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    664: 4 Blind Spots Preventing Owners From Retaining Talent and Growing Profit

    enJanuary 12, 2024

    About this Episode

    I’ve heard it said that 96% of businesses will not see their tenth birthday.

    A study conducted by the Exit Planning Institute reveals 30% of those businesses that survive will make it through their 2nd generation.

    Of what little remains, only 12% of the very limited 2nd generation businesses will make it through the 3rd generation.

    Business is hard.  Regardless of product, regardless of industry, regardless of market, leadership, and sustainability; business is hard.

    A modern refrain among owners and leaders is that “nobody wants to work anymore”.

    Older generations look down the pathway of a younger lineage and sense a mood of apathy and lack of resolve.

    We then begin to conjecture as to why “nobody wants to work anymore” and begin unwrapping and applying the band-aids of bygone solutions that worked in the past hoping desperately for the tried-and-true to spur renewed action into the future. 

    And then they don’t.

    In a culture of significant fluctuation and innovation, it is the older generation (this author being one) that will need to confess modern blind spots and inspire adjustments in our leadership to begin mobilizing a younger into their own accountability and leadership.

    There are four blind spots in particular that paralyze a business in the posture of a hail-mary-like hope; fingers crossed that the next silver bullet is just around the corner.

    The “Purpose” Blind Spot

    Culturally, a business will pay enthusiastic lip service to the needed purpose directions of any business (written vision story, mission statement, and unique core values).  

    We host workshops to identify purpose and statistically take the beautifully captured binders that we have created and sit them on the shelves for years while lamenting that “we have no aim”.  

    A common blind spot for most business falls under a common myth,  “If we can nail the right brand then everything will be alright.”

    We confuse brand (the perception of what exists) as purpose (the reason for which a thing exists).

    For a business to have clarity, arguably the number one retainage tool for both employees and customers, it must first radically commit to writing out three elements of purpose.

    First, a clarifying vision story is a detailed snapshot of the future of the business in at least seven categories (term of the vision, family & freedom, financial, product, team, customer, and culture).

    Second, a power-packed, less than 10-word, memorizable mission statement tells the rest of us why (not how) you are headed towards the vision you articulated.

    Third, a unique set of 3 to 5 core values (not respect, integrity, excellence…those are common values) that serve as our lone filters for cordless decision-making.

    The “People” Blind Spot

    Global sports are obsessed with superstars.  If you research the organizations that are at the top tiers of any sport you will not just find the one or two superstars that garner network highlights.

    Instead, you will consistently find tens or hundreds of others who help to set the stage for the superstars to perform.

    Take away the laundry person within the sports team and even Lebron James looks silly walking out on the court in smelly, unkept clothes.

    The second blind spot says, “If we can just hire the right person, then everything will be alright.”  

    Pinning your hopes on one talent has historically led to an arrogance-fueled downfall.

    Counteracting the people's blind spot requires a system that trains every single person in the organization rather than one talent coming from the outside. 

    No one person can ever carry an organization; when it does it typically marks the beginning of the end.  History is not in favor.

    The “Process” Blind Spot

    With the millennial sunrise of the internet, an entire new world of snake-oil sales people were hatched.

    Every industry in the world is now graced with the opportunity to find new marketing specialist in their field where for just a few thousand a month you will be ushered into a hidden world of magic leads and effortless sales.

    Equally as full are the graves of those marketing ideas that never formed.

    The third blind spot that stimies opportunities for new business is the exasperated myth declaring, “If we can just find the silver bullet for marketing, then everything will be alright.”

    Marketing is not magic or aspiration.  Marketing is a process.

    Marketing only works when the process of finding new audiences and new customers is written, followed, tracked, reviewed, adjusted, and repeated…over and over and over again.

    Marketing is more about repetition than hope.

    The “Profit” Blind Spot

    Finally, we’ve been conditioned to believe that “sales solves everything.”

    Without sales, there is no fuel, but without marketing, administration, and operations there is no spine to hold the weight of sales.

    The fourth myth naively insists, “If we can just make more sales then everything will be alright.”

    Sales doesn’t equal profit; healthy systems equal profit.

