Tag Archive for: entrepreneurial journey

No Goal + No Direction = Where on Earth are We Going?

No Goal + No Direction = Where on Earth are We Going? 

“If you don’t know where you are going, you’ll end up someplace else.”

~ Yogi Berra – New York Yankees Hall of Fame Catcher

Have you found throughout your career that there are times when you lack a clear and concise direction or goal?

Those unfortunate occasions where it seems that you just spin in circles.

Over the years, I have certainly been guilty of this.

Without a specific destination in mind, it is hard to determine if a goal was actually missed.

“Most people fail in life not because they aim too high and miss, but because they aim too low and hit.” ~ Les Brown – Motivational Speaker 

How can you claim that you failed at something if there was no direction or goal to begin with? 

From personal experience, many entrepreneurs struggle due to not possessing a specific goal. 

In other words, a lack of clarity and direction. 

Not just lacking direction, but more importantly, the absence of a determined destination.

How can you plan a road trip or vacation without knowing where you are going?

Without a plan or destination, you might not like where you end up. 

Plan the Road Trip 

No Goal

Plenty of planning goes into traveling on a road trip or a vacation.

Isn’t that exactly what entrepreneurship is all about? An extended road trip, right? 

Even when you finally hit one destination or goal, plenty of NEW destinations and goals lie ahead waiting for you.  

Yet, without a plan, how on earth can you reach any destination?

It is said, “life is not a destination but a journey.” I fully agree.

Yet, without some type of plan, map, an agenda or even a vague idea of where we are heading, aren’t we apt to drift and wander?

Plotting the Map 

Let’s say you are in need of a vacation. 

First, select a destination.

Possibly the same location that your family has traditionally visited for many years.

In this case, you are not looking for an adventure, you just want to relax. It is comfortable. Known. 

Otherwise, maybe you prefer a new location each year. An exciting new adventure. Foreign terrain.

Possibly satisfying a “bucket list” destination.

Somewhere you have dreamed of going your entire life.

A beach. An amusement park. Disney. Europe. An exotic island. Camping. Visiting relatives (The in-laws again!). 

On the other hand, some people love to travel spontaneously and not plan.

Making arrangements at the last minute.

My wife and I are known for taking last minute trips with little planning.

The impulsiveness can be thrilling, yet can sometimes cause unnecessary stress.  

However, even when you make last minute travel plans, you still have a destination. 

You make travel arrangements. Car, train or plane.

You research a variety of hotels, resorts, or Airbnb.

You browse through numerous reviews to pick the best place to stay.

This is an important trip. You don’t want to take any risks on poor accommodations to rest your head at night.

Poor reviews mean no chance of you staying there.

In any event, you envision what your destination will be like.

The sights (hopefully breathtaking).

The sounds (hopefully exhilarating).

The food (hopefully outrageously delicious).

The people (hopefully amazingly friendly).

So how does traveling compare with entrepreneurship? 

Plan Your Business Road Trip

No Goal

Not planning a destination for your business can also cause unwanted challenges and unnecessary stress.

You may find yourself being reactive instead of proactive. 

Drifting along. Day by day.

Finding the days, months and years slipping past. 

Just barely getting by with your business instead of flourishing and thriving.

Entrepreneurs are busy. Sometimes simply too busy putting out fires.

You are pulled in many different directions.

Handling demanding customers. Negotiating with banks and vendors. Dealing with employee issues.

Fighting for sales and positive cash flow. Attempting to maintain a healthy balance between your business and personal life.

Though it is critical to be agile and flexible as well as ready to pivot when necessary, setting a goal and plotting a road map helps prevent those dreaded distractions and “shiny object” syndrome. 

More importantly, determining a goal and a concise destination helps keep you on the right path towards success. 

Convert  “No Goal” into a Fruitful Journey 

No Goal

Isn’t that a cool picture.

Think about it, you can have the whole world in your hands with entrepreneurship. 

To mobilize towards a goal, take a look at the who, the where, the what and how: 

Who will travel the entrepreneurial journey with you?

 It is said that it takes a village to raise a child.

Well, it also takes a village to raise a business. Who is in your corner?

Surround yourself with “Dream Supporters” who believe in you:

Business partners, advisors, employees, customers, vendors, bankers, accountant, lawyer, family, friends, your significant other, etc…

Where do you want to end up? 

Visualize your destination. 

Actually, it most likely will be a series of destinations. 

Program and power your mind around your destination. 

The mind attracts what it dwells on. 

Open your arms and welcome the people, resources, energy and support to make your goal a reality. 

Implement a positive plan of action in the pursuit of your goal. 

What does success look like to you? 

How do you measure success?

Sales and revenue goals. Profits. Net worth.

Number of customers that you help serve and solve their problem.

Achieving financial goals combined with a healthy work/life balance also sounds like a fantastic goal. 

Set a target and pursue that goal relentlessly. 

How can you achieve your goals? 

What do you need to sacrifice to achieve your goals?

Every new Yes means a No elsewhere. 

Take a hard look at yourself and address the roadblocks that currently exist preventing you from reaching your goals. 

Plot out the time, energy, financial resources, staff, support, consultants, mentors, and all other factors that will move you towards your goal. 

Pick a Cause

Narrow your focus. 

Exploit your strengths. 

Try pleasing everyone and odds are you will end up pleasing no one. 

You know the saying “Jack of all trades, master of none.” 

So what is your goal?

Why did you get into business in the first place?

Once you select a goal, this helps determine the number of resources needed to hit that goal.

Describe your mission. In other words, what are you absolutely best at? 

What are your core strategies?

Additionally, what tactics and daily steps are necessary to achieve your goal?

Finally, just get in the game.

Be consistent and give it everything you’ve got. 

 

“I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.” – Bruce Lee 

 

Wrapping It Up 

Thank you for taking the time to read this post. 

I wish you tremendous success on your entrepreneurial journey. 

For more helpful info, check out these additional posts:

Do You Find Inspirational Quotes Help Conquer Tough Times?

Teaming up with a Sherpa to Climb the Entrepreneurial Mountain

 

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Your Business Might be Saying it is Time to Sell YOU!

Is it time for your business to sell YOU?

An interesting thought to consider. 

First, below includes a few questions to help recognize if it is time for your business to sell YOU. 

  • Do you own your business or does your business own you?
  • Have you found yourself saying, “I’m stale” or “I’m tired”?
  • Feeling burned out?
  • Do you daydream about, “If I could only sell this business, I could finally (fill in the blank)”?

Well, as the saying goes, “As a man or woman thinketh, so shall it be.”

If you are starting to mentally check out, or even worse, you have already checked out, you could be heading down a troubled path.

Especially if you don’t have a succession plan in place or a buyer in mind.

Let’s discuss further. 

“This is How We Have Always Done It”

Sell You

Many years ago, I owned a business that was doing extremely well. 

One day, the scariest words in business came out of my mouth, “this is how we have always done it”.

That day was a turning point.

I was on the cusp of overstaying my welcome (20 years in) and decided that it was time for me to move on. 

Looking back, I realized that the business was telling me it was time to go.

In other words, the business was basically saying “Dude, it’s time to SELL YOU”. 

In reality, I needed to hand over the reins. 

Fortunately, an amazing partner purchased the company. Phew!

Is it time to sell YOU?

If it is time for you to move on, here are a few questions to ask yourself:

  • Are you in position to leave your business mentally as well as financially? 
  • Do you have the financial resources to live on? Comfortably?
  • How will you occupy your time? 
  • Most importantly, are you psychologically prepared to transition into the next phase of your life? 

Your Greatest Asset is Ready to Sell You

So your greatest asset is ready to unload and sell YOU. 

Another way to look at selling your business is the fact that you are selling an asset.

