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When Lions Lead Lions

Someone tagged the railroad bridge at the end of our block.

It says, “An army of sheep lead [sic] by lions will always defeat an army of lions lead [sic] by sheep.”

All four cars at the light praised me when I took this picture, thinking that I was going to report it to the authorities.

I took the picture because it gave me pause and made me think. The message would seem to be that the talent of leadership outweighs the talent of the workers. The leaders willing to make the bold moves will inspire their followers to accomplish greater things than leaders with weak ideas and strong followers. In battle that may be true, but in retail I’m not yet convinced.

A great work force without great leadership will ultimately fail.
A great leader without a great work force will ultimately fail.

Oh, they both might stick around by default for a while, but in retail both of these will fall quickly to lion leading lions.

You can spend all your time on training your staff, but if you don’t spend any time training yourself, another retailer will eat your lunch. Likewise, you can spend all your time training yourself, but if you don’t spend equal time training your staff, another retailer will clean your clock.

But when the lions are led by lions, the Savannah is all theirs for the taking.

-Phil Wrzesinski
www.PhilsForum.com

PS If you’re a sheep of a leader, hire a lion to manage your business. If you have a lot of sheep on the front lines, go find some lions to pounce on those customers. Don’t worry about teamwork. Lions work well in a pride. This book will show you how to identify the right type of lion, whether for management or the front lines.

Team Building and Business Building – The Principles are the Same

There is an article floating around about Team Building Gone Bad.

As a business owner, you’ve heard about Team Building – doing activities to help bring the team closer together and increase communication, cooperation, and trust. You’ve probably thought about doing something with your own staff.

Before you do, do me (and your staff) a favor. Write down a clear goal of what you hope to accomplish with your efforts. Then, when you go to sign up for an activity under the guise of team building, if the facilitator doesn’t ask to see that goal, run away. They don’t know a thing about team building.

I do. I used to be a facilitator. I used to train facilitators. When I read the article above, it got me thinking about how team building really depends on the skill of the facilitator more than the activity chosen.

I wrote this on a friend’s FB page when he linked to the article…

A good facilitator knows [that there are five stages of development in a group] and would never let any group do the stuff that was talked about in this article without a lot of prep work and other activities done first.

A good facilitator would know clearly the goals of the team building and plan activities to specifically address those goals.

A good facilitator would stop an activity before it got out of control, knowing that the activity is secondary to the lesson to be learned.

A good facilitator would make safety the number one priority (and number two and number three) because without a certain level of emotional and physical safety guaranteed, no one will take any perceived risks.

A good facilitator would follow up because team dynamics are always changing. Just kick-starting a new culture does not mean that the changes will hold.

It got me to thinking that the same exact principles apply to Business Building. Let’s replace facilitator with manager and team building/group with business building/business.


A good manager knows that there are five stages of development in a business (Tim Mile’s First Order of Business) and would never let any business do the stuff that was talked about in this article without a lot of prep work and other activities done first.

A good manager would know clearly the goals of the business and plan activities to specifically address those goals.

A good manager would stop an activity before it got out of control, knowing that the activity is secondary to the lesson to be learned (and sales to be made).

A good manager would make safety the number one priority (and number two and number three) because without a certain level of emotional and physical safety guaranteed, no one will take any perceived risks (this applies to customers and employees).

A good manager would follow up because business dynamics are always changing. Just kick-starting a new culture does not mean that the changes will hold.

Make sure you hire a good facilitator before you embark on any Team Building. Make sure you hire a good manager before you embark on any Business Building.

-Phil Wrzesinski
www.PhilsForum.com

PS I dusted off an old paper I wrote on Team Building and am getting it ready for the Freebies section of my website. If you’re interested in seeing a copy before I get the site updated, send me an email.

Is it a Business or Just a Job?

I work with a lot of smaller retailers – start-ups and indies who are just getting going in this crazy industry we’ve all chosen. Many of them get this one question wrong.

