First, he realised this type of ‘pruning’ was necessary for GE’s success. So he made it part of the overall company plan.

He knew that in order for GE to be the best, he had to have the best people on the job for him – and enough room to replace those who didn’t work out.

Second, Jack believed in a company culture that rewarded performance. As others have pointed out, a lot of Jack’s ‘firings’ were mutual. Some employees simply didn’t like his aggressive style, his penchant for numbers and details, his vision for the company, or his standard of accountability for every department.

Sometimes, company culture clashes with an employee’s value system. Sometimes the employee is constantly at odds with the overall culture and ultimate mission of the company.

Despite the wishes of some government and union types, owners need to free-up unproductive workers with people who can actually do the job so the company can survive.

So let’s say you’ve decided to raise company standards. You’ve developed a clear mission, you’ve established the rules of a positive company culture and you’ve got a new attitude toward your customers and suppliers.

But some of your team aren’t with the program. Some never will be. What do you do? The best thing to do is stay the course.

If you’ve ever segmented your customers into As, Bs, Cs and Ds, you could also apply the same rationale to your employees. Some may not be up to your standards, but others will be attracted to a company that knows what it wants and where it is going.
Setting the Standard

For those of you who haven’t set standards, you need to. Take a cue from Jack. Not only will you benefit long-term, you will also allow others to achieve success in their own right.

1. Establish your own Vision, Mission and Culture for your company – Jack was a big believer in a culture based on innovation, efficiency and continuous improvement. He also believed in rewarding results, from awarding employee bonuses based on innovation to allowing staff to participate in stock option compensation. Does your company have incentives or reward employee performance?

2. Develop strong leadership – Without strong direction, your business will be like a ship without a rudder. This doesn’t mean you need to be an autocrat or a dictator. Just the opposite. I’m talking more in terms of ‘quality’ here. Passion and the ability to take total responsibility are important keys.

3. Have a common goal – Both you and your team need to know what the goal of the business is. When Jack ran GE, he had 12 businesses under the GE umbrella. All had their own goals and objectives – but each operated under the overall GE Vision and Mission. That helped all team members to see the ‘big picture’, one they could be part of and adapt to their specific situations.

4. Set the rules of the game – Team members need to know what they can and can’t do. Everyone must know what game your company is playing, as well as the rules of the game. It’s up to you to create the rules and the playing field. If you don’t, your team will be without direction, and will set their own guidelines for you.

5. Have an action plan – All your team members need a position description that spells out their duties in clear and unambiguous terms. This helps define responsibilities and also helps limit jurisdictional disputes about what a person should or shouldn’t be doing. Ideally, all of this is done in a systemised way, one that can be written down, replicated and repeated. Do this by department and you’ll have an operations manual for your entire business.

6. Support risk taking – You must be willing to take risks. If not, your team will lag and not want to push boundaries. If you don’t push your team to take business risks, your company will push conservatively towards its goals. Know that risks and rewards are two sides of the same coin – and make sure your team knows that, too.

7. 100 per cent involvement and inclusion – Practice the art of inclusion. Ask your team for their opinions and listen. The key is to make sure everyone is involved and everyone gives their all to their respective jobs. In Jack’s view, “every person counts.” Every person does. And you really want them to count in moving the whole team toward the company’s objectives.

And let’s not forget that Jack Welch increased GE turnover six-fold from the time he started to the time he left. He couldn’t have done it with people who didn’t buy into his vision for the company – and he had a pretty big vision for GE. Nor could he have done it with employees who underperformed and resisted change. Can you?

Article reprinted courtesy of My Business Magazine

Do you have one good reason "why" you should expand or go into business for yourself – even if the "sky is falling"  in this economy?

How about 10?

Right now is absolutely the best time to get into business, and I’ll give you 10 good reasons "why" – no matter what other people or the media say.

So how come a good "why" (or 10) is so important?

