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Aug 18
Love0

Growth in your absence: How to take a sabbatical without your business needing you

By Business Coaching Coaching Consulting Strategy No Comments

Here’s the dream for most business owners…

They want to mature a business to the point where they can take 3 months off at once and not open a single email from that remote beach in Tahiti. Now imagine doing that and coming back to a business that has grown in sales, margin and people?

Impossible? Well, not really. I’m going to show you how.

But first, why are you doing this?

You want your business to thrive without you

While you, Founder and CEO, are working in the business daily you are not always able to see which elements of the business can’t survive (nay! thrive!) without you, as you just keep smoothing over those cracks with your time and remarkable skills. The trick is to step away and let the team swim in the deep end. But not all at once.

Start with one week first

Start with setting a time-based goal. Let’s say in 3 years you want to take off 3 months and not worry about the organisation you have left behind, you’ll need to train that muscle first. So start with one week. Here’s your to-do list:

One. 

Play pretend leave.

Plan a week’s “holiday” in about a month or 2 from today.

Two.

See if your 2IC can see you through the choppy seas.

Pick your 2IC [second in command] and let him/her become the central bottleneck and filter for all information in the business in your absence.

Three.

Daily information you want to know.

Decide on which key pieces of information you want to know daily, and when and how you want to receive this. Examples are; sales, pipeline, profits, marketing metrics, people metrics, retention stats, cash flows, volumes of delivery, process changes and general red flags.

Four. 

Create a RAG rating for the daily information 

You should also then categorise all this info into a RAG rating [Red, Amber and Green].

Green: Items you want to know about that are in the band of acceptability.

Amber: those that have some level of issue and escalation, but are being managed internally. You are not needed. Revert back to ice-cold G&T.

Red: Concerns, problems or issues that the team and your 2IC can’t manage. G&T is set aside to deal with issue urgently.

Five. 

Wrap that information up, tweet style.

If you had to condense all this info into a single “140-character tweet” – how could you do that and get that via Whatsapp/email once a day, at close of business? That’s what you need to do before you depart.

Six. 

Don’t leave yet! Test it first.  

Test this model for a few weeks before you leave. Explain to the whole company that you are on holiday [dammit!] and will not be available unless there is a genuine emergency [marked as RED.]

Seven. 

Pour G&T…and watch.  

Take the week off, allowing the team to manage and maintain the business with no expectation of growth or anything fancy. The team must track all issues that cropped up that they could not deal with.

Eight. 

Compiling the fracture list

From your time away, you’ll build a list. It includes the issues that cropped up while you were away that couldn’t be handled without you as well as the parts you always cover anyway (that were not delegated to the team in your absence). These are the fractures in your business that need repairs.

Nine. 

Fixing the Fractures (metal rods, plates & screws not needed)

Over the coming weeks, create processes and train your team on how to handle and think about solutions to the problems that arose while you were away.

Do you want growth in your absence? 

Then take leave again…and again…and again.  

Every time you go away you are stress testing the business. Now plan the next trip. If you can, make it a few days longer and again follow the steps above. If you keep adding days to the “holidays” and repeat the process every 2-3 months, you should be forcing the business to mature internally to a point where it can at the very least maintain itself. Now to be clear, when I say go on holiday every couple of months, you may not practically be able to do that but then afford yourself the time to work away from the usual spaces. Gift yourself the time to be strategic in nature, so that you can build more structure and process in order to take the next big leap – growth in your absence.

Freedom begins when you give authority, training and trust

After a few repetitions in this cycle, you should see obvious brittleness in some of your people, your operating processes and the dependency of the business on you.

Let’s be honest, you are still most likely overseeing invoicing, sales and high level client engagements – all tasks that you must solve for by giving authority, training and trust to people in the business to solve. Remember if you are doing a task the same way more than once it should be automated, delegated or outsourced.

Share this article with your COO, 2IC or your whole team. You’d be surprised as to how excited your people will get at taking on more autonomy, decision-making and strategic responsibility. In this context, sharing really is caring.

@Spillly

 

[Extra special shout out to heavyweight B2B content writers at Shelf-Made for the edit!]
Jul 05
Love0

With every rand you bill, you are losing money

By Business Coaching Consulting Strategy No Comments

Over the past three months the amount of clients asking if they should be billing offshore and how to find clients overseas has almost consumed my engagements. It’s clear that with the current South African economic climate, the ‘strength’ of the rand and the huge Covid unlocks in terms of selling and delivering remotely, “Africa, your time is now.”

 Why aren’t you billing in dollars, pounds or euros for your precious hours? 

Consider this [and please don’t stone me for this later]: Shipping skills north of the equator removes the BEE constraints of doing work in South Africa, can unlock anywhere between 50% and 200% more rands per hour for the same work [considering you are world class at the services you peddle] and it has genuinely never been easier to do than right now.

If you get this right, and I am not suggesting that you leave the cash offshore and skirt SARS, let’s be honest, setting up smart and legal structures may be of advantage to you and may also feather your Plan-B nest. God, I love mixing metaphors. Also, that second beer just kicked in.

So how do you start and what should you consider?

You are almost starting a new business. Don’t forget some of the fundamentals of that. Consider the quality of your skills [and match clients], consider your differentiators and remove frictions that your opposition [in your target market] don’t have. Like what?

Start with banking. If you intend asking your client to bend over backwards and pay you in a manner that becomes a pain point for them, you may lose them in the sales process. Ideally when a client asks, “So how do I pay you?” you should say, “Just like you pay your local suppliers!” Solve that.

If you consider yourself a BPO [Business Practice Outsource] solution, then be aware that prices may become your forced differentiator. Think Indian call center – high volume, low margin. Not ideal. So, what is the local market paying for your services and if that average is “100%”, by what % margin do you need to be cheaper for the client to consider using you? Between 10% and 40% is probably the needle mover but then again, why discount at all? Rather compete on a different USP and at the same price. If you are that good, then why not ask full price? Price is race to the bottom and you are most likely not set up for low touch, high volume, razor thin margins, are you?

