Tips To Ensure a Positive Cash Flow

One of the leading causes of business failure, particularly among small businesses, is poor cash flow planning.  It is imperative that a business have sufficient cash on hand to pay bills, meet emergencies and to invest back into the business to ensure growth.  Knowing that you will have lean months when sales are slow is an important aspect of planning in terms of putting money aside, but it isn’t the only thing you can do.  You can also:

1.         Aggressively collect accounts receivable.  If you have a customer who has not paid on time, you need to follow up and secure payment.   The longer you wait, the more difficult it will be to collect.  In fact, studies have shown that after 90 days, the chances of collecting an account drops to 72%, down from 94% after 30 days.

2.         Periodically review your pricing.  Ask yourself if you are charging too little or too much.  Research your competitors.  Do you offer more value?  A customer will pay any price for a product/service as long as they are convinced that they are receiving value. 

3.         Establish a line of credit.  Approach your bank and see if you can establish a line of credit to be used during times of emergency.  In the long run, a line of credit with a bank is a lot cheaper than credit cards should you find yourself in a cash crunch.

4.         Increase sales.  Sure, it’s always easier said than done, but it can be done.

5.         Open an interest bearing account and deposit daily.  Sweep accounts and interest bearing checking accounts may not produce a high yield, but 2 or 3 percent interest is better than nothing.

6.         Renegotiate your lease.  Most leases come up for renewal on an annual basis.  Approach your landlord with the idea of temporarily lowering rent payments during months when business is slow.  If vacancies are high in your area, your landlord may prefer a reduced rent payment to no rent payment.

7.         Hire more part-timers.  If you need support staff, consider hiring part-timers.  Unlike full-timers, you are not required to pay benefits, and they are generally more flexible in their work schedule hours.  Additionally, if you need to lay off staff in slow months, it is a lot easier to lay off a part-timer in comparison to a full-timer with benefits.

8.         Don’t overpay on quarterly taxes.  If you think your income will drop this year, do not pay taxes based on last year’s numbers.  Work with your accountant to ensure you have an accurate estimate.  If you’ve already overpaid on your quarterlies, ask for a quick refund (IRS Forms 4466 and 1138).

9.         Read the fine print in your equipment leasing contracts.  Get an option to cancel written into your equipment leases that allow for cancellation due to closure.  Don’t get suckered into contracts with an evergreen clause.  These are clauses that allow a contract to continue unless you give 30 day notice.  These are difficult to cancel and the expiration date is hard to track.

10.       Brainstorm with staff.  Your staff may have great suggestions for cutting additional expenses.  At your next staff meeting, ask for their input and ideas. 

Tracking Your Business Expenses

Effectively tracking your business income and expenses is a vital component of your business success.  While income can be easy to figure out, deciding what qualifies as a business-related expense is not always as cut and dry.  The IRS guidelines aren’t too helpful either in that they define a business expense as “ordinary and necessary” to your trade or profession.

The definition is very vague and sometimes it’s difficult for most people to determine what truly is a business related expense.  However, most expenses associated with starting up, organizing and operating your business are potentially tax deductible.  In fact, did you know that you can even write off up to $5,000 in startup and another $5,000 in organizational expenses in the year you start your business? (These deductions are reduced if you have more than $50,000 of either type of expense.)

Many sole proprietors are often confused as to what is and is not a business expense.  The best thing you can do if unsure, is to err on the side of caution.  Track all your expenses, even those in doubt, and then let your accountant or tax professional figure it out for you at the end of the year.

There are several great software programs that can assist you such as Quickbooks, Peachtree, Microsoft Accounting, Quicken and Microsoft Money.  Depending on your business needs, any of these feature-loaded softwares could get the job done for you.  Another option would be to keep a monthly Excel spreadsheet of your expenses.  Whichever method you use, consider setting up your expense categories to match those on the Schedule C (Profit or Loss from Business Form) of your tax return.  This will save you or your accountant time at the end of the year trying to figure out which expense goes where.

The IRS is strict about not mixing personal and professional write-offs on your taxes.  In other words, be careful if you are claiming expenses that are a mixture of both personal and professional expenses.  For example, you plan to attend a conference in Florida.  While there, you are going to drop in and visit Aunt Mary and Uncle Bob.  It’s okay to combine business and pleasure, but be careful when you claim those business expenses.

The conference must be geared to your business.  Furthermore, the conference also needs to last at least six hours a day, and you must attend a minimum of two-thirds of it in order for you to be able to consider it a business expense.  Also, be sure to extract any expenses related particularly to visiting Aunt Mary and Uncle Bob. 

Finally, hang on to your receipts and records.  The general recommendation is to retain that information for seven years.  The IRS has three years from your filing date to audit your return if it suspects good faith errors and has six years to challenge your return if it thinks you underreported your gross income by 25 percent or more.   And, if you failed to file, or filed a fraudulent return, there is no time limit. 

