22. January 2010 by The Original Bulldog - Bob Griffin.

Draw three circles - one around the next.  This is all the business model you need to create a dynamic growing business in this depressed economic environment.

Three circle?!?  Yes, three circles.  The diagram should look like a target.  Once you understand this model, you will never be lost in what to do next.

Inside the first inner-most circle write the word “Leadership”.  We always start with leadership.  Getting to the core of the brand starts with looking at the face of person or people who are leading the organization.  As you know by our rules, either you are the right person to be in the inner-most circle leading the charge or you are not.  It is not about ego or power, but about having the most effective person in charge of the operations.  There are too many businesses that fail because they have the wrong person in charge.  How many of the businesses in your area have closed because of poor leadership?  Most, if not all.

The next circle is the team.  Write “Team” in the circle that goes around the leadership.  It is amazing that so many people are lost when it comes to hiring and training the right people.  Is it fear or something else?  We have seen clearly that most people are not trained in how to hire well or train someone to do a job effectively.  As Noel Guilford wrote in the last article, “Hatch an Egg - Build a Leader”, you want to create your own team of leaders to grow your business.  Hiring in someone who is well suited to the job means that they are capable of doing the job.  However, they may not do things your way.  After all, they were trained to do things at another company. Are you willing AND able to hire someone who is capable and spend the time and energy to train them into the employee you need and a leader in their field?  The questions to start with are “What is the nature of the job I am hiring for?” and “Is this the right person to train into being the best employee for that position?”.  You will be burned by hiring and spending time training someone.  That is the nature of business.  Get over that and keep working.  You would not let your competition tell you how to be successful, so why would you allow a bad hire limit you?

The outer-most circle is local store marketing.  Write “Local Store Marketing” in this circle.  The first two circles are focused inside your business.  They are the core of the business.  Can a business grow with just the right leadership and the right team?  Yes.  It is the foundation for all great businesses.  Without the first two circles, you have no business at all.  The local store marketing circle is the relationship you want to have with your customers.  It is the public relations, the couponing, and the message you want to send to people in the area you want to spend money with you.  Failure in this circle does not necessarily mean that your business will fail.  It does mean that you are limited to word of mouth advertising. This can also include bad reviews or anything anyone wants to mention about you.  Get the inside of your store operating well and then get out and brag about it.  Be known for something great.  Shameless promotion for the sake of yelling about your store is the worst kind of marketing.  GO for something that people will think of when they think of your business or your industry.

Three circles are simple and encompass the entire method of controlling a business.   I have always been able to help a business grow when we break the effort down to these three parts.  You will jump back and forth as things change - and things will most definitely change.  Change is the only constant thing you can count on in life.  Reexamine your leadership often.  Look at the goals you set for your team and make sure everyone is on board to reach them.  Do the right kind of local store marketing.  All of these things are the parts of your business that you can handle.  You can not change the economy or your competition.  You can handle your business as a professional. 

Draw three circles and start growing your business now.

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7. January 2010 by The Original Bulldog - Bob Griffin.

There are two types of owners that need to grow their view of the business they own.  One type of owner spends a lot of time on numbers.  They see the trends and how the customers respond to the marketing or employee efforts.  The “Number Cruncher” is a good master of his domain.  He is up to date on what has happened in his business and what works.  He can plan and explain his business in terms of dollars and cents.  Why is this not a big enough view?  He is good with changing to a new plan.  He can see what works and plan, but moving to a new plan is outside his view.  Limits like this are part of an old way of doing business.  I grew up in this format.  I am happy to look through these eyes.  I also know that if I want to make stores successful I need to look bigger and make changes quickly to stay ahead of the competition and fire up my team.  Numbers tell no lies, but they also do not inspire growth.  People do.

The second type of owner is the marketing guy.  He can tell you what works and why.  Coupons, discounts, and media buys are part of his lexicon.  There is no way he is going to let a customer get away without knowing what his business is all about.  Branding is a key to his success.  Finding new ways to communicate to customers is his passion.  This guy is his own best marketing…just ask him.  Why doesn’t this work well.  If you are focused on marketing outside your business, you may the operations  and the reason customers come back.  Ever watch a commercial, try out a new business and then never go back? Why?  The hype did not match the service, the products, or a combination of both.  Marketing is critical, yes critical, to every business.  It just can not be the beginning and the end of the game. Save marketing until you have something to brag about.  Then yell it!

Look at the whole picture.  Crunch numbers to see what works best.  Take the best parts of a campaign, product, or service and build your store around it.  The best businesses ask more questions than make statements.  Every question or answer should bring more questions or answers.  Look bigger.  Dream about where your business can grow.  Do not EVER be comfortable.  Comfort is good for a blanket, but bad for a business model.  Be ready to change.  Look inside your business first to ensure that when you go out and invite customers in you are ready to make them say “WOW”.

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2. January 2010 by The Original Bulldog - Bob Griffin.