Network. If you have lived, studied, and worked in South Africa, you know expats, lots of expats. You just haven’t applied your mind as to who that is. Start with that ex-girlfriend/boyfriend, the one whose heart you broke and ended badly and haven’t spoken to for 10 years. Ask how they are, where they are and who they know that can spend money with you. Okay, don’t start there, but go deep into your ecosystem and make friends again with people living abroad that could be a degree removed from your next customer.

Another way to get your name out there is to target the middlemen – businesses like yourself that either don’t do the same work as you but live in the same industry sector and may be able to use you for overflow work or even [better] mark you up and resell your services. My first prize is to find people who will place you directly in front of leads for a referral fee. Yes, set that up, and offer it when applicable.

Going direct is hard, I know, but way cheaper than paid media and Google ads. We as South Africans have no comprehension how competitive that landscape is until you try bidding on words in London or Hong Kong. Direct = LinkedIn. Direct = email. Direct = cold call. Did I mention direct is hard? It’s a volume game and you should play that endless game with patience and grit.

We speak English [mostly good enough] and are for many regions, in the two- to three-hour time zone that works for them. We are easy to reach [outside of loadshedding hours] and our quality of work and most importantly, our work is ethic, is world class. [I feel that South Africans work like dogs, mostly.] Some of us even speak Portuguese, Hebrew, German and other second languages that help us diffuse into the local sales mix like frankincense and ylang ylang.

Join the Facebook pages, the forums, the entrepreneur organisations and the local chambers of commerce [yes, some of those actually work in other countries] and preach the word. If that doesn’t work, start looking for South African clients that are part of a global brand, blow them away with your work and charm, and get the global referral over time. That’s a long play, but is most often how I see local clients gain international work.

If you have the money to burn [and burn it you will] then hire a local salesperson/account manager/business development guru and get them to open doors and be the face of your organisation in the city of your choice. When it comes to big city life, avoid the obvious cities. You want London, try Liverpool. You want Paris, try Marseille. You want NYC, try Boston. Did I mention how competitive these big cities are? Look for the secondary and tertiary cities – they are big enough for you and your ego, I promise.

Once you have decided to target and dominate your city of choice, ensure that all your owned marketing channels and content speak to that city and ideally the industry of that city. If I hit your website, it had better say why you are the “Most savvy agency in the Norfolk region for the fintech SAAS start-up.” Own the geographical niche. Then get back on the direct outreach and be hyper focused. You probably don’t need 100 clients. You just want five that pay twice as much as your local clients. Lastly, on this point, immerse yourself in their local knowledge – who are their politicians, musicians, soccer heroes and idols that make for quality presales chit-chat? Grease those sales wheels, baby.

Make no mistake, you have a challenge in SA with finding and keeping local talent, and one of the reasons is that they are leaving physically or leaving the local market to sell in Sterling and now you just can’t afford them. Your SA clients can’t pay those kind of rates, so find ones who can, and leave you a healthy margin.

It’s about to get very competitive in South Africa. Local brands will have to start paying more for quality output or lose the chance of working with you and your team to a truly global marketplace that will find value in you and not have to swallow a giant price pill. Get a foot in the door, show your value and barge that door wide open! You can do this. It’s never been easier or more profitable. No more excuses.

Disclaimer. This was written without editing on a late night flight from Cape Town to Joburg after a few beers and may rub you up the wrong way. I am open to debate. I know it’s not ‘one shoe fits all’, but you gotta admit there is something here, right?

ps. This post was subsequently edited by Mandy Collins.

Feb 16
Love0

In Fear Of Losing Valuable Employees? Try The Golden Handcuffs.

By Business Coaching Hiring Strategy No Comments

As a business owner, especially when operating a small company, it’s common to find a star employee that perfectly complements your vision – exceeding expectations, getting the job done perfectly and making a positive impact on your business.

It’s only when you recognise that employee that the fear of losing them becomes a reality.

And the last thing that you want to do is have to find someone else to replace that person, as it can become costly, time-consuming and often difficult to achieve.

So how do you keep them happy? How do you retain them for the long-haul?

While locking them in a room and hoping for Stockholm Syndrome to take its course isn’t exactly an option – arresting them with a sleek pair of golden handcuffs just might be.

Value Is In The Eye Of The Entrepreneur 

In a lot of the smaller businesses that I deal with, I come across clients that become incredibly dependent on one, or a few key members of staff. And it inevitably leads to a fear of loss, as they believe there’s a huge risk in losing any of them.

What often tends to happen is that these key employees begin to recognise their own value and the impact that they have on the business. This leads to them either asking for more money, or some kind of guarantee that their hard work will benefit them far more than just the salary that they receive.

And it’s at that moment when business owners make the mistake of giving away or selling shares to a star employee (especially in the early stages of starting their company).

More often than not, this comes back to bite them in the ass. After a few years, the realisation kicks in that giving away or selling shares early-on was a crap decision. What ends up happening is that you give them shareholder rights and create complications if you ever wanted to sell your business at a later stage.

So before jumping the proverbial gun, you need to first ensure that this person is capable of being a good partner, not just a good employee.

Just like in dating, you need to know if they fit the role of being a good parent, a caring partner and whether or not there are any red flags to be cautious of. The same applies to that star employee – you need to work with them for a long enough time before offering them a stake in your company.

If you’re feeling pressured to make promises or provide them with a reason to stay – then I’ve got some really great tricks for you.

Arrest Their Attention With Golden Handcuffs

Being a business coach means that I always have (or find) a solution to the problems that business owners have to face.

That being said, dealing with a situation like this can be easy if you have the right tactics to approach the situation:

Profit-Share Scheme: With this option, you give the employee the opportunity to earn more based on the success of the business. If the business makes a great profit, then the employee is rewarded with a piece of that profit. This can come in the form of a percentage (say 10% of the year-end profit) or even a flat bonus.

This method works great, because harder work results in more benefits for the employee. The performance of your staff is often affected by how they feel about your company – so by sharing a piece of your profits, there will be increased levels of trust, productivity and efficiency.

To make this work, you need to be transparent around the finances of the company and clearly set the expectations that need to be met in order to benefit from the profits.

With this approach, it’s important to note that small business owners don’t always feel comfortable with sharing how much the company is making – that sort of transparency often results in staff becoming less productive, as they feel they deserve more.

Ghost Shares: This method is usually based on an agreement between the employee and owner that gives them all of the benefits of being a shareholder, without the risk or the decision-making power of actually being one.

By using this approach, you offer an agreement to the employee that will give them a percentage of the profits that are declared – as well as a cut of the value of the business, should it sell. This can also extend to a seat at the management committee, where they have the opportunity for their voice to be heard – which gives them a sense of belonging and involvement. However, in the case that they leave the company, they forfeit those shares.

Doing this works, because they believe that they will benefit from the business without feeling like a pawn. And by implementing this type of share agreement, you become aware of the type of person the employee is over time, allowing you to figure out whether or not they’re cut-out to be someone that you can open discussion around proper equity with.

One of the biggest benefits of the ghost share is that you’re able to move the business forward without relying on partners giving you the go-ahead.

Also Remember That… 

You need to make it clear to these employees that profits will be forfeited if leaving the company before a pay-out; that these pay-outs are often only reflected annually or quarterly (based on performance reports); and that they ultimately affect the profits that the company receives.

Payments also don’t necessarily have to come in the form of straight cash, but can sometimes be used for education, vacations or things like retirement funds.

Ultimately, this approach will add value to the employee, their experience and the relationship that they have with the company.

Personally, I feel that the best approach to take is to dramatically increase the person’s salary. It not only says that you respect and need that employee, but that you’re willing to pay them more than any other business is – which will motivate them to stick around.

Either way, keeping your star employees just became a whole lot easier.

I happen to have a sleek, comfortable set of golden handcuffs that are waiting to embrace you:

While you might find it stressful to ensure that your business always moves in the right direction, that you are always making the right decisions for you and your staff, and that you keep focused on the ideal path to success – I’m here to tell you that winning just became a whole lot easier.

Based on the many clients that I’ve successfully coached, I know I can add massive value to your life. I know I can make you feel like a winner. I know that you’re ready to take the leap.

+2783 253 3339

brent@spillly.com

 

Don’t waste another second thinking about it. Let’s have a chat.

Nov 15
Love0

Why Outsourcing Is The Right Choice For Your Business

By Agency Business Coaching Freelance Strategy No Comments

It’s been a good few years since the release of my book What The Freelance, where I take a deep dive into the benefits that come with outsourcing the right talent for your business.

Since then, the riveting content in my book has been turned into course material for tertiary institutions and made a positive, and noticeable, impact on those that have implemented this approach to improving their companies.

And now, with the pandemic, we’ve seen an even greater surge in the desire for freelancers to help save companies from crumbling to the ground, especially with so many of them having to either shut down completely or retrench significant portions of their staff just to survive.

It has certainly become more important than ever to acclimate to this way of doing things.

That being said, let me clarify how this approach works and why.

So Why Outsource?

Great question.

While outsourcing certainly isn’t a new concept, it’s gained a considerable amount of traction over the last 10 years, especially since Covid came into the picture. It’s also been proven to be a great option for both smaller and larger businesses – whether in their infancy or in their prime.

If implemented correctly, outsourcing can be highly beneficial to businesses that are struggling with revenues and tight budgets, stuck with very little staff and too much responsibility, or handling tasks that might be infrequent (marketing campaigns, blog posts, etc.)

It’s a proven approach that works, and has worked, for businesses for a long time now – especially for greater flexibility and reduced operational costs.

By using freelancers to fill more of the production roles in your business, you’re able to save a lot of extra time, resources and hassle that you would have to deal with when using a more traditional business model.

The 85/15 Rule

Traditionally, most businesses, agencies and consultancies use a core team of permanent staff that usually make up 85-90% of a company, while the remaining 10-15% of capacity was left for the occasional ad-hoc freelancer to fill any gaps.

Over time, a lot of smaller businesses have come to realise that they’d prefer to avoid relying on permanent staff and the costs associated with training, educating and retaining them and would rather opt for a far more flexible and agile overhead.

With the success rates that come with outsourcing, businesses are now swapping those ratios around, instead looking at around 85-90% of outsourced, freelance staff and leaving the remaining 10-15% as the core team to fill the most important roles within the company.

While freelancers are primarily used for production purposes (the product or creative output), the core team consists of roles in sales, account management, client liaison, product management (to also manage the freelancers), bookkeeping and project management.

As a business owner, it’s highly beneficial to focus on doing the jobs that you’re already skilled at, instead of wasting energy and productivity on things like filling out paperwork or dealing with other gruelling tasks that often take up too much time.

This usually results in you spending far more energy on the core processes of the business, getting much more done, while saving precious resources, time, effort and money.

The Benefits Of Outsourcing

Taking this approach to business means that you’ll have far more advantages, especially in the early stages of starting it out.

Firstly, you’re given far more flexibility where staff are concerned, as you’re able to make huge savings on picking freelancers as opposed to permanent employees. The cost of time and money to educate and train, as well as pay salaries, benefits and bonuses to staff (when you might not always require them) can be a major disadvantage.

So if demand dries up for whatever period of time, then you don’t need to keep too many permanent employees on the payroll – which leaves your cash reserves far more protected and readily available for other important and fruitful investments.

Secondly, it can be a huge advantage to your clients. Without the need to solely rely on internal staff to produce the best possible results for a particular client, you’re given far more access to experts and professionals in any field, at any given time.

Say a client requires someone to work on advertising or branding for a niche operation, but your current staff are trained, experienced and only used to handling one area of expertise – you’re given the opportunity to outsource someone that is already great at producing work for that particular niche and who would be capable of providing superb results for that client.

It also allows for the use of a pure strategy that doesn’t have your business making promises to fulfil client requests, regardless of whether or not your staff are capable of doing the job correctly.

It’s a win-win situation for both your business and the client.

Your business might offer to have the right people for the job but aren’t necessarily equipped to handle it in the best way, whereas with freelancers, you can find the ideal person/team to do the work and produce results according to what the client needs.

There are a number of other valuable benefits that come with this approach to business, such as access to world-class experience and expertise, the freeing up of resources that can be used in other areas to make more money, the reduction of risks that come with retrenchments and lay-offs and help in dealing with difficult operations and processes.

By implementing a similar approach to your business, you’re bound to reap far more rewards and opportunities that would be difficult to achieve if you kept to the traditional way of doing things.

