is limited, so I better wake up every morning fresh and know that I have just one chance to live this particular day right, and to string my days together into a life of action, and purpose."
— Lance Armstrong: 7-time winner of the Tour de France

"Life is an adventure, dare it."
— Mother Teresa: Nobel Peace Prize winner

Break-Even Analysis

Breakeven analysis is a tool used to determine when a business will be able to cover all its expenses and begin to make a profit. For the startup business it is extremely important to know your startup costs, which provide you with the information you need to generate enough sales revenue to pay the ongoing expenses related to running your business.

A startup business owner must understand that $5,000 of product sales will not cover $5,000 in monthly overhead expenses. The cost of selling $5,000 in retail goods could easily be $3,000 at the wholesale price, so the $5,000 in sales revenue only provides $2,000 in gross profit available for overhead costs. The breakeven point is reached when revenue equals all business costs.

To calculate your breakeven point you will need to identify your fixed and variable costs. Fixed costs are expenses that do not vary with sales volume, such as rent or administrative salaries. These costs have to be paid regardless of sales and are often referred to as overhead costs. Variable costs vary directly with the sales volume, such as the costs of purchasing inventory, shipping, or manufacturing a product.


Will Your Business Make Money?


Before you prepare a business plan, you should figure out if your business will break even. How can you tell if your business idea will be profitable? The honest answer is, you can't. But this uncertainty shouldn't keep you from researching the financial soundness of your idea. Preparing what's known as a "break-even analysis," as well as several other financial projections, can help you determine whether or not your business will succeed.

What a Break-Even Analysis Tells You

Your break-even analysis shows you the amount of revenue you'll need to bring in to cover your expenses before you make a dime of profit. If you can attain and surpass your break-even point - that is, if you can easily bring in more than the amount of sales revenue you'll need to meet your expenses - then your business stands a good chance of making money.

Many experienced entrepreneurs use a break-even analysis or forecast as a primary screening tool for new business ventures. They won't even write a complete business plan unless their break-even forecast shows that their projected sales revenue far exceeds their costs of doing business.

How to Prepare a Break-Even Analysis

To perform a break-even analysis, you'll have to make educated guesses about your expenses and revenues. Although you don't have a crystal ball, you should do some serious research - including an analysis of your market - to determine your projected sales volume and your anticipated expenses. Your best bet is to invest in a do-it-yourself business plan product to learn how to make reasonable revenue and cost estimates.

You'll need to make the following estimates and calculations when you prepare your break-even analysis:

Fixed costs. Fixed costs (sometimes called "overhead") don't vary much from month to month. They include rent, insurance, utilities and other set expenses. It's also a good idea to throw a little extra, say 10%, into your break-even analysis to cover miscellaneous expenses that you can't predict.
Sales revenue. This is the total dollars from sales activity that you bring into your business each month or year. To perform a valid break-even analysis, you must base your forecast on the volume of business you really expect - not on how much you need to make a good profit.
Average gross profit for each sale. Average gross profit is the money left from each sales dollar after paying the direct costs of a sale. (Direct costs are what you pay to provide your product or service.) For example, if Antoinette pays an average of $100 for goods to make dresses that she sells for an average of $300, her average gross profit is $200.
Average gross profit percentage. This percentage tells you how much of each dollar of sales income is gross profit. To calculate your average gross profit percentage, divide your average gross profit figure by the average selling price. For example, if Antoinette makes an average gross profit of $200 on dresses that she sells for an average of $300, her gross profit percentage is 66.7% ($200 divided by $300).

Calculating Your Break-Even Point

Once you've calculated the numbers above, it's easy to figure out your break-even point. Simply divide your estimated annual fixed costs by your gross profit percentage to determine the amount of sales revenue you'll need to bring in just to break even. For example, if Antoinette's fixed costs are $6,000 per month, and her expected profit margin is 66.7%, her break-even point is $9,000 in sales revenue per month ($6,000 divided by .667). In other words, Antoinette must make $9,000 each month just to pay her fixed costs and her direct (product) costs. (This number does not include any profit, or even a salary for Antoinette.)

Don't Forego a Break-Even Analysis

Although creating a break-even forecast might sound complicated, you owe it to yourself to prepare one as one of the first steps in your business planning process. As you can see, a realistically prepared break-even forecast will tell you whether your idea is a sure winner, a loser or, like most ideas, it needs modifications to make it work.


If You Can't Break Even

If your break-even point is higher than your expected revenues, you'll need to decide whether certain aspects of your plan can be changed to create an achievable break-even point. For instance, perhaps you can:

find a less expensive source of supplies
do without an employee
save rent by working out of your home, or
sell your product or service at a higher price.
If you tinker with the numbers and your break-even sales revenue still seems like an unattainable number, you may need to scrap your business idea. If that's the case, take heart in the fact that you found out before you invested your (or someone else's) money in the idea.