For example, would you sell your home to live on that cash?

Would you cash in a stock portfolio or 401k to live on?

This is exactly what you are doing. You are cashing in on an asset.

To clarify, when you sell a business you are not receiving a paycheck, you are liquidating an asset.

Liquidating an Asset, Not a Paycheck

When I sold my business, someone said to me, “it’s great that you still get a paycheck”. 

I explained, it is not a paycheck, I liquidated my biggest asset at that time. 

The daily gamble is over. Turning in your chips at the casino.

Cash either creates risk or eliminates risk.

Actually, some could argue that cash ALWAYS creates risk either way.

The point here is that cashing in eliminates your risk with the business.

For example, it eliminates the risk of sales and profits declining.

It eliminates the risk of losing a key employee to a competitor or even worse, that they become your competitor.

Selling your business also eliminates the chance of losing a top customer that represents a large portion or even a majority of your sales. 

It eliminates the daily crisis that you have been dealing with for years or even decades.

Selling your business locks in your return that you honestly might not have achieved by staying in business.

For example, if you are able to sell a business for $1 million dollars, that’s $100,000 over the next ten years or $200,000 over the next five years. Just without working at the business.

Plus you have the present value to consider.

Can you put that million to work for you to generate other positive cash flow opportunities?

The sad reality, the buyer is basically paying you to go away

sell you

You put in years, possibly even decades as an entrepreneur. 

Poured out your heart and soul to build up your business. 

In reality, now someone is paying you to simply “not let the door hit you on the way out.” 

Tough pill to swallow, right? 

Not at all. 

Remove the emotion. Focus on the return on investment.  

Be grateful for this incredible opportunity. 

Many entrepreneurs put their blood, sweat, and tears to build their business. 

Unfortunately, in the end, many entrepreneurs have little value to show for it.

Remember, the value of your business is ONLY the amount of money the person across the table is willing to pay. 

Not a penny more (Unless you are blessed with multiple buyers competing for your business). 

It’s Not Your Baby 

A common mistake for entrepreneurs occurs when they view their business as their “baby”. 

Starting and growing a business can certainly be compared to raising a child. 

Yet, that is where the comparison needs to end. 

Don’t let ego or emotion get involved. 

If you sell a stock is there emotion attached? Hopefully, the answer is no. 

Treat your business strictly as an investment. 

Sell without emotion (challenging yet something to strive for). 

For example, Carey Smith, founder of Big Ass Fans said this about selling his company for $500 million: 

“At the end of the day, though I really cared for the business, it’s not my child. You always love the people, but fans are a product. We wanted to make sure the buyer didn’t simply open the doors and tell everybody to leave. But other than that, it’s like buying a stick of gum: It’s mine until you pay me for it–and then it’s yours.”

It’s critical when selling your business to keep reminding yourself that it is NOT your baby. 

Trusted Advisor

Another important factor when your business decides it’s time to sell YOU, discuss this with your trusted advisor on following the best path possible. 

Connect with your accountant, attorney, financial advisor or the Small Business Development Center.

Find a business broker with an impeccable reputation to guide you through the process. 

Partnering with a team of trusted advisors pays huge dividends.  

Most importantly, enjoy the thrilling experience that your business decided to sell YOU. 

The bottom line, embrace the opportunity that someone is willing to pay you for what was once purely a dream or a vision. 

Take the money and run. 

Start your new life and give that next chapter everything you’ve got just like you did when you started your business. 

Time for a new challenge? Pursue it full throttle.  

Time to relax and enjoy yourself? God bless you! You earned it.  

Above all, be proud that you built a sellable asset that actually was worth something to someone else. 

Pat yourself on the back that you created a viable entity as well as found a willing buyer to fund the next phase of your life. 

Well done my friend!! 

Wrapping It Up 

Thanks for reading this post! I deeply appreciate it!! 

For additional tips, check out these other helpful posts: 

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Business Mission Statement: “BECOME THE BLANKIE”

BECOME THE BLANKIE!

What on earth does that mean? 

So glad you asked. 

As a child, did you have a favorite blanket (aka “Blankie”)?

Ah, the wonderful security blanket. 

Holding tightly onto the Blankie each and every night.

Unable to sleep without that Blankie wrapped comfortably in your arms. 

Sometimes throughout the entire day as well. 

The thought of parting ways was unimaginable.

It helped guide you through tough times such as a sickness or recovering from hurt feelings. Especially after being scolded. 

Fresh out of the dryer was the best. 

Bringing back fond memories?

The Blankie defines security as well as a good night’s sleep. 

Maybe your children possess one now.

Blankie (binkie, woobie or any other cool blanket name) forms an unbreakable bond. 

To change gears, let’s compare this bond to business relationships. 

In particular, with your customers. 

Just think if your customers considered you THEIR Blankie? 

It certainly sounds like an excellent goal to strive towards. 

So let’s further discuss, “BECOME THE BLANKIE!”

Related Article: The Definition of Entrepreneurtude: “Do Whatever It Takes”

Power of the BLANKIE 

 

Security is about building trust. 

A child trusts that their Blankie will provide a safe and secure experience. 

Even with monsters under the bed or hiding in the closet, the Mighty Blankie will provide protection. 

Do you offer that same safe and secure experience with your customers? 

On the other hand, do you contribute to a restless and sleepless night for customers due to poor service and unreliability?

Sure, we all think that we don’t. 

However, how would our customers honestly answer these questions? 

Related Article: 19 Tips on the Art of Building Trust (Plus a Bonus Tip From Warren Buffet)

The Adult Blankie 

 

As adults consider all of the products and services that we use on a daily basis that serve as our own “Blankie”. 

Your morning coffee. The gym. Your car. 

However, the perfect example of the adult “Blankie is our cell phone. 

Is your cell phone tucked under your pillow at night? 

It is hard to imagine a moment throughout the day when you are not aware of the exact location of your phone. 

Do you feel safe and secure knowing that your Blankie, um, I mean cell phone is right by your side?

 

When you misplace your phone do you quickly go into panic mode? Absolutely! 

The “Adult Blankie” needs to be by our side 24/7. 

In your pocket. Purse. Otherwise, somewhere safely within sight to put our mind at ease. 

Cell phone companies created a true “Adult Blankie” experience for us. 

Crazy, right? 

Related Article: 12 Helpful Suggestions to “Give Value First”

Additional Daily Blankies 

 

Additionally, think about all of the products and services (Blankies) that you use on a daily basis:

Mattress, pillow, sheets, soap, shampoo (not me), razors, dental floss, toothpaste, makeup, deodorant, coffee, breakfast, clothes, shoes, vehicle, insurance, gas station, radio station (local or satellite), favorite music or bands, podcasts, internet provider, search engine, internet browser, computer, what you eat for lunch, preferred social media platforms, dinner, favorite sports team, movies, hobbies……..(pant, pant)……..and the list goes on………

When you go through your entire day, you realize there are potentially dozens of products and services that we welcome into our lives on a daily basis.

In many cases, items that we have been brand loyal to for numerous years.

Additionally, with plenty of these brands, we have no interest in changing or giving up.

These products are cemented into our daily routines and habits.

Each product or service helps define who we are.

To change or breakaway would be like a divorce.

Think about how did you select or become loyal to any one of these items, to begin with?

For one reason or another, we invite these companies and their products into our lives.

We trust these products and services to make our day better. 

To make us better. 

However, let’s change gears.

Let’s look at our own businesses.

More importantly, as a business owner, how do your customers choose you?

Are you included in anyone’s routine or daily habit?

Do you have customers that consider you their “Blankie”? 

14 Tips on How to “BECOME THE BLANKIE”

 

So let’s make it our business mission (or war cry): “BECOME THE BLANKIE!”