    You want to find and retain talent?  You want to grow profit without having to skyrocket revenue?  

    Stop subscribing to the ultimate blind spot thinking that your product is not your product.

    Your PROCESS is your product.

    Scott Beebe is the founder of Business On Purpose (mybusinessonpurpose.com) and speaker for the AEC industry and author of the book Let Your Business Burn: Stop Putting Out Fires, Discover Purpose, and Build a Business That Matters.  Business On Purpose works with business owners to articulate purpose, people, process, and profit to liberate owners from chaos and make time for what matters most.

     

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    Four Reasons Profit First Won’t Work For You

    Four Reasons Profit First Won’t Work For You

    We stumbled across Mike Michalowicz’s Profit First methodology back in 2017 when a friend sent me a sample chapter of the book and I devoured it.  We were only a couple of years into our business coaching firm and honestly were looking for a method that would demonstrate a numerical return on the investment our clients were making in themselves by engaging with Business On Purpose.

    The premise is basic: subdivide your bank accounts.

    Instead lumping all of the money of your business into one, two, or three accounts, begin subdividing each dollar according to where that portion of the dollar is supposed to go.

    If your cost of goods sold (COGS) is 30%, then roughly 30 cents of each dollar should be funneled into a COGS account, and so on.

    After a year of subdividing our own accounts we realized the massive real and psychological value of subdividing each dollar.  

    Others started following suit and we even began tracking the weekly balance of our cash into what was a more revealing “cash flow” report than the reports we were pulling from our bookkeeping software.

    I am amazed that such a simple method is disdained by so many bourgeois.

    Experience has taught us that simple things are often the key to clarity, and in this case, retaining more profit to be used for the things that matter most.

    There are four primary reasons we have seen that rob owners of the joy of knowing where their money is going by subdividing their dollars.

    First is the barrier of our own mindset.  Whether it is the excuse of, “I’ll just do this all on a spreadsheet”, or the abdicating thought of, “it’s too much work”, our minds are the first to put up a fight against simplicity.

    Just ask yourself, “am I content and joyful around what I am doing now?”

    You might be content, but all of that effort and not much to show for it at the end of the year will leave an owner demoralized and empty.

    Subdividing resources is not a novel concept and has worked for thousands of years across thousands of cultural settings.

    Barrier number two is the bank who will be happy to add accounts for a fee.

    There are plenty of local and remote banks who would love to host your deposits seeing as that money is what allows them to make money.  

    If your bank insists on charges, then insist on another bank.

    Barrier three is a bookkeeper who is emphatic that “all of those transactions are going to take too much time and skyrocket your bookkeeping fees.”

    Most of the accounts you add are simple savings accounts that just hold money until it is time to transfer to the government for taxes or to some other account for profit draws.  Every quarter your real transactions will only increase by a few and will yield “voodoo”-like results in retained cash in the words of one of my friends who saw a twenty times cash increase in 12 months simply because he was subdividing and watching the money.

    Find a bookkeeper who is excited to get you the clarity you need around your finances and retain the profit you have always known you could.

    The finally barrier to implementing the subdivision of your bank accounts is your CPA, not all of course, but some.  Most CPA’s are tax-first professionals focused on tax returns.  There is a growing number of CPA’s who are seeing their role necessarily and beneficial evolve into advising beyond just tax returns.

    If your CPA is unwilling to side with you on “all those new accounts”, there are plenty of CPA’s who would love to get you the clarity you need around your finances and retain the profit you have always known you could.

    Remember, advisors, coaches, banks and support teams are here  to serve you, not the other way around.

    Commit to subdivide your bank accounts and begin to track the growth of your actual cash that you can then use for the generosity of your life and those you love and serve.

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    Growing A Debt-Free Business Without Expensive Software

    Growing A Debt-Free Business Without Expensive Software

    At 67 Clark had owned his contracting business for 40 years…he was proud, but tired.  The business had given him a chance to live in a good home, send his kids to good schools, and take a trip every now and then.  Of course, business didn’t grow while he was gone.

    At 67 he reached out to a business broker and asked, “how much can I sell my business for?”

    He had always been told his business could be his retirement plan.  HE was the value of the business and HE did not want to work anymore.

