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No matter what type of business you own, nothing happens until someone buys what you have to sell! Without sales, your business is heading for extinction. Promoting your target market to buy from you is such a complicated multi-faceted undertaking that there are thousands of books, courses, seminars, and individuals dedicated to the concept of marketing and sales. This article series will focus on one small, but highly important aspect of sales – face to face selling, and to how to effectively connect with your prospective buyer.

Sales – The highest paying profession

Face to face selling is the highest paying profession in the world. “Why?” you might ask. Because those high earners possess an incredible array of skills, knowledge, dedication to continuous improvement, and discipline. Each of these success markers serves as a de-selection taskmaster weeding out the majority of sales people. Just like sports, only the best make it! But when they do, they enjoy a great payday!

One skill among the myriad of skills and knowledge required to scale to the apex of this profession is the ability to read people. How good are you and your sales people at reading people? Are you able to quickly recognize the personality type sitting across from you to whom you are attempting to effectively communicate the incredible value that you have for solving his/her problem? And, are you able to adjust your communication style to strongly connect with that person? If not, you are severely handicapped compared to those who have mastered this skill.

DISC personality profile

A tool that I have effectively used in my career, and that I teach my clients is called DISC. This personality profiling tool is not only valuable for sales; it is valuable for identifying the best roles for employees and for team building among your staff. The DISC personality profile is a system designed by American Psychologist Dr. William Moulton Marsden. It basically places people into one of 4 different personality types: D – Dominant, I – Influential, S – Steady and C – Compliant.

DISC uses a two criteria matrix to classify individual personality characteristics for the purpose of gaining understanding regarding why we relate and behave the way that we do and how to connect with an individual’s personality type. These two criteria are: Outgoing or Reserved and Task or People oriented.

Draw the DISC

Draw a cross on a sheet of paper. At the top of the vertical axis write “Outgoing” and at the bottom write “Reserved”. To the left of the horizontal axis write “Task oriented” and to the right write “People oriented”. Starting in the upper left quadrant and moving clockwise write one of the four DISC letters in each quadrant starting with “D” and finishing with “C” in the lower left quadrant. You have completed this exercise correctly if “D” is Task oriented and Outgoing, “I” is People oriented and Outgoing, “S” is People oriented and Reserved, and “C” is Task oriented and Reserved.

Simple model – complex people

By now you might be asking: “How effective is this simplistic approach to modeling such complex creatures as human beings?” No question, this tool is limited in its applicability. There are other, more sophisticated tools, such as Profiles XT, that more thoroughly analyze our strengths, weaknesses, and skill sets for proper role placement. However, the DISC’s simplicity is one of its characteristics that make DISC so useful. Once you learn this tool, you will be able to quickly correctly identify, at least most of the time, what dominates a person’s personality. This will better equip you to relate to that person on their terms and to present information to them in a way that they will accept and quickly assimilate. Isn’t this an important skill to master when in a selling situation?

In reality people are not just one personality, rather a combination of the four, in various ratios. Everyone is dominant in one. However another trait will likely be a close second. Taking the DISC test can show you the relative strengths you have in each of the four areas. The highest scoring will be your dominant trait. The higher the strength shown for one of the DISC personality traits, the more applicable will be the descriptions provided in this series of articles.

After you take the DISC test and become familiar with the DISC traits in the following series of articles, you will start to understand how other people think of you when they associate with you and begin to understand how to better relate to the various DISC personality types.

If you could increase your company’s sales by 10% through acquiring this skill, would it be worth it? Join me next week as we examine the characteristics of the four personality types. Then in subsequent articles in this series we will discuss how to relate to the various personality types in sales situations.

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

Welcome to Part 2 of a two-part series addressing online marketing. Last week we discussed the importance of being found early in search engines – a concept called SEO (Search Engine Optimization). This week we will visit the concept of “online reputation”.

What are others saying about you?

Do you know what others are saying about your business? I don’t mean what they are saying to their neighbors and friends, although that is important. I’m referring to the relatively new concept of local review web sites that have become the new Yellow Pages for those who search for businesses over the internet.

