The Freedom Flywheel - Blog

OPTIONS FOR SELLING YOUR BUSINESS

Wed, 20 Nov 2024 20:28:30 +0000

Thinking about selling your business?

It’s important to understand your options.

You can choose between selling to an inside party, such as family members or employees, or to an outside third party.

Each path has distinct processes, advantages, and challenges.

Here’s an overview of what each option entails, along with some insights to help you decide which is best for you.

Inside Transactions: Keeping it Close

Advantages:

- Continuity and Legacy: Selling to family members or employees helps maintain continuity and preserves the legacy of the business.
- Employee Morale: Employees may feel more secure and valued, leading to better morale and retention when the business ownership stays within the company or family.
- Institutional Knowledge: Inside buyers already understand the business’s operations, reducing the learning curve and minimizing disruptions.
Challenges:
- Financial Constraints: Financing an internal sale can be difficult. The new owners, whether family members or employees, need to secure funding, which may present a challenge. You may end up financing it for them.
- Family Dynamics: Transferring ownership within the family can be emotionally complex, often leading to conflicts, feelings of favoritism, or accusations of nepotism.
- Complexity of Transactions: Internal transactions, such as Employee Stock Ownership Plans (ESOPs), can be complex and expensive to implement.
And maybe the biggest challenge of all: sometimes the people you think will want to buy in and take over don’t want to!
This happened in our business. No one wants to buy a soul crushing job, no matter what it pays! This is one of the reasons you want to make sure the business runs itself.

Outside Transactions: Bringing in New Perspectives
Advantages:
- New Resources: External buyers often bring additional resources and capital, making it easier to grow or expand.
- Faster Exit: Owners can often exit the business more quickly through an external sale.
- Potential for Higher Returns: Third-party buyers might offer more money, providing immediate liquidity.
Challenges:
- Loss of Control: Selling to an external party means giving up control, which can be difficult for owners who are deeply invested in the business’s future direction.
- Cultural Changes: External buyers may change the company culture, which can affect employee morale and operational continuity.
- Stressful Due Diligence: External sales often involve rigorous due diligence processes, which can be time-consuming and stressful.
Key Considerations for Both Options
- Personal Goals: Determine your personal goals before deciding on a sale method. Are you looking for a clean break, or do you want to stay involved?
- Financial Needs: Assess your financial needs and the business’s financial position. How much do you really need from your exit? Internal transactions might be less lucrative but offer other benefits, like preserving the business’s legacy.
- Market Conditions: Evaluate current market conditions to decide if an external sale will yield a good price or if it’s better to opt for an internal transition.
- Readiness of Successors: Do you have potential internal successors that are both willing and capable of taking over the business? There’s no point in selling (or even worse, giving) your business to family members if that’s not what they want.
- Tax and Legal Implications: Different transaction types come with varied tax implications. Get professional advice so that you can structure your deal to optimize tax benefits.
- Emotional Impact: Consider the emotional aspects of selling your business. An external sale might offer closure, while an internal sale can keep your business legacy alive and within familiar hands. Either way, you want to be sure you are prepared – both personally and financially – for your new reality post-sale.
The Most Important Consideration: What Do You Want?
At the end of the day, the success of your business sale hinges on aligning the transaction with your personal and financial goals.
Spend time understanding what you truly want from the sale—whether it’s maintaining your legacy, achieving a quick exit, or maximizing financial returns.
Once you have a clear vision, you can choose the best path and work with advisors to navigate the logistics and mechanics of the sale.
Remember, the terms of the deal often mean more than the money. (Ask me how I know this!)
Design your exit strategy to fulfill the outcomes that matter most to you.

DAWN BLOOMER INTERVIEW ON 'WHAT'S YOUR LEGACY?'

Wed, 20 Nov 2024 20:28:30 +0000

Dawn Bloomer: Legacy of a Business Strategist

As featured on “What’s Your Legacy?” hosted by Yvette E. Taylor

Key Takeaways from the Episode

Dawn’s Unique Background

Former veterinarian specializing in equine peak performance for over 20 years.
Transitioned to business strategy and consulting after realizing her passion for helping others navigate business challenges.
Originally from Canada, she moved to California chasing the "California dream" with nothing but a truckload of belongings.