Did you start a business or just create a job?

Most people think they are starting a business, but in reality all they have done is create a job for themselves, often a low-paying job at that. Then when they go to sell the business, they can’t find any buyers.

Here are three questions you need to ask yourself to see whether your retail shop is truly a business or just a job.

Could the business run without you? More specifically, could you hire someone to do your job, or is the whole reason the business exists because you exist?

Do people come to your business because of what you offer or what your business offers? If the vast majority come because of you, you might have a job, not a business.

Do you pay yourself a salary? If you don’t then it isn’t even a job, it’s a hobby. If you do pay yourself a salary, is it a good one? Is it enough to hire someone else to do that job? If you said no, then you might have a job, not a business.

Do you show a profit? If you’re paying yourself a salary, that is a good thing. It means that you could potentially hire someone else to do that job, while you reap the profits – assuming there are some profits. Some owners will make the correct move of paying themselves a salary, but do so at the expense of showing a profit. Some will keep profits low on purpose to avoid taxes. There might be a number of reasons for not showing a profit. Amazon doesn’t seem to need to show a profit. As long as the cash keeps flowing they (and you) can usually keep doing your job. But an indie retailer without profits probably won’t be able to sustain that cash flow for too long. You and I don’t have the deep pocket investors Amazon has. If you’re paying yourself a salary in lieu of showing a profit, you might have a job, not a business.

Not that there is anything wrong with having a job, not a business. You can make a healthy living for many years that way. You might like the job of being boss (and you might be really good at it). You might like the salary you pay yourself for being boss in lieu of having your business show a profit. Those are good and valid points for you to keep doing what you do.

The only downside will be the exit strategy. Once you decide you no longer want your job, if you didn’t first turn it into a business, you’re going to have a hard time finding anyone who wants to buy it. No one “buys” jobs. They buy businesses. Without a business, all you have left to sell are your assets.

Neither concept is wrong, but not knowing the difference can be costly down the road.

-Phil Wrzesinski
www.PhilsForum.com

PS If you want to turn your job into a business, you need to think about three things.

  1. Could I hire and train someone to do my job?
  2. Do I pay well enough to hire someone competent to do my job?
  3. Is there enough profit and/or growth potential to keep the business making money?
When you can answer yes to all three, you have a business, not a job. You have something you could sell down the road. You are truly an entrepreneur. Heck, you could should hire someone to do your job right now and go start another business or two.

If You’re Not Happy, Don’t Settle

I finished the stage, well at least the main part of it. We still have some decorations to complete, but the stage was up, the curtain was in place, people were using it.

Something didn’t look quite right to my eye.

This morning my wife made a suggestion. She was absolutely right. I had put the curtain in the wrong spot. The easy solution was to just live with it. Was it horrible? No. Was it workable? Yes.

The bigger question was what would it take to fix it?

The answer was one hour and one band aid.

Before – with the curtain at the front edge of the platform.
After – with the curtain moved back.

Now the stage fits my eye better. Now the stage has a space in front of the curtain for storytellers, performers, maybe even a visit from Santa. Now the performers can be seen from a wider angle. Now the stage looks more like a stage and less like a curtained room.

The lesson? Before you settle for something not quite perfect, ask yourself these two questions.

  1. Can I fix it?
  2. Can I live with it? 

If you can answer yes to the first question, fix it. Period. If you answer no to the first, but you can answer yes to the second, keep it as is. If you answer no to both, scrap it and start over.

Yes, this applies to just about everything. Just be sure to ask the questions in the right order.

-Phil Wrzesinski
www.PhilsForum.com

PS Don’t settle. Make the effort to fix the things you can fix. It pays off in the long run. You are in this for the long run, right?

Leading from the Conductor’s Podium

The conductor of a symphony orchestra has the best seat in the house. All the music is focused right at him. From the podium he hears and sees everything that is going on. He sees things in the back row of brass that the violinists in the front row can’t. He hears things from the clarinetists that the timpani players can’t. He gets all the information from the podium.

