Dysfunctional Teams and How to Fix Them

Dysfunctionality among teams is far more commonplace than many business owners  would like to admit. You only need to take a look at recent headlines to notice the levels of it which can be found even in the most prestigious global brands. And considering the ease with which negative and potentially damaging articles can be shared on social media these days, it pays business owners to be mindful of the risks and to develop coherent and effective strategies to alleviate these risks. 

A recent study by a very well-known UK on-line recruitment site suggests that 40% of employees believe a positive working culture is the most important thing their employer can provide. This imposes a duty on business leaders to build a supportive team culture and to ensure that managers within their business have the tools necessary to build and manage cohesive teams.

Considering this, we here at Ology recommend a 5 stage strategy that all managers should follow to fix their dysfunctional teams:

Ownership

If you as a leader do not take ownership of a team and its potential problems, then things will never improve. Discuss the matter openly with your team so that they feel comfortable sharing any issues they might have and make sure you set the standard of how you expect them to work together.

Honesty

If you notice your team is slowly becoming more fragmented and less effective, do not be afraid to seek out the truth. To fully understand what is going on, `remain neutral and do not cast judgement when asking for feedback from team members. Once you discover what is causing the negativity, take action and try to counteract it.

Standards

As a team leader, it’s essential that you put in place a standard of performance you expect. Therefore, you can’t have different standards for different members as this will only upset team members and provide extra ammunition for the more disruptive members of the team. Do not ignore the negative behaviour of some staff members. Make sure your team understands the repercussions of such behaviour and that it cannot be tolerated.

Agreement

You may have a plan in place that you think will help stamp out negativity, but without the backing of the team the plan is simply futile. To combat this, ensure the team meets regularly, while also keeping them informed of the standards you need them to adhere to.

Persistence

It can be frustrating when you notice that all of your efforts are falling on deaf ears and that team members continue to be disruptive and toxic. Turning your team around can often be one of the toughest challenges team leaders will ever face. It takes time and commitment. Don’t give up, be intentional and persistent to your beliefs and eventually change will happen.

And finally, be assured that you can do this. With the help of Ology’s behavioural expertise and our bespoke solutions, along with the dedicated support of one of our professional coaches, you can fix your teamworking issues.

For more information, or to discuss how we might help, contact Ology Coach Dave Preston today. (e-mail: davepreston@ologycoaching.com; or call 07539 365747)

ICF-Coaching FAQs

by Ology Coaching| Feb 22nd 2020| 

What is professional coaching?

ICF defines coaching as partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential, which is particularly important in today’s uncertain and complex environment. Coaches honor the client as the expert in his or her life and work and believe every client is creative, resourceful and whole. Standing on this foundation, the coach’s responsibility is to:

  • Discover, clarify, and align with what the client wants to achieve
  • Encourage client self-discovery
  • Elicit client-generated solutions and strategies
  • Hold the client responsible and accountable

This process helps clients dramatically improve their outlook on work and life, while improving their leadership skills and unlocking their potential.

How can you determine if coaching is right for you?

To determine whether you or your company could benefit from coaching, start by summarizing what you would expect to accomplish in coaching. When an individual or business has a fairly clear idea of the desired outcome, a coaching partnership can be a useful tool for developing a strategy for how to achieve that outcome with greater ease.

Since coaching is a partnership, ask yourself whether collaboration, other viewpoints, and new perspectives are valued. Also, ask yourself whether you or your business is ready to devote the time and the energy to making real changes. If the answer is yes, then coaching may be a beneficial way to grow and develop.

How is coaching distinct from other service professions?

Professional coaching focuses on setting goals, creating outcomes and managing personal change. Sometimes it’s helpful to understand coaching by distinguishing it from other personal or organizational support professions.

  • Therapy: Therapy deals with healing pain, dysfunction and conflict within an individual or in relationships. The focus is often on resolving difficulties arising from the past that hamper an individual’s emotional functioning in the present, improving overall psychological functioning, and dealing with the present in more emotionally healthy ways. Coaching, on the other hand, supports personal and professional growth based on self-initiated change in pursuit of specific actionable outcomes. These outcomes are linked to personal or professional success. Coaching is future focused. While positive feelings/emotions may be a natural outcome of coaching, the primary focus is on creating actionable strategies for achieving specific goals in one’s work or personal life. The emphases in a coaching relationship are on action, accountability, and follow through.
  • Consulting: Individuals or organizations retain consultants for their expertise. While consulting approaches vary widely, the assumption is the consultant will diagnose problems and prescribe and, sometimes, implement solutions. With coaching, the assumption is that individuals or teams are capable of generating their own solutions, with the coach supplying supportive, discovery-based approaches and frameworks.
  • Mentoring: A mentor is an expert who provides wisdom and guidance based on his or her own experience. Mentoring may include advising, counseling and coaching. The coaching process does not include advising or counseling, and focuses instead on individuals or groups setting and reaching their own objectives.
  • Training: Training programs are based on objectives set out by the trainer or instructor. Though objectives are clarified in the coaching process, they are set by the individual or team being coached, with guidance provided by the coach. Training also assumes a linear learning path that coincides with an established curriculum. Coaching is less linear without a set curriculum.
  • Athletic Development: Though sports metaphors are often used, professional coaching is different from sports coaching. The athletic coach is often seen as an expert who guides and directs the behavior of individuals or teams based on his or her greater experience and knowledge. Professional coaches possess these qualities, but their experience and knowledge of the individual or team determines the direction. Additionally, professional coaching, unlike athletic development, does not focus on behaviors that are being executed poorly or incorrectly. Instead, the focus is on identifying opportunity for development based on individual strengths and capabilities.


What are some typical reasons someone might work with a coach?

An individual or team might choose to work with a coach for many reasons, including but not limited to the following:

  • Something urgent, compelling or exciting is at stake (a challenge, stretch goal or opportunity)
  • A gap exists in knowledge, skills, confidence or resources
  • A desire to accelerate results
  • A lack of clarity with choices to be made
  • Success has started to become problematic
  • Work and life are out of balance, creating unwanted consequences
  • Core strengths need to be identified, along with how best to leverage them


What has caused the tremendous growth in the coaching industry?

Coaching has grown significantly for many reasons, among them:

  • Rapid changes are taking place in the external business environment.
  • Downsizing, restructuring, mergers and other organizational changes have radically altered the “traditional employment contract.” Companies can no longer achieve results using traditional management approaches.
  • With the growing shortage of talented employees in certain industries, companies must commit to investing in individuals’ development.
  • The disparity between what managers were trained to do and what their jobs now require of them is widening due to increasing demands for competitive results.
  • People are wrestling with job insecurity and increased workplace pressures to perform at higher levels than ever before.
  • Companies must develop inclusive, collaborative work environments to achieve strategic business goals and to maintain high levels of customer satisfaction.
  • Individuals who have experienced the excellent results of coaching are talking to more people about it.
  • People today are more open to the idea of being in charge of their own lives. Coaching helps them do just that.

In short, coaching helps individuals and companies focus on what matters most in life and business, and so the industry continues to grow.

How is coaching delivered? What does the process look like?

Coaching typically begins with a personal interview (either face-to-face or by teleconference call) to assess the individual’s or business’ current opportunities and challenges, define the scope of the relationship, identify priorities for action and establish specific desired outcomes. Subsequent coaching sessions may be conducted in person or over the telephone, with each session lasting a previously established length of time. Between scheduled coaching sessions, the individual may be asked to complete specific actions that support the achievement of one’s personally prioritized goals. The coach may provide additional resources in the form of relevant articles, checklists, assessments or models to support the individual’s or business’ thinking and actions. The duration of the coaching relationship varies depending on needs and preferences.

