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How to Head Off Small Business Fear in This Economy

How to Head Off Small Business Fear in This Economy

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    This is a scary time. Everyone you know knows at least one person who has gotten downsized and new jobs are scarce.  People are scared to start businesses and they’re scared to invest in their existing businesses right now. Part of it is that in an economy like this, mistakes are even more costly than before. And part of it is that people are just plain scared to lose anything right now. What you need to know is that the surest way to lose and make mistakes now is to NOT invest in your business. The only way to win right now is to face your fear and keep moving forward in the right way. Today, I’ll give you a few suggestions for how you can move ahead and steer clear of costly mistakes.

    As with everything else, realize that the current economic conditions are temporary.

    I’ve said it before, but it bears repeating. The first thing to do is remember that economic conditions like we’re currently experiencing are temporary. Virtually every financial expert and publication has said that the recession won’t last forever. So when you start to experience fear about the economy and what it means for you, first and foremost, realign your thinking so you’re thinking about it as a temporary condition that will eventually resolve itself.

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    Keep investing in yourself and your business.

    In this economy, a lot of business owners are cutting corners. I can’t tell you how many people I’ve talked to who are cutting out key professionals, reducing their marketing budgets, and eliminating continuing education. What these business owners fail to realize is that it’s absolutely crucial that you continue to invest in yourself and your business to keep things moving in an upward trajectory. But be smart and invest in the right things. This leads me to my next point.

    Cut costs, but cut the right costs.

    When you cut costs, know which costs to cut. Analyze your business expenses and make sure you’re tracking everything. Look for ways to save. For example, if you’re low on printed material like your marketing flyers or business cards, you may be able to find a printer that charges less, but offers the same quality as your old printer. This extends beyond products you use for your business. Examine your business relationships. Are there some service providers you aren’t happy with? Now’s the time to make a switch to someone who will provide you with better service at a better rate. In this economy, you can get great service at a much more affordable rate than ever before. ..and you should.

    That said, don’t cut the essentials! You need to continue learning and improving your skills, so cutting back on continuing ed is a mistake. You don’t need to go to every workshop and seminar, but you shouldn’t eliminate these opportunities to learn, network, and increase your visibility altogether. And don’t start doing your own graphic design or having your son’s best friend design your web site. Cuts like this can result in catastrophe — web sites that don’t function properly, brochures that look unprofessional, and the appearance that your business is small-time, unsuccessful, or fly-by-night. And none of these are words you want applied to your business.

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    Learn from Pareto.

    Another place you can save in your business is by applying Pareto’s 80/20 principle to your client list. The 80/20 rule says (in a nutshell) that the bulk of your business comes from about twenty percent of your client roster. That means you may be expending a great deal of effort and expense marketing to and serving the eighty percent of your clients who aren’t producing very much of your income. So why not go through your client list and do some weeding? You’ll save money in marketing costs and you’ll have more time to cater to your most-productive and profitable clients.

    Another way to implement Pareto’s 80/20 rule is to look at your current products and services. Which twenty percent of your products and services generate eighty percent of your profit? Concentrate on improving those and developing more products and services like them. You may even eliminate the products and services that aren’t generating enough interest.

    Marketing, marketing, marketing.

    One way you can guarantee that your business will fail is if no one knows you exist. So don’t stop marketing your business to save money. That’s the wrong cost to cut. Instead, keep up your marketing efforts, but like your client list, examine which efforts are providing the biggest pay-off. Cut back on the ones that aren’t bringing in clients and beef up the ones that are drawing attention. And, consider implementing more PR methods into your business so you can garner some good press for free.

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    If you’ve been using direct mail as a marketing tool, check the quality of your list. How long have you been mailing marketing materials to people who haven’t responded? Pick a cut-off date and eliminate anyone who hasn’t responded since that date, and you’ll dramatically reduce your printing and postage bills without losing the people who actually respond to your marketing efforts.

    Once you’ve got ’em, wow ’em.

    It won’t do you much good to acquire clients if you can’t serve them and serve them well. So once you’ve drawn them in with your PR and marketing, you’d better make sure you wow them. It’s about more than doing a good job. It’s about doing a great job. Deliver at least on time, if not early. Delight, surprise, and overdeliver. Make sure your clients and customers know you appreciate their business. Always thank them.

    Also, survey the clients who’ve stayed with you for a long time. Find out what you’re doing right and amp up those efforts. And find out what you could do better, and improve on that, and you’ll see your client retention rates improve even more.

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    Save money by hiring experts.

    Hiring the right experts can actually save you money in your business. Imagine all the mistakes you’ve made in your business history. Recall all the professionals you hired who didn’t work out – the web developer who charged a ridiculously high fee for every single update, the assistant who didn’t do her job, the graphic designer who charged you a fortune for a logo you now hate. Remember how much each of those mistakes cost you? Hiring a business consultant who has a Rolodex of professionals who can do that work at the highest quality, but at reasonable rates, can save you a lot of money in the long run, and in the end, the savings more than offset the price of the consultant. Plus, that same consultant can help you avoid other, costly errors, and make suggestions for other ways to optimize and save.