Further Financial Analysis

If your break-even forecast shows you'll make more revenue than you need to break even, you can consider yourself fortunate. But you still need to figure out how much profit your business will generate, and whether you'll have enough cash available to pay your bills when they are due. In short, a break-even forecast is a great screening tool, but you need a more complete analysis before you start investing real money in your venture.

The following are additional financial projections that should also be part of your business plan, to round out your business's financial picture.

A profit-and-loss forecast. This is a month-by-month projection of your business's net profit from operations.
A cash flow projection. This shows you how much actual cash you'll have, month by month, to meet your expenses.


A start-up cost estimate. This is the total of all the expenses you'll incur before your business opens.
Preparing a break-even forecast will help you decide whether it's worth drafting a business plan for your idea - but it should never take the place of a complete profit-and-loss forecast and cash flow projection.

Price: The Value Equation and How to Use When Selling

How do people determine value when about to pay for goods or services? If a customer objects to going ahead with a purchase and says "that's too expensive", what do they really mean?

Put another way, how do people judge what they're about to buy is going to be a good value for the money AND is there a formula for calculating this? If we knew of the components of how people judge value, then surely we can use this to overcome the price objection.

Well, YES, there is a way, if we go back and look at the Marketing Mix as it applies to customers. The 7 "P's" of marketing are: Price, Product, Promotion, Place, People, Process, Physical Evidence. Going on the principle of "what you pay for is what you get", then value could be shown to be the 6 elements of the marketing mix divided by the 7th one, Price as seen below:

Value = Product + Promotion + Place + People + Process + Physical Evidence/Price

How this can be used in a very practical sense is as follows:

Suppose a customer says "that's too much", we can find out which of the elements above the line can change rather than just lowering the price to get to their perceived value. So, can we reduce the product specification? Is the offer right, is it convenient enough for the customer? Do we need to change the person representing the company? What about aftercare? And finally, can we show we can really deliver to their expectations? Many times just going back through some, or each of these, factors will convince the prospect of the value to them and negate having to reduce your price and therefore, reduce your profits.

I've found this a great tool to use when selling and also when teaching negotiation with salespeople. It clarifies how to position what's being offered to a customer and adjust accordingly without having to reduce your price and profit in the sale as a first option.After all,a salesperson's worth is to add value to the sale and here's an equation to prove it!

samthecoach.com

Team Building

It won't work unless people see the benefit of team building

It is not enough to get your group together off site and have a few icebreaker games. If you want team building to work, you have to show the members of the team that it benefits them personally.
There is very little "team" in teamwork without a lot of motivation. We live in a society that seems fascinated with individual accomplishment and almost oblivious to teams. Even in team settings like sports, we single out the All-Stars and the MVP (Most Valuable Player) of each game. That is the environment you have to overcome in order to build your group at work into a team.

Get Started Team Building
Do you think of your group as a team? They won't think of themselves as a team if you don't. Do you reward team performance, or only individual achievements? You won't have much success in team building if you don't reward team performance. Let your group know that they are a team, that you expect them to perform as a team, and that you will reward their successes as a team. That's the first step toward team building.
Remember that team building must be an everyday activity. It is not something you can just do quarterly at some off-site function.

Motivate Team Building
If you want team building to work, it's not enough to tell them that they are a team and must perform as one. You also have to show the members of the team that it benefits them personally.
Most of us are selfish individualists. We watch out, first and foremost, for ourselves and do what benefits us most. We have to be motivated to include anyone else. Fortunately, it is pretty easy for us to see the benefits of including others, so most of us do that readily. Love is a strong motivator. Parents, for instance, watch out for their children. Money is another strong motivator. It is one you can use as an employer. However, the strongest motivator available to a manager (since it is unlikely your employees will fall in love with you) is self esteem. The more the individual sees a benefit to his or her self esteem from supporting the team, the more successful your team building efforts will be.
First of all, your people have to acknowledge that they are part of a team. You can reinforce this by holding team meetings, posting team news on the bulletin board or your intranet page, and tracking team performance against team goals.
Secondly, they have to believe that the team is capable of producing more than the sum of its members. Lance Armstrong is a great bicycle racer, but he could not have won the Tour de France without the support and assistance of his team members. You may have a great customer service rep on your team, but without the cooperation of the other members of the team he or she would not be able to handle as many calls. You have to make this readily apparent to them and clearly delineate the increased rewards they can achieve through teamwork.