Let’s say you are looking for a hair salon in Norman. You could open the phone book or Google “hair salons, Norman OK”. If you choose the later, a Google search page will open with a map in the top left hand of the page, indicating where each of the top 10 salons is located. Those salons will be listed to the right of the map. Under each listing will be a link: “ reviews, directions, hours, and more »”. By clicking on reviews you can read what others are saying about their experience with that business. Local review sites such as Google, Yelp, Citysearch, and Yahoo! Local are rapidly becoming the “go-to” place for an ever more discriminating consumer population.

Don’t ignore review sites!

If you serve the local public and ignore these sites, you do so at your own peril. As a mentor of mine, Keith Cunningham, states: “The purpose for all marketing is to give your target market a reason to discriminate in your favor!” With the proliferation of local review sites, you could very likely be the victor or the unaware victim of this facet of online marketing! This can be a terrifying proposition; but managed properly can become one of your best marketing strategies.

Reviews from happy customers can be one of your best new business sources. Negative reviews can be like broadcasting you have the Swine Flu virus! What’s the answer? Overtly manage your online reputation.

By now you might be thinking: “With everything that I now have on my plate, how do I have the time and how do I acquire the skills to manage this?” I suggest the following:

1. Become aware: Monitor your reputation by periodically going to the various local review sites and read what others are saying about you. This is valuable data for improving your customer experience, which is the sole reason they do business with you and not your competition. Sign up for Google Alerts which can automatically alert you when your business is mentioned in a review, blog, or online document.

2. Manage the reviews: Make sure you are showing up on local search sites (see last week’s article). Then respond to the reviews, using as much of the “How to Win Friends and Influence People” tact that you can muster. Do not let uncomplimentary reviews raise your blood pressure no matter how scurrilous! Remember, you are involved in customer relations.

Respond to every negative review

You don’t have to respond to every review. However, I highly suggest that you respond to every negative review, otherwise you send the message that you don’t care, which only legitimizes the negative reviews and worsens your reputation. Thank the reviewer for calling this to your attention and explain how you intend to correct the problem. Never argue with a customer who posts a negative review!

A recent car buying experience

I recently purchased a new car. My decision had been narrowed down to two models from two different manufacturers. One of the choices had no negative reviews and the other had three negative reviews regarding their service department, with no response posted. I called some friends who drove that car and their experiences collaborated with the negative reviews. Even though, I was leaning toward that car prior to seeing the negative reviews, I decided on the other car.

I then took the time to write a constructive letter to the owner of the losing dealership, whom I’d met when in the showroom, explaining why I chose the other vehicle. To my surprise, I received an email from the general manager of the dealership denying they had an issue! This only reinforced my decision and the negative reviews in my mind. Denial is not a river in Egypt! It is lunacy!

Some tips:

· Never post false reviews on your site or on competitors’ sites. At the very least you can suffer embarrassment – and worse, heavy civil penalties.

· Create automatic alerts to notify you.

· Make sure you are listed on the local search sites and that your profile is complete.

· Study and learn from your reviewers.

· Too busy to monitor your reputation? Talk with your SEO provider and see how they can help you. But don’t neglect this aspect of your marketing!

Proverbs 22:1 states: “A {good} name is to be more desired than great wealth,” Do you know your online reputation?

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

I see this scenario too often. A small business invests in a web site and expects the world to beat a path to their virtual or real door. Seeing little traffic to their site and no increase in sales, the business owner many times concludes that e-marketing and/or having an online store is a waste of money.

The facts about e-commerce belie this conclusion. E-Commerce is the fastest growing part of our economy. North American advertisers spent approximately $9.4 billion in 2006 on search engine marketing, which determines where you show up in search engines based upon typical words used to find your product or service (called “keywords”). By 2011, spending is expected to top $18.6 billion.

Why have a web site?

By now you might be thinking “In that case I better get a web site.” There are three reasons to have a web site:

1. Your focus is business to business commerce with most of your sales effort revolving around face to face sales and you have a well known established brand. As a minimum you should have an online brochure providing a convenient efficient way for others to learn about your company, your products or services, and your USP (Unique Selling Proposition). Search engine placement is not as important in this scenario as in the next two.

2. You have a brick and mortar business where your prospects come to do business with you. Your web site should be designed to drive prospects to you. In this case, placing in the top ten of the local search engine results is much more important, as is managing your online reputation.

3. You have an e-commerce store with a shopping cart and no need to drive prospects to your brick and mortar store, if you even have one. This web site provides you with the opportunity to do business with anyone anywhere. Showing up on the first page of the organic search results (located on the left 2/3 of the search results page as opposed to paid search engine placement located in the right hand column) can make a big difference in revenue for this type of web site.

This article will focus on the last two reasons to have a web site. If you own a brick and mortar business that serves a geographically limited local consumer market, showing up in the top 10 local search results, next to the little map, can make a big difference in your sales. If you own a purely e-commerce store, showing up on the first page of the organic search results can make a big difference in your sales. In both cases, managing your online reputation (the number and type of reviews) can also have a significant impact on your sales, especially if you are a service business.

What is SEO?

Most business owners are now familiar with the concept of SEO (Search Engine Optimization). SEO is defined in Wikipedia as: “the process of improving the volume or quality of traffic to a web site from search engines via ‘natural’ (‘organic’ or ‘algorithmic’) search results. Typically, the earlier (or higher) a site appears in the search results list, the more visitors it will receive from the search engine…

As an Internet marketing strategy, SEO considers how search engines work and what people search for. Optimizing a website primarily involves editing its content and HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines.”

Architect for SEO

To the nontechnical person, that is a mouthful! Bottom line, if you are going to invest in a web site, be sure that you are working with an SEO expert, not just a creative graphic artist who knows HTML. The reason is that you want your site to be architected for SEO. Otherwise your site is handicapped when it comes to competing for search engine placement with those who have incorporated SEO into their web site structure. It can be analogous to building an energy efficient home from the ground up versus retrofitting energy saving concepts into an older home – much more expensive and less effective.

Work with an SEO expert

Find a reputable SEO expert with whom to work who is knowledgeable about e-marketing and is innovative in their approach. If you want, they can explain to you how cost per click, keywords, duplicate content, page indexing, affiliate marketing, SEO friendly shopping cart, etc, factor into your SEO success, or you can just ask them for results. However, the more you understand about SEO, the better SEO supplier you will likely select.

The battle for search engine placement, and therefore visibility, is being waged in a constantly changing arena. Diligently studying this ever evolving landscape and innovating with SEO technology to stay ahead of the game is essential to maintaining your online visibility. Similar to most advertising, it is very easy to throw a lot of money at SEO and not achieve the desired results. Look for an SEO expert who can point to a significant number of successes based upon return on investment and has the technical drive to stay ahead of the game without over charging.

Google “SEO OKC”. You can find some local experts with whom to work. At least one of those that appears in this search result has SEO patents pending, was a 2009 Journal Record Innovator of the Year Award winner, and is based in Norman. Regardless of with which SEO firm you work, subject your SEO investment to the same criteria that you would any other investment into advertising. Make sure that you are receiving good return for your dollars. For more details on how to test and measure advertising investment read my article “How Much Should I Spend on Advertising?” published in The Norman Transcript 7/27/08.

Join me next week when we discuss part 2 of this series, managing your online reputation.

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

First impressions matter, especially in the areas of sales and customer service. First impressions can inflame or disarm a dissatisfied customer, resulting in a severed or strengthened relationship. The choice is yours! Here is some food for thought.

We often refer to the brain as having two hemispheres: the left, largely responsible for logic, and the right, predominately responsible for creativity. This description fits what we know to be the cortex. However, there is a third dimension, the hypo-thalamus, which is in fact the brain stem and is solely responsible for instincts.

First impressions – fight or flight!

Bruno Catellani, of the Institute of Communication, Management and Sales in Switzerland, refers to the hypo-thalamus as the ‘Guard’ or ‘Gatekeeper.’ The ‘Gatekeeper’s’ sole function is to decide whether you are a friend or a foe. It is incapable of thought or rationalization and reacts purely on instinct by how it perceives your approach. If your initial approach stresses the ‘Gatekeeper,’ it will switch on the fight/flight response! Part of this process includes shutting down all other message receptors, which means any opportunity you had to communicate has just been totally closed off.

Build trust immediately

It’s absolutely true that you never get a second chance to make a first impression. Building the language of trust is the first step to successful customer service, which translates into building sales. What would your business look like today if every customer who ever did business with you was still an active customer? What if 20% of those were Raving Fans? See my Norman Transcript article published 8/24/08: “Developing the Ideal Customer Experience”

Instinct kicks in first

Think about this next sentence. If the ‘Gatekeeper’ doesn’t think, does the initial ‘Language of Trust’ have to be verbal? The answer is no. The first impression you deliver is based on instinct alone. The signals that you need to give out in the first 10 to 20 seconds are instinctive, i.e. your body language, which is translated by your movements, gestures, facial expression and eye contact. Is your body language open and relaxed or is it closed and tense? If you are sending an open relaxed message, your voice modulation and tone are calm, the speed of your speech is controlled and gentle. And finally, you must not invade the customer’s space.

