LEADERSHIP
When I step into a small business for the first time, usually a whole host of burning questions come to mind and I am often compelled to speak them out loud. To use a recent popular term "shock and awe" has the effect of waking most owners out of their slumber. And this perhaps is the biggest culprit of mediocre performance - that most owners are lacking of any purpose or leadership skills.
For instance, what good is it to see an owner of a business behave like just another staff member?
Owning a business comes with a set of obligations, not least of which is the idea that for any business to be successful, the owner must first be able to lead. This is not as tough as it seems. There is a saying that if you bother to make a decision (any decision) there is an 80% chance that it will come off. That means that more times than not you will surprise yourself as to how right you are! These are better odds than at the casino, and yet many do not fear taking a punt there.
Sharp and clearly defined decisions are the hallmark of leaders. No one really knows the outcome - that would mean that you have a crystal ball. And I don't know too many who have one of those (although working with banks I sometimes felt I had two) The main thing is to give it a go with gusto. Fake it if you must. Who will countermand you when you prove to be so confident and look so right? Remember, 80% odds in your favour.
Leadership means shaking hands with a firm grip. It means looking your customers. your staff, and everyone else straight in the eye. It means picking up the decibel level in your voice, and making your comments staccato like (eg. J.F.K. inaugural address). It means stop dragging your heels and ambling about - quick march with dignity and pride. Dress well, not slovenly. Show determination not a 'stunned deer in the headlights' look!
Leadership means directing. A simple formula is to clearly explain, then demonstrate, and then have all the others practice what you want done until they satisfy you and themselves that they can replicate what you have asked of them. But to do this means that you must have planned first and come up with a strategy you want implemented. These too are elements of good leadership.
Notice I did not say you needed to yell abuse, scream and scare your staff into submission. No need for bullying or being rude. I had a CEO of a major franchise chain once tell me that I needed to become more aggressive in my leadership style, that I needed to teach people who was boss immediately. My answer was quite simple - that these were all traits linked to incompetence. Only poor operators needed to bluff their way through the leadership question. True leaders lead with their presence and demeanor. Others around them just know they are leaders and that they command respect.
So don't bluff. You are the owner of a business and like it or not you have to lead. Be yourself and you will still find the capacity to be a fine leader. As a commercial for joining the army once said "leaders are not born, they are created". And I believe this. When I was younger I could not lead my way out of a brown paper bag, but as I have proven to myself given the circumstances anyone can develop their potential to lead.
Now more than ever you need to prove that you can lead.
POINT OF DIFFERENCE
What does your business stand for? What is it? If I cannot understand what it is you do or what it is you sell instantly then I would say that your business lacks a point of difference.
How often have you seen a business start off life as one thing and then gradually change into an amorphous combination of a bit of this and a bit of that. It was trying to be a little of everything to all people but not achieving much of anything. This to me says a great many things, not least about the state of mind of the owner, and their clear lack of purpose and direction. Borrowing from above, also about their lack of leadership and purpose.
It is a simple fact that it is your job to convey to marketplace, in an instant, what it is you (and your business) stand for. You cannot afford to have an identity crisis because unrelated add-ons to your business generally speeds its demise. Like the coffee shop selling phone cards and internet access. What is that? Tell me. And whilst you are there you can pick up a massage and a pedicure! As ridiculous as this sounds, I have seen it!
All the E-classes which form the complete course I offer focus on creating an absolutely clear point of difference for your business from day one.
They are designed to convey to your local market exactly why they should come to you. A clear point of difference would answer their question. It is important that they know this without you ever muttering a word and without spending a cent on marketing (initially). For the market does not believe what you say in the first instance. They do believe what they see, taste or experience first, then they will take the time to listen. But if you are good, and your distinct point of difference is known by them there will be no need to follow through with words unless you want to.
Next time you wander down the street, take a good hard look at all the businesses. Have a look at the messages they are conveying. Do they shine with an instantly recognisable point of difference or do they look like wallpaper - filling up the background? Check it out.
So, here's a very simple way to create a remarkable P.O.D. (Point of Difference):
1. Product. 2. Personnel. 3. Personality. 4. Performance. 5. Practice. 6. Patrons. 7. Position.
I call this the P Formula. Any two of these factors when executed well will combine to create a radical P.O.D. More than two and your business is hitting the stratosphere in the minds of the end consumer without any word from you. Knowing my P Formula is akin to the 7 P's of life (Prior Preparation and Planning Prevents Piss Poor Performance) only it is specifically designed for business.
I have just yielded up a gem which you can take to your deathbed. Of course, there is a question of how to get the maximum P.O.D. out of each point, but in essence, you now have something which can get you thinking. And a whole lot of little points of differences when combined make for a massive one big point of difference.
