I am a member of AmSpirit, a networking and business referral group. We meet at creative source. Creative source does great work and I suggest you check out their website.

My reason for this post is to document Creative Source and how they bring in hundreds of business owner and sales reps into their office each month at no cost to them. Creative Source has a big conference room they allow others to use at no charge. They do not provide coffee or tea. Several networking groups meet there, Toastmasters meets there. I held some sales presentations there before I knew Mike. Mike, one of the owners, feels this is a good way to give back to the community.

By giving back to the community, he has hundreds of business people come to his place of business each month. Each business owner who walks through the doors each week sees his work, reinforcing his brand. He provides a table for others to place their brochures. He is not afraid of competition and some competitor belongs to the groups who meet there. He does all this and it cost him nothing. I am so impressed with his tactics that I writing a blog about his approach.

He is not a client. I am not his client. I just see his approach as a risk free way to attract hundreds of people to his business each  month. I do not know how much business he gets, nor does it matter to him. His primary reason is to give back to the community. The visibility and support he gives the community is amazing.

If you can, try this. It cost nothing. I taught this tactic to a restaurant client of mine and he has groups meeting at his restaurant regularly. He visits various groups and invites them to use his spare room at no charge. They pay for coffee, breakfast or lunch, and his repeat business has sky rocketed.

To Your Business Success,

Ron Finklestein
330-990-0788
ron@businessgrowthexperience.com
www.businessgrowthexperience.com
Improve your people skills and grow sales: www.akris.net

I recently received a request from one of my blog readers to do an article on pricing your product. He sent me some great articles he found on the net. After reading them I realized he may have been over thinking the pricing issues. To me it is fairly simple. There are only three outcomes to consider:

1. Your product is priced too high and no action is taken (the competition is complacency.)
2. Your product is priced too high and it invites the buyer to buy from someone else (I need to make sure I am getting the best VALUE.)
3. You price your product to low and you introduce concern from the buyer because he wonders what is being missed (lack of trust.)

Pricing your product can be simple if you let it but you must price it from the buyer’s perspective. As a business owner you need to know both your fixed and variable cost and ensure you cover those cost while remembering the buyer is not concerned with your cost. They simply don’t care.

From my perspective, here is what you need to be concerned about. What does your competition charge? This is important if the consumer has a preconceived notion of the value of the product. For example, if I go to a paint store and see a gallon on paint is priced at $50, I might go to another store to see if I can get the same quality (different brand) for a better price. I may have a belief that I am not going to pay more than $30 for a gallon of paint (or $20K for a car, or $3 for loaf of bread, or $1 for a pen, etc.)

The bigger issue for me is the value proposition. I believe people will pay to solve a problem and in many respects they will pay a premium if they believe you are the right and safe choice. Making the buyer understand that you are the right and safe choice is both hard and critical. Understand this is not a universal construct. For example, if I have $1 to spend for pen it may not matter if it is a BIC or another brand as long as it fits my budget. If I have a Rolls Royce for sale and my buying audience cannot afford a Rolls (or do not want it) then price it does not matter.

The hard work is the unique value proposition, helping other to understand your value, where and how to market your product and knowing how the problem you solve will allow you to charge more.

Pricing the product is in fact telling a story about the product. For example, why would I pay $50 for a gallon of paint when I can a similar product for 40% less? If price is not an issue, you can focus on the parts of the products story that are important to a client. The higher price for the paint can be told in a story: it is safer (less smell), easier to clean (important to a busy mother because it save time), last longer (don’t have to do it as often), provide a better finish (looks better), or is easier to apply (saves time.)  If those concepts are not important to your audience, you have a different kind of problem.

Sometimes price is not a consideration. If you are selling to high net worth individuals, they are buying prestige and convenience. The price is secondary. If I am buying a gallon of paint, price is primary.

Finally, pricing is impacted by the demographics of the audience. It is harder to sell your product using “pain” as the value proposition when selling to an older audience because their life experience tells them that “been there done that. This too shall pass.” Pain works better on younger people who have a need for more immediate gratification.