Lessons from Her Career Journey

Early entrepreneurial mistakes: Invested in a veterinary practice with no business experience but learned through trial and error.
Found her calling in helping other professionals and entrepreneurs avoid the pitfalls she faced.
Key insight: Many business owners are "accidental entrepreneurs" who struggle with scaling and sustainable operations.

The Concept of Productive Pressure

Purpose and Balance: Sustainable businesses require a balance of passion, purpose, and manageable stress.
Stress as a Tool: Stress, when managed properly, can be a catalyst for growth, not just a negative force.
Mental Fitness: Cultivating resilience and mental fitness can help entrepreneurs thrive under pressure.

Seven Signs a Business May Need Help

Lack of defined goals or direction.
Challenges with attracting and retaining talent.
Declining employee engagement and productivity.
Misalignment between operations and long-term objectives.
Struggles with decision-making amid overwhelming input.
Financial performance not meeting expectations.
Business overly reliant on the owner, limiting scalability and exit opportunities.

Decentralizing Your Business

Why It’s Crucial: A business tied too closely to its owner has limited value.
Steps to Decentralize:
- Delegate effectively and empower your team.
- Develop a clear brand that isn’t dependent on any one individual.
- Plan for scalability and prepare for eventual transitions.

Planning for Your Exit

Exit Planning Starts Now: It's never too early to prepare your business for an eventual sale or succession.
Understand Your Business Value: Most owners overestimate their business’s worth. A realistic valuation is critical for financial planning.
Align with Personal Goals: Successful exits require clarity on what the owner wants post-exit—whether it’s retirement, a new venture, or consulting.

Dawn’s Vision for Legacy

Personal Legacy: Demonstrating to her children the value of hard work balanced with enjoying life.
Professional Legacy: Helping business owners build scalable, sustainable businesses that support their life goals and create lasting impact.

Listen Here

Apple Podcast

What's Your Legacy?

Ivy.fm

ARE YOU COUNTING ON SELLING YOUR BUSINESS TO FUND YOUR RETIREMENT?

Tue, 19 Mar 2024 17:54:19 +0000

Most of the owners I work with started a business so that they could work for themselves in their chosen profession. Essentially, they were creating themselves a job – expecting to have more freedom, control, and income than working for someone else. Let’s face it, it’s great to own a business where you get to do the work you love! It’s what we call a lifestyle business. A lifestyle business generates good income for the owner but that doesn't necessarily mean it has transferable value to a potential buyer. When it works, it’s awesome. But...

What seems like an exciting challenge and adventure in the earlier days of practice ownership – long hours, increasing revenue, growing a business – can start to wear on you over time.

It might not be so noticeable when you’re younger and full of enthusiasm, but the stress and pressure take their toll over time. At some point, you may end up feeling frustrated or burned out. It’s not fun to look at your accomplishments and what you built and realize that although you’re successful on the surface, what you’ve actually created is something I call Owner Overload. You feel stuck and trapped in your business, unable to take a (real) break and feeling a bit resentful and disillusioned that while you’re making good money, you are unable to enjoy it. It’s at this point that many owners start to think about escaping. Sometimes quite literally – fantasizing about throwing their keys on the front desk and walking away. (Or was that just me?) But mostly, they think about SELLING their business. It’s an appealing option. You get to walk away and be free. AND you get a big payout in return for your hard work.

There are 2 BIG problems with this plan. One that you probably already know about. And another that you might NOT know about.

First, let’s look at the one you’re probably already aware of. You’re not ready to do this yet. (If you were, you’d be gone already!) You don’t have enough personal money socked away to fund your retirement and you have no idea what else you would do for work to make up the difference. So, you think you need to suck it up and put in another 5, 10, 20 years of relentless work before you can pull the pin. Meanwhile, at the back of your mind, you plan to one day sell the business and realize the number you told your financial planner your business was worth. This is where the bigger problem lies – the one that many business owners aren’t aware of.

You may not be able to sell your business for what you believe it to be worth. You may not be able to sell it at all.

If you, the owner, are at the center of the business – your business isn’t worth anything aside from what your physical assets could be sold for. You may be pulling good money out of it, but the business is only valuable when you’re making it go. Without you, the business ceases to exist. This makes your business unsaleable – and that number on your financial plan unattainable. You might not know this, but 80% of businesses listed for sale don’t sell. So many times, I have been approached by owners who were eager to sell - and there were buyers eager to buy - but we couldn't reach a deal because the owner had not made their business ready to sell and attractive to buyers. I had to tell those owners that those hungry buyers weren’t interested. No one wants to buy their way into Owner Overload.