Other factors, which will influence the ‘Gatekeepers’ friend or foe decision, are your appearance, clothes, smell, enthusiasm and posture. Once you’re past this initial first impression you can get on with developing a relationship with your prospect. The first impression that you offer a customer can be either a barrier or a doorway to open communication and a good relationship.

Professor Albert Mehrabian of UCLA broke communication down into three “V’s” as follows:

• Verbal: The message itself; i.e. the words you use.
• Vocal: The sound of your voice, intonation, projection, pitch and speed of your voice.
• Visual: The posture and gestures, facial expression and eye movement that people see.

The Thomas Gordon Institute added another dimension to this research and came up with:

• Words: Verbal
• Voice: Vocal
• Face: Visual
• Body: Visual

In separate studies, both institutions measured the effectiveness of each component of communication and its contribution to believability. Here are the results of their respective research:

UCLA

· Verbal = 7%

· Vocal = 38%

· Visual = 55%

Thomas Gordon Institute

· Words = 7%

· Voice = 23%

· Face = 35%

· Body = 35%

Such strong agreement warrants attention! The first step in delivering great customer service on order to create Raving Fans is to approach and greet your customer with open, friendly body language coupled with soothing, gentle voice modulation. Our total focus in this initial greeting is to get past the ‘Gatekeeper’ so that we develop and build rapport and open the prospect’s message receptors. The words themselves are not as important. A simple “Hi, how are you today,” is a good ice breaker.

Be present: dump preconceived notions

Be totally present and dump any preconceived notions about the customer’s mood or purpose for approaching you. Do not allow a defensive thought and/or posture to occur. You are calm and in control! Approach each and every customer as if they were your best friend and that you are there to help them have a great experience in doing business with you. Such an approach is likely to disarm and defuse any anger or distrust. Then watch what happens to your customer relationships and retention rate!

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

Last week we introduced salesman, John, to you. John had been making a decent income ($100,000/year) as a sales representative. However, he recognized that he could be accomplishing much more if he could only figure out how to utilize his time more effectively. After John contacted ActionCOACH for help, we learned that John knew very little about the numbers that could describe John’s sales career. John had a light bulb go on in his head when he realized that tracking KPIs (Key Performance Indicators) related to his sales activities could provide the knowledge needed to dramatically improve his earnings and lifestyle.

John’s continuing story

Over the next few weeks John started keeping sales records. He recorded the names of the people with whom he met, what he thought they would purchase, the dates he met with them, whether or not they bought from him, and the amount of the sale. As we studied his records, we noticed something very interesting in his spreadsheet: He was closing about 23 percent of his sales on the first interview, 12 percent on the second interview, and 6 percent on the third. When he met with a prospect a fourth, fifth, or subsequent interview, only 2 percent of those people ever purchased. And, those were his smallest, least profitable sales! John had been trained in the “everybody’s a prospect” school of selling and had always followed the “I’m going to call on them ‘til they buy or they die!” sales methodology.

Numbers give clarity!

As John reviewed his records, he noted that he was closing 37 percent of his business opportunities on either the first or second call, and only 8 percent thereafter. As we considered this interesting fact, we talked about how much time he was investing in following-up on these opportunities. For the most part, the people who bought on the first or second meeting were typically easy sales. They were fun clients to work with, and many of these customers became friends.

But the 63 percent who didn’t buy on the first or second call were typically much more difficult to work with. They didn’t return phone calls or respond to voice or e-mail messages. They tended to cancel or postpone meetings. They just weren’t easy to work with. We asked John, ”How much time are you spending chasing these people?”

John thought for a moment and said, “I’ve been spending almost 60 percent of my time chasing people who aren’t buying. And the few that do buy aren’t usually worth the effort…in that they don’t often become long-term customers. It’s almost like they’re giving me an order just to get rid of me.” As he spoke, he appeared to have an “Ah-ha moment!”

John understands

A smile came across his face as he realized what had been keeping him from making the commissions he really wanted. He was wasting the majority of his time chasing people who were never going to buy from him.

