Wednesday, May 29, 2013

Price fight

from the book "NO EXCUSE! in business"

- What else?
- What-what else? - John asked me back.
- What else bugs you?
- Nothing but the strategy. The right way.
- You mean by...?
- The price. The price of course - said John finally.

I remained quiet because I was sure about this from the very beginning. Unfortunately business people have a kind of automatism that the easiest way to win a business is by giving discounts. However I think this is the laziest and the less effective way. Less effective because sales guys easily give discounts, which reduce and kill our profits. Engineers are ready to provide extra services, which is increased work not compensated by the client. Therefore I would never consider the decreased pricing as a marketing or a sales tool. It is simply not healthy for the business.

- Look John, there are three very different issues here. The first one is the crisis, which is one of the greatest tool to improve your income. However we can also talk about the competitor fight and the price fight, which are two very different issues. To handle the competitors and the price issue you have to make a difference.
- Yes, but we are in the same field.
- And then what? Is it a problem?
- Ok, what about the price? - asked John.
- Please do not avoid my question. Let me explain it in a very short way.
- Okay.
- The main problem is what you have also probably noticed that the number of the newly formed companies are intensively growing. All of them are looking for profit, however they can not offer the same price levels as their competitors, which are already in the market since twenty plus years. So ninety-nine percent of the newbies are playing the same old card, which is: they are cheaper.
- That’s it! - said John with a huge acceptance in his voice.
- But this is the trap. They can not provide high quality on low price however as it seems the high quality service providers are forced to reduce their prices. Therefore if you are joining this game you will loose your profit.
- What can I do?
- You can make a difference by realizing something.
- What? What? - asked John in a very excited way. He was like a child in the chocolate store. He wanted the answer immediately.
- That something is relative. None of the products or solutions have an absolute value. How much is the value of a product? Exactly the same what your customer is ready to pay for it.
- Yeah, but everybody wants the cheapest solution.
- Really?
- Really.
- Did you buy the cheapest suit?
- No. Of course not.
- Did you buy the cheapest car?
- No.
- Are we eating now in the cheapest restaurant?
- No.
- So does the price really matter?
- In these cases no.
- The price never really matters! When you are able to provide something that the client wants and what makes a real difference in your market, then the price becomes a secondary issue. The real problem is that most of the marketing people can not educate the prospective clients.
- What do you mean by this? - asked back John.
- The price. This is what all the customers see. Why?
- Because it is obvious?
- Because there is nothing else. A good marketing strategy is capable to educate the client to the benefits, related services, added values and it shows the prospective clients why is it makes a positive difference to buy that specific product or solution from you.
- Client education.
- Yes and with client education you are able to form your market or even more you are able to open a new market for yourself. Even if you sell the same product as your competitors you still have the possibility to make a difference.
- So it is all about the additional things?
- John, why the hell are you going to a restaurant?
- I do not know. Really. - he laughed.
- I am not going to the restaurant because of the food, because I can cook too. I am pretty sure that when you are hungry you can make something nice at home. I am not going there either to meet with my friends or business partners, because I can meet with them anywhere else.
- So why are we here?
- Because of the service. - I stopped for a little moment then I continued. - The service is what really counts. I am coming here because I like how they are seating me, how they are serving me and not to mention that for these hours they give me the feeling that I get something special in exchange for my money.
- Added value.
- Difference my friend, difference. If I would only see the price tag I would cook at home. The price never really counts.
- It maybe sounds stupid but I am starting to agree with you - said John and this felt very good.




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Wednesday, May 22, 2013

Crisis = Potential

from the book "NO EXCUSE! in business"

Many minutes passed by silently between me and John and I started to watch his emotions. I felt that he is in trouble and he has something, which will come out soon. I was perfectly sure that he understands that handling the excuses is among the most important key issues in business, but there is much more to do. I was also aware that people who are out of their business stability are way more careful to change.

Based on many years of experience I decided to wait until he comes up with the things, which are really bothering him. Fortunately he was very fast.

- There is one thing which bugs me - he started.
- Tell me. Let’s hear it.
- We are in a crisis. - he looked at me, then he continued soon. - Okay, we are in the after effect of the crisis, but my clients still feel it.
- You know in China the word “crisis” is written with two symbols.
- I did not know that. Is it relevant? - asked John.
- Yes. - I replied quickly. - The first symbol means “crucial” and the second symbol means “opportunity”. So in China the word crisis contains the “crucial” or the “opportunity” symbol as well.
- Okay, I know it, the decision is mine. The angle of incidence of the Sun, right. - John started very sarcastically - However it is not easy. The crisis is usually crucial.
- The decision is always yours! - I replied to him in a little bit louder way, I wanted him to realize that he is dropping an excuse on me regarding non-performance.

