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udemy for small business management
-So you have to articulate to yourself and your team your financial goals.
CLAY CLARK: Financial goal. Then how much. How much product do you have to sell, service you have to sell.
CALEB TAYLOR: To get to that financial goal.
-And then third is you're going to explain specifically how in terms of the nuance, in terms of the actual, what are you going to provide? And for us it was overdelivering humorous enthusiasm.
CALEB TAYLOR: Good. Those are specific actions to help us execute that principle. I love it.
-OK. Let's go down to step number two, then.
-I'm pumped up.
-Mm-hm. Set up a structure. Chaos and poverty results from disorganization.
-OK, we got another notable quotable here. This notable quotable comes from Michael Gerber. And this comes from his book "The Most Successful Small Business in the World." He says, "Most entrepreneurs are merely technicians with an entrepreneurial seizure. Most entrepreneurs fail because you are working in your business rather than on your business." Clay, what does this mean to you and to small business management?
-Well, what's happening is if you don't have a structure for your business, like, if you don't have a specific way. So let's just go through a business.
CLAY CLARK: Just real quickly. Marketing. OK?
CALEB TAYLOR: Yeah.
CLAY CLARK: Sales. Let's say this is fulfillment, quality control, and this is your accounting. If you don't have a specific way that you market, a specific size for your logo with a specific color and a specific brand standard, a specific brochure, a specific website, a specific slogan, a specific brand, a concept, then you will get casual. Which will create casualties, to quote my friend Tim Redmond and my former boss. Casualness creates casualties. So if you don't have a specific system for sales and it's casual because you're working in the business.
You're like, you're on the phone. You're the owner right now. If you're the owner right now, and you're the one personally making all the sales calls, and you don't have a script, you're working in the business. So you're actually literally mopping the floors, making the sales calls, doing the accounting. Nothing's written down, and it's casual. Then nobody can replicate it.
It's like trying to replicate. When you make a cookie, you know, if you make gingerbread cookies, in theory they have that stuff you can buy at Target. It's like the cookie cutter. If you buy a cookie cutter, you should be able to make the same cookie over and over times 1,000 with no deviation.
CALEB TAYLOR: Yeah, it's in their system.
-But if you're making a recipe with nothing written down, and you're using a cookie cutter that's, like, you're making with an X-Acto knife, nobody can follow it. So you have to have a system for the marketing, for the sales, for the quality control, for the accounting. And you as an owner need to be working on your business to create these systems so that you are not casual and therefore you do not create casualties. Because if I come to work for you and you don't have systems, you're freaking me out.
-So what Michael's saying, what you're saying here, is when you're working in your business, you're really just an employee working a lot more hours.
-Than all the other employees. I know there's a lot of entrepreneurs that decided they wanted to be their own boss.
-So they went and started their own company. But in the process they didn't build the system, so now they're still an employee. They're just working a whole lot more than they were before.
-And let's get some real specifics about this, OK?
-I'm going to try to help you. So again, I just want to make sure you're seeing this, OK? This is how I do it, specifically. So I have five kids, OK?
CALEB TAYLOR: Right.
CLAY CLARK: So from 4:00 AM to 7:00 AM, I like to work on my business. 4:00 AM to 7:00 AM, sometimes 4:00 AM to 8:00 AM. From 8:00 AM until 5:00 PM, that's where I work in my business.
-So what are some tasks look like when you're working on your business?
CLAY CLARK: Well, on my business I say, what happened yesterday that was wrong? And what is asmall business management system that I can build to fix it so it never happens again? So like today, when I came upstairs here, I was thinking to myself, I'm like, gosh, I'm wondