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The Best Biz Mentors Can Be A Tad Crazy

My Dad

I reckon my first business mentor was my Dad. He started his own business, working from home, because, like many people I know, it was the best way of earning a living. His health was very poor so he had to pack in his job. In the five years between me being 13 and 18, when he died, he built a very big business. It was always a micro business, like 95% of the businesses today in the UK.

It became big in income but never had more than six employees. It was a sales agency in the wooden box and pallets industry. Many years later, when I started my own business, I realised that nearly everything useful that I’d learned about enterprise had come from my Dad as my business mentor.

He was an unlikely ace business mentor. My Dad left school at 14, picked everything up as he’d gone along, and was a complete eccentric, a showman and a storyteller who instinctively turned anything formal into a party. At football, Hull City, he had a seat just behind the Directors’ box so that he could hurl abuse and one-liners at them from start to finish. I wouldn’t sit with him.

Corporate Crackers

The point is that what I’d learned in Senior Management, even Managing Director, at two major American multinationals didn’t help me much in my own business. This was despite having received the very best business training and completed two Post Graduate Diplomas in HR Management and Business Administration. All this was next to useless in my own micro business as against the valuable help I gained from my mentors.

My business partner of twenty five years, Clare, felt the same thing. She hadn’t realised it at the time but her corporate jobs and training hadn’t prepared her for running her own business but what she’d learned from her Dad, who had his own property business, was invaluable.

No surprise then that we decided to have a mentor, another micro business owner, for our first couple of years in business. We gave him our corporate contacts and in return he asked us wise questions which stopped us doing many of the foolish things we were about to do. No money exchanged hands although a heck of a lot of money went behind the bar during our, frequently scheduled, mentoring sessions.

Sitting or Standing Up Mentors?

One of the many theories I have, which perversely academic research and government policy has yet to pick up on, is that if you’ve got a primarily ‘standing up’ business you’re best to have a mentor that has a ‘standing up’ business too. ‘Standing up’ businesses would include most building trades, cafes, shops, blues bands, chocolate makers, ice cream makers and micro-breweries.

Similarly if you’re in a ‘sitting down in an office’ type business then choose ‘a sitting down in an office’ type mentor. I’m definitely not saying only get a mentor from a similar trade or industry, only government and BigBiz think in sectors, but do get someone who really understands what you have to do each day.

Oh and beware of men in suits if you’ve got a ‘standing up’ business’ or you’re a woman. I’m sure there are exceptions to these rules of mine for choosing a mentor but there won’t be many.

Sir Jimmy Fixed It for Us Every Day

Wrestler, DJ, marathon runner, TV presenter, volunteer hospital porter and the greatest charity fund raiser of all time, Sir Jimmy Savile, died recently. He was buried in Scarborough, where I live. Thousands turned out to acknowledge his real achievements for the people of Britain both at his service in Leeds and his burial in Scarborough. He was truly a man of the people, an inspiration to many of us, and the very same person on the telly as he was in the cafes and streets of Scarborough.

He made us feel better about life and he genuinely helped many thousands of people through adversity. He was eccentric to the last. He was buried in one of his trademark track suits, in a gold coloured coffin placed at an angle in the grave, so that he ‘could see the sea’. He was also a highly successful micro business owner, millionaire and a cracking volunteer biz and personal mentor.

Two of his proudest possessions were on his mantelpiece in his Scarborough flat. They were individual letters from Princess Di and Prince Charles thanking him for his help to them, as an informal mentor.

Lots of my business owner friends seem a bit crazy. The craziness is often just appearance and behaviour that shows we’re our own boss with our own values, passion and beliefs. Some can wrongly view this, like Sir Jimmy Savile was viewed, as not professional or not to be taken seriously. We are passionate about what we do and it’s bloody hard work doing it but we can be very useful business mentors too.

Get Mentoring

My businesses have benefited a great deal from the handful of business mentors I’ve had down the years. Most of the mentoring I’ve had is over the phone or nowadays by Skype. I usually contact my mentor when I’ve got a problem or see an opportunity that I want to talk through before taking a decision. I’ve also had a great time and learned a lot as a mentor to others. I have had some training on being a better mentor and I’m going to do some more shortly.

There are lots of places around at the moment where you can find a mentor or get some training to become a better mentor yourself. One such place is the Institute of Enterprise and Entrepreneurs, which I help run, and you can find out more here about Get Mentoring – free mentor training and free mentors.

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Life’s a Pitch and then they buy

As a small business you know that every communication counts. When speaking with customers, suppliers, investors, competitors, or peers, the way in which you present yourself and your business will have a lasting impact on whether or not they do business with you, or in the case of competitors treat you as a genuine threat or potential collaborator.

Thinking of your business communications as ‘pitching’ may for some appear a little salesy yet there is nothing further from the truth.  Pitching in this sense is simply about  understanding, developing, and effectively communicating your authentic ‘personal brand’. It really doesn’t matter how many times you’ve won an award for excellence or how many features and benefits your product/service has, decision makers want to know about the person behind the business and will normally be influenced in their decision making by what they think of you rather than your business. I am reminded of a quote by Malcolm Levene who recently said “Being in demand for your services…is a direct response to how you behave and express yourself to others. These days that’s what counts”.  I think Malcolm is right and that engaging authentically with the customer or supplier, getting your ideas and passion across is far more likely to lead them to the next stage of buying or supplying.

If you’d like some tips and ideas to improve your pitching skills, take a look at the series of short videos from Paul Boross (aka The Pitch Doctor) on his You Tube channel. His message is simple – “You are the message, You are the Product, You are the Pitch”.

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Good Enough Beats Perfect

Think about Skype, sometimes the calls I make are very good and sometimes very bad and anything in between. In other words you can’t say their service is perfect!

Most of the calls you make are free anyway and the calls you pay for are very cheap – above all Skype is convenient. I’m sure most people feel the same way about it, as there is a hell of an uproar when the service goes down.

Calls from traditional telecoms are perfect (well, most of the time anyway), but expensive and not very convenient at all.

Peter Hinssen, in his book “The New Normal” writes:

The perfect is the enemy of the good, especially if the good is cheaper, faster, or more convenient.

I agree – Skype is the perfect example of a “good enough service provider”, beating the “perfect” telecoms at their own game.

PS. Let’s hope Microsoft does not try to make Skype “perfect”, mind you that would be a first, IMO.

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Quality of Service – QoS

These days a I buy my computers from Apple – that used to be very different years ago, I’d buy a PC and compare prices. You may ask why, since Apple Macs are so much more expensive.

Quality is remembered long after the price is forgotten!
~ Gucci Slogan

Expensive, for me, is a long term measurement. It does not stop with the buying process, it has to do with the number of re-installs, down time, ease of use and many more aspects of the product or service I have purchased. Take all that into account and Apple Macs are cheap!

What is more I’m not even interested in comparing products on that level anymore, for me the only question is which of the Apple Macs I’m going to upgrade to next.

Wouldn’t it be nice if you had customers like that for your products or services?

Easy – just make sure your quality is up there and then you will find loyal customers. Combine that with great customer care and you have customers for life.

What is your Quality of Service like?

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Small Business Sales Performance – Q1/2011

The Open University just published their Quarterly Survey of Small Business in Britain and I want to share one graph with you here.

As you can see micro and small business are suffering in this economic climate more than the mid-size and large businesses – why do you think that is? This graph has been haunting me for days and for me it comes down to the same old issues I keep on ranting about, in one word: FOCUS.

SME Sales Performance by Size

With business focus there is no way a larger business can out-perform a well run small business in terms of customer care, customer loyalty and business efficiency.

Bigger business is better at analyzing business performance and optimizing processes, these tools are available to small business for free – why are they not being used?

Focusing on the competitive advantages of being a small business, with lower over-heads, better customer service, faster reaction times and so on and on, should become second nature. Not following every rabbit-hole (distraction) is essential to business success too. Do a SWOT analysis and focus on what you are good at.

In my mind there is no way that large business can out-perform small business on a size adjusted basis – let’s get to it and let’s change this graph!

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Upper Class Virgin.

I’m sitting here waiting for my flight to the US to depart and I’m flying with Richard Branson’s Virgin Atlantic. I’m thinking back a few decades to when it was I heard the name Virgin or Richard Branson for the first time.

Upper Class Virginl

I remember listening to him when he was asked why he started Virgin Atlantic and his answer was something like this: ‘I looked at this business and decided I could do it better and cheaper.’

While it was not just that simple, for instance he only serviced the most in demand routes like London to New York (another good business move), for me it shows the most basic, most powerful of all business models and his entrepreneurial spirit and motivation – ‘I can do that better and make money doing it!

He does not do what I have done all my business life, push the envelope with new technology. Far from it, he looks at mature business sectors and looks at how to improve the service/product, finds a niche (London-New York) and gets a foothold, makes it cash-flow positive and then builds on that success. AND he makes it look easy.

Only easy it is not, there have been numerous failures. Each failure helps him to be even better next time around.

