Business success Archives

5 Operational Challenges That Could Derail Your Business In 2024

December 8, 2023

In the dynamic world of business, real challenges demand decisive actions and a willingness to drive change. My experience in reviving a business serves as a vivid example of this.

When I took the helm of a company that was losing $20,000 a month, the situation was critical. The previous owner was on the verge of not making payroll, a crisis averted by my owners’ timely intervention and investment. From there, I focused on transforming five key operational areas, turning a dire situation into a thriving success story. This effort catapulted our profits to nearly $100,000 a month, culminating in the successful sale of the business.

This article is a journey through that transformation. It’s about sharing the strategies and insights that helped navigate and reshape a struggling business into a profitable venture. For business leaders facing challenges or looking to preempt them, these lessons are about fostering resilience and guiding your business toward a path of prosperity. Here, I combine practical advice with the wisdom gained from experience, aiming to empower others in their quest for business success.

Team Alignment: Ensuring The Right Fit For Success

The Team Evaluation: When I took over the struggling business, the first step was a critical evaluation of our existing team. Understanding each member’s strengths and weaknesses was key to our turnaround strategy. In this process, I found that many talented team members were simply in roles that didn’t suit them; and, regrettably, there were a few who didn’t fit with the upcoming changes, leading us to make the tough decision to part ways.

Strategically Expanding the Team: Following our team evaluation, our hiring strategy centered on finding individuals who were not just right for the roles but would also elevate our team’s overall dynamics. We sought people characterized by their passion, determination, and a consistent track record of excelling in almost everything they undertook.

Solution: Begin by thoroughly assessing your existing team. Identify not just the strengths and weaknesses of each member, but also consider if they are in the right roles where their talents can be best utilized. This evaluation can reveal hidden potential and opportunities for internal role adjustments. When expanding your team, look for candidates who not only have the necessary skills but also demonstrate desire, drive, and a history of excellence in their endeavors. This approach ensures that new hires not only fill the required roles but also contribute positively to the team’s dynamics, driving collective success. The goal is to create a team environment where collaboration, passion, and high performance are the norms, fostering a dynamic and effective work culture.

Consistent Customer Experience: Streamlining Consistency Across Operations

The Comprehensive Overhaul: A major breakthrough in transforming the business came from addressing the inconsistencies in our customer experience. We looked at every aspect of our operations to ensure a uniform and positive experience for every customer. Addressing this required a holistic approach, streamlining processes not just in customer service, but across all operational facets of our business.

Solution: To improve customer experience, it’s crucial to establish consistency in all operational processes. Review each interaction point within your business, from the initial contact to post-service or post-sale follow-up, and strive to make these experiences uniformly positive and engaging. By delivering consistently excellent service at every touchpoint, you build trust and encourage customer loyalty, which is essential for any business.

Goal Alignment: Harmonizing Team Performance With Business Vision

Setting the Business Compass: The first step in addressing our team’s inconsistent performance was to define clear, overarching goals for the business. These goals served as our compass, guiding the direction of every strategy and decision. It was crucial that these goals were not just ambitious but also resonated with the vision we had for the company’s future.

Translating Vision into Action: With the business goals in place, we then developed specific team and individual goals that aligned with these broader objectives. This alignment was key to ensuring that every effort and achievement at the team level contributed directly to the business’s overall success.

Solution: Start by setting clear and inspiring goals for your business as a whole. Then, break these down into specific, measurable goals for each team and individual. This approach ensures that everyone’s efforts are not only aligned but also contributing to the bigger picture. Embrace a coaching mentality in driving accountability, focusing on guiding your team toward these goals and fostering their growth. This strategy transforms accountability into a powerful tool for development, aligning team members’ efforts with the company’s overarching objectives. By doing so, you create a culture where each person understands and plays a vital role in the collective success of the business, leading to a more consistent and effective team performance.

Sales Process Inefficiency: Creating A Blueprint For Sales Success

The Sales Process Overhaul: A key challenge in the business’s revival was the lack of a defined sales process. Developing and documenting a clear sales strategy was essential for bringing consistency and growth to our sales efforts. Each salesperson had their own approachâor no approach at allâwhich made it difficult to identify areas needing improvement.

Implementing a Structured Approach: To address this, we developed and documented a clear sales process. This became our blueprint for sales success. By retraining our existing team and using this process for training new salespeople, we achieved a level of consistency in our sales approach. This not only improved our overall sales performance but also allowed us to pinpoint specific areas where additional training was needed.