Bottom line is that pricing is an effective marriage between cost to produce, what people will pay, and the story that motivates them to buy.

To Your Success,

Ron Finklestein
www.BusinessGrowthexperience.com

ron@businessgrowthexperience.com

330-990-0788

In 2003, Tim Connor published a book called Soft Selling.   In it, he compared how poor salespeople and successful salespeople managed their selling time differently.   He allocated the salesperson’s time into six major categories:

·   Prospecting

·   Sales Presentation

·   Service

·   Administration

·   Travel

·   Self-Improvement

He found that when it came to time management, poor salespeople allocated their time as follows:

·   10% on prospecting,

·   23% on sales presentation,

·   15% on service to others,

·   30% on administration,

·   20% on travel,

·   and a meager 2% on self-improvement.

These numbers are stunning at first glance if you believe and take Connor’s numbers seriously.

Note that only 10% of a salesperson’s time was being spent on prospecting and a whopping 30% of their time was being spent on administrative duties.    In other words, the salespeople who failed were spending more time managing their paperwork and administrative duties than managing or growing their sales pipeline.

10% of a poor salesperson’s time was being spent on prospecting.  It’s no wonder their sales were falling short of their expectations and their sales pipeline remained empty. They were spending more time on paperwork and presentations when they should have been out looking for new suspects to qualify. Contrast these numbers with how well successful people managed their time when it came to selling.  Connor found that good salespeople spent their time as follows:

·   45% on prospecting for new business,

·   10% on their sales presentation,

·   20% on service to others,

·   5% on administration,

·   10% on travel,

·   And 10% on self-improvement.

If you want to learn how to get better at sales and be seen as a partner to your customers check out Collaborative Selling. To learn more go to www.akris.net 

Sincerely,

Ron Finklestein
Business Growth Facilitator
www.businessgrowthexperience.com  

In a Business Growth Experience meeting we discussed how to identify high potential individuals. One trait that surface over and over was ownership – specifically taking ownership of a given situation.

It was suggested people who lack ownership used words like: I should, I must, I had no choice, I had to, and other made me do it. The stories they tell are other focused: they did this, you should hear what happened to me, etc. Excuses are a big part of their lives. It is always someone else’s fault.

People who embraced ownership used words like: I choose, it was my responsibility, I decided, and the stories they tell are focused on “I.” They ask questions like “why am I…?”, “in what ways can I…? ,“ why did I fail to communicate effectively with…?”, “how can I do things better?”, and “how can I change this situation?

Which side of the equation do you live on? Do you take ownership for your life, business, results, and relationships?

If you do not own your situation how can you change it? What kind of person do you want to become? What kind of person do you want to hang out with? Remember, there is no partial ownership. It is not like owning a time share. You either own  it or you don’t.

Ron Finklestein

ron@ronfinklestein.com
330-990-0788

www.ronfinklestein.com

To receive these posts directly please go to www.businessgrowthexperience.com and sign up for the free eBook, “Six Questions Your Prospects want Answered before the Buy.” You will then be added to the email list.

To receive great business training at an even better price please check out www.aboutbusinesssuccess.com

Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development.

Marketing is designed to persuade you to take a specific action (call now, space is limited), or not do something (don’t throw that away, recycle it).

People have become cynical. Marketing has become so sophisticated that people feel tricked into doing something only to find the product or service did not perform as stated or expected. We are inundated with thousands of marketing message daily from people trying to part us from our time, energy and money.

What’s a marketer (business owner) to do? I have new and powerful marketing technique that is guaranteed to work. What is it you ask?

It is quite powerful. You simply market your products and services with Integrity. Integrity is defined as adherence to moral and ethical principles; soundness of moral character; honesty.”

Wouldn’t it be great when we encountered someone selling a product or service that interested us that we felt we could trust the person or company? That we could have an open dialog; that the message was to be consistent and had integrity. The honesty was there.