People in the market to buy a business want to buy a GOOD business.

A GOOD business is a valuable business. It:

Makes lots of money. It’s consistently profitable.
Has the potential to grow.
Runs well without the owner’s direct involvement.
Has a steady clientele of happy, repeat customers or clients.
Has documented processes and systems in place.

Here’s something interesting: a good business to BUY is also a good business to RUN. This is why you need to include Exit Planning in your business strategy.

When you build a business with the plan to sell it one day, you end up building a business that is a joy to run as well.

And this is GREAT news for anyone feeling stuck in Owner Overload. You’ve already checked some of the things off the list of what makes a valuable business. The sticking points for most owners are items 3 and 5: having a business that runs well without the owner’s involvement and having documented systems in place. These are fixable. And if you choose to do the work to fix these now, not only will your business be valuable and saleable when you’re ready to leave – it will also free you from Owner Overload NOW. It’s a no-brainer. You can carry on as you are and have nothing to show for it in the end. Or you can free yourself and create a business you love, then cash out when you’re ready. If you’d like to go through door #2 I can help. Book a strategy call here: Book a call with Dawn.

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Why Wealthy Business Sellers Focus on Building VALUE in their Businesses, not Just Revenue

Tue, 19 Mar 2024 17:16:28 +0000

When you run your own business, there are 2 distinct paths you can take as an owner: the lifestyle business or the value creation business. Most owners of professional services businesses begin by creating a lifestyle business. We do the work we were trained to do – dentistry, plumbing, HVAC – or in my case, veterinary. Except instead of working for an employer, we go out on our own. We build the business over time, adding staff, and growing revenue. This creates a business where we can make good money to fund our lifestyle. It’s the dream that a lot of us held when we began our businesses: the freedom to work for yourself, own your own business, and make more money than you would as an employee. The big problem is that the freedom is an illusion. Once you reach a certain level of success, you find yourself in what I call Owner Overload. The money is good, but it requires so much of your time and effort, that you feel trapped and unable to grow. Your business relies on you so heavily that it’s hard to take time off – and even if you do manage to escape for a vacation, you spend most of the time worrying about how things are going at work. On the surface, you’ve created a profitable and successful business. Your financial planner may even have that business listed on your net worth statement with a big dollar value next to it. But there’s a big problem with this model.

If you, the owner, are at the center of the business – your business isn't worth anything.

You may be pulling good money out of it, but the business is only valuable when you’re making it go. Without you, the business ceases to exist. This makes your business unsaleable - and that number on your financial plan unattainable. The solution to this problem is to change paths and shift your business to a value creation model. So what do you need to create business value? While revenue and tangible business assets make up part of a business’s value, most of the value – about 80% of it – is made up of intangible assets. We call these the 4 Cs: Human Capital, Structural Capital, Customer Capital, and Social Capital.

The 4 Cs of value creation

Human Capital Having a team of skilled, experienced, and dedicated employees contributes significantly to a business's value. Creating synergistic collaboration and fostering a positive work culture makes your business more attractive and valuable. Structural Capital This encompasses the systems, processes, intellectual property, and other operational aspects that underpin the business's operations. Well-designed structures and streamlined processes enhance efficiency, improve performance, and increase the value of the business. Customer Capital Satisfied customers become loyal advocates, driving repeat business, and attracting new clients. By delivering exceptional customer experiences and prioritizing customer satisfaction, a business can increase its value. Social Capital Social capital refers to a business's reputation, brand image, and its standing within the community. Positive brand perception and a strong reputation can be a significant asset, attracting customers, partners, and investors, and ultimately adding value to the business.

Build wealth by creating a business that can thrive without you

The most important part of creating value is to decentralize by removing yourself from the center of the action. Notice that the first 2 Cs above are designed to do exactly that. With the right systems in place (Structural Capital) and a competent team to run them (Human Capital) – you are no longer the linchpin that holds everything together. Instead, you function as the business leader. You shift your focus to strategy and collaborate with your team to build Customer Capital and Social Capital. When you create a business that can thrive without your personal involvement, you not only get the freedom you wanted when you started – you also build wealth by creating a business that you could sell one day.