When we talk with owners, there is a need for them to ask certain questions immediately that always makes me think they may or may not be ready for the next step in the evolution of their business.  The issues are money and time.  If you want to have a strong business, you need to spend either more money or more time or both.  If you are not ready to do so, please find the time and money and then find the help in getting started right.

Business owners have a desire to fulfill a vision for what the business should look like and sometimes miss the basics of how the business should run.  I do not blame them for that fact.  If you start a business from scratch, even a franchise, requires that you are a real estate expert, contractor (or at least oversee the contractor), and the middleman between the business and the government agencies that require that you have permits and fees paid before you are allowed to make any money.  Transitioning to from that to handling the day-to-day operations can be a dilemma when the store opens.  At this point, they either invested well enough to hit the ground running or they stumble out of the gate.  You spend a lot of money and time getting things rolling.  The last thing you want to think about is how much more time and money it will cost to get the business open and keep it open, but that is where your thinking should be.

More often than not, owners stumble on day one.  The problem starts with having the basic operations knowledge and then translating it to a function of getting the job done by leading the team and communicating the vision.  Working in an industry for more than a year is a sure fire way to learn from the ground up.  This gives you a chance to work as a leader, find the answers on how things should work, and how to communicate effectively to employees.  Most entrepreneurs do not spend that kind of time or want to make that kind of sacrifice.  It is the difference between being in business in five years or dying out your first few months.

One problem that I see very often is - Ego.  When someone wants to start a business they say it is for the money.  That, unfortunately, is only half the reason.  The other reason is that it is something that will give them the ability to tell friends and family that they are a business owner.  Most people you see each day do not own a business.  They are happy to work for someone else, but do give credit to others who jump over to being an owner.  Ego gets in the way because the owner wants to be the owner more than the operator of a business that may require them to be on the front line.   Do not think you can delegate to a successful business.  Bulldog Rule # 14 - The right people never want to work with the wrong people - hits the nail on the head.  Make sure you are the right person to lead…not yell at people and be angry or make the place a “work-hell”.  Otherwise, you will spend more money to hire the right person to lead.

I have been enjoying reading for the millionth time The E-Myth Revisited by  Michael E. Gerber.  He makes many valid points on hiring people who can be trained and can follow your lead.  This requires that you have a training program for them to follow and are able to lead someone through training to be the best employee for the job. You can’t have a big ego and lead employee through training (no one would follow).  Creating a great training program removes you as the main focus of the business and makes the system most important.  I was also reading What the Dog Saw by Malcolm Gladwell where he made this point.  He interviewed Ron Popeil, the founder of Ronco and the Inventor of many products you probably have in your kitchen.  I was impressed with the way  Ron took the interest off himself and made the product the star.  Coming from a family of salesmen, that was always the formula, but for someone without that kind of knowledge and with an ego going into business, it is easy to see where a person can slip up and make the product or service second to the messenger.  Lose the ego and make the system follow the sale.  You may want to take a vacation.  If the emphasis is on you and your ego, what happens when you are not there?

Great leading through training requires a few items:

• Each job has a cost and an outcome.  List the parts of the job and the desired outcome.  Be prepared to change the training and the costs as your business grows.  There is never just one way to do a job and costs change over time.
  
• Be a coach, a mentor, and a teacher that someone would want to learn from.  This implies that you can lead through teaching.  If you can’t or are not very good, find someone who can.  Yes, this costs more money, but it will save you from wasting time and money in the long run.
• Invest money and time early in the game to make more later.  When you spend, spend wisely.  Getting the ship headed in the right direction from day one is the best way to jump ahead of the competition and find better people who want to work with you.
• Fire yourself if you need to.  Being an owner does not mean that you need to be the leader of the organization.  Set the tone, set the budget, keep up with the data, and get the heck out of the way.

There are great ways to make a great business and they all come back to spending your time and money in ways that make you more down the road.  Be prepared to keep spending time and money on training, firing/hiring, better information, and better processes.  The investing does not stop when you start making a great paycheck.

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17. October 2009 by The Original Bulldog - Bob Griffin.

I had the opportunity to work with Chris Hanks, Director - Terry College of Business - University of Georgia, this past week.  Chris has created one of the best Entrepreneur Programs in the country and is working to develop the best new minds in the business world.  I was blown away by the ideas, the concepts for business models, and the services that were being brought to life and could see in the eyes of the students the desire to make millions of dollars.

For this event I was a judge for an elevator pitch competition for the MBA candidates.  It was eerie to be back in the hallowed halls I once wandered myself as a student.  I didn’t mind being older, but there was a sense of “what would I have become if I had the knowledge then that I have now”.  I could see myself up at the front of the class as a student and I cringed knowing what they needed to know.  For all the great ideas that were tumbled out before us in 60 second speeches, there was an element that was missed.

I come from a background of sales and retail.  That’s my bias.  It comes from that place where the customer and the deal meet.  I understand that there is a critical point where things are changing and in the end I am going to have to change my views.  The internet, networking pathways, viral marketing, and emerging future trends are all moving the dynamics of business beyond the brick and mortar stores we see today.  With that said, I can easily see that almost all of the businesses pitched are missing the direct communication of the product or service to the customer.