  • Assessments: A variety of assessments are available to support the coaching process, depending upon the needs and circumstances of the individual or business. Assessments provide objective information that can enhance self-awareness, as well as awareness of others and their circumstances; provide a benchmark for creating coaching goals and actionable strategies; and offer a method for evaluating progress.
  • Concepts, models and principles: A variety of concepts, models and principles drawn from the behavioral sciences, management literature, spiritual traditions and/or the arts and humanities may be incorporated into the coaching conversation to increase self-awareness and awareness of others, foster shifts in perspective, promote fresh insights, provide new frameworks for looking at opportunities and challenges, and energize and inspire forward actions.
  • Appreciative approach: Coaching incorporates an appreciative approach, grounded in what’s right, what’s working, what’s wanted and what’s needed to get there. Using an appreciative approach, the coach models constructive communication skills and methods to enhance personal communication effectiveness. He or she incorporates discovery-based inquiry, proactive (as opposed to reactive) ways of managing personal opportunities and challenges, constructive framing of observations and feedback to elicit the most positive responses from others, and visions of success as contrasted with focusing on problems. The appreciative approach is simple to understand and employ, and its reach can be profound, opening up new possibilities and spurring action.


How long does a coach work with an individual?

The length of a coaching partnership varies depending on the individual’s or team’s needs and preferences. For certain types of focused coaching, three to six months of working may work. For other types of coaching, people may find it beneficial to work with a coach for a longer period. Factors that may impact the length of time include: the types of goals, the ways individuals or teams prefer to work, the frequency of coaching meetings and financial resources available to support coaching.

How do you ensure a compatible partnership?

Overall, be prepared to design the coaching partnership with the coach. For example, think of a strong partnership that you currently have in your work or life. Look at how you built that relationship and what is important to you about partnership. You will want to build those same things into a coaching relationship. Here are a few other tips:

  • Interview more than one coach to determine “what feels right” in terms of the chemistry. Coaches are accustomed to being interviewed, and an introductory conversation of this type is usually free of charge.
  • Look for stylistic similarities and differences between the coach and you and how these might support your growth as an individual or the growth of your team.
  • Discuss your goals for coaching within the context of the coach’s specialty or the coach’s preferred way of working with an individual or team
  • Talk with the coach about what to do if you ever feel things are not going well; make some agreements up front on how to handle questions or problems.
  • Remember that coaching is a partnership, so be assertive about talking with the coach about any concerns.


Within the partnership, what does the coach do? The individual?

The coach:

  • Provides objective assessment and observations that foster the individual’s or team’s self-awareness and awareness of others
  • Listens closely to fully understand the individual’s or team’s circumstances
  • Acts as a sounding board in exploring possibilities and implementing thoughtful planning and decision making
  • Champions opportunities and potential, encouraging stretch and challenge commensurate with personal strengths and aspirations
  • Fosters shifts in thinking that reveal fresh perspectives,
  • Challenges blind spots to illuminate new possibilities and support the creation of alternative scenarios
  • Maintains professional boundaries in the coaching relationship, including confidentiality, and adheres to the coaching profession’s code of ethics.

The individual:

  • Creates the coaching agenda based on personally meaningful coaching goals
  • Uses assessment and observations to enhance self-awareness and awareness of others
  • Envisions personal and/or organizational success
  • Assumes full responsibility for personal decisions and actions
  • Utilizes the coaching process to promote possibility thinking and fresh perspectives
  • Takes courageous action in alignment with personal goals and aspirations
  • Engages big-picture thinking and problem-solving skills
  • Takes the tools, concepts, models and principles provided by the coach and engages in effective forward actions

What does coaching ask of an individual?