Exit Planning: the Most Overlooked Business Strategy

Tue, 19 Mar 2024 15:13:31 +0000

An exit plan may be one of the most important strategic tools in your toolbox – but chances are, you’re avoiding it. You’re not planning to leave your business anytime soon, so why bother? I’ve found that most business owners don’t realize the value of exit planning until it’s too late. But a good exit plan could save you millions of dollars, plus years you’ll never get back. Because exit planning isn't really about the exit at all. It's about building a business that works for you, instead of the other way around. Even if your plan is to stay at the helm of your business for years to come, developing an exit plan is just good strategy. With a sound exit plan in place, you give yourself more freedom and flexibility in your day-to-day operations – while also increasing the value of your business, and securing your financial future. Here’s how.

What is an exit plan?

An exit plan simply outlines your strategy for separating from your business – because you WILL separate from your business at some point. Whether your exit is voluntary or involuntary, you must be psychologically, organizationally, and financially prepared for it. A good exit plan isn’t developed at the last minute – it represents your ultimate goals for yourself and your business, so it should be part of your planning throughout the life of your business. You want to ask yourself (regularly!) "what's next?" so that you can prepare for it. Otherwise, you run the risk of working until you just can’t anymore, while also driving down the value of your business and eventually having it completely dissolve.

5 Steps to Develop your Exit Strategy

Creating an exit strategy might be easier than you think – the following steps can guide you through the process.

1. Start with questions

This is the soul-searching part of the process. What ultimate end goal do you have for your business? In an ideal situation, how do you imagine your separation from your business? Are you currently maintaining or growing your business’s value and success? What is important to you? Receiving a large sum of money up front? Leaving a legacy through the work your business has accomplished? Something else? Do you love what you do – and would you want to keep doing it indefinitely? Or would you like to reduce your work hours, allowing you to spend more time with family, travel, or pursue other interests? Your answers to these questions can help shape what your exit plan should look like. Ultimately, your answers should help you articulate a three- to 10-year vision that aligns your values, personal life, financials, and business. Why this timeframe? Research shows us that it generally takes between 3 and 10 years to optimize the value of your business and to exit it well.

2. Define the current situation

Step 2 asks you to take a good, hard look at your current business and financial situation. This part of the process is all about getting clear on your overall numbers, plus your current resources, systems and processes. Once you’ve clarified where you are and where you want to go, you can reverse engineer a roadmap to take you there.

3. Make it all visible

A good dashboard is key for making sure your vision, your plan and your progress stay top of mind. Being able to visualize how you’re tracking toward Key Performance Indicators can help you stay focused and reach your end goal with more efficiency and less stress.

4. Prepare your team

If you’re planning to eventually exit your business, you must have confidence in the team who will step up to lead. If that’s not the case today, now is the time to make it happen. It’s essential to analyze the strengths and zones of genius for each member of your practice and ensure that the right people are in the right roles. If you have gaps in competence or expertise, it’s time to shore them up. Your exit plan will include measures to develop your team members as the next generation of leaders and to transfer to them the goodwill you’ve worked so hard to build.

5. Optimize your systems

As part of your exit plan, it’s important to automate, delegate and eliminate processes. This helps you simplify and streamline your business, creating stability, consistency and predictability. This is critical to your practice's success, so you can sell it, pass it on, or simply take a vacation without worrying that it's all falling apart without you there. Whether it’s an accounting process, project management system or something else, there are concrete steps you can take to loosen your business’s hold on your life.

Don't wait! The right time to begin exit planning is TODAY

Don’t wait to start planning your exit strategy until you’re forced to unexpectedly step away from your practice, or realize you won’t have enough money to support your desired lifestyle later. Whether you plan to exit your business in 12 months or 10 years from now, the time to plan your exit strategy is today.

Next Level Business Strategy: Buy Back Your Time

Tue, 12 Mar 2024 15:30:00 +0000

There are 2 things you need to do to take your business to the next level.

Make more money.
Invest less of your time.