When a Business Makes a Grand Exit

How many times have you heard the words, “do you have a plan?”  Regardless if you are just starting out or have been in business for a while, chances are someone has asked you this question.  Knowing how important a business plan is to success, you probably already have one in place that you revisit periodically.  But, do you have a plan for that day when you leave your business?

You’re first reaction is probably something along the lines of, “that won’t come anytime soon.”  It’s a typical reaction, but not necessarily realistic.  Why, you may ask?  Because we aren’t necessarily talking about retirement here; we’re talking about having to leave because of often uncontrollable factors such as dissolution of a partnership, a divorce, long-term disability or even death.  These events aren’t things that we expect or plan to happen, but often do, and when they do, it often throws not just our personal lives in disorder, but the life of our business as well.

Common sense dictates that if you had a plan when you started your business, having one to end your business in just a wise decision on the part of any business owner wanting to ensure that the legacy of their business.  Having an exit strategy accomplishes several important things.  First, it minimizes any hassles and heartache that a business in transition may occur when it looses its owner.  Secondly, it protects your personal interests.  Finally, it allows you to make difficult decisions and explore a variety of options while still calm and rational and not suffering under the influence of the event that is facilitating your departure.

There are a variety of ways in which you can exit a business; which one you choose depends largely on what fits with your goals.  Ask yourself if you are interested in: 

• Retiring?
• Starting a new business or venture? 
• Building and selling your business for a sizeable profit?
• Passing the business on to a younger family member?

Once you’ve decided on your goals, you’ll be able to select a method of exit.  Possible forms of exit include:

• Selling a portion or all of your business.
• Passing it to a family member in such a way as to minimize estate taxes.
• Selling it to an Employee Stock Ownership Plan (ESOP).
• Going Public.
• Liquidating.

When preparing your exit strategy, you’ll need to figure out how much your business is worth.  A professional business appraiser or attorney may be able to help you come up with a number.  Also determine upfront what each stockholder is to receive and draft a legal document that outlines the split.  Furthermore, be sure that you have a clear line drawn between what constitutes your personal assets and your business assets.  This is sometimes difficult, but extremely important, depending on how you structured the business.  Again, seek professional guidance for what works best for you.

When all is said and done, you’ll find that an exit strategy actually provides you with greater freedom to make decisions about your business and your personal goals.  They are an excellent planning tool for any business.

Pitfalls of Sales Forecasting

Creating a sales forecast can prove challenging, particularly if your focus is on trying to just meet your current sales numbers.  However, accurate sales forecasting is important to the overall health of your business.  Accurate forecasting allows us to avoid unforeseen cash flow problems and to manage our operation, staff and finances more effectively.

Sales forecasting can be time intensive in terms of gathering past sales information and preparing projections based on a set of sales assumptions, but it is necessary.  When preparing your sales forecasts, be sure to avoid these common pitfalls.

Wishful Thinking. A positive and optimistic outlook for business is always good, but you have to remain realistic, particularly when working with your projections.  Ask yourself if you and your sales force can realistic meet those sales figures?  Do you have adequate staff and trainers to handle that level of projected volume?  Also, do not make the mistake of writing in the figure of what it takes to keep your business up and running.  For example, if it takes $25,000 a month to keep your doors open, don’t arbitrarily write in $25,000 as your sales goal.  You aren’t doing yourself any favors.

Ignoring Assumptions.  Sales assumptions are an essential part of your projections.  Each year, your assumptions are probably going to change.  However, they remain a pivotal part of understanding what will impact your business and sales for the upcoming year.  Do not ignore your assumptions.  For example, if you believe that you may loose market share because two new fitness facilities are opening up within a five mile radius, do not disregard and project an increase in sales.  Your assumptions need to tie in and support your sales projections. 

Moving Target.  Once you have reviewed your final numbers, agreed upon them with all relevant parties, and created a timeframe for accomplishing, leave it alone.  Fight the urge to spend time going back and refining and “tweaking” the projections every chance you get.  This only distracts you from meeting the target.

Lack of Consultation.  Most likely, you will not single-handedly be meeting your sales projections.  Chances are you have staff and/or sales associates who will assist you.  One of the biggest mistakes you can make is not consulting your staff and getting their opinions and buy-in.  Talk with and listen to your staff.  If they raise legitimate issues, they need to be addressed.  Unrealistic sales goals only place unnecessary pressure on people and create a stressful working environment.

No Feedback.  When you’ve completed the projections, take them to someone who has the knowledge and know-how to review them and offer feedback.  This may be your accountant, a senior manager or colleague.  Having a fresh set of eyes brings a new perspective and potential insights that could prove useful.

Some argue that sales projections are an act of faith, and to an extent that’s true.  However, your leap of faith may not have to be as far if you avoid these common pitfalls, use solid past sales figures, market research, and industry reports, and keep things in perspective. When you do these things, you may be pleasantly surprised at the results.

