THE POWER OF FINANCIAL MANAGEMENT

It’s time to unroot the truth about entrepreneurial failure - Lack of Financial Responsibility! After many years in working with business owners from all walks of life, in all kinds of industries, of all ages and nationalities, I can finally and safely pinpoint the #1 reason why small businesses don’t sustain. The failure rate of all business start up’s is directly linked to the common theme of financial avoiders. This year I want to urge you all to become an excellent money manager. This will be your insurance to success!

I have the ultimate pleasure of meeting hundreds if not thousands of business owners every year from a diversified range of industries and with little similarity of their demographical profile. Yet they have a couple of things in common:

Firstly they are truly passionate about what they do. Typically they share very high work ethics with an undeterred commitment of trying to be the very best they can, hoping to turn their passion into profits. And that is where it gets tricky! Profits! I would say 9 times out of 10 when asked, entrepreneurs have no definite figure of the amount of money they made last year, last month, last week or even today. We are talking only in terms of revenue. I have not even asked about profits, yet.

Lots of business owners are trying very hard to create a financial goal for the year because they have heard so many times the importance of goal setting. So now they have a target but they have no means of measuring against it. I want you all to know, this is true for most business owners. Everyone is so busy with worrying about attracting a client, acquiring a client, retaining a client as well as the day to day operation and administration, that they feel they can’t take on the worries about the financials as well.

Reading this I truly hope, you are currently having an AHA moment. Because when you look at the order of importance of running a sustainable business, finances are right up there with clients acquisition and retention! So why don’t they pay more attention or give some focus to it? Well, I have asked many and some of them are scared that the financial rewards do not reflect the hard work they are putting in, some of them think there is not enough money yet to manage, and some of them simply don’t know where to start.

So for those of you who are scared, let me tell you it is much more stressful not knowing rather than having the control. And if you really are not making enough money to warrant the amount of time you are investing, you will want to know about it, so you can make changes to your business model.

For those of you who think there is not enough money yet to manage, that is a terrible excuse! Get into good money management habits from the start. You still need to know all the aspects of the financial situation at all times so you can measure, learn and adjust as necessary.

And for those of you who simply don’t know where to start, there are tons of resources and professionals who will support you as much or as little as you need and can afford. But ignoring it altogether, will come and bite you big if left undiscovered.

Now that you know the importance of managing your company’s money, you clearly have two choices, ignore it and become part of the statistics or control it and become successful in your business.

Get in touch if you need help with finding the right professional connection or resources to make you an excellent money manager. It’s all about the profits because profits equals money and time to do what you want to do and not what you have to!

Yours in business & life,
Conny

THE POWER OF BACK-UP

As entrepreneurs there seems to be a common misconception that you have to prove that you can do it all by yourself. Asking for help seems either like a sign of weakness or an expense, you’d rather do without! Even while I am writing this, it seems ludicrous. So make 2011 the year you leverage the power of a team to get ahead faster, more lucratively!

I am not sure about you but I am a true believer that you will get out, what you are prepared to put in. Now there are only so many hours in a day and days in a week that will restrict this equation for you. By doubling the effort, you will double the results, right? Right! By quadrupling, you will get 4 times as much back. True? True! So why are you still trying to be all things to all departments?

No doubt you are talented, passionate and knowledgeable in your industry and there are areas within your business that are not your strength or lay outside your capabilities. So doesn’t it make sense that you cover those areas with additional professionals before you run into trouble or get stifled in moving forward because you are trying to figure things out by yourself instead of asking for help?

Let me highlight by sharing a recent true story: A new client in the data services industry had been doing well in establishing and growing her business. She put in long hours and lots of energy to provide the very best service to her clients. Over 3 years she spent endless hours of delivering incredible value and was consistently improving on her services.
One day her computer played up. She had never backed up and realized she had no IT support. @#^*!  She had no maintenance package and could not get anyone to come out for days to see what the problem was. When after THREE days she finally managed to get someone out to take a look.

Now imagine the same client signing up from the start for a $50 monthly IT maintenance package which offers data back-up services, telephone support and training. Do you think the ongoing investment of $600 per year would have been a better strategy than playing Russian Roulette with her data? Not only did she loose three days of earnings, all of the clients data and in turn her entire client base due to neglect? In fact, she can count herself lucky not to have been prosecuted because of her negligence!

If she had invested in IT support from the start, the problem would have never developed or at the very least she would have had her data backed up with a mirror image of her computer at regular intervals saving her from loss of earnings, loss of clients and loss of reputation?

Don’t leave yourself open to this type of vulnerability and do start looking to fill the weak areas in your business with additional professionals, either employed or subcontracted. Strengthening your internal and external team will put you ahead of the game and save you from devastation when you could have had the back-up!

Lets work smarter in 2011!
Happy New Year,
Conny

THE POWER OF COMMUNICATION

Despite a wide array of books and courses on the subject of good communications, people are still struggling to communicate well within their personal and professional lives.