To be successful, coaching asks certain things, all of which begin with intention. Additionally, clients should:

  • Focus on one’s self, the tough questions, the hard truths and one’s success.
  • Observe the behaviors and communications of others.
  • Listen to one’s intuition, assumptions, judgments, and to the way one sounds when one speaks
  • Challenge existing attitudes, beliefs and behaviors and develop new ones that serve one’s goals in a superior way
  • Leverage personal strengths and overcome limitations to develop a winning style
  • Take decisive actions, however uncomfortable and in spite of personal insecurities, to reach for the extraordinary
  • Show compassion for one’s self while learning new behaviors and experiencing setbacks, and to show that compassion for others as they do the same
  • Commit to not take one’s self so seriously, using humor to lighten and brighten any situation
  • Maintain composure in the face of disappointment and unmet expectations, avoiding emotional reactivity
  • Have the courage to reach for more than before while engaging in continual self examination without fear


How can the success of the coaching process be measured?

Measurement may be thought of in two distinct ways: external indicators of performance and internal indicators of success. Ideally, both are incorporated.

Examples of external measures include achievement of coaching goals established at the outset of the coaching relationship, increased income/revenue, obtaining a promotion, performance feedback that is obtained from a sample of the individual’s constituents (e.g., direct reports, colleagues, customers, boss, the manager him/herself), personal and/or business performance data (e.g., productivity, efficiency measures). The external measures selected should be things the individual is already measuring and has some ability to directly influence.

Examples of internal measures include self-scoring/self-validating assessments that can be administered initially and at regular intervals in the coaching process, changes in the individual’s self-awareness and awareness of others, shifts in thinking that create more effective actions, and shifts in one’s emotional state that inspire confidence.

What factors should be considered when looking at the financial investment in coaching?

Working with a coach requires both a personal commitment of time and energy as well as a financial commitment. Fees charged vary by specialty and by the level of experience of the coach. Individuals should consider both the desired benefits as well as the anticipated length of time to be spent in coaching. Since the coaching relationship is predicated on clear communication, any financial concerns or questions should be voiced in initial conversations before the agreement is made. The ICF Coach Referral Service allows you to search for a coach based on a number of qualifications, including fee range.

Business Growth Masterclass 16 – How to Calculate and Lower the cost of your Customers

How to Calculate and Lower the Cost of Your Customers

 

Hello there and welcome to the 16th instalment of my Business Growth Masterclass. The step by step guide to building the business you always wished you could have.

 

Today, we’re going to look at how to calculate the cost of your customer and a few techniques you can use to lower that cost and increase the profitability of each of your customers, both old and new.

 

As ever though, before we get our teeth into today’s material, lets just check on actions from the last Business Growth Masterclass:

 

Did you do your homework?

  • You have a system in place for measuring your conversion rate on a daily, weekly, monthly and by-campaign basis.
  • You have chosen two new strategies to implement for an increase in conversions, and are measuring the results.

Great. Homework done. Now let’s get started with today’s Business Growth Masterclass.

When you buy a product, you want to receive the most for your money. The same is true for customer acquisition.

customers

Generating leads and converting those leads into paying customers is a process that costs you money. You can attribute a piece of your marketing and sales costs to each of the customers that you successfully attract and convert.

Essentially, you buy customers for your business.

Let me repeat that: essentially, you buy customers for your business.

Please read this again and understand it on a very basic level. If I sent you to the store with £40 to buy a white t-shirt, you would be successful. Well you can do the same thing with GOOD clients (ones that pay, stay and refer). Do not be scared to go into the business of buying good clients. This one distinction can completely change the way you do business and your level of success.

So when you think of your customer as your most valuable asset, you’re absolutely right. They’re an investment in your business that you expect to see a return from.

As with any investment, you not only want to see a return, but you want to see the greatest return possible. In this case, you could try to reduce your marketing budget, or boost your profit margins, but the easiest way to minimise the cost of a customer and maximise your return is to increase the number of times each customer buys from you.

In the five-step process, this is called increasing the number of transactions in your business. Instead of constantly chasing down leads and buying new customers, your work is to keep the customers you have bought coming back to spend more money.

In this Business Growth Masterclass we will cover:

  • The financial impact of repeat business
  • How to figure out the average number of transactions of your business
  • How to calculate your average customer acquisition cost
  • The lifetime value of your customers
  • The 80/20 rule and letting some customers go
  • How you can lower the cost of your customers to boost profits

Increasing your repeat business is one of the easiest and most cost-effective ways to boost your bottom line.

