Why Most Small Businesses Fail and What to Do About It
By Michael Gerber.

Reading The E-Myth for the first time in 1994 was like being introduced to my long lost twin. I was stunned at how eloquently Gerber articulated many of my own philosophies, observations, assumptions and thoughts regarding the infrastructure behind a successful business venture. As I read the book, I recognized my head constantly moving up and down in a confirming motion and if you listened carefully I am sure you would have heard me muttering “yes, yes, yes!” I had found my professional “kindred spirit”!

Successfully starting your own business is so much more than simply creating a job for yourself and Gerber beautifully describes the science and the mindset required to make the transition from employee to entrepreneur.

The E-Myth stands for the “Entrepreneurial Myth” and it accurately defines the misconception that so many people have about what their life will become if they start a business of their own. It insightfully profiles the three distinct personalities required to run a successful business venture: the Entrepreneur, the Manager and the Technician and the importance of balancing each.

Gerber passionately professes that the “system is the solution” meaning that without policies, procedures and systems of operation; well thought out and implemented, your business is really just a job and when you don’t show up, everything comes to a grinding halt.

It is the systems (the fundamental principles of franchising) that will set you free and position the business to operate independent from you; creating passive income, a powerful concept that applies to every type of business enterprise.

Like a good entrepreneur, Gerber has developed E-Myth spin-offs for Managers, Physicians, Contractors, applying E-Myth principles to these specialized fields.

On a scale of 1 to 5, The E-Myth scores a “High Five”!

As per the Gerber philosophy, make time each day to “work on” your business and not just “in it”. To continue ‘working on your business’, check out my articles entitled: “Winning Formula” and “Repositioning Yourself in a Changing Workplace” both found here on my website… Larry

Published by HarperBusiness, ISBN 0-88730-728-0

The nature of my business is change. Business owners come to me with problems and to solve those problems things need to change. My 15 years of experience as a Business Coach tell me that typically, 82% of the changes needed, come in the form of behavior and attitude (intangibles) while only 18% of the change businesses need center around product, technology, equipment and facility (tangibles).

Guess what, behavioral changes are the most difficult to achieve. We are creatures of habit and when we spend time and money to build something, we aren’t going to change it without a struggle. We develop sweat equity, muscle memory and mechanics that make permanent change extremely difficult to hold on to.

Try something as simple as switching your morning coffee from double/double to black or vice versa - yuk! You immediately go back to what time and repetition have developed into preference. We are just not wired for change!

Studies show that it takes 21 days to form a habit and unless you are extremely disciplined, determined and accountable to someone, you will quickly slip back to “the old you”.

You attend a 6 hour seminar with hopes of turning your business around. You leave the seminar pumped and full of optimism, then after 10 minutes back at the office with phones ringing, line ups at your door and deadlines looming, you suddenly forget everything that you just learned.

So is there a solution? Of course. Accountability, which breeds follow-through. Meeting with your Business Coach on a regular basis makes you accountable for the change that you commit to thus dramatically increasing your chances of successfully implementing new habits and creating permanent change.

And remember, when nothing changes… nothing changes.

Embracing change and positioning yourself to accomplish it is an art and a discipline. Check out my articles: “Attitude is Everything” and “The Benefits of Hanging in There” for further assistance here on my website or write to me personally… Larry

How you choose to “respond” in any encounter or debate; be it supportive or adversarial, plays an important role in determining the direction and quality of the outcome. Generally your posturing is either defensive or assertive, but when you assume that defensive position or take offense to questions raised, you send out a strong message that can invite your opponent to escalate to a more aggressive behaviour with renewed confidence.

Body language, tone of voice and the words that you use to respond, all contribute to the effectiveness of your ability to communicate. In today’s blog, I would like to share a simple response that I have found effective to disarm a passive-aggressive verbal engagement, give you a valuable split second to collect your thoughts and provide you with the opportunity to change the climate of the exchange.