Identifying Opportunities

“Success always comes when preparation meets opportunity”
~Henry Hartman

Change happens.  It’s a given, particularly in business.  If its not your market, it’s your customers’ needs and preferences, or the technology and equipment you use, or your sales channels, or the way you deliver your products/services.  It can sometimes prove to be scary when potential threats materialize, but also rewarding when new opportunities present themselves.  Therefore, it is always important to periodically step back and evaluate your business to ensure that you are addressing those threats, but also grabbing those opportunities.

Identifying potential opportunities can sometimes prove difficult.  Occasionally, we are also too late in seizing an opportunity before its time has past.  One way you can ensure that you are spotting opportunities as they arise is to follow trends that will affect your business. Try to identify the trends that are affecting your business now, and over the next 12 months.

Other ways to identify opportunity include:

Evaluating your existing customers to attract new customers.  Do you know why your customers choose to buy your services and/or products?  Have you historically used more than one method for attracting and securing those customers?  If so, take a look at the different ways used and see if one has proven more successful than others and attempt to duplicate it to attract new customers.

Hold on to your existing customers.  Explore opportunities that will generate or increase a higher level of sales among your repeat customers. You might consider offering new products, or versions of products, or upgrades of your existing service.

Expand your current customer base.  Are there customer groups that you do not sell to currently, but who you believe would benefit from your products/services?  Make a lit of the characteristics that made this group distinctive, for example their age, gender, race, occupation, income, hobbies, membership of clubs and associations, etc. Then, identify the benefits that your products or services could provide to these individuals. 

Using your uniqueness.  Its difficult to take advantage of your opportunities if you offer the same products/services at the same prices and in the same way that your competitors do. There must be something about your business, products, or the way that you market your service that sets you apart.  Identify what that is and learn to use that uniqueness to your advantage.

Pursue partnership opportunities.  Often, working with another business that offers complementary services or products to your own can prove both beneficial and profitable.  By partnering with others, you can open the doors to opportunities for your business that you may otherwise be unable to develop due to a lack of resources or money.  These “piggyback” style marketing relationships are becoming increasingly more popular, and can help businesses develop opportunities more quickly.

Discovering Your Target Market

Target market is a phrase that is thrown around frequently.  In simple terms, it is a segment of the market that is the strategic focus of your business.  Being able to effectively identify who is part of your target market is important if you are developing a marketing strategy and campaign and you want it to be successful. 

Prior to creating your marketing plan, you need to be able to answer two essential questions: (1) what is your target market and (2) what does your target market want and/or need that you can provide?  If you are able to answer both these questions in great detail, then you can begin drafting your marketing plan.  If you have doubts or lack the details, you need to back up and do a little homework.

Who Is My Customer?

You need to recognize who your customer is because the objective of your marketing efforts is to concentrate on those customers most likely to buy your products and services.  Therefore, you need to start by describing exactly who your customer is.  Are there certain characteristics that your target market shares?  Do they fall into a particular age category?  Gender?  Socio-economic class?  Occupation?  Do you know which customers spend the most time and money with you?  Why do they do that?

Be Precise

When creating your prospective list of customers, you need to be as precise as possible.  Make sure that you are able to identify them in specific demographic or geographic terms.  If you can’t, you will have a hard time in determining which channels will be the most effective in reaching them, i.e. television, radio, internet, newspaper, etc.

Give Them What They Want

This is often a difficult area.  We think we know what our customers want, but unfortunately we often fail at finding out what they really want and/or need.  You need to be able to give them exactly what they want or need in a convenient and affordable way if you expect them to buy what you are selling.

Quality versus Quantity

More is not always better when it comes to developing prospects.  Buying leads lists is one prime example of this.  If you haven’t taken the time to truly identify who your customer is, buying expensive marketing lists are often a major waste of money.  Most of these lists are outdated to begin with and are typically only as good as the information you put into them when generating.  Having a quality list of leads increases your ability to convert them into sales tenfold.  So, shift your thinking from quantity and focus on the quality angle of building your list.

Use a Sounding Board

Finally, before running with that marketing plan you’ve created, test it out.  One of the most common mistakes made is failing to test out your assumptions on a sampling of your target market.  By taking a little extra time to conduct a survey or questionnaire of a small portion of your target market, you can avoid wasting your time and money.  It may take a little longer to kick off your campaign, but it will be well worth it in the long run.

Analyzing Your Business

In order to run a successful business, you need to have a reliable method in assessing your business, its resources and the environment in which it functions.  You need to be able to accurately identify its strengths, weaknesses, opportunities and threats.  The formal term for this process is called a SWOT (strengths, weaknesses, opportunities and threats) analysis and it’s a useful tool in gaining a better understanding of your business and its position in the marketplace.