Turning a single transaction customer into a repeat or lifetime customer is one of the simplest ways to boost your bottom line. It costs very little and is largely based on the experience you can create for the people who buy from you.

With a little bit of time and thought, you can turn single-transaction customers into loyal patrons, or even big fans of your business. This not only translates into returning customers, but also earns customers that refer you to their friends.

Financially, the more times a customer buys from you, the lower their acquisition cost becomes. You only have to buy customers once, so when that figure is spread over several transactions it goes down.

Here’s a chart of how a 10% increase and 30% increase in average number of transactions can impact your bottom line.

Starting Point 10% Increase 30% Increase
Leads 4,500 4,500 4,500
Conversion Rate 30% 30% 30%
Customers 1350 1350 1350
Transactions 1.3 1.43 (10% increase) 1.69 (30% increase)
Average Sales Value £140 £140 £140
Revenue £245,700 270,270 319,410
Margins 24% 24% 24%
Profit £58,968 £64,864.80 £76,658.40

What is the average number of transactions for your business?

If you have a system for managing customer accounts and tracking purchases, this next step will be really straightforward. If you have a computer-based point of sale system, your reporting functions may even be able to calculate this figure for you.

To figure out the average number of times each customer buys from you, you need to choose a time period (the last 12 months is a good starting point) and a sample of customer accounts with the number of times each has purchased from you. Take 50 at random, or all the customers starting with the letter “T” as an example to illustrate the point.

Then, add up the total number of transactions for each of the customers in your sample, and divide the total by the number of customers in your sample. This is your average number of transactions. For example, if I have a sample of 10 customers, my calculation might look something like this:

4 + 5 + 2 + 8 + 5 + 1 + 2 + 2 + 2 + 6 = 32 32 / 10 = 3.2 average number of transactions

If you don’t have an existing data source for this information, survey your customers or start your own tracking system to use over the course of a week or month. Note on your customers’ accounts when they purchased and what they purchased, or keep a tally at the cash register. If you can’t survey your customers or create a viable database, then just estimate the figure based on your observations over a week or over the history of your business.

Remember that the average number of transactions is going to be different for every business. Grocery stores will have far different figures than furniture stores, computer stores will have dramatically different numbers than coffee shops based on the frequency that people need those products or services.

What is the average customer acquisition cost for your business?

Do you know how much do you spend – on average – on each customer you acquire? To calculate this, simply divide the amount of money you spend per month (or per campaign) on lead generation by the total number of sales in that month (or campaign duration).

For example, if you spend an average of £5,000 each month on advertising, and you generate about 250 unique sales per month, your average customer acquisition cost is £20. Or, if you spent £10,000 on an ad campaign over three months, and generated 400 campaign-specific sales, your customer acquisition cost would be £25.

To evaluate this figure, look at it as a percentage of your average sale. Of the 250 unique sales in first example from the paragraph above, and say the average purchase was £75, £40 of which was margin. Subtract the customer acquisition cost from your margin, and you’ll have the average profit of each sale, in this case it’s £20.

What is the lifetime value of your customers?

Now, assuming your average customer acquisition cost is £20, let’s take a look at what would happen if you turned that customer into a lifetime customer. What value does that customer have to your business?

First let’s look at the value of a single transaction customer:

Customer Acquisition Cost £20
Number of transactions 1
Average value of each transaction £75
Average profit margin £40
Margin minus acquisition cost £20
Total value of customer £20

Then, assume that an average customer ‘lifetime’ with your business is about five years. Calculate as you did above, spreading the customer acquisition cost over the total number of transactions.

