Business Coaching 101

Several years ago I remember working through a number of issues that I knew could be solved by some of my peers if they just would get involved. I was facing financial meltdown because our company funds had a greater outflow than inflow. I was not even sure where my office rent was going to come from! For those who know, this is not a fun place to be!

This is a story that can be told no matter where you live.  It’s not easy coming up with solutions like these. Sure I could rely on my peers to bail me out and more than likely I would have been in the same situation all over again. Just like anything else in life, the things you fight for are the things you keep. That’s not to say everything should be a fight, its just that when you do actually work through something you have a sense of accomplishment and look forward to what’s next knowing that hurdle has passed. I remember working at my old company right after September 11th and thinking that I was going bankrupt for sure. I remember sitting in my office working out the issues and trying to figure out the best way to find a solution. The more I did, the more I felt pity for myself and then focused on the problem which obviously does no good at all. Then walked in Owen, the owner of the building. He said: “How is it going in here?” I told him the story and my bleak outlook on life. I also had to tell him I wasn’t sure how to pay rent which for the record is the worst thing to have to explain. He looked at me and smiled then he said:”I’ve been down that road, I know you will come up with a solution. Just stay here and lock yourselves in until you come up with a plan.” Then he just walked away. At the time, I’m not sure if he understood my situation or if he was being mafioso by saying: “I know you will come up with a plan”. Either way, I was destined to find a way.

There was a contract that was sitting out there for almost $40,000. I had been trying to get these guys to agree on terms for I don’t know how long. I was determined to find a way to get something going. I worked relentlessly and as a result, I not only closed them I also got 2 other contracts as a result of me tirelessly pursuing a deal. I solved my cash problem but still needed to understand why I got there to begin with. Now that I was able to go back to Owen and pay my rent he looked at me and said: “See, I told you”. I smiled nervously and thought “You have NO IDEA!” In reality, I’m sure he had every idea since his company started out much like mine and he has had his share of problems. At the time, its hard to see others problems when you have one right in your face.

Back to the real issue, My cash flow was crazy! I had people spending money that was stupid! We were paying for $20 services here and there for whatever reason. I tried to go through it all but it was too much so I called the bank and asked for another card. They cancelled the one everyone had on file and then came the calls. I screened each vendor one by one and was able to reduce my outflow by 30%. This kept me in business and its a lesson that is was able to work through. I’m sure your stories are smilar.

One thing is true, I don’t care what business you have. If you think that running a business is home free, no one telling you what to do, being your own man or whatever pipe dream you tell yourself… None of it is true. Its 1000 times harder than what you think on the onset. Rest assured its possible only if you apply yourself. Owning a business is about trading one problem for another. The success of your business is  directly related on how well a problem solver you are.

And that is food for thought… jm

I have talked to a number of individuals who have been thinking about starting a new business over the past year. Starting a new business in a great economy is still scary much less if companies are failing all around you. I personally have found that the old saying is true: “What doesn’t kill you makes you stronger.”

There are a number of market fundamentals that are showing signs of recovery. In the past I have been overly optimistic and just because you want things to improve does not mean they always will. I am looking at a number of factors that lead me to believe we are on the road to recovery.

What’s changed??

As much as many of you would like me to say it was/is the Obama Administration, I think that had a role to play but all credit can not simply go there. Take into consideration that our previous bustling economy  had plenty of money.  Most individuals have very little financial education and as a result they overspent. Combine that with the fraudulent practices of those in some of our biggest companies. It was a recipe for disaster.

It had to get worse before it got better. As such, we saw some of the most stable (or what we thought were stable) banks in America crumble right before our eyes. No doubt this is what our grandparents saw in the dawn of the great depression. Thankfully we had people who had studied the Great Depression in great detail and planned accordingly. As it turns out we all own 34% of the world’s largest bank.