Take a hard look at your business and figure out whether there’s room to outsource and find the right type of freelancer to fulfil certain roles far better than a permanent staff member might be able to.

If you need some more advice or guidance to go about implementing this in the best possible way, feel free to contact me.

I mean, I wrote the book after all. 🙂

My coaching expertise is ideal for ANY business owner that has an unrelenting desire for success, comfort and progress.

 

You know what to do:

Pick up the phone, save my number and email address, and make contact.

+2783 253 3339

brent@spillly.com

 

 

 

 

Oct 21
Love0

Oh! How you love to hate.

By Business Coaching Sales Strategy No Comments

It’s important for every business owner to review and evaluate clients on a fairly regular basis. Every entrepreneur needs to figure out whether a customer/client is either of use to them or should go through the dreaded culling process.

So it’s vital that you ask these two important questions: Do they add value to your company? Or do they annoy the living shit out of you?

In figuring out which clients to retain and which ones to scrap, I recommend using the love-hate quadrant to guide you in your decision-making process.

Hate-Love-Love-Hate 

It can be difficult to determine which filters to use when deciding who you should keep and who you should let go of.

Besides the obvious ones, like whether particular clients bring in small or big revenue, growth opportunities, and profitability – you need to be aware that certain filters usually lead to an emotional feeling between you and the customer.

Which can often result in you hating them.

So instead of relying on your emotions to figure out whether or not they should be kept or dumped, I recommend using a simple love-hate matrix to help you decide which route to take.

There are four different categories that you can place your clients into that will help motivate your decision:

Love-Love Quadrant – will contain your list of customers/clients that you love and appreciate the most. They’re the clients that you want to keep, the clients that you love and that love you in return. They pay well, the work that you do for them is always appreciated, and you enjoy the process and relationship that you’ve established with them. They’re also a great cultural fit and refer you to new clients all the time. So you need to give this category of clients 80% of your time, focus and energy – making sure that you look after them and their best interests.

Love-Hate Quadrant – consists of clients that love you, but you absolutely hate them. You usually run into issues when dealing with them, as they can be a nuisance and overly demanding. The money that they bring in isn’t too great, especially considering the work and effort that you have to put in. But, because they love you and the service/product that you provide for them, it’s wise to try and work them into the love-love quadrant. Make your staff aware of the issues that you have with them and that they have with you, then come up with solutions or offers that can extract more money and better opportunities from them.

Hate-Love Quadrant – this category is for the clients that you love, but they unfortunately hate you. While they’re constantly down your throat with complaints and criticisms, they still bring in a nice amount of money to your business. They aren’t always happy with the work that you provide for them and they make sure that you’re aware of that. While it seems like culling them would be a better option, you should try and address the issues that they have, attempt to satisfy their demands and try to work them into the love-love quadrant.

Hate-Hate Quadrant – these are the clients that you hate and they hate you. It’s mutual. They don’t have much to offer, especially in terms of profits and they consistently give you a hard time. When you despise a client so much that you cringe at the idea of doing anything for them, then it’s probably time to wipe them out. What you should do is work on ways to get rid of them – so that they no longer bring you stress. One of the easiest ways to do this is to just drastically increase your pricing or mention that you will not be renewing their contract.

This matrix is a great tool to use during annual strategy sessions.

It will help you determine and categorise which clients help you and your business, while either working on creating a better experience for those that you still want, or implementing a plan to get rid of those that you don’t.

It’s a simple, easy-to-use process to apply to your business strategy.

You’re welcome.

I would absolutely love to throw you into the love-love quadrant and list you as one of my top clients. So do us both a favour and get in touch with me.

It will change your business for the better. It will make you the leader that you’ve always wanted to be. It will give you clarity and vision. It will also make my day.

Squeeze me in if you don’t have the time, make the effort to grab my attention. I will be the best choice you’ve ever made:

 

+2783 253 3339

brent@spillly.com

 

 

 

 

Sep 27
Love0

Reducing The Load Of Your Slowest Hikers

By Business Coaching Consulting psychology Strategy No Comments

When building out your business, there’s always a clear, set mission to achieve significant growth and success – not only for yourself, but also the people that you take on that journey with you.

Similar to the task of hiking together with a team, you, as a leader and guide, must find a process that gets everyone to the top of the mountain in the most effective way, possible.

But what often tends to happen is that you and your team might be slowed down due to the hikers in the back; those that might be struggling to endure the arduous journey with you. And this usually means having to patiently wait for them to catch up to the rest of the team before you’re able to continue and push towards achieving your goal.

While culling those hikers might seem like an easy option, it’s often better to help them by offering to lighten their load, teach them a trick or two, or motivate them to succeed.

A Chain Is Only As Strong As Its Weakest Link 

Indeed, you may find it quite challenging to embark on that journey to reach the top and you will undoubtedly face certain obstacles, but through a healthy dose of desire and determination, you’re well aware of the effort and willpower it will take to get there.

Confronted by ravines, narrow ledges and the many areas of discomfort on the path to success, it’s your job to motivate and empower your team – so that they too help ease the process of getting to the top.

And although each of the hikers within your team have their own backpacks or loads to carry with them, there’s almost always a person (or select group of people) that struggle to keep up and endure the load. Contained in those backpacks are things like skills, personal issues, beliefs, etc. which come to affect the load that needs to be carried on the way up.

Some people handle their load better than others. While some need help to manage or compartmentalise their load in a more effective way.

The issue with those members that lag behind is that it restricts progress and productivity; it slows the entire team down and prevents you from reaching your goal in the fastest way, possible.

It certainly seems like a great option to just go ahead and send those slow, struggling hikers back home, freeing up the energy to keep pushing forward – however, a better approach would be to convince your strongest, fastest hikers to train, inspire and assist the weaker ones, instead.

To do this, you need to ask your strongest hikers to help carry or re-arrange the backpacks of those that are in need of assistance. By removing or re-organising their backpacks, you reduce work-load, provide them with more opportunity to be trained and developed, and create a sense of camaraderie amongst the team. This results in a better, faster and more effective unit.

Using Theory Of Constraints To Reduce The Load 

One of the most effective ways to view and come up with solutions to this situation is through the Theory of Constraints.