Becoming the Blankie by swaddling your customers (sorry, I couldn’t help myself). 

Blankie benefits for your customers include:

  • Lower their stress 
  • Reduce anxiety 
  • Help Soothe 
  • Deliver safety and security
  • Be trustworthy 
  • Dedicate to contributing to their good night’s sleep

Below include 14 tips on becoming the Blankie: 

  1. Build Trust 
  2. “Take time to understand how you can help others….then go out and do it.” – Thank you Ben Baker
  3. Choose Integrity first 
  4. Be authentic 
  5. Dedicate yourself to creating unique solutions 
  6. Uncompromising commitment to the success of others
  7. Strive to ask exceptional questions
  8. Healthy communicator
  9. Challenge others on your team to be the best
  10. LISTEN intently
  11. Say what you do then do what you say 
  12. Overdeliver 
  13. Quality, Quality, Quality
  14. Own mistakes & correct them quickly 

Lastly, being warm and fuzzy certainly helps as well. 

Wrapping It Up 

Thanks for reading this post. 

Check out these posts for additional info: 

 

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The Definition of Entrepreneurtude: “Do Whatever It Takes”

Entrepreneurtude? 

Huh?

What is Entreprenuertude? 

So glad you asked. 

We hear about entrepreneurs, entrepreneurship, as well as having an entrepreneurial spirit. 

Actually, how do you define entrepreneurship? 

The godfather of Entrepreneurship Studies at the Harvard Business School, Professor Howard Stevenson says, “entrepreneurship is the pursuit of opportunity beyond resources controlled.”

Entrepreneurship certainly takes a special breed.

Additionally, a successful entrepreneur carries a hardcore, can-do attitude. 

In other words, they possess Entrepreneurtude. 

Above all, they “Do Whatever It Takes”.

Let’s dig deeper. 

WHAT IS ENTREPRENEURTUDE?

Entrepreneurtude

First of all, Entrepreneurtude can be defined as:

“An individual who seizes opportunities with relentless persistence and an uncompromising willingness to do whatever it takes to succeed.”  ~ me (Curt Anderson)

Hence, an individual with Entreprenuertude must possess the following characteristics: 

  • Shameless Optimism 
  • An Entrepreneurial Spirit 
  • Relentless
  • Opportunistic
  • Persistent 
  • Unwavering Passion 
  • Fierce Belief in Oneself 
  • Unstoppable Confidence 
  • Swagger 
  • Moxie 
  • Difference Maker 
  • Disruptor
  • Pioneering
  • Innovative 
  • Laser Focused 
  • Dreamer 
  • GameChanger 
  • Profit Producer  
  • Unable to work for someone else (are horrible employees) 
  • Job Creators
  • Contagious Enthusiasm 
  • Inspirational Leaders 
  • Vivacious 
  • Unable to Confine 
  • Problem Solvers 
  • Intense 
  • Zealously Competitive 
  • Resilient 
  • Highly Motivated 
  • Fearless (Yet, scared as hell at times)
  • Visionary 
  • Won’t Take No for an Answer While Excellent at Saying No 
  • Go-Giver 
  • Capitalists 
  • Sheer Determination 
  • Goal-Setter 
  • Risk Taker 
  • Obsessed with Success 
  • Borderline Delusional (most likely a bit insane) 
  • Willing to Fail 
  • Maximizes Time 
  • Executes to the Extreme
  • Courageous 
  • Deeply Committed 
  • Insane Work Ethic 
  • Fights for a Cause
  • OverDelivers
  • Above all, Does Whatever It Takes 

DEFINITION OF ANTI-ENTREPRENEURTUDE

In contrast, characteristics of the anti-entrepreneurial spirit, otherwise known as those who do NOT possess Entrepreneurtude:

  • Lazy
  • Uninterested
  • Probably Grinding the 9-5
  • Celebrates TGIF
  • Passive
  • Lethargic
  • Lackadaisical
  • Weary
  • Most likely Comatose
  • Just doing their time while going through the motions 
  • Slacker
  • Sloth
  • Counting the days until retirement
  • Dread Monday’s
  • Chronically complain about their boss as well as co-workers
  • Certainly Negative
  • Pessimistic
  • Inflexible
  • Narrow-minded
  • Fearful
  • Scattered
  • Lacking focus
  • Stuck in a rut
  • HAVE LOST THEIR THRILL OF HOPE

ENTREPRENEURTUDE = OPTIMISM = DREAMERS

Entrepreneurtude

Consequently, the Entrepreneurtude mantra goes as follows:

  • Pursue your goals relentlessly
  • Seek opportunity with tenacity
  • Surround yourself with dream supporters

ENTREPRENEURS ARE ULTIMATELY the most OPTIMISTIC people you will ever meet

Optimism is another fantastic trait for those with Entrepeneurtude. 

For example, the wonderful thing about surrounding yourself with early-stage entrepreneurs is you will never meet a more optimistic group of people.

I am yet to meet an entrepreneur starting out with the intention to fail.

They are truly glass half-full as well as shameless optimists.

Due to the fact that they are out to conquer the world.

Additionally, many entrepreneurs may be viewed as overconfident. Probably even delusional.

However, all in all, entrepreneurs are dreamers.

Determined to make massive positive change as well as disrupt their market.

Place a stake in their community. Hire employees. Create a legacy as well as change history.

Furthermore, some simply want to build a better life for themselves.

While others flat out have no desire to work for others and need to do their own thing.

Optimism also bleeds within seasoned entrepreneurs. 

Giving everything they’ve got. Everyday.

Even those that have been beaten down over the years or possibly decades. 

Rode the entrepreneurial roller coaster of enjoying the highs as well as surviving the lows.

For example, not knowing how you were going to cover payroll on Thursday, and it’s Tuesday night, helps define the struggles of entrepreneurship. 

Another slew of challenges and struggles include: Losing a key employee or your largest customer, taxes, health care, regulations, cash flow, vendor delays, tariffs, fierce global competition, and the list goes on……

Almost makes you want to get a job. No way!

Entrepreneurtude prevails yet once again! Just Do Whatever It Takes. 

Entrepreneurship = Swimming in the Ocean 

However, ever feel like you have entrepreneurship all figured out? 

It certainly seems like owning a business is similar to swimming in the ocean. 

Just when you think you have the waves figured out, a large wave comes along to plant you in the sand.

The ocean finds it necessary to remind the swimmer who’s the boss.

Knocking you down a few notches and also leaving you gasping for air.

Likewise, entrepreneurship works the same way.

Complacency kills. Quickly.

Especially since the market will remind you that there is no rest for the weary. 

Take your eye off the ball for one second and you almost surely make a fast fool of yourself.

It’s imperative to stay hungry while also maintaining a healthy does of Entrepreneurtude at all times (Just Do Whatever It Takes). 

Do You Pick Entrepreneurtude or Does Entrepreneurtude Pick You?

Finally, do you pick Entrepreneurtude or does Entrepreneurtude pick you? 

Hence, are you born with an entrepreneurial attitude or is it learned along the way? 

It certainly seems like entrepreneurs simply cannot help themselves. 

In particular, most entrepreneurs simply are unable to work for anyone else.

Corporate life? No thanks.

Especially when working for a boss that restrains and rejects your ideas, innovations, and goals. I think not! 

Above all, Entrepreneurtude is like caging the starving beast. Just ain’t going to happen.

The bottom line, the Definition of Entrepreneurtude: “Do Whatever It Takes”

Wrapping It Up 

Thanks for reading this post. I certainly appreciate you stopping by. 

Lastly, for additional articles, please click below: 

 

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“I’M DIVERSIFIED!” No, Actually You’re Doing Five Things Horribly

Are you Diversified? 

Hopefully, you are a much better multitasker than I am. 