    How do you grow your biz without debt, without expensive software, and yet WITH hope that your business can provide for you long after you have stopped working?  

    Can you imagine a business that not only runs, but grows without you???  

    Is that even possible?

    What happens to your business if something happens to you?  

    Did you know that 80% of a biz owners net worth is locked away in their business?  

    How does an owner grow their number one asset without debt and expensive software?

    I’m going to lay out four available next steps for you to choose from in taking meaningful action to be liberated from business chaos and build your biz to run and grow without you…especially if you plan to stay!

    First, you must Write The Vision Down.  Hope is not a plan, but hope is necessary.  I hope to be a race car driver someday.  I hope to live in Istanbul for months at a time.  I hope my home increases in value.  I hope the BOP team continues to build on it’s meaningful culture.  Hope is the desire…but vision is the clarification of that hope

    Writing a vision down converts hope into existence.  Gerber says “if you don’t write it down you don’t own it”.  We say, “if you don’t write it down it doesn’t exist”.

    Write your vision down over a series of pages describing what you want for your family and freedom, your finances, your product or service, your team, your ideal client, and your culture.

    The second tool for growing your business without debt or expensive software is committing to a simple life of spreadsheets.

    I got a t-shirt made that says spreadsheets change lives!

    What Project Management software is the best?  Whichever one you will use.

    Don’t try to drive a Stock Car before you’ve driven a Civic.  Prove to yourself you will use the digital tools by using the free versions first. 

    Start any new tracking initiative on a spreadsheet…prove yourself, THEN you can sign up for the big boy stuff.

    The third ingredient owners use to grow their biz without debt or expensive software is a culture calendar.

    Culture is a science term, not a biz term.  Culture is not something that happens to you but it is something that you proactively build.

    You must create and invite people into a culture of RPM’s (repetition, predictability, and meaning).  What a young generation does not want is a business or process that is glitchy, confused or bottled in your head.

    What do they want?  Clarity!

    Stop Wasting time recreating the wheel.  Start building a culture where people wake up and want to do hard things

    You will need a tool that build the RPM’s of great culture: repetition, predictability, and meaning 

    Take a simple spreadsheet and add the weeks of the year along the horizontal bar at the top while adding all of the cultural ingredients you wish to install along the left hand vertical side.

    Review this culture calendar in your weekly team meeting and implement.  The team will begin to run and grow the business with or without you

    The final tool to help you grow your business without debt or expensive software?

    Subdivide your bank accounts and stop binge-drinking borrowed money! 

    Money leaks the fewer bank accounts we have.  If we have 1, 2, or 3 accounts then it looks like we have a lot more money than we actually do

    A $1 receivable drops down to pennies when we begin removing the cost of doing business. For every dollar of receivable you may realistically only be keep 2 to 4 pennies in CASH!

    I’m not talking about your Net Income or P&L statement…that’s what the government and your CPA look at.  We look at the cash you have in the bank.  Nobody EVER has been able to withdrawal money from the bank using a P&L!

    Of course those tools are important, and so is subdividing your cash.

    Mike Michalowicz’s book Profit First is the definitive resource on this simple tool.

    First, subdivide your bank accounts into at least 6 accounts.  Then set percentages on each of those accounts.  When receivables come in, subdivide the dollar up and put it in each home.

    Don’t overthink this…don’t make excuses…you know what your doing now is not working.  Money is creeping in the front door and flying out the back door.

    Once you have subdivided, now you can begin tracking your actual cahs every single week and limit your need to borrow money.  This is real-life cash flow, not some static report that you pull when you are in trouble.

    It’s time to seeing where your money is sneaking

    Sales are not your problem. 

    Marketing is not your problem.

    Your process is your problem that free spreadsheets and subdivided bank accounts can empower you to solve.

    Today, that 67 year old Clark is now 75 and he rarely leaves his house…he coughs all day.  He always said, “when I retire, THEN I’ll…”  

    This wasn’t what he had planned…and his story can act as a catalyst for you to do something different.  

    To live NOW…enjoy your business now…enjoy your life NOW…stop allowing chaos to determine your life.