Dr. Eliyahu Goldratt, a physicist turned business consultant, came up with this model back in 1984 in his book The Goal, which teaches readers that every organisation, at any time, is limited in its ability to achieve its objective due to a single constraint.

Goldratt defined it as, “A thinking process that enables people to invent simple solutions to complex problems.”

This method is ultimately about focusing on different areas that need attention; attending to the weakest link on that chain and fixing the problem in order to increase productivity and prevent it from getting worse.

By using the Theory of Constraints, it’s important to find the answers to three big questions: What to change?; What to change it to?; and how to change it?

Answering these questions will ultimately provide direction and assist you in coming up with a plan to solve the problems that need to be dealt with.

In order to identify and solve the constraints that need your attention, a five-step method is usually recommended. This will help you find a starting point and give you a process that works effectively when tackling the situation.

The five steps are as follows:

Identify the limiting constraint. In the case of our team of hikers, take a close look at those employees that struggle to keep up with the rest of the team and that slow everyone else down. Figure out what it is that they need help with, whether it’s a reduced workload, more training, counselling, or positive reinforcement – you need to focus on finding the reason why they are struggling in the first place.

Exploit the constraint using existing resources before any investment. If you’re able to identify  the constraint, come up with solutions that don’t require extra money and attempt to remedy the situation through resources that you already have available. If the slow hiker has issues with work that they are struggling to understand, then request one of your stronger hikers to train them, give practical advice or explain how to handle it better.

Subordinate all associated activities to the constraint. Although it might seem a bit counter-intuitive, it’s important to consider that every working part of the system might be supporting and giving fuel to an existing problem. By slowing the whole team down, you’re able to identify any hidden issues or problems that might be affecting the overall performance of your unit.

Elevate the constraint by throwing money at it. Once you’ve identified and worked on the issue at hand, it’s important to invest money or resources in it – so that you’re able to increase its durability and prevent it from causing any further damage down the line. If you buy better backpacks with more compartments and space to get you through the hike, i.e. spending money on training and education for those who are struggling – you create a barrier for those same issues surfacing in future.

Repeat the process to identify and solve the next constraint you could face. Go back and identify new constraints to be worked on and improve the ones that you’ve already solved, while keeping the cycle going. Ensure that everybody in the team is on the same frequency and keep a sharp eye on any new constraints that need attention.

This method has many benefits for not only your team, but the company as a whole. It helps you find and solve the reasons behind a lack of progress within the organisation, it provides a structure for continuous improvement, and allows you to approach constraints or issues without the need for investment or spending extra money on unnecessary band-aids.

Reducing or optimising the load of your weakest hikers will bring about a much faster and enjoyable journey.

Have the talk with your fastest and most efficient hikers. Butter them up, paint them as heroes and make them aware of how great they are and that they have the power to make a valuable and significant difference in the operation of your business, as well as those that need help.

If you’re starting to feel lonely in the front; nobody to bounce your ideas off of, tempted to try new routes or paths, or struggling to find the motivation to keep pushing – then I can help you with that.

Being a successful business coach means that I look forward to every opportunity to make a positive and remarkable difference in the lives of the entrepreneurs that I work with.

I’m like Gandalf in the Lord of the Rings. I will enhance your journey while offering you the perfect advice, guidance and respect that you need as a business owner. I will share my network, strategies and formulae for success with you. I will help you find what you’re looking for.

Do it. Make the call, send the message. Reap the rewards.

+2783 253 3339

brent@spillly.com

Sep 08
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Why Having A Board Is Important For Your Small Business

By Business Management Leadership Strategy No Comments

Having an advisory board isn’t only for big businesses. And although it might seem like a waste of time, money and energy to have one – any entrepreneur and their business can benefit from the many advantages that come with them.

Ultimately, the purpose behind having a board is to gather experienced and compatible individuals that offer you valuable advice, guidance and insight with the intention to develop and enhance your organisation.

They ideally consist of a team of educated and proficient people that share a common goal:

To help your business flourish.

That’s why – no matter how small your business may be – you need a board of advisors.

“I’m Capable Of Creating A Business, So Why Would I Need A Board?” 

By understanding that boards only exist to help with the success of your company and not to trample on your goals and ambitions, you’ll come to learn that the advantages of having one will always outweigh any of the perceived disadvantages.

As a business coach, I usually deal with companies that are run by a single entrepreneur (often consisting of a 5-50 man operation) and I’m always shocked to find that a large portion of my clients perceive boards as counter-productive, with a firm belief that having one will slow the company down.

This couldn’t be further from the truth.

Boards usually consist of hand-picked, like-minded individuals that come together to discuss, plan and implement strategies and processes to improve both you and your business. Their purpose is to set certain goals and outcomes that the company needs to achieve, while looking at the different approaches and actions that need to be taken in order to achieve those goals.

Many business owners run into a variety of challenges that come with operating their business: a lack of growth; finding new direction; coming up with new ideas; being lonely at the top; detecting problems and red flags; a loss of vision and creativity; and even being an effective leader.

These problems, along with many others, can be remedied by setting up an advisory board in your company. An advisory board usually consists of experienced and professional individuals that are often paid to provide the guidance, feedback and network that’s needed to nudge a business in the right direction.

These experienced individuals usually include: existing entrepreneurs, lawyers, accountants, a mentor/coach (like me), and even an existing or potential customer/client.

By forming a team that consists of people with these backgrounds, you’re kept accountable and focused on the steps that need to be taken in order to achieve greater success within the company. It also acts as a much needed eye-opener, showing you that your resources and experiences are both limited and limiting.

When I recommend setting up a board to some of my clients, they often argue that they’re far too small to have a board. But I push back and remind them that no business is too small and that with the right mix of people, they’re sure to find the exponential growth that they seek.

Being a business coach means that I often sit on various boards where I provide advice, feedback and guidance for entrepreneurs. I help them identify the direction that they want to take their business in, making sure that they have a clear, straightforward plan and are sticking to that plan. I also ensure that they take things seriously and that they’re held accountable for their actions or inaction.

The benefits of having a board are plenty. You’re given feedback and transparency; support and accountability; honesty and a sense of comfort; and access to resources and new networks.

Another huge advantage of having experienced individuals on your board is that you’re able to learn from their past mistakes.

