What Type of Business Are You In?

Have you ever been asked, “What type of business are you in?” How did you answer it? Was your response the same standard and customary “we sell widgets” or “we provide this type of service”? Delivering the same type reply, time and time again, has become second nature.

What if that same individual asked you this question instead, “How did you grow your business”? How would you respond? Not as easily to respond to, is it? It’s definitely not a normal question you would expect to hear.

Is it possible that the answer to each of these questions could be the exactly the same? Sure you could easily say “By selling widgets.” But is that the truth? You built your business by selling widgets?? Unless you have a very unique product or service that no one else has, the product or service typically isn’t the reason that most small businesses grow. Well, if it isn’t the product or service, what is the answer?

How about this, “I am in the RELATIONSHIP Business!” or “I grew my business by building RELATIONSHIPS!” Now, does that sound more realistic?

No matter what business you are in, it all comes down to building relationships that you can nourish and foster over a long period of time. Ask any business owner if they would prefer a large one time sale or multiple smaller sales over a long period of time. I would be surprised to find very many owners say they would take the large one time sale over the duration of smaller sales. Steady and consistent sales are the foundation that helps grow any business. Not only will those individuals continue to business with you, but most likely, they will refer others to you and, if you build a relationship with them also, they too can become long term customers.

If I could give one piece of advice to small business owners on starting or growing a business, it’s not what you sell or provide that is most important, it’s the relationship you develop with your customers or clients that is essential. Relationships will grow a business faster than anything.

That’s why I find it ironic that Bank of America Corp. announced this week that it would launch a new program to improve lending and services for small businesses. Bank of America is the largest bank holding company in the United States, by assets, and the second largest bank by market capitalization. It serves clients in more than 150 countries and the second largest non-oil company in the US (Behind Wal-Mart). In 2010, Forbes listed Bank of America as the third largest company in the world.

According to CNN Money, the program requires Bank of America to hire 1,000 small business bankers over the next year that would focus on companies earning less than $3 million in annual revenue. The first wave of bankers will be added in Dallas, Los Angeles, Baltimore and Washington D.C.

I guess my first question is, where has Bank of America been all along with small businesses? Why are they just now deciding to hire 1,000 small business bankers? Are they going to try to hire someone with experience in small business or are they just going to hire another banker and give them the title? Let’s put it into perspective, if they are the second largest non-oil company in the US, behind Wal-Mart, how has Wal-Mart helped you as a small business owner over the last 2 to 3 years? What makes you think Bank of America has had such a sudden “change of heart”?

As I stated above, relationships will grow a business faster than anything! That’s not to say you can neglect several other factors that are important to owning and running a successful business. Having established goals, a detailed plan on how to get there and the ability to see you as the CEO of the business and not as an employee are crucial to being successful. Having an established relationship with a good CPA, a true small business banker and a successful Business Coach are vital to ones growth and success.

Having a trusted connection to such professionals could mean so much more for you and your business. These individuals should be wealth of knowledge and experience in their own areas. I am very fortunate to have established relationships with two first-class and reputable business bankers; Heather Hurd with Frost Bank and Guy James with Community Bank. I have no problems referring business owners to either of these professionals. They both have huge hearts and want to see small business owners grow and succeed.

A Business Coach should be on your team as well.

Why is coaching so necessary and beneficial? Because there is always a gap between where you are now and where you want to be, both professionally and personally. The larger the gap, the larger the need for coaching. Furthermore, most owners DON'T have clarity about their future, let alone clarity about where they are right now...the good, the bad and the ugly. They have blind spots. Besides, we all play mind games of denial and seldom have the discipline to face reality and accept the truth on our own. That is how we get into trouble...we don't confront our problems or opportunities! An effective business coaching process will help you face and accept the truth...about your strengths, talents, weaknesses, opportunities, and threats in all facets of your business and life.