There are six questions your prospects wants answered before they buy. You can download the report at http://www.aboutbusinesssuccess.com. This report will help you communicate your message with honesty and integrity.

This message was prompted by a bad experience I had will my bank. I should say my old bank – I just left them. Here is what happened. I received my home equity line statement from my bank and the bank demanded the loan be paid in full. We are not talking about a small about of money. I called customer service to see what was going on. I was told my house was in the collections and foreclosure process, I could do nothing to stop it, and no one I could call. The process must run its course. They told me I was late 30 times (BTW, I was never late.) When I suggested they made an error, I was told I was lying.

I spent hundreds of hours trying to solve this (as a small business owner this time away from my business was quite painful) finding the right people to talk too, feeling really stressed out and helpless because of the stress it put on my family, only to find out they made a mistake. My house was not in foreclosure, it was not in collections, and all was fine.  I did not get so much as a letter of apology. I think they were afraid I would sue. Don’t worry, I am not that kind of person. The letter I did get, saying my credit was not damaged,  did not have a signature. The collection letters I received that had a phone number would not return my calls. I was even told they called me and I know they did not because I have just one phone I use for all call and the call log does not lie.

While I am going through all this I see the banks’ commercials on TV about how easy this bank is to work with, how much they care about their customers and how responsive they are to their customers’ needs. I was quite angry that there was a total and complete disconnect between their message and their actions. At this time, I should point out that I had been with this bank over 30 years. I am in process of changing banks. I paid off the loan in questions, and I am creating an arm’s length relationship with my new bank.

Contrast that with the city where I now live. They put in a new sanitation line on my property that caused all kinds of water  problems in my yard. It has been a slow process but they are taking ownership and fixing the problem at their expense and the investment they are making is not insignificant.

Problems will happen. It is how you handle the problem that is important. Which organization was more in integrity with their customers? Is your message congruent with your organization’s action?  Do you deliver what you say you will deliver? Is your marketing message consistent with your company’s actions? All people want is to be treated fairly and honestly. Do you allow people in your organization to do that?

Do you handle your customer problem with integrity? Do you handle your sales with integrity? Do you live your life with integrity? Do you market with Integrity? Are you seeing a theme here? Being in Integrity is all that you do and be? The true disconnect is when your actions are not consistent with your words.

Ron Finklestein

Http://www.businessgrowthexperience.com
ron@akris.net
330-990-0788

Focus is principle number 6 of my Nine Principles for Inspired Action.

After working with a client in the Business Growth Experience and suggesting she gets focused, I received the following email less tha a week later.

“I also want to give you some feedback on a suggestion you made for me in the last Business Growth Experience meeting. We discussed just focusing on 3 types of businesses. Well I’m getting more referrals for those types of businesses. I’m truly amazed. I’ve received about 10 referrals between cleaning, insurance, and real estate in the last week. Thank you.”

Stop chasing the money. Get focused on your customer. The money will come.

Ron Finklestein
www.businessgrowthexperience.com
ron@businessgrowthexperience.com

As a business coach I work with people who could improve their results and productivity by making simple yet powerful changes in their approach to decision making. If you are not achieving your desired results, here are ten possible reasons why.   As you read, think about what you are doing and why you are doing it. The biggest reason productivity suffers is because of poor decision making. This wastes time and valuable resources. Time is wasted when we confuse activity with accomplishment. Activity is purposeless action. Accomplishment is purposeful action that leads to the results you want.

Getting clear on what is important and focusing on those activities will increase your productivity, save you time, and simplify your life. Take a look at these 10 time wasting, productivity robbing, and frustrating actions people take. How many of these apply to you?