One of the biggest misconceptions in business is that the key to business growth lies in spending more time. Spending more time leads to Owner Overload. And Owner Overload blocks growth and scale. It limits the amount of money you can make. Instead, you want to initiate a “growth spiral.” Spend your time doing the right things. This will make you money. Spend the money buying back your time so that you can do the next right things. This will make you more money. Rinse and repeat. Let’s dive into this concept of “buying back your time.” We’ll start here:

Time is More Valuable than Money

You can always make more money. You can never make more time. Until you truly believe this, you’ll continue to spend your time on low value tasks. As a business owner, you’re busy. You have a million things competing for your time and attention. The challenge is to focus your limited and valuable time and energy on the things that will really move the dial – and to offload everything else. Essentially, you’re buying back your time.

What is Buying Back Your Time?

The first level of business calls for rolling up your sleeves and getting things done. You put in the time getting it off the ground. But at some point, you have to start paying other people to tackle some of what’s on your plate. Otherwise, you’ll never scale, never grow – and probably never feel sane. As with so many business habits, what got you here won’t get you there. In the early stages, it can be tempting to try to hang onto every dollar. You might cringe when you think of “spending” – you might think it sounds frivolous or wasteful and that you should be conserving every dollar instead. But that simply isn’t the case. At any given point in your life, you’ll have more time than money – and vice versa.

When you have more money than time, you should spend some of that money buying yourself more time.

When you buy back your time, you can do the things that grow your business – and, in turn, earn you more money. Here are 3 places to start:

Get Help at Home

When I was spending long days at the racetrack, building my business and making money, I paid for help at home. I hired a nanny – who came to work with me so that I could be close to my kids. I hired a cleaning lady. I had my groceries delivered. I had meal kits delivered. I paid for a laundry service. This is the low-hanging fruit of buying back time. Household duties can consume a lot of your time without adding value.

Drop the "DIY Mindset" and Outsource Tasks to the Experts

Instead of struggling with DIY projects like fixing leaks or assembling furniture or building a website, hire professionals to get the job done efficiently and expertly. Even if you have the expertise to do something, outsource tasks that are important, but no longer fit into your schedule or don’t play to your strengths. Why would you spend your valuable time doing things you can pay others to do – often better and more efficiently? Let the experts do the tasks that require their expertise, while you remain the strategic visionary.

Hire Support for Business Growth

Get an executive assistant, virtual assistant, or additional staff to handle administrative tasks. Hire the staff you need to market, sell, and deliver the products or services your business offers. Speed up your business growth by hiring an advisor to help you implement advanced strategies and avoid mistakes that come from lack of perspective. Automate processes wherever possible to streamline operations.

Make Good Use of the Time You Buy Back

Spending money reclaiming your time isn't just a short-term expense - it's an investment with significant returns. When you have more time, you can focus on planning, growth, and building relationships with potential partners. You’ll have time to think. Time to thoughtfully guide your business to the next level. More time allows for better sleep, increased productivity, and better strategic thinking. You only have 24 hours in each day. Use them wisely.

The Right Kind of Busy: 7 Keys to Creating Impact with Your Time

Tue, 05 Mar 2024 19:37:34 +0000

Most business owners LIKE being busy. We make things happen. We’re action takers. When we’re not busy executing our plans – we’re busy thinking about new plans to execute! We fill our schedules to the brim, juggling responsibilities and obligations, without a second to spare. In large part, this is what makes us successful. But here’s the truth: there's a right kind of busy, and then there's a not-so-right kind. The right kind of busy leads to growth and freedom. The not-so-right kind of busy leads to Owner Overload.

Owner Overload can happen even when you enjoy being busy.

You can be overloaded when you’re working on things you WANT to do. You can be overloaded when you’re working on things that build value and make your business money. And that overload can interfere with your growth. If you want to grow, your goal is to be constantly moving yourself up the ladder, pulling yourself out of the fray so that you can have a bigger impact. You can't have a big impact if you're the minion running around on the ground all the time. So, let’s look at what it means to be TRULY productive.

Being productive is about doing the right things at the right time in the right way.

We've all got the same amount of time. Isn’t it amazing that some people can accomplish so much more, make it look so easy, and still have time to do the things that matter to them outside of work? While other people just look like they're a Tasmanian devil - moving around all the time – but not really getting any more stuff done. The difference is impact. It doesn’t matter how many things you tick off your to-do list. What matters is whether those things have impact. People think productivity is about packing more into your day. But true productivity comes from working on things (like strategy) that are at a high enough level that they create a domino effect that ripples through the business.