The main objectives of a SWOT analysis are to:

¨  Identify what you do well;

¨  Recognize areas which need improvement

¨  Determine whether you are making the most of opportunities around you, and

¨  Analyze possible threats to your business

The best way to complete a SWOT analysis is to create a blank grid of four columns.  Across each column, write a heading for strengths, weaknesses, opportunities and weaknesses.  Then, list all relevant factors that fall in each category.  Do not be concerned if some factors appear in more than one box.  It is not uncommon to see a factor that appears as a threat could also be viewed as a potential opportunity.  For example, several new health clubs may open in your area.  Yes, this could be a major threat to your business, but it may also prove to be an opportunity as more competitors often boost the number of clients who would come to the area.  Some of those clients may see your business and decide to try it as well.

It is important that you be completely honest and realistic when performing your SWOT.  What’s the point of investing the time in doing the analysis if you plan on creating some vivid tale of the imagination?  You may not like to hear or admit to the things you discover, but ultimately you may find this exercise to be extremely helpful to the survival of your business.

Be sure to look at all factors, not just the big stuff.  Consider all issues impacting your business carefully no matter how initially insignificant they may seem to you.  You are also encouraged to take advantage of other people’s perspectives.  They can prove to be extremely insightful, particularly if they are not close to your business and can view things objectively.

After you have finished your analysis, be proactive and develop a game plan to build on your strengths using them to their fullest potential.  Additionally, determine how you can reduce your weaknesses; understand where your opportunities lie and how you can capitalize on each one presented to you. 

SWOT is an important part of developing an overall strategy that can analyze your business, its potential and put you on a path to prosperity.  While it is not a major decision making tool and shouldn’t be used as such, it is a useful guide for looking  at the internal and external forces that impact your business at that particular time.  Since a SWOT is not static in the sense that it will change as your business environment changes, using it as part of your ongoing business analysis can prove beneficial. 

2012 Las Vegas Opening Presentation

Listen in to the shorten version of the 2012 Annual Las Vegas Conference. 

 

Time Management Re-assessment

If you have tuned in long enough you should have come to the realization that managing your time is extremely important.  In fact, it is among the top 5 reasons a small business owners make it or bust.  So if you haven’t gasped the concept as of yet, it is time; time management is a big deal!  With that said let us assume that you have created a plan to manage your time.  That you have times allotted each week to train clients, marketing, relationship development, and business affairs (ie accounting, payroll, bill paying, etc).

What happens when you add another client?  Take on a new project? Or an unforeseen event pops up?  Have you developed the skills and commitment necessary to adjust to such situations? Obviously the addition of a new client is a good thing, taking on a new project can be seen as a good thing and certainly there are unforeseen events that are good things.  So, the question becomes how can you fit the new events into the plan?  It is because of reasons previously listed and other that you need to re assess the time management plan.

Here is how I approach the re assessment component of the time management plan.

1. The last week of the preceding month I take some time to evaluate my progress and prepare for the following month based on a couple of factors.  What did I and didn’t I get accomplished in the current month. What do I need to accomplish for the upcoming month.  When I am developing the plan I am using the template of the previous month to set things up. 
2. Once I have the basics set up then I re-assess my progress on a week to week basis.  Generally speaking I evaluate the week’s production on Friday before the end of the work week.  Then on Sunday morning I make the any needed adjustments to the upcoming weeks schedule.
   
3. Finally on a daily basis I am fine tuning the schedule.  Each day I have a to do list of what needs to be accomplished.  The list is broken down into 3 or 4 categories depending on the day.  For example: clients, marketing, follow up, business development.  99% of the time everything business related I can fit into the 4 listed categories.

It is important that you adhere to a the schedule and avoid situations when possible that get you off track.  There are obvious situations that will pull you in another direction such as; a child getting sick or hurt, a pet getting sick or hurt. Having the plan in place will help you quickly get back on track when those types of situations arise.  However, for the other situations that may arise you need to ask yourself, is this important enough to derail me from the goals and objectives I have set for myself?

Think of the time management plan in terms of a plan you have created for a client to achieve their results.  The effectiveness of the plan you have created will be dependent upon the client’s ability to adhere to the plan.  When you notice there are struggles you tweak the plan to keep the client on track. You become an excuse eliminator. You need to maintain the same mentality when it comes to your business and time management plan.  The better you can adhere to the plan the more productive and effective you will become.  The more productive and effective you become the more time you will have to enjoy your life.  Remember your business should support your life.

Mind Set

Through my years of experience as a coach, trainer, athlete, and parent I have dealt with the issue of mind set on a daily basis.  My journey on the path to improving my own mindset came approximately 13 years ago when I went through a tough personal decision.  The decisions that followed lead me to down a path of self doubt, low self esteem, and questioning life as I knew it.  I have never been one to sit around and sulk for long periods of time but found myself with out motivation and direction for the first time in my life.   Something had to change.  I started by going to the library and meandering through the isles of books.  One book jumped out at me:  NO EXCUSES!