Diversification does not agree with me at all. 

Case in hand, walking and chewing gum at the same time is a huge challenge for me: 

Well, I have a funny story to share with you on my disastrous plan of being “DIVERSIFIED” where being told how “Horrible” I was turned into brilliant advice. 

It goes back over 20 years ago to the year 2000 (time sure flies when you’re having fun). 

Entrepreneurtude

First, what does it take to be an entrepreneur? 

You need a trait that I refer to as “ENTREPRENEURTUDE.” 

As an entrepreneur, you need a determined and relentless attitude.

Tenacity! Thus, ENTREPRENEURTUDE. 

Unstoppable confidence, right? 

Unfortunately, that confidence can sometimes lead to trouble. 

Overconfidence creates delusion. Cloudy decision making. 

Well, I am a recovering delusional entrepreneur (probably not fully recovered). 

“I’m DIVERSIFIED” = Train Wreck 

Diversified

As an entrepreneur in 2000, truth be told, I was an absolute train wreck. 

I was decent at growing sales……unprofitably though.

My running joke looking back, no one sold a dollar for $.97 better than me (do the math on that one).

Unless you sold your dollar for $.96, no one was going to beat me at $.97.

Impressive, right? 

I found out the hard way that there is no guarantee of scaling your way to profitability. 

However, I had a DIVERSIFIED business.

I had developed 5 separate sections of the business. 

In 2000, I owned a wholesale business (with 2 separate product lines), that was trying to become an eCommerce business while trying to get into manufacturing as well as also attempting to become a drop shipper. Say that five times fast. 

My logic was to reduce vulnerability. 

Create a diversified business where if one area went down, the others would hold up the business. 

In reality, I created a scattered mess. 

Sales were climbing quickly but losses were mounting.

So I finally conceded I needed help. 

I reluctantly brought in a consultant to analyze the business to help identify challenges and to discover the culprit causing the losses.

DIVERSIFIED = Doing Five Things Horribly 

Once the consultant arrives, we get past introductions and she immediately requests, “tell me about your business.”

I proudly declare, “I’m DIVERSIFIED!” (Remember, I had Entrepreneurtude!).

I explain that If one area suffered or went south, I had four others backing it up to strengthen the business.

She was certainly going to be incredibly impressed, right? (Wrong!)

She then asked if I could explain each area of the business. Provide the details on why and how I had chosen these 5 areas to pursue.

She continued by asking what competitive advantages did the company possess for each area. 

When I was done explaining everything (rambling), she quickly made her assessment and offered a statement that completely changed my life. 

Said looked at me as said:

“Well, I know what your problem is. You are too diversified. Actually, you are doing five things horribly instead of one or two things exceptionally.”  

Are you familiar with the expression, “When the student is ready the teacher appears”? 

Well, my teacher appeared. 

What Are You Absolutely Best At?

She continued on with this question, “What are you absolutely best at”?

Well, truth be told, we weren’t really good at anything at that point.

She was looking for our core which was hollow at that time.

Ouch! That was a tough pill to swallow. 

We had explosive sales that were unprofitable. The business was sinking quickly.

Then she asked, “What do you feel is the future of the company? Where are the profitable growth opportunities?”

My answer: eCommerce.

This seems completely obvious writing this in 2019.

However, declaring this in 2000 was a huge risk.

The dotcom bubble was bursting and eCommerce companies were failing fast.

The business was floundering by pursuing areas where we had no competitive advantage.

I was exhausting time and energy by spreading company resources too thin. 

Give It Everything You’ve Got 

She once again looked at me and said, “Drop each area immediately that are draining your resources where you just explained that you have no competitive advantage.”

She then dropped another bomb, “Since you feel the future is in eCommerce, GIVE IT EVERYTHING YOU’VE GOT!” 

Placing a laser focus on a specific area became essential.

Unfortunately, many business owners foolishly pursue weaknesses. I certainly did. 

Additionally, I lacked the resources, expertise, knowledge or finances to overcome those weaknesses. 

Trying to be everything to everyone leads to being nothing to no one and I was guilty as charged! 

Jack of all trades, master of none. 

A common reason for a restaurant failing is the menu simply being too large. Too diversified.

Creativity is a blessing and a curse for many entrepreneurs. 

Narrowing a focus when a ton of revenue ideas and possibilities dangle in front of you is tough. Extremely tough.

What road do you pick?

The challenge is narrowing the selection and picking the profitable path.

Please Pick eCommerce!

My heart, passion and dream was eCommerce. 

A competitive advantage existed with eCommerce. 

Competition was scarce in 2000 with eCommerce. 

The benefits with eCommerce were tremendous and those benefits still exist today. 

I have made thousands of mistakes over the years but choosing the eCommerce path has been an amazing ride. 

Fortunately, years later our company ended up on the Internet Retailer Top 1000 Companies 3 years in a row. 

I owe all of the company success to my eventual business partner. 

Yet, hearing “You’re doing five things horribly instead of one or two things exceptionally” was brilliant business advice and changed my path. 

Being told how Horrible I was, turned out to be one of the best things that ever happened to me. 

If you find yourself struggling with your business, ask yourself the tough question: are you too diversified? 

Focus on what you are ABSOLUTELY BEST AT & GIVE IT EVERYTHING YOU’VE GOT. 

Lastly, if eCommerce is on your radar, go for it & don’t look back!! 

Wrapping It Up 

Thanks for reading this post. 

Check out these posts for additional info: 

 

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My Most Embarrassing Post: Playing “Fireman and Babysitter”

FIREMAN AND BABYSITTER, Really?!?!

First, welcome to my most embarrassing post. 

I am terribly humiliated to even share this article. 

As the story goes, 100 years ago (well not quite that long ago but it sure feels like it), I used to describe managing my business with the following description: I was a “fireman and a babysitter.” 

Actually, it was the 1990’s and I was in my early 20’s. 

My description of entrepreneurship? “Every day I was putting out fires and babysitting my employees”.

Yes, I actually said that. URGH! 

Well, guess what? I was hugely successful. At what?

Putting out all of the fires that I was creating for myself every day as well as micromanaging an amazing group of people.

I am horrified at my immaturity and arrogance that I even expressed those words, “fireman and babysitting”.

It is a true embarrassment that my management style was based on putting our fires and babysitting.

Let’s interpret what this really meant.

Related Article: “I’M DIVERSIFIED!” No, Actually You’re Doing Five Things Horribly

A Fireman? Seriously? 

Declaring myself a fireman is completely insulting and offensive to all firefighting professionals who are more courageous than I could begin to imagine.

My interpretation: 

Fireman = I have no idea what I am doing, am completely overwhelmed, cannot think past today to begin to plot out a future strategy. Let alone figure out how we are going to resolve the current firestorm in our midst.

For example:

  • Cover payroll on Thursday (and it is Tuesday night)? Who knows?
  • Dealing with customers past due by 90 days?
  • Handle an angry customer who just received the wrong product and needs it corrected NOW?
  • Handle employee issues that most likely lacked necessary training or probably should not have been hired to begin with?

Sweating the small stuff prevented facing bigger challenges. 

Especially when I was busy putting out fires that I typically created on my own. 

Related Article: Best Advice Ever from Dr. Phil: “You DON’T Want to be Successful!”

A Babysitter? Seriously?

Babysitter

Calling myself a babysitter not only insults the employees that I had the privilege of working with but also insults the millions of incredibly skilled babysitters around the country. They are also much more courageous than I could ever be.

Babysitter = I am completely insecure with myself combined with an unjustified arrogance that I need to micromanage every move of my employees.

Yet, so focused on being a HELICOPTER BOSS that I fail to allow these amazing individuals to do their jobs properly and let them do what they do best (also what they were hired to do). Combined with the fact that I was doing my own job horribly as well.