7 Keys to Creating Impact with Your Time

1. Arrange your schedule around energy, not time.

Start by getting some awareness of what you're doing with your time. Audit your time for a few days. Where are you spending it? How can you better use it? Identify when YOU are at your best energy-wise and schedule that time for working “ON” your business instead of “IN” it.

2. Get rid of things you don’t want to do

Is your calendar filled with obligations that don't bring you fulfillment? Reassess. Take responsibility for your choices and learn to say no to activities that don't align with your values or goals. Guard your time fiercely and focus on activities that bring you meaning and satisfaction.

3. Plan your day with purpose

Put together a thoughtful daily schedule so you stay focused and on track. Identify your top priorities and goals for the day. Then, organize your tasks based on their importance and the value they bring to your business. By planning ahead and being intentional with your time, you'll avoid the chaos of a disorganized day and make meaningful progress toward your objectives.

4. Optimize your workflow

Small tweaks can make a big difference. We can lose a LOT of time to task switching costs. Look for places in your schedule that you can block out for specific activities. Group your appointments. Hold regularly scheduled meetings with your staff instead of allowing them to interrupt you every time they need something or have a question.

5. Systematize your space

A clutter-free workspace can improve your efficiency and focus. Arrange your tools and resources before diving into tasks. By organizing your space and eliminating distractions, you'll create an environment that supports your productivity and creativity.

6. Try single-tasking

Nobody's good at multitasking. Period. If you find yourself constantly juggling multiple tasks at once, it's a sign that you're spreading yourself too thin. Instead, focus on one thing at a time to improve efficiency and mental clarity. Try committing to single-tasking for a week and see the difference it makes. Block out longer periods of time for focused work. Turn off your phone. Instruct your staff not to disturb you. Focus on the deep work that really drives your business forward – including the strategic thinking time I mentioned earlier.

7. Take time off

Regular breaks are essential for recharging. Prioritize rest by disconnecting from work during evenings, weekends, and vacations. If you want a business that gives you time freedom, you need to practice being unavailable!

Ready to take your business to the next level?

Being busy all the time is a sign of success. It's also a sign that you are (or will be soon) on a growth plateau. The next level is about working less, stressing less, and enjoying more. To get there, you need a new way of thinking and a new way of operating.

Do you have "Owner Overload?" Here are 5 symptoms.

Wed, 28 Feb 2024 16:22:47 +0000

I had a practice as a veterinarian for racehorses and my life revolved around working.

I practically lived in my truck.

My truck was my office, my pharmacy, and sometimes I even slept in it overnight if there was an emergency.

Most days, I would drive to one of the area racetracks where I worked and park my truck in the barn area.

Everybody knew my truck.

It was always parked out in the open and it was like being in a fishbowl.

Even if I was on the phone or trying to eat my lunch (on the odd occasion I had time for it) people would bang on my window, open my car door, or (my personal favorite) stand really close to my window with their face up against it until I had to acknowledge their presence.

The only way I could get any peace was to hide out in the barn bathroom.

The downside to this approach was that apparently the bathroom stalls were built for jockeys because the doors were really short and if you didn’t actually sit down on the “throne” your head was above the door and everyone could see you, even at my height. So I had to sit on the toilet in order not to be seen. This became symbolic of the way I felt. Like my life was in the toilet! This is when I realized that while my partners and I had built a very successful business and we were making really good money...I had also had a case of "Owner Overload." Perhaps you can relate?

Here are 5 signs that YOU may have Owner Overload

1. You can't take time off for fear that the place will fall apart without you.

You come in early, you work late, you rarely (if ever) take a vacation - and when you're away? You're worried about how things are going at the office or clinic. Even if you DO manage to escape for a week of R&R, your phone is on and you've invited your people to call you anytime. Not only are you waiting for them to contact you...you're calling them to check in to tell them that "one more thing" that is on your mind.

2. You're the center of the action.

If your business was a wheel, you'd be the hub at the center. Everything needs to flow through you. Your clients request to deal with you, personally. Your staff run every decision past you. A problem comes up? You are called on to solve it. Someone doesn't know how to do something? You need to show them. (Again.)