This book started me down a path of understanding the importance of cultivating a positive mindset.  I mention cultivating because it is truly an on going effort.  You can never get away from continuing to seek out ways to maintain and improve the mindset.   We are all prone to moments where we give into the dark side.  Moments where we are far more; negative in our thoughts, spiteful in our actions, or just down right rude. Cultivating a positive mindset will help us better identify the moments that are pushing us over to the dark side and permit us to take corrective actions or in the case you are on the dark side to recognize the destructive nature and take the appropriate actions to return to a positive mind set.

Since my digesting of the information presented in the book NO EXCUSES! I have been enlighten through may additional resource such as Think and Grow Rich, The E-myth, The Laws of Success, How to Win Friends and Influence People, If you don’t’ know where your going how will you know when you get there, and many others.

 

Here is what I have learned:

• Don’t ignore issues.  When you ignore issues they begin to eat at you and the more you ignore or procrastinate the less likely you are willing to deal with the issue as time passes you just hope it goes way.  The truth is, it isn’t just going to go away.  It will come back to haunt you.  So dealing with issues or at least addressing issues in a timely fashion will save you.
• Have Direction.  Know what it is that you want to accomplish.  What do you intend to accomplish as a result of your career?  What do you intend to accomplish this year? Month? Week? Day?
• Have a Plan.  This goes hand in hand with direction.  The plan provides the means to stay on course and headed in the desired direction.
• Read something Positive everyday.  Take 30-60 mins each day.  Preferable before you go to be to read something positive.  I have personally found that when I consistently do this that my creativity increases and I am more keenly aware of the opportunity that surrounds me.
• Partake in an active outside of your career.  You need a break from the day to day functions of the job.  Taking time to pursue hobbies or other outside interests serve as a means to recharge your mental batteries.
• Listen More and Speak Less.
• Challenge Yourself.  Try something new, don’t get comfortable, push the envelop and step outside of your comfort zone.
• Spend time with others who are successful.
• Be humble.  Admit when you have made a mistake and own your actions
• Most importantly take time to enjoy life

What Fitness Business Owners Should Know About Non-Compete and Non-Solicitation Agreements

The use of non-compete and non-solicitation agreements are becoming a staple in just about every business.  The fitness industry is no exception.  In fact more and more small fitness businesses are using non-compete agreements when hiring trainers regardless if the trainer is an independent contractor or an employee. 

Now I am by no means a legal expert and would strongly recommend speaking to a lawyer if you have specific questions regarding a non-compete and/or non-solicitation agreement.  So, don’t substitute what I am about to say as legal advice.

Although the two terms non-compete and non-solicitation are often used together they have two distinct meanings.  A non-compete agreement is a contract between employer and employee/IC whereby the employee agrees not to enter into competition with the employer after employment has ended.  The non-complete typically takes effect after employment has ended and will last for a pre-determined time set forth by the employer. The non-solicitation agreement restricts the employee from soliciting (a) employees or (b) customers of the business after departure.

The intent of using the non-complete and non-solicitation is to provide reasonable protection for the business.  When a fitness business owner hires a trainer there is an assumed risk that the business owner takes.  The primary risk is the effort and resources the business has provided the trainer to develop a client base.  If the trainer was to just up a leave and take the clients with them: this could lead to a devastating impact to the business because of the loss of income.  The use of agreements is permitted by the courts in an effort to protect the intellectual rights and any proprietary information the company has provided the trainer.

The use of non-compete and non-solicitation agreements vary by state.  In fact in California the use of non-compete agreements are deemed unenforceable.  However, most courts favor non-solicitation agreements.  Check with your local state laws for additional information.

Also important to note is that the terms of the agreements must be deemed reasonable.  Unfortunately, reasonable is a very loose term and if you end up in court it will be up to the judge to determine what is or isn’t reasonable.  Here is what you need to keep in mind.  The purpose of the agreement(s) is not to prevent the employee from working in their choosing career field and to limit their ability to earn a living.  So although the intent of the agreements are to provide reasonable protection for the business regarding their customers and confidential information, they also provide protection to the employee for his/or right to earn a living.

There is one last point I would like to make; the non-compete and non-solicitation agreements are generally in place for the position and time at which they were signed.  This means if you hire a trainer, and have them sign the agreement(s) and then later promote them to a management position the previous signed agreement(s) may no longer be in effect.  So, error on the side of caution and make sure to have trainers/staff sign a new set of agreements whenever there is a change is positions or status.

 

Self Esteem

I am not an expert on self esteem.  There are certainly others that have spent years studying and understanding the importance of self esteem.  But I would like to briefly chat about the importance of self esteem based on my experiences as a business coach.  At its very heart self esteem is directly tied to self respect and is defined as; confidence in your own merit as an individual person.