We then discussed the ‘novel’ notion of not calling a prospect after the second contact. If they haven’t bought, move on; look for a better prospect. We spent the next few sessions working on John’s telephone techniques and helped him perfect his “Elevator Speech”.

We invested time improving his networking skills so he could meet more people, make more friends, find more business opportunities, and close more sales.

Transformation follows understanding

Over the past few weeks, John’s results have been startling. Because he’s more focused on finding people who are in the market today, he’s not pushing himself on those that aren’t interested. He’s using the telephone much more effectively to find prospects and qualify them. His closing ratios have improved…and he’s making more money. And best of all, he’s got more time for his friends, family and himself. He’s no longer working harder, and he’s not just working smarter; he’s working less!

Can you think of some ways to achieve similar results in your business by knowing your numbers and implementing strategies for improvement? If you aren’t measuring how can you improve?

Thank you, ActionCOACH Terry Lussier, for contributing this informative story about John the sales representative.

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

Having just returned from over two weeks in Australia and scuba diving the Great Barrier Reef, I’m suffering from jet lag and a mountain sized “To Do” list to catch up with my clients. Therefore, I have chosen to employ one of the Six Steps to Growing a Successful Business, called Leverage. Leverage means accomplishing ever more with ever less. We can leverage through people, money, technology, education, etc. Today I am going to leverage through another ActionCOACH, Terry Lussier, from Ontario Canada. Terry recently submitted an article to our newsletter (ActionSTEPS) that I think provides significant value in an area where many businesses struggle today – getting more sales. So here it is in two parts. Thank you, Terry.

John’s story

John had been doing very well in sales, but he knew he could do better. He called ActionCOACH and asked for help. He was making a good living, but felt that he wasn’t focused. He wasn’t spending his time, effort, and energy in the right places.

Even though John was making over $100,000/year, John was running on two cylinders – which weren’t running very smoothly. For years he’d said to himself, “Imagine what I could do if only I could get focused and manage my time better! Then I could make some ‘real’ money”.

When asked what his closing ratios were, John pondered the question for a few moments, and then said that he didn’t have the slightest idea. He had never kept any kind of statistical records.

We then asked more sales-related questions:

· What is the size of your average sale?

· How many sales did you make last year?

· What was your biggest sale last year?

· How much money did you earn on it?

· What was your smallest sale last year?

· How much money did you earn on it?

· What is the profile for your ‘ideal’ client?

· How many sales do you close on the first meeting/call?

· The second? The third? The fourth, fifth, sixth, or tenth?

· What is your best source for leads?

· What are your sales, profit and income goals for this coming year?

John thought about these questions for a few moments, and with a puzzled look on his face, he said in a soft, quiet voice, “I don’t know the answers to most of your questions, but if you’ll wait a moment I can dig up the answers to the others, I just don’t have that information at my fingertips.” He continued, “I was never much into record keeping. For the most part, I’ve just been flying by the seat of my pants.”

If you want to be successful, you must run your business like a business. You need to know:

· Who are your best (most profitable) customers

· Where they came from

· How much they spent with you

· Your most profitable products

· The average value of your sales

· Your closing ratios

You should have the answers to these questions at your fingertips. Without them, you’re like a sailor who is in the middle of the ocean without a compass, sextant, radio, radar, or GPS! You’ve no idea in what direction you’re going. Because John didn’t keep any records, he didn’t know where he was, and as a result, he didn’t know what changes he should be making in his business planning.

Tune in next week when we learn of the changes John made to his tracking and approach to sales that dramatically improved his sales and his lifestyle!

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

Welcome to Part 2 of Above or Below The Line. Last week we discussed the line of demarcation between victors and victims. Above the line behavior and thought is characterized by:

· Ownership

· Accountability

· Responsibility

These create the acronym: OAR, which we use to propel and steer our way to our dreams.

Below The Line behavior and thought is characterized by:

· Blame

· Excuses

· Denial

Three types of Responsibility

In Part 1 of this leadership topic we described below The Line behavior and then above The Line behavior, ending with a discussion on Responsibility. A good friend and mentor, Michael Carrigan, gave me a deeper understanding of the concept of responsibility by explaining that there are actually three types of Responsibility. I am convinced that this concept is one of the key differentiating factors between excellence and mediocrity. Pay close attention!

