SmallBizSaver.com

I'm Interviewing Bob Burg! on 3-26-09 @ 7 PM Eastern

2009-03-26T18:13:00.001-04:00

Just a quick update to say I'm updating Bob Burg, best-selling author of The Go Giver on 3/26/09 at 7 PM Eastern Time. This is a LIVE show, so please feel free to call in or participate on the web at http://adjix.com/b88v

My BIG Annoucement

2009-02-04T22:30:00.003-05:00

I'm pleased to announce my new project and new business endeavor: www.realitynetworking.com.

This will feature podcasts, weekly networking tips as well as interviews and articles from some of the best networkers in the world.

Check it out and keep in mind this is a work in progress and I'd LOVE to have your feedback to help shape the site.

Tim

Poll on Referrals

2009-01-03T22:41:00.002-05:00

Just a quick note to say I put up a poll on Linkedin.com .

I'm doing some research on the percentage of new business acquired through referrals in 2008.

Take a few seconds to vote. It's located at http://polls.linkedin.com/p/15278/agtkh.

New Year, New Goals and How to Attain Them

2009-01-02T16:20:00.006-05:00

Happy New Year! Now that the holidays are done, it's time for you to start working on your goals for 2009. If you were proactive enough to develop your goals for 2009 back in 2008 (or even in 2007), you still want to pay attention to this article. If you haven't set up your goals for 2009, now is the best time to do so.

First a disclaimer: I'm not talking about New Year's Resolutions; I am talking about goals that you have for yourself or your business. There's a difference between the two in that the Resolution is something that has zero backing except the will of person who is making it. A goal, on the other hand, is measurable and there are certain steps to attaining it and it includes more than just the maker of the goal. (Keep in mind that a resolution can turn into a goal though, provided that there is a strong enough desire on the part of the maker to turn it into one).

Goal setting and how to do it has been written about for ages. The study that has been quoted most often by everyone from Anthony Robbins in his Personal Power II progam to journalist and referenced in thousands of business and life coaches around the world. It’s called the ‘1953 Yale Study of Goals”

The premise of the Yale study was that people surveyed in the class of 1953, who write down specific goals for their future are far more likely to be successful than those who have either unwritten goals or no specific goals at all. The surving class of 1953 were interviewed in 1973 and they found that those who wrote down their goals far excelled in life compared to those that didn't.

The problem is that the study never took place – it was exposed in 1994 by Fast Company magazine as an urban legend!

But in 2007, Psychology Professor Dr. Gail Matthews of Dominican University of CA did a study where she recruited 267 participants from a wide variety of businesses, organizations, and networking groups throughout the United States and overseas for a study on how goal achievement in the workplace is influenced by writing goals, committing to goal-directed actions, and accountability for those actions. Participants ranged in age from 23 to 72 and represented a wide spectrum of backgrounds.

The participants were divided into 5 groups.

Group 1 was asked to simply think about the business-related goals they hoped to accomplish within a four-week block and to rate each goal according to difficulty, importance, the extent to which they had the skills and resources to accomplish the goal, their commitment and motivation, and whether they had pursued the goal before (and, if so, their prior success).

The remaining groups 2-5 were asked to write their goals and then rate them on the same dimensions as given to Group 1.

Group 2 just had to write down the goal and rate them.

Group 3 was also asked to write action commitments for each goal.

Group 4 had to both write goals and action commitments and also share these commitments with a friend.

Group 5 went the furthest by doing all of the above plus sending a weekly progress report to a friend.

At the end of the study, the individuals in Group 1 – the group that had to just think about their goals - only accomplished 43 percent of their stated goals versus Group 5, who had to write it out, make an action commitment, share it with a friend and provide a weekly progress report to a friend, -- had an average 76 percent of their stated goals accomplished.

So how will this help you to achieve your goals for 2009?

ACTION ITEMS:

1) Think about and then write out your specific goals. Brian Tracy reccomends that you list 10 items that you want to focus on, give a particular deadline for each goal (for example, a goal may be "I have lost 15 pounds by March 31, 2009; or "I acquired 2 new clients worth $10,000 each by February 15, 2009). Circle the #1 goal you want to achieve. and review it every single day.

2) Write out an "action item" for each goal and commit to doing the action within a specific period of time.

3) Share it with someone. It could be a family member, a friend or someone in your business, but make sure you pick someone that is going to hold you accountable.

4) Review your progress with your accountability partner on a weekly basis. This can be done via phone or email but is better to do in person.

If you stick to this, you should be amazed come December 31, 2009 at how many goals you have achieved.

"I'll try to be there..."

2008-12-03T11:11:00.006-05:00

You met Joe at a holiday party last week. He seems like a nice guy. When he told you about his line of work, you realize that Joe would be a good person to invite to a networking meeting that you will be attending next week, because he may be a good fit for the group. You tell Joe a little bit about the upcoming event and extend an invitation for him to come as your guest.

At that point Joe turns to you and says "Sounds good, I'll try to make it..."

You say "Great, I look forward to seeing you!"

And the conversation ends.

How often has someone responded by telling you that they would "try to make it" to an event that you invited them to? When you hear this all-to-common excuse, how often does that leave you with a feeling of doubt about the person's integrity? Do you really think that they are going to come or was it just a way for them to exit the conversation and move on.

While there are legitimate reasons why people cannot attend a function, by and large, people are afraid to commit to something that they are not familiar with. Sure, you invited them and you told them how wonderful it will be for them to attend, but right now, they're still not convinced and nor do they fully understand the benefits of attending and the detriments of not.

Every man, woman and child in the world makes a decision based upon the information that they have at that particular time. If you're attempting to get someone to come to a meeting or a party -- anywhere -- you need to supply them with more information that educates them as to why it is in their interest, but also gets them to firmly commit to a position.

The easiest way to do this is by asking questions of the person that will shift them out of their current thought process and into one that guides them in the direction that they should be going -- in this case towards making a firm commitment: Yes or No.

When you invited Joe to attend your networking meeting, you may have told him about some of the people that are involved or how it has helped your business.

At this moment in time Joe really doesn't care about you or anyone else -- he's concerned only about himself. (This is normal and natural so don't be offended).

It's easy for Joe to give himself an out by saying "Sounds good, I'll try to make it."

Before the conversation ends, you could say something like "Joe, can I ask you a quick question?" When he says yes, you can say something like:

"If you were able to reach your sales goals in a shorter period of time, what would you do with the extra time you had?"

Then shut up and listen to what he has to say. (He's probably stunned because no one has ever asked him a question like this before).

It may cause him to stop and pause to think for a moment and he may start talking about a place he wants to travel to. He may talk about spending more time with his family. Maybe he'll say it will cause him to do something he's always wanted to do.

The conversation will turn away from his objection to a subject he's going to want to talk about. Your job is to give him a little room to speak but then get him back on track.

Once Joe starts talking about what he'll do with the extra time, at some point you need to ask him: "How can I help you to get that extra time?"