When it comes to working with new business owners the excitement of owning their own business is often overshadowed by fear and decreasing confidence as they begin learning the harsh lessons of being a business owner.  I often find myself encouraging owners by tapping into the motivation and confidence that directed them to opening their own business in the first place.  There is not perfect plan, no perfect business, and no perfect way of dealing with problems.  With that said the one thing that remains consistent when it comes to individuals who can make the plan work despite the shortcomings, ensure the business can be successful and to handle problems, is the confidence one has with in them.  The confidence to see beyond the immediate moment and to make decisions that are in the best interest of all parties involved is a key component to being successful both in ones personal life and in business.

Business owners that are not afraid to fail operate with far greater boundaries than business owners who are afraid to fail.  Don’t get me wrong business owners that don’t fear failure assess the risks being taking and certainly take risks that are more likely to be successful. Not quite the gunslinger mentality (at least not all the time).  The business owners who don’t take any risk have a tendency to restrict and then constrict their business to the point it suffocates.

The point in this brief article is this; self esteem is a vital component for every business owner, self esteem can be learned, so if you weren’t born with it, you owe it to yourself to seek it out.

Mental Gardening

When we are born we are born with a clean slate. Void of any presumptions and influences.  We are totally dependent upon our care takers.  Because of this early dependency our slate begins to fill based on the influences of our care takers.  Are we encouraged to take chances and risks? Are we prohibited in taking chances because of the fears of someone else? Are we bombarded by the word ‘No’?  Were we praised for good actions and decisions?  Were we criticized for poor choices?  The answer to these questions and many more is the information that begins to fill in our slate.  It is from these early influences that our current decisions are made.

As we enter into adulthood it is our ability to look back on our youth retrospectively and learn from our experiences good or bad and move forward. Each of us has a choice regardless of upbringing.  It is the wise man who can look back on his life and sort out the good from the bad and take corrective actions to improve or enhance his position.  Taking this corrective action can be done through ‘Mental Gardening’.  When one thinks of gardening one tends to think about tending to plants (vegetable, flowers, and grasses) and create the best environment to permit the plants to prosper. When conditions are just right the plants grow with what seems like little effort.  When the conditions are poor one strives to improve the conditions. One may consult the local nursery, read how to books, speak with neighbors, and search the internet all in an effort to gain the knowledge on how to improve the conditions so that the plants can prosper.  The term ‘Mental Gardening’ refers to ones mind.  In order for one to be successful they must tend to their mindset just as a gardener tends to the garden.  When the conditions are right we can see exponential growth both personal and professional.  When the conditions are poor one needs to put the effort in to improve the conditions.  One needs to seek out information that will help improve the mindset.  Negative thoughts regardless of the cause can take the momentum quickly.  No one is immune to negative thoughts, but those who have invested the time into cultivating a positive mindset are more likely to overcome the negative thoughts.  They have a higher purpose and negative thoughts do not serve a purpose.

There are any number of ways to improve ones mindset which way is best for you, well that is part of the cultivating process.  However, here is the method that has worked best from me through the years.  When I am operating at peak capacity both personally and professionally I choose to read something geared towards self improvement for at least 30 minutes every day.  I am choosing to pursue activities outside of my chosen industry.  I choose to take an active roll in the lives of my family. Finally the most important things that I do is take time for myself.

Business Coaching

What exactly is a business coach? And more importantly what can a business coach do for you and your business?  These are two important questions.  First let us start with a brief understanding of a coach.  When the term coach first comes up for most of us this can bring back an instant memory of a youth sports coach, drama coach or even a music coach.  The job of the coach was to provide direction, guidance and a game plan to help us maximize our talents.  There is not much variation when it comes to the defining a business coach.  The job of a business coach is to provide direction, guidance and a game plan to help you maximize your talents.  In addition a business coach will provide resources and assets to expedite the learning curve.

Let us briefly review the topics of direction, guidance, game plan, resources and assets.

Direction is an area that we all need from time to time and as a business owner it is imperative that one has a sense of direction.  With all the obstacles and challenges that lie in front of each business owner, having a sense of direction will help you steer clear of any number of obstacles.  For these obstacles that one can not steer clear of a business coach is there to help you develop strategies to tackle the obstacles.  Direction is developed between the business coach and owner based on a clear understanding of what the business owner intends to accomplish.

Guidance is an extension of direction.  Once the business coach has a solid understanding of what the business owner intends to accomplish the business coach will tap into his/her experience to provide the business owner a readily available resource to help guide them through the easy and tough decision that lie ahead. Touching upon a few of the decisions, ‘When do I hire?’, “How do I expand?’. ‘Am I ready to expand?’, ‘How do I set up a compensation plan’ and ‘How do I handle a trouble employee/IC?’ are all questions every business owner will face.  These are but a sample of situations that a business coach can help you overcome.

A business coach will take the information obtained from the business owner and help them create a game plan to achieve success.  This is where things can get a bit tricky, it is not the goal of the business coach to create your business plan or directly give you the information to complete you business plan.  In fact it is not the business coach’s duty to give you all the answers.  There are some instances where the coach should give you the answers, but for the most part giving the answers doesn’t help the business owner in developing the confidence to make sound decisions and to grow their business.  If you are always given the answers one never learns.  Part of the growth of the business comes through the process or journey of exploring and challenging what the business owner already knows (or thinks they know) and provided direction, guidance, resources and assets to fill in the blanks. It is for this very reason that every business owner is different.  Each owner comes to the table with a different knowledge base and skill set.

