By Janna Hoiberg--From my upcoming book:"The Backpacker's Guide To Business Success"
"It isn't what you have or who you are or where you are or what you are doing that makes you happy or unhappy. It is what you think about it." - Dale Carnegie
This is an excerpt from my upcoming book, "The Backpacker's Guide to Business Success."
“If you don’t know where you are going, every road will get you nowhere.” – Henry Kissinger
Control freak is often an apt description of business owners. We like the ability to control our destiny, make our own decisions and see the impact of what we accomplish. The challenge comes with:
• understanding how little control we actually have – just a perceived control,
• learning how to relinquish control i.e. delegate, for the business to grow and
• how to leverage our controlling nature into something successful.
An employee kept watching how the business was being run, the waste that was taking place within the business, how customers were being treated and the lack of profit being generated by the business. These frustrations led to his determination to start his own business. His premise was he would treat employees much better than his current employer, eliminate the waste taking place, treat his customers better and generate more profit. In essence, he wanted control over the areas his current employer struggled. He accomplished those goals. He learned a number of lessons in the process. These were his and others primary drivers for family business ownership (and possibly entrepreneurship in general). The business owner is tired of:
• Following someone else’s lead/orders
• Believes they can serve the customer better
• Has different ideas on how to implement the product or service
• Desires flexibility in their day to day lives and a stronger balance between work and home and
• Can make more money, i.e. profit
The lessons learned are:
• Their new boss (themselves) is not the wonderful bosses they thought they would be and they have a great deal to learn. Looking in the mirror at the new boss isn’t always a pretty sight. It is the age old statement of “the grass is always greener on the other side of the fence.”
• They can serve the customer better, but it is much harder than they thought and they start to understand their old company better. Customers can and often are demanding. Their interpretation of quality is different than yours. You may see value in something that the customer doesn’t care about.
• They do have different ideas on implementation – some of those ideas work and some don’t
• Flexibility is fantastic – you can work any part of the 24 hours per day that you want. Yes, you do have flexibility to take kids to school, pick them up, go to games etc., but there is a cost and that cost is often working evenings and weekends and other times that you didn’t previously work.
What makes great entrepreneurs is the desire for control, but understanding less is more. To have the utmost control, we need to leverage our skills and have others in place to do the work – therefore we stop being the bottleneck to success.
The more we want and think we have control, the less we have. There is always someone else who truly has more control. It might be customers, government, laws, acts of God. It is that desire for control that if not managed well drains the business. Lack of an ability to delegate is the result of the business owners desire to have control. They can do it better than anyone else. We serve the clients better, they know the product better, therefore they don’t delegate. We truly want the control and the ego lift that comes with it. Stop it NOW. Learn to delegate and delegate wisely.
Entrepreneurs and setting goals is a popular topic. Dan Sullivan had a perspective worth sharing in the May issue of Success Magazine. The concept is rather than trying to double or 2 times where you are– go for 10 times where you are. “WHAT?” I hear you all scream. “It is hard enough to achieve 2 times where I am, how on earth can I even consider a 10 X goal?” That is exactly the point.
A 2 X goal is really just pushing what you are already planning into the future (assuming you are planning). The ability to achieve the 2 X goal is a probable anyway. There really isn’t rocket science, you know the basics—hard work and you will achieve the 2X goal.
Now for the 10 X goal that starts pushing you out of your comfort zone. I can already feel the squirming. A 10X goal forces you to look at what is really going on in your business. It forces you to look at inefficiencies. It challenges you to think out of the box, to put systems in place to handle 10X, to understand your business, structure your business, and PLAN. You must now think differently, observe differently, plan differently and execute differently. Once you start thinking 10X you will notice opportunities, changes, and perspectives. Then you can start making the changes that are required.
Here are my perspectives and 4 ¾ downsides to this type of thinking:
1. Shooting for 10 X – you might not make it, you might only reach 5X.
2. 10 X thinking creates perspectives on your business and forces planning.
3. You don’t know how to think 10X? What better way to start looking at everything from a different perspective? Read, ask, get advice, reach out to others, be humble. Even if 10X is achieved, I guarantee your 3, 4 and 5X will be more profitable.
4. For 10X I need to look outside the box, and that creates FEAR. False Expectations Appearing Real – so what are your real fears? Figure them out, since they will probably keep you from achieving 2 X. There is no better time than the present.