The first type of Responsibility is to be responsible. Imagine that! What does being responsible look like? To me it looks like someone who is trustworthy, thoughtful, and takes ownership. When they say they will do something, you can count on it.

The root of responsible is “respond”. Think of it this way; we don’t react, we thoughtfully respond. Ever react to someone cutting you off in traffic instead of thoughtfully responding with responsible action? Think about being responsible. Are these the type of people you want to hire and with whom you like to associate?

The second type of Responsibility is the opposite of being responsible – irresponsible. We all know how that shows up. Do you like to hire or associate with this type of character?

You might be thinking by now, “Well, what other type of Responsibility besides responsible and irresponsible can there be?” There is a third. In fact, this type of Responsibility is the most common. It is not often noticed because it is so subtle. It is called nonresponsible.

Nonresponsible is the assignment of cause or blame outside of ourselves for any occurrence within our sphere of control. For example, have you ever heard this statement: “That person made me mad!” Is that really true? Does that person actually have that much power, or did we allow ourselves to become angry? That is an example of nonresponsible behavior. It is below The Line!

Here is another example. Have you ever had an employee tell you that they would have met the deadline if so and so would have done their part? Do you see how pervasive nonresponsibility is within our culture? Imagine the transformation of your business if you could eradicate 80% of nonresponsible behavior and thought! Do you see why moving from a position of nonresponsible to responsible is an essential ingredient for excellence and why most are mired in mediocrity?

In my ActionCOACH practice, I have met dozens of business owners and their employees. During our first “rules of the game” meeting, we establish that working with each other means all meetings and interactions must remain above The Line. It is fundamentally impossible for change to occur in a business or in an individual when one refuses to accept responsibility for one’s own actions and self created drama.

You can transform your business!

Can you imagine the transformation to your business if every employee grasps and embraces living above The Line? As the owner of your business you must set the pace and the standard. Be harder on yourself than on others. “What you do speaks so loud that I can’t hear what you are saying!” If you are playing above the line most of the time, below the line behavior becomes intolerable.

Call to action

As a coach, it is my job to help my clients to build their mental and emotional muscle so that they can handle the challenges in their business from a stronger mental standpoint. Therefore, I issue to you a call to action. Explain the “Above or Below The Line” concept to your employees. Form an agreement whereby if an employee has a complaint they are free to articulate that complaint. They must refrain from blaming anyone, making excuses or denying they are part of the problem. They must come to the table with a “solution” and remain above The Line.

Mount an “Above or Below The Line” poster in a predominate place in your business as a visual aid (Contact me if you want one). Do you think that this practice will create a more productive and harmonious working environment? Only if you set the pace!

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

Business owners, your business is a direct reflection of you! Its success, or lack thereof, and the circumstances surrounding it are all a direct reflection of you.

I feel the resistance already. “But you don’t know my circumstances, and you don’t know what it’s like to be in my business!” That might be true, but that does not negate this truth. Ignore it at your peril!

Our decisions matter

Where we are today is the result of the thousands of decisions (choices is a more PC word) that we have made to this point in our lives. When we look behind us to view the path of our lives to date, and then look forward in a direction that is in line with our history, we create a trajectory. Is that trajectory in the direction and on the pace that we want? If it isn’t, then we must change the way we are thinking, our perception of life, and/or our attitude.

Above or below The Line

I am going to introduce to you a concept that is simple, yet profound. This concept is by no means a cure-all for what ails you. It is a necessary, but insufficient ingredient to your success. At ActionCOACH, we call this “Above or Below The Line”. Are you above or below The Line? You are probably thinking: “What exactly is ‘The Line’”? To my clients who are reading this; you already know what “The Line” is, but don’t stop reading because none of us have completely mastered being “Above The Line”.

Victor or victim?

“The Line” is a demarcation separating two types of attitudes; separating victors from victims. We choose to operate either above The Line or below The Line. If we venture below The Line we find Blame, Excuses and Denial from which we can construct the acronym BED. This connotes inactivity and lack of progress, as in: “You made your bed, now lie in it”.

Below The Line

Do you know victims? They tend to blame circumstances or others for their lack of progress. How many times have you met an individual who tells you that their problems are the fault of “my relationship with my parents, my divorce, my banker, my business partner, my employees, my bad luck”, blame, blame, blame. Such negative talk, habitually embedded in the subconscious, does eventually become reality.