    But beware: “consultants” are a dime a dozen out there. So find someone you can trust and someone who can really deliver, otherwise you’ll spend much more than you’ll save.

    In this economy, it’s only natural that there’s a lot of fear. But knowing it’s temporary, conducting your marketing in the smartest way, continuing to invest in your business in the right way, and building a team of experts who you can trust to deliver can keep your business growing and minimize your fear. Stay strong – this won’t last forever!

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    Last Updated on March 21, 2019

    11 Important Things to Remember When Changing Habits

    11 Important Things to Remember When Changing Habits

    Most gurus talk about habits in a way that doesn’t help you:

    You need to push yourself more. You can’t be lazy. You need to wake up at 5 am. You need more motivation. You can never fail…blah blah “insert more gibberish here.”

    But let me share with you the unconventional truths I found out:

    To build and change habits, you don’t need motivation or wake up at 5 am. Heck, you can fail multiple times, be lazy, have no motivation and still pull it off with ease.

    It’s quite simple and easy to do, especially with the following list I’m going to show to you. But remember, Jim Rohn used to say,

    “What is simple and easy to do is also simple and easy not to do.”

    The important things to remember when changing your habits are both simple and easy, just don’t think that they don’t make any difference because they do.

    In fact, they are the only things that make a difference.

    Let’s see what those small things are, shall we?

    1. Start Small

    The biggest mistake I see people doing with habits is by going big. You don’t go big…ever. You start small with your habits.

    Want to grow a book reading habit? Don’t start reading a book a day. Start with 10 pages a day.

    Want to become a writer? Don’t start writing 10,000 words a day. Start with 300 words.

    Want to lose weight? Don’t stop eating ice cream. Eat one less ball of it.

    Whatever it is, you need to start small. Starting big always leads to failure. It has to, because it’s not sustainable.

    Start small. How small? The amount needs to be in your comfort zone. So if you think that reading 20 pages of a book is a bit too much, start with 10 or 5.

    It needs to appear easy and be easy to do.

    Do less today to do more in a year.

    2. Stay Small

    There is a notion of Kaizen which means continuous improvement. They use this notion in habits where they tell you to start with reading 1 page of a book a day and then gradually increase the amount you do over time.

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    But the problem with this approach is the end line — where the “improvement” stops.

    If I go from reading 1 page of a book a day and gradually reach 75 and 100, when do I stop? When I reach 1 book a day? That is just absurd.

    When you start a habit, stay at it in the intensity you have decided. Don’t push yourself for more.

    I started reading 20 pages of a book a day. It’s been more than 2 years now and I’ve read 101 books in that period. There is no way I will increase the number in the future.

    Why?

    Because reading 40 to 50 books a year is enough.

    The same thing applies to every other habit out there.

    Pick a (small) number and stay at it.

    3. Bad Days Are 100 Percent Occurrence

    No matter how great you are, you will have bad days where you won’t do your habit. Period.

    There is no way of going around this. So it’s better to prepare yourself for when that happens instead of thinking that it won’t ever happen.

    What I do when I miss a day of my habit(s) is that I try to bounce back the next day while trying to do habits for both of those days.

    Example for that is if I read 20 pages of a book a day and I miss a day, the next day I will have to read 40 pages of a book. If I miss writing 500 words, the next day I need to write 1000.

    This is a really important point we will discuss later on rewards and punishments.

    This is how I prepare for the bad days when I skip my habit(s) and it’s a model you should take as well.

    4. Those Who Track It, Hack It

    When you track an activity, you can objectively tell what you did in the past days, weeks, months, and years. If you don’t track, you will for sure forget everything you did.

    There are many different ways you can track your activities today, from Habitica to a simple Excel sheet that I use, to even a Whatsapp Tracker.

    Peter Drucker said,

    “What you track is what you do.”

    So track it to do it — it really helps.

    But tracking is accompanied by one more easy activity — measuring.

    5. Measure Once, Do Twice

    Peter Drucker also said,

    “What you measure is what you improve.”

    So alongside my tracker, I have numbers with which I measure doses of daily activities:

    For reading, it’s 20 pages.
    For writing, it’s 500 words.
    For the gym, it’s 1 (I went) or 0 (didn’t go).
    For budgeting, it’s writing down the incomes and expenses.

    Tracking and measuring go hand in hand, they take less than 20 seconds a day but they create so much momentum that it’s unbelievable.

    6. All Days Make a Difference

    Will one day in the gym make you fit? It won’t.

    Will two? They won’t.

    Will three? They won’t.

    Which means that a single gym session won’t make you fit. But after 100 gym sessions, you will look and feel fit.

