This conversation with a successful business owner changed everything…
He said..
“Most Business Owners Do Not Have The Time, Resources Or Information To Make Good Decisions. But, They Make These Critical Decisions Anyway. ”
So, I have this conversation floating around in my head and then life kicks so I can “see” this played out.
Here’s, the story that pushed me over the edge…
So, I was invited to a “business opportunity” meeting a few days ago. Normally, I do not attend such meetings. Since I was invited by a close friend, I decided to go to see what is happening in the marketplace.
What I saw was very interesting to me. I saw non–business owners making business decisions about:
- Product Selection
- Marketing Channels
- Pricing
- Presentation
- Online Marketing
- Offline Marketing
- Traffic Generation
- Demand Generation
- Prospecting
- Closing
- Appointment Setting
- Team Building
- Execution
I was sitting in the back of the room with my notepad out. As I looked down, I saw that my thinking was much different than the other folks in the room. I was seeing what had to be done to make this work. Easy enough to do. But, also easy not to do. All I could see was…
Product one: Lead Product
- Manufacturing Cost: $10
- Wholesale Cost: $30
- Retail: $70 – $100
Product two: Continuity Program
- Nutritional Product – $100 a month
Marketing Method: Word Of Month, Volume Distribution, Commissioned Agents (MultiTier-Affiliates)
Possibility Of Success: Low – Medium depends on current network. And ability to sell the idea. Leadership and personal motivation.
I was in a conversation about:
- Product
- Backend Offers
- Promotion.
Not excited. Didn’t care that one person made $90,000 in two months. How good the product was or how easy it is to sell.
I even heard the famous line… “The Product Sells Itself.”
Anyway… I was actually thinking and not getting caught up in the moment. But, this time was different, I noticed and decided to look deeper.
Ok, back to business.
If the business decision you make is wrong, you are going to waste time and money.
- How much does a wrong decision cost your business?
- What is your decision making process?
- As business owners, how do we make the choices that we make?
- What tools do we use to think about your business?
- Why do we take advantage of the “opportunities” that come our way?
- Are they really opportunities?
Your position in life is based on the business (and personal) decisions that you have made up to this point. If you are not where you want to be, your thinking and action process may not be working for you. This might be a good time to think about your business thinking.
Ask yourself these questions:
- How much is my decision making process costing me and my family?
- Could it stand some refinement and structure?
If this is a subject that is of interest to you, I am going to be working in this area this year and sharing my findings as I suspect that this is the foundation of all the other business concerns. This is not easy stuff to get. Bad habits to break. Many obstacles in the way. This may be worthwhile personal project for most of us.
You know me. I am gathering tools. So I’ll be back to you with next steps.
Please stay tuned and make sure that you are on my update list.
Below is a video primer on thinking… each one is less than 10 mins. I suggest that you listen or view one, think about it and then come back to get the next one.
As you are getting ready for the new year, your thinking might be a good place to start.
Let me know what you think…
{ 5 comments… read them below or add one }
Thanks for the info Dave. I find another problem in my consulting activities which is at the opposite end of the “decision scale.” Probably the worst decision of all which is the “no decision.” Generally this is the result of an information overload whereby the executive/owner/manager cannot correctly evaluate the available data so places an equal value on ALL data. Resulting in an appearance similar to a rabbit caught in the headlights of an oncoming truck!
Lance,
Evaluation of data against criteria is a huge stumbling block for most business owners. The data evaluation skillset is foundational to engineering and is based in logic.
Getting off of zero is usually a matter of developing the criteria for action. Once the criteria is created and understood the information overload problem will minimize enough for you to get on with the work at hand.
The problem is creating objective criteria. Takes a bit of work to see what is there and not get caught like a rabbit in headlights.
Interested in evaluating moving targets. My 15 year business has not needed much marketing (word of mouth, previous clients) for a long time; current workload suggests I will need to market this year. So the key indicators last year won’t (probably) work this year.
My opinion is that cash flow will be king this year for consulting businesses in the development field; it will be easy to get contracts on the old “you’ll get paid when the project goes”, but you could do a lot of work for nothing. In the go-go days- those were easy money in the bank.
IMO, of course….
I enjoyed your telling of the story we have all had a role in at one time or another.
Each time I’ve attended a network marketing meeting (at the request of a close friend) the message was “It’s simple” or “I do the work for you, just sign up”.
The kind of critical thinking shared by Dr. Paul is lost on most in these peer pressure situations, especially the folks that need success the most. Fact is, like you said, the room is generally full of people who know nothing about business development or marketing (including the host) and are simply anchored on the thought that “someone just like me” makes $xx,xxx a month with this company.
While there are a few good MLM companies (with good products that is) I have sworn off selling anything with more than a two-tier marketing system.
Thanks for the videos on critical thinking, very interesting. I am looking forward to more from you on this subject.
@ Roger I don’t believe that I am paid until I have the check. You can waste alot of time waiting for payment. And even more time, listening to good stories about the fees you should be paid.
@ Tom It is a false comparison that is promoted usually at these meetings. If they can do so can you… false assumption based on no data. This is what I am working on this year. Thanks for the support.