Mark LeBlanc
Develop a Business Model That YOU Are Excited About!

Many people told me I had to think outside the box. I never understood this expression until one day it dawned on me the reason most people cannot think outside the box is they don't have a box to begin with.

It's as if you went to an office supply store and bought one of those flat bankers' boxes. Even though the instructions are included you still have a hard time putting it together.

Most people in business do not have their box or model in place. Once you put the box together, then you can step outside from time to time and re-examine your approach to managing and growing your business. With a good model in place your fun meter will be on high and your stress meter on low. Here we'll examine the financial side of your model. You should be acutely aware of seven numbers in your business and career.

Your Optimistic Number

What do you need to deposit on a monthly basis to survive? On the basis of how you are running your business at this point and the fees you are charging, how much is realistic for you to deposit? If you could look into a crystal ball and deposit this number on a regular basis, what would your optimistic number be?

Ask yourself two questions every day. In the morning, ask: What am I doing today to reach my optimistic number? At the end of the day, review your activities and decisions made and ask yourself: What did I do today to reach my optimistic number?

The quality of your answers will determine if you are moving towards your optimistic number or moving away from your number. You have four commodities when running your business. Where and how you bet your time, energy, money, and creativity will determine if you ever reach your optimistic number and on a regular basis.

(O.D.I) Owner's Discretionary Income

The second number you want to know is the percentage of your gross deposits or gross profit (depending on your cost of sales) that I call “owner's discretionary income." This is comprised of your compensation and may include your salary, draw, bonuses, retirement contributions, perks, and any expenses that you are legally entitled to and are for your benefit and not required in the “running” of your business.

Review your income statement for the last twelve months and then again for the last three months and determine your owner's discretionary income. Then turn it into a percentage.

Multiply your O.D.I x 100 and divide by your total deposits for that period. Track the total dollar value each month, as well as your percentage of deposits.

What Do You Have In Reserves?

The third number you need to know is your reserves number. What do you have in reserves (besides your business checking account) that will help you weather a financial storm or decline in revenues? Open up a business money marketing checking account. Suggestion: keep an amount equal to one month of optimistic deposits or three months equal to survival deposits.

Net Worth!

The fourth number is your net worth goal. Any person who has a written net worth goal will tell you how powerful that number can become in your financial planning strategies. Here is a good read. Buy a copy of the book, Wealth in a Decade, by Brett Machtig.

Your Investment Barometer

The fifth number is your monthly investment number. What amount are you investing on a monthly basis for reaching your net worth goal? One of the biggest challenges for business owners is the realization that he or she did not adequately plan for the second half of their lives. During their careers they made a lot of money and ran a lot of money through their business and yet have little to show for it. You need to invest in your retirement as well as your business.

Knowing these five numbers and tracking them on a regular basis will help you manage your business more effectively and make better decisions. This should result in a thriving and successful business or independent practice. Of course, I am assuming you have a good product or service. Where are you willing to bet your time, energy, money, and your creativity?

Contact Mark:
Mark LeBlanc runs Small Business Success in Minneapolis, MN and can be reached at (612) 339-4890 or by sending an e-mail to Mark@SmallBusinessSuccess.com. You can order his books, ‘Growing Your Business' and ‘Never be the Same', at www.SmallBusinessSuccess.comor www.NeverbetheSamebook.com.
Paul Andrew

I have a love/hate relationship with IKEA. On the one hand they sell exceptionally cost-effective furnishings that can often look good for the price. On the other hand I so often find that the frustration of dealing with their products overshadows the money I save.

Take the shelving system I bought last weekend for example: they didn't include the screws needed for attaching the shelves. Worse though, when I opened the “instructions” what I actually found was simply a picture of the parts and then a picture of the finished product. No steps. What could have been a simple assembly process turned into trial and error, hours of aggravation, and the inevitable discovery at the end that I had some pieces left over whose purpose remains unknown.

As a leader, is your vision an “IKEA instructions experience” for your team?
• Do people around you seem to spend a lot of time trying to clarify what you see or what they're supposed to achieve next?
• Do you convey a big picture outline sketch of the finished product you see, then direct people back to a list of resources and leave them to “figure it out”?
• Do projects take much longer than you think they should?

Maybe this is an opportunity to ask whether or not you're taking the time to break it down for your team.

Like it or not, most team members need both the vision and the next steps. This is not about micro-managing. And it's not an anti-vision message either. In fact, if you can't show people a vision of what you're trying to build then all the steps in the world may be nothing more than “busy work”… or as the old adage goes, “climbing the ladder, only to find it's leaning against the wrong wall”.

But let's face it – it's faster and more fun to come up with ideas than it is to break those ideas down into a plan that people can actually execute. I've consulted with organisations that clearly had “vision fatigue” – the cumulative effect of endless ideas and initiatives that rarely get executed. Whether it's you, or someone else whose gift is turning ideas into plans, don't underestimate the price we pay for not translating all that possibility into steps our team can actually take.

So if there's an aspect of your vision that seems to have stalled why not take some time this week with a few of your top producers to break it down. Create a plan. Lay out a sequence of steps. Clarify the starting point. Set some milestones. Then see if pictures and plans produce better results than pictures alone.

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Paul Andrew is Founder of The Leadership Coach™
He is a Keynote Speaker and Management Consultant based in New York

info@theleadershipcoach.com | 1 917 913 4598

Tags: leadership
Steve Yastrow

There once was an apple farmer who owned a beautiful orchard. The orchard produced many apples, which the farmer used to make apple pies that were thought to be the tastiest around.

Each day, the farmer would pick apples from his orchard and bring them into the building where the pies were made by a crew of bakers. One day the headbaker told the farmer that he needed more apples to keep up with production. The farmer ran out of the building to his apple cart, but instead of pushing the cart in the direction of the orchard to pick apples, he turned to the road and pushed the cart three miles into town, where he paid full-price for apples at the market.

He brought the apples back to his bakers, who were very happy to see that he had returned so quickly with this new material for production. The next day his bakers needed additional apples, and, once again, instead of picking apples from his own orchard, he went into town and bought apples.

One day, the farmer's wife asked him what he was doing. “I'm buying apples for our pies. Look how many I bought today!”

“What about all of the apples on our trees?” she asked.

“Oh, I think I got most of them.”

She grabbed him by the hand and walked him out into the orchard. There, they saw that the branches of his trees were still heavy with apples, many of which were rotting and falling to the ground. They saw a squirrel nibbling on a piece of apple he had found under a tree.

“What you're doing is pretty silly,” said the farmer's wife.

“I gotta go. I need to get into town and buy some apples or we won't be able to keep up with our pie production.” He turned and ran to get his cart so he could get to the market before it closed.

Are you running your business like this farmer? Here are a couple questions to see if you are:

What percentage of your customers are giving you all of the business they could? Yes, of course, iy try to find new customers?


How do you compare?

Are you the farmer? How did you answer the questions I posed above? Are you buying a disproportionate number of new customers, while letting customers you already have “rot on the trees?”

Try this

Forward this newsletter to colleagues in your company. Ask them how much they think your company resembles the farmer. Have a discussion on this topic: What can we do to shift resources from buying apples, at a premium price, to farming our own orchard?

Tags: customers, sales
Tom Feltenstein

During the start of my career in marketing, I was fortunate enough to work for several years with Ray Kroc, the legendary owner of McDonald's who revolutionized the franchise business through neighborhood marketing. Although Ray imparted enough wisdom to last a lifetime and fill countless volumes of literature, I've distilled his most valuable insights into the following 7 Lessons. Please read them carefully, because if you adopt them as the guiding principles of your own business philosophy, you cannot help but win your competitive battles, no matter how formidable your foes are.

1)It's all local

2)The heart and soul of your business is marketing inside your own walls

3)Community involvement. Become an integral part of your community by being generous with your time and efforts to lend a helping hand to those in your neighborhood who are in need.

4)Trust your people. Allow your employees the freedom to contribute their opinions, insight, and knowledge. Give them the power to make decisions to benefit your customers.

5)A good idea doesn't care where it comes from.

6)To make it work from top to bottom, it has to work from bottom to top.

7)Deliver a powerful level of service – beyond what's expected – and you've created a tangible bond with a customer that no mass media program can achieve.

Steve Rowell
Not Taking Hiring Seriously Enough

Arguably, the single most important thing an owner of a residential cleaning service can do is make quality hiring decisions. This requires “more than a gut feeling” interviewing skills and recruiting techniques. Again, the difference between breaking through the $500,000 Revenue Wall is one's ability to stabilize their workforce in such a way that the operation is able to grow over time. Without this stability, quality will suffer, customer retention will suffer, and employee satisfaction will suffer—a vicious cycle that keeps a company from growing, if it doesn't kill the company altogether. Steven offers proven recruiting and hiring strategies including building job profiles with behavioral based interviewing techniques so you have a better chance of knowing who you are hiring.



Believing Your Own Beliefs about Hiring

Companies, no matter what size or what industry, are the result of their owners or CEO's, or both. They take on the values of the very top person. Don't believe me? Ask yourself this question. Why do my employees walk around with their shirts un-tucked all the time? Answer. Because you let them. Because it's not a priority to the organization. Because they can. It's a natural law that employees will automatically do the least that they are allowed to do. Your job is to raise the bar and redefine the “least acceptable.” In hiring, check your beliefs, your biases, your assumptions about your marketplace, your town, your unemployment rate and so on. Trust me, if you believe “there are no good employees out there,” you are right. If you believe “there are a few good employees out there,” you are right. However here's the secret, “Is your ‘right' a reality or just your own belief?” Push yourself to stop doing same-old, same-old, especially with hiring.



Being Afraid or Unwilling to Offer Sign-On Bonuses and Retention Bonuses

It's a fact. Scarcity thinking takes you down the path, “I pay what I pay and people should be grateful for it.” Abundance thinking says, “If we build it together and we're both successful, why not share some of the profits with the people who got us here.” Here's the formula, if you offer a sign-on bonus make the dollar amount large enough and the time frame for having to wait for it reasonable and compelling for prospects to respond. Offering a “$100 bonus after 6 months” unfortunately in this day and age is too little money, after way too long a time period. So here are some suggestions. $300 Sign On Bonus Package--$100 immediately, $100 after 30 days, $100 after 90 days. Or 3 2 Sign On Bonus Package—Receive $300 just as mentioned before, plus receive $200 in gift certificates, gift cards and vouchers after 90 days as well. You go to local merchants and ask for free dinner vouchers, gift certificates, promos etc. and build your own envelopes of $200 worth of free services or gifts.


Read Part One http://franchiseprofs.com/Steve_Rowell/blog/three-...


Steven Rowell, Your IDEA Doctor, helps franchisees and business owners double their sales, triple their net profit, and retire in 2 to 3 years, by building the business of their dreams in record time. 800-268-8170 www.retiremenowsteven.com/neweconomy-replay2
Tags: retention, hiring
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