    Write your vision down, commit to a life of spreadsheets first, implement the culture you see, and subdivide your bank accounts.  

    My new audiobook walks through these in details.  Go search Let Your Business Burn: Stop Putting Out Fires, Discover Purpose, and Build a Business That Matters.

    Tuesday Tools On Purpose 22: Storytelling

    Tuesday Tools On Purpose 22: Storytelling

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    How To Delegate Smartly: Break The Doing Habit

    How To Delegate Smartly: Break The Doing Habit

    The Doing Mind vs. The Thinking, Solving, Equipping, Delegating (TSED) Mind

    We recently had some heroic clients in discussing their transition from the first mountain into the second mountain.  All clients coming into the Business On Purpose coaching experience begin at Basecamp where they are equipped and installed with the base-level tools to begin operating their business on purpose.

    These tools systematize four primary areas of priority; purpose, people, process, and profit.

    At basecamp, imagine each person is getting fitted with the appropriate business harness and then we begin outfitting them with the tools of a written vision story, master process roadmap, subdivided bank accounts and dashboards, and about 23 other tools that are often either missing, or in partial form.

    Upon being outfitted and equipped at basecamp, we begin climbing the business owner's first mountain where each of these tools both for the owners and key leaders are implemented and tested.  

    After proving to themselves the utility of these tools and enduring a few slips and falls, the owner and key leaders then begin to set their minds on the second mountain.  While it takes a few years to become equipped and acclimated; owners on the second mountain climb realize that the equipment and testing they received were necessary for the second mountain climb, and yet no amount of training could prepare them for the mindset shift needed to make the important move from the “doer” to the “thinker/solver”.

    While in this recent meeting, I was physically watching our clients wrestle in their minds with the death of their “doer” mind and the awkward adolescent growth of their “thinking and solving” mind.

    A phrase we remind our heroic owners often is, “You must move from task-leadership to people-leadership.”

    And remember, tasks never talk back.  Tasks don’t project emotion.  Tasks move when you want them to move, and don’t move when you let them sit.  

    People are very different.  

    As we worked through this death and new life scenario we stumbled upon a paradox; the doing loop vs. the thinking/solving/equipping/delegating (TSED) loop.

    Here is how it works.

    For those caught in the doing loop, more doing will always be their answer to challenges that should require thinking/solving/equipping/delegating (TSED) instead.

    The doing then cascades into a death spiral of sorts.

    Doing then leads to working too long.

    Working too long leads to burnout.

    Burnout leads to frustration and perpetual negativity.

    The negativity is eased briefly due to an increase in short-term income (because the doing produces more immediate response).

    The irritation and money then responds with consumption; consuming food, stuff, or anything that will numb the pain of more doing.

    The consumption leads to emptiness which breeds bitterness.

    The bitterness will spur one of two responses: more doing (leading to more spiraling) or opting out of the business altogether and doing something else.

    The doing loop is endless until it is broken either by brokenness, or broken through a willful desire to begin thinking/solving/equipping/delegating.

    When an owner decides to forego the easy solution of “just doing it myself” and instead leans into the thinking/solving/equipping/delegating (TSED) loop, then will then break the cycle and find joy. 

    How?

    Think about a small fire that is burning in your business right now.  Just one.  You could go put that fire out yourself right now.  You get the joy of feeling like a micro-superhero if only for a moment and the problem is solved…for now.

    The downside is that you have likely left your team feeling inadequate and certainly ill-equipped to handle the problem in the future which means you have signed yourself up for a lifetime of doing.  

    Or make a different choice.

    The TSED model works like this.

    Fire starts burning and instead of you rushing in with all of your gear to put it out, you stop.

    You see the problem which invites you to think about a solution.  

    Once you have documented or recorded the solution, you then equip another person to permanently extinguish that fire every time it flares up in the future.  

    The delegation comes when you actually prepare the training, trust the other person to execute on the training, and then have a set follow-up to get a report back on progress. 

    You have now shown dignity, humanity, and leadership to another person while saving yourself hours of time and frustration; both of which cannot be reversed.  Once time is lost, it is not recaptured.  Once frustration is vented, it is out.

    Think.  Solve.  Equip.  Delegate.

