Cash/KASH

Coaching is like having a spring board to propel your business to new levels. Are you looking for ways to generate more Cash? Did you know that you already have the KASH you need.

Knowledge
Attitude
Skills
Habits

In French –Connaissances, Attitude, Savoir-faire, Habitude

Knowledge
Did you know that the sum of your knowledge, your education, and your experience is what enables you to do what you do? How skilled are you at making use of this ability?

Attitude
Attitude is your way of thinking and your approach of thinking. For example when you are faced with a challenge, do you say to yourself “I can do this’ or do you say "I am unable to do this”. Your attitude can hold back or spring board you beyond the limits of most people. How skilled are you at controlling your attitude?

Skills
We all have a variety of skills to meet the objectives of the business but leadership enables you to connect and deal effectively with people. How would you rate your Leadership skills?

Habits
We need to have effective habits that enable us to focus our time and energy and on the high payoff activities that get the greatest results.

Now may be a great time to top up your cash account!

Now is your chance to change your history

I was reading the book Disciplined Dreaming by Josh Linker recently and it was another great reminder of how important it is to continually challenge your business model. If you are not tinkering with your business at least once a week, sooner or later one of your competitors will start to tinker with you.
Lets face it, your competitors are probably not actively plotting to take market share or business from you but if you are not actively expanding your creative vision you could wake up one morning and fine someone else has implemented your dream.

Complacency is not an option. Every day a new business opens and an old one closes. So you need to take control and be the one with the audacity to decide what the future will be and not wait until circumstances force you to a corner. You have to be disciplined enough to spend time working on your business while working in your business.

‘Today is tomorrow’s yesterday’ - take a moment to let this really sink in. You are in fact living your past today. Now is your chance to influence and change your history today. Think about it.

In a recent news story on business management, it was suggested that you “Think like a designer”. Good designers look at the world with a different viewpoint and awareness. They have unique views that enable them to come up with new products and innovations. They tend to think about people, not just customers. For every one new product they come up with, they have four more on the drawing board waiting to be launched. As an example I have never seen a survey asking if I needed an iPod or needed the ability to text messages. Please let me know if you have. These things did not just happen but just appear on the market overnight and became indispensable. They came about through a plan carefully developed, implemented and adjusted as required. Designers move beyond asking what customers want and think they need. They create something that they feel people will yearn for. You could say that is a risky but essential way of doing business.

How do you begin such a process? One way might be to work with a business coach who can help you to explore multiple ideas. Help you to tap into your creative side in order to establish potential future trends in your particular area of business. You could also hire innovative and inventive people that have the ability to look at things upside down instead of right-side-up. Another way might be to get out in the world, scrutinize and observe what people do. We have to move beyond the traditional thinking constraints we all have. We have to see through what people tell us they need (or think they need) and start to really observe what they are actually doing and how it is accomplished. You might be quite surprised to learn how the need and actual the end-result is accomplished differ and how large the gap is between what they say, what they are actually doing and how they are doing it. Many of us are too focused on the present but the designers who live in the mystery of the future can foresee the future needs. They live by credo ‘Yesterday is history, tomorrow a mystery, today is a gift, which is why today is called the present".

To all business owners reading this article my challenge to you will be to take advantage of this great gift that is the present we all have and start crafting what people will need tomorrow by stepping out of your current beliefs to start thinking like a designer.

Call to action;
The question you need to answer after reading this article is,
• What will you start doing differently tomorrow? And how do you propose to keep score?
• Are you capable of being a disruptive force of change? In order to bring out the best you can be and the best your employees can be.
• Can you or your employees do one thing differently that would drive the business results to a new level over the next 6 to 12 months? Remember it takes 60 to 90 days for the change to be internalized your quit line will need to be longer than most of the people your know.

In one business we worked with, the owner was doing twice as much as the employees. She was working 60 to 70 hours a week and had no time to take any vacation. Today she works more on her business and less in the business as a result of developing improved leadership skills that have enabled her to tap into her employees’ underused potential - a seemingly impossible task only a few years ago. She is now able to take a three week vacation twice a year and everyone contributes to the overall business objectives. Each person is working not only on delivering services; they are now acting in the best interest of the business and the customers. Interdependencies have been developed and along with the owner, they have become an integral part of the business.

For this type of change to happen one must be open-minded enough to allow employees the opportunity to bring ideas to the monthly team meetings that contribute towards overall short tern and long term strategy. The employees who work with the customers, in turn, listen to the customers and what they are looking for and want. Prior to the change turnover was high and very little communication to take place. Remember that what can differentiate you business from another are those breathless moments in time that all customers and you as a customer yearn for. What to learn we are just a phone call away. Expect the best from tac-coaching.com

‘Today is tomorrow’s yesterday’

In a recent news story on business management, it was suggested that you should “Think like a designer”.

Good designers look at the world with a different perception and have unique views that enable them to come up with new products and innovations. They tend to think about people, not just customers. Think about it.
I have never seen a survey asking, if I needed an iPod or the ability to text messages. Please let me know if you have?
These things did not just happen they came about through a plan and strategy.

Designers move beyond asking what customers want and think they need and then they create something that they feel people will yearn for. You could say that’s a risky way of doing business or is it?

So how do you begin such a process? One way might be to look outside the box you have created and start to hire innovative and creative people that have the ability to look at things upside down instead of right-side-up. Another way might be to get out in the world and watch what people do. We have to move beyond the traditional, thinking constraints we all have. We have to move beyond what people tell us they need and start to observe what they are doing. You might be quite surprised to learn, how they differ and how large the gap is between what they say and the actual do. Many of us are too focused on the present but the designers live in the in the mystery of the future. "Yesterday is history, tomorrow a mystery, today is a gift, which is why today is called the present".

So my challenge to you will be to take advantage of this great gift that is the present we all have and start to design what people will need tomorrow by stepping out of your current beliefs, to think like a designer.

I look forward to your feedback
Expect the best

Are you 20/80 or 80/20?

by Ken Ingram President of www.tac-coaching.com

To run a successful and competitive business it is essential to follow a set of rules, principles and laws; more often than not failure to do so will result in a short and regrettable business venture. That being said, it’s interesting to learn that one of the laws that can have the biggest impact on your profits is being ignored by most businesses. Are you aware that in 1906, Italian economist Vilfredo Pareto created a mathematical rule of thumb that states 20% of something will result in 80% of something? As an example 20% of your clients represent 80% of your revenues and the inverse is also true: 80% of your clients represent only 20% or your revenue. It’s come to be known as the Pareto Principle, and if you’re not utilizing it, you probably should be.

As a business owner, the value of applying the Pareto Principle in most aspects of your business is that it should remind you to focus on the 20% that matter the most.

You need to take the time to identify and focus your energy on that group because during any given day you’ll end up fire fighting and this saps your time. So you must remind yourself that your top priorities always need to be addressed first. If something in your schedule slips, or if something is not going to get done, make sure it's not part of that key 20%.

The importance of using this system is to remain focused on ways to increase revenue without working harder. You can make equal or greater income in less time, reduce the stress on the business and all your employees by working smarter. If you have the option, and I believe that you do, than develop a strategy for choosing your customers. Reflect upon where you can get the best return on your investment of time, energy and marketing dollars.

