Dear Dave,
How do you reignite a sales team member’s fire once they have reached a financial goal they set for themselves?
David
Dear David,
I love team members who have the energy and drive to go out and make the sales. But when it comes to this type of work, you’ve always got to be on the lookout for someone who is there simply to collect big checks.
I call a person who is on some type of commission, and brings in more than they cost you per unit, a tiger. These are the types you want in commission-based roles, because they enjoy the chase and the thrill of the hunt. But it’s a little difficult to change things with people who are already in place and have been with you a long time. You can talk to them about the situation and their goals, or you can change the environment around them or their compensation structure and give them every opportunity to catch fire again.
But I think the best thing is to spend lots of time and effort in the beginning making sure you pick the right people for the right jobs. At my company we stress the importance of having a crusade mentality. You have to be on fire for what you’re doing. You have to love your job, love the reason you’re here and love doing work that matters. We’re a Super Bowl team, David. We’re not setting a goal of getting to the playoffs. We’re playing for the ring every time.
You have to understand that what I’m talking about isn’t something you can suddenly start cramming down people’s throats. It’s a gradual, gentle process. But the first and most important thing is to surround yourself with winners and give them what they need in terms of motivation to win on a consistent basis. It’s not acceptable for someone to reach a particular goal and then slack off or start doing things in a half-butt kind of way. I’m not okay with that at all!
—Dave
Dear Dave,
I work for a civil engineering firm that makes about $1 million annually. Two years ago one of our new clients didn’t pay a $40,000 invoice, even though a promissory note was signed. Our company sued him and won, but his assets can’t settle the bill. Do you think we should continue to pursue this?
Sarah
Dear Sarah,
You can hit a rock with a hammer, and it will never bleed. In other words, there’s no money to get because he doesn’t have it. Unless you think you’re dealing with a snake, and he’s going to great lengths to try and hide something, I’m just going to use this lesson learned and change my sales procedures and requirements to reflect the experience.
You might want to spend a little effort looking into things a bit deeper. You could even spend something on a private detective to try and search out bank accounts and other assets. Try to find out where the snake laid its eggs. Who knows? You might be able to squeeze a few thousand out of the situation.
Still, I wouldn’t spend a lot more time, effort or money chasing this guy. You let him get too far into you for a new client. If I were in your shoes, I’d probably just go make more money, see how I could learn from the lesson and make the changes necessary so I never had to go back there again!
—Dave
Dear Dave,
I’ve had my own small business for a while. I love what I’m doing, but things aren’t going very well right now. On top of that, I’m committed to $14,000 in advertising over the next 12 months. Recently, I got a job offer from a company that would pay me twice what I’m making now. I’m not sure what to do.
Rich
Dear Rich,
It’s very important to keep your options open right now. If you completely close your business, you’ll be giving up your customers. I’m not sure I’d do that, especially when you know so little about the new job you’ve been offered. I’d suggest trying this new job, but keep a few of your customers and see if you can do the work on weekends. This would help cover some, if not all, of your business debt and keep some money rolling in if the new job doesn’t work out.
If you find that you like this new job, then you’ve got a great income plus something you like doing on weekends that pays. And, if you keep your business open — even on a small scale — there’s always a chance it will begin to grow and give you the opportunity to jump back into it full-time again!
—Dave
Dear Dave,
I’m finally starting to see some real money after owning my own business for a few years. I really don’t want to make mistakes now that I’m finally seeing some progress. How important is it for a small business to have some kind of cash reserve?
Ken
Dear Ken,
You always need capital reserves for a small business.
You know how I stress the importance of having an emergency fund of three to six months of expenses in your personal finances? The same principle applies to business. When business slows down, or the economy does a nosedive, having a cash reserve will soften the blow and help you make it through the lean times. In addition, if something goes wrong or breaks down it will turn a potential disaster into nothing but a minor inconvenience.
Think about this, too, Ken. It can also help grow your business debt-free. At some point you’re going to hear about a good opportunity out there. Good opportunities have a way of becoming great deals when you’re paying with cash!
—Dave
Dear Dave,
In the beginning, how did you go about establishing yourself as a financial counselor that people could trust? Did you initially offer free counseling to help build a reputation?
Anonymous
Dear Anonymous,
I never worried about whether or not people could trust me. I think knowledge helped offset reputation (or lack of one, back then), and I knew in my heart that I was an honest guy who had the ability to help people with their money. I began doing financial counseling free of charge as a ministry at my church, but I have a degree in finance, and I had bought and sold more than 1,000 foreclosures at that point. That taught me a lot about the business and the bankruptcy side of things. And experiencing them for myself when I went broke gave me a unique perspective into what happens in those situations.
But it’s probably safe to say that people trust me more now than when I first started. There definitely wasn’t a line of people backed up around the block to see me in those days!
—Dave
Dear Dave,
My wife is a very energetic entrepreneur. I’m a little more laid back, so we have very different personality styles. What’s the best way to encourage and communicate with her, and not hold her back from her ambitions?
Charles
Dear Charles,
This is a great question! You’ve already taken the first step in recognizing and identifying your personality styles. If she’s a hard-charging entrepreneur, there’s a good chance God sent you into her life to slow her down enough so she can keep it between the ditches. That’s what my wife does for me. She doesn’t hold me back at all. But sometimes I’ll get to a point where I’m so wrapped up in a project or new opportunity that I can’t turn it loose. That’s when she knows to step in and say, “Honey, did you ever think about this possibility?” or simply, “Dave, slow down!”
The fact that you’re wired a little differently, that you can go slow enough to be observant and wise when things in her professional life are hectic, is one of the most valuable benefits you bring to your relationship. Once she understands and respects this, the more you guys — together — are going to win. It’s going to make a positive impact on your lives, because you’ll be making steady progress that’s more predictable and reasonable versus sudden launches into the stratosphere that are usually followed by crashes.
I love these discussions about family and business. As you grow to better understand the other’s thinking – and how each is necessary for success — a beautiful piece of music will be created. Your encouraging, but cautionary, due diligence side, and her energy and passion to pull things forward, can be the key to you guys making great things happen together!
—Dave