That information is what he uses to guide his orchestra to create a beautiful sound.

The leader of a team has the best seat on the team. He gets all the feedback from all the different members of the team. He gets all the different perspectives and is able to plot them against the big picture. From his position of leadership he sees and hears things that the individual members of the team cannot always see and hear.

That information is what he uses to guide his team to achieve more.

But what about the view from the other side?

The podium, while offering a clear view, also puts the conductor in a position of power. Everything he says or does is amplified. Every word, movement, gesture is larger than life. Conductors who use grandiose gestures and sweeping movements are fun to watch. But they take the focus off the music and put it on themselves. They use their power to control. The musicians soon learn that it it is not about them, but about the conductor.

An experienced conductor, however, knows that the true power of an orchestra comes from the musicians, not from him. He uses his movements sparingly, knowing the podium amplifies everything he does. It doesn’t take much movement of the wrist to move the baton. His job is to put the focus on the orchestra, to direct their power.

The leader of a team needs to realize that his leadership is like a podium. Every word and action is amplified. He can go yelling and screaming and put all the focus on him, or he can use subtle movements that put the focus on the team and direct their power.

The podium is the best seat in the house. But you better know how to handle it.

-Phil Wrzesinski
www.PhilsForum.com

PS Every word is amplified, too. Choose your words carefully, constructively. Your team is looking to you for direction. They will follow what they see and hear you do, including those casual, flippant remarks you thought were harmless. Read this from Bob Phibbs to see more of what I mean.

Motivating Your Employees

This Friday I am doing a talk here in Jackson on motivating your employees. The talk is part of the Small Business Summit put on by OSB Community Bank and takes place at the Grand River Marketplace from 11:30am to 2pm. (Warning: the content of this presentation will make lesser minds explode).

You’re invited.

I am debating whether to put together another Freebie for you. I can certainly write up what I am going to say. My hesitation is that it will end up mostly being a book review. Well, two book reviews.

Much of my leadership style and much of how I motivate my team come from two books.

Drive by Daniel H. Pink
Maestro by Roger Nierenberg

Would you like to learn how to motivate your staff to their highest level of achievement and creativity? Read Drive.

Would you like to learn how to lead a team of high-achieving creatives? Read Maestro.

Would you like me to summarize my thoughts on the two books including how I use their approaches in real life in a new Freebie later this fall? Leave me a comment below (or on Facebook or Google+ or by email).

Hope to see you Friday.

-Phil Wrzesinski
www.PhilsForum.com

PS Would you like me to give this presentation to your group? Send me an email. This presentation will knock the argyles right out of those wingtips.

Peeing Before the Race

Jeff Foxworthy cracks a wonderful joke about a financial planner who advises that you take half your earnings and shove them under a mattress and the other half down to the track and bet it on the dog “who does his business just before the start of the race.”

You laugh because you know there is some truth in that last statement. The dog who does his business is going to be better suited to run a fast race.

Your race is about to start. Have you done your business?

Have you looked around the store to see what is old and out-of-date, broken and need of fixing? Get it fixed now.

Have you identified the must-have items for your store? Order more of them now.

Have you crunched your numbers to see how much you need to buy between now and Thanksgiving? Get out the calculator and a pencil today and do a little math.

Have you sat down with each staff member to show them what it will take for them to get to the next level? Set aside some time in your calendar starting Monday.

Have you updated your website? Have you planned out your events? Have you ordered giftwrap and bows and bags? Have you crafted your message? Have you plotted out your staffing needs?

The race will start whether you are ready or not.

Your chance of winning goes up when you do your business before the race.