Joe may say something like "you can refer me business" or "introduce me to ...."

That's when you can point Joe in the direction of accepting the invitation to come to your event:

"Joe, I can help you get that extra time you want by introducing you to some of the people who would be willing to refer you qualified business, over time. Would you like to meet them?"

When he says yes, then reiterate your invitation by saying "Many of the people that you want to meet -- or those that know or deal with them on a regularly -- are part of my inner circle. They will be with me at the event next week. I want to personally introduce you to them. " (Joe may wonder "how can I become a part of the inner circle")

"By the way while you're there, you will be introduced to a lot of people, so bring a lot of extra business cards." (This will mentally cause Joe to see himself at the at the meeting being introduced to people).

"Joe, I need to reserve a spot for you, so I need to know if you are coming, by 11:00 AM tomorrow. Please call me at ____".

Give him a short deadline. If you leave too much time, you're not conveying that it's urgent and to his benefit to attend. If you allow Joe to send an email or a text, while it is quick, it is too impersonal. You want him to call because it gets him to interact with you and you should be able to sense how serious he is through his voice inflections and tonality.

If Joe declines the invitation, thank him for his time and move on. Don't waste your time chasing after him. After all, there are a lot of people out there that you haven't met yet who you can probably help.

Do They Really KNOW You or do they Know OF you?

2008-11-08T17:23:00.001-05:00

I was recently working with a client who had a particular sales team that was having a very difficult time in finding new prospects. The company was established, had multiple locations, each with its own sales team, and had a strong, loyal client base which provided repeat business to each location and to the company as a whole.

Like any business though, they required new clients and it involved the sales team to go out and find these prospects, mostly via networking, advertising and other marketing methods. In many of their locations, their sales teams were humming along, showing growth in the number of prospects and ultimately, new customers.

But this particular sales team was in negative territory. First, customers would come and go after a very short time. From my vantage point and that of others in the company, the sales team didn't do too much to address this issue, let alone to replace the customers that left.

At a recent meeting, one of the people on the sales team, voiced the following frustration when I asked what specific efforts were being made by individual members of the team to attract potential new customers.

"We're in a small community and EVERYONE knows who we are. We have multiple locations so it's not like we're out of sight. They also know the other companies like ours, so it's not like we're invisible. Perhaps we're too saturated....perhaps it's the economy...... etc.

After this person finished a long diatribe, I asked a simple question: "So are you saying that the prospects KNOW this company or just KNOW OF this company?"

At that moment, a wall of about 12 blank and somewhat puzzled stares looked back at me.

"When someone gets to know someone or something, they have had an experience with it; when someone KNOWS OF something, the experience hasn't been there yet. For example, I KNOW OF places to see Australia from what I've read on the Internet and in guide books; but I haven't been there yet. I KNOW Disney World and I can tell you all about it because I've been there dozens of times. I KNOW OF that new restaurant that opened up in town because I read about it in the paper; and I KNOW what the food is like at McDonald's, TGI Fridays, the local diner and even an upscale steakhouse such as Peter Luger's because I've been to those places many several times."

"Also, just because you are KNOWN OF, doesn't mean that they have the correct information. Just think of the game of telephone, by the time it gets to the next few people, things are forgotten, things are embellished and the wrong message is being sent."

I went on to say "To be KNOWN, is all about experience. Since the services this company provides requires that the prospect has an experience, your goal is to get the prospect to come into a location -- your location, specifically -- and to give them an experience they won't forget. In order to do this, it's going to require you to go out there and start building relationships with people that you network with. It's going to require you to get creative to find the new prospects that you need to grow your business."

ASK YOURSELF: Are you KNOWN or just KNOWN OF? Is the right message out there for your business? What kind of experience are you giving your current clients as well as prospects? You have the power to control what is being said about your business. It's just a matter of getting the right kind of word-of-mouth out there via people who have had the experience with you.

Cruising for Comments

2008-09-27T09:44:00.005-04:00

I'm writing this from the Carnival Legend en route back to the US after a 7 day cruise of the Western Caribbean, that took us to Grand Cayman, Roatan and Cozumel.

Whenever I'm on a cruise, I find myself not only relaxing but also doing some "market research" in terms of speaking to passengers and crew members about their cruise experiences as well as learning more about them as people.

Last night, one of the bar waiters who I have become friendly with asked me out of all the cruises I've done, out of all the ships I've been on, which was the best in terms of experience. I replied that it was this one -- not because of the itinerary or the people but because of the level of service and attentiveness I have received while on board.

At the end of every cruise, a comment card is given out to the guests to rate their experiences while on board, ranging from the wait-staff in the dining rooms, to the entertainment, to the quality of the food and the overall value of the cruise experience. These comment cards also have a spot where you can single out certain staff members who went above and beyond the call of duty to ensure that you had a pleasurable experience. Many people don't know that many cruise lines use these comment cards in terms of promotions and pay-raises and other perks (such as extra days off) as well as in disciplinary actions.

The value of feedback and testimonials can be invaluable for your business, no matter what kind of business you're in. It doesn't matter if you provide services of products to consumers or businesses, there's a market that purchases or hires you for whatever you do, be it a common or niche market. The testimonials you get from customers/clients/patients can be used to bolster your image to others who are potential new clients. It also adds additional credibility in the eyes of your current client base and further reassures them that they are making the "right" decision to buy from you.

Feedback from clients and staff members are also very critical to the evaluation process. Too many people tend to focus only on the negative comments left and are very reactionary (emotionally and operationally) to try to "fix" what went wrong. While it is very important to be aware of these incidents and to deal with them accordingly, I believe that the positive feedback needs to be looked at with equal -- and in some cases, more -- attention so that you can operate from a proactive position as well.

For example, one of your clients singled out a positive experience they had with you and your business. They provided you with a thank-you note or testimonial. Your first reaction may be one of pride and accomplishment, and the next reaction should be something to the effect of "am I/we offering that same experience or better to the rest of our current clients?" "Can we also use it in such a way to attract new clients and reactivate old or dormant ones?" The positive experiences not only need to be shared but also acted upon in some fashion.

Feedback from employees, partners and even yourself (for the self-employed) is also important in the continuous marketing and education process. I believe that after every sale or after every positive or negative experience (from your perspective or theirs) you should solicit feedback from everyone involved. Ask the participants to fill out a comment card or survey (should be done via fax, email or snail mail) When people take the time to put "pen to paper" it gives them enough time to reflect on the experience. This needs to be done within 24-48 hours so that things are not forgotten, embellished or memory gaps become missing and then filled-in with perceptions. Notes need to be taken and analyzed after all is said and done and then a plan developed, no matter how small or big the transaction.