Reinforce Team Building Efforts
One company I know had a great customer support team. Their director challenged the team with higher and higher goals. He celebrated their successes in meeting and exceeding those team goals. He also celebrated them as individuals. The team decorated the cubicle of everyone who was having a birthday. They did community service projects together. They had fun at work. And they enjoyed beating the goals Clint set for their team. They got a significant boost in self esteem from belonging to a winning team.
Making up t-shirts, etc. with a team logo or motto can help reinforce the sense of team identity, but it's not required. You should know your team well enough to know whether or not something like that would be positive reinforcement for them.
Don't make the mistake of one Accounting Manager I knew. The motto he picked for his team and had printed on ballcaps he gave them didn't fly. He hadn't involved the team in selecting either the motto or the object on which it was printed.

By F. John Reh, About.com Guide
www.samthecoach.com

Why Most Goal-Setting Fails

Here are five main reasons why most people fail to reach their goals:

1. Wish List and Cross Your Fingers
You cannot simply write down a list of wants on New Year’s Day, stick it in a drawer for the rest of the year and wait around for your life to change. You need to read it, want it and ACT on it.

2. Clear as Mud
Your goals have to be crystal clear. You have to give clear instructions to your brain in order for it to see (Allowing your Reticular Activating System to see it) and ‘draw’ into your life what you need to accomplish your goals. Just like the combination on a lock or the digits in a phone number or an ATM code, if the instructions are off by only one digit, they won’t work.

3. All Talk
Proclaiming your goal is just the starting point. Now you have to actually draw a map for exactly how you are going to get there and define the resources you’ll need to arrive safely.

4. Houston We Have a Problem
You must have your own command and control system to keep on track along your journey into the unknown. Anticipate set backs and have a plan to work around it. Be the boat that works itself around obstacles and not the inflexible Train that is rigid and could be pushed off track).

5. Lack of Reinforcements
and don’t forget the support and guidance of people and resources you will need along the way. Before marching blindly into the next year, the first, and most important, activity is to take a look back at the year just finished. Take an inventory, add it all up and see how you did.

Samthecoach.com

Quality Service Makes Good Cents

Ask any business owner about customer service and satisfaction and most will admit that it’s critical to their overall success and profitability. Ask them what they DO to insure their team consistently delivers quality service and the answers are vague or in some cases they simply shrug and say ‘not much’.

While customer satisfaction is important, it also makes great CENTS to improve it.

Here are a just a few things to consider:

loyal customers spend more and buy more frequently;
customer satisfaction is linked to retention;
it’s cheaper to retain customers than acquire new ones;
customers are willing to pay more when service is better than competition;
happy customers refer others; and
unhappy customers tell at least 10 others about their negative experience – who needs that kind of PR?

Seven Ways to Improve Customer Service:

Get feedback. Encourage and welcome customer input about how you can improve. Provide a method and process to get constructive comments and suggestions. Customers can be your best advocate and are knowledgeable of competitors and what they do or don’t do well. Remember, you cannot fix or improve something if you don’t know it is broken.

Treat employees well. Appreciation starts at the top. Your team will treat customers the way you treat your team. Do you greet them when you arrive? Do you thank them? Do you listen to their concerns and ideas? If you take care of your team, your team will take care of your customers.

Document and handle customer complaints. No matter how good you are, things can and will go wrong. Identify the source of the top five to seven complaints (even if they only occur periodically) and develop a process to handle them. Don’t forget to include guidelines and limits of authority so your front-line employees can resolve the majority of complaints without going to the boss! Also keep in mind, complaints that are handled well can actually build loyalty with customers.

Measure and reward customer satisfaction. If customer satisfaction is really a priority in your business, demonstrate this to your team and customers. Develop a method to measure it, set goals for improvement and reward the team when the goal is accomplished. And here’s another plus. If your ‘documented’ customer satisfaction levels are 95 percent or better – you now have a great message for use in marketing. It sure beats the “we deliver great service’ message so many businesses like to put out there!

Train your team. Customer service skills, like technical or sales skills, can be developed and improved with training. While most businesses train new employees – existing team members need ongoing training and development too. In addition to better service, employee training is linked to improved employee retention and satisfaction – a big benefit in today’s competitive labour market.

Document your critical systems and processes. Too often, the source of dissatisfaction or perceived poor quality is tied to your processes. Take a look at the processes – from initial contact through billing – and document what gets done. I guarantee you will find gaps in consistency and opportunities for improved efficiency and effectiveness. Documented systems put money on the bottom line by improving customer satisfaction and reducing re-works, returns or call-backs (a big satisfaction driver).

Set expectations. In marketing and sales, a ‘can do’ attitude is important – but only if you can deliver. Real success in business comes from delivering what you promise and doing it each and every time. So set the right expectations and remember the old saying – better to under promise and over deliver!
Brad Suger