There is generally someone in every group that I speak to who will challenge a point I make or question a direction that I recommend and I always validate the legitimacy of their concern regardless. I invite interaction and actually pre-assess my audience for these special individuals because they position me to prove my worth & value as a Business Coach and I find that body language and tone of voice are the key indicators from a distance.

When no one asks questions or challenges the points I make, I worry about their level of interest, commitment and their motives. Questions and concerns reflect interest and emotional buy-in so when they begin to surface I always respond in a positive manner with:

“That’s a good point. If I were in your shoes I would be equally concerned” or
“That’s a great question. Let me explain my thinking” or
“I appreciate your concern. I will be sure to cover each of those issues in this presentation”.

Then… I deliver!

Effective communication skills and professional development are vital to your success. Check out my articles: “Speaking of Public Speaking” and “Performance Under Pressure” both found here on my website… Larry

The Craft of Baseball By George F. Will.
As a Business Coach & Advisor I make a living pulling things apart to better understand them and improve them for my clients. I continuously make reference to and draw parallels between business and sport. George Will’s book, Men at Work could very well be where this all began.

Men at Work; written in 1990, examines the craft of baseball from each of its key positions (hitting, pitching, fielding & managing) and it is a wonderful example of the depth of ones learning potential when an analytical approach is taken.

I first read this book in 1991 with a highlight marker and have gone back probably a dozen times since to reference and apply many of the theories outlined to both my own life as well as my client’s challenges. One of Will’s analogies centers around the concept of “staying within yourself”, a strategy essential to winning and the first commandment of baseball. At first I found this concept curious but soon began to understand its meaning and how it could be applied to scenarios beyond baseball.

Will states that staying within yourself means “keeping your balance” and that “a player’s reach should not exceed his grasp”. This means not trying to do things that strain your current capacities and distort the smooth working of what ball players refer to as your “mechanics.” When you attempt to push yourself beyond your capabilities in any “game situation”, you risk losing a degree of control and in business that means your quality, service, reputation and customer loyalty will suffer.

Men at Work is one of those books that I can never seem to walk away from and always learn a new lesson from. A true Grand Slam!

Self assessment, professional development and continuous improvement are important best practices to extend your “reach” and this is just one of the many gems that Men at Work provides.

Professional growth & development can be exhilarating. Begin by checking out my articles: “The Intuitive Marketer” and “It’s a Business! Raising a Happy, Healthy Business” both found here on my website… Larry

Target Your Market
A healthy attitude towards the importance of advertising & promotion is critical to business success. Recognizing advertising as an investment and positioning yourself to anticipate and then measure the “return” is an important part of this equation.

I speak continuously about the impact of uniqueness in every aspect of a business operation. Your unique approach to advertising & promotion plays an important role in setting you apart from the competition and getting you noticed.

John Klassen of Precision Metals in St. Catharines, Ontario does a great job at demonstrating the impact of “uniqueness” in his approach to advertising from a grassroots perspective.

John is an incredible craftsman who specializes in custom architectural fabrication in brass, bronze, copper, stainless and aluminum. He is a one man operation and produces amazing work but his capacity is limited. Too much advertising resulting in too much activity will have an impact on John’s ability to deliver and could jeopardize the quality and consistency of his work. John recognizes this and in his first year of operation has created a simple promotional strategy that is visually outstanding, gives him loads of flexibility to distribute them within a budget and fits his “ability to deliver” without sacrificing quality.

With a clear understanding of his target market, John carefully selects the prospects that he wishes to approach. He has combined his Business Card with a Post Card, printed and perforated on glossy card stock with a collection of photographs that beautifully illustrate the quality of his work, providing him with a piece that can be mailed or distributed in person! The visuals are striking, there is just enough copy to leave the reader wanting more and I guarantee you won’t throw it away. Simple, effective and memorable!

Another key to its success is “positioning” – that is, simply placing it in the right hands and letting his work speak for itself. A impressive combination of two fundamental advertising vehicles that get the job done for John Klassen and Precision Metals. Bravo!