Business coaching will also help you gain clarity about where you want to go. A proven coaching process will help you clearly define the outcomes YOU WANT, develop an action plan, hold you accountable for achieving those outcomes, and also help you tackle any limiting beliefs that might be holding you back from taking the right actions. While such a strategic-focusing process is powerful by itself, it is the on-going accountability and support that truly helps owners to change mindsets, behaviors, habits and results. That's how you achieve real and lasting change.

Don't worry, true business coaches, like The Growth Coach, will not tell you what to do or how to do it...that is old-school consulting. You are the expert in your business and industry; you don't need someone telling you what to do. Besides, you never want to give your power and responsibility away to anyone else. Isn't that why you became your own boss in the first place? As it should, business coaching puts you front and center and helps you discover the right answers and solutions for you and your business.

In the end, with the Growth Coach process, our clients have greater awareness and clarity about where they are and want to go, possess a strategic and focused action plan to get there, and receive on-going accountability and support to make critical adjustments along the way to stay on track. Each client fills out our proprietary strategic planner and they review and update it every 90 days in order to make on-going refinements and course-corrections to get them closer to their dreams and goals.

Aren't you ready to make more money, experience more fun, and gain greater freedom and free time? Is so, take action below:

To see if you could benefit from business coaching, take our five-minute, confidential, on-line assessment.

Nobody sees your answers but you. You will be glad you took the time.

Who Becomes Wealthy?

I’m currently reading a book by Thomas J. Stanley titled The Millionaire Next Door: Surprising Secrets of America's Wealthy. The book is based on more than a thousand individuals participating in a survey spanning for almost a year. The survey questions target areas such as household budgeting, financial fears, acts of kindness, purchasing and more. There were a total of 249 questions all together. “Who becomes wealthy?” Stanley asks. “Usually the wealthy individual is a businessman who has lived in the same town for all his adult life. The person owns a small factory, a chain of stores, or a service company. He has married once and remains married. He lives next door to people with a faction of his wealth. He is a compulsive saver and investor. And he has made his money on his own.” Stanley gives emphasis to that “Eighty percent of America’s millionaires are first-generation rich.” Stanley explains his discoveries as “building wealth takes discipline, sacrifice, and hard work.”

I find this book to be very interesting in the fact that many of my clients state initially that they are working very hard and sacrificing a great deal to their business. They feel like they are giving as much as they can and don’t seem to be getting anywhere. They often describe it as “being a prisoner to their business”. They sometimes wish they had a “job” instead of “owning a business”.

No matter what industry you are in, you should not be a prisoner to your business! If you are, you have it backwards. Your business should serve you and your dreams. It should give you greater freedom, not less. In fact, your business, properly designed, should function practically without you, not because of you. It should run predictably and automatically whether you are in the office or not, in the store or not, out in the field or not, on vacation or not. Your business should not depend upon your presence, personality, problem solving and perspiration for its daily survival. If so, your business does not work, you do!

Bottom line, you should run your business; it should not run you, your family or your life. Your business should work harder so you don’t have to. It should be systems-dependent and not owner-dependent or expert-dependent for its success. It should have its own heart, mind, and soul – it should not steal your vital organs and spirit!

Stop for a moment and think of the consequences. If everything in your business flows through you and is dependent upon you, then you are restricting dramatically the growth and profits of your company. As a single human being, there are natural limits to the amount of work, transactions, problems, and decisions that can flow effectively through you in a given day. Stop being a bottleneck or clog. Otherwise, you will continue to restrict the potential of your employees and business and ensure your persistent exhaustion. Stop missing out on greater personal freedom, money and happiness.

Let me be very clear, you are the expert in your business and industry. I am not and will never claim to be. My expertise is guiding business owners to unlock greater potential in themselves and their businesses. I coach and mentor owners/managers, like you, to define clearly and then reach their business and personal goals. To implement the changes they desire. I guide owners to become more effective, focused, productive and strategic. To face reality, identify solutions, and help them stay on track. I help overwhelmed owners/managers to work “on” themselves, “on” their businesses, and “on” their specific issues, opportunities and goals.

If you would like to achieve greater freedom, fulfillment and financial returns from your business, and move closer to becoming “The Millionaire Next Door”, please contact me.