The one thing what I really hated in business is non-performance. Many people are lazy to do their homework or are simply just not ready to look around and to challenge their situations. However I have to admit that more than thirteen years ago I was the same too. I started to gain knowledge from the books, but when something happened which was not written in the books I started to panic. After many years life crossed my roads with Dodo Newman, the Inspirationaliste and she taught me one very important thing, which was to not give up our beliefs in a positive solution. She taught me to keep up and to continuously believe in my aims. Most of us are ready to give up the fight without even realizing that maybe we are already in the finish line. Thanks to Dodo I realized that I can always challenge the existing because we are able to improve things, to innovate.  Since then I also know and this became my philosophy, that if you try something you never lose, however you immediately lose when you give it up. So I was ready to pick up my pen again and to draw a new thing for John.

- You can do the same old methods hoping to survive or you can take the opportunity and challenge your market. - I started.
- It is easy to say.
- No, it is not. What is easy is to wait. - I replied back to John - Have you ever read books  from Dr. Spencer Johnson?
- Spencer who? - John asked back.
- Dr. Spencer Johnson. He wrote a great book called “Who moved my cheese?”.
- What? - John had no idea what I meant.
- It is a book about four little mice. They are all looking for the cheese in a maze in a very changing and challenging time. The cheese represents their survival, cheese being a metaphor for what we want to have in life. - I smiled back to John.
- I am in a maze too. Ha-ha.
- You have to read the book because it is one of my favorite and it ‘s message is perfectly clear about one thing, the why and the when you should start to change.
- And does it help in crisis?
- Yes, because crisis could be your biggest potential my friend!

John started to see me as a very weird creature because he continuously measured my face and emotions. So I turned the other side of the tea-cloth and I started to draw on it a new picture for him. I created five buildings for John. All the buildings were different in size and width.


- New York? I was there! - John said.
- Nope. It is another place were you are now. - I winked with my eyes at John. - It is your business and your competitors.
- I wish I would have only four competitors. - he laughed.
- Four is good enough for today.
- Go on. - he gave me the sign that he is ready to listen to what I am aiming to tell him.
- Most of the companies are fighting for new clients during ideal business climates. There are always new clients no matter how is the economic climate is. There are not so many new clients during bad economic periods but you can still always find some.

So I drew a few “NC” combination of letters around the buildings, standing for the New Clients.



- However the biggest problem is that it is very hard to target the new clients in changing economic situations.
- That’s it! Finally you agree with me. - John said happily.
- Wait my friend, just wait. - I calmed him down, however by now John sat back on his chair and he seemed extremely satisfied.
- Go on, go on.
- So when the economic situation is changing, let’s say you are facing an after effect of a crisis, corporates start to cut back their marketing budget. They are doing this because they realize the truth that targeting those new clients is becoming very tricky and often ineffective. Therefore budget cutting makes sense for them.
- Yes. This is what I am doing too. - John agreed with me.
- Yes, but this is why you are struggling.
- Or surviving.
- John, my friend, you are hoping to survive just as all the companies who are following this strategy. However relying only on hope makes a very weak chance for you. Let me tell you why.
- I am sitting here with open ears.
- Okay. When companies are cutting back their marketing budget they act according to the Law of attraction. They will start to loose clients.
- No, they loose clients because of the crisis.
- If you want you can see it from this point of view, but that means you are influenced by the crisis and you are just going with the flow.

I saw on John’s face that he wants to disagree but I gave him no time for this so I continued immediately.

- Let’s put it in this way. In crisis you are loosing clients, which forces your company to cut back the budget to avoid further instability. Is this right?
- Right. I like it this way.
- Okay. The problem with instability is that your whole environment feels it. Not to mention that companies who lost clients between fifteen or twenty percent can be very insecure or even they can go bankrupt. And what does this mean?

I started to extend my draw again and John listened and watched very carefully. So I drew the twenty percent margin lines. I also drew the “LC” signs, which stood for the Lost Clients and under the margin line I drew the “C” signs, which represented the Clients.



- Okay. These are the twenty percent lines where the instability starts. Of course this can be more or less depending on the size and the reserve of the company.
- Got it.
- As you can see there are plenty of Lost Clients in the twenty percent margin. We usually never target them, because it requires too much effort to get them under our umbrella. Not to mention that many of the lost clients have no more funds to restart properly or even if they have they will cause much more extra work.
- Why? They are free clients on the market.
- No they are lost clients on the market.
- Without supplier.
- Without trust and probably without the necessary amount to restart. Trust me they need much more effort and investments.
- So what would you do? - John asked.
- I would target the Clients who stayed, the “C”-s.

