Out of Business
Today I learned that somebody that I know closed their business and got a job. Happens every day, but this was different. I've known this owner for a few years. I evaluated him a year ago. He needed help. The evaluation indicated what to do. So, I told him, laid out the plan, and made it affordable for him.
He said that he appreciated my advice, but was going to fix himself. I asked how. He said that he was gonna read Baseline Selling. I asked how he was gonna overcome his weaknesses. He told me that his wife was gonna hold him accountable. I asked what if it doesn't work. He told me that he'd call me in three months if it didn't work.
He didn't call. Now, he's out of business. Probably in debt. Still can't sell.
Tonight, I get to go to sleep wondering if I was too nice. Not strong enough. Worried about offending him or having him think that I was abrasive. Wondering if I should have tried harder to keep him in business.
ZZZZZZZZZZZZZZZZZZZ
He said that he appreciated my advice, but was going to fix himself. I asked how. He said that he was gonna read Baseline Selling. I asked how he was gonna overcome his weaknesses. He told me that his wife was gonna hold him accountable. I asked what if it doesn't work. He told me that he'd call me in three months if it didn't work.
He didn't call. Now, he's out of business. Probably in debt. Still can't sell.
Tonight, I get to go to sleep wondering if I was too nice. Not strong enough. Worried about offending him or having him think that I was abrasive. Wondering if I should have tried harder to keep him in business.
ZZZZZZZZZZZZZZZZZZZ
Disclosure: It's been a long week, and I am running out of steam.
Somehow, this story is funny.
Somehow, this story is sad.
How did you hear he went out of business? Did you contact this person? How will you prevent the next business failure?
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Dale, I don't think it's funny for anyone to lose their life savings, shatter their self esteem or damage relationships because they are too proud to ask for or accept help. It's just sad.
To answer your questions.
I heard it through the grapevine.
I did not contact him. He said that he'd contact me.
The SBA says that more businesses fail than survive. It can't be totally up to me. Can it?
Interestingly, the SBA also has suggestions regarding planning and starting your business.
Plan Your Business
• Get Ready
• Write a Business Plan
Start Your Business
• Find a Mentor
• Finance Start-Up
Can you believe that they suggest to find a mentor before you finance the business?
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I agree that this is a sad situation. I can only guess what this business owner went through. My suspicion is that he worked so many hours each day struggling to save his business that he lost sight of the big picture. In that situation, it is common to think that you don't have time to seek help . . . you're too busy running the business. I'm thankful that I had someone around me to push me in the right direction.
As for finding a mentor BEFORE financing . . . I think that is a critically important detail. I agree with it now that you point it out, but I don't know if I would have had the same insight that you did. Thanks for helping me see the painfully obvious. I'll bring that into my conscious mind from now on (I think it has been in my subconscious for quite a while).
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Let me offer another perspective. Seth Godin, author of the Purple Cow and many other books, recently wrote "Can you bully someone into a sale?" Here's the link: http://sethgodin.typepad.com/seths_blog/2008/08/can-you-bully-s.html
In this blog he states:
"Sales bullies describe their approach as ethical, because, after all, it's in the best interest of the prospect to say yes. It's okay to be a sales bully when you're trying to get someone to take their TB medicine, so it must be okay to be a sales bully to get them to sign this contract."
"The flaw in thinking is this... the people you most want to sell to won't respond well to this."
"So, if bullying is the only tool you've got, it makes sense to focus on an audience that responds to it (and lower your expecations accordingly). Even better, get some new tools."
Bob Burg, author of The Go-Giver, believes in Winning Without Intimidation.
Once again, we have a choice when it comes to our methods. Why do you believe that you can only win with intimidation?
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Rick - Interesting post. Unfortunately, what happened is an all too frequent occurrence in business. I know a business that shut down last month after enormous excitement in the marketplace. There is a great post mortum on it that you should read (www.informationarbitrage.com).
Regarding your post, it is not unusual for people to want to go at it alone. It probably had nothing to do with whether or not you were persuasive enough, or too expensive or that any other logical factor. Could you have done something different, only you can answer that question. The answer is what enables us to bring in the next customer. While I am certain you already know this, learning from our disappointments only makes us better at what we do.
Ed...
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In response to comments listed: Business owners need to know how to lead, have the right message, know how to communicate, know how to run their business, know how to network and know how to sell. So, to Dale’s comment, I think it is unreasonable to expect Rick to be able to “prevent the next business failure.” Rick is only able to help those people that fit his style. You would not ask the stereotypical computer guy to be the spokesperson for the company. (No offense to programmers.)
Knowledgeable sales experts tell us that it is easier to get a sale from an existing customer than it is to get a new customer. Great networkers tell us that people do business with people that they know, like and trust. Great networkers only refer people that they know, like and trust. Knowledgeable sales experts agree that it is easier to close a sale from a referral than a cold call. I think we can all agree on these.
Tactics that challenge another’s ego do not build like and trust. Once your network knows of such tactics, they do not like to refer you or trust you with a referral. Now you are left with the more challenging and resource draining situation of having to make cold calls. Why would a sales expert promote a system that makes it harder to sell? This is especially confusing when applied to someone like Dale whose business thrives with a strong network.
We can choose to communicate on three levels: as the parent, as the child or as an adult. Most business owners have a substantial ego. If we communicate on an adult-to-adult level, we are treating each other with respect and politeness. In addition, if we are patient and persistent, we will succeed. Leaders look to edify, not tear down.
I’m confused about your messaging, how you can honestly show concern in your comment about someone’s “shattered self esteem” after they have failed when your tactics project that you don’t care about it before they fail?
Clearly I have demonstrated compelling reasons why you should hire me to improve your understanding of business; improve your networking skills; improve your coaching skills; improve your communication skills; and establish proper messaging. This is a challenging task that only a person that is really interested in improving their business would commit. No, it is not cheap, but you know that “cheap” is not worth anything. I am only interested in working with people that are serious about succeeding. So, you have until the end of business today to get serious and let me know. If don’t care to succeed, don’t worry, I’ll never bother to post again on your blog.
I bet you’ve already picked up the phone and pulled out your credit card!
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If he did not call me after 3 months, as he suggested, I would have called him after 3 months and 1 week. If you did, you might have heard directly from him that his business was still failing, and you may have been able to take him on as a client.
Surely, it's not your fault that he went OOB...but it's your fault that you did not dilligently follow up. Every sale counts....
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Def,
Unfortunately, this guy was in my network and I actually watched him fail, but he was a very proud do-it-yourselfer and I'm not inclined to push myself on someone who does not want help.
In addition, remember that more startups fail than make it, so not only is it not my fault, it's rare that a business owner in this category would actually believe that anyone would help them.
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