So what can you do? Profile the top 20% of your client base who represent 80% of your revenue by:
• Uncovering existing ‘marginal clients’ who have the potential to become profitable clients’ and open the door to selling them more products or services.
• Define what constitutes a profitable client based on your ten clients who give you the most business each year.
• At every opportunity ask the people in your network for someone to contact who match your criteria.
If you could develop and groom 10 more clients just like the ones in your top 20%, you would see a huge jump in your revenue.
So what's holding you back? Why aren't you already leveraging your profitable clients and reducing the time you spend with marginal clients?
The process makes perfectly good sense, but very few businesses - set themselves up to win by creating a strategy focused on the high payoff group of clients. As a bonus you can now pay more attention and provide WOW customer service to the people who earn you the most profit. I assure you, they’ll love the special treatment.
In reality, you probably can't convert all of your marginal clients because they might not all agree with your plan. Maybe my suggestion doesn't even make sense in your business.
• But I challenge you to take a good hard look at where you are spending your time.
If you are hesitating, determine your real reasons for not pursuing this strategy with enthusiasm.
Below are Five Steps to help put Parato`s Principle at the top of your agenda:
1. List all your clients - preferably in a spreadsheet program. Enter the clients’ name, the revenue that they generated this year and last year. Estimate the average revenue from them over the past five years and the potential revenue for next year. Is it going up or down? What percentage of your total revenue does this client represent for your SPA business?

2. Sort your columns by the margin of revenue and you should be able to identify a pattern. Who are your profitable clients and who are your marginal clients? If something is changing, what are the reasons? Predict which ones will be in your group of profitable clients next year. Do you have all of their business or are you sharing it with others spas? What percentage of their business do you have now?

3. To determine what are the common traits of your profitable clients consider:
a. What are the products or services they purchase?
b. Do they have untapped potential?
c. What is the strength of your relationship with them?
d. How did they become a client?
Also consider what benefits your profitable clients are receiving by dealing with you. I suggest that once you have identified this niche group, call and ask them to help you define your business more clearly. Every important client will value the opportunity to help you grow your business and appreciate that you value their suggestions and feedback.
• Look at your marginal client group to see if you've overlooked people who, with some effort, could be moved up into the profitable client category in order to increase the amount of business they do with you.
• Develop a specific plan to give away, or manage your marginal clients in a way that is relative to their business value.
If you react blindly to your customer base and treat all clients the same, then you are definitely working harder - not smarter. Therefore develop a client strategy that enables you to intelligently identify your top clients and spend more time with them and others like them. Are you 20/80 or 80/20?

Is the world changing or are you changing?

Before we begin to debate this question, let’s start with the meaning of the word change: To become or make different. Substitute or replace. Transition from something. Obviously, the number of variants continues and I could add more but this should a good start. I guess when it comes to change, the bottom-line is that we are attempting to make a fresh start in our business with the expectation of a positive result at a predetermined point in the future. Dr. Kit Silcox once shared with me three these questions of wisdom:

• What do you want to do?
• What do you need to do?
• What can you do?

Answering these there questions may be an excellent way in determining what you might need to change in your business to meet the future needs and expectations of your clients.

The last six months have left many businesses scrambling for ideas that enable them to stay on track. What they wanted to do, what they needed to do, and could do has been de-railed and influenced not only internal forces but in the present context more strongly influenced by external forces. One thing is certain; you succeed when you think critically and ask questions.

The problem generally is that we may not be asking enough challenging questions in order to generate a clear and balanced perspective.

If you are alone in your business you may decide to involve family and friends in the process.

If your business is larger, get a few of the key managers involved. You can even take it a step further by involving a business coach to facilitate the discussion so that you ask questions that will permit everyone in the process to see well beyond conventional discussions. The process should be well documented and prioritized and should lead to both short-term and long-term goals and a strategies to move forward.

The economy, market shifts and demographics will continue to affect us but we do have a choice. The choice to react to our current situation or to focus on the future. Nicholas Boothman said it so well in his book ‘How to connect in business in 90 seconds or less’ in referring to KFC. Nicholas was not talking about chicken. He was taking about a concept of Knowing what you want, Finding out what you are getting and, most importantly Changing what you are getting until you get what you want.

It is obvious the world is changing but instead of trying to control change and all variables that are affecting you, control the change and speed around you by asking the type of questions that keep you firmly in command.

Tapping into your growth potential in 2009

As I write this I am unaware of how may of you read the articles in Canada’s Financial Post newspaper. The Small business section on Monday June 1, 2009 contained three great articles that I felt were worth discussing because the messages have significant value.