While you might see an opportunity or have an idea that seems perfect – they might have gone down similar rabbit-holes or made the mistake of chasing shiny pennies. They’re able to prevent you from dealing with any embarrassment or failure.

Together with a powerful, hand-picked board, you’re able to avoid risks that you would’ve taken on your own; you’re able to create improvements around policies, processes and overall workflow; you have the opportunity to enhance your identity through personal growth and exposure. There are certainly far more benefits to having a board, especially in comparison to doing things on your own.

What is there to think about? Get a board of advisors and be advised. Take advantage of the networking and resources that they make available to you. You’ll be pleasantly surprised.

Whether or not you’re looking at setting up an advisory board for your business – I can be of assistance to you.

Most of the amazing benefits that come with having a board can be provided by yours truly.

And if I’m your business coach, you’re immediately given access to a massive network, as well as peace of mind where strategy, advice and accountability are concerned.

With my experience as a business owner, I can also steer you in the right direction – helping you avoid the mistakes that many entrepreneurs make, while keeping you motivated and excited about the future of your company.

Take action. Throw me into your board of advisors, or keep me as your secret weapon:

+2783 253 3339

brent@spillly.com

Aug 24
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6 Great Models To Attract Recurring Revenues

By Business Management Sales Strategy No Comments

Too many entrepreneurs think long and hard about finding the simplest ways to generate money through their product or service. But what they often fail to realise is that the way in which they package their solution will ultimately determine how sticky, profitable and attractive their product/service is to the customer.

And one of the smartest ways to package your product more effectively is through the pricing and revenue model that you choose to offer.

That being said, here are a few of the top revenue models that could transform your business into a gold mine.

Why Your Choice of Revenue Models Is So Important 

A revenue model is the approach your business takes to earn revenues. After establishing your value proposition and the set price(s) of your product or service, the next step is to figure out how your client or customer is going to pay for it.

That’s why having a good revenue model ensures that your business is able to make long-term projections based on current and future profit potential. This will aid you in extracting the best possible returns for your company, while retaining clients through the use of subscriptions, contracts and the sunk cost fallacy.

Sunk cost what?

The sunk cost fallacy (or sunk cost bias) refers to the justification we give ourselves when buying an expensive dinner, finishing a movie that we don’t necessarily enjoy, or remaining a loyal customer to a brand that we’ve already been with for years (even if there are better options out there).

Putting money, energy or time into something means that we inherently develop a bias towards it and are willing to ignore any pitfalls or failures that could motivate us to change our minds.

While it might sometimes be unfortunate for us as consumers, clients or customers, it certainly works in the favour of any business owner. Conversion rates can be increased, contractual obligation can maintain profits, upselling can be amplified, and client retention can be improved by simply being aware of this cognitive bias.

So choosing the ideal revenue model for your company will enable more consistent profits and a far more loyal customer base.

And the great part is that there are a number of promising options to choose from.

As a business coach that cares so much about your success, I’ve taken the time to sift through some of the best models out there and rank them from the least beneficial to the most.

Let’s check them out:

The Top 6 Revenue Models

1. Consumables:

These are your typical consumables (whether a product or service) that generally get purchased once, twice or three times a month or even every few months.

Think of products like coffee, milk and bread, or services like electricity, gardening or cleaning; these ‘consumables’ work well once you’ve established customer loyalty, which will ensure that you’re bringing in a recurring revenue.

2. Sunk-Money Consumables:

By making use of the sunk cost fallacy, this model is based on offering a product or service that requires an additional item or clause in order for that product or service to  operate or function effectively.

Basically, you offer a base product/service that’s quite affordable (a Gillette razor handle, gaming console, or a dating site) and then provide additional items or functions that the base product needs for it to be of any use (Gillette razor blades, games, or in-app currency for extra purchases).

With this type of model, you ensure recurring revenue based on customers’ reluctance to give up on something that they’ve already invested in. You wouldn’t buy that gaming console without feeling the need to buy games for it; or sign-up for a dating service and be limited to one message per day, when you can pay to receive more messages.

3. Renewable Subscriptions:

One of the most common and effective recurring revenue models would be through the use of renewable subscriptions. By incurring a monthly fee (a subscription), you ensure that the client or customer is bringing in revenue on a monthly basis and has the opportunity to renew their subscription at the end of a certain period.

This model is usually a win-win, as the customer perceivably pays less to own a product or use a service, while the business owner has a more stable and predictable source of revenues (especially when compared to consumables).

A great example could be a cell phone contract or streaming platform like Netflix.

4. Sunk-Money Renewable Subscriptions:

This model has the customer invest in a base product or service that has additional premium features that are offered on a subscription basis.

By taking renewable subscriptions and adding an element of sunk-costing to it, you guarantee more recurring revenue options. When you purchase a device (e.g. an Apple TV) or a service platform (e.g. a Bloomberg terminal), you’ve already sunk money into it, so you’re more likely to purchase exclusive additions for it, such as an Apple One subscription for the TV or a business publication subscription for the Bloomberg terminal.

It takes advantage of the sunk-cost bias and blends it with renewable subscriptions.

5. Automatic-Renewal Subscriptions:

By taking renewals into your own hands and making the process automatic, you allow for a much better recurring revenue.

Instead of letting the customer renew their subscription after a period of time (say, a year), you automatically renew it until they choose to end it. This way, customers are more likely to stay, as they don’t bother looking at competitive prices and you make the renewal process easier for them.

Think about gym memberships or insurance firms that keep renewing your subscription until you’ve made the decision to terminate the agreement.

6. Contracts:

Long-term contracts are highly beneficial for maintaining a recurring revenue that can’t be challenged or disputed. It ensures an ethical agreement between both parties that a certain amount will be paid within a particular period of time in exchange for goods or services.

This model is a great choice, especially if you’re able to get customers to come on board for a long period of time. If you’re planning to sell your business, then ensuring that a survival clause is present will help keep customers from leaving after a change of ownership takes place.

*Bonus Model: “Rundles” 

This new approach coined by NYU professor, Scott Galloway, takes a recurring revenue model like renewable subscriptions and blends it together with bundling.

Bundling basically entails putting multiple services or products together and selling them at a ‘better price’. This extends to products/services that might not be very popular and putting them together with more favourable ones, then selling them as a package.