Solution: For any business struggling with sales consistency, the key is to develop a well-defined sales process. Document this process and use it as a foundation for training both new and existing sales staff. This ensures that everyone is on the same page, making it easier to deliver consistent results and identify areas for further training and improvement. A structured sales process is a powerful tool for driving sales growth and efficiency.

Managing Online Reputation: Turning Feedback Into Fortunes

The Proactive Review Strategy: During this transformational business journey, I learned that overcoming negative reviews isn’t just about damage control; it’s about taking a proactive stance. People are quick to share their bad experiences online, and these can spread like wildfire on social media and review sites. The first step in combating this is to ensure your customer experience is top-notch, as discussed earlier. A solid customer experience naturally reduces the likelihood of negative reviews.

Engaging with Reviews: It’s also crucial to actively engage with all reviews, both positive and negative. Responding to reviews shows that your business cares and is committed to resolving any issues. This visibility in handling feedback can turn a negative review into a positive impression for potential customers reading these reviews.

Encouraging Positive Reviews: Furthermore, we started encouraging our customers to leave reviews. While it’s important to steer clear of offering incentives for reviews, simply asking customers to share their experiences can lead to an increase in positive feedback. Incorporating this request into our follow-up processes ensured it became a natural part of our customer interaction, subtly boosting our online reputation.

Solution: To effectively manage online reviews, ensure your customer experience is consistently excellent. Engage with all reviews in a constructive manner, showing responsiveness and a commitment to improvement. Encourage customers to leave reviews as part of your regular follow-up process. This approach not only helps mitigate negative feedback but also builds a stronger, more positive online presence for your business.

Final Thoughts: Lessons From A Turnaround Journey

This journey of transforming a struggling business wasn’t just a professional milestone; it profoundly impacted me personally. It was more than just reviving a company; it was about saving jobs, creating new opportunities, and expanding horizons. We didn’t just turn the business around; we expanded it, reaching into multiple states and opening new locations. Each step of this journey didn’t just contribute to our business’s growth; it created countless opportunities for others, bringing jobs and prosperity to communities.

The experience taught me invaluable lessons about resilience, innovation, and the power of a well-executed strategy. It showed me firsthand how focusing on key operational areas can not only save a business but can set it on a path of expansive growth. These strategies became the cornerstone of our expansion, proving their worth time and again.

As I share these insights, I do so with the hope that they will inspire and guide you in your own business endeavors. Remember, every challenge is an opportunity in disguise. Embrace them, learn from them, and use them to fuel your journey to success. The road might be tough, but the rewards of perseverance and strategic thinking are immeasurable.

Beyond The Myth: Why Effective Branding Is Crucial For Business Success

July 12, 2023

In the ever-evolving business landscape, branding has been vital for long-term growth and success. While it is widely acknowledged that branding plays a crucial role in building recognition and reputation, there are instances where businesses have yet to experience initial success without extensive branding efforts.

This article delves into the notion that while branding may not always be a prerequisite for achieving initial success in certain scenarios, it becomes increasingly essential for sustained growth and establishing a strong foothold in the market. By exploring both sides of the argument, I aim to shed light on the nuanced relationship between branding and business success, highlighting the significance of branding in ensuring long-term prosperity and navigating the challenges of a competitive marketplace.

Let’s look at a few reasons why branding is not an absolute necessity for success, but its absence may limit long-term growth potential:

Short-Term Success

Some companies can experience initial success without a well-developed brand strategy, leveraging word-of-mouth, viral marketing, fleeting trends, or unique circumstances. However, itâs important to note that this overnight success type is often short-lived and lacks sustainability without effective branding. While initial buzz or popularity can bring attention to a business, branding efforts help establish a solid foundation for long-term success by differentiating the business and building a strong customer base.

I had the opportunity to assist a nutritional start-up that experienced rapid growth in the first two years, with 130,000 customers and two million bottles sold globally for its hangover prevention product. Unfortunately, the company faced a downturn when sales began to stagnate. I conducted comprehensive analyses to understand the underlying causes, encompassing competitive and market evaluation, consumer trend assessments, and data analytics. Upon examination, it became apparent that the company had disrupted the market with its innovative product and had established dominance in its category, garnering significant attention and success. However, as competition emerged, it faced a challenge as its competitors easily replicated its offerings due to a lack of unique differentiation. This lack of distinctiveness proved detrimental to the business. Furthermore, the company’s unclear value proposition, inadequate positioning, and inconsistent messaging further contributed to customer confusion and ultimately led to a decline in sales.