1. Business plan can unlock your growth potential.
2. Do not make knee-Jerk calls.
3. Credit for those who know how to ask for it

Lets first talk about the relationship between how a “Business plan can unlock your growth potential” and the link to the second article “Do not make Knee-jerk calls”.

It is pretty obvious that we all tend to live and work in an environment that expands and shrinks sometimes at a rapid place and sometimes at a slow pace. We also know that some small business owners tend to fly by the seat of their pants and make decisions based on Gut feel while others are well informed and tend to make tactical decisions. So which of the two type is best? Many studies have been done that indicate 85% of a businesses success is related to being able to make tactical decisions. In doing so we set ourselves up to win because all the chaos associated with change, can be better managed and controlled.

So if this is true how does it relate to the second article? In the second article they begin by talking about how the down turn in the economy is both an opportunity and a threat. An opportunity because it allows us to seriously evaluate what is important to the business. The evaluation should be a written plan that enable you to be more tactical.

It can also be a threat because short term cash flow issues can cause you to make knee jerk cut backs that affect long tern goals. An example would be cuts in the budget to develop yourself or your employees. Image for a moment the owner of a sports team cut back on coaching and left the coaching to the team captain. He did save money that particular year but the team did not make it to the finals. For sure all the players knew how to play game but the elimination of the coach was a knee jerk reaction. Similarly in another case the orchestra cut back on the conductor. Everyone can still play music but it is more noise then harmony. So in conclusion having a plan and Milestones will keep you on track, unlock your potential and keep you from making knee jerk decisions that could affect the longer term results.

Let’s talk about the third article about credit for those who know how to ask for it. Contrary to common belief the banks and other institutions are still loaning money. One of the important comments made in the article is that you should “cultivate your relationship with a banker long before you need the loan. Remember the first rule in sales? “People do business with people they like trust and respect”. So it is critical to take the time to build those key relationships with your banker, accountant, attorney and financial advisor if you have one. If you do not, you should start because in business it is important to have your team ready to play when you need them. I have done this for myself and for my business and it has been well worth the time invested.

I trust that the views shared were of value and I look forward to your feedback.

Expect the best Ken (514) 668-2320

The Chess Game of Outsourcing

By Ken Ingram

Cost reduction is no longer the sole reason to outsource. Outsourcing itself has changed. In the past, companies had all the talent, skills and abilities needed to reach the businesses goals and objective. However in today’s constantly changing environment, our capacity to maintain those skills has become scarce.Organizations are evolving at a much faster rate than in previous years in order remain competitive and the most compelling reason to outsource may be for survival and business performance.

When I became a black belt in Six Sigma, many of the employees looked at the new methodology as a strategy not for the purpose of becoming more efficient and competitive, but as strategy to eliminate jobs. Those of us who saw it as a methodology to improve cost and to become more competitive while increasing customer satisfaction were able to increase our value to the organization. By getting involved in the process we became a catalyst and were recognized as change agents.

If a business is not constantly making adjustments and corrections in all areas of the business, it becomes complacent. Complacency leads to extinction even for businesses that have been around for decades. One area often overlooked is the workforce. Unless a consistent effort is made, even people will depreciate. We have to constantly challenge the status quo or risk becoming a part of history.

When you have great people, cross-training can be a solution to the changing business dynamics in lieu of outsourcing. You may already have the right people in your organization but they might lack the knowledge and know-how to become the absolute best that they can be. They may resist change and you may resist change because of the investment. In Quebec, the government offers subsidies of 50% of most mandates to keep your business and its people running at optimum.

Peter Drucker’s ‘Management Challenges for the 21st Century’, he describes how the old paradigms will need to be replaced by new ones. In the book ‘Good to Great’, Jim Collins talks about why some organizations make the leap and others do not.

What is important in all of these concepts and ideas, is that you put them into practice. More than any year in the past, your leadership, teamwork, sales and business development skills will be put to the test.

There are now several things that your organizations may want to achieve and cost reduction is one of them, but it may not be the most important goal anymore. You may be looking for ways to bridge the gap by providing additional capacity and skills that are in scarce supply.