Big companies are realizing the importance of feedback but I think they've been too slow or their methods have been ineffective at best. For example, I have been to several department stores and chain drug stores in the past few months that are printing a web-address on the bottom of each receipt asking for their customer's feedback after every purchase. They usually try to entice people to provide the feedback by trying some sort of promotional drawing to win a cash prize, vacation or they will provide a credit or some other sort of gift on your next visit. While I can appreciate their efforts, It would be interesting to see how many people have actually answered the surveys out of the hundreds of thousands of transactions conducted in a given week.

From this cruise I know I will be singling out a few people who made my experience worthwhile and then some. Whether it was the waiter that remember my name (and everyone in my party), the bar staff who remembered my favorite drink, or the room steward that provided me with extra towels when needed, i hope that my comments are going to be used to help them in their individual careers and overall, the company to keep providing great experiences to their guests for years to come.

Action Item: Starting today, start developing feedback from your employees, team members and clients to use in your word-of-mouth marketing, your advertising as well as your daily business practices. A simple survey allowing participants to rate their experiences on a scale of 1-5 and a place for comments and "suggestions for improvements" should be on each form. When the responses are received, read, analyze and utilize the data to help you to be more proactive versus reactive, in your business.

Straight A Networking: Attendance, Attitude, Achievment - Part 1

2008-08-25T14:54:00.020-04:00

While walking past an elementary school the other day, I noticed a big banner in front of the main doors that read "Think Straight A's: Attendance, Attitude. Achievement". I caused me to think a little more about how business networkers sometimes forget a simple principle such as this -- a principle that is being taught to elementary school children and embraced as a "basic" in the education system at all grade levels.

Many tend to view networking events and meetings with large turn-outs as being a success. Some people believe that just by showing up, they are contributing to the "success". Sure they are there but if they don't take an active role or participate in the process of learning about others, was the event truly successful and did it somehow move the participants in the direction of achievement?

While attendance at networking events and meetings is such a fundamental component to growing your business, as I previously wrote in my post, "The Reality of Networking," business people tend to want quick results without realizing or knowing that networking takes some time to first establish relationships and then cultivate those relationships in order to achieve the desired results.

But it's more than just attendance. The addition of attitude goes a long way as well in the networking process. Bob Burg, in his book Endless Referrals, Third Edition teaches us The Golden Rule of Sales & Networking:

"All things being equal, people do business with and refer business to, those that they know, like and trust."

Attitude plays such an important role in order to master Bob's "Golden Rule". Why would you want to do business with someone that is consistently miserable or makes the experience more difficult for you?

This reminds me of a situation that happened at a networking group about four years ago. I attended a networking group and I was introduced to a relatively newer member who I will call Bill. Prior to meeting him, I was told by one of the members of this group that Bill designed and built custom kitchens.

When I walked into the room, I noticed that he had a portfolio of his work out on a table and stopped to look at it. His work was so incredible and worthy of high praise that is should have been featured in home improvement magazines and on home deign TV shows.

However our introduction left me with a lasting impression. It went something like this:

Tim: "Good morning! It's nice to meet you How are you today?"
Bill: "Yeah, yeah, what's so good about it? Do you really want to know how I'm feeling?"

Tim: "Well it's a great day outside, the weather is beautiful and you're alive!"
Bill: "But there are others who didn't get up. There's a war going on, my property taxes just went up, my car broke down yesterday and this morning's coffee was cold... "
...and he continued to lament about the world's problems and issues. (To say that this was one of the more interesting introductions I've had in quite sometime would be an understatement).

After I diplomatically removed myself from speaking to him, I thought the following: 1) perhaps this is just a bad day for him, 2) this guy may need some mental help or 3) this guy is a real jerk.

I asked the person who introduced me to him if this was just an isolated event and she confided, "He's like this every week since he's been a member."

"Why would you take someone with such a negative attitude?" I asked.
"Well he was the only custom kitchen makers knocking down our door so we figured we needed him..." she said.

Months later, when it became very clear to Bill that he wasn't getting referrals, he left the group. I happened to be present at this meeting when they announced that Bill's classification was opened and without any exaggeration. there was a collective sigh of relief.

If we apply Bob Burg's Golden Rule to this situation, it was highly improbable that Bill or the group would have any form of mutual achievement based upon attitude alone. Bill's attitude presented a barrier to his networking partners. He made it impossible for them to get to know him outside of what he projected, and thus there absolutely no foundation for trust. Not only was Bill miserable but could you imagine the sense of misery he projected to those around him. Given these circumstances, why would anyone want to give him referrals?

But the group also had an issue: they had an attitude of of desperation by accepting Bill as the "only one" and believe that they "needed him". Upon closer inspection, while they were a large group of 30-35 members, they took just anyone in, without truly vetting their candidates and refused to wait for someone who would be a better fit for their group. Bill's attitude was not their only problem; because they took just anyone, there were several others who did attend meetings but did not make any sort of a positive contribution. They were attending, yet not achieving as a result of their own, as well as their group's attitude towards participation.

To the casual observer meeting this group for the first time, they would probably be turned off and would not want to participate in this group. Moreover, both Bill and the group's attitudes did not do anything to lend towards achievement and the end result was a lose-lose proposition for everyone involved.

How you project yourself to a potential customer -- let alone you networking partners -- is vital. While attendance is required, both in networking and in your business, attitude forms long-lasting impressions that, when coupled with word-of-mouth marketing, speaks volumes to others, even when you have stopped talking.

More on attitude and achievement in the next post.

The Reality of Networking

2008-07-25T06:36:00.005-04:00

On reality TV shows, you can find the love of your life, win a competition or even lose weight in a matter of weeks. What we see on TV is that by doing small tasks over a period of 6-8 weeks will ensure success in an aspect of you life.

However, once the contract with the producers or TV network ends, in many cases so does the success. They lose the job, they put the weight back on and their divorce ends up on the front pages of the tabloids. In many cases, they go back to square one.

Networking is different. It requires us to do more than just the minimum over an extended period of time, if we are to receive the maximum benefits from our efforts. All too often, the neophyte networker believes that they can attend networking events or groups whenever they want, hand out business cards and expect people to start doing business with them. They fool themselves into believing that they are credible in the eye es of those they meet and expect instant business to transpire.

When it doesn't happen, they convince themselves (and try to convince everyone that they meet) that that networking doesn't work and it's a waste time. They blame everyone and everything else for their impatience and thus, lack of success: it's the organization's fault, the people aren't the right ones. the economy's not doing well, the weather was bad that day, etc.

I had two recent experiences that illustrate this point.

Case #1: I was contacted by an insurance professional complaining that despite three months in his networking group, he hadn't received a single referral. When I stopped to take a look at his attendance (it was poor),l the fact that he didn't give referrals, let alone learn about others on his referral and marketing team on an individual basis, was it no wonder why he didn't get any referrals?

Meanwhile, his colleagues in the same company, who are in other networking groups are literally cleaning up and laughing all the way to the bank. Why? Because they don't ascribe to the instant-results mentality. They are doing what is required of them to build relationships with the people in their group. They are spending time, educating their marketing team to find referrals and referral sources. They are asking for key introductions to sources of referrals.