The absence of a well-defined branding strategy underscored the need for its development to overcome the challenges faced by the company, highlighting the crucial role of effective branding in achieving sustained success.

Niche Markets

Businesses operating in certain niche markets or local communities can experience thriving success without heavily investing in branding efforts. Personal relationships, referrals, and local reputation can play a significant role in generating business, reducing the immediate need for branding efforts. However, it is crucial to acknowledge that the absence of branding can hinder revenue generation, profitability, and the creation of long-term value when faced with competition. Without a strong brand, businesses may struggle to adapt to market changes, expand their operations, and attract investment opportunities essential for sustained growth and success.

A compelling example of this is my experience working in the cannabis industry. As competition in the market increased, larger corporations entered the scene, and more states legalized recreational cannabis, it became increasingly challenging for niche brands to remain competitive. The cannabis company I worked for strategically pursued mergers, acquisitions, and brand licensing deals as part of its business strategy. Once these smaller niche brands were acquired, it became apparent that some had lost their competitive edge. To address this, I conducted a comprehensive business and financial analysis, competitive analysis, market trend mining, and internal capabilities audit. This allowed us to develop a strategic brand portfolio architecture strategy by evaluating each brandâs strategic role and determining whether to divest, invest, harvest, or maintain the brand. Implementing this brand strategy increased revenue and profitability, ultimately leading to the companyâs acquisition.

Although businesses can experience initial success in niche markets without extensive branding efforts, it is crucial to consider the long-term benefits and strategic advantages of effective branding. In an evolving and competitive landscape, businesses need to recognize the value of branding to thrive and sustain their growth.

Established Brand Reputation

In the ever-evolving business landscape, some companies have relied on their established reputation for years, only to face declining sales when market dynamics, industry trends, and consumer preferences shift. As market competition intensifies and the importance of ROI in marketing efforts grows, effective branding has become a necessity for organizations.

While traditional reputation and word-of-mouth may have sufficed in the past, businesses now require a strategic approach to branding to differentiate themselves, communicate their unique value proposition, and establish trust with diverse stakeholders. By investing in branding initiatives, companies can position themselves strategically, target specific customer segments, and gain a distinct competitive advantage.

A case in point is my experience working for a private, non-profit business school in the highly competitive higher education landscape. Struggling with declining enrollment, we conducted a comprehensive analysis, uncovering a lack of differentiation compared to competitors. Through deep engagement with students, alumni, and faculty, the school’s strength in equipping students to become world leaders emerged. Armed with these insights, a repositioning strategy was executed, reviving the school’s brand identity after 22 years and launching an impactful marketing campaign, “Best for the World Leaders.” The results were remarkable, with the highest enrollment in 13 years and a notable 30% increase in awareness.

This success exemplifies the transformative impact of effective branding, showcasing how identifying a unique point of differentiation and leveraging it through repositioning strategies can drive significant outcomes. In a changing market, organizations must embrace branding as a powerful tool to differentiate themselves, attract customers, and achieve long-term success.

In conclusion, while there may be instances where businesses experience initial success without extensive branding efforts, it is crucial to recognize the long-term benefits and strategic advantages of effective branding. Branding plays a vital role in building recognition, reputation, and differentiation in a competitive market. It helps businesses adapt to changes, expand operations, attract investments, and sustain growth. As the business landscape continues to evolve, investing in branding is increasingly necessary to thrive and establish a strong foothold. Whether it is developing a unique value proposition, cultivating customer relationships, or differentiating from competitors, branding is an essential component for long-term success in today’s dynamic marketplace.

For a step-by-step guide on how to develop a brand strategy, check out How To Develop a Brand Strategy by Lisa Perry. For more brand marketing insights, follow Lisa Perry.

Executive Spotlight: How To Set Up A Proper Budget

May 30, 2023

A critical responsibility of an executive is to set up a proper budget for their organization. Setting a proper budget usually involves setting financial goals, identifying expenses and revenue streams, and creating a budget that helps drive business success. So, what are some practical strategies for creating and managing a successful budget?

We recently asked our executives how they set up a proper budget.

