What Business are YOU in?

So, how many times in a week are you asked the same question…”What business are you in”?

It’s one of the questions that invariably gets the standard response – “I am in the computer business” or “I do graphic design” or “I sell real estate”.  What do YOU think happens in the mind of the recipient when you answer that way?

There is no doubt that the mass population of people will always tell you about the “commodity”, whereas I believe the response should be more about what you DO for your clients the result versus what you sell.

Let me explain.

As a business coach I spend a rather large proportion of my time helping owners figure out how to use their time more efficiently, come up with a Unique Selling Proposition for their business, help with developing a more dynamic team or working on challenges with revenue or profits! All of these “things” are important but that isn’t how I would describe my business.

Ask me “what business are you in”, that last thing I a will tell you is that I am in the “Business Coaching” sector……I am in the “Freedom” business! That’s what I do. I help my clients with challenges in their business that are roadblocks to them extricating themselves form the day to day running of the business so they can go do the things they want to do and not the things they have to do!

Zappos are not in the “on line shoe sales” business….they are in the “happiness” business. Zappos built a multi million dollar on line shoes supply by being in the “happiness” business. Everything they do is about making the clients happy – not selling them shoes!!!

Now to some this may seem esoteric, but, look around at how many companies have built their business not on the commodity but the result that the commodity plans or could possibly provide you.

Revlon’s ad campaigns of the 80’s and 90’s never spoke about lipstick or other products they sold. Everything they did was about you buying the “fantasy”! Nike don’t sell sports wear, Apple don’t sell computers and Disney doesn’t sell theme park rides!!

Next time someone asks you “What business are you in?”, take a second, pause and tell them what you will do for them! It isn’t about the product or service, it is about the result they will get from using your product or service. If you’re an interior designer what business do you think you are really in? An accountant, real estate, remodeler?????  Not only will you separate yourself from your competitors but you will begin to get engaged in more interesting conversations at your networking events.

James Lawson is President of The Capital Coaching Group Inc based in Fairfax, Va and spends his time speaking and writing articles on business strategy and helping business owners get out of their own way!

“I Need More Sales.”

If I had a dime for every time I heard that from a client… Well, I’d probably have $20 by now. But seriously, the issue of sales (or lack thereof) comes up all the time; 

Really, what business couldn’t benefit from more revenues, more cash, and more stability? Business owners can very easily find themselves distracted by the lure of “more sales.”

Sometimes that is just what the business needs.  And sometimes, it just isn’t.

The reality is that more sales does not always equate to more money. Unfortunately, it’s just not as simple as that. As a Business Coach, I admit that I have the advantage of perspective, having worked with dozens of clients on this very issue. I’ve seen what works and what doesn’t and it’s my job to try to get the client to find the path that works. We start by digging a little deeper into what the client really needs, because oftentimes, the frustration they presume to be dealing with isn’t really the frustration that’s causing all the problems.

Let me give you an example.

One of my clients told me that she desperately needed more sales. She and her partner had been working really hard on their business; they were developing systems, implementing innovations and cranking through the development of their business. But it wasn’t working—at least, it wasn’t turning into greater profit. In fact, they were working longer hours, spending more time worrying about cash flow and they were starting to lose control over the business as a whole.

They were confident that the problem was the result of not enough sales. They wanted to discuss how they could ramp up their leads right away.

But when we explored their frustrations in greater detail, it became clear that it really wasn’t a sales issue they were facing. The reason they were spiraling out of control wasn’t because of a lack of intention…it was a lack of attention to the right aspect of their business.

Instead of focusing on sales (or more specifically, their lead generation and lead conversion systems) we turned our attention to their financial management systems. They’d already started the financial quantification process, and were beginning to track the flow of information that arises in the normal course of business—invoices, purchase orders, cash register tapes, bank deposits, and lease payments—all of the things that captured the movement of money into and out of their business. But they’d yet to organize or analyze that information in any meaningful way. And when we did that, we found our answer.

10 ways to Boost Your Business in 2011

Economists say the Great Recession–the longest and deepest since World War II–ended 18 months ago and that the U.S. economy is, in fact, growing again. But growth is relative. Even the rosiest economic forecasts for 2011 come in well under 3 percent growth. Unemployment is still high, and consumer spending is still sluggish.

“However optimistic you may be about your business, you need to let the overall economy temper your expectations,” says Scott Shane, an economics professor at Case Western Reserve University and author of The Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors and Policy Makers Live By. “You need to assume that the recovery is going to be tepid and plan accordingly.”

That doesn’t mean sit and wait for things to improve. Rather, retool for the economy that exists today, and will be lingering for many tomorrows.

Here are 10 places to start.

1. Overhaul your business plan. In a climate as unforgiving as this, stasis is death. So dust off your business plan and scrub it of any assumptions you may have made three years ago. Roll up your sleeves, do the math and zero in on the best strategy to grab market share and win new business. Then start treating your business plan as if it’s a work in progress. Create hard benchmarks and measure results often. That’s how you improve performance, says Tim Berry, president and founder of Palo Alto Software Inc., developer of Business Plan Pro, a small-business software tool that creates plans and financial projections.

“Planning means tracking how assumptions change and reviewing progress and plan versus actual results,” he says. Rethinking your business plan also can help you spot new opportunities and point your company in the right direction.