Customer Acquisition Cost £20
Number of transactions 15 (assuming 3 per year)
Average value of each transaction £75
Average profit margin £40
Margin minus acquisition cost £38.67 (£40 – [£20/15])
Total value of customer £580

Here’s a more in-depth look at cost of a single transaction customer, in comparison to a tripe transaction customer or a lifetime customer:

One Time Year Lifetime
Customer Acquisition Cost £20 £20 £20
Number of Transactions 1 3 15
Average Value of Each Transaction £75 £75 £75
Average Profit Margin on Each Transaction (excluding acquisition cost) £40 £40 £40
Actual profit per Transaction (profit margin – [customer acquisition cost / # of transactions]) £20 (£40 – £20) £33.33 (£40 – (£20/3)) £38.67 (£40 – (£20/15))
Lifetime Value of Customer (in profit)(actual profit per transaction x # of transactions) £20 £100 £580

Based on the chart above, you can see that the lifetime customer who purchased from you 15 times over five years brought your business £580 in profit, in comparison to the single transaction customer who brought your business £20 in profit.

Both customers cost you the same amount – £20 – but there is a £560 difference in return on investment! Repeat business – the average number of transactions per customer – makes a huge difference on your bottom line.

Give yourself permission to fire some of your customers.

Everyone has a group of customers they enjoy doing business with and are pleased to continually serve (our A-list). Likewise, we all also have a group of customers (our C-list) who are a pain to deal with. They may consistently complain, only take advantage of special offers or never spend much money after a bunch of hassle.

Like a good business owner, I bet you treat every customer with respect, and give them the attention they need – even the C-list. Here is where the 80/20 rule applies: 80% of your revenue comes from 20% of your customers. That 20% of your customers is what we call your A-list.

The important point here is that while you’re busy trying to make your C-list customer happy, you’re missing the opportunity to give your A-list customer the level of service they deserve. Since the majority of your revenue comes from your A-list customers, that’s where you should be focusing your efforts.

So, give yourself permission to fire your C-list, and stop bending over backwards to address their concerns. Don’t let them rule your time. Spend your efforts making your A-list happy, and their purchases will more than make up the difference.

Let’s look at some strategies that will help you boost your repeat business, and your bottom line.

Customer Service

Everyone- even businesses with high customer service standards – can improve the service they provide to their customers. This phrase is used a lot, but it’s true: Under promise and over deliver.

If you’re looking for new ways to impress your customers with service, conduct a survey of your existing customers and ask them how you can enhance or streamline their experience dealing with your company.

When you establish standards of customer service, make sure they are:

Consistently implemented by everyone in your business. Every customer who walks through the door experiences the same level of service, and receive that same service every time they walk through the door.

Convenient for your customer. Make the purchase process seamless for your customer. Think of all the steps your customers has to take from driving or walking to the store until they leave with their purchase, and try to eliminate any inconvenient elements.

Driven by the needs and wants of the customer. Understand how your target market wants to be treated when they’re purchasing from you. What do they value most from the experience? High end linens, or fast service? One-on-one assistance, or ample space and time to browse?

Newsletters

Use newsletters to establish and maintain regular contact with your customers. This is an easy, time-effective and cost-effective customer retention strategy

You’ll spend an upcoming Business Growth Masterclass learning how to create and send effective newsletters, but the most important point to remember is that the newsletter (just like all other marketing materials) needs to be focused on the needs and interests of your target audience.

The most popular and environmentally friendly form of distribution is through email. This is highly cost effective, as some web-based programs start at just £10 per month, and can be customised to your business’ graphic standards.

Here is a list of the types of content you can include in your newsletter:

  • Expert advice or opinion
  • New product or service features
  • New offers or promotions
  • Company news
  • Customer surveys
  • “Missed you!” emails
  • Event or closed-door sale invitations

Added Value

Find ways to increase your customers’ perception of value so they feel that their money goes further at your business compared to the competition. Value added products or services not only add to your average Transaction value but create repeat customers by:

Making a great first impression. Providing a customer with more than they expected – something goes beyond meeting their needs – establishes a solid first impression of your business. They learn to associate the experience of shopping at your business with pleasant surprises, which is a huge draw for returning customers.