Case #2: I was contacted by someone in another area who wanted to leave their networking group because "it just wasn't working out". When I asked how long she had been in her current group she said "two weeks -- and I haven't seen a single referral yet". When asked did someone explain that this takes time and effort, this person replied, "yeah but......" and provided several excuses.

To quote Charlie Brown as he goes to kick the football: "UUUUUGGGGGGHHHHHHH!!!!!"

Woody Allen is quoted as saying that "90% of success in life is just showing up" -- and apparently people believe it whenever they go to mixers, trade shows and networking groups. I respectfully and strongly disagree.

The bottom line is that they either don't want to do the or don't know about the hard work that comes with building relationships. Yet, because they have been conditioned by society that they deserve instant results - something that networking doesn't afford them - and they boldly conclude that it doesn't work.

Remember, unlike reality TV, it's not just going to happen overnight to produce the desired, positive results. You need to schedule the time to attend a meeting or an event and then follow-up with the people that you meet to start laying the foundation to a relationship. It's more than just tuning in for 30 minutes to an hour, once a week.

The reality of networking is that it takes time for it to work.

Word of Mouth via Taxi

2008-06-23T12:21:00.003-04:00

How often do business people tend to try to reach new customers by spending large amounts of time and money on new ad and marketing campaigns, when the best new customers can come from those who are a part of your contact sphere professions?

A contact sphere, as defined by Dr. Ivan Misner, are those professions who are related to yours but do not compete directly with you in which you share the same pool of clients or resources. (For example, a mortgage broker's Contact Sphere includes a real estate agent, property & casualty insurance agent, a home inspector, an appraiser, electrician, interior designer, etc.)

Many times people can identify the obvious contact sphere professions, but often times there are many that are overlooked. Here's a great example of this:

I was reading this article on USA today back in April about Las Vegas headline acts and the opening paragraph stood out to me:

"Since 2005, Barry Manilow has set up camp for extended runs at the Las Vegas Hilton, where he has drawn crowds for months on end. How does he do it?"

"Taxi drivers' word of mouth," Manilow quips. Actually, he's not kidding. Before launching his Manilow: Music and Passion show, the crooner put on a free performance for hotel employees and … cabbies. No fool he!"

Now when thinking of an international superstar performer/musician/singer/songwriter, one normally wouldn't expect taxi drivers and hotel workers to be a part of his contact sphere. But they are!

As the article details and suggests, Manilow knew that tourists almost always ask taxi drivers and hotel workers for recommendations for shows, restaurants, etc. He identified them as sources who can drive the business to him (literally and figuratively). If he wanted people to come to see his show, he needed to convince the sources that it was worth seeing. No wonder why Manilow's show, "Music and Passion" has been consistently sold out since it started in 2005 and he's been extended until 2010!

Who are the "not-so-obvious" sources for your business? I have advised financial advisors that their contact spheres should include the dance school instructor/owner, the day spa owner, the landscaper and the dry cleaner. Why? Because those professions cater to clients that are part of a demographic sought after by the financial advisor.

Stop and think about the not-so-obvious referral sources and begin your plan of action to reach out to them.

Word of mouth travels by taxi, or boat, or plane, or Internet, and of course by people.

The question is, what are you doing to drive it to you?

I Refuse to Participate in a Recession...And I Will Create Prosperity For Others and Myself

2008-06-02T10:44:00.003-04:00

I forgot to mention that Dr. Ivan Misner and I collaborated on what is the lead story for the May 2008 edition of SuccessNet. Both Ivan and I have been getting many reactions (both positive and negative -- but more positive!) Please read it and leave me your feedback.

It's also the basis of a workshop that I am presenting to various businesses and organizations.

On Taxes and the Internet

2008-05-27T13:29:00.002-04:00

Well, the sages in the press are claiming that it's the end of internet shopping as we know it. New York State has (quietly) passed a new law that went into effect on 4/23/08 which requires online merchants to collect New York State sales tax from anyone who purchases anything on the internet -- even if the merchant does not have a physical presence in New York but has affiliates in the state.

The new law, nicknamed by the press as the "Amazon Law", has had another effect on the small business owner: Overstock.com has terminated all of their relationships with their New York affiliates so that they will not be required to collect the sales tax.

As someone who is an affiliate with Amazon and who was an Overstock affiliate, it bothers me to no end that this law (which was another brilliant idea left-over from the disgraced Elliot Spitzer administration) was passed with little reporting from the New York press until Overstock decided to dump their affiliates and Amazon, to their credit, filed a lawsuit in State Supreme Court against the State, the Governor and also New York State Tax Department.

This new law has reaches beyond New York State. The Associated Press has reported that

Chicago is now suing eBay and StubHub for taxes that were not collected on tickets sold for concerts and other events held in Chicago. The same story also reports that Chicago is also suing companies like Hotels.com for not collecting the taxes on reservations for bookings in Chicago. Also, Texas is contemplating suing Amazon in the wake of the New York legislation.

Now while I am in no way advocating that people should avoid paying taxes, what I am concerned (and annoyed) about is that the small business person, is once again, getting screwed and in some cases, will be put out of business. Affiliate income from places like Amazon and Overstock, can play an important role in a small business person's bottom line. Moreover, I am very concerned about how the State can completely ignore a US Supreme Court ruling from 1992 which prohibits the state to force the collection of a sales tax unless the business has a presence in the state I am equally concerned about the "knee jerk" reaction from Overstock to dump their affiliates.

An online affiliate is an independent contractor, not an agent or employee the company it represents. They get no vacation time, benefits, or any form of salary from the company that is represented by the affiliate they get a 1099 form each year and pay taxes on the income that is generated by the affiliate's ads on their websites.

The problem that I have is that the affiliate's website is hosted somewhere in Cyberspace. My websites are hosted not only in different states but perhaps in different countries as well on many different servers. If one of my ads is seen by someone in Wisconsin, why should New York get any revenue in the form of a sales tax

So to all New York business people: contact your local Chamber of Commerce as well as your elected representatives and insist that they lobby for the rescinding of this law.

I'm also waiting for a brilliant tax attorney to file a class action lawsuit against the state on behalf of those affiliates who the state has now either put out of business or have interfered with the revenue stream.

Helping Hands

2008-04-30T10:02:00.004-04:00

On Monday morning, I was heading into restaurant to conduct a BNI training in one of their private rooms. It was raining and slippery and my hands were full of boxes with training materials.

A gentleman, who had just came of the restaurant, turned around, and opened and held the door for me.

"Thank you very much, " I said.

He said "God gave us two hands for a reason: one for our use and another to help someone. Have a great day!" And off he went.

I stood in the entrance for a second and thought about what he said. It's amazing how something as simple as holding the door for someone whose hands are full, can have an impact on a person's day or even life.