“Babysitting my employees.”

If you find yourself saying these words, it may be time to take a look in the mirror and reevaluate your approach.  

When I finally realized how immature and unprofessional my thoughts and behavior were it was finally time to get down to business.

No boss, parent, teacher, coach or instructor is perfect.

Even the most winningest coach (Ex: Bill Belichick or Nick Saban) has plenty of critics. Including their own players.

Just lose one game and find out quickly that not everyone will love you, admire you or even respect you.

As a coach or boss, every move you make is scrutinized.

You will always be called too much of something. 

Some will think you are too nice, too mean, too lenient, too calm, or too frantic. Not enough passion. Too passionate.

The goal is to build a healthy balance.

Maintaining a strong sense of urgency while never showing panic. Minimizing or even eliminating chaos.

Related Article: When a Mistake Occurs at Your Business, “It’s Never the Employee”

Herding Cats

Babysitter

Seems like the same could be said when people use the expression “herding cats”.

If a person describes managing people like herding cats, doesn’t it simply mean that this particular person has serious challenges with leadership or people skills?

Do you ever hear successful coaches describe leading their players as “herding cats”?

Well, I am ashamed and it was truly pathetic that I lead thinking these individuals needed “babysitting”.

No wonder I constantly struggled to make ends meet.

Helping employees to succeed and thrive should have been my primary focus. 

Additionally, I should have dedicated myself to creating a cause that they could proudly stand behind.

There is a fantastic book called “As a Man Thinketh” by James Allen.

The line in the book goes, “As a man thinketh, so shall he be.”

Well as I declared myself a “fireman and babysitter,” so shall I was.

Very impressive, right? Absolutely not! 

As I called myself a “fireman” and “babysitter”, that is exactly what I became.

I am sure you have some choice words to describe my poor business acumen and lack of leadership skills.

Related Article: The Definition of Entrepreneurtude: “Do Whatever It Takes”

Entrepreneurial Crisis

Phil Knight says that for entrepreneurs, “every day is a crisis.”

So the crises are going to happen. It is not a matter of if they will happen, just when and what magnitude. 

Therefore, since the fires ARE going to happen, every day, how you handle them is the key to success.

It doesn’t matter if you run a sole proprietorship or a multimillion-dollar company.

It is all relative. If you prepare and become proactive, great things occur. 

Welcome the mindset that these are not fires.

Each event is not a crisis but simply opportunities to grow. Learn. Expand your business.

Furthermore, the chance to separate you from the competition when challenges occur.

Gratitude

As a boss or leader, consume yourself in gratitude.

Give thanks for this amazing opportunity. For your entrepreneurial venture as well as the privilege to lead others. 

Embrace challenges as blessings to learn and grow. 

A mentor of mine used to share this fantastic quote: “The person who wins a marathon may not be the fastest runner but the person who can endure the most pain.

Your business is a marathon, not a sprint.

So, how do you endure the pain of the race? 

Can you prevent fires?

Strategically position the proper smoke alarms and fire extinguishers so when the smoke starts, you eagerly and tactically put out the burning flames as quickly as possible.

How do you put out a fire? Preparation, teamwork, a calm reserve, and a steady hand. 

Related Article: No Goal + No Direction = Where on Earth are We Going?

Babysitter? There Must Be a Better Way

Babysitter

So, what is a better description of entrepreneurship as opposed to declaring myself a “fireman” and “babysitter”?

Instead of a fireman, what if I declared entrepreneurship as a gift to create an organization that provides incredible products and services? Furthermore, offering powerful solutions that improve our customer’s ability to compete. 

What if I stated that instead of putting out fires we work on strategies that anticipate the challenges our customers face on a daily basis to make THEIR lives less stressful?

Instead of a babysitter, what if I declared my experience of entrepreneurship as being blessed to work with amazing and talented individuals? Where we strived to challenge each other to be the best.

Another thought: “As a team, we dedicate ourselves to building a sustainable business model that offers an entrepreneurial and competitive spirit.”

In spite of my “fireman and babysitter” mentality, our company experienced wonderful growth and success thanks to being blessed with an incredibly talented team. 

As the business owner, you are the boss by default.

The person who cuts the checks typically makes the rules.

Oversees the hiring (and firing) as well as make difficult decisions.

You provide employees with money, however, they grace you with their time. 

Money and jobs can be replaced. Time cannot. 

My humble suggestion: dedicate yourself to the success of each individual who decides to join your team. 

Inspire. Build their confidence. Make them feel on top of the world. Unstoppable.

Explore, discuss and fully understand their goals, their dreams, aligning yourselves on the path to achieving great heights.

Trust me, magic happens. 

Wrapping It Up 

Thanks for reading this post. 

For additional posts, check out these links below: 

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Best Advice Ever from Dr. Phil: “You DON’T Want to be Successful!”

This story reflects the day I received possibly the best piece of business advice imaginable from Dr. Phil. 

Yes, that Dr. Phil.  

Well, the advice wasn’t directly from Dr. Phil himself but from a second-hand source. 

Actually, an extremely unexpected source. 

Let me explain……..

Meet My Accountant 

advice

My business was severely struggling.

We were trying to make the transformation from a brick & mortar wholesale business into an eCommerce business.

It was Dec 2002 and I was at an end of year meeting with my accountant.

As usual, I was full of self-pity and doubt.

Complaining about current challenges, such as cash flow (lack of), profits (lack of) and every other problem conceivable.

I had reached a breaking point where I set myself an ultimatum.

If the business could not be turned around within the next 18 months, I was going to throw in the towel and move on to another chapter in life.

My accountant listened intently to my whining and complaining while even offering several constructive suggestions throughout the conversation.

See, my accountant is an extremely sweet woman.

In the early years of her career, she spent working at a public library.

In due time, she decided that the library route wasn’t exciting enough, so she changed paths to accounting.

At her accounting firm, she was a one-woman show with no partners and preferred working solo. No employees.

She was highly competent, thorough and honest. Just amazing! 

Starting her career in a library contributed to being an extremely meek, mild and quiet person. 

Small in stature, yet a powerful presence. 

During my whine session, she offered numerous excellent ideas to help improve my situation.

However, I was burned out and felt I had already done everything possible.

Additionally, her suggestions were viewed as sacrifices that were beneath me. 

Truth be told though, I was a train wreck at that time. 

I quickly dismissed and rejected her ideas that each would have definitely helped improved profitability.

Well, I rejected and shot down all of her suggestions arrogantly saying “no, I’m not going to do that”.

I just felt that I had already made every necessary sacrifice and didn’t deserve to add to the list.

Finally, she scoots up in her chair and she asks me an interesting question: “Do you watch Dr. Phil?”

My thoughts were “where on earth is this going?” 

Related Article: No Goal + No Direction = Where on Earth are We Going?

Advice from Dr. Phil 

Dr. Phil built his success with charm as well as a reputation for delivering blunt advice. 

He had just started his TV career when the exchange with my accountant took place.  

However, you can Google him if you are not familiar with Dr. Phil (click here).

His fame took off with appearances on the Oprah show (if you are asking right now, “who is Oprah?”, then you are way too young – lol). 

Anyway, this is where my accountant dropped the bomb on me. 

The exchange went something like this: 

Accountant: Do you ever watch Dr. Phil? 

Me: No. I have heard of Dr. Phil but I have never watched him. 

Accountant: “Well, I watch Dr. Phil every day, do you know why?”

Me: “No, why?”

Accountant: “Because he tells people what they need to hear not what they want to hear. I just offered several suggestions to help your business, improve profitability, as well as address these complaints that you just made and you rejected all of them. You know what your problem is, YOU DON’T WANT TO BE SUCCESSFUL!”