Now don’t read this yet thinking we are out of the woods. Think of it as we were falling at terminal velocity and now we are just happy that we found our parachute. Meaning, we are still falling as the new unemployment report today shows. We are just not falling as fast. Last week we were told that GDP was at -1 from -6. Folks, thats STILL BAD. I feel that it’s just been such a crappy market that we feel any glimmer of positive news is good.

Take all of this gibberish I just pooped out on this blog and throw it on the wall to see if it sticks. I think now is the time to be bullish on the market. When I say market, I mean all you MAIN Street guys not you WALL Street guys. (I’ll save the wall street talk to a later post.)

If you are a Main Streeter then I suggest you get your butt moving and make it happen. Get your business up and as consumer confidence creeps back up you will see slow and steady growth. If you are growing even at at rate of 1% that’s still growth! Chances are if it’s a slow growth then you have less volatility.

Most of you will want to start businesses out of some sort of emotional passion that you have had. Maybe you have always wanted to start a Bar or a Wine shop or a Restaurant. Before you do, analyze what the rate of return is on that business and how consumer confidence will affect your model. Also look at your business competition and get an idea from them if this is something that is cyclical. How will you survive on the valleys? Do you have enough liquidity to push thru to the other side?  Sadly, most don’t because they made their decision on an idea that it would be “COOL” to have this business. Just make sure that it’s a true need and you are doing something clearly different than everyone else.

If you figure out all these details then I am sure that you are on the right track. I think history will soon repeat itself because we have not solved the core of the financial crisis. FEW PEOPLE HAVE FINANCIAL EDUCATION! If that is you then I suggest you do something, even if it’s just reading a book. Einstein said: “compound interest is the greatest invention of the 20th century.”

Perhaps its still will work in the 21st century? If you were going to get something moving, I would start now. Just my $0.02. So as it happens again remember as people get more money in their pocket books, they will no doubt spend at a faster rate. Hopefully this latest cash crunch has taught us all a lesson both on the public main street sector and even with the big boys in wall street.

ORIGINAL POST: www.mckane.com/blog

I suppose in any realm, if you want something to be done you need to find a way to convince those around you that your issue needs the most attention. I sometimes think that we get caught up in this idea of running a business or making just enough money on the side that we do little research to see how our proposed client base will purchase.

I have been guilty of this many times. I remember a time where I would simply start an idea because I thought it was cool and my gut would say it sounded like a business idea. The only problem was I had an untrained gut! I trusted the wrong source.

I found one of the best ways to determine if your business is going to survive is to find a call to action. The way I did it was ask questions. For instance, I have been working on a new idea called TERRAMARKER.com. You can visit the site, get a login and request a custom aerial image anywhere in the DFW metro-plex. Now this idea is cool and maybe even nifty. This time however, I decided to ask around to see what people wanted. The results I received were very helpful.

In the aerial photography business, a good number of your clients are going to be brokers. Which also means (sorry no offense) that they are cheap, and even after your cheapest price they will still try to get you even lower. There are always exceptions but as a whole this is true because a broker only gets so much for the transaction of a property and they might not close meaning they might not make their money back.

So I took to heart this idea and I decided to come up with an idea that would make their life easier. I listened to them complain about other photographers and I also listened to them talk about the things they wish they could have. Thus TERRAMARKER.com was born. Of course it’s not fool-proof right off the bat but what new idea is?

Now that I understand this call to action I can build this business with brokers in mind. They can get a free account, access an aerial map and select the building in which they would like to film. This of course is done at a fraction of the cost most photographers charge and brokers can schedule something without the need to get on the phone and call us. It’s all automated.

So do your research and come up with a good way to determine that call to action. I promise that once you find a way to answer questions that your clients are asking, you will find running a business is that much easier. Also, try not to make it to complex. Remember that you have had probably months or even years to contemplate your idea and most buyers will listen to you for about 15 seconds and they glaze over. Give them the simple explanation and the call to action why you are in business then see what happens from there. I think you will notice that you will bring in more clients this way.

Original Post: www.mckane.com/blog