Next time when I see someone struggling, I'll remember the words of that stranger and instead, offer my free hand to help somone else. I know it will come back to me at some point in the future.

That's truly what Givers Gain is all about.

Are your Samples worth Sampling?

2008-04-17T08:45:00.004-04:00

I was recently at a Panera Bread to enjoy a rare 30 minutes of free time during my day. I noticed that they introduced a new breakfast sandwich which I decided to try with a nice cafe mocha. It looked great in their ad and looked (and tasted) equally as nice when my order was delivered.

As I was finishing up with my meal, one of the employees came around offering samples to the patrons sitting at tables. It turned out to be a sample of the same sandwich that I ordered and just finished eating. I politely declined but I did look at how it looked on the tray and noticed that it looked identical to my sandwich and their ads. Not only that, but the lady who was coming around knew all about the product right down to the number of calories, allergy information (such as if it contained or was made near anything that contained allergic ingredients such as peanuts), and even described it in an appealing manner.

Contrast that to my experience at Costco a few days ago.

As almost all Costco members know, there times during the day when they have people hired by an outside company, whose job is to offer samples of whatever new or special product they are pushing. These folks are easily recognized by their trademark hairnets, green aprons and white shirts. They stand behind rolling carts, some have a microwave on it while others just have the product. They cook, cut, scoop and otherwise just "throw" these samples on small, white cocktail napkins. Because people are naturally attracted to "free stuff", they tend to draw vast lines, (but I always have to wait for another batch to be prepared by the time I get to the front of the line).

Sometimes these samples look horrible. It looks nothing like what is on the box or bag it comes . Nor do the people offering these samples have enough knowledge about the product. For example, whenever I've asked any of these sample people some specifics about their product, I always get answers like "they're very good" or "this is delicious" or "these are in the frozen food aisle next to the frozen shrimp".

Every once in a while, a special vendor brings in their own "sample staff" to promote their specific product. While at Costco, one vendor was promoting their new line of sausages and meatballs. They had a vibrant, excited group of demonstrators who made you want to try all of their samples. They were presented nicely and the people doing the demonstrations looked like they were having fun compared to the other sample people who are at Costco each and every week. I even noticed a few "evil eyes" being cast towards the sausage vendor's staff because they were attracting more folks than the others.

If your business offer samples of its products or services to potential and existing customers, it must be consistent. If you're a baker and are allowing the public to try your chocolate chip cookies before they by, please try them yourself before you put them out. Make sure whoever is doing your promotions knows about your product/service and your business. Don't just give them a tray with food or some pens or whatever it is you're promoting and throw them to the lions (i.e. the potential customers). Granted there will be freeloaders who will want anything you put out because it's free, but your job at this point is to create a "want" so that they buy from you. After all, you can have the best product in the world but if that want isn't there, then you're not going to make money.

There's the old saying: "you can lead a horse to water but can't make him drink." Someone once added the following phrase: "....unless you know what makes him thirsty." I agree. If you're going to offer samples to "make them thirsty" please make them worth sampling, otherwise you may find your business dying of thirst.

I Agree to Create Prosperity -- Even in a Recessson!

2008-03-30T07:57:00.014-04:00

Dr. Ivan Misner has written an excellent post on his Blog, Networking Now called "I Absolutlely Refuse to Participate in a Recession!" The story in this post was originally published several years ago in Dr. Misner's Book The World's Best Known Marketing Secret but has been updated to reflect and respond to the current economic conditions.

One of the comments that Dr. Misner wrote struck a cord with me. He said:

"While you cannot control the economy or your competition, you can control your response to the economy. Referrals can keep your business alive and well during an economic downturn. During the last recession, I watched thousands of businesspeople grow and prosper. They were successful because they consciously made the decision to refuse to participate in a recession. They did so by developing their networking skills and learning how to build their
business through word of mouth."

After reading these comments, I made an affirmation to tack on to Ivan's: I Refuse to Participate in A Recession AND I Agree to Create Prosperity For Others and Myself!

Building on Ivan's comments, networking and referrals are essential keys to surviving an economic downtown (as the political pundits are calling our current economic state). I came up with several, simple ways to create Prosperity for You and Others even in a Recession that I have now developed into a workshop for businesspeople.

I'd like to share with you three ideas that are taken from this workshop:

1. Restart a Relationship With Old Referrals Sources: Ideally, your business should be in constant contact with your referral sources, but there will be times when, for some reason, an old referral source may have stopped referring to you or you may have stopped referring to them. It doesn't necessarily had to have been over a negative experience. Perhaps you or they were "out of sight" and thus "out of mind". Go back and look at your old referral sources and make contact with them. Send them a letter, make a phone call, offer to take them to lunch or dinner in order to restart the relationship.

One of the easiest ways to get their attention is to send them a greeting card. Using a great busines tool such as SendOutCards.com makes this easy. I'm willing to help you get started in reestablishing a relationship by providing you with a FREE GIFT ACCOUNT to send a few cards that you can customize and send via US Mail. (After they receive a card, I'd like to hear your feedback on how this worked. Click here to contact me)

2. Get A Referral For The Giver, From The Prospect that THEY referred to You: All too often, someone referred a prospect to you (the Giver). The prospect became your client. You did a great job for them. They are happy, your source (the Giver) received great feeback about the experience and you made money. That's nice for you. but what about The Giver of that referral? What if there was a way for you to get the Prospect to refer business to the Giver and you?

To generate more referrals from a prospect that was referred to you, you need to start laying the foundation for future referrals from the minute you first meet them by doing the following:

a) Focus on and acknowledge the source of the referral (The Giver) by talking highly of The Giver in your first meeting with the Prospect. After all, The Giver referred the prospect to YOU. Now your job is to place The Giver high enough on a pedestal so that there is credibility and confidence in the eyes and to the ears of the Prospect that The Giver did the "right thing" by referring the prospect to you.

b) Talk about the Giver's services/product to the Prospect before you talk about your own. In advance of the meeting with the Prospect, talk to the Giver and ask them "What should I say to the Prospect about YOU?" The reason to ask this question is that sometimes, the prospect knows The Giver from another aspect of life. The Giver may the coach of a baseball team and the Prospects are the parents of one of the kids on the team; maybe The Giver is belongs to a local organization and the Prospect only knows The Giver in that light and doesn't really know what they do for a living or how they can be helped. Maybe the Prospect is already a client of The Giver but The Giver doesn't want to "hard sell" them on a new product or service. A third-party testimonial by You to the Prospect may help them to contact The Giver to either buy the product or to refer someone to them.

You are planting the seeds so that the Prospect starts thinking outside of the transaction he/she will have with you. You are seeking to create a win-win-win situation for all of the people involved: The Giver, The Prospect and You (The Receiver)

3. Seek Referrals From Your Current and Former Clients for You and Your Referral Partners: Seems simple, right? Yet so many business people are too focused on getting newer clients that they forget about the old ones as valuable sources of referrals. There's absolutely nothing wrong with seeking referrals from your current and former clients - provided that you have established a good relationship with them.