4 ¾ Reality is I don’t see any downside to 10X type of thinking. The danger really lies in 2X thinking. Thinking too small limits your potential, who you can be, and can lead to my favorite quote: “Hell on earth is seeing the person I could have been!”
Attitude is all about how you look at things. I recently took a trip to New Orleans flying through Houston. The Polar Vortex that has been hitting the US made for cancelled flights and a one day delay in actually making the trip. Then upon my arrival in Houston my connecting flight was cancelled. Rather than waiting around hoping to make it on another flight (the standby list was over 200), I chose to drive. The situations on that drive will generate some good stories during my speaking event!
That drive and the resulting situations (i.e., getting pulled over, having the road closed for 125 miles and getting detoured twice etc.) could have made for a very unhappy person who was grouchy, blaming the airlines, mad at the world and generally miserable. What I chose was the pure joy of having 6 hours to myself in a part of the country I haven’t driven before and the peacefulness of my thoughts (when I wasn’t singing at the top of my lungs to a favorite song).
The event that happened was the cancelled flight, my response was – ok now what happens. My actions created the outcome; “this is a journey and who knows where it will take me”. My response could have been much different and the outcome could have ruined the whole conference for me.
My questions to you:
I have learned that one great joy is to take a bad situation and NOT take it out on others. I love watching them respond when they expect you to yell and get mad. I love putting joy into their day of not having an irate customer in front of them. Now this doesn’t mean I allow them to walk on me, or am a push over (those who know me probably haven’t even dreamed of that situation.) You would be amazed at how often I then get told: Thank you for being so understanding. Thank you for your attitude.
How do YOU respond? Do YOU need to change your response to life, business, and personal situations which not only change your world – but those around you?
Excerpt from "The Backpackers Guide to Business Success".
When on the trail I am the one that looks ahead. I am always watching for what is next - looking at the scenery, taking pictures of the flowers. I love reaching the top. As I look ahead I see a crowd of people stopping. There is a flat spot and they are resting. I get excited - is this the top? Are we really there already? Now, if I have been checking my map, the compass and the GPS- I will know that we aren't there yet. Although all the signs confirm that the top hasn't been reached, my heart wishes I was there. I keep climbing until I reach the spot where everyone else has paused and I confirm again that, no, it isn't the top. There might be a view; yet I haven't really arrived.
The letdown is brief; the break is short and I continue the climb. When we are kids we start school at the bottom and, depending on the school, we reach the top at 5th grade only to start a new school. In 6thgrade we are at the bottom again; the process repeats in high school, then college, then your first job, then your second job. At some point you keep looking out and wonder - is this truly the top and will I ever get there? If I arrive, how long will I stay?
On the trail up a mountain there is a defined top, a marker or a spot where you can say you have arrived. In our business the top isn't as well defined. On the trail, I can have a brief moment of frustration - this isn't the top yet, but I know it is there and I know where I am going. On our daily journey those false summits may not only be deceiving, they can be distracting from what is the real goal. False Summits are also where people often turn back, they give up and they can't (or choose not to) go on. They don't realize that usually they are 80% of the way to the top.
False summits test our perseverance, desire to get ahead, and our endurance. They are a natural part of the mountain and a natural part of your career. The question is, what is your attitude when you reach them? Give up, turn around, or greet them with a smile and an attitude of let's get to the top?
Yet, sometimes our fears keep us from moving forward. Fear of failure, fear of being embarrassed, fear of public speaking, fear of upsetting an employee, fear of holding them accountable, fear of scarcity... the list is long. Then there is the age old fear of spiders, unless you lived in my house growing up. My mom didn't like spiders and would vacuum them up. My dad and I would rescue them before she saw them and hide them in a plant (unless it was a black widow - those we killed).
How do you use your fears? Do you use them as a motivator to overcome and move forward? Do you use them as an excuse to stay in your comfort zone? Do your fears hold others back? You are afraid of heights so you won't allow other family members to stand close to the edge? You are afraid of failure, so you won't allow your employees to take a risk? Yes, you see the potential for high rewards, yet, there is a high potential for failure as well.