With “rundling”, you take those two concepts and form an approach that has seen huge returns. I’m talking billions of dollars in revenues and millions of customers migrating to platforms that offer recurring revenue bundles or “rundles”.

A great example of this is the way in which Apple has offered services like iCloud and Apple Care, then bundled them with entertainment services (Apple Entertainment and Music) under one affordable subscription model.

Companies like Adobe and Walmart are also jumping on this lucrative bandwagon to bring in the big bucks. It’s most certainly one of the best recurring revenue models taking over many industries and I’d highly recommend looking into it.

If you’re looking at your product or service and thinking, “how do I apply one of these models to best suit my business?”, then I’ll let you in on a little secret:

Taking me on as a business coach means that I can help you identify exactly what will work best for you and your company.

It takes DICE (determination, interest, compassion and experience) to move a company forward, both on a micro- and macro-level.

And I’ve got all the DICE you need!

So do yourself a huge favour and start communicating with me as soon as you’re ready for a better future:

+2783 253 3339

brent@spillly.com

Jul 16
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What Is Strategic Account Management and Why You Should Use It

By Business Coaching Marketing Sales Strategy No Comments

As a business coach, I’ve come to find that business owners will often overlook the advantages of client retention and tend to be rather shy in giving the right amount of focus, love and attention to both their new and existing clients.

And although it might seem like a heinous crime and a blatantly obvious area to focus on, you’ll be surprised at how many businesses don’t put the customer at the center of their attention.

That’s why making use of a strategic account management (SAM) plan allows for the development of an in-depth strategy that puts the customer in first place and draws out their needs so that you’re able to provide more solutions and retain them for the long haul.

Let’s look at how it works, why it’s necessary and how to differentiate it from the traditional sales approach.

What Is SAM?

Simply put, strategic account management focuses on building healthy and fruitful relationships with all of your clients or customers – especially the important and high-value ones.

It makes use of in-depth research and strategic planning to identify new problems for you to solve with the goal and purpose of enhancing the customer experience, strengthening loyalty and paving the way for better returns.

It’s almost like finding ways to invest in your clients to get better profits and secure recurring revenues.

Using a SAM plan comes with some pretty big benefits, too: it builds and strengthens customer loyalty, it stimulates and motivates new growth, and improves profitability.

Setting up this sort of plan usually involves every department within your business, as it should be a strategy that everybody is aware of and actively participating in. This way, everybody contributes to a system that seeks to improve the interactions, experience and relationships with existing clients.

How Does It Differ From Sales?

There are a few key differentiators that separate SAM from sales.

The easiest way to look at it is that sales primarily focuses on seeking and capturing opportunities, while SAM focuses on providing consistent value and satisfaction to clients that result in more returns – usually being implemented after the sales cycle.

Sales makes use of small and dedicated teams that use short-term strategies and planning to achieve results. This is quite different to SAM, which functions across the entire organisation and acts in an intimate manner that has far more involvement with the client.

In other words, sales is for drawing in and getting more clients; strategic account management is for retaining and getting more out of clients post-sales.

SAM is seated in between both sales and operations in that it uses more complex, long-term strategies to both add and extract value from clients. Clients are also generally more open and receptive to strategic account managers as they’re viewed as partners, where sales teams have a relationship with clients exclusively based on the exchange of goods/services.

The adage, “It’s cheaper to keep your clients than find new ones”, basically sums up and differentiates the two from one another; retaining clients through enhanced satisfaction, better service, improved relations and attention to detail is far more beneficial than the costs, maintenance and unpredictable nature of sales.

What Is The Purpose of A SAM Plan? 

If a SAM plan is implemented correctly, then there are certain key benefits and results that can be used to measure its success.

By using a SAM plan in the correct way, you’re able to identify new opportunities in your existing client base, allowing for you to upsell far more efficiently as you cater to new problems that they might be facing.

It also gives you far more intimate access to your clients in terms of influence, as you understand their needs and desires on a much deeper level – this also allows for more innovation with your clients to improve on new and existing services.

With this influence and access to your clients, you’re able to keep your competition at a distance, as a sense of loyalty is fostered between your company and the client.

How To Get That SAM Plan Started? 

Firstly, you need to identify your key clients and create an offer that they can’t refuse – one that is unique to them and that other clients don’t get unless they’ve been ‘upgraded’.

You then sit those clients down individually and determine what the perfect system looks like from their perspective. This will give you more insight into what they desire most and will help you figure out the best way to deliver on their expectations without annoying them.

Bear in mind that you ideally want to focus on anywhere between 5 to 25 key client accounts when you engage in this strategy, so you’re not overwhelmed by too many.

Strategic account management usually follows a 10-stage plan when it’s implemented correctly:

1) Develop The Customer Profile

At this stage you determine what the client/customer looks like, what they want, what they do, their goals and the products/services that they use.

2) Analyse Relationships

Determining how the relationship came to be and what influences your relationship with the client is the next crucial step. You look at their attitude towards you, their concerns and expectations, the frequency and methods of contact, and a SWOT analysis of them.

3) Identify Strategic Requirements

The third stage has you looking at specific requirements for the strategy to be implemented effectively. Looking at the history of sales, any issues that have been expressed, what it would take to impress the client, as well as the current and future needs of each department should all be measured and evaluated.

4) Analyze New Opportunities

With the mounting information that you’re gathering on your client(s) and the business as a whole, you can begin to target and determine any new opportunities that might benefit you.

Figuring out ways to leverage your resources to find new opportunities, identifying what obstacles need to be overcome, discovering whether there are unique offerings that your business can offer, and correcting mistakes that haven’t been attended to is your goal.

5) Map the Decision Process

At this point, you need to plan out and explain to the client your decision-making process. Here, you determine and explain which factors and people will influence the decisions, who the key decision makers are, explain the external pressures that exist, and the level of influence each decision-maker has.

6) Analyze Competitors

Gauging how good or bad the competition is with the client can provide very helpful insight. During this stage, you have the client rank you against other competition in terms of speed, innovation, cost, quality, service, etc.

Together with the client, determine the benefits of buying from you over the competition, who their preferred choice is and why, and use a SWOT analysis of the competition from the client’s perspective.