Seeding your mind with good rational reasons "why" not only helps the logical side of your brain accept new beliefs, you’ll soon discover you'll begin to see all situations as opportunities, just like great entrepreneurs do.

So here are my 10 very good reasons to start your business right now:

1)      Everything is cheaper.

Let’s face it, there is great value right now in this and in world markets. This is the right time for fantastic deals in virtually every category, from land and equipment to commercial office space, personnel and labour. As asset prices have been knocked down, there is really no better time to get into the real estate or financial markets, or even heavy equipment and construction. Some people have waited years to find value in these markets – and now that time has come.

2)      You can hire more team and better qualified people.

In an era when even Microsoft is laying off, you can find great resources at affordable rates. Thinking about getting your high-tech start up off the ground? There's no better time than right now. Thinking about forming a professional services firm? There are plenty of engineers, accountants and attorneys looking for their next opportunity.

3)      People are looking to change suppliers.

From a cost perspective, everything is "on the table" for most companies. If you can come in with greater value even if your prices are higher, you have a good chance at winning new business. You also have the advantage of being the “new kid on the block” when it comes to pitching your products and services, and many companies are desperate to find new partnerships with new companies with a different, better or more innovative way of delivering those products and services.

4)      Ownership equals tax incentives.

Business ownership offers a variety of tax benefits that aren’t available to employees. While taxes should never be the sole reason to go into business for yourself, it should be one reason to add to you “benefits of business ownership” list.

5)      Family and friends don’t want to (or can’t) invest more money into the stock or real estate markets.

That means they may be willing to finance a portion of your new venture, or the expansion of an enterprise that has proven itself over time. The main benefit is that they know you and have a relationship with you – and if you have a solid business plan that delivers real numbers, you’re chances of raising the capital you need increase exponentially.

6)      Suppliers are giving better credit.

Because the credit markets have virtually shut down, the business-to-business credit flows are keeping money circulating out of sheer necessity. That means a bullish outlook for companies looking for good terms on stock and/or inventories. The main advantage is that all parties have more incentive than ever for finding true "win-win" situations that allow for cash and stock flow. When everyone is looking to survive, great deals can be had.

7)      You can get good PR by showing you are "going against the trend."

The media loves aberrations – and if you are optimistic by expanding or getting into business now, you would be in that category. That means you can generate some great PR by demonstrating your “alternative” view of the market.

8)      You can buy everything you need at auction.

In addition to everything being less expensive, you can find great deals at auctions, especially in terms of any large equipment and office furnishings. Auctions are also a great place to find hardly used or “gently” used restaurant and bar supplies at great prices. These days, you may even be able to get deals on fleets of vehicles and trucks for a delivery service or hauling or construction company.

9)      You can find great  "low money" or "no money" down deals.

This is simply being aware of good opportunities others have buggered up, and finding deals where you could get an entire business simply by taking over a lease (along with all the equipment). Many business owners want out at “any cost,” meaning you can negotiate great “win-win” deals that allow the current owners an escape while giving you an opportunity to turn around what could be, if run right, a very viable business.

And finally …

10)  You’ve lost your job and you have to do something.

Sometimes, the best business decision is the one you are forced into, and the incentive (as well as need) for income is often enough to push those previously "on the fence" to strike out on their own. There’s nothing wrong with being in this position; it simply means there is greater urgency to do something that will start to generate income as quickly as possible.

There you have it. A new kind of "Top 10" list for those looking for good reasons to prosper and grow in this environment.

After all, it’s not circumstances that truly define us, but rather how we react to those outside forces that ultimately determines our success.

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

Mention marketing to the average business owner and they think mainly of advertising, however there are far more cost effective, far more profitable and much easier ways to get yourself new customers …

But first, we need to understand a simple idea about what business really should be focused on, and that’s profitable customers …

Let me explain.

When you “buy” a new customer with any form of advertising or marketing it costs money.  Simple example, if you ran an advertisement for say $2,000 and got 100 calls and 20 sales then you spent $100 per new customer.