Or, they make excuses. We all know what that sounds like. And finally, occasionally they are in complete denial – like the business owner who has been losing money every month, but maintains they are not going out of business. Do we like to be around these types of people? Do we want to hire these types of people? Then why tolerate ever operating below The Line from ourselves?

I make a pact with each client of mine early in the coaching process. I give them permission (in fact request that they do so) to call me on the carpet when they see “Below The Line” behavior in me. I also have that pact with my wife, which can be painful at times! I then request permission from my clients to provide the same growth stimulation for them.

Above The Line

When we venture above The Line we find Ownership, Accountability, and Responsibility from which we can construct the acronym OAR; allowing the opportunity to steer your own boat wherever your dreams take you!

Ownership means that I own all things over which I have control and I own my response to all things over which I have no control. It also means being willing to accept the fact that it is my responsibility to properly differentiate between the two. What happens if I incorrectly label something as out of my control, when I really had some control? I’ve ventured below The Line!

For example, I arrive late for a meeting because of slow traffic. Ever made that excuse? It is true that I had no control over the traffic, but isn’t it also true that I had control of when I left for the meeting? Did I only allow enough drive time for ideal traffic conditions? If so, then it’s my bad!

Accountability is one of those areas where we business owners tend to falter. After all, didn’t we start our own business so that we wouldn’t have to answer to anyone? Guess what! If we think that is the case we are below The Line! We are accountable to our employees, our customers, our board, our families, and, if we are smart, our coach. When we say we are going to do something, do we do it without excuses?

And finally, we find Responsibility above The Line. Even though this word is common and might sound trite, the concept that I am going to share with you is profound. In my opinion, this concept is one of the defining differences between excellence and mediocrity! A friend and mentor of mine, Michael Carrigan, taught this to me. It has made a profound impact on my life. I teach this to all of my clients. Now you have the opportunity to learn it. There are three types of Responsibility. Do you know what they are?

Tune in next week to find out!

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

Whew! This business plan series took on a life of its own! I started this series on April 5^th and now it is August! For those of you who stayed with me, I hope that it was beneficial. If you want the complete series, contact me.

Whether or not you are in search of startup or growth capital, having a written plan will dramatically increase the odds of your success. In writing this series, I wanted to make sure that I included the most demanding circumstances surrounding the writing of a business plan – that of raising venture capital funds. If you are not in the hunt for outside capital, should you write a business plan? Absolutely! Need it be as extensive as a plan targeting outside investment? No, it should be adequate for keeping your business on course to achieve your vision.

What do I do with this plan?

Let’s fast forward. Now that you’ve completed your business plan, are you finished? Do you put it on a shelf like a trophy? Unfortunately, too many businesses owners fail to receive full value from their business plan writing efforts. As important as planning is to success, it is the execution of that plan that turns a vision into reality. Do not make the mistake of thinking “Now that I’ve written a business plan, I’m going to be successful”. Success is found in the execution of the plan, and in revising the plan as conditions change. Use your plan as a dynamic aid to running your business and visit it quarterly to create 90 day action plans. Revise it annually.

Back to the present – here are five steps to follow, from fellow ActionCOACH Kevin Weir, to successfully begin your plan:

1. Know where your business is going – 5 -10 years from now.

2. Break the plan down into realistic chunks. This is where quarterly planning helps you to create 90 day action plans for stair stepping your business towards your vision.

3. Assign tasks to team members. Involve your executive or management team in the creation of the plan.

4. Dedicate a block of time to thinking about and writing your plan. Many successful entrepreneurs invest a week away every year for the sole purpose of deep thinking about their life and their business, with the goal of emerging from their 5 – 7 day sabbatical with a plan for each. Then dedicate one day away quarterly to create the next 90 day action plan. Think about how your business would benefit if you actually implemented this practice!

5. Have a business coach assist you. An outsider’s perspective provides incredible value, such as:

· Idea generation

· Guidance through the business plan writing process

· Asking hard questions to test your assumptions. (The major reason for unrealistic business plans is failure to test assumptions.)

· Avoiding unforeseen pitfalls

Make quality decisions

The situations and conditions surrounding our lives and businesses today are the cumulative result of the thousands of decisions that we’ve made until this point. The quality of our decisions determines the quality of our lives. The quality of our decisions is related to the quality of the questions that we ask during the process of coming to a decision.

