Starting a business? Should you buy or build?
Making good decisions is a crucial skill at every level. —Peter Drucker
A neighbor of mine, who is a classic car aficionado, went to a large classic car show in Los Angeles. One of the vehicles was a beautiful, fully restored 1955 Ford pickup truck. He struck up a conversation with the owner who asked him if he would like to buy it. My friend told him he couldn’t afford it. The owner said, "Make me an offer." My buddy told him that anything he could offer would be far below the value of the vehicle.
"Try me," the owner said.
"Okay," my friend said, "I’ll give you five grand."
Without hesitation the owner said, "Sold!"
It turns out that the owner was an attorney who owned a collection of a dozen more classic vehicles. He jokingly told my neighbor that his wife had instructed him not to come home with the truck. To bring a vehicle up to the pristine condition of the truck would have taken months and cost tens of thousands of dollars.
Business sellers often have a far more compelling reason to sell than the truck owner had. Retirement, divorce, a pressing need for cash, and a host of other personal reasons may motivate them.
Depending on the type of business you want, it may be far cheaper to buy it than to start one from scratch. This is especially true if costly equipment is required. When you consider the time and money saved by avoiding recruiting and training a staff, start-up advertising and marketing, acquiring equipment, negotiating a lease, and dealing with regulatory agencies, there may be some real bargains out there. Many sellers include a training period for the new owner as part of the deal.
Heed this warning: To go this route, you need professional help from an accountant as well as from an attorney who is experienced in business sales. This is no time to skimp. Hire the best and avoid headaches down the road.
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Don’t call me. I’ll call you.
I sympathize with anyone trying to make a living by cold-calling prospects. It’s a tough hustle, and only a few succeed at it.
Because of the unprofessional telephone sales tactics of some, the well has been poisoned for all. Yet, despite the difficulty of selling on the phone, the calls keep coming in.
Anyone in business is forced to take defensive measures against unwanted phone solicitations.
While you may refuse to accept unsolicited sales calls, never ask anyone to lie for you, as in, "Tell him I’m not in." This is bad business form and shows weak leadership.
When a salesperson calls, have whoever is taking the call instruct the caller to send an e-mail. Have the screener ask the caller to put STAR in the subject line of the e-mail so you will know the person has called and you won’t summarily delete the e-mail. This makes the rejection easier for the caller and, who knows, you may have an interest in what is being sold or proposed. Although unlikely, the call could also be about a wonderful business opportunity.
Of course, the most effective junkyard dog of a gatekeeper is voice mail. I worked with one CEO whose voice mail message concludes with, "If I don’t know you or the reason you’re calling, please don’t expect a return call."
There will be times when you will be the one making the cold call. You may be calling to discuss an affiliate arrangement, check out a reference, or other business not related to selling. While you won’t be selling anything, you will be screened as if you were. Your call will be much more likely to be put through if you give your company and your name and title and state the reason for your call and add, "Please tell her that this is not a sales call."
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Beware the "expert."
The expansion of the Internet has given rise to a multitude of people who present themselves as experts. Many aren’t, and doing business with them can be very costly.
No matter how slick their marketing or how cool their website is, I strongly suggest that you request a half-dozen referrals. Take the time to contact these referrals and ask questions about their experience with the company. Ask questions about price, delivery, and the quality of the work performed.
I once made the mistake of not doing my homework on a company offering expert website development. We discussed all the elements and functionality required for the website. I was assured that it was a "piece of cake" to get me everything I needed. I was told the job would take about three weeks.
After many phone calls and meetings which seemed pointless, it slowly dawned on me that I was not dealing with experts, but rather a company that held itself out as expert.
After eight weeks, I called the CEO and held his feet to the fire. He promised to complete the site within 10 days. It was completed; however, it took an additional three weeks, and the site never did function correctly. I had to spend more money troubleshooting and correcting the problems.
The company’s initial low price was not a bargain, considering the lost time and what I had to do to get the site up and running.
I later learned that the delays were caused because the company was sending the work offshore, and it was having difficulty managing the relationship with the foreign company.
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Learn to read people.
Body language is a very powerful tool. We had body language before we had speech, and apparently, 80 percent of what you understand in a conversation is read through the body, not the words. - Deborah Bull, English entertainer
Police detectives, professional poker players, and successful deal makers have one thing in common: they all know how to read people.
At least 80 percent of human communication is nonverbal. Eye movement, posture, arm positioning, hand gestures, facial expressions, voice inflection, and other subtle and unintentionally sent messages can be read and interpreted. Plenty of learning resources on this subject exist. Take advantage of them. Your ability to read people pays big dividends in your professional and personal life.