    We don’t need you to be our superhero; you don’t need to shoulder that additional weight.  We need you to make time to think, solve, equip, and delegate.

    By walking through the TSED loop you create efficiency and empowerment.

    The efficiency and empowerment create margin.

    The margin creates a profit of time, money, and connection which snowballs into generosity.

    Today, you can make a choice to put on the cape of doing, or you can stay in the firehouse and make time to think, solve, equip, and delegate.  One leads to a death spiral of frustration, the other leads to joy and generosity, that becomes a work worth doing and liberates you from chaos to make time for what matters most.  

    If you are ready to get started on the foundational basecamp equipment go to mybusinessonpurpose.com/book and grab copies of my print book, ebook, or audiobook Let Your Business Burn: Stop Putting Out Fires, Discover Purpose, and Build a Business That Matters.

     

    Tuesday Tools On Purpose 20: Canva Pro

    Tuesday Tools On Purpose 20: Canva Pro

    Join Patrice Miles, BOP Business Coach, and Sara Gatewood, Covenant Realty as they unravel the power of Canva Pro on the latest episode of Tuesday Tools On Purpose at My Business On Purpose Podcast.

    Discover how Sara leverages Canva Pro to revolutionize her real estate endeavors, unravel the strategic insights for small business owners to harness the full potential of this tool, and gain actionable tips for creating visually compelling content that resonates with your audience.

    Are you working IN your business or ON your business? Do you have all of the foundational elements that will liberate you from the business chaos? Take the assessment to find out which areas you can grow and improve on.
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    LISTEN to the Business On Purpose Podcast HERE ➡️ https://podcasts.apple.com/us/podcast/my-business-on-purpose/id969222210

    SUBSCRIBE to our YouTube channel HERE ➡️ https://www.youtube.com/channel/UCbPR8lTHY0ay4c0iqncOztg?sub_confirmation=1

    669: How To Delegate Anything And Make Time For What Matters

    669: How To Delegate Anything And Make Time For What Matters

    The influential Andrew Carnegie said, "No person will make a great business who wants to do it all himself or get all the credit."

    We just cannot seem to help ourselves.  We feel like we have to do it all.

    Whether it is a function of a lack of support around us (which is usually our fault for not recruiting well) or an unhealthy sized superhero ego (which is always our fault)...delegation has been a challenge literally since the beginning of time.

    Great news though about delegation, when it is done right, it will change the game for you.

    John Maxwell said it clearly, “If you want to do a few small things right, do them yourself. If you want to do great things and make a big impact, learn to delegate.”

    Let’s start with what delegation is, and what it is not.

    Delegation is…
    A Transfer of authority
    Craig Groeschel said “When you delegate tasks, you create followers. When you delegate authority, you create leaders.” 
    You’ve heard it before, everything rises and falls on leadership.  The height of your leadership determines the height of your team’s leadership.  When you transfer authority, you empower someone else to execute and achieve the results.

    Delegation is…
    A powerful method of growth and margin
    I recently read about some of the world’s remarkable leaders like Mark Cuban, Bill Gates, Oprah Winfrey, and some of the habits they carry.  Many of them read books for hours at a time.  HOW?  They have delegated.  They realize that the growth of their team and organization are dependent on their own growth so they delegate to build margin for more growth.  It is a growth snowball!
    Delegation…
    Creates a more stable product and process
    When you try to do all things every time, they are going to be done with varying levels of commitment and quality.
    When you delegate one thing to someone, it will have a greater level of integrity and quality because they focus on that thing while you can turn your entire attention to the highest and best use of your time.

    Delegation is not…
    Transferring your responsibility
    Jocko Wilink’s powerful book “Extreme Ownership” is a punch-you-in-the-mouth reminder that even though delegation pushes down; leadership, authority, and ownership pushes up.  This is why training is so crucial and why it cannot be the first thing to go when times get tough.  Training empowers delegation which empowers quality and efficiency which then empowers serious competitive advantage and growth.
    A lack of training empowers frustration and spirals in a decline to the wheels falling off an organization

    Delegation is not…
     An Abdication of tasks
    Healthy delegation lays out a clear role, step-by-step training, and ongoing accountability and coaching
    Unhealthy abdication simply says, “Here go do this” and then moves on without repetitive, predictable, and meaningful training
    Abdication is evidence of our own self-centeredness whereas delegation serves others

    Delegation is not…
    Micro-Managing
    It’s easy to micro-manage; simply ask the wrong questions at wrong times
    Delegation embraces repetitive, predictable, and meaningful questions at predictable times to the right people who have been repetitiously equipped with the predictable tools

    But how?