-Phil Wrzesinski
www.PhilsForum.com

PS September is a great time for doing your business. The kids are back in school. There is a collective sigh in September between the Back-to-School season and the Holiday Rush. Make a list of everything you do this September. Write it all down. When you can look at what you did this month, you’ll quickly see whether what you are doing is leading you to a better November/December or not. Plus, you’ll have a good reminder for what to do next year.

How Much Are You Investing in Your Business?

The Jackson County Chamber and I are teaming up to offer the best segments from the Jackson Retail Success Academy for all Jackson area businesses (and anyone willing to make the drive).

Three classes. Three four-hour days. $250 investment in your business (or $99 per class if you cannot make all three or are not a retailer.)

Inventory Management and Financial Health for Retailers
Thursday, June 27 (9am to 1pm) 

Every retailer knows that Cash is King. But do you know how to get more cash in your business to grow your kingdom?

This Business Boot Camp is designed strictly to help retailers understand how to manage inventory and expenses and, most importantly, your cash. You will learn simple formulas that the smart retailers use to keep the checkbook fat and happy. You will learn the Do’s and Don’t’s for keeping your inventory fresh and moving. You will find out where your cash is hiding and how to get more of it.

We will discuss things like Open-To-Buy programs, financial statements, the proper numbers to measure, how to price your products for profit, and the simplest way to get the most out of the inventory you sell.

Yes, there will be math. The important math. The kind of math you have to do if you want to be successful. What will surprise you is how quickly and easily you will learn the math and see the results.

(Note: to get the most out of this Business Boot Camp bring your previous fiscal year’s Balance Sheet and Profit & Loss statement. You will not be asked to share, but it will help you do your own math.)

Shareworthy Customer Service for Small Businesses
Thursday, July 11 (9am to 1pm)

We all know Word-of-Mouth is the best form of advertising. But do you know how to get people to talk about your company?

This Business Boot Camp will teach you the fundamentals behind generating Word-of-Mouth from your customer base. You will learn how to exceed customer expectations in such a way that they have to tell someone else. You will learn how to create a culture in your business that wants to delight your customers at every turn and raise the bar of Customer Service so high that you turn clients into evangelists.

Whether you are a retailer, a service provider, or any type of business, you will walk away with four ways to generate word-of-mouth, a new approach to hiring and training, at least one planned staff training, and a better understanding of what it takes to offer Customer Service that makes people want to talk.

Word-of-Mouth is still the most powerful form of advertising. This Business Boot Camp will be one you will be talking about for a long time.

Branding and Advertising: Reaching New Customers in Today’s Market
Thursday, August 8 (9am to 1pm)

The advertising that got you results yesterday isn’t working today. Today’s market just can’t be reached. Or can it?

This Business Boot Camp will teach you the fundamentals of marketing that work in any day and age and how to apply those to this day and age. You will learn what moves the needle in advertising and how to craft a message that gets your potential clients to take action. You will learn the biggest myths of advertising and how even the largest companies throw good money away every single day. You will learn how to get the most out of your advertising budget (even if it close to zero).

Advertising cannot fix your business, but if you have a good business model, you will learn techniques that will grow your business the right way and keep it growing for years, no matter what kind of business you run.

Contact the Jackson County Chamber of Commerce to sign up. It will be the best twelve hours you spend on your business this summer!

Phil Wrzesinski
www.PhilsForum.com

PS If you are struggling in any one of these areas, you should sign up for that one class Ninety-nine dollars for four hours of top-level, hands-on instruction is the kind of no-brainer investment you know you should make for your business.

PPS If you don’t think you need any of these classes then you should definitely sign up for all three. Last night as I did a presentation for the Quincy Chamber of Commerce, one of the organizers lamented that it was only the businesses who were already doing well that showed up. I reminded her that was why they were doing well. They kept showing up.

Information Gotta Be Free, A Good Salesperson is Priceless

What did we do twenty years ago when we wanted information on a certain product we were considering?

Anyone remember?

There was Consumer Reports. There were other magazines that might have done a review or two. There were your friends and family – a much smaller circle before Facebook helped us all reconnect.

