“What do you want?”
“You mean for me or for my business?”
“Either. Both. What do you want?”
“Man...That’s a good question…”
As a business coach, it’s the first question I ask every prospective client. Such a simple question, yet very few of the business owners I meet have a clear idea of what they want or where their businesses are going.
Read MoreA prospective client called me in February a few years ago.
He had opened a new business in July, and by the time we talked he was selling over $100,000 of merchandise per month. Going from zero to $100,000 per month in seven months is a good thing, right?
Not this time.
Read MoreIt sounds too good to be true, but have you noticed that some homebuilders thrive while others never seem to get ahead? I mean really ahead. The difference is that builders who thrive have figured out how to build houses for free and to pocket the gain as profit.
So how do they do it?
Read MoreI went back to January, but I didn’t stop there. By the time I’d been through five years of bank statements, I had found more than $340,000 missing, stolen by the most trusted member of our management team, our in-house bookkeeper. In the end, her father paid back the money, but she got jail time and ruined not only her life, but the lives of those most dear to her as well.
Read MoreAs a business coach, that is probably the number one question I am asked by business owners. Payroll this week, suppliers next week, debt service the week after, and tax deposits, seemingly, all the time. Everybody wants our cash. If you own a business, you know what I mean because you’ve asked the question yourself. Even when we make a profit, it feels as if business is a perpetual scramble for scarce cash...
Read MoreThere may come a time that you want to bring investors into your business. You may want investors to provide money, or expertise, or a combination of the two. Yes, you will need a business plan, but the process always begins with a conversation. This article is about that conversation. Having participated in hundreds of them, I have noticed that investors want five questions answered early, before they put a lot of time into detailed analysis of your offer. It is highly unlikely that they will even look at your business plan, let alone invest in your business, until you have answered the five questions...
Read MoreThe value (price, if we’re selling) of a business is what a willing buyer and seller agree it to be. However, assuming both parties are informed and rational, the value of most small businesses is calculated by multiplying annual profit times a “multiple.” The multiple is a number that reflects buyer confidence and often falls between one and seven. So, for example, a business with annual profit of $100,000 at a multiple of two would be worth $200,000.
Read More“Are you sitting down?”
It was our new regional salesman, Frank, talking to a customer on the phone.
“I’ve got pricing for you, and I just want to be sure you’re sitting down when I tell you.”
I was in Georgia to find out why Frank was struggling, and it was apparent. The quote was for a small commercial job, but Frank thought $10,000 was a lot of money. It showed.
Read More“What would it take to double your profit?” I was talking to Brent, a contractor. We had rearranged his income statement, and his margins were visible for the first time.
“What do you mean?” he asked.
“I mean, based on last year, how much more would you have to sell to double your net profit?”
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