7) Establish Objectives

Looking at goals and objectives that can be measured will help in setting out deadlines and key changes that need to occur for the plan to take effect. Look at your expected sales and profits from each client, map out the objectives that need to be completed in the next 3 months, and determine what relationships you want with your clients.

8) Develop Account Strategy

Working on a strategy that focuses on each client account will be your next step. Here, you figure out how to successfully present your USP, determine the success factors for each account and how you aim to implement these factors, look at how you’re going to provide better value than your competition, and how to motivate the client to purchase more.

9) Coordinate Action Plans

In the penultimate stage, you look at the best ways to implement the necessary actions that need to be taken. Figure out who will be responsible for taking action, how you will accomplish these goals, the order and process that needs to be taken, which methods to use for measuring success, and what resources/people you need for the strategy.

10) Manage Account Relationships

Your final stage would be focused on the management, maintenance and measurement of those relationships that you develop with your key clients. You need to look at more initiatives that you can take to improve relationships, identify which clients give you the greatest return on your efforts, look at how you’re going to extract feedback and improve performance, and how often you measure client satisfaction.

Get A SAM Plan Going 

Remember that a SAM plan must be both measurable and iterative in its implementation. Look at it more of a long-term process as opposed to a short-term solution.

Try not to make the mistake of putting your best sales staff in the position of a strategic account manager, as not all people are comfortable with the change in roles and responsibilities. It might also result in losing some of your best sales staff.

It might seem like an intricate and long-winded process, but I assure you, it’s worth it.

And instead of looking at changing your business to embrace these new roles and this entire process, think about outsourcing the job to someone that has experience and practical knowledge in this field.

That someone could be me.

I’ll help you set up and manage a SAM plan with ease and comfort; other than all of the advice, skills and insight that I bring to the table as a business coach, I’m more than capable of providing you with a plan that will have your best clients fall in love with you.

I’m so good at it, you’ll probably fall in love with me.

So get that SAM plan going and bring me on board.

+2783 253 3339

brent@spillly.com

 

 

Jun 28
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Capturing Vistas In The Three Horizons

By Business Coaching Innovation Strategy No Comments

As a proponent of technology, science and society, Bill Sharpe has come up with a powerful way to view the current, the potential and the future states of business and entrepreneurship, naming it The Three Horizons.

The angle that he takes is to change our viewpoints from that of a one-dimensional perspective to a three-dimensional way of seeing the world.

As a business coach, I feel his insight is profound and enlightening for all those that come into contact with this way of thinking and engaging with both life and business.

The Present, The Potential and The Future 

It goes without saying that nobody is capable of seeing or predicting the future, especially after the impact that Covid has made on the many industries that have either suffered or succeeded during such an intense time.

But the awareness that comes with acting in a one-dimensional view of reality has become irrational, to say the least; there needs to be far more attention paid to the potential change that comes with time and the new paradigms that we will come into contact with in the future.

If there is one thing that we can all agree on being consistent, it’s that change is inevitable.

As a business owner or entrepreneur, you need to work on being inclusive of the thought-processes that come with widening your scope to include the possibilities of that which is to come and the guaranteed shift in worldviews that inevitably arrive with the future; allowing yourself to see the world in a more three-dimensional light.

Sharpe has divided and defined these three viewpoints as three horizons that should always be considered and adopted into your thinking process when running a business: with the First Horizon referring to the present moment and what needs to be done in the here and now; the Second Horizon pointing out the potential of the near future and what can be developed, innovated or grown to shape and move towards that point; and the Third Horizon being the unpredictable and unforeseeable future that will ultimately shape all that we know.

In your approach to the timelines that exist when building your business strategy, these three horizons should be implemented in your vision and considered at all points when navigating through the ever-changing circumstances of life.

Many of the clients that I work with run their businesses within the First Horizon; in a reactive manner that is inclusive of the present and without much interest paid to the short and long-term future that is yet to come. This certainly works, but when the Second and Third Horizons come into play, there often isn’t enough innovation or preparation taken to deal with the inescapable shift in gear.

Just as much focus needs to be given to the Second Horizon, as well. It’s a transitional period that sets our sights towards the potential of the near future, where infrastructure and technology shape innovation and bring with it a whole new set of circumstances that need dealing with. By opening your mind to the “what if” moments of several months or a year down the line, you’ll be surprised at what can be anticipated and developed to cater to these changes.

Taking a stroll through history, there are always patterns that repeat themselves and that should be worked into a means of predicting what’s to come and how to work with those predictions and possible circumstances.

With a keen eye and diverse mind, you can analyse, determine and form insights into what the future might hold and prepare yourself for endless possibilities; certain patterns are unavoidable, but predictable, with natural disasters, technological advancements and new innovations, we can see the Third Horizon open up and ensure that we take better control of the wheel.

Open Your Mind And Your Sights 

The Second and Third Horizons can certainly seem quite daunting when attempting to look at what the predictable and unpredictable future might hold, but by taking the time to let it simmer and by engaging with this thought process, you’re able to make better-informed decisions for your business.

You open the way to see what could be and innovate, accordingly. This gives your business and your vision a head-start in taking the future on, rather than being shocked and disoriented by any surprises that might come knocking on your door.

We are aware of the ever-growing potential of artificial intelligence, the unpredictable nature of diseases and pandemics, the direction that businesses are headed towards in learning the psychology of the customer, the leader and the employee; so by keeping well-informed and educated on such topics, you’re able to deduce and induce particular changes that the world will most certainly introduce to our civilization, as a whole.

Knowledge truly acts as a form of power in looking towards these new horizons, bringing with it innovation, adaptation and potential in sky-rocketing your business towards the beautiful vistas of the future.

Engage with that future and don’t focus too much energy on the single dimension of the present; open up your mind’s eye, view business and life in three dimensions and see the opportunities of the present and the future.

In my three-dimensional vision for the world, I can certainly see you as being a part of it. If you haven’t seen the testimonies, just yet – be sure to check them out.

With that, I’m able to predict the levels of growth and success that I can bring to your business and will provide the greatest level of coaching you’ve ever seen!

You can believe that.

If you’re a bit curious and want to know what exactly I’ll offer you (other than time, expertise, advice, strategies and the best insight) contact me for a one-on-one:

+2783 253 3339

brent@spillly.com