Wednesday, April 30, 2014

Why Having an Executive Business Coach is Scarier Than Dating Angelina Jolie

In the last twenty years, I have been working as a coach to owners of contracting businesses, I've come to realize more owners prefer not having a coach to help them with their business, then the number that actually engages coaching services. The question is. Why is that?

The answer to the problem is two-fold.

One. Too many contracting owners allow their ego to get in the way. They feel, that hard work, long hours, and greater risk are the only way to succeed, let alone, admit they need help.

Two. Accountability. Some do not want to be held accountable for their actions. I guess it is a lot easier to blame anyone or anything else. The problem with this approach is that the problem never goes away.

For me, as an executive business coach, I have to talk to 100 prospects before I can land a client. That means at least 99 continue  with the same problems, never improving. Think about that. 

For that 1% that do engage my services, they proceed to solve their problems and mastering their businesses, getting a huge R.O.I. for the coaching, thereby making more money for themselves, and having more time for themselves. 

You would think more would prefer success over hard work and low returns, unfortunately, that is not the case. Human nature is somewhat baffling.

1% seems to be a specific number. 1% of those who are successful earn more money than the average 99%. You would think more of the 99 would want to join the one percent.

Meanwhile, I guess it is a lot less scary to be dating Angelina Jolie.

Thursday, April 3, 2014

Working for Peanuts Only Feeds the Elephant.

"I'm working 16 hours a day, and I'm still not making money!"

If that is you, you need to stop working for peanuts!

Since I work with contractors from all over the country, I typically find their pricing model is all wrong. Simply put, they are working for peanuts. Peanuts are okay if you are an elephant. However, working for peanuts is not good for you or your business and its survivability.

A good pricing model must cover your costs and generate enough for your reasonable wage and profit. This is where too many contractors make this fatal mistake. They allow the market to drive their price down into the cellar.

The steps to correcting this is to have a real understanding of your numbers. That means, having them in a format that allows you to see what it is costing you, what your burden or overhead really is, and what you project you can do over the year.

Nevertheless, let me warn you. I see lots of numbers from hundreds of contractors. In 9 out of 10 instances, their Chart of Accounts is wrong and misleading. Why? Because most accountants and CPAs that set them up are inexperienced on what makes a contracting business work.

If the Chart is incorrect, that means all the assumptions being made are inaccurate. This leads to assuming you are making money when you are really leaking money.

I often hear contractors say that their competition is taking all the work for nothing. I say, let them! The earlier they feast on the peanuts, the sooner they will find themselves in financial trouble.

Don't assume yours are correct. I strongly urge you to find out what you have, and what you need to do to correct them.

The bottom-line is this. You're in business to make money. You need to earn a weekly wage just like the wages you pay your help. However, in order to grow your business and survive, you need to make a profit on top of everything else. Get on top of your financials. This is the key to success.