Me: Silence, speechless and stunned 

Ouch!

My immediate thought was who is she to be speaking to me like that?

Especially since I’m paying her!

I left her office a bit frazzled with my tail between my legs. 

Related Article: “I’M DIVERSIFIED!” No, Actually You’re Doing Five Things Horribly

I Finally Get It!

Approximately 48 hours later it totally hits me ( I’m very slow & it takes me a while to get a point).

I FINALLY GET IT!!

I can tell you exactly where I was when this “aha” moment hits!

My accountant was 100% correct. Her advice was spot on. 

I was sabotaging myself and depriving the business of success. 

Rejecting the advice was immature, arrogant and foolish. 

From that moment on, I went on a relentless mission to turn things around.

I worked harder than ever.

However, I focused on working smarter AND harder. 

Made terribly difficult decisions which included making serious cutbacks.

Several steps included selling only high-profit products, fired unprofitable customers, analyzed every single expense to determine what were needs versus wants.

Unfortunately, I had to let go a number of employees who had been with the company for years.

Layoffs are horribly painful. Tears flowed. 

For example, one person that had to be cut included a business partner. We were extremely close friends. His only son is my Godson.

Thankfully, he landed into a new career where he continues to thrive far greater than had he stayed.

However, at the time, that was an awful decision and a difficult transition.

My wife and I went through our budget to determine the absolute minimum we needed to get by.

I reduced my pay by 75%.

However, it’s funny how a career or business is not life or death.

If a business closes, life still goes on.

The sun will rise the next day.

We still need to eat, breathe, sleep, and function as normal.

Yet, after you have poured your heart and soul into a business, this living organization filled with relationships, memories, laughter, and tears, being forced to shed staff was terribly difficult.

At least it was for me anyway.

Related Article: The Definition of Entrepreneurtude: “Do Whatever It Takes”

Yes, Please Come Back 

Eighteen months later from the famous Dr. Phil’s speech, almost to the day, a previous employee calls.

The employee who worked at my company for ten years previous to the awful layoff. 

The one that came to work one day announcing she thought she might be pregnant. So another employee immediately goes out a buys a pregnancy test kit. Sure enough, we found out together, she was pregnant (Her son was 7 by the time I faced layoffs).

The same employee who attended every Christmas party where we laughed so hard that we could barely breathe with tears running down our cheeks.

The same one who leaned on me when she went through a very difficult divorce.

Unfortunately, I simply could not afford to keep her on staff anymore.

So she found another job.

Well, since I laid off nearly 50% of my staff, I had been working non-stop for months.

Seven days a week trying to pay off all debts and vendors so if I did close the business I would have a clean slate and owe nothing.

It was critical to walk away with the peace of mind that not a single company or creditor was owed a penny.

However, months after the layoffs, I desperately needed help. I could no longer continue working at this pace.

The business was picking up steam. 

However, the thought of hiring someone new was not appealing at all.

Especially since I had let go of a number of outstanding people just a few months prior.

Well, this previous employee called to explain that she absolutely hated her new job.

She actually called to ask if there was any way she could come back and work.

It was the Fourth of July weekend.

We were going to be insanely busy right after the holiday. 

I was ecstatic! This was too good to be true. 

The company finally needed to hire again.

Related Article: When a Mistake Occurs at Your Business, “It’s Never the Employee”

Turned the Corner 

Advice

Within a matter of months, the company had not only paid all of the debt and vendors, the bank account actually possessed a few dollars to the good.

I felt perfectly fine hiring this employee back. 

More importantly, I could afford it.

As I hung up the phone, I looked at the list of goals thumbtacked on the wall in front of my desk.

Facing me since the famous “Dr. Phil” speech from my accountant.

While taking a look at each item on the list, at that very moment it dawned on me, we made it.

We had accomplished each goal on the list.

I had been so consumed in working tirelessly to turn the business around, driving towards those goals, that it had not hit me that we were even getting close.

Yet, we made it.

We turned the corner. 

It took a tremendous team effort along with powerful advice from Dr. Phil. 

Anything is Possible

advice

 

The company eventually landed on the Internet Retailer Top 1000 eCommerce Companies 3 years in a row.

This certainly did not seem possible when the company faced painful decisions. 

Always remind yourself that it is never as bad as it seems.

Business is not life or death.

You will still wake up the next day. The sun will come up.

Yet, understanding and respecting that as an entrepreneur, you feel responsible for the livelihood of others. 

That is an admirable trait and a strong motivator. 

To reach success, you must confront the brutal facts.

Make the painfully difficult decisions.

Maintaining a healthy balance between a strong sense of urgency combined with a playful entrepreneurial spirit goes a long way.

Thankfully I listened to tough love from my accountant. 

Even though it is not easy to hear harsh criticism. 

However, taking a hard look in the mirror at your flaws and blemishes pays major dividends. 

Especially when a trusted advisor offers extremely valuable advice. 

Entrepreneurship requires incredible stamina to complete the marathon. 

Being told, “YOU DON’T WANT TO BE SUCCESSFUL!” turned out to be fantastic advice as well as a powerful source of motivation. 

 I just had no idea that Dr. Phil would be the one to help turn my business around. 

Wrapping It Up 

Thanks for reading this post. 

Hopefully, you found this helpful on your entrepreneurial journey. 

For additional articles on entrepreneurship, please click these links below: 

Finally, if you are looking for information on Manufacturing eCommerce Strategies, please click below: 

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Negotiating with Your Heart Will Most Likely Get it Broken

The topic today: negotiating with your heart. 

Hmmm…..

Is it wise to negotiate with your heart?

In particular, when it comes to selling your business. 

As a gambler it is said to never bet with your heart.

For example, you shouldn’t bet on your favorite team.

For two reasons. If they lose, you’re bummed out and depressed combined with the fact they just cost you money.  

Another scenario to avoid includes betting on your favorite color or favorite number on a roulette wheel. This is certainly not a path to riches. 

Well, the same goes for negotiating.

You should avoid negotiating with your heart.

Why?

Negotiating with your heart will most likely get it broken. 

Especially since emotions cloud good judgment.

This holds particularly true when selling your business. 

Selling your business is extremely emotional.

With building your business you’ve invested an enormous amount of blood, sweat, and tears.

Years upon years of stress as well as putting out fire after fire.

You hired countless employees dealing with various levels of drama and chaos.

Also, experienced numerous customers coming and going. Some for no fault of your own. Unfortunately, in other cases, some customers did leave due to your own accord (you can fill in the blank here). 

Regardless, with everything that you have gone through, you are now tired as well as burned out. 

You are finally ready to sell.

As a result, it is time to move on.

In my case, the day I blurted out the words, “This is how we have always done it” was the day I knew the time arrived for me to move on and sell my business. 

After selling my business, I would like to pass along a powerful piece of advice that I learned along the way:

Your business is not your baby. 

Related Article: Your Business Might be Saying it is Time to Sell YOU!

Your Business is Not Your Baby

Negotiating

One incredibly important takeaway with negotiating the sale of your business, please avoid treating it like “Your Baby”. 

For example, you LOVE your children, your significant other, your family as well as your pet. 

However, referring to your business as “Your Baby” leads to emotion. 

Emotion leads to negotiating with your heart. 

As you might recall from the title of this article, “Negotiating with Your Heart Will Most Likely Get it Broken.”

Going into negotiations with the “it’s my Baby” mindset brings a high level of emotion while negotiating. 

A critical factor to consider with negotiating the sale of your business, treat it purely as an investment. 

An asset. A precious asset at that. 

Your business most likely serves as a significant asset that you own similar to a home, 401K account as well as some other investment. 

Now selling your home certainly brings emotion. Years of memories, celebrations, birthdays, holidays, as well as much more. 