Where we end up long term depends on how we challenge ourselves to face our every day fears. When I started to write, The Family Business Book, my fear was having the first person (outside my own family) read it. Would they like it? Did it make sense? Was it worth purchasing? If I had allowed my fears to control my actions, it wouldn't be published. The book wouldn't be helping family business owners look at their business in new ways and have new and different conversations with family members.
Now the idea for the second book has been born and is in the works. Are the fears there? Yes they are. Will I move through them? Absolutely. Will I breathe a sigh of relief after the first presentation on the topic (which is before the book is published) is done and I get feedback - absolutely.
Yet, even if I failed, I have learned a great deal on the journey. So what are your fears and how will you face them - starting today?
All too often, I hear excuses for why something did not happen the way it should have. People always search for ways to absolve their guilt by blaming their issues on something else. I have found throughout my career that there are three major categories of excuses:
The “It’s good enough” excuse
This is one of the most common excuses. Someone will do a passable job, scraping by, but quit as soon as possible with the excuse that what they accomplished is good enough. They are not striving for an “A” or for real quality work. Merely scraping by with a “C” or adequate work is good enough. However, if you want to make your business truly exceptional, meaningful, a true world-changer, this is not acceptable. You will never get ahead with “good enough”. Would you yourself do business with just “good enough”?
The “I’m new at this” excuse
Along this same line, people who are new at something feel that they have a right to give themselves a bit of slack. Although there is something to be said for the learning curve, all too often it becomes an excuse to slack off your first few months. However, the opposite is true; you need to be ready from day one. Otherwise, you get trapped in a cycle where the “I’m new at this” excuse becomes a “good enough” habit.
The “I didn’t plan for that” excuse
We all have moments that make us go “Oops!” If you have any doubts about that, I have a board game called Leverage to show you. Even though there are some unexpected developments, you cannot simply say “Oh well.” You need a plan B, as well as a Plan C, D, & E. Be prepared for any and all eventualities, because you never know what will happen in the future. An employee may walk out on you, or there may be a sudden shortage of your product. When that happens, what will you do? Seriously think about a variety of scenarios and create plans to put in place before you need them.
Ultimately, complaining about a situation does nothing productive for you or your business. What you need to do is isolate the problem and identify a solution. Don’t waste ages explaining your problems to your friends and colleagues, only to ignore their advice. Instead, get to the root of the problem, follow through with the corrective solution, and move on with your business. The art of self-correction is among one of the most important business lessons you will ever learn.
You started out with a great idea, one that seemed to be desirable by a number of clients, and it paid off. You truly found what you loved to do and are able to get people to pay you for it! Congratulations. Now, how are you going to sustain your business? You may be fantastic at developing widgets, but how are you at the actual business competencies that will sustain your business over the long run?
An October 2012 report on Sustainability and Leadership Competencies for Business Leaders identifies top competencies as follows:
Business owners need to provide themselves with learning opportunities that will strengthen each of these core business competencies. This education can be accomplished through reading, formal training, or most effective, by utilizing a business mentor or business coach that can hold business owner accountable for actually implementing stainable changes in their company, ones that are customized to meet their company’s specific needs. However you choose to receive your small business advice and continue your education as a leader, make a plan and follow your plan to ensure you are a perpetual learning leader.
An old adage goes, “Rules are meant to be broken.” In many ways, this is absolutely correct. Simply following the rules, doing the same thing over and over, won’t get you anywhere. Albert Einstein once said, “We cannot solve our problems with the same thinking we used to create them.” Every truly great, major innovation in history has come about as a result of new thinking.
So let’s say you’ve set up your business, and are doing fairly well. You have a steady stream of revenue, a good customer base, efficient systems in place, and everything is going great. What do you do next? Often, businesses will plateau. They will improve up to a certain point, but things won’t get better from there. Once a plateau is reached, new thinking is required if you want your business to grow-which you should. Now, you should not throw your old playbook out the window, however, change is needed, and in many cases this change is rather unconventional. You need something that sets you apart.
Find that niche, and utilize it. Do something new, something different, and blow everyone away with your creativity and innovation.
Keep the Happy in Your Holidays
[Recently, I discussed taking time out for yourself to relax and take a break (Read: “Seeing the Forest Through the Trees!”). This week, I’d like to elaborate on this topic and incorporate it into the holiday season.]