I saw on John’s face that he is very surprised and I started to feel that he is looking at me as a fool. So I drew a little “P” letter in front of all the “C”-s so we get the combination of letters “PC”, which represent now the Prospective Clients.



- Look, in crisis people are looking for different values than before. Price and marketing blah-blah are becoming a lower priority. In these times the clients are looking for stability, trust and long term solutions. Therefore the market needs are changing.
- Indeed.
- So if you target your new clients in the same old way, you will realize that you are doing the same old strategy and you will receive much less result. And this is your fault because you let yourself being effected by the outside factors without thinking outside the box and challenging the existing potentials.
- So you would target the competitors?
- Yes. I would target all the clients who already invested into your competitors. I would offer them the same product for the same price or even higher.
- Higher? Then why the hell would they change to us for a higher price?
- Because in crisis clients seek stability in the first place. Price becomes the third or much lower priority. If you are able to offer stability, security and you can gain their trust then you have a whole new market. And believe it or not they will be happy to change companies if you can convince them regarding the security and the added values from your side. This is why smart companies are able to grow even ten times more than any others during troubled economic times. Crisis always brings a new market.
- Says the Revenue Specialist. - John started to laugh.
- I feel that you do not trust in this.
- I trust this I just never thought about this before. Especially not from this point of view.
Thinking outside the box my friend. Thinking outside the box. You know amateurs are trying to push and force their corporate messages meanwhile professionals are realizing the market gap, selecting the prospective clients and targeting them. If you are going with the average you will receive the same result than the average. However if you are ready to challenge the existing economic situations then you have the possibility to grow.
- I agree. - John acknowledged.
- Then you can also agree with my previous thought that in crisis you never cut back your marketing budget because it is your tool to communicate with the prospective clients. You just reorganize your focus and you definitely send out the message that you are not effected by the crisis, you are there and your stability is hard as a rock.
- It is definitely a new perspective. Thanks.
- You are welcome.

I saw that John is very satisfied and he is already thinking about his next steps tomorrow. But I knew him very well so I could not stand to ask him what else bothers him.




Paperback:  229 pages
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ISBN:  978-1-300-52746-6
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Wednesday, May 15, 2013

The angle of incidence of the Sun


from the book "NO EXCUSE! in business"

One of the most basic and important business rule is that you are responsible for all your decisions, success or failures. Only you!



However hard it is you can not blame the external factors. We are in the same business jungle and the rules are the same for all of us. No exceptions. It is all upon you if you will survive or not. It is all upon you if you will be a Rabbit or you will become a Tiger. Now days the business is your jungle, your playground.



If you do not like to be a Rabbit then change it. You are the master of your destiny. Do not blame others, that's the game of losers and cowards.



Never blame outside factors, never say what could be if... You need to focus only on what you can do now with all your assets. You need to bring out the best as much as possible from your current, existing knowledge, assets.



Economy, politics, weather, your neighbor, etc... it is easy to blame these factors for your failure, but believe it or not these factors influence also your competition not only you.

You can not change these factors, just as you can not change the politics. You need to accept them, acknowledge the rules and go forward towards your aims. Sitting and waiting for the changes is equal with suicide because you will lose the control over things.



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ISBN:  978-1-300-52746-6
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Wednesday, May 8, 2013

Problems distract your focus


from the book "NO EXCUSE! in business"

First of all I drew for John a line, which represented the past, the present and the future. The left end was the past, the right end was the future and I placed a human figure into the middle where the present was. I placed a “goals” sign on the right side and my little figure faced directly the sign.


- This is you, my friend. - I said to John.
- I like that I am thin but I am not bold. - he joked back.
- You are right but believe me you do not want hair in this picture.
- Why?
- Because the hair, or let’s say the lines of your hair represent your problems. But let me explain it to you.
- I am really curious. - laughed John, who had no idea what I am talking about.
- Okay. So in a perfect state our guy is watching forward towards his aims. As you can see his eyes are focusing without any distraction. This is what all the leaders and visionaries are aiming to do. Because if you are able to get a clear view on your goals then you have a much better chance to approach them. However the reality is very different, specially nowadays.

I continued my drawing and I started to draw the margins for the field of success or let’s say I was ready to outline the border of the survival of his business venture.