With the festive season fast approaching, this time of year can prove to be challenging if high expectations of spending quality time with loved ones are not met due to miscommunication which can lead to possible arguments.
Maybe higher stress levels due to increased workloads and fast approaching deadlines at the office have caused a break-down in communications among colleagues. Sounds all far too familiar?

Many books and courses have been created around the subject that one should think we are all masters in effective communication by now. Yet so much more work needs to be done. We all find ourselves daily in the midst of written and verbal conversations, trying to read and understand situations and then respond appropriately.

Sometimes these conversations start out harmlessly and seemingly basic in content. Suddenly one thing happens and a situation can escalate to the extreme. No more!  We all want to get along nicely and put our energies into the things that really matter. So how can you avoid disappointments or misunderstandings caused by communicating with others?

A really crucial part is to think before you speak and double think before you put something in writing. So much damage could be prevented if more people gave proper consideration to the power of the word. Therefore start with yourself and stop, consider and then speak with the right intent. A point can be made in many ways, but it is your choice of HOW you are going to make it.

Avoid to assume anything. Ensure you ask and check instead of making false assumptions. I am sure you can remember a situation that you have ‘misread’ due to not properly investigating but simply assuming. This can have a detrimental effect on you and your relationships with others. Therefore make it your mission to ALWAYS get the facts before reacting.

And last but certainly not least, never take anything personally. This is a tough request that will save you from much unnecessary heartache. Situations and people’s actions are self conditioned and not due to anything to do with you. So stop searching for a self defined reason, accept the situation for what it is and move on. If you ALLOW yourself not to take anything personally, you will be free.

Take those key lessons with you into the festive season and practice them on your loved ones. I trust you will find that this year, misunderstandings will simply not develop because you are practicing the mastery of good communication. Then take this with you into the New Year as you go back to work. If you think before you speak, assume nothing and don’t take anything personally, your 2011 will be blessed.

A peaceful Christmas & a prosperous New Year,
See you then,
Conny

THE POWER OF EXPECTATIONS

Recent events have led me to want to share this true story with you. Do enjoy the content but this time, your feedback is much needed. So read on and participate:

It happens from time to time that as an Angel Business Consultant to savvy female entrepreneurs I open my much cherished Rolodex to make an introduction to third party providers.  In my practice, I focus on my area of expertise in sales and marketing but bring on other professionals for services such as HR Consulting, Finance or IT. In order to provide a fully supportive environment for existing clients, these providers are offered the opportunity to complement and work within a strategic framework whilst assisting to stabilize and grow an existing business venture.

For me as the main supporter and long term partner to my clients, making those connections is huge.  A lot of trust and preconceived expectations precede the first introduction. Like any other business, my clients are much cherished and carefully looked after. Therefore placing them in front of another provider, the expectation of professionalism, top service and ongoing communication should be very basic requirements. Well and of course, a thank you is always kindly received and the reciprocal notion of offering something in return even more so.

One of my longest standing clients who have enjoyed a very rapid growth phase, needed financial control services and assistance with budgeting strategy. When your business grows at such a speed, getting the right professional assistance is most important and whilst we recognized this need, I introduced a person who I thought would fit the bill.

In the beginning it was agreed that the provider would get caught up on the financial details and make up of the business before any analysis and planning could be done. However after three months we still did not have the necessary financial information, essential for the strategic planning for the next quarter. When connecting with the service provider, there was reluctance and defiance with no intention of putting things right.

I was shocked! How could this be happening? Maybe I needed to properly intervene to get the promised results that had already loyally been paid for by my client? I decided to put in a firm but nice phone call to get to the bottom of it. Instead of an explanation or a desire to put things right, the provider refused point blank to assist or cooperate. They deflected all responsibility, had cashed in the $4,500 and failed to provide the service they had agreed to deliver.

Now what? I felt guilty for having made the intro in the first place and this third party provider let my client down and me as an alliance partner. What do I do?

Do I contact BBB to advise them of the situation?
Do I encourage my client to take legal action against this provider?
Do I stop making future introductions?
Do I from now on have to manage the relationships with third party providers?
Do I need to adjust my expectations?

I am at a loss and need your objectivity! What are your thoughts? Email me cmillard@mcgbusiness.com. You may even have a similar story to share. Either way I would love to hear from you.

Connect and share,
Thank you in advance.
Conny

THE POWER OF CLARITY

A very common challenge among business entrepreneurs is the ability to have a very clear focus on what they are specializing in. Many times I have met with business owners who run a company alongside seemingly unrelated sideline offerings.

For example, a personal coach providing budgeting services, a child toy retailer offering hosting & design services for e-commerce sites, a HR consultant offering social media training  and so the list goes on.

It is almost as if the entrepreneur is not fully convinced of their own ability to make the one business model work, therefore wanting to keep other options of potential revenue streams open. Or having to choose and then commit to just one model, they might be concerned of missing out on opportunities, they know they could also deliver and get paid for.

Whatever the reasons, running with a number of unconnected options simultaneously will put an entrepreneur into a tailspin, weakening their power to succeed by not focusing all their attention and impact on one business model.

The companies that grow rapidly and reap the most rewards are the ones with a very clear understanding of their core products and services, knowing exactly which markets they are specializing in.
Once they have created significant market share, they then consider expanding their offerings into existing channels with complementary solutions to the core or broaden the markets they are targeting. Either way it is always with a very clear focus on just the one business model.

For moms in business this is even more important as the demands on your time are already divided between family and business commitments. Therefore trust my recommendation of choosing just one business model that you love and want to grow. Target a minimum of two markets and a maximum of three at a time. Ensure you stick to a specialist selection of core products and services until you have created the market share you need and want.

And then..., watch how your clarity turns into prosperity!

With this wishing you all the best until next time,
Conny Millard

THE POWER OF RESEARCH

How often do you take the time to really research products or services you are about to chose for yourself, your family or your business? Are you typically led by a) gut feeling, b) someone’s recommendation or c) by marketing messages?

And does the significance of the purchase impact the thoroughness or the time you spend, to look into your options in greater depth? Have I got you thinking yet?

I have just conducted a search for my very own business adviser knowing how powerful and driven objectivity, strategy and accountability can be! Everyone who is determined to really achieve great things, will need a mentor or adviser by their side, me included.

In the past, I have had a couple of different coaches who came to me through recommendations. I respected the people who connected me up with them and therefore felt that it had to work. Big mistake!

Not only is each individual ‘business’, or ‘life’, or ‘both’ coach fundamentally different in terms of experience, expertise and market knowledge but also their methodologies differ greatly. So going by someone else's recommendation might not work out very well as they are dealing with their own challenges, looking for a great fit that suits them.

Considering to rely on marketing messages is equally difficult. Business advisers are like great school teachers. Depending on your learning style and personality preferences, you will like a certain PERSON rather then the entire establishment. Therefore the marketing materials promoting certain methodologies or tools are irrelevant as it really comes down to the individual who delivers the content.

This leaves going by gut feeling! Now the only way you are going to be able to make the right decision on the best partner to create your financial and personal wealth, is if you are happy to be very thorough in your research of the options that are open to you. There is no quick fix or make do attitude that will find you the perfect individual with the right tools, the most relevant expertise and a nicely gelling personality.

If you have decided that you really want to achieve great things and you are committed to investing into the necessary indulgence of an adviser, then you can not cut any corners!

Be very clear from the outset what you need and what you are looking for, then take your time to thoroughly research your options and give many advisers the opportunity of introducing themselves and their practices. And then....listen to your heart! It will tell you instinctively what will be the best fit for you.

So, GET CLEAR, RESEARCH WELL and then, GET GOING! See you at the start line.

Conny

THE POWER OF DISCOVERY

When was the last time you took some time out and indulged on a quiet, self finding journey all by yourself, very peaceful with the purpose of carefully discovering the inner you? Perfectly identifying your next steps, your own strengths and your personal and professional goals?

Well if you are like most people, you will not get much of a chance to claim this special time. Yet, without it, you continue on being very busy, emerged in day to day stuff and every now and then stopping to come up for a quick breath and realizing:” This is not the life I had envisioned for myself!” or “I feel stuck and unsure of my needs and wants!”

I know I am digging a little deep, here but I have just undergone the most self indulgent journey in the past three months. In the midst of my commitments, I had this AHA moment, that if I did not take the time to regroup, I could not identify or get to the place, I want to be!

I have now learnt that the only way we can deliver the results that we want, is by taking ourselves on that journey of discovery. However long and through whatever means, once you have taken it - you will be overwhelmed by the deep realization, clear vision and incredible energy that will be unleashed!

What does your intuition tell you? Do you have it all figured out? Or are you sharing the pain of fuzzy, even muddy vision? Then do something about it!

Let me share a quick story to highlight:
A very good and young friend of mine has been in business by herself for over two years. Although struggling with typical entrepreneurship, she decided to open a facility. Something she had always dreamt off even as a little girl. The first time I visited her, she had broken down! She felt, that she had taken on more than she could handle and felt trapped by her own decision.

Eventually the only think for her to do, was to take a trip away, by herself, to get some objectivity and clarity back into her life. When I went to see her again, she was simply radiant. Her order book was brimming, she had taken on 2 new members of staff and introduced three new profit models, making her money hand over fist. 

She now takes off two days in the week. When speaking with her about this unbelievable transformation, she just responded:” The time I took out was a true journey of discovery. Once I encouraged myself to listen to the inner me and become quiet enough that I could finally hear that low inner voice, it all became so very clear!”

Now, this is your permission slip for yourself to do the same. The most powerful transformation and deepest clarity will come by allowing yourself the journey of discovery!

After that you will be ready to give me a call so we can build your business together!
GO, INDULGE!