3. Your business has taken over your life.

When you're not physically at work, you are still *mentally* at work. You are kept up at night, thinking about problems or challenges at work. Thoughts about your business distract you when you should be spending quality time with your friends and family. You worry about being the "boring one" at the party because all you talk about is work and business. (Who am I kidding? You don't have time for parties! The person you are boring is probably your spouse who is tired of listening to you talk about your business.)

4. The weight of responsibility is taking a toll on your health.

You've embraced the idea that "the buck stops here" - with you. It's your business, so you're responsible. For everything. Right? The stress of this is having negative impacts on your health. You may be indulging in a few extra glasses of wine to relax after your long days. Or maybe you're stress eating (or forgetting to eat.) You can't remember the last time you made it to the gym.

5. You can't grow because you're maxed out.

You enjoy your work. (Even though you're working more hours than you really want.) You make good money. And also? You're making less than you'd like. And... You have ambitions to grow but can't see how because you're already maxed out.

How many of these feel true for you?

ALL of these were true for me before I shifted to a self-managed business. I kept believing that if I just worked a little harder for a little longer...that things would get better. Spoiler: they did not get better. In fact, they got worse. I let my Owner Overload go untreated and it progressed to Burnout. It wasn't until I learned to work (and think!) differently that things began to change. Marshall Goldsmith famously said:

"What got you here, won't get you there."

Owner Overload is something that we create for ourselves due to our SUCCESS. You might even think about it as a milestone achievement on your journey - so if you've made it this far: congratulations!!

The good news? Owner Overload is a sign that you're ready for the next level.

The GREAT news is that the next level is about working less, stressing less, and enjoying more. To get there, you need a new way of thinking and a new way of operating.

How to Use Customer Feedback to Gain Competitive Advantage

Wed, 21 Feb 2024 00:51:38 +0000

There are 2 problems in the market right now that create a great opportunity.

Businesses face fierce competition.
Customers are frustrated with poor levels of service.

This creates both a challenge: how do you stand out? And an opportunity: make your clients or customers happy. Put these two together…and you can stand out by making your clients happy. (Why everyone isn’t doing this is beyond me…but they’re not…so here’s your chance ;-) ) The fastest and easiest way to do this?

Gather feedback. Then use it to make your business better.

While hearing feedback may be difficult at times, it’s worth the effort. Feedback provides insight into customer preferences, pain points, and areas for improvement. It also gives you an opportunity to “make things right” and rehab the relationship if a client or customer is unhappy. (And really? Wouldn’t you rather they tell you, instead of complaining to their friends or on social media?) Yet, despite its importance, many businesses hesitate to actively seek feedback from their customers. Why?

Why Businesses Avoid Asking for Feedback

Fear of Negative Feedback Nobody likes hearing bad news – and business owners often fear that asking for feedback will unearth negative comments or criticism. But – constructive criticism presents an opportunity for growth and improvement. You can’t fix what you don’t know about. And – feedback can also be positive. Thinking “they already know” Many businesses assume they already know what their customers want. It’s much easier to just keep doing what you’re doing, especially if things seem to be going well. But this kind of complacency often translates into missed opportunities. Not enough time (aka: not a high enough priority) Collecting and analyzing feedback is another project competing for limited time and resources. When you don’t want to hear negative feedback – and think you already know what your customers want – it’s easy to put this on the backburner. But here’s a question for you…

Consider feedback from your customers’ perspective.

Wouldn't you like to get asked for your input once in a while? Wouldn't you like someone to ask you what you want and then give it to you? Would you keep coming back? Would you tell your friends? Me too!

How to Get Good Feedback

If you want to gather meaningful insights from feedback, you have to ask the right questions. Here are some to consider:

Overall Satisfaction: How satisfied are you with our product/service?
Customer Experience: How would you rate your experience with our company?
Product/Service Quality: What aspects of our product/service do you find most valuable? What could we do even better?
Customer Service: How would you rate the level of customer service you received?
Suggestions for Improvement: What changes or additions would you like to see in our product/service?
Likelihood to Recommend: How likely are you to recommend our product/service to others? This is also known as a Net Promoter Score, and it’s fantastic for identifying customers you should follow up with and those you should ask for testimonials.

Pro tip: also give them a space to enter general comments so that they can share whatever is on their minds. This might be a rant or complaint (which you can then address) – but feedback isn’t always negative! You may also get a spontaneous testimonial.