Before I start getting emails telling me all about elevator pitches and what they mean, I had the chance to ask questions after the pitch to clarify the statements and get a better idea of what the students were asking vendor capitalists to invest in.  Take it easy readers.  I wouldn’t make a leap from a 60 second pitch to a full blown critique of a business.

I was struck by the lack of any business having a store front and how that simple change in strategy is a clear indication of where the next generation of business owners is going to move.  This is not to say that some of the groups didn’t need the traditional businesses to sell to.  In fact, their products and services were dependent on having the traditional business owner buy from them or have them sell the products on store shelves.  There was, however, no one willing to have a retail shop of their own.

I have pushed and pulled this through the filters of my brain for days.  Do we need stores in the community to sell things?  Is it possible to have businesses totally free from rented spaces and still grow?  Will the human need for face-to-face contact be eliminated?  If you spend enough time on anything, there begins to be a fuzzy logic that can make the ridiculous seem correct.  I got a bit overwhelmed and decided to go eat.

I went to dinner at a Japanese restaurant.  The food was good, the presentation was pleasing, and I was satisfied when I was done and paid the bill.  In this example, someone had to make and sell the plate I ate from, the chair I sat on, and the glass I drank from.  What I saw at the University of Georgia was similar to all the businesses that made this restaurant work.  Without the restaurant running well, there is a lot of other businesses that go under.

Where is the desire of the students to be on the front line and see the customers?  Have things become so disconnected that we are creating new ways to avoid each other?   This is the same question that has been bounced around since the phone was invented.

The true problem is easy to see if you look at your hand.  I was speaking to a group of franchisees a few days ago.  I held up my hand, spread my fingers and a told them to look at the distance between my thumb and my little finger.  There is a gap between each finger leading all the way from thumb to pinky.  The thumb represented them as the franchisee.  The next finger was their General Manager.  The next finger was the Manager, then the front line employee, and then the pinky was the customer.  The gap between them and the customer, although not far, was far enough for any message they wanted to get across to be muddled and confused.

You can have the owner and the General Manager be on the same page and the rest of the people pulled away.  This is a weak link if all you are doing is touching the thumb to the first finger.  You could add the Manager and the crew, but you are still weak.  It isn’t until you have a clear message from all parts of the sales process that you have strength.  Put all the fingers together and you have a fist.

How can you have a strong business model if you are not a part of the sale to the customer?  How many businesses fail, not because they did something wrong, but because they were dependent on someone else selling their stuff?  Can you change the businesses of all these students and have a model that helps the retail outlets sell merchandise?  Yes.  Can you have the businesses open retail outlets to sell directly to customers and take the message directly to the customer?  Yes.

What I see is that there is a focus for new businesses on not having to be bothered by the general public.  That is where the next business is going to succeed.

Closing the gap is where the next billionaire will be made.

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19. July 2009 by The Original Bulldog - Bob Griffin.

I have gone many rounds with franchisees, small business owners, and fellow employees on this one question.  If you think everyone is a potential customer, you may be right.  You also may be wasting time, money, and energy in the pursuit of everyone and get no one.

The funny thing is most people don’t think about who a customer really is and then act on it.

Is a customer someone who thinks about your business when they have a need to fill? No!  Just thinking about your business is nice, but not very profitable. They aren’t anywhere near your business to spend money and you have no way to sell more to someone just thinking about your services (although technology is advancing daily).  This is point where you can get good word-of-mouth advertising - as long as the words they are saying make someone want to visit your business.

Is a customer someone who enters your store?  Nope, sorry. That is still a POTENTIAL customer and can just as easily walk right back out. To that point, are you sure you really know how many people walk in and do not buy anything? You always hope you do, but there can be a number of customers who are ignored, seen but not talked to, or even talked to with the useless phrase, “Can I help you with something?” In any case, this is not a customer.

How about when a customer pays for a product or service? We are getting closer, but this is still not a customer. How can that be? Many people just visit a location to “check it out” and see if the service and the products are good. But, they may be shopping around for a store to buy from and not be a customer yet. Buying from a business once just makes you a spy. They come in, look around, take a mental note of the quality of the operation and then leave. This person can not be considered a customer.

Since the readers of Business Bulldog are above average, I can now confirm what you are already thinking.  A customer is a person who spends money with you repeatedly.  This also implies that you must keep the customer coming back.  I asked a manager recently, “If a celebrity were to walk into your establishment how would you treat him or her?”  The answer was that she would so everything imaginable to make it an amazing experience.  I then asked who a regular customer is and how do you treat him or her?  The reaction I got was decidedly different.  Many people say, “Why spend money on people who are already going to come in?” The answer is clear when you consider that they may not come in if you do not treat them well.  Also, think about the money they spend trying out your competition. 

A customer is only a customer when they come back.  Treat them well, give them reasons to come back, go beyond their expectations, and ask them to come back often. You may only have one chance at a good first impression, but you have many more chances to lose a customer because you have not defined what a customer is.

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