Here are their responses…

Ana Smith, Talent Architect & Global Learning Strategist

As an executive, setting up a proper budget is a critical responsibility that requires careful planning, analysis, and monitoring. Here are some steps to consider when setting up a proper budget:

Define your financial goals: Before setting up a budget, you need to define your financial goals and objectives. This will help you to prioritize your spending and identify areas where you need to cut costs.
Estimate your revenue: Determine how much money your organization expects to generate in the upcoming period. This includes revenue from sales, investments, and other sources.
Analyze your expenses: Identify all of the expenses that your organization will incur during the upcoming period. This includes fixed costs like rent and salaries, as well as variable costs like marketing and materials.
Prioritize expenses: Once you have identified all of your expenses, prioritize them based on their importance to your organization’s success. This will help you to allocate resources more effectively and avoid overspending.
Allocate resources: After prioritizing your expenses, allocate resources to each category based on their importance. This will help you to ensure that you are spending money where it is needed most.
Monitor and adjust: Once your budget is in place, it is important to monitor your actual expenses and revenue against your budgeted amounts. This will allow you to identify any discrepancies and make adjustments as necessary.

In summary, setting up a proper budget requires careful planning, analysis, and monitoring. By following these steps, you can ensure that your organization’s financial resources are allocated effectively and efficiently.

Ana Smith helps people & organizations achieve their full talent potential by developing and co-creating people strategies and customized solutions, and turning them into impactful outcomes and collaborative relationships, using coaching as the “red thread.”

Michael Willis, Sports Business Operations Executive

I love the time of the year when itâs time to work on the upcoming yearâs budget at the NFL.

For me, the budget is a living and breathing document. You just donât put in all the effort to file the budget in the filing cabinet once approved. More on that later.

I have a process that I follow every year. I keep a folder with all the notes and conversations that I had to build the budget. I keep various budget versions as I move to the final approved budget.

My budget process goes as follows:

1. Current Year Actual

The current yearâs actual P&L numbers will be my basis for the upcoming budget cycle.

I go to each department head in our group and ask them if they have anything they want to buy or change that they didnât do this season. Also, I will ask if they have any one-offs that wonât be done after the season ends.

2. Game and Replay Officials â (CBA) Collective Bargaining Agreement

Seventy-six percent of the Football Operations budget is covered by the Game and Replay Officialsâ salaries and travel expenses agreed upon in a seven-year agreement between the NFL and the Officialsâ Union.

So, I only have control of 24% of the Football Operations budget.

3. VP & Finance Review

This is when I sit with my boss and Finance to make any adjustments, then move to the approval of the budget.

4. VP & Commissioner Review

After Finance approves the budget, my boss sits with the NFL Commissioner on what the department wants to do in the upcoming year.

The Commissioner doesn’t have the time to go through the entire budget page by page. So, I draw up a âone-pageâ report. This is a simple one-pager with one number at the top of the page, representing the current yearâs âactualâ spend. In the middle of the page are the budget changes for the upcoming year. At the bottom is the total budget for the upcoming year.

5. Finally, the Living and Breathing Part

Now that I have a final version budget in my hands, I will bring life to the budget by calendarizing the budget. That means I will spread the budget over twelve months, showing when to spend the money. That means I can discuss how we are pacing every month or quarterly, from budget to actual.

Michael Willis has 18+ years of experience working with accounting & sports organizations and has managed P&Ls of $10M – $125M+ with budgets of $3M-$50M+. He worked for the NFL for 22 1/2 years, mainly with the game officials working on the financial/accounting side of the business.

Lisa Perry, Global Marketing Executive

As a brand marketing executive, a well-planned marketing budget is critical to strategically allocating resources, outlining a successful marketing strategy, maximizing return on investment (ROI), and effectively reaching your target audience. Creating a marketing budget may seem daunting, but it doesnât have to be. Here are six steps to help you set up a marketing budget that aligns with your goals and drives tangible results:

1. Define Marketing Goals & Objectives: Before diving into budget planning, clearly define SMART (specific, measurable, attainable, relevant, and time-bound) marketing goals and objectives. For example, what are you looking to do? Increase brand awareness or consideration, generate leads or conversion, drive loyalty or advocacy? Understanding your objectives will guide your budget allocation decisions and ensure your marketing efforts align with your business goals.

2. Conduct Analysis & Research: Analyze historical marketing data and conduct research that will provide valuable insights for budget planning. Evaluate the performance of past marketing campaigns, identify successful strategies, and pinpoint areas for improvement. Additionally, research market trends, customer behavior, and competitor activities to make informed budgetary decisions.

3. Develop a Marketing Plan: Develop a marketing plan with strategies and tactics aligning with your goals and objectives. Part of the planning includes researching the costs of the various marketing tactics. This is when you can determine which budget line item you want to include, how much money you want to allocate, and when you plan to spend it.