That number is your “acquisition cost” or “cost per sale.”  Essentially it’s how much it costs you to buy a new customer.  Take that one step further and you got 100 people who called or 100 leads so your “cost per lead” was ($2,000/100) $20.

So, if you don’t already know these numbers you need to go and work them out.  If you get a lot of business by word of mouth or passing traffic you still have to count them as well.

If we follow this example and pretend it was a restaurant, we can presume each person coming in spent only $100 on dinner.  How much money did you make from each customer?  That’s right, you lost money, It cost you $100 to get them there, $30 for food and drinks to serve them, $30 for staff and $10 for overheads, so all up $170 out for $100 in …

In other words, all 20 of these new customers were on average a loss.

So, there are four ways we can turn them into a profitable customer right up front.

1. We can work on writing better advertisements. Create a better headline, a better offer and make sure we only advertise in media that makes sure we are getting to our target audience. From there we should be able to get a much better response, many of my clients we’ve doubled and tripled advertising responses with just a few simple changes. So, let’s look at the numbers if we doubled the responses, and you can fairly easily do this. Now we get 200 callers and your cost per lead goes down to just $10 each …  That’s a great start and assuming the other numbers stays the same, we are down to just $50 cost per sale and thus $120 out for $100 in.  Still more work to do, but we are on track …
2. Next we work on getting more of the callers to come in and buy.  Boosting your conversion rate is often as simple as measuring it and as complex as creating scripts for your salespeople or receptionists to follow.  So, what if instead of 1 in every 5 (20 out of 100) coming in we could get 2 from 5 and really make sure the marketing and advertising dollar goes further. So, we are now getting 200 callers and instead of just 1 in 5 we get 2 people to come in and buy. That means we are up to 80 people booking in and buying from you. Your acquisition cost or, cost per sale is now down massively. Your $2,000 advert now gets you 80 buyers at just $25 each.  So when we do the math, our marketing is starting to make a profit on ever new customer, just $95 out for $100 in. Great work …
3. Next we need to get them spending more every time they buy from us. Instead of $100 each time, how can we work on raising sales, suggesting other items, a better wine list etc.  all these ideas you can sit down now and work on. What else can people buy,  Think of it like one of my clients, a pharmacist who offered ever single person who bought from him a bag of those wonderful chemist only jelly Beans. He ended up selling hundreds of packs a week, just by asking.
4. Finally, we need to get people back.  Collect their details, send them a monthly newsletter, special offers, even a simple thank-you card and invite them back as often as you can …

No matter what you do, remember you are buying customers and it’s getting more expensive every day. Once you’ve got them, keep them for as long as you can. Good service goes only so far, from there it’s up to you and your marketing to invite them back and give them reasons to buy from you again and again.

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

My odometer rolled over to 90 in August, so here is the column once more:

1. Life isn't fair, but it's still good.

2. When in doubt, just take the next small step.

3. Life is too short to waste time hating anyone.

4. Your job won't take care of you when you are sick. Your friends and parents will. Stay in touch.

5. Pay off your credit cards every month.

6. You don't have to win every argument. Agree to disagree.

7. Cry with someone. It's more healing than crying alone.

8. It's OK to get angry with God. He can take it.

9. Save for retirement starting with your first paycheck.

10. When it comes to chocolate, resistance is futile.

11. Make peace with your past so it won't screw up the present.

12. It's OK to let your children see you cry.

13. Don't compare your life to others. You have no idea what their journey is all about.

14. If a relationship has to be a secret, you shouldn't be in it.

15. Everything can change in the blink of an eye. But don't worry; God never blinks.

16. Take a deep breath. It calms the mind.

17. Get rid of anything that isn't useful, beautiful or joyful.

18. Whatever doesn't kill you really does make you stronger.

19. It's never too late to have a happy childhood. But the second one is up to you and no one else.

20. When it comes to going after what you love in life, don't take no for an answer.

21. Burn the candles, use the nice sheets, wear the fancy lingerie. Don't save it for a special occasion. Today is special.