Advertising & Promotion play an important role in every business. My articles entitled: “Building Brand Awareness” and “Use Summer as a Marketing Tool” both found here on my website look closer at strategies to generate activity and build awareness… Larry

Using other people’s money as working capital to grow your business is a sound practice. Investor capital can be used in a variety of capacities to keep you competitive & current but what is it that investors look for in a possible investment opportunity?

The following four factors weigh heavy in the mind of an investor. Take the time to recognize and be able to elaborate on each of these aspects of your business. They collectively give investors valuable information that will validate their support and give them the confidence to get involved.

1. Uniqueness
Identify what sets your business apart from other similar businesses in terms of the products & services that you offer and even your approach to issues such as values, ethics and customer service as well as attention to detail. If you are no different than the competition, you give customers and investors no advantage to become involved.

2. Management’s Ability
A great idea in the wrong hands will go nowhere. Winning investor support means providing them with credentials and resources that reflect your ability to deliver. If you can’t make it happen, their investment is in jeopardy.

3. Diversity
A business with options is a business destined to succeed. Don’t put all of your eggs in one basket. Diversity in areas such as products & services, customer base, skill sets and accessibility will ensure your ability to survive adversity.

4. Market Potential
Examine the current position of your product life cycle, the market saturation point, the stability of your sources of supply and additional distribution channels to ensure there is enough to sustain your business and meet your long term goals.

Smart business owners use these four factors as the cornerstone of how they market themselves to investors and smart investors use them to assess investment opportunities.

Access to capital is vital in a competitive and changing marketplace. My articles entitled: “Using Diversity to Overcome Seasonality and Stabilize Sales” and “Putting a Price Tag on your Two Cents” both found here on my website look further into winning support and positioning your business to succeed … Larry

A Common Sense Approach to Web Usability, by Steve Krug
Don’t Make Me Think is one of the books in my library that I do not have in an audio version, but it is indeed a valuable resource and worthwhile read. Krug examines what drives people into a website and just as important, what keeps them coming back providing web page examples that illustrate the visual effectiveness of the principles that he outlines.

His philosophy is simple. You might say it is based on common sense, yet in our complicated world so many of us under utilize the power of simplicity and launch into great complex descriptions and self serving explanations. When people ramble and paint unnecessarily complicated pictures my first impression is a lack of true understanding and confidence on their part.

To fully and completely understand something, you go through a process that identifies the right words and phrases and you tend to know the easiest and quickest way to get your point across. Krug carries this out with perfection in his book and then applies this same philosophy to web design and communication.

As a business owner who acknowledges the need and potential impact of having a website that works, “Don’t Make Me Think” positioned me to more effectively deal with my web designer. I may not know how to actually build a website but I clearly recognize how the principles that Krug shares make a website more user friendly.

In a nutshell, Krug states that a website is more effective with less “clicks” and the more I have to think my way through a website, the more likely I am to lose my focus and wander off, never to return. He provides excellent visual illustrations of how he applies these principles to existing websites to improve them and you can judge for yourself – a powerful selling tool.

I have enough going on “upstairs” already so I can really relate to Krug’s philosophy of minimizing my “think time” and I feel it has paid off – Check it out!

Accessibility and communication are essential business tools today. My articles entitled: “Blogs, Wikis & Podcasts” and “www.greatwebsites.go” both found here on my website look further into the internet as a business resource… Larry

*Published by New Riders Publishing, ISBN 0-7897-2310-7

I recently heard an interesting perspective on improving your golf swing that I felt was very applicable to how you position yourself as a business owner. Basically the concept states that if you assume too tight of a grip on your golf club it will affect the accuracy and effectiveness of your drive.

I have seen too many business owners take that same “tight” stance to drive their business. The one thing in life that is constant is change and in order to embrace change more effectively you need to “soften your grip” on your business. In baseball they call it playing with ‘soft hands’. When I say soften your grip, I am not talking about compromising your best practices, principles and values, I am referring to keeping an open mind to new ideas and opportunity.