One of my mentors, Keith Cunningham, once told me: “The quality of our decisions is directly related to the number of conflicting concepts that we simultaneously entertain while in the process of coming to a decision”. Keith is a very successful entrepreneur, teacher, and coach. Realizing that we become emotionally attached to our decisions, Keith uses a small advisory group to increase the quality of his decisions by cutting away emotional equity.

When Keith has an important decision to make, he performs his due diligence, creates a plan, and arrives at a decision. He then assembles his advisory group and presents his decision with the path that he followed in coming to that decision. The purpose for the advisory board is to talk him out of that decision! Regardless of whether or not Keith changes his mind, do you think that this practice increases the quality of his decisions? Because of the emotional attachment that we tend to have to our decisions, this can be painful. process. However, is it worth enduring the discomfort of cutting the emotional ties to our decisions in order to stack the odds in our favor that we are making the best decision for our business and our future?

A call to action!

With that said, I am issuing a call to action to all of my readers. Make a plan that will enable you to achieve your vision. Assemble a group of trusted advisors, not “yes” people, who will be willing to ask you hard questions. Be willing to endure the discomfort of being challenged for the sake of achieving your dreams!

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

We have reached the final installment of the Part 9 series on financials as a part of your business plan. Today we will discuss the Sources and Uses of Funds and the vital Assumption Sheet.

Sources and Use of Funds

When preparing Sources and Use of Funds, keep in mind that investors will not want to see their investment used to pay back debt, but rather to build and grow your business. Do not make the mistake of underestimating the amount of money needed to accomplish your objectives. If you are in the early rounds of funding, when expectations are high, underestimating capital needs and having to return to the “money well” will cost you significantly more.

Having numerous sources of funding (including yourself) bolsters your position in the eyes of potential investors, showing that you and others believe in your company. Include the following in your Sources and Uses of Funds Statement:

· Funding Rounds: The number of times you plan to go to the “well”

· Total Amount: the funding needed to complete this round of financing

· Equity Financing: the amount to be raised from the sale of stock

· Preferred Stock: outstanding stockholders (amount not names) that will receive dividends before common stockholders and other obligations

· Common Stock: outstanding stockholders (amount not names) that receive dividends after preferred stockholders and other obligations

· Debt financing: from loans

· Long-Term Loans: paid back in more than one year’s time

· Mortgages: loans form collateralized property

· Short-Term Loans: paid back in less than one year

· Convertible Debt: loans that can be converted to equity

· Investment from Principals: owner(s) or key employees

· Capital Expenditures: equipment or property purchases

· Working Capital: funds for ongoing operating expenses

· Debt Retirement: funds earmarked for existing loan payment

Assumption Sheet

Your Assumption Sheet will reflect the quality of the decisions that you have. Remember, the quality of your assumptions will separate fiction from reality. Fictional projections are the fastest way to lose investor confidence. Explain your research and how you developed your forecast. The assumption list can be statements, like bullet points, rather than paragraphs.

When preparing the financials part of your business plan, make sure that you bring your accountant into the loop. I also recommend that you have a board of advisors who will challenge your assumptions. An outside unemotional perspective is invaluable at this point in your planning. Also, keep these imperatives in mind:

· Be conservative: otherwise you risk reducing your credibility in the eyes of investors and, worse, risk making disastrous decisions.

· Be honest: “Do not deceive thyself” or investors. Investors will demand that you justify the numbers and your advisory board should do the same.

· Use industry standard forms and terms: your accountant should help here.

Overall, if you are a new business, the numbers in your plan mean less than your words. If you are a mature business this is reversed. If you are searching for outside capital input for your business, according to Keith Cunningham, there are four critical pieces of information that investors must have before buying into your company:

1. A good idea of how much your company is worth today

2. An estimate of how much it will be worth when they liquidate their investment

3. A calculation of the size of the returns needed to compensate them for the risks

4. A good idea of how many years they will be in the investment

Do you see how important accurate historical financials are and how important realistic financial projections are to outside investors considering giving you money?

In closing, review your financials monthly. One way to view them is as the score board of your business. How do you know if you are winning or losing in this game we call business if you can’t understand or don’t avail yourself of the score board?

Join me next week as I wrap up this 10 part series on writing the dreaded business plan.

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com