You know almost every big business started small, in fact many of them part time from home.

And yet, so many small companies fail to ever become more than a job and a wage for the owner. They fail to become true businesses and remain forever a BUSY-ness for the owner.

And to be blunt, there’s a reason most never grow.  You see there’s a reason your first business is the hardest one.  It’s because you have so much to learn.  Not only do you have to run the company, grow it and finance it, you have to learn as you go.  It’s a great challenge, one of the greatest.

But, let’s be honest, if it were easy, everyone would do it.  The challenge is only up to those of us with true entrepreneurial spirit …

So, let’s examine how to take any small business and make it big …

Here’s my true definition of a business, a “Commercial, Profitable, Enterprise that Works, Without Me …”

That’s right, the whole aim of the game is to get it to a stage where it works, so you don’t have to.

Here’s how you need to break down the definition …

Step 1 … A Commercial Enterprise … here’s where you get the basics right.  It’s vital to build a big company that you have the ability to deliver your products and services with high quality, great service and consistent productivity of your people.  Three main areas you need to work on … money, delivery and productivity.   Money is all about knowing your numbers and knowing you are making a profit on every sale.  Delivery is all about making sure every one of your customers is served consistently and with high quality and great service.  And productivity, about getting the most from yourself and your people.  This is the first stage of business growth and one many never bother to work through.  If you want to grow it, take these first steps …

Step 2 … A commercial Profitable enterprise … Here’s where you build revenues and capitalize on the profitability you built in step 1.  There are 4 areas you will need to build upon.  You will over time build the systems and strategies you have for Lead Generation, Converting Leads into Sales, Repeat Transactions and your Average Dollar Sale.  Building our business beyond a small company will need you to learn and build in these areas.  Over the next few issues of this magazine I will write articles on each one.

Step 3 … A commercial profitable enterprise, That Works … Here’s where you have to build systems, systems that run the company.  As you document, record, film and photograph how everything is done in your company you take it from a business that is dependant on good people to one that is dependant on good systems.  Add to good systems, good people and you end up with a great business that now works …

Step 4 … A commercial, profitable enterprise that works, Without ME … This is all about building a team.  If you want the company to run without you, then you have to build a team and a leader to take your place.

Step 5 … Growth … Get everything you have done to work together in harmony, with Synergy and open multiple offices, shops or territories.  This is where you multiply and use the system you already have working again and again.

Step 6 … Freedom and Results … now it’s big and you can let your team build it, it’s been several years, probably 7 to 10 years of you worked hard and smart, but finally you have made your small business big …

I know this seems like a lot of work, read my books for more details, but it takes time and learning, stay with it, it will be worth it in the end.  Owning your own business is definitely a great challenge, but it truly is filled with great reward.

This article is reprinted courtesy of My Business magazine, one of the leading business publications in Australia.

How many times have you played the “Whatever Happened to ...” game.  Wondering why a certain customer who used to buy what you have to sell doesn’t buy anymore?

Is there a reason?  Or group of reasons?  Has anyone ever done a study on this?

Though the years, I’ve accumulated a group of reports from different sources ranging from different sources ranging from U.S News & World Report, the Harvard Business Review, and several trade magazines to half a dozen motivational and “secrets of successful selling” articles.  But (and here’s the amazing fact) they all have the same statistics.

Now whether this is one person copying what someone else has written or said or simply perpetuating a myth I’m not sure.

What we are sure of is that the statistics make sense because they worked in our business (and seeing them gave us a reason to develop a new customer-oriented marketing plan) and in other businesses as well.

Here are the numbers as repeated in books, columns, and from the mouths of let-me-tell-you-how-to-succeed speakers:

Why Customers Leave …

·         14% leave because their complaints were not solved

·         9% leave because of the competition

·         9% leave because they moved someplace else

·         68% leave for ... no special reason or what we call perceived indifference …

In other words:  Seven out of ten customers who used to buy from you left for ... no special reason ... I don’t believe that ...  I think there was a reason ...  Or a series of reasons:

       I think they left because you never told them you cared...

       I think they left because you never told them they were important

       I think they left because you never said “Thank you” and “Please come back and shop with us again ...”