Often we work so hard and dedicate so much time & money into developing our business that the last thing we want to do is turn around and change it however, if the world is constantly changing and our business remains the same, we can easily grow away from our customers rather than evolve with them leaving us vulnerable to competition.

Customers don’t want to be sold but they do love to buy. The softer grip concept can accommodate specific needs and circumstances to create an environment that is more customer-driven. I’m not talking about breaking rules but I am talking about a willingness to bend them under the right circumstance to help people buy.

So as you “step up to your corporate tee” tomorrow morning, before you take that first big swing, step back, clear your mind, take a couple of practice strokes and oh yeah, don’t hold the club too tight.

Solid business practices build a strong successful business. Check out my related articles entitled: “The Inquisitive Marketer” and “Five Great Ways to Think Bigger than the Next Guy” both found here on my website… Larry

Making the Best “Event” Choices

I recently went through an “opportunity analysis” exercise with Rachel Spiewak, my photographer and client. She had been presented with a chance to participate in a trade show but wasn’t sure if it was the best way to invest her time and money so I assumed the important role of sounding board.

We began by taking time to discuss the show itself and then we examined the Pros & Cons of participation. I used a structured method called the “T-Analysis” where you take a sheet of paper, draw out a large capital letter ‘T’ and place the Advantages, Benefits & Opportunities on the left and the Concerns, Issues & Threats on the right (a page out of my SWOT Analysis article).

Your Twelve Topics for Consideration should include the following:

1. Does the event attract your target market or provide new market exposure
2. Is the timing right for your business, your industry and to attract attendees
3. How will it be advertised, how large is their advertising budget and where will your name appear
4. Is a Media Partner involved – a sure sign of public awareness & exposure!
5. What are the past statistics – Number of Exhibitors, Number of Attendees
6. How many Exhibitors are returning
7. Who is handling the Show Promotion and are they “Event” professionals or volunteers
8. What other events have they promoted – Look at their Track Record
9. Will you be exclusive or will your competitors be participating
10. What “other opportunities” exist for you as an exhibitor ie: demonstrations, seminars, ticket agent etc.
11. Will you have access to the both Exhibitor and Attendee Data Base
12. How you will measure success - in sales, leads, exposure, credibility, etc.

As discussed in an earlier blog (search “Decisions, Decisions”), your ability to deliver is essential and a solid structure for your decision making will position you for greater success.

Solid business practices build a strong successful business. Check out my related articles entitled: “Improve your Decision Making with SWOT” and “Five Great Ways to Think Bigger than the Next Guy” both found here on my website… Larry

This marks my 30th Blog post. I met with my newest client, Annette Roethling from Kiwi Advertising who specializes in the Jewellery industry last week and she commented, “Writing a blog must be a lot of work” and quite frankly, I hadn’t actually thought about it in those terms. It does require time and thought but the whole blogging experience has offered so much in return that “time” had not been looked at as a critical factor.

This prompt by Annette got me thinking and it helped me put my blogging efforts into perspective. As always I turn my focus to “Return on Investment”.

I primarily see my blog as a marketing tool. It is my virtual storefront that allows me to showcase my ‘merchandise’. The result of which educates the “consumer” as to the impact of my collective services that include Training & Coaching as well as personal and professional growth. But what really drives me is knowing that these resources work, that my blog is a problem solving tool, that when applied and monitored the advice that I dispense has the ability to make a difference and that the “return” is as significant for my clients as it is for myself.

Blogging through The Business Strategy Workshop is my way of contributing to the success of small business owners who make up 98%* of the businesses in our country. Our economy is driven my small business and I feel a responsibility to share what I have learned and experienced.

Sure my blog results in business opportunities but that’s what happens when you “give” and that, in itself is an exciting philosophy to live and work by.

Make your personal and professional growth a priority. Check out my articles entitled: “Winning Formula” and “The Inquisitive Marketer” both found here on my website to get things moving… Larry

*Small Business Club Niagara, www.sbcn.ca