Giving them a reason to come back. The perception that your products or services have a higher value than the competition will convince your customers to purchase from you, and refer their friends. The addition of new value-added products or services will keep them coming back.

Here are some examples of added value:

  • Free shipping/delivery with minimum purchase
  • Premium product or service line
  • Bonus gift with minimum purchase
  • Complementary product packages
  • Guarantees or risk-free purchases

happy customer

Incentives and Customer Loyalty Programs

A common form of customer retention is to provide incentives to customers to entice them to come back and buy from you.

A systemised form of incentives is called a Customer Loyalty Programme – and I bet you’re part of several. Loyalty programs work because they provide a consistent visual reminder of your business through a card, key fob, rewards vouchers, or other such items, and give the customer a financial incentive to purchase from you instead of your competition.

These programs vary from simple cards to complex rewards structures, but they don’t have to be complicated or costly. Plus, once they’re in place, they’re super easy to maintain. Loyalty programs are also great market research tools because you can collect a wealth of information on the signup form, maintain a detailed database and monitor their purchase habits.

You’ll spend an entire Business Growth Masterclass learning how to set up a loyalty programme from start to finish, but here are the basic structures to give you an idea:

Loyalty Cards Provide a wallet size card and use a stamp or punch to track their purchases until they reach 10. When they reach the magic number, the next product or service is free.

Rewards Dollars Return a certain percentage of each purchase to the customer using coupons that can only be spent with you.

Rewards Points Award a certain percentage of each pound they spend to a points account. These points can be used to spend in-store, or on special items brought in for points-holders only.

Membership Amenities Produce membership cards, and give your members access to services, discounts or amenities that other customers do not have access to.

Remember, each of your customers is a valuable asset that you have purchased to grow your business.

Treat your customers like you would treat good friends, and offer them the perks and rewards they deserve for their loyalty. I find that this approach is also a lot more rewarding because I get to know my customers, and some of them actually become friends.

Of course, there will always be a few clients you’ll never please, so keep the 80/20 rule fresh in your mind. Don’t be afraid of firing the customers who drain your time and your resources. Your A-list will more than make up the difference in revenue.

In the next Business Masterclass, I’ll show you a ton of ways you can add value to your product or service, and boost the pound value of each and every sale.

As always, let me know if you have any questions.

You can  use the contact form below to discuss and get help with the topics covered in this, or any of the previous Business Growth Masterclasses.

Until next time, good luck!

Do You Know How Your Client’s Make The Decision To Buy What You Sell?

Have you ever given any thought as to how your clients make that all important decision as to whether or not they will buy your product or service? What is it EXACTLY that triggers their buy / don’t buy button? Is it really price that controls their decision, or are other factors involved?

What you need to know…

Believe it or not, price is actually one of your prospects last considerations. Human nature says that no matter who buys what you sell, they will always want “the best deal.” That doesn’t mean the lowest price, but it does mean they want the most “VALUE” for the price they pay. The perception that your product or service offers extraordinary value controls their final decision.

Why you need to know this…

The key is to create “extraordinary value” as it relates to what you sell. In fact, if you do this, you can even charge a much higher price, providing the perception of value justifies that price. Unfortunately, most business owners don’t have a clue how to create “extraordinary value,” and therefore don’t offer it to their prospects, costing themselves massive market share and a boatload of lost revenue.

To create value, a business must “innovate.” You must understand the things your clients want from your product or service, and then use innovative ideas and solutions to either remove the pain and frustration they normally associate with what you sell, or enhance the benefits they receive from using it.

For example, the working mum who feels frustrated and worried when she drops off her child at daycare because she doesn’t know how the child is being cared for finds tremendous relief and peace of mind (extraordinary value) when the daycare installs Web Watch… a 24 camera surveillance system that allows parents to view their child online, anytime.

The cost to you if you fail to act…

If you fail to create “extraordinary value,” then you look like, feel like and smell like your competition. You will be forever doomed to compete with them on price, and when you’re forced to compete on price, you have just lost the battle. There will always be someone willing to undercut your price… ALWAYS!