- So this is the border, which separates success from the insecurity and failures. Until your focus is in this field you can reach any aim. However problems are always distracting you.
- Usually.
- Yes, but if you can delegate and solve your problems, your focus comes back to your goal. However unsolved problems can easily remove your attention because they will pull your focus back to the past.

I started to draw him the unsolved problems and all of these problems were connected with a line to the head of our figure. This represented his hair. What really was different now in the figure was the angle of the eyes.



- As you can see all the “lines” represent unsolved problems.
- Got it.
- The source of the unsolved problems is coming from the past. It is like a rule, because if you could not solve and close a problem, then you probably did not handle its source. And even if you can not really see their effects believe me that they will pull you back and slow you down in the future.
- I have some of these. But do you know what I miss?
- What? - I asked John.
- Time to handle them.
- Success is coming with solved problems and released mind my friend. As you can see all the problems are related to the head of our “little John”. And these little lines are pulling back his attention. This means he will loose his focus from his goals and instead he will start to focus on the unsolved problems.
- Yeah, but he has to solve the problems, right?
- No. A leader, a company owner or a visionary can not work on daily problems, otherwise his company will never develop towards the settled goals.
- So what do they do, just sit and watch?
- Delegate. - I replied promptly.

I wanted to wait a little bit more to give him the time to digest the information then I continued.

- A real leader is able to delegate the daily tasks and he is capable to control the results. However a leader needs to focus on the results because this is how improvement comes. A company owner becomes an entrepreneur when he loses his focus on the development and future aims. Just imagine how daily problems and stress distracts your positive thinking. This is why you have to convert yourself to be a good leader.
- I can do that.
- Of course you can do that!

I felt that John started to realize the power of this small drawing and he understood well that his eyes look far away from the target. He also understood that if he is the one who solves everything in his company he will never look forward towards his goals, only backwards to the problems. He had a clear vision at this point to have a delegation method in action. John was ready and motivated to convert himself into a leader. I know it is a long process, but I was happy to see his determination.

- Do you remember my very first book?
- The Inspirationaliste?
- No, the Creating Business Value.
- Yes, yes. The small guideline.
- Yes. - I smiled at John - And do you remember the first chapter “The angle of incidence of the Sun”?
- Yes, stating that everything depends on me, right?
- Right. And also that the decision to improve is in your hands. “Economy, politics, weather, your neighbor, etc... it is easy to blame these factors for your failure, but believe it or not these factors influence also your competition not only you.” - I quoted the book - So put back your focus John.

I was very happy at this point because John started to be more relaxed. In the first moments when he arrived to our dinner he was very frustrated and he really needed some fresh thoughts. So I decided to cheer him up and give him some more ideas.

- Do you know the joke about the Chinese girl?
- No.
- Two girls with long hair are meeting in an event. The browned hair girl wears her hair loose on her shoulders. The black haired girl wears her hair in a ponytail. This girl has almond shaped eyes so the other girl asks her:
- Are you from China?
- No, it is just my ponytail, which is way too tight.
- Idiot. - laughed John. - But I got the message. I do not want to look like a Chinese boy just because of my problems. So let’s make sail and let’s go forward! - he said with a little toast for me.

We lifted our glasses and finally we enjoyed something more than simple water. Finally I could taste my favorite eighteen years old Chivas Regal.


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ISBN:  978-1-300-52746-6
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Wednesday, May 1, 2013

Entrepreneur or Leader


from the book "NO EXCUSE! in business"

- Do you know what the difference is between an entrepreneur and a leader? - I asked John.
- Of course. An entrepreneur owns his own business while a leader works in a high position in one of my companies. - he laughed at me loudly.
- So, you have good leaders, right? - I winked at John.
- Yes, the best ones. - he smiled with satisfaction on his face.
- And is it necessary for an entrepreneur to be a leader?
- Yes, of course. - John answered promptly.
- So the leader is a higher status, right?

I saw on John’s face that he disagrees with me, but he also hesitated to answer because he knew that I will prove him wrong.

- I always create a bold line between an entrepreneur and a leader. - I started to explain to John my philosophy - I believe that not all entrepreneurs are designed to survive. I think the economic crisis clearly presented how easy it is to lose our businesses and fortunes, and I believe one of the reason why companies went bankrupt is because their leaders had no real life experience to survive.
- How the hell is this related to my business? If you state that I will go down then I am out of here. - said John with anger as well as fear in his voice.
- No, no. Please do not misunderstand me. - I tried to calm him down.