4. Estimate Marketing Costs: When submitting your marketing budget estimates for approval, it is crucial to accurately forecast how much you anticipate spending, as once approved, these estimates become your budget. Research industry benchmarks, obtain vendor quotes, and consult with your team to accurately estimate the costs involved.

5. Develop a Marketing Budget: Set a realistic marketing budget considering your financial resources, revenue projections, and the estimated costs of executing your marketing campaign. Strive for a balance between ambition and realism to ensure you have sufficient funds to support your activities throughout the budget period.

6. Monitor & Adjust: Regularly monitor and evaluate the performance of your marketing activities to ensure your budget is being utilized effectively. Track key performance indicators (KPIs) such as conversion rates, cost per lead, and customer acquisition. Identify areas that require adjustments or optimization. You can optimize your budget allocation for maximum impact by staying agile and responsive to data-driven insights.

Setting up a proper marketing budget requires careful planning, data analysis, and an understanding of your business goals. Then, you can create a budget that drives measurable results, strengthens your brand, and propels your business toward success.

Lisa Perry helps companies build leadership brands, driving loyal customers & delivering profitability. She does this through a process that builds brands consumers love. Her goal is to help companies develop, monetize, and grow their brands.

How do you set up a proper budget? Join the conversation inside Work It Daily’s Executive Program.

Fixed vs. Growth Mindset: Which Is Better For Your Business To Stay Relevant And Resilient?

December 13, 2022

The world of business has changed drastically over the last decade. Large corporations have fallen to the wayside, while smaller businesses with nimble mindsets and the ability to pivot at a momentâs notice have taken their place. In this fast-paced environment, itâs important that you constantly reevaluate your strategies and decide what will give you the advantage over other companies.

There are two mindsets that can either make or break your business: the growth mindset and the fixed mindset. Understanding which one best fits your company can make all the difference when it comes to long-term success.

Read on to learn everything you need to know about these two mindsets, including how they affect your company, how each one can be beneficial for your organization, and which one is better suited for you and your team.

What Is A Growth Mindset?

A growth mindset is an approach toward business where you believe that every person can learn and improve and that every company can grow and succeed. A growth mindset is based on the idea that we all have the ability to change and grow, given the right environment and tools. A growth mindset will help you to prioritize improvement over instant success, allowing you to constantly evolve and expand your business as needed.

If a growth mindset is the foundation of your business, youâll be able to pivot and adjust to new information with ease. Youâll be able to take advantage of new opportunities, learn from mistakes, and evolve in response to your customerâs ever-changing needs.

What Is A Fixed Mindset?

A fixed mindset is an approach toward business that believes success can only be attained by having the ârightâ genetics and experience. A business with a fixed mindset focuses on the past and the need to be perfect. This can be stifling to a companyâs growth and can often lead to stagnation.

A fixed mindset can lead to employees who are afraid to make mistakes and who may be holding the company back. A fixed mindset is not constructive; itâs often based on fear. This can lead to employees who avoid change and who refuse to learn new skills, even if those skills would greatly benefit the business.

Why Is Understanding Your Mindset So Important?

Both growth and fixed mindsets are necessary for success but in varying degrees. While both mindsets can be beneficial in certain areas of your business, one may be better suited for certain tasks than the other.

For example, a fixed mindset is beneficial for creating highly detailed and accurate long-term strategies. A growth mindset, on the other hand, is beneficial for fixing smaller, day-to-day problems. A business that has employees with both mindsets can work to their advantage. If a team is made up of people who have the ability to shift their mindset as needed, the company can respond to challenges quickly and efficiently.

Which Mindset Is Best For Your Business?

As you begin to examine each mindset and how it can benefit your business, youâll want to ask yourself a few key questions:

Are you trying to get to the top as quickly as possible? Or do you want to build a company that will last?
Is your company in a growth or fixed stage right now?
Are your employees able to adapt to the needs of their customers?

These questions can help you to decide whether a growth or fixed mindset would be best for your business, given the current state of your company.

Bottom Line

The world of business has changed, and itâs now more important than ever to be flexible and agile. Companies that can quickly adapt to new information will survive; those that canât will fall to the wayside.

Whether youâre trying to decide which mindset is the best fit for your company, or youâre trying to inspire your employees to embrace change and grow, the best place to start is by understanding the difference between a fixed and a growth mindset.