    First thing to do is to write down EVERY SINGLE TASK THAT YOU DO IN YOUR BUSINESS on a spreadsheet.  I mean everything!  

    If you answer phones, write it down.  If you respond to social media messages, write it down.  If you take out the trash, clean the windows, go on sales calls, sit through industry meetings, bid, estimate, job cost, or order materials...whatever you do, write it down.

    Small tasks, big tasks, write it down.

    Once you’ve exhausted everything you can think about, then it is time to prioritize those tasks and understand exactly what they are worth and how “delegatable” they are.

    The first column after the task could potentially be the most telling.  

    Your time.

    Time is the most valuable commodity that you have.  You cannot create more.  You cannot buy more.  You can not recapture what is lost.  

    Next to each task write down the average amount of minutes it takes you to complete this task each week.

    Next is to rank your “energy” with these tasks.

    There are one of three possibilities to indicate when filling out this column that can be done by answering a simple question.  

     Does this task give me energy, suck me dry, or it is so-so?”

    If that task gives you energy when you have completed it, type in the word UP 

    If the task sucks the life out of you and you leave more drained than when you started, then type in the word DOWN.

    If the tasks leaves you thinking, “That’s ok...it’s no big deal” then mark it with a NEUTRAL.

    There you go...UP, DOWN, or NEUTRAL

    Does it give you energy or does it not?

    The third column is to rank the type of task this is.  If this is something that ONLY YOU CAN DO, and nobody else could ever possibly do this, then you write a “1”.  There should not be many of those by the way.

    If this is a task that you did not think could be delegated, but the more you think about it, you think, “Well, maybe so”, then write a “2”.

    If this is a task that you know you can delegate, you should have done it a while ago, but you just haven’t, then write a “3”.

    You should have WAY more 2’s and 3’s than you do 1’s.  If you have a lot of 1s, you need to re-evaluate how important you see yourself in the business...that is not healthy long term.  Remember, great leaders cannot go to higher levels without great people.

    A list of 1’s may reveal the desire to meddle.

    Time for the big reveal.  Once ranked, go pick all of your tasks with a “2” or “3” and “Down” written next to it… especially those that take a lot of time.  Once identified, ask these four questions…

    Who will you delegate it to? (separate slide)
    How will you train that person? (separate slide)
    How will you track regular progress? (separate slide)
    When will you get started? (separate slide)

    The final missing piece to a simple and powerful training process for you and your team is IMPLEMENTATION.

    I will take a half-baked plan with full implementation versus a perfect plan with half-baked implementation.

    I quote Joe Calloway all of the time because it is so powerful, “Vision without IMPLEMENTATION is hallucination”.

    If you meet with your team on a regular basis to review what you have delegated, while also delegating new tasks, it will work.  If you do not share meet, it will not work.

    Start delegating and stop belly-aching.

     

     

    668: Three Ways Contractors are putting their business at risk

    668: Three Ways Contractors are putting their business at risk

    I’m getting to a point in my coaching career where it can feel like I’m on a carousel. I meet heroic business owners all the time and it can feel like Groundhog Day, which was conveniently last week, as I hear some of the mistakes they are making. Many of them ask, “Thomas where are we at risk?”

    I figured if I’m having that conversation with several business owners each week, so why not have it with all of you?

    So thanks so much for joining today, it’s Thomas Joyner with Business on Purpose here ready to dive in on the 3 Ways contractors are putting their business at risk.

    No, I’m not talking about dodging taxes or having poor quality, or failing to build team culture. Although those are important, I want to spend some time on the ones I see most frequently putting businesses at risk across the country.