Yet, regardless of the emotion with selling your home, you still strive to maximize your investment. 

Negotiating the sale of your business purely as an investment plays a critical role in your success emotionally as well as financially. 

Except don’t take my word for it, let’s ask two hugely successful entrepreneurs. 

Related Article: The Definition of Entrepreneurtude: “Do Whatever It Takes”

GoDaddy 

First, when GoDaddy founder, Bob Parsons sold a stake in his company he described the experience as: 

 It was not a difficult thing for me. I never looked at it as giving part of my baby away, because I’m a businessman–and that was an investment. ~ Bob Parsons GoDaddy Founder 

Click here to read the full interview with Bob Parsons and Inc

Big Ass Fans 

Inc delivers another fantastic example of negotiating without emotion from Carey Smith, the founder of Big Ass Fans:

At the end of the day, though I really cared for the business, it’s not my child. You always love the people, but fans are a product. We wanted to make sure the buyer didn’t simply open the doors and tell everybody to leave. But other than that, it’s like buying a stick of gum: It’s mine until you pay me for it–and then it’s yours. ~ Big Ass Fans Founder Carey Smith

Click here to read the full interview with Carey Smith and Inc

Negotiating: It’s Not Business, It’s Personal

If you recall, the movie “The Godfather” made the line famous, “It’s not personal, it’s business”. 

Yet, isn’t leaving a decapitated horse head in someone’s bed as well as squeezing a piano string around a person’s neck extremely personal? Doesn’t seem “business-like” does it? 

This certainly seems extremely personal to me. 

Anyway, as you prepare to sell your business, exhaust all resources to focus on maximizing the sale while trying to avoid making it personal. 

Align yourself with trusted advisors to guide you through this exciting path. 

Especially those who have your back at all times. 

Professionals who walked this path many times before such as your accountant, attorney, business broker, peers, and professional acquaintances. 

I hate to say this but I would also suggest minimizing family involvement for advice or suggestions. 

Family members certainly have your best interest in mind. However, if they have never owned a business, it is difficult for them to completely relate to your situation. 

Furthermore, they view this from a personal standpoint and might not fully grasp your experience as an entrepreneur trying to fully maximize the sale of your business. 

Corporate warriors and civil servants unquestionably offer tremendous value as well as a healthy perspective. Yet, they earn a paycheck and possibly rely on a pension. Their perspective might not fall exactly on par with your entrepreneurial quest for a successful sale. 

Another critical factor with the sale of your business, you only have once chance to get right. 

There are no do-overs when you sell your business. 

Emotionally speaking, negotiating with your heart will….well… you know. 

Stay focused and determined to max out your grand finale.

You are about to complete one last great hurrah. Congrats! 

Wrapping It Up 

In conclusion, as you successfully sell your business, hold the upper hand. 

Keep your emotions in check. Maintain a level head. Focus on the end result. 

Once you cross the finish line, then let the emotions fly with exuberance and celebration. 

For additional helpful posts, please click below:

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10 Reasons Your Biggest Customer Decides to Breakup with You

The Breakup. 

Does that word bring you back to your high school years?

You know, the dreaded heartbreak. 

Generally, no one feels good after a bad breakup. 

Especially for the person who is being broken up with. 

As you know, gossip flows like wildfire with teenagers. 

“Did you hear so-and-so broke up?” “Really, who dumped who?” 

The term “breakup” is typically synonymous with heartbreak. Humiliation. Depression. 

Ahh, the days of having your heart broken for the first time. 

Well, when something is broken, it most likely needs to be fixed. 

So let’s turn the tables and discuss the term “breakup” in terms of business. 

In particular when your biggest customer finds it necessary to break up with you. 

Ouch! 

As adults do you find a customer breakup hurts any less than a teenage heartbreak? 

A customer breakup certainly has the potential to cause serious harm as well. 

For example, a customer breakup leads to financial damage, layoffs, idle equipment, and a severely bruised ego.  

An important question to consider, could this have been prevented? 

Related Article: Business Mission Statement: “BECOME THE BLANKIE“

We fall out of love “very slowly, then all at once”

 

So how do you handle a customer breakup? 

First, it is important to consider if the breakup could have been avoided.

For instance, were there honestly no warning signs?

James J. Sexton, divorce attorney and author of “If You’re in My Office, It’s Already Too Late,” says marriages don’t fall apart overnight.

Sexton claims couples fall out of love “very slowly, then all at once”.

Most likely the exact same things happen with business relationships. 

First, you meet the new customer.

It’s love at first sight. 

Next comes the puppy love stage. 

You nurture every whim and request. 

Everything is going along smoothly. 

Unfortunately, similar to many relationships and marriages, complacency sets in. 

In hindsight, odds are plenty of warning signs were ignored.

For example, suddenly a new customer comes into the picture who takes up more of your time, energy and resources. 

The “old” customer now takes a back seat. 

However, you’re not worried. The “old” customer still loves you and would “never” think of leaving. 

Oh, oh, that thought process certainly sounds like trouble.

Taking a customer for granted is certainly a dangerous place. 

However, sometimes a breakup occurs beyond your control. 

So what actually did happen?

Let’s take a look at common reasons that a customer breakup occurs. 

Related Article: “I’M DIVERSIFIED!” No, Actually You’re Doing Five Things Horribly

 10 Reasons a Customer Breakup Occurs 

breakup

1) Your biggest customer gets bought out: Unfortunately new ownership has other plans that do not include you. 

2) A new buyer arrives: You find out the hard way that the new buyer has a tight relationship with a competitor.

3) A new management team takes over: They make sweeping changes and do not view your service favorably.

4) Vulnerability reduction: The company finally realized that they represented a vast majority of your total revenues and felt uncomfortably vulnerable with you. Vulnerability certainly works both ways.

5) An aggressive competitor outbid you: On price. Service. Quality. Customer service. Maybe they were simply hungrier than you. It is difficult to admit when we have messed up. 

6) A key employee leaves you: And even worse, they take your biggest customer with them. URGH! 

7) The business or industry declines: For example, brick and mortar retail, book stores, DVD rentals are a few that come to mind.

8) Your competitor offers more efficient technology: Plenty of disruptors hit the market causing chaos. When in fact they deliver incredible efficiency. Uber, Airbnb, and Zoom come to mind. You resisted change and loved staying below or completely off the radar. Well, unfortunately, you also fell off your customer’s radar as well. 

9) Your customer went out of business: – Bankrupt. Gone. They grew complacent. Ignored drastic changes in the market. Think back to Blackberry, Blockbuster, Kodak, Sears and the list goes on. 

10) Cheap imports: Low cost labor countries are penetrating your market. Very slowly, then all at once. 

Related Article: 12 Helpful Suggestions to “Give Value First”

 Stay Hungry to Avoid the Breakup

 

Complacency kills.

So how do you avoid a bad customer breakup? 

For one thing, it is critical maintaining a “Honeymoon” mindset with each and every single customer. 

In other words, NEVER TAKE FOR A CUSTOMER FOR GRANTED.

Additionally, focus on building a diverse customer base to reduce the weakness and vulnerability of relying too heavily on one customer. 

Stay hungry and aggressive. 

Play offense. Simply due to the fact that an offense scores ALOT more touchdowns than the defense. 

Embrace new technology. 

Keep your staff highly trained as well as motivated. 

Above all, prevent a heartbreaking and painful breakup by dedicating yourself to making your customer’s life easier and their business more profitable. 

This way they will stay tied and true to you. 

Thus, creating a long-term monogamous relationship so you can both live happily ever after. 

Wrapping It Up 

Thank you for reading this post. 

For additional articles to help with your entrepreneurial journey, check out these articles below: 

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A Day in the Life of an Entrepreneur: “Every Day is a Crisis”

According to Phil Knight, co-founder of Nike, “For an entrepreneur, every day is a crisis.”