And there was the salesperson. The gatekeeper. The controller of knowledge.

A Good Salesperson knew all there was to know about everything she sold and quite a lot about the stuff she didn’t sell. A Good Salesperson knew all about you, too. What you liked and didn’t like. What worked well for you. Your preferences. Your desires. A good salesperson let you through the gate, showed you what you needed to know, and found you the perfect fit.

When you found a good salesperson, you kept her. You went back to that store for the information, the suggestions and the personal touch. Oh sure, sometimes you got the information and bought elsewhere cheaper because of a deal too good to pass up. But you understood there was a price to that kind of knowledge and more often you were willing to pay for it.

The Internet changed all that.

Information is FREE. Wikipedia said so. Jeeves said so. Yahoo said so. Google said so. Information is free and plentiful. Not always accurate, but always out there.

Today we can pull up dozens of review sites, complete spec sheets and instructions, hordes of testimonials both good and bad all in a matter of seconds. Today we can walk into almost any store in America and know just as much or more about the product than the gum-chewing clerk waiting on us.

The Internet brought the level of available information up. But at the same time,the level of professionalism of the salesperson went down. I partly blame Albert Einstein who said, “Never memorize anything you can easily look up.” It is so easy to look things up now that salespeople stopped knowing.

Except what does that tell the customer when your salespeople are looking up the same information the customer looked up last night at home?

The other thing we’ve lost has nothing to do with the Internet. Our salespeople have lost the ability to connect.

Information gotta be free. And it is. The difference now between “selling” and “clerking” is the connection. Go back up and read that paragraph about the Good Salesperson. Those last six sentences are why showrooming is such a big deal. Salespeople have forgotten about connecting. Customers feel no connection so they gather up all the free information they can and shop wherever they please.

Want to combat showrooming in your store? Spend your money hiring good salespeople who want to connect. Spend your money teaching them how to connect. Spend your money, your time, your effort getting to know your customers better.

The Internet will never be able to compete with that.

-Phil Wrzesinski
www.PhilsForum.com

PS In a few days I’m going to be showing a bunch of juvenile product store owners how to connect and sell. Shortly after that I’m going to post my latest Freebie – Selling in a Showrooming World. If you can’t make it to Vegas, be sure to look for the new eBook. Just like all the information I’ve posted… It’s FREE!

Managing Expectations

Have you ever done something for a customer and been disappointed by her reaction?

I mean, something really nice, quite special and unexpected, yet she didn’t respond in kind? She didn’t say thank you or decide to buy more, or promise to bring all her friends back to shop with you?

She didn’t even acknowledge that you did something nice for her.

Now you’re pissed. Now you’re in the back room bitching and moaning about the ungrateful customer. Now you’re griping and complaining about how customers don’t care and are rude and don’t get what you have to sacrifice to be there for them and don’t understand how slanted the playing field is against you and don’t realize what it costs for you to be in business and have no idea what you have done for the community and…

Whew. Working up a sweat back there.

I would hate to be the next customer through the door.

The problem here is one of managing expectations. We need to realizes that unless we tell the customers up front how we expect them to behave, we cannot get upset when they don’t behave the way we expect.

I am not actually suggesting that you tell them how to behave. I’m suggesting you give up your expectations. I’m suggesting you continue to do nice things, special things, unexpected things for your customers every single time but without any expectations in return. I’m suggesting you continue delighting customers whether they acknowledge it, whether they tell you, whether they even seem to care.

Give up the expectation. Just do the right thing. Time and time again.

We all know that customers who have a bad time likely won’t tell you, but they will tell their friends. Why would you think that customers who have a great time might be any different? That customer you bent over backwards for might not tell you how grateful she is, but she’ll tell her friends.

It’s all about managing expectations.

-Phil Wrzesinski
www.PhilsForum.com

PS Yes, this even applies to showrooming. I’ll talk more about that in future posts.