By innovating your business, you begin to separate your business from your competition. You begin to eliminate your competition from the minds of your prospects… and you will have your prospects literally saying to themselves that “I would be an absolute fool if I bought this from anyone else.”

Innovation attracts your “ideal” clients to your business. These are the clients that will buy more from you at premium prices. They will spend more money and buy from you over longer periods of time. Your revenue and profits begin to skyrocket as you begin to add unprecedented market share.

Look for ways to “innovate” your business and do so in such a way that you create extraordinary value in the minds of your prospects.

Want to improve the performance of your team? Improve your bottom line? Why not try this?

Description: Ology Coaching

Change Behaviour – Transform Performance!

If you could improve the performance of you and your team by 10%, would you want to do it?

A simple and powerful way to improve both performance and motivation in ANY business

In this difficult economic climate everyone is looking for more from less. DiSC® offers a proven, effective but simple way to make all communications more effective. In doing so it reduces the likeliehood of misunderstanding or conflict – and as a direct result, improves motivation of the team.

Whether you are in business yourself, lead a team or are a trainer, coach or consultant your business and the performance of the people around you can be changed by adopting this powerful approach.

Benefits of Understanding Behaviour include:

  • Description: Growth with OlogyImproved communication
  • Effective introduction of change
  • More effctive team meetings
  • Better understanding of what motivates people
  • Avoid conflict and misunderstanding
  • Better sales conversations
  • Greater cooperation

    Leading to BETTER BOTTOM LINE RESULTS!

Starting a Business in Challenging Times

Stack the Odds in your favour!

Experienced business owners will tell you that when you are starting your own business, you may have to wear many “hats”. You may have some great ideas, but fail on the more “administrative” tasks that are needed to be successful.  You need to know your strengths and weaknesses.  Lack of management experience accounts for many small business failures. Entrepreneurs often think that they can do it all and may not seek outside help when they need it. Do not be shy about seeking out the advice of expert advisors, networking with other entrepreneurs and hiring staff to work on the tasks that you are not good at.

On one hand, desire and persistence along with innovative thinking can improve the odds of having a successful business. Knowing what you want to achieve, determination, setting goals, paying attention to detail and motivating others are key elements for your success and business growth.

On the other hand, desire and persistence alone will not make you successful.  For example, a lot of people love to cook and are good at it too.  So, they dream of starting a restaurant.  However, there are already many restaurants, the profit margins are often slim and consumers have lots of choice.  To be successful in that market, you need to be truly offering something new or unique.  In short, you need to be sure that there is a big enough market for what you plan to offer and that the competition isn’t already too strong.

Survival Tips

These tips can help you to overcome a great number of the factors that lead to the failure of many small businesses.

1. Develop a good marketing and business plan that takes into account customer needs, competition, pricing and promotional strategies.

2. Understand your business finances, such as cash flow and handling credit.

3. Make sure you have enough working capital to allow time for the business to grow.

4. Keep a good inventory of your products or services and your existing customers.

5. Supervise, train and motivate your staff.

6. Make sure you do have the experience, knowledge and skills to run your business.

7. Plan every part of your business from start to finish – to fail to plan is to plan to fail!

8. Know your market and define how much of it you will be able to capture – going through this process will ensure a good understanding of your chosen market.

9. Make sure you are offering a product that is unique and desirable compared to your competitors.

10. Don’t under-estimate your expenses and over-estimate your revenue.

11. Make sure you have some cash reserves or a line of credit to help you get through slow periods.

12. Don’t be too proud to seek expert advice when you need it.

Whatever else you do, at least reflect on each of these 12 tips and see which can help you to sustain and grow your new business. The very worst thing that you can do is nothing!

Remember… It is insanity to continue to do the same things you were doing before and expect a different outcome!

If you would like to learn more about this subject then you can download my e-book “The 7 steps to Ultimate Business Success”. Just Click on the following link: http://bit.ly/7StepstoUltimateBusinessSuccess