1. Not staying focused. Stay focused on what is important and ignoring any other opportunity that comes along will increase productivity. Jumping from activity to activity will ruin your productivity!
2. Stop Multi-Tasking. You cannot focus and do multiple things well. Your productivity suffers. You think you got a lot done but none are done well and you would have completed more had you stayed focused. Studies show that focused activities allows you accomplish more.
3. If you are a business owner do not discount your product. You are not the Banker. On more than one occasion I wanted to help someone so I gave them some help by discounting my product. The ones that I offered this help to were the ones who valued it the least, who took the most time and accomplished the least.
4. You do not need to be an expert. People will be confused if you explain every detail. They really want to know why it works not how it works. It helps with your confidence level to know this info but you do not have to tell everyone unless they ask. Do not spend time trying to figure out every nuance of your product. Just go do what you have to do. If someone asks you a question you cannot answer, tell them you will find out and set a date and time when you will get back with them.
5. Stop waiting for your family’s approval. They want you safe and many time what you want, they see as risky. It is your life. Live it by your rules not theirs! Decide. Take action.
6. Stop going to networking events. Spend your time where your prospects are, not where it is safe. Most people you meet at networking events want to sell you their product. That is why they are there. I cut way back on my networking because the same people show up. They were becoming more like reunions.
7. Avoid the tire kicker. They want to tell the world they tried everything when in reality they will suck you dry and never take action. Do not waste your energy on tire kickers. On the flip side, work with people who are where you want to be. Be open and coachable. This will shorten your time to success.
8. Why do you do what you do? To be truly successful, spend as much time working on you as you do on your business. Results happen when you change what you do. The best way to change what you do is to change how you think. This could be learning new things, taking different actions, and being exposed to people who think differently than you do.
9. Stop believing the wrong thing. It is not skills that hold us back but our beliefs. Anyone can learn anything, assuming they have the desire and interest. I cannot tell you how many audio programs I listened to and did not implement what I learned. I would then listen to the same program 10 years later and wonder why I did not trust (believe, implement, execute, etc) what I first learned. I think of all the time I wasted.
10. Do not believe your limitations. Those limitations are things you learned as a child and you do not have to have the same beliefs now. It is not your fault if you are not happy with your life as it exists today but you are responsible and you can change it. As Michelangelo once said, “The greater danger for most of us lies not in setting our aim too high and falling short, but in setting our aim too low and achieving our mark.” Aim High  and take purposeful action

Call today for a free consultation. I can be reached at 330-990-0788

Ron Finklestein

Business Coach

ron@businessgrowthexperience.com

http://www.aboutbusinesssuccess.com

LEADERSHIP

Leadership is a powerful word.  With it, there is an amazing amount of responsibility,  should you decide to assume the role of a Leader.  Often the question of are leaders born or are they made is frequently debated.  I believe both situations exist;  just as someone is born with a gift to be an artist, pro athlete, talented musician, actor or actress.  You can be born with the gifts to be a leader.  Can you become a leader?  I believe you can.

Leadership is reserved for those individuals that have vision, passion, compassion, drive, desire and unending will to attend to a higher level.  It may be as simple as having the leadership for your family.  To have them take the safe path, keeping them out of harms way, demonstrating through actions the correct and best way to get things accomplished.  Leadership is not attained by a title such as supervisor or business owner.

Leadership is a constant demonstration of one’s ability to lead through action with passion and purpose to illustrate the intended result.

While working in the business world, I have seen too many times  management just delegate responsibility or tasks without knowing first hand what it takes for the desired outcome  they look for.

Leaders are respected and listened to because they have demonstrated time and time again they have done what it takes to overcome and are willing to demonstrate to others through action and gain the respect needed to be valued and listened to.

The majority of leaders should know and understand that people are the core building blocks of their team and/or organization.  To be an effective leader, you need to understand the core building block of your people and their respective values.

Many organizations just look at their people in a professional capacity. This short sighting will miss the mark.  To ensure your leadership fits and attracts the right people, doing the right things take into account all the roles each person comes to work with, within and outside their team or organization.  You may have to address their personal roles outside of work such as parent, little league coach or volunteer.