22. Over prepare, then go with the flow.

23. Be eccentric now. Don't wait for old age to wear purple.

24. The most important sex organ is the brain.

25. No one is in charge of your happiness but you.

26. Frame every so-called disaster with these words 'In five years, will this matter?'

27. Always choose life.

28. Forgive everyone everything.

29. What other people think of you is none of your business.

30. Time heals almost everything. Give time time.

31. However good or bad a situation is, it will change.

32. Don't take yourself so seriously. No one else does.

33. Believe in miracles.

34. God loves you because of who God is, not because of anything you did or didn't do.

35. Don't audit life. Show up and make the most of it now.

36. Growing old beats the alternative -- dying young.

37. Your children get only one childhood.

38. All that truly matters in the end is that you loved.

39. Get outside every day. Miracles are waiting everywhere.

40. If we all threw our problems in a pile and saw everyone else's, we'd grab ours back.

41. Envy is a waste of time. You already have all you need.

42. The best is yet to come.

43. No matter how you feel, get up, dress up and show up.

44. Yield.

45. Life isn't tied with a bow, but it's still a gift."

The only way you or I can ever fail in life is to not participate ... to give up, to not get up when you fall down.

You cannot fail if you are trying ... I say it to my kids ten times a day, yes but just give it a try ...

Get back on the horse, give it another go, get out there, you learned to walk by falling down, everything else will be the same, only question is will you stay down or will you get up ...

Finish the race strong, it's a great day, how do you know ... ?  You got given it, you woke up today, be your best, do your best and you will have the best ...

Enjoy ... Brad

All that red and a black sheep ... ?

Hit a goal, celebrate ...

Do a great job, celebrate ...

Have a Birthday, make a sale etc ... Have you lost the art of celebrating ... ?

Do you have a girls lunch or a boys night out each month ... celebrate more my friend, it's the reason we work so hard ...

All the Best, Brad Sugars

But away from business, these next few days I am Mr Mom, my wife is on a trip with her Dad and I am having a few days of Daddy, daughter time as well ...

My favorite song with the girls (yes I have two) at the moment is I'm cleaning my gun ...

They are still young but I know that just like business I am learning at every step how to be a great Dad.  Not easy, not something we will ever Master I think until we are grand-parents, but suffice to say, a rewarding challenge.

I use a lot of my coaching skills and techniques with the girls ...

1.  Always answer YES with conditions, like yes you can have that if you have your own money her to buy it ...

2.  Always use questions, "do you think that was a good choice or a bad choice?"

3.  Always focus on the positive, NOT Stop jumping on the bed, but Please get on the floor now ...

4.  And the best lesson, goals are good, but cannot always be a carrot, sometimes you need a stick and I have to remember I am their Dad, not their friend ...

Enjoy your parenting and finally, the best lesson I ever got about parenting ...

Kids spell LOVE ... T.I.M.E.

Brad

Had dinner last night with Jeffrey Gitomer and we were discussing this for him and his business and his statement was clear, I am right now investing so I become the undisputed #1 in my category while everyone else is in hiding ...

If you are at all in doubt, then sit down with one of my coaches (www.actioncoach.com) and work out a way you can turn the negative into a positive.  Put a plan in place to grow and grow now.  Remember if a tree is not growing. it's dying, it's true in nature and true in business.

All the Best ... Brad Sugars

G is for GOAL - Take your dreams and turn them into a SMART Goal, give it a number, a timeframe and be specific ... By the way, generally if you know how to achieve it, it's NOT a goal it's a simple To DO ... create GOALS that make you learn and grow ...

P is for PLAN - Now you have a goal, WRITE the plan. If it's in your head, it's not a plan ... Who is doing what, by when ... ?

A is for ACTION - Time to go to work ... DO the hard parts first and then the easy will follow ...

All the Best ...

Brad