You don't want to ask for referrals immediately during the sales process or right after the sale because that will turn people off. You don't want to pressure them by using the old, outdated technique of telling them to "refer three people who can use my services" because, quite frankly, it turns people off and puts undue pressure on them.

As you develop the relationship with your client/customer/patient, you should make reference to the fact that you prefer to deal with people that are referred to you by satisfied customers/clients/patients. Show them testimonial letters and thank-you notes from others who have referred business to you or were referred to you. Third-party testimonials not only help you to establish additional visibility and credibility, but they also act as a catalyst for your prospects to refer you business. It's the concept of Social Proof that Donald Trump and others use which I wrote about in my contribution to Masters of Sales

To get referrals for your referral partners from your existing and former client base can be done in a simple way. When I opened my consulting practice in 1996, I sent letter to my clients and everyone who I had a relationship with which basically said that I know people who offered the following services. After I listed them, I told my contacts that if they ever needed the services of one of these professionals, please contact me for a personal introduction.

Many people did and that, in turn, helped me to develop referrals for my referral partners. What ended up happening in many cases is that not only did I get a referral for people I did business with, but also for myself. I became known as the "go-to guy" to many people because I had the connections. When the need arose for my services, the people I was marketing too (or their referrals) hired me because I helped them to solve a problem or to find a service which was unrelated to mine.

These three simple techniques that I have shared should help you to realize that you always have the ability to create prosperity for yourself and others (and you don't need to wait a for a recession to do so). The dividends it pays to you and to others are priceless not just in terms of money, but in the satisfaction you will get knowing you helped someone to get what they want or need, but also from the relationships (new and old) that are improved. This is what Giver's Gain is all about.

Latte Listening: Now being used at a Starbucks or coffee shop near you!

2008-02-28T10:04:00.004-05:00

A few weeks ago, I was sitting in a Starbucks, in between appointments. While checking my email, I couldn't help but eavesdrop on a few conversations that were taking place around me. The conversations ranged from someone who was just dumped by a significant other, to another person complaining about the weather. But it was the third conversation that captured my interest.

There were two women engaged in a very lively (and somewhat loud) discussion. After listening for a few moments, I deduced that one owned her own business while the other's husband was laid off from his job, last week. The business owner (I'll call her Mary), was explaining what COBRA was to her friend (I'll call her Jane) and how the costs are astronomical these days for basic health insurance. Mary was complaining to Jane that to cover her employees, under a basic health care plan, costs her in excess of $4,000.0 a month. When Jane asked if Mary's insurance carrier would issue a policy to a non-company, Mary said she "doubted it".

Jane just kept going on how they needed to coverage because of the two kids. Mary's was trying to tell Jane that the solution would eventually come about when Jane's husband got a new job. She even encouraged Jane to tell her husband to get a job at Starbucks since they offer health coverage to their employees. Jane's husband could still try to seek employment but at least the benefits would be there. Jane basically said that she could not wait that long and that her husband, would never do such a thing because "he's a professional" and "wouldn't stoop that low".

What amazes me is that these two women, just bantered about, complaining about things but yet did not have a solution-focused approach to resolving not one, but two problems: 1) coverage for Jane and her family and 2) lower premiums for Mary's company.

I couldn't help to stop by on my way out. I apologized for intruding, and explained that I couldn't help but overhear their conversation. I went on to explain that I may have a solution for the both of them. I asked if they would like to be introduced to a colleague of mine whose insurance company provided coverage at extremely competitive prices and they also covered individuals and families as a "group of 1". Jane's expression went from depressed to full of hope. Mary too was intrigued as to who this person was that may be able to help her lower her monthly costs.

I asked for their information and immediately called one of my BNI members with the referral. I put them on the phone with him so that they could schedule an appointment. They did and thanked me for my assistance.

Later that week,I heard from Jane who gave a glowing testimonial about the person I referred her to. I didn't however, hear anything from Mary. Curious, I emailed the health insurance rep and within 3 minutes of sending that email, the door bell rang.

I walked to my door to find a big fresh-fruit arrangement from the health-care rep, thanking me for the referral for both ladies. I went back and called this person and he told me that he signed up both of them and that Mary also referred him two other business owners who he was meeting with this week.

So should I be mad at Mary for not reaching out to even communicate or thank me? Probably not. I was not fully visible to her. I was just some nosy guy doing some "latte" listening while drinking coffee at Starbucks who later but into her conversation. I didn't have any visibility let alone credibility with her. (Still some should say she should have had better manners).

Looking at the bigger picture, I realize that what I call latte listening works very well -- provided of course that you do more than just listen. Growing up, our parents told us never to talk to strangers and that it was impolite to eavesdrop. As business people, we need to talk to strangers and it can be as simple as doing some "latte listening" at a local coffeehouse. (OK if you don't like lattes, substitute your favorite drink, food or activity). We are surrounded by opportunities to help people to resolve problems, and at the same time, make money for others and ourselves. It's just a matter of moving out of the comfort zone that we are in and taking action.

Don't Just Pray - Network!

2008-02-14T13:21:00.012-05:00

We all know that the mortgage industry is having major problems these days and people are facing forclosures. Richmond County (aka Staten Island), New York faces some of the highest forclosure rates in all of New York City,

But those who are facing pre-forclosure may have a prayer -- literally. Last week the International Christian Center of Staten Island, hosted a "Pre-Forclosure Prayer Service". Now I'm not a member of their church so I didn't attend, but it did make me think about how churchs are a network whose members are many people we know but may not know us outisde of the weekly services.

We are all a part of various different networks: social, business, sport, political, religious, etc. Many people that we currently do business with have no idea of the other networks that we belong to because, we typically do not share this information. Thus, they and we miss out on a boatload of opportunites to help others.

Think about it: every major religion relied on "word of mouth" in order to expand. Yes, there were things that were written down and printed or transcribed by hand but for the masses of people living at those times, many did not have access to these books, scrolls, tablets, etc. So religion, just as most of society's knowledge, was spread orally by what can be considered "word of mouth".

When it comes to religious organizations, many people who attend services on a regular basis may be known as a parishoner or member but are not visible enough to be seen by the leaders of the church as somone who can help by offering a wealth of resources. Some people do not believe that a religious organization is a proper place to network for business. I disagree as I believe in Dr. Misner's philisophy shared in his book, Truth or Delusion that you can network anywhere, any time -- so long as you "honor the event".

Thinking about this reminded me of a story that occurred a few years ago. There was a member of a BNI chapter in my region that sold men's clothing and furnishings. As part of a casual conversation with five others, (myself included), this member explained that he was the pastor of a church. I asked how many people he preached to on a given Sunday. He answered "250-350". I asked if any of them knew what he did outside of the church. He said "a few". Then I turned to the others in the converstion and asked if they knew that their colleague was a pastor: not a single one did.