Action Steps

Make it easy for your customers to provide feedback (and ask for it on a regular basis) You can do this through surveys, during customer interactions, or add it as a step in your fulfillment process. Listen and respond Don't just take it and sit on it. First of all, thank them for their feedback. If their feedback is really detailed or negative, or there's something especially important about it, ask them if they want to talk to you about it. Use the information Collecting the feedback is just the first step – the real value lies in how you use that feedback to drive positive change in your business. Analyze the feedback you’ve collected, identify recurring themes or patterns, and prioritize areas for improvement based on their level of impact. Then put them into your next 90-day sprint and get them done!

The ROI on a Better Customer Experience

Improving your service by gathering feedback is a great way to pull 2 “make more money” levers in your business:

Repeat business – meaning more sales per customer – and along with that an increase in customer lifetime value.
Referrals and word-of-mouth marketing – leading to new business and additional sales – without having to invest in advertising.

And depending on the feedback and what you do with it – you may be able to pull a third lever by introducing a new product or service. This is how you win.

Why Successful Businesses Focus on Retaining Customers

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As a business owner, it’s easy to get so focused on gaining new customers that you forget about keeping the ones you have. But –the real magic lies in retaining your existing customers. Loyal customers create a solid foundation for sustainable growth, offer a steady stream of revenue, and increase the value of your business. Besides...isn't that really why you got into the biz in the first place? To provide an amazing service or product that your customers/clients would love and they would tell all of their family and friends about it? This is a win-win. Make more money and have people love you ;) ...and so you make more money 😀 And in today's competitive market, retaining customers may be more critical than ever for business success. Why?

Happy customers come back. And they spend more.

Satisfied customers become repeat customers. Repeat customers tend to spend more over time and are more likely to try new products or services offered by a company they trust. They’re also often willing to pay more for outstanding service and to work with a trusted partner. And they’re more likely to tell their friends about you. Think of every customer as a potential referral source.

It’s cheaper, easier, and more fun to keep clients happy than to find new ones.

Marketing efforts, sales initiatives, and promotional campaigns all need substantial investment – of time, energy, and money. In contrast, retaining existing customers is a cost-effective no-brainer. Happy customers not only continue to make purchases, but they also are more likely to become brand advocates, which can lead to organic growth through word-of-mouth recommendations. Overall, customer retention is a smart investment for long-term growth and sustainability.

Want to retain customers? Turn them into raving fans.

Here are some actionable steps you can take to turn customers into raving fans.

Communicate Proactively

Communication breakdowns can kill customer trust over time. Ignoring feedback, failing to promptly address concerns, or giving customers inconsistent information can lead them to seek better alternatives – usually among your competitors. So, take the lead with communication. Send reminders and check in regularly. Is there a problem? Bring it up before they do. Keep your customers informed about new products, services, promotions, or changes to your business operations.

Improve the Customer Experience

The path to creating raving fans is through improving their experience. How you do this will depend on your business model - but it might be as simple as reducing friction by using some awesome automated tech - or as high touch as providing customized bespoke services. Your best customers will be willing to pay more for a better experience. You know your customers better than anyone – use that information to serve them better.

Assure Consistent Quality and Deliver Exceptional Customer Service

Implement quality control measures to ensure consistency in product or service delivery. Then monitor customer satisfaction metrics and address any areas of concern promptly. Invest in well-trained customer service representatives who are empowered to resolve issues promptly and courteously. Make it easy for customers to reach out for assistance. Whether you do this via phone, email, or chat may depend on your business model. However you do it, do it well. A positive service experience can offset occasional issues and leave a lasting positive impression on customers. It’s worth investing in your employees so they can provide this level of service.

Ask for Feedback – and Act on it!

Customers appreciate being heard, and immediately addressing their concerns builds trust and loyalty. Solicit feedback from customers through surveys, reviews, and direct communication. And do it regularly! Don't ask for feedback if you aren't going to respond to it. Respond to every google review - good or bad. (This gives you great information AND helps you maintain your reputation.) Then use this feedback to identify areas for improvement and implement changes to enhance the customer experience.

Customer Retention is a Key Piece of a Winning Strategy

When you keep your best customers and turn them into raving fans, you create long-term relationships that drive sustainable growth. This is one of the key factors in building a business that both makes you more money AND frees up your time to enjoy it.