    What happened? Which one made you fit?

    The answer to this (Sorites paradox)[1] is that no single gym session made you fit, they all did.

    No single day makes a difference, but when combined, they all do. So trust the process and keep on going (small).

    7. They Are Never Fully Automated

    Gurus tell you that habits become automatic. And yes, some of them do, like showering a certain way of brushing your teeth.

    But some habits don’t become automatic, they become a lifestyle.

    What I mean by that is that you won’t automatically “wake up” in the gym and wonder how you got there.

    It will just become a part of your lifestyle.

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    The difference is that you do the first one automatically, without conscious thought, while the other is a part of how you live your life.

    It’s not automatic, but it’s a decision you don’t ponder on or think about — you simply do it.

    It will become easy at a certain point, but they will never become fully automated.

    8. What Got You Here Won’t Get You There

    Marshall Goldsmith has a great book with the same title to it. The phrase means that sometimes, you will need to ditch certain habits to make room for other ones which will bring you to the next step.

    Don’t be afraid to evolve your habits when you sense that they don’t bring you where you want to go.

    When I started reading, it was about reading business and tactic books. But two years into it, I switched to philosophy books which don’t teach me anything “applicable,” but instead teach me how to think.

    The most important ability of the 21st century is the ability to learn, unlearn, and relearn. The strongest tree is the willow tree – not because it has the strongest root or biggest trunk, but because it is flexible enough to endure and sustain anything.

    Be like a willow, adapting to the new ways of doing things.

    9. Set a Goal and Then Forget It

    The most successful of us know what they want to achieve, but they don’t focus on it.

    Sounds paradoxical? You’re right, it does. But here is the logic behind it.

    You need to have a goal of doing something – “I want to become a healthy individual” – and then, you need to reverse engineer how to get there with your habits- “I will go to the gym four times a week.”

    But once you have your goal, you need to “forget” about it and only focus on the process. Because you are working on the process of becoming healthy and it’s always in the making. You will only be as healthy as you take care of your body.

    So you have a goal which isn’t static but keeps on moving.

    If you went to the gym 150 times year and you hit your goal, what would you do then? You would stop going to the gym.

    This is why goal-oriented people experience yo-yo effect[2] and why process-oriented people don’t.

    The difference between process-oriented and goal-oriented people is that the first focus on daily actions while others only focus on the reward at the finish line.

    Set a goal but then forget about it and reap massive awards.

    10. Punish Yourself

    Last two sections are pure Pavlovian – you need to punish bad behavior and reward good behavior. You are the only person who decides what is good and what is bad for you, but when you do, you need to rigorously follow that.

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    I’ve told you in point #3 about bad days and how after one occurs, I do double the work on the next day. That is one of my forms of punishments.

    It’s the need to tell your brain that certain behaviors are unacceptable and that they lead to bad outcomes. That’s what punishments are for.

    You want to tell your brain that there are real consequences to missing your daily habits.[3]

    No favorite food to eat or favorite show to watch or going to the cinema for a new Marvel movie- none, zero, zilch.

    The brain will remember these bad feelings and will try to avoid the behaviors that led to them as much as possible.

    But don’t forget the other side of the same coin.

    11. Reward Yourself

    When you follow and execute on your plan, reward yourself. It’s how the brain knows that you did something good.

    Whenever I finish one of my habits for the day, I open my tracker (who am I kidding, I always keep it open on my desktop) and fill it with a number. As soon as I finish reading 20 pages of a book a day (or a bit more), I open the tracker and write the number down.

    The cell becomes green and gives me an instant boost of endorphin – a great success for the day. Then, it becomes all about not breaking the chain and having as many green fields as possible.

    After 100 days, I crunch some numbers and see how I did.

    If I have less than 10 cheat days, I reward myself with a great meal in a restaurant. You can create your own rewards and they can be daily, weekly, monthly or any arbitrary time table that you create.

    Primoz Bozic, a productivity coach, has gold, silver, and bronze medals as his reward system.[4]

    If you’re having problems creating a system which works for you, contact me via email and we can discuss specifics.

    In the End, It Matters

    What you do matters not only to you but to the people around you.

    When you increase the quality of your life, you indirectly increase the quality of life of people around you. And sometimes, that is all the “motivation” we need to start.

    And that’s the best quote for the end of this article:

    “Motivation gets you started, but habits keep you going.”

    Keep going.

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    More Resources to Help You Build Habits

    Featured photo credit: Anete Lūsiņa via unsplash.com

    Reference

    [1] Stanford Encyclopedia of Philosophy: Sorites paradox
    [2] Muscle Zone: What causes yo-yo effect and how to avoid it?
    [3] Growth Habits: 5 Missteps That Cause You To Quit Building A Habit
    [4] Primoz Bozic: The Lean Review: How to Plan Your 2019 in 20 Minutes

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