I know from all my experiences that we all have fears when someone holds a mirror in front of us showing us our mistakes. And many of us feel that these are attacks and punches into our face. However presenting mistakes and giving additional ways to correct them is a great chance to improve our skills. I continued the chain of my thoughts.

- When I started my first company I was very motivated with it. It was my tool to gain whatever I want in my life. I worked ten-twelve hours per day in the beginning and I really enjoyed it. Not to mention that as you know success came very soon. After three years I had my dream cars, a Range Rover and a Lotus and I really felt that I am alive. I am sure you know as well how it feels to sign the first big contract, to receive the first million in your bank account or to be handled as a respected solution provider and a respected business owner in your community.

John sat there, his eyes twinkled like bright stars on the night sky. He clearly knew what this feeling was like.

- In those time I had a “lifestyle” business.
- “Lifestyle” business? But you are a revenue specialist and business process optimizer? - asked John with huge surprise in his voice.
- Yes, “lifestyle” business because for me the definition of “lifestyle” business is when you are working hard, gaining the results that you want and providing a good environment for yourself. You get almost everything you want. Ergo you are able to create a nice lifestyle for yourself.
- Ok, I understand what you mean.
- So this worked well in the first five years and I have to tell you that in those times I really enjoyed it. Then suddenly I realized that I am still working twelve hours every day in my office, sometimes even more. I also realized that my stress level has increased. I felt that I am working much more for the company than any other paid employee.
- I know this feeling. - smiled John.
- Yes, but this led me to the point that I hardly even saw my wife and I started to know my family only from pictures.

I stopped here for a moment because I felt that I needed to drink a little bit of water. My mouth started to dry out because as I was talking, I went through these periods emotionally again in my head.

- Many people said that successful people work more, but in my opinion this is bullshit. Successful people know something better, which I never did well before, but I am doing it now day by day.
- What? - inquired John very intensively.
- The art of delegation.
- But we all delegate in our business...
- But how? Are you satisfied with its results? - I asked him back.

And boom! John was shocked, because he immediately understood that without the adequate results there should be some problem. A problem for which he is also responsible.

- You know in the old times the man worked hard, he sent the money home and the family was happy. I think it is acceptable, specially when you have a very young child. However I wanted to be happy too. I wanted to gain things that I can enjoy too.
- And your family?
- Look, when you work hard, your family enjoys the result, however when you feel tired and overloaded then something is clearly wrong. I think when you work hard, your family is happy and if you are happy too then your life is on the right track. Working for others without enjoying your life is slavery. It does not help your life.

John nodded his head very intensively. He knew that I know that we works his ass out for his family and sometimes he can not go home before midnight.

- So I realized that I gave up my lifestyle business and I converted myself into an entrepreneur. Which by definition an entrepreneur is someone who is fighting with his competitors for his own survival. And this is where his challenges of life has been converted into daily problems, has increased his stress level and the endless business hours. In the meantime he is fighting for new income sources while he knows his family only by photos. All this causes a lot of stress and in most cases an early burn out.
- You are speaking from my heart. - said John and he asked for another drink from the waiter.
- Yeah, but I did not start business for this. I never wanted to fight for my own survival.
- None of us did...

Where are our drinks? Where are our drinks? Probably this was on John’s mind, because he was involved in this entrepreneur feeling very deeply.

- On the other hand if I would describe a real visionary or a leader I would say they are very happy people with a lot of free time. They are able to focus on their hobbies as well, while they are earning incredible amounts of money and of course they can spend valuable time with their family.
- That is what I want. - John agreed with me promptly.
- What I realized John, is that successful people are able to delegate the biggest part of the tasks. They are able to approach people who are ready to help them to realize their aims. And this is when you will become a real leader and/or a business owner.
- True.
- Because you as an owner you have the vision for your company. You had the guts to start to accomplish your aim. Therefore you have to lead your employees and you have to ensure them your knowledge and guidance to get the jobs done. You know all successful people are enjoying their businesses, they are happy because they are able to focus on their own aims and visions. And this is the key, to develop a team who is ready to make your delegated visions come true.
- Do you think it is easy? Where the hell are these super human employees grow? - asked John sarcastically.
- Well my friend, they are growing in your garden. Because it is all upon you. No one will find out your thoughts. You have to be there to let them know the right way and to guide them to the how.

Big silence covered us, which was the silence of realization. I wanted to break this silence fast before it turned into lethargy.

- Look let me draw you something related to problems.

So I picked up one of the tea-cloth, I got my pen out and I started to draw for John.



Paperback:  229 pages
Publisher:   Lulu
ISBN:  978-1-300-52746-6
Language:  English

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