Intrigued, I went on to ask if a member of his church had a problem in their life, would they turn to him or another person in the church for consoluation and counsel. He said that happens very often. I asked, wouldn't it be a blessing to those people if he were to refer them to someone that he knew, trusted who can help them with their problems? I also asked could some of the people in his congregation could be potential customers, clients, patients, sources of referrals, vendors/suppliers or even potential members of his chapter. His answer was a resounding yes and he admitted that he never thought of it that way.

I told him I'm not expecting him to go to the pulpit to say "God wants you to buy your insurance from XYZ Insurance" but instead, to make himself and the rest of the congregation aware that there are secular resources that can help. Then, provide them with an referral and introduction to the various resources. This is in full accordance with the Giver's Gain philosophy that BNI teaches as well as The Good Book.

A few months after this conversation I ran into him. He told me that not only did he end up referring people to his fellow networking partners who needed help in a variety of different areas, but also was now being touted as an "Angel in Men's Clothing" by his fellow BNI members. In turn, he started getting more referrals for his clothing business as well.

So while I do believe that praying does indeed work to help resolve problems in our lives and to help us to achive various goals, networking also helps out in the process.

Interview Replay

2008-01-14T12:42:00.000-05:00

Just a quick note to thank those of you who particiapted in the Masters of Sales teleseminar. For those who missed it, you can listen to the replay by clicking this link .

Branding Part 1: What's In A Name?

2008-01-06T11:19:00.000-05:00

"What's in a name? That which we call a rose by any other name would smell as sweet." --
Romeo and Juliet (II, ii, 1-2)

While philosophically, Shakespeare may be right in that names are artificial and meaningless, and we are to love the person and not the name, in the world of business, nothing can be further from the truth.

Over the Christmas and New Year's Holidays, I did a little bit of traveling which involved a lot of driving. On some of these trips I found myself in the passenger seat, which gave me some time to look at billboards along the highway, as well as some of the cars and trucks that passed by. I also spent some time in various supermarkets and other stores and banks which have community bulletin boards on which locals can post everything from "lost pet" signs to their business cards.

In each instance, I couldn't help but take note of a few names of businesses which caught my attention, because of their vagueness. Of the 15 or so that stood out, my favorite was Hyper Harry.

I saw the name Hyper Harry on a white truck that passed me by on the Garden State Parkway in New Jersey. There were no other markings on this truck; just Hyper Harry, in small black letters on the driver's side of the truck, with a phone number.

I immediately thought Hyper Harry might be a consumer electronics or a home appliance store because, inside of my memory, silly/funny/crazy names like this one were synonymous with stores of this type. The best example I can give is well known by those of us who lived in the New York City Metropolitan area in the early 1980s: an electronics chain store called Crazy Eddie's. They were famous for their outlandish commercials and their spokesman, Jerry Caroll, would be on every radio, print and TV advertisement acting, well, crazy!

Crazy Eddies was one of the biggest successful stores of its type in the late 1970s through the late 80s because they knew that by branding their name tying it to the created image of an insane spokesperson, in each of their advertising and marketing pieces people would remember them and shop with them -- and they did! Even now, over 25 years later, I will never forget their call to action which became embedded into my then, young mind: "Shop around, get the lowest prices you can find -- THEN GO GO CRAZY EDDIES'S AND HE WILL BEAT THEM!!!!" Every commercial and advertisement ended with their memory hook which was "Crazy Eddie's Prices are So Low THEY'RE INSANE!!!!"

(The company ultimately filed for Bankruptcy after it's president & co-founder Eddie Antar was indicted and convicted on securities and other fraud charges).

Getting back to Hyper Harry, I decided to call the telephone number listed on the truck and I found that Hyper Harry is an auto supply warehouse in Plainfield, New Jersey. Even though those in Plainfield, New Jersey, may know who/what Hyper Harry is, someone like me doesn't. In my opinion, the name of your business must be positioned in each and every advertisement and marketing piece so that it become branded into the memory of everyone who reads, sees, hears and experiences it. Just putting Hyper Harry on a truck isn't enough to generate a brand or to result in sales.

I contrast Hyper Harry with my friend, Michael Brooks. Michael is a private, personal trainer in the Hartford area of Connecticut. His business is called "No Judgements". His memory hook, "Progress, Not Perfection," is branded on everything from his business card, to his gym bag and his T-shirts. Mike's business card (a sample can be found by clicking here) shows someone working out, along with his contact information. It sends a clear message about what he does for a living.

From my professional point-of-view as a business and marketing consultant, Mike is doing the right thing by creating a brand that will attract people who may have had poor results from working alone in the gym, to those who have worked with personal trainers in the past and didn't feel comfortable or get the desired results, and for those who are too embarassed to even go to the gym because they are feeling "judged" by others.

To Mike, his business name and memory hook also hold a special, personal significance. If you look at Mike, you will see a very handsome, energetic, healthy guy, who stands about 5'6" and has a body of a Greek god. Michel is an amazing guy in that he not only lives what he preaches and teaches in terms of getting fit and staying healthy, but he manages, lives and deals with a disability: Michael has cerebral palsy. Yet his disability does not deter him -- in fact, it motivates him to do more for himself and his clients, and subsequently his clients more.

(Disclaimer to reader: I would be a client of Mike's but he lives almost 100 miles from me. Working with a personal trainer is something that cannot be done by phone, fax, or email -- you've got to be there to have the experience).

After recently talking to Mike, it reminded me of a chapter in the book Live Rich in which author Stephen Pollan wrote the following in a chapter called "Judge Your Progress, Not Your Results":

"Don't give up because you're not at the place you think you should be. You are just where you are supposed to be. Stop measuring yourself against everyone else. There will always be someone who has a larger home, who drives a more expensive car, who makes more money, who has a higher-paying job, or whose business generates more profits. There will also always be someone who has a smaller home than you, whose care is in worse shape than yours, who makes less money than you do, who is under you in the hierarchy, or whose business isn't doing as well as yours."

"You shouldn't feel bad about yourself because there's someone with more than you. And you shouldn't feel good about yourself because there's someone less fortunate. Judge your personal progress rather than your outward trappings. Are you moving toward meeting your own real needs? If the answer is yes, then you're doing fine. If the answer is no, then you're off track. All you need to do is start moving toward your goals."

Mike's business name and image was so powerful to me, that it not only makes me think of people who need his services and would be a good fit for him, it even conjured up a chapter in a book that I hadn't read since I bought it in 1998. Hyper Harry, on the other hand, while having an interesting name, did nothing to move me (except to call out of my own curiosity - something I doubt the average person would do). If Hyper Harry had on his truck that he was an auto parts store, perhaps I would be inclined to give them a call when the time arose when I needed a part that my local Autozone may not have had in stock.