Many times a person’s role shows up at work.  A leader is no different and you must understand and be aware of it.  The right leader will identify their own growth and development and prioritize them.

Keep in mind, you get the people you deserve.  It is our decision.  For you to attract and lead better people, you need to become the leader that those people need and deserve.  That means you first need to invest in yourself.  Keep improving one of your strengths and make your weaknesses strong.

Leadership begins from within.  Identify core roles, prioritize them and plan on development and then acting on them.  Any relationship begins with you.  Leadership begins with you.  To be effective, it is dependent on your ability to communicate well.

All communication begins with a thought before it is translated into words and messages. How many of us have allowed ourselves to speak first and think later?  What was the result?  In many circumstances, it created some unwelcome ripples in our life and in our leadership.  With sound leadership, our internal and external communication must be open, honest, clear and timely and at times radical.    When our thoughts line up with our words, our actions will follow in alignment.  You are congruent.  You walk the talk.  When you do that, people do what people see.

Be creditable.  This is who you are.  A creditable leader has quality of relationships and has earned the right to lead, versus it being a granted position.  Leaders are authentic, trustworthy, and compelling.

Be competent in what you do.  Leaders are expected to get it correct, which means problems need a proactive approach.  Usually problems will stem from three areas-people, strategy and execution. Your problem will most likely always fall into one of the three categories.  Identify which one and solve it.

Lastly, I want to mention consequences.  How do you do things and what was the consequence of your action?  How did you make your decision?  How did you choose to communicate your decisions and what was the impact on others?

Decide if you are a leader or if you need to work on yourself in some capacity to become a leader!

Dale Stefancic

To Your Success,

Ron Finklestein
330-990-0788

www.aboutbusinesssuccess.com

Aboutbusinesssuccess.com is a web site devoted to your personal and business growth. It contains marketing articles, personal growth videos and relationship building strategies.

Ron Finklestein
Business Growth Facilitator
ron@ronfinklestein.com
330-990-0788

Choosing a Legal Structure for Your New Business

One of the first things that an entrepreneur has to do when
starting a business is decide on a business ownership structure. Here, we
outline the different structures, helping you find the business solutions
that best suit your startup and understand its tax implications.

1.  Sole  Proprietorship

A sole proprietor is someone who owns an incorporated business
on their own. In this structure there is no legal distinction between owner and
business and, therefore, the owner has complete control over and liability for
the business, including the debts and legal actions against the business. In
sole proprietorships the profit is “passed through” to the owner and the business
profits will be documented on the individual tax return, Form 1040.

Many people consider the sole proprietorship to be the most
simple and straightforward business organization because you don’t have to file
any specific forms (like income tax forms) or pay massive startup fees.
However, on the downside a sole proprietor is fully responsible for all debts
and has limited financial opportunities, making it
difficult or impossible to raise capital from investors.

The taxable year is the same as the owner’s: a calendar year. As
mentioned above, a sole proprietor must fill out a Form 1040-ES (Estimated Tax
for Individuals). The profits or losses are calculated on Schedule C. Earnings
from the sole proprietorship are subject to the self-employment tax, Schedule
SE, Form 1040, which is a contribution to Social Security and Medicare. You can
calculate the self-employment by multiplying net earnings from self-employment
by the self-employment tax rate. The self-employment tax rate for 2011 is 13.3%
(10.4% for Social Security and 2.9 for Medicare). However, you can deduct half
of your self-employment tax contribution in figuring your gross income by
filing a Form 1040 Schedule C (line 27). You can visit http://www.irs.gov/individuals/article/0,,id=130102,00.html
to determine eligibility for the Earned Income Tax Credit (EITC). Other forms
include the Form 941 (Employer’s Quarterly Federal Tax Return) and Form 940
(Employer’s Annual Federal Unemployment Tax Return).

To find these forms see http://www.irs.gov/businesses/small/article/0,,id=98202,00.html

2.  Partnership

A partnership involves two or more people who carry on a trade
or business together. This structure of business, like a sole proprietorship,
“passes through” profits or losses to its partners and these partners pay taxes
on their share of the profits in their individual income tax returns.

Instead of the Form W-2, the partnership must turn in a Schedule
K-1 and the Return of Partnership Income (Form 1065).Then, each partner reports
their profit and losses with the individual tax return (Form 1040) and Schedule
E.

Forms: http://www.irs.gov/businesses/small/article/0,,id=98214,00.html

3.  C Corporation

In a corporation, shareholders exchange money or property for
the corporation’s capital stock and usually take the same deductions as a sole
proprietorship for its taxable income. C corporation refers to any corporation
that is taxed both in corporate income and shareholder income (as opposed to
passing through the income to the owners like a sole-proprietorship or
partnership). This process is sometimes referred to as the “double tax.”

In a c corp you can implement “income splitting.” If the owners
keep some income within the corporation (“retained earnings”), it will be taxed
at typically lower corporate income tax rates, not at the individual tax rates of
the shareholders. These retained earnings are reported on Form 1120. C corps
also have to file the Estimated Tax for Corporations, 1120-W, quarterly.

Forms: http://www.irs.gov/businesses/small/article/0,,id=98240,00.html

4.  S Corporation

In an S corporation you have both limited liability while paying
income taxes like a sole proprietor or partner. S corps are essentially
corporations that have chosen to pass corporate income, losses, deductions, and
credit through to their shareholders; they are not subject to Self-Employment
Tax.

The IRS defines an S corporation as one that is 1) a domestic
corporation, 2) has only allowable shareholders, 3) has no more than 100
shareholders, 4) has one class of stock, and 5) is not an ineligible corporation
(like an insurance company or domestic international sales corporation).

To become an S corp the corporation must first turn in Form 2553
Election by a Small Business Corporation. An S corp “passes through” its net
income to its shareholders via a Schedule K-1 in Form 1040 (Federal Income
Tax). The salary paid to the employee-owner is subject to employment taxes
(940), but the remaining income, the distribution from the S corp, is not subject
to employment tax. The IRS requires, however, that the salary allotted is
“reasonable,” to prevent shareholders from giving themselves extremely low
salaries, attributing the rest of their earnings to distributions, and thereby
avoiding high employment tax.

5.  Limited Liability Company

If your business will most likely engage in some sort of riskier activity (the use of hazardous
materials, selling of edible goods, caring for children or animals, requiring
injury-prone actions), you should opt for the LLC, which protects your personal
assets from business debts and claims. There are no tax advantages (or disadvantages) to forming
an LLC: LLCs with one owner file for taxes as a sole-proprietor, while LLCs
with multiple owners file taxes as partnerships.

This is because the federal government does not identify LLC as
a classification, so a member (and owner of an LLC) must file as a corporation,
partnership, or sole proprietorship tax return. A Form 8832 is filed to
establish a business classification. Owners of an LLC may also have to pay
additional state taxes, or “franchise taxes,” in addition to the income
tax.

While understanding the legal side of business can be
complicated and, well, “taxing,” hopefully this summary of the basics has clarified
it a little!

James Kim is a writer for Choosewhat.com. ChooseWhat is a company that provides
product reviews and test data for business services and products.  Their
goal is to help small companies make informed buying decisions on business
solutions that help their business.

 entrepreneurship,  small business skills, marketing and most any topic relating to  small business skills and small business success.

The common thread tying all my topics together is called The One Degree Difference. We must learn to think differently about our business in order to get different results.

My book Nine Principles for Inspired Action discusses the nine behaviors succussful people implement and there are examples of how people learn to think differently and how this change in thinking leads to different actions.

The One Degree Difference simply stated is that it does not require a massive change to get massive results. It only takes a small change in our thinking, a one degree change, to get massive results.

Change your thinking change your business.

Ron Finklestein

Small Business Speaker
330-990-0788
ron@akris.net

Contact me to see how you can learn more about the One Degree Difference.