Virgin, as a business group, is truly upper class when it comes to overall business model success. Look at it – Make it better – Maybe fail, then learn from it – Move on – Do it again.

Which business sector could you improve to become an Upper Class Virgin?

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Stop Selling. Stop Talking. Listen.

You’ve done the marketing and your efforts have paid off – customers are contacting you – should you keep on selling?

When a customer starts talking to you he/she has already decided you are a person who could help to solve a problem, no more selling required.

If you keep on with your sales talk, in fact if you keep on talking you become the biggest hinderance to getting an order from your conversation partner for your small business.

Stop talking!

Listen – and your customer will let you know what the problem is and how you can help to solve the problem, resulting in an order!

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Know Your Business Inside Out

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As a small business owner in control of a successful business, it can be tempting to simply sit back and allow it to almost run itself. The problem with this approach is that it causes you to become detached from the business and too far removed to put things right when they start to go wrong. In order to sustain success for the long-term, a business owner must remain hands-on and get to know every aspect of the business from the inside out.

A deep understanding of your business and the wider industry in which it operates is essential to make a business thrive. Functions like marketing and human resources have to be understood and applied correctly to your business, it is not simply enough to read books on the subject.

In terms of business management, there are numerous issues to consider. You will need to appoint the right people with the right skills for the job. Planning for the future is essential and you will need to make sure that you can afford the salaries of anyone you hire. Accurate analytical information is required to make these decisions.

Business analytics will also allow you to evaluate the success of your marketing efforts by providing statistical data such as website traffic and page impressions. You can then analyse how this changes whenever you launch a new marketing campaign. Just because a marketing campaign has been successful in the past there is no guarantee that it will continue to be in the future.

Taxation is another important aspect of your business that you need to stay on top of. The tax system is overly complex for small businesses. Your tax liability may change whenever you hire additional staff or sell different products. In order to keep up-to-date with legislation changes you will need to devote a lot of your time to accounting, or work closely with an accountant.

Remember that in business, knowledge is power and you should always try to gather as much information as possible about your business to assist with your decision-making.

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Failure Is Always An Option

WinWeb Business Planning Software

Talking about business success is always great and uplifting. Talking about business failure not so much, why is that?

All too often failure is seen as a bad thing, not as an experience, a valuable lesson or the next important step on the ladder to success. Failure is painful, it dents our ego, but the truth is failure often teaches us more than success. We just need to learn to see failure as an opportunity to make it better next time.

You may say, there won’t be a next time, because you lost not only your shirt. This typically only happens if you discount failure, people who understand that they can also fail, often take far fewer risks.

Here is the thing, a good business plan includes the possibility of failure. Try it, make failure part of the plan, it can be very liberating.

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How Important Is Business Integrity?

Social Media for Business

How important is business integrity to your business? Would you risk your business integrity for a headline, media coverage or to pull in a new customer? How about the people who work for you – what would they do? If you haven’t asked yourself this question, perhaps you should.

Your own personal integrity, as a small business owner, can guide your organization’s integrity; as a business owner your staff look to you in order to find the expected way to behave. However, the organizational integrity of your business is also reliant on those you have working for you – everyone from customer service to marketing and PR could, possibly, jeopardize your businesses’ integrity.

After following #CommsChat on Twitter this week (a discussion based on marketing and PR) a significant amount of the discussion came back to how important the truth was when it comes to PR and the damage it could cause to a business if their PR was unreliable, or worse still, lied to get results and headlines.

Thankfully, the vast majority of the participants in #CommsChat held the reputation and integrity of the business, whether their own or a clients’, at the top of their priority list. But, some excellent points were made regarding the impact that having an “anything for the headline” attitude can have.

Business integrity and reputation is something that is built up over many years, but can also be destroyed incredibly quickly with one bad decision or half-truth. Publicity is crucial to every business, however, as social media changes the way we work and build relationships, ‘spin’ generated to create a newsworthy story can backfire at best and, at its worst, can cause devastation for a business.

Social media creates not only a transparency to the way we all do business, but also a means for reputation to be devastated in mere hours. Reputation, integrity and honesty are more important in business than ever before.

So, how can you gain publicity without the spin? Create a newsworthy story; help a charity, run a training course or release a great new product. As well a making it more important than ever to ensure our PR campaigns are transparent, social media also means that we no longer need headline grabbing stories to secure publicity – get people talking about your business on social media and the results will surprise you.

Building relationships on integrity, trust and reputation and instill a corporate integrity throughout your business to ensure your employees do the same is vital and the rise of social media is making this both more important, and easier, than ever before.

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