As an entrepreneur, how do you define a crisis? 

Merriam-Webster.com defines a Crisis as follows:

  1. the turning point for better or worse in an acute disease or fever
  2. a paroxysmal attack of pain, distress, or disordered function
  3. an emotionally significant event or radical change of status in a person’s life

Some days are more challenging than others as an entrepreneur.

How do you handle really bad days?

You know the type. Days where you are thinking that you should have stayed in bed.

However, this too shall pass.

With entrepreneurship, highs are wonderful and the lows seem frequently available.

As an entrepreneur, every day has the potential for challenge, disruption, and conflict. At that exact moment, you might even call it a crisis.

Let’s take a look at a day in the life of an entrepreneur.

Related Article: The Definition of Entrepreneurtude: “Do Whatever It Takes”

A Day in the Life of an Entrepreneur: Every Day is a Crisis

This client’s business is booming. Most of the staff is working overtime. Recently several temps were hired.

To put things in perspective, those newly hired temps mean the company workforce increased by 20%.

That’s the same as a company with 1000 employees hiring 200 workers over a few weeks.

Therefore, you are extremely busy. The whole company is feeling growing pains.

It’s Friday. You walk in at 6:00 AM as the day begins.

You’ve had a decent workweek. Ready to wind it down and enjoy the weekend ahead.

When in reality your “Hell Day” is just beginning.

6:30 AM – Temp Calls In Sick

You hired a temp to replace a key employee who is out recovering from surgery.

Production is busting at the seams. You need all hands on deck. Yet, one particular temp calls in sick.

You desperately needed that employee today.

The temp agency doesn’t open until 8:30 am. Your team starts at 7:00 am (the overtime crew started at 6:30 am).

By the time a temp replacement would arrive, it might be 10:00 am. Plus they need to be trained. You decided that is not a viable option. No temp. No production on that product today.

Well, if that’s the worst thing of the day, everything will be ok.

You are hoping your key employee is recovering well from her surgery. You send her positive thoughts and give thanks for your own good health.

While digesting that situation, a new challenge presents itself.

7:30 AM – First Crisis

A top customer needs a product shipped out the door that day. No problem.

Yet, it was manufactured incorrectly. At first, you think an employee produced it wrong.

The same one who was hired on permanently after serving as a temp for 90 days.

They were a rock star as a temp and did everything asked of them and did it exceptionally well. 

You have reached a point where they are now a key member of the team. So, you hire them on full time.

All of a sudden, attendance and tardiness immediately becomes an issue. Now quality issues arise with this employee.

Time is spent trying to figure out a solution to ship the product out on time. Nothing is working correctly. There are no replacement parts in stock.

The customer counts on this item for their production. They rely on you for quality and timeliness.

What to do?

After spending an hour brainstorming with a supervisor, you finally think you have a resolution.

The customer service supervisor calls the customer to see if that solution works for them.

8:30 AM – Next Crisis

While waiting to hear back on that situation, another employee walks in to say a main piece of machinery has broken down.

It’s the third time in the past two months that the machine has stopped. Production on that line has come to a halt.

While sitting there digesting the second crisis of the day, a customer calls insisting to speak with you.

8:45 AM – Bigger Crisis

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You pick up to hear a furious customer on the other end.

You produced a product for that customer. Exactly to their specifications.

Unfortunately, their engineer who engineered and ordered the item is no longer with the company.

The customer explains that their customer who they delivered this product to finds the product unworkable.

They are demanding a solution NOW. Who from your team is willing to fly across the country to fix this?

The customer’s customer is threatening them with legal action. Needless to say, they are hot. You say, “I’ll be right there”. 

9:00 AM – Meeting with Angry Customer

You leave your office to go meet with the angry customer.

Upon arrival, a couple of employees greet you and guide you to a conference room.

Discussions begin immediately to explain the situation. The conversation is cool and calm to find a quick and affordable solution.

However, that is until the president of the company storms in the room. He is furious. He is standing. Pointing. Accusing.

He points out the flaws of the product.

How on earth was this produced like this?

You respond, his engineer designed the product and the product was produced exactly to those specifications. There were actually two engineers. Unfortunately, both are no longer with the company.

Fingers are being pointed again at you. Now what?

The past is the past. So, what are our options now to resolve this crisis for your customer?

You are told we are in this together, what are you willing to do to help? You have skin in this game, how are you willing to step up?

Finally, the president calms down. Cooler heads prevail.

The president explains this customer is a corporate bully.

They have pounded them repeatedly over and over on this project.

Hammering them on flaws and deficiencies that come up after products have been installed.

They repeatedly attempt to pass along additional and unnecessary charges.

Unfortunately, the drama and accusations flow down the supply chain to you. 

The customer explains that they believe in reality it is their customer who is the problem.

Everyone now comes together as a team.

Positive options are discussed to work together for a viable solution. Everyone shakes hands and walks out.

You feel an ounce better compared to when you arrived 60 minutes earlier.

Related Article: 10 Reasons Your Biggest Customer Decides to Breakup with You

10:30 AM – Which Fire to Put Out Next?

You get back to the office. Which fire to put out next?

Your supervisor catches up with you to say they have a solution for the product produced incorrectly.

The employee actually produced it correctly. There was an error on the component from the original manufacturer.

They discovered a reasonably quick fix. You are less unhappy with the employee.

You just wish they would eliminate these attendance and tardiness issues.

Anyway, your customer service supervisor spoke with the customer.

They said everything sounds great and even offered thanks for your service and dedication.

Another crisis resolved.

11:00 AM – What’s Wrong with the Machine? 

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Next fire. Let’s tackle the piece of machinery that is down.

Two hours have slipped by since you left the office to meet your angry customer.

Everything that you had planned to work on today…well…still waits.

You and an employee shut down the machine. Make sure everything is safe. Open it up. Start diagnosing where the culprit lies.

You narrow it down to a couple of potential problem areas.

Perform a few tweaks. Nothing significant stands out though.

You were hoping for a glaring blemish that you could point to and say Aha!

Unfortunately not quite that simple here. 

After a few hours, you make some progress.

Hopefully, those tweaks may have fixed the problem. 

You start back up the machine not sure if you fixed it.

The machine needs to be turned on and run to see if it works.

However, that takes up to an hour to find out.

1:30 PM – No Lunch for You

Finally, you realize that you missed lunch since it’s now 1:30.

While waiting for the machine to start up, you decide you go start working on a fix for the angry customer.

You try your first idea. Nope. Not a good option.

You move on to the second option.

After a couple of hours, this seems to be a better fix.

Yet, it needs to sit over the weekend.

Then test it again on Monday.

Hopefully, this pleases your customer. Which in turn bails them out from the customer threatening legal action.

3:45 PM – Overtime: Machine Still Not Working

You go back to the broken machine. It seems to be working. Nope. Not quite right. 

You go back and forth for the next few hours.

Your supervisor stays overtime to help make sure the machine is fixed properly to run first thing on Monday morning.

6:30 Fixed

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FIXED! The machine is finally working correctly.

It is now just past 6:30 on Friday evening.

The entire day was lost. Nothing that you had planned originally was accomplished.

Finally, at 7:00 pm on Friday night you head home.

Oh yeah, it’s your wife’s birthday.

This is a true story from many years ago and my wonderful wife was completely understanding of me from being late on her birthday. We still had a great birthday weekend for her anyway. 

So that’s a snapshot of entrepreneurship from my perspective.

However, I wouldn’t have it any other way.

How about you?

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Wrapping It Up 

Thanks for reading this post. Hopefully, you found this helpful with your entrepreneurial journey. 

Check out these articles below for additional info: 

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