Many times I have found that owners and operators are so busy minding the business they forget to mind the Customers, and in the immortal words of super salesman “Red” Motley, “Nothing happens until a sale is made”...

How many times have you walked in to the store and found no one to give you any help or assistance?

I heard the story of writer Ken Erdman tells of the time he and his wife were shopping in a Philadelphia department store ...  His wife found an item and brought it to the counter - but no one was there.  And no one to be seen ...  And so Ken simply stood in the middle of the room and yelled at the top of his voice “Help! Help!” Suddenly security people appeared from everywhere demanding to know the problem...

“There’s no problem,” said Ken.  “We just want someone to help us.” 

The Japanese handle that by having People stationed on either side of the door when you walk into their shops ...  They bow and say O-kyaka-san, which roughly translated means, “You are a visitor to my home.”

Do I feel that way when I walk into your business?  Is one cashier talking to another ...  Or a friend on the phone ...  Or busy fixing stock ... Or ... are they so busy minding the business, they forgot to mind the customer ...

A retailer friend proudly showed us his new computers ...  He could tell us how many pairs of pink socks were sold on any given day at any given hour ...   His carry-home briefcase was filled with voluminous printout sheets that he read with the same interest and the newest novel by John Grisham ...  He would pencil in notes on the margin, make references for future buying patterns, and the store as an office away from his office at home ...

His once-successful business went bankrupt ...

He was so busy minding the business, he forgot to mind the Customer ...

Now nothing is wrong with cleaning stock, taking inventory, and buying computers ...  It is to be practiced devoutly, to be admired, and encouraged.  But not at the expense of the Customer ...  Businesses often tend to build fences to hide behind ...

We did a series of seminars for banks at annual state meetings across the country.  We asked each of them, “How many made more than ten officer calls last month?” (“Officer calls” mean  the bank officers had to leave the bank and personally make a call on a Customer and potential Customers throughout the community.)  Few raised their hand.  Yes, it was written down for them to do ...  Yes, they knew it was important ...  But there were papers to read and sign and employees to watch and criticize and . . . well, there just wasn’t enough time ...

We remind them to “take the time,” or the competing bank would be out asking a simple question to the Customer: “When was the last time you saw your banker?”

They were so busy minding the business, they forgot to mind the Customer ...

And what of the phone call to a business questioning a bill ... And the answer, “Sorry, our computer handles that.”

Really?  What’s his (or her) name?  Can I talk to him?  If the computer is going to take care of the business, does that mean it takes care of the customer as well?  Shall we set up your business like a vending machine cafeteria?  Customers come in, look for the selection they want, dial their credit card number alongside  the tiny window opening, and click . . . it opens for them to take what they want ...

And those of you that rave about the tremendous success of home shopping on TV, consider this fact:  The total sales (while impressive) make up less than 3 percent of the total retail in the United States ...

·         People are lonely ... They want someone to talk to ...

·         People are critical ...  They want to kick the tires and touch the fabric ...

·         People are social ... They want to “get out of the house” and go somewhere . . . the local mall or business is fine ...

And so the next time the desk piles up with figures to beat and merchandise to buy and salespeople to hire, make sure it does not take up the greater part of your day ...  That belongs to the Customer outside your door roaming around looking for help in buying an item ...

Take care of your Customer.  If you do, you will have a business to take care of ...

Today I want you to really understand what a customer is worth, and not just your best customer, but an average customer ... what is their lifetime value ... ?

Think of this, how long does an average client buy from you, how many times a year, for how many years ... ?

A simple example, my favorite Las Vegas restaurant, N9NE, steak house at the Palms ... now, I am no where near an average customer, I'm a great customer, but think of this, I've bought at least 100 people in to taste Chef Barry's creations ( it's now in the Top 100 restaurants in the World).

Think of that, if Chef Barry's average customer or your average customer bought in only 5 referrals, how much are they worth?  Then how much are the 5 referrals worth and then again what if the 5 referrals on average bring in 5 referrals ?????

What does the Lifetime Value of a customer add up to for you?  Do the math and then work out what it's worth for you to keep the customers you've already got?   What are 3 things you can do to keep the best 20% of your clients/customers doing business with you?  Even knowing them is a start.

Then, what's it worth to BUY a new customer?  More on this one another time ...

All the Best ... Brad Sugars