Beyond business, there are dozens of life situations in which knowledge of body language pays off. Whether you’re making a major purchase, interviewing, dealing with coworkers or even with those at the dinner table, it is a very useful skill.
Are you being lied to?
I’m certainly not an expert on reading body language, but I have made it a point to learn the basic signs that tell me I am being lied to. Here are a few things I look for:
If a person doesn’t use contractions in his or her speech, it’s an indication of lying. When you hear, "I did not do it;" instead of, "I didn’t do it," chances are that person is fibbing.
Also people offering a theory that removes them from suspicion such as, "I would not take the chocolates. I do not even like chocolate," and then offers an alternative theory, such as, "Maybe the cleaning crew took them," is probably lying.
A change in the tone of voice often also indicates deception. Tugging at one’s collar and crossing one’s arms are other indicators.
None of these behaviors viewed separately means much, but, you can rest assured that, if three or more are displayed, it’s a pretty safe bet that you are being lied to.
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If you keep telling the same sad small story, you will keep living the same sad small life. - Jean Houston, American author
You are who you think you are.
I once had a poor self-image. I didn’t have a college education. I didn’t have money or prospects. Back then, the concept of a self-image wasn’t even familiar to me. It wasn’t how people thought.
As luck would have it, I landed a job on a small ranch owned by a very wealthy man. He took a liking to me. Over the next year he showed me a different world. He and his wife sometimes invited me to their home for dinner.
He lent me books that we would later discuss.
Sometimes he would take me for a flight in his small private airplane.
Most important, he treated me with respect. My view of myself began to slowly change.
One day he asked me what my life plans were. I told him that I really didn’t know. I explained that not having a college degree would limit my options. He looked at me as if I were crazy and said, "You are far more capable than 95 percent of people with degrees."
My self-image went up a notch again that day. I soon enrolled in night school, and my belief in myself continued to grow as I saw new possibilities for my life.
It wasn’t until I was looking back, many years later, that I fully understood the profound influence his friendship and kindness had on my destiny. I realized what a powerful force self-image is and what an important role it plays in defining our lives.
Start looking at your potential. Redefine yourself, and you will change. You will start to see your true capabilities, and that knowledge will lead to a new you.
I’m sure my boss knew exactly what he was doing to help me. I have tried to pass his gift to me along to others.
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Mood follows form.
To create well I have to be in a good mood, happy and cool. —Marc Newson, Entrepreneur
When you feel in winning form, you smile, stand up straight, and walk with confidence. On a gloomy, depressing day, try this: smile, stretch, and strut. Your mood will begin to lighten as your physical actions mimic those of a winner. The same applies to your phone personality. If you sit up straight and smile, you begin to feel self-confident and purposeful. Your voice reflects those qualities, and you will enjoy more successful business conversations.
Expand your vocabulary.
One forgets words as one forgets names. One’s vocabulary needs constant fertilizing or it will die. - Evelyn Waugh, Author
There is a proven relationship between vocabulary and income. Most successful people have good vocabularies and can express their ideas clearly. Less successful people tend to rely on a limited vocabulary augmented with clichés to get their ideas across. You are taken far more seriously when you can express yourself articulately. Clear and precise language gains you respect and credibility.
Don’t bother to learn words that are never used in everyday conversation. The fact that you know the meaning of popinjay is not of any value. However, learning one new word a day is money in the bank.
My book makes a great Christmas gift for any business professional. Excerpted from Rules of the Hunt. Available at Amazon.
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Example is not the main thing in influencing others. It is the
only thing. - Albert Schweitzer
You set an example by looking, acting, and thinking like a leader. Work as
hard, or harder, than your team members. You set a powerful example by
occasionally rolling your sleeves up and getting your hands dirty. Staying
at the rear of the battle is not inspiring and sets a bad example. Leading
the charge says in the most dramatic way, "I’m your leader. Follow me."
Keep your cool. Respond calmly to those big challenges that are
sure to come your way. While you can’t know what specific problem will
come knocking, you can anticipate how you react to it. A calm response
is a strong example of your leadership skills, which will not be lost
on others.
Develop first-rate communication skills. Never sugarcoat a problem
or deliver an unclear directive. Tell it like it is. People are not afraid of the
truth and will readily follow a leader who is direct. When you are honest,
realistic and plain spoken, you’ll avoid misunderstandings and mistakes.
A straightforward communication style is the hallmark of good leadership.
Clarify, prioritize, and lead.
My book makes a great Christmas gift for any business professional. Excerpted from Rules of the Hunt. Available at Amazon.
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