Sadly, it is the lack of a P.O.D. with most businesses that gets my goat!
SHAPE UP OR SHIP OUT
All too often I find that where the leadership of the owner is weak, there is one ring-leader amongst the staff who rules the roost and prevents positive change within the business for no other reason that they have created a nice little nest for themselves and any change would upset their status quo.
These people are toxic to a business, but the truth is that the owner let them get ahead of themselves.
This really gets my goat.
It pains me to see owners who have put up their hard gained assets, borrowed money to buy into a business, seeing it floundering with the owners having all the burden of risk, only to be pushed around and told what to do by a staff member. I usually see red because not only is this situation not conducive to sales growth (it creates stagnation on so many different levels) it is insulting that someone who is an employee, who has not put their money into the business, or who is carrying any of the risk dares to control the direction of a business.
I have seen this scenario more times than I care to mention. And for me there is only one solution: to read them the riot act! Having a clear plan does help, and more often than not I saw huge relief on the faces of owners who lacked the direction to say anything themselves, and were more than happy to have me express in the open their quietly held frustrations. It is simply a case of telling them where this ship is headed.
It gets back to my comments on leadership.
A ship can be steered by the bosuns mate, but it is the job of the captain to chart the course. And where the bosun tries to chart the course, this is akin to mutiny. And swift and determined action corrects such a folly. Every day in which an owner vaccillates or wavers only breeds more confidence and strength in the leaders of the 'mutiny'. Only strong and effective leadership disenpowers those who did not put any money on the table to earn the right to be the boss but who claim to have the right to a voice.
Whenever I see such a situation in a business the choice I offer comes down to 'shape up or ship out'. It's that simple if you are interested at all in rapid improvement to your sales and your mental health as an owner.
BE YOUR WORD
Integrity in business simply mirrors the integrity you hold in your personal life.
It is amazing how often I come across business owners who claim to be exceptional individuals and yet the way they conduct themselves in their business leaves a lot to be desired. And it is the little things that often give the game away on their lack of integrity and their willingness to continually compromise.
Thing like the busines trading hours being 9-5 but the doors are still closed at 9:20am. Happened to me at the local Drug Store when I needed medicine for one of my girls, and to get to an appointment on time. Knew I could make it if I got to store at 9 and out in 10 minutes. Didn't happen and it set off a concertina effect on all my other appointments for the day. Needless to say I don't shop there anymore because the owner did not care, nor bother to realise the set of circumstances he triggered for me and for the other 15 people in the queue.
Or not paying your invoices on time! This is a big out of integrity with nearly all small business owners. And it creates more damage to our reputations and status than we think. And regardless of what you may say, it all comes back to you with interest. The small business owner is possibly the most unique in the supply chain because he/she usually gets paid cash before handing over the goods. Then it becomes a case of not handing it over to the supplier of the product just sold until after the standard payment terms with that supplier -and then some. And when that supplier has a great many small businesses doing the same thing to them, it is like you are saying that they are not worth anything in your opinion. They have a business to run, and mouths to feed, just as you do, but the terms of supply is an agreement which (whether you said so or not) you vowed to keep. Not keeping it is a lack of integrity and it is only a question of time before EVERYONE knows about you - and not in a good way.
So, you go on believing that this can't really hurt you right? Maybe, until you find out that you need some stock fast and the only guy in town who has the stock you need is the one you kept short changing. Or, you want to sell your business quickly, and the only person interested happens to know the supplier you short changed, and by the way, he/she happened to hear about you at dinner parties with the supplier.
I can go on and on about 'little' out of integrities and compromises which are not little at all in the overall scheme of things. Being your word means living and doing business with integrity. The greatest reputation you can develop in the market place is the one you put there intentionally. In the end it will help to grow a group of suppliers, staff and customers WILLING to help you grow your business. So in a roundabout fashion by helping others by being your word, you are actually inducing them to help you.
I say to you that a business will never operate at its best until the integrity within it is beyond reproach and there is a solid unwillingness by everyone to not accept compromise of any condition.
George Sabados is the worlds leading motivational speaker to major coffee retail and franchise chains around the world. He can inspire and, most importantly, instruct coffee focused businesses in how to generate explosive sales growth and profitability in the shortest time possible - his 3 levels of mastery guarantee massive change in 12 weeks! First and foremost, George is a retailer and knows how to focus a business on being a stand out to customers, resulting in instant local market leadership.
Rather than simply a "voice" without experience, George has been a leading figure in the global espresso movement from successful international barista, successful retailer, international roaster, international cupper, writer, public speaker and most importantly, coffee entrepreneur. He is without peer in experience and outside the box thinking within the international coffee industry.
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