    The first one I want to talk about is this…not knowing how expenses affect your bottom line. I’ve talked about this in the past, but it rears its head all over the place, and here are a few areas I see it. 

    Firstly, hiring. We look at industry standard instead of what the business can afford. It feels too intimidating to actually build out a Pro Forma and identify what happens to our cash flow when we hire, so we come up with a random number that is in no way based on our business's performance and we decide that we will just have to do more work. How much work? We have no clue, but we’ll know it when we see it. If other businesses can afford to pay it, then surely we can too! Sound familiar? 

    Other areas I see it are in debt payments. We buy a truck or skid steer or scissor lift and don’t think through the ramifications of long-term debt payment. Or on the flip side, we need it for a few jobs and we go out and buy one instead of just renting it on the 3 jobs we need it and it really affects our cash position long term.

    This is KILLING businesses every single day. We don’t forecast out our revenue and expenses in any kind of meaningful way, so we have to fly blind and we end up killing our potential profit downstream. 

    So, what to do about that? Build out a reliable forecast with projected revenue, cost of goods, payroll, nonpayroll expenses, and any other random expenses that will pop up like insurance, tax payments…etc.

    Build a running tally of projected Net Income and then use those numbers to tweak when adding expenses like hires or equipment purchases. Can you hit your numbers with the new expenses? If not, what does revenue need to be to hit those numbers? Is that realistic? It’s a game you have to play where every decision has a reaction. But you, the business owner, need to be on top of it.

    The second way I see businesses at risk is not giving and writing down crystal clear job roles for their team.

    It’s the area I see things get dropped more than any other. We have 4 people who have overlapping job roles and no understanding of where their responsibilities start and stop. So you, then, end up with 4 people doing things slightly different, or human nature takes over and they let the one person who truly cares handle the most important parts. That person then gets burned out as the weight of the business falls on their shoulders and they leave. 

    This sound familiar? Absolutely it does! We expect people to know, mainly because we just wish they would take the initiative to figure it out for themselves, we expect people to know what we want them to do! And yet, it rarely works out for the better.

    We have to build out an Organizational Chart that maps out responsibilities. And maybe it’s a great time for you to rebuild job roles to refine your operations instead of lean on the way you have always done it. Maybe it’s time to get in a mastermind group or ask a coach to walk alongside you and point out things you don’t see because you’re stuck in a rut!

    Once you have the team mapped out, you may need to build a flow chart from Awareness of your business to closed sale and then see what are all of the tasks that need assigning. It takes time, but imagine how much clarity, authority, and purpose it would give your team to know exactly what it will be held responsible for and to be able to compensate on value to the business. Oh, it would be freeing for the whole team!

    Lastly, I see businesses at risk in the way they don’t clearly articulate what will get them to their long-term vision. This may sound complex, but it’s not intended to be so. I see businesses chase after deals or projects that they have no reason to chase after because they don’t have a clearly identified plan to get to their vision. So they add a massive remodel or a new development, or maybe a completely out-of-the-blue maintenance division just to grow revenue. 

    It’s opportunity-driven, not vision-driven. Months down the road, the lead source dries up or they quickly realize it’s not as profitable as they hoped and they are left backtracking to get back to who they were in the first place.

    It’s why we spend so much time on Vision story. We want a bulletproof plan that will lead your business where you want rather than just chasing after any shiny object opportunity that happens to catch your attention and happens to offer the promise of profit.

    There’s so much to think through here, but if you can get laser-focused on what you want to offer from a product and service standpoint, and then stay locked in with that, you stand a much better chance at reaching your vision than allowing every distraction that passes by to knock you off course.

    I see it every week in the coaching world.

    Alright so let’s recap, write these down, and make sure you aren’t suffering from 1 or all of them.

    Number 1, not knowing how expenses affect your bottom line, Number 2 not giving and writing down crystal clear job roles for their team and number 3, they don’t clearly articulate what will get them to their long-term vision

    Think through those and please, let us know if we can walk alongside you in those. You are not alone! And you’re not silly or ineffective as a leader for failing at any one of them! They are tricky and they take work to navigate around and through them. 

    But the way they set your team up for success when you can effectively manage them, that’s running a business you can be proud of.

    Hope you have a great day!