Making Decisions on Emotions

Going with your gut may not always be the best approach.  Do you find that you tend to take the easy way out when it comes to important business decisions, and make snap judgments that don’t often turn out very well?  Why does that happen?  Well, you may be under stress.  Or you don’t have time to think it through.  Or, it’s just easier.  Or the “best” decision may seem too hard.

We all make decisions based on right brain/left brain processes, or in other words, emotional or rational thinking.  For some, rational thinking wins out over emotions, and for others, emotional thinking carries the day.  Neither is necessarily right or wrong.  In business, however, we often make decision based on negative emotions, such as fear, dread, anger, or unpleasantness, among others.  Take hiring, for instance.  We fear making a bad choice, or we find the interviewing process unpleasant, so we either put off hiring someone who could make our life easier, or we hire quickly to get it over with so we can get on with more pleasant tasks.  Ever had those emotions?  How has that worked out for you?

On the other hand allowing our left brain to kick in for a bit and help us think through the options, the strategy, and the calculations pertinent to the decision can make our choices more successful.  I find that this happens all the time when it comes to price increases.  We typically fear the impact of a price increase, thinking we will lose customers and endure complaints.  But when we calculate the impact of the increase, the small odds of losing customers, and calmly think through how we will communicate the increase and reinforce our value, it makes it feasible, and successful.

Stress often causes an emotional decision that doesn’t consider all the facts.  Sometimes we cause our own stress just by being the boss.  We think we are expected to have all the answers, so there is stress that we will look weak if we don’t make a decision.  In reality, we look weak because of a bad decision, not because we made an emotional, and perhaps too quick decision.  And had we allowed our rational left brain to kick in, we may have realized that our employees could have figured it out on their own if we had let them.

I’m not advocating we all turn into super-rational beings like Star Trek’s Mr. Spock.  But I am suggesting that you increase your awareness of the impact your emotions make on how you run your business.  And if you find it hard to recognize the best way for you to make decisions, consider having a conversation with a business coach who can help you address the options and consequences of various decisions before they are made.

Why is Marketing so Tough for Small Business Owners?

Two of our local Chambers of Commerce regularly survey members about the kind of business resource help they would most like from the Chamber.  Over and over again, Social Media and Marketing lead the way as most popular topics desired.  In my work with business owners, marketing is commonly an area where owners most want to see improvement.  Most are confused by the options and choices available, as well as by the fact that many of the “old” marketing tactics aren’t working so well any more.

It seems as if marketing was simpler in the past.  You printed a brochure, ran various newspaper or magazine ads, maybe invested in a billboard, or radio, or even television advertising.  Yellow Page presence was a must.  And for every one of these tactics, the advertising provider could take care of the creation and the content.  Sure, there was a cost to it, as there is today, but it was relatively easy, and you spent as much as your budget would allow.  If you had the money, you could go the extra step of employing an ad agency to manage your entire campaign, assuring a bit more consistency and coordination.

As with most things in our culture, the internet has changed everything.  Formerly effective marketing tactics aren’t working as well.  Free or inexpensive communication has opened up incredible ways for us to spread our messages.  And although the potential for lower advertising costs is clear, the sheer number of options has made it much more difficult to decide upon the right mix of marketing tactics that will be most effective for your business.  Especially when you have no track record with them.

In addition, many of the newer marketing tactics require no money, but substantial amounts of time.  At least that is the perception.  Sure, you can still hire people to manage your overall advertising campaign, but the importance of content has become so critical that it is difficult to find the right people who can deliver the message as well as the owner or manager of the business.  I think that is what makes marketing so tough for small business owners.  We are already short on time in our lives, and the thought of giving up even more time, even for a cause that should improve our businesses, is a big mental hurdle to overcome.

So how can we make the use of newer marketing tactics easier to learn and implement?  There are probably thousands of ideas the experts offer to achieve that, but I’m only going to suggest three simple starting points:

• Stop and remind yourself of the purpose of your marketing efforts.  Like much in our lives, if we don’t know where we are going, how can we tell if we’re on the right course?  Thinking about what you want your marketing efforts to achieve will make it easier to choose the best tools to accomplish your goals.

• Change a little at a time.  Don’t try to re-do your entire marketing structure.  Pick the one thing you do that is least effective, and stop doing it.  Then try adding a new tactic that seems to fit with your overall purpose.

• Experiment.  Try the new tactic.  Learn how to use it.  Seek advice from someone who is already successful with it.  If it requires your time in order to implement it, be disciplined enough to stick with it long enough to become more efficient with it.

In this way, you change your marketing approach a little at a time.  The new tactic becomes habit.  It doesn’t feel so overwhelming.  Taking it one step at a time can adjust your marketing campaign from mediocre to high-powered.  When you look back at where you started, you’ll wonder what was holding you back in the first place.

How Bad Do You Want It?

As January winds down, most of us have long forgotten those New Year’s resolutions we set three weeks ago.  Why is that?  Are we that fickle?  Is our commitment to ourselves and others so unreliable?  Do we just lack the discipline to change our habits enough to create the conditions we desire?  Well, maybe all of the above.  But just as important, I think we often set resolutions that sound nice to have, but maybe not nice enough to inspire our dedication.  Without that, we struggle to do the work, spend the money, change our behaviors, or otherwise act in a way that moves us toward our goals. 

Most business owners have a desire for a more successful business.  Individual definitions of success vary, but usually it’s some combination of more sales, higher profits, a terrific team of people, greater business value, or individual income, lifestyle and wealth that business ownership calls to mind.  But small business owners typically get so caught up in the day-to-day demands of the business, they lose track of the big picture goal for their businesses and for themselves.  It is easy to convince yourself that you don’t have the energy to work on your goals when you are up to your elbows in the detail work of your business.