So branding is very important to your business and it all starts with your name. Does it reflect what you do or is it like the old ACME company in the old Warner Brothers', Looney-Toons Cartoons: a company whose name was so generic, you had no idea what was going to be in the box when Wylie Coyote got a delivery in from them in his quest to get the Roadrunner. They "sold" everything from explosives to aspirin, to bird feed.

Is your memory hook (or tag line) on every piece of advertising from your business card to your website to your trucks and cars and does it so clearly define what you do to the person who experiences it?

In this world of increasing competition, the small business owner or business person needs to distinguish themselves from their competitors by branding their company name and their affiliation into the minds of everyone they meet.

More on the power of branding in my next post.

Upcoming LIVE Teleconference and Interview.

2007-12-30T11:56:00.000-05:00

Just wanted to let everyone know that I will be interviewed by fellow Masters of Sales, best-selling author and BNI'S Executive Director for Saskatchewan, Canada, Stephen Bell, in a special conference call which you can participate in by listening in on live conference call or by the web.

The date is Friday, January 11, 2008 and will take place at 6pm Eastern Time.
You may call 712-775-7100. Access Code is 392854# or view it online at http://instantteleseminar.com/?eventid=1545987

The interview is the "story behind the story" to my contribution to Masters of Sales, "How Donald Trump Made $1 Million in 1 Hour". It's also going to contain some information that did not make it in the book, some of which is used in the workshop I conduct with companies and organizations.

I hope your that the holidays are treating you well!

May 2008 be a Happy, Healthy, Prosperous and Productive, New Year for you, your family and your business!

Truth in Advertising

2007-12-16T08:14:00.000-05:00

A few miles from where I live there are two churches practically right next to each other. The first is a non-demoninational Christian church and the second is an Episcopal church which is rented out to a Korean Lutheran demonination at times. (This is very common in New York).

The non-demoninational church is known for its charasimatic pastors (who also have a show on local cable TV) and they have a really nice sign outside of the church which has a different message on it each week. The messages usually are witty, or rhyme, sometimes they're serious. Some examples: "To Pray is The Way"; "Your Father is Calling You to Come Home," etc. From the I've seen of their weekly cable TV show which is nothing but their church service televised; they not only focus on worship, but they obviously want to get people to join their church.

The Episcopal/Korean Lutheran church, on the other hand, is much more subdued. Most people just drive by their church without really paying it any attention. It's not too noticeable, except a sign which looks like it should be outside of a burger joint.

Yesterday as I passed by, the first church had it's holiday message: "Jesus is the Reason for the Season." But the Episcopal/Korean Lutheran church's sign had this: "Sign Broken: Come Inside for Message".

Sometimes the more simple the message the more effective.

Kitchen Nightmares and Small Business

2007-12-09T12:46:00.000-05:00

One of my new favorite “reality” TV shows is Kitchen Nightmares with Gordon Ramsay, which is based upon the highly successful BBC show, aptly named Ramsay’s Kitchen Nightmares. For those not familiar with the show, Gordon Ramsay, one of the most successful chefs and restauranteurs in the world, is called into a failing or underperforming restaurant and attempts to turn it around in a week. These restaurants always have many things wrong with them, be it a bad staff, inept owners, filth, horrible food and the like.

As I was watching the last few episodes, I couldn’t help notice something that I’ve seen way too often in the past 10 years occur in 1 hour: how arrogance, denial and ineptitude destroys a small business -- and that’s just the start of it -- I’ll elaborate more on this in a second, but before I do, I came across a review on the web about this show.

Gina Bellfante of The New York Times wrote: “The subtext of “Kitchen Nightmares” is that ordinary middle-class business owners need brash and brilliant moguls to save them from a sad reliance on their own mediocrity. It is an ugly message that Mr. Ramsay makes undeniably hypnotic.”

I hate to break the news to Ms. Bellafante and the New York Times, but when a business is in a tailspin, they need the help and guidance of those who have been successful -- and it’s not just the “middle-class business owners” that suffer. For 10 years I worked with small businesses as well as several publicly traded companies which wouldn’t be called “middle class” by any means who were in trouble because their management and owners refused to act as such. Many suffered from Pollyanna Syndrome believing that tomorrow they will land the big client or the big sale and everything will turn around. Nine out of ten times, it doesn’t happen. They have to decide at that point whether or not to continue to go ahead with the business, suffering along the way and hurting themselves, their staff and customers in the process; or they can admit that they have a problem and get help.

With Kitchen Nightmares, each of these restaurants have recognized that they need help and that’s why Ramsay is brought in. After seeing the damage that’s been done, towards the middle and end of each shows, focused on getting the owners to buy into the process of turning the restaurant around by making strong decisions. Some are drastic changes including the firing of the current chefs and staff members and hiring new ones. Some are subtle, such as a change of the menu to something that will attract people and create a “name” for the business -- a signature dish, for example. (In the sales and marketing world, we call this a Unique Selling Position).In a recent show, Ramsay was in Tuckahoe, New York, a town 15 minutes outside of New York City. The restaurant he was working with was an Italian restaurant that was housed in an old mill. The scene was rustic, but nice, but the service and food were bad. Ramsay, decided to tour the town and found lots and lots of Italian restaurants throughout the small town. Having been to Tuckahoe many times, I can vouch for this first hand. He went to a butcher shop and asked the owner if there was a steakhouse, ever and after he was told no, he deiced to go back to the suffering restaurant to make the change from Italian restaurant to steak house. The owner was very resistant and so was the bumbling staff, but after going through the financials with the owner’s wife, they realized that if they continued on the way they were - losing money -- and if they closed up shop, they would “be in the hole for at least $500K.” That alone was motivation to try Ramsay’s approach.

The short end to the story was that the business turned around and became a big success.

Small business owners need to know how to work on their business versus working in their business. Most don’t. Most are self-employed, meaning that they own a job, versus taking ownership of a business. Some are so self-consumed and refuse to delegate responsibility and authority to others that they ultimately fail.

Every business owner or those that want to become one should watch this show and also read and own The E-Myth by Michael Gerber, one of my all-time favorite books. Yes, Kitchen Nightmares is reality TV and it’s one of the closest things to REAL life on TV versus the crap that’s out there. Despite what the New York Times may think, mediocrity has no place on business. Why be average when excellence is an option?

Back Up and Running

2007-12-03T13:36:00.000-05:00

After a month away from blogging, I'm back. I had to redesign the blog and the website, www.tmhouston.com a little bit because of some technical errors and to update some important information.

In any event, it's a new blog and a new start for me in so many ways. As we wrap up 2007, there's been several changes that are starting to occur in my life (very good ones, in fact) but for contractual and legal reasons, I cannot make the formal announcement yet. Let's just say it has something to do with my business and several very warm, relaxing places.

In the meantime, look for at least one new posting per week to this blog on a variety of topics. The holidays always provides a wealth of observations and commentary about business. Unfortunately, these are usually less than pleasant experiences, but I'm often pleasantly surprised a few times too.