Resources and assets are an important part of the arsenal for every business coach.  The information available in arsenal has been developed based on the experiences of the business coach.  The experiences both gained through personal experiences and coaching experiences.  It is through these experiences that business coach can deliver information that is both valid and applicable.  The resources and assets available through the business coach are geared specifically to maximize the time investment of each business owner.  Inefficient use of time is a wasted resource and something business owners can’t afford.

Getting back to the questions asking in the beginning; ‘What is a business coach?’ and ‘What can a business coach do for you?’  A business coach is a coach.  A person that will help you develop and solidify a sense of direction, to provide guidance through the good and bad times, to help you develop a game plan to achieve your goals and to provide resources and assets to help you maximize your time.  A business coach can move your business light years ahead of where you are right now.  A business coach prepares you to play game.

Dealing with the Funk

In business, as in life, there are ebbs and flows. The ebbs can sometimes lead to something one may call a 'FUNK'. This funk is usually noticed in the form of a lack of motivation and/or a sense of just going through the motions.

The cause of a ‘funk’ can be anything from stress in one’s personal life, day-to-day business struggles, or any so-called fires you have been battling over the course of time. No matter the particular cause, we have all been in a funk at least once, and are very likely to revisit it multiple times throughout our careers.

The trouble with being in a funk is:  1) It is not always apparent to the one in the funk as to when it began, 2) You never know how long the funk will last, and 3) You often don’t know how to get out of it.

Identifying that you are in a funk is a challenge; oftentimes, it is more apparent to those around you than it is to you in the early stages. Here are some good warning signs:

· Moody

· Short tempered

· Lack of tolerance

· Lack of responsiveness

· Lack of production/productivity

· Lack of clarity

· A sense of fogginess

· Tough time focusing

· Lack of desire

· Lack of motivation

· An ‘I don't give a sh@$’ attitude

· Feeling of hopelessness

Because the funk can roll in slowly, we tend not to see it in ourselves.  It is usually the individuals we interact with on a daily basis who pick up on it.   And oftentimes, when they call us out on it, we deny it. If a trusted individual in your life brings up the topic, it would be sound advice to take a step back and take a self evaluation. The first step to getting out of the funk – just like anything else – is being able to recognize the fact you are in it to begin with.
 

The length of time you stay in a funk is based on the impact and the circumstances that brought it about.  Each of us responds differently to the circumstances in our lives. Sometimes, getting away for a day or two to refresh and energize the batteries is enough. Other times, the funk can last for weeks, months or even years. I am by no means an expert in this area and certainly not giving medical advice, but as trainers and fitness professionals, our general game plan revolves around getting back into the groove of eating healthy and exercising.  However, sometimes this isn't enough: sometimes we need to seek the help of a trained professional.

So how does one get out of a funk?  Well, the honest answer here is ‘I have no clue.’  But let me share what has worked for me:

· Identify the cause. If it is an unresolved issue, then work toward resolving it. I often find that if an issue is left unaddressed, it can eat away at me to the point that I begin to obsess over it, and it consumes me.

· Take some personal time. Take some time to allow yourself a mental and/or physical break from your current activities. I know this can be a struggle, especially if you have family commitments that you think won't allow you to get away. Think of it this way: Does your family want you to be happy? Do you think you will be more productive when you’re happy or when you’re rundown?

· Do something that you enjoy. Oftentimes, when I feel a funk coming on, I will realize I haven't worked out for a long time – and usually for no good reason! I also have a wide variety of interests outside the workplace, and if I haven't partaken in any of those interests for awhile, I can find myself in a funk. I think it has to do with the creative person who lays inside that needs an outlet.

· Take pride in what you have, and what you have accomplished. A lot of times, I am not willing to recognize the good that I have done or the things I have accomplished. More often than not, I will downplay the impact I have. Sometimes, I have to be willing to give myself a pat on the back and say ‘attaboy.'

· Lastly, I have to remind myself that I don't have to be perfect. To err is human. As a single father of two, I have to recognize that I don't have to be perfect. It’s okay to make mistakes, and it’s okay to get angry when things just simply go the way I want them to. There are so many factors we can't control – and frankly, who wants that responsibility? I just need to trust that, in the end, I will make the right choices that are in the best interest of those that I am interacting with, either personally or professionally.

I hope you find some useful insight within this article, and continue to work on yourself to help you minimize the inevitable funks that are part of life. Take solace in the fact you are not alone. After all you are human.

Checking the Numbers

Are you aware one of the easiest ways for your business to earn money is to save money?  If not, you are now. Saving money or more importantly having more money coming into the business then going out of the business.  Every business owner needs to have a clear understanding of their expenses.  This will serve the owner very well for a variety of reasons. 