It’s the most wonderful time of the year! And also the most hustling, bustling, hectic, lose-your-mind-because-you’re-so-crazy-busy time of year. Running a business and making time for festivities and celebrations can be a challenge. In between the potlucks, get-togethers, cookie exchanges, and ugly sweater parties are invoices, year-end financial statements, payroll, budget forecasting, planning and hundreds of other tasks to complete before the new year.
Here are some helpful hints to get you through the season with your sanity intact:
The holidays are meant to be a break from the everyday routine. These are the days when you can focus on spending quality time with the people in your life who matter most. Your time is valuable, and unlike money, you can’t obtain more of it—what you get is what you get! With some proactive planning and time-management, you can enjoy the challenges and rewards of working for yourself AND enjoy the holidays too! And from me it is Merry Christmas to you.
The whole concept of accountability is tainted with misperceptions, frustration and blame. It is so often someone else’s fault. Within the family constructs, this dynamic is even more frustrating and brings along tension, “stories of why” and more excuses.
Accountability at its core is “doing what you say you will do, when you say you will do it”. The foundation lies in the communication cycle and the definition of the deliverable. Let’s start with the communication cycle and with an example we can all relate to; taking out the trash. Mary asks Jim to take out the trash before dinner. Jim says yes. He knows that dinner is scheduled for 6pm, it is now 4pm. He will get to it. Mary however wants the trash taken out now, not in an hour, although she didn’t communicate that specific detail. Mary is also expecting not just the kitchen trash, but the rest of the trash in the house will be collected, since “everyone” knows that the weekly trash pickup is tomorrow morning. Stress and frustration builds. Mary doesn’t understand why Jim didn’t do it immediately and why the job wasn’t complete. Jim doesn’t understand why Mary is suddenly upset. Sound familiar? I am sure it does.
Now apply that same scenario to the work environment. You may not be asked to take out the trash, however the joy in preforming your duties and the communication concepts are still the same. Your priorities and that of your co-workers might not always weave together well. You get the project completed; however it is later than desired and not to the quality expected. Tensions rise, delivery date to the customer is missed, and quality suffers.
What is the solution?
One of the most asked questions during an accountability discussion is what are examples of consequences and how do they get enforced. Consequences must be appropriate to the situation. Firing for being late the first time due to a large traffic jam is not appropriate. Here is a story of a large company that doesn’t have the best reputation for how they treat their employees. The CEO of the company had stated that employees must be at their desk by 8:00 am. One day he went to the parking lot of the company at 8:30am and anyone who was just arriving to work was told to go home. He didn’t even allow them inside the building. Did he make a point yes, people in this company are to be at work by 8am. Is this the type of employer I would want to work for – no!
Yet, I will give him credit for stating the rules for the company and for being willing to stand for what he believes and then enforces the rules. He also has employees that have worked with him for decades and the company continues to grow and is profitable – so something must be working.
Consistency is critical. Treating every situation different creates a divisive environment for an organization. Allowing one person to “get away” with not following procedures, not getting things done etc., does more to erode employee morale than the example above where the employer sent everyone home that was late. They knew his policy, they knew the rules. They chose to break them, or get away with things, and it didn’t work.
Most companies I work with on this topic find that everyone complains about the lack of accountability. However, when the organization starts to implement true accountability, people begin to complain about being held accountable. The reality is that everyone wants it for someone else, but not for themselves. It is hard to change, yet worth every step.
The choice is yours. The solution sits in your lap; you can choose to take the challenge of being personally accountable or sit back and complain about the lack of accountability. What is your choice?
The family business; it’s the foundation of the small business world in the US. Approximately 80% of small businesses are family owned. That can mean brothers, sisters, parents, grandparents, aunts, uncles and children. Why are there so many family owned businesses? One reason – blood is thicker than water. There is a trust factor that comes with working with family. I hear laughter from some of you. Some of you wouldn’t trust your family with a dollar let alone own a business with them. While that can be true, the reality is even where the family has a trust and verify. The family business has a set of dynamics that are unlike any other. Think of your family – what would it be like to work with them every day? Then, go home each night. Now I have you thinking… Yes, that is the joy and challenge of family business. It is often hard to:
The list goes on for both sides. If you are considering starting a family business congratulations – you will love the journey.
What have your experiences been with family businesses? Are you in one? Have you done business with one? Share them with me; I would love to hear the stories.
Call or contact Janna Hoiberg online to schedule a free, initial consultation.
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