It’s a question of how bad we really want it.  Our goals, that is.  Are they just “window dressing” goals that make us sound good to those around us?  Or are they really goals that we will strive to make happen, sacrifice to gain, and focus on regardless of all the other distractions in our business and our life?

As a business coach, I know that one level of commitment to goals is the investment in a coach.  That’s an indicator that the owner feels so strongly about his/her striving for success that they are willing to put their money and their time on the line to work toward their goals, and to demand a level of accountability toward reaching them.  But even after working with a coach for some time, the novelty of that relationship can wear off.  In spite of progress, the owner can become weary of the effort.  It is not unusual for the coach to have a stronger desire for the success of the business than the owner!  When that happens, it’s time to go back and re-check the goals, re-set the commitment, and re-state the question, “how bad do you want it?”

Ask yourself, what success means to you.  What does it look like?  How much income does it give you?  What will your lifestyle be like when you reach it?  What kind of wealth will it create for you?  Does that picture bring to mind a strong enough desire to do what it takes to reach it?  Are you willing to make steady, relentless progress?  Will you reach out for help and support from others with the experience and skills to accelerate your efforts?

If so, you will work yourself into an elite group of self-made, successful people.  How bad do you want it?

Networking for Success

Recently, I had the enjoyable opportunity to speak to the Fond du Lac County Imagination Network of Wisconsin entrepreneurs and inventors group.  The topic was “Networking Doesn’t Have to Make You Cringe!”  The comments and feedback from the attendees illustrated to me once again how intimidating networking can be to those who haven’t had some training, or at least exposure, to the basics of effective networking.

The things that cause us to avoid networking, or to do it poorly (i.e. with few results) usually result from our own “head trash”.  These are the thoughts and fears we harbor that hold us back from doing those uncomfortable things that could actually bring us greater results.  Some of the head trash thoughts that are typical include the following:

• Networking events are just for socializing.  I get no business benefit from them.
• At networking events, it’s hard to have great conversations because of all the cliques that I’m not a part of.
• I’m not the pushy type, so I feel awkward about thrusting myself on other networkers.
• I don’t know how to tell people about my business in a way that piques their interest without dominating the conversation.
• I’m an introvert, so it’s hard for me to put myself “out there”.

Business owners often have an expectation that they should network, but they may not know why, or more importantly, how to go about it effectively.  So the first thing we have to do, is realize that networking has an important business function, and that it is a vital part of your business’s marketing plan.  Networking helps to generate leads, or find referral sources who will feed leads to you.  It is an effective marketing tactic if you work it (think of it as net-WORK-ing).  So the challenge most of us face is not knowing how to go about it in a way that gets us the results we expect from a good marketing tactic.

A good way to understand networking better is to go back to basics: 

• Have a plan of attack – Consider what you want to get out of a networking event.  How many business cards of new contacts do you want to collect?  How many quality conversations will you have?  How long will you spend “working” the event?  Remember, networking events can easily deteriorate into a series of comfortable social conversations, which typically don’t do much for your business intentions.
• Be prepared – It’s amazing how many people don’t bring business cards to a networking event.  Bring business cards and a pen (to jot down notes about contacts or your intended follow-up).  Have a 30-second introduction!  It’s important to be able to briefly state what your business is about in a way that is memorable, or that creates interest for the listener to learn more.
• Check your attitude – A positive, confident attitude does wonders for networking effectiveness.  People want to be associated with people who look and sound pleasant and successful.  Even if you’ve had a bad day, or facing a tough problem in your business, put it behind you for a couple of hours and act as if you are doing great.
• Use the perfect “pickup” line – In your dating days, you may have tried or heard a variety of corny pickup lines, but did you know that the best pickup line going is simply, “Hello, my name is _______”?  The best way to introduce yourself to someone at a networking event is to simply, a) SMILE, b) stick out your handshake hand, and c) say, “Hi, my name is _______”.  The beauty of this pickup line is that if you can’t remember it, you may find it written on your name tag!
• Ask questions.  Don’t sell – Ask about the other person(s).  Ask about their business, their history, their family, their interests.  Seek for ways that you might be able to help them.  Make it all about them, not about you.  But how will this help me attract interest in my business, you might ask.  Well what happens is that by being genuinely interested in them, you will create the perception that you like them, and they in turn will begin to know, like and trust you.  Eventually, they will ask about you, and you’ll have a chance to tell them about your business in a way that appeals to their business interests because of what you’ve learned.
• Focus – Be engaged with the person you’re speaking with.  Focus on them, and try not to be distracted by the other activity and people around you.  Good networking conversations only last 5-10 minutes, so you’ll have plenty of time to connect with others in the room.
• Ask for referrals – Every person you speak to may not be a good lead for your business, but they will be a potential source of a good referral.  Ask them who they know who might be interested in your products and services.
• Followup – Don’t waste the fruits of your networking efforts.  Followup by scheduling another get-together, or add them to your contact or newsletter lists.

Networking can occur almost anywhere and is an effective marketing tactic for all businesses, if done right.  It doesn’t cost much, other than your time, it builds your personal brand, and expands your network of contacts.  I love the following quote from Graham Southwell, National Director of BNI New Zealand:  “Networking is all about farming… not hunting.  Some people may take pride in being a hunter, but in today's competitive business environment emphasis needs to be on creating strong connections with other business people. Networking needs to come from the heart – not the head.... The truth is, using your head to network means you are too focused on the outcome and not cultivating relationship.  Cultivation is the key concept, as great networkers are farmers, not hunters.”