First, it will allow for the costs to be prioritized.  Businesses will have ebbs and flows and from time to time you will need to post pone paying a bill or cut expenses.  Knowing which bills you can post pone or which expenses can be cut will help reduce any stress associated in hard times.

Second, it gives you instance access to how the business is operating.  If the business is thriving then there will be room to expand, add a new service, upgrade or purchase equipment for the company.  If the business is staying at a break even point then the owner needs to find ways to continue to increase business or in some cases replace business that has been lost.  If the business is performing poorly then its time to cut expenses and continue to look for ways of increasing revenues.

Third, it allows the owner to evaluate his/her performance.  The bottom line is the owner is responsible for the growth or lack there of in any business.   If the business is growing and making a profit then the owner is considered to be doing a good job.  If the business is not growing the owner is consider to not be doing a good job.  It really is that simple.  You either doing a good job or your not!

Working with Your Partner

As the licensing program has grown there have been a healthy number of husband-and-wife teams join the Achieve Fitness Family.  Often, the business is started by one or the other, but in time, both parties take active roles in the business.  However, this dynamic creates its own set of complications beyond working with a typical partner.  The biggest struggle most couples-turned-business-partners face is being able to separate the business relationship from the husband/wife relationship. 

The separation of these two relationships can be further complicated if the two relationships require a role reversal; in other words, the party who is the ‘dominant’ party in the personal relationship has to play the ‘submissive’ role in the business relationship.  In addition, the person who handles all the management duties of the household (and family, if applicable) isn’t always the best fit to be the one that handles the management duties of the business.

Here are our suggestions for creating a healthy business relationship when you’re working with your spouse:

• Create a division of roles.  First, decide what roles and/or duties need to be accomplished for the business to be successful, and then divide the roles up.  The roles may not be divided evenly, which is okay, but try to divide them up based on the time involved in each role and play to what each partner’s strengths are.  Please note these roles are subject to change – but you need a starting place, so identify them as they pertain to your business and your personalities as they exist now.

• Set up a weekly accountability meeting.  Schedule this meeting at the beginning and/or end of the each week.  In the meeting you need to cover four main areas:
• What each person’s schedule is going to be/was for the week.  Make sure the schedule coincides so that both people can maximize their contributions to the business
• Set objectives and goals for the week.
• Report on the success of the objectives and goals from the previous week.
• Discuss areas where help is needed, without being defensive or accusatory.

• Set time limits.  Agree upon times when the business day/week ends. Hold true to the end times you determine.  There will be exceptions, but they should be the exceptions and not the rule.

• Set rules to for disagreement.  Remember that the discussion is about business, not your personal life.  When you are expressing your concerns, stay focused on the behavior, not the person (this is a good rule to practice in your personal relationships, too!).  Don’t bring personal issues to the business argument.  This is a surefire way to put the other party on the defensive.

Following these four strategies will help you lay a strong foundation on which to develop your business relationship, which will in turn allow you to remain life partners, too.  Lastly, reach out to your fellow business owners who are couples and talk with them to seek out their insight… If all else fails, sign up for My Expert Solutions.

Accountability

Accountability is a term often thrown around in our personal and business life.  It seems like everyone knows the importance of being accountable for their actions, but very few give the term any muscle.

In the simplest of definitions, accountability means being responsible to somebody or to/for something.

How many of you truly hold yourself accountable?

How many times have you not completed a task or goal?

How many times have you not made good on a commitment?

The ability to hold ones’ self accountable is a personal choice.  It is a conscious effort to sort through the riff-raff in life – both personal and business – and identify the priorities that are going to set one apart and be successful.

Here’s a story.  “Earlier this year I ran into some car troubles – the transmission in my truck needed to be replaced.  At the time, my financial situation would not allow me to pay for the full repair.  I have used the same mechanic for years (Auto Service House), and they have always provided me with outstanding customer service.  Because of the relationship I have with them, we were able to set up a payment plan that allowed me to get my truck repaired in a timely fashion and be back in business.  The plan was simple: pay half now, which allowed them to purchase the transmission and not carry the cost, and then pay the remainder of the balance in 30 days. The repair was made and I picked up my truck with in 3 business days.  On the 28^th day I paid the remaining balanced owned.  The shop was excited that I not only paid the remaining balance, but also that I paid early.”

Here is the point of the story.  Although people say they have trust and confidence in others, the reality is that on the inside they’re nervous and distrusting.  When you make good on your word, keeping yourself accountable, people are truly impressed and have a restored belief in people and/or business. 

It is truly amazing that the act of simply keeping yourself accountable is the exception and not the rule in society.

Take this lesson and apply it to your day-to-day operation.  Create a business and time management schedule, set up goals and objectives, and become accountable. 

You will make hundreds of choices through out any given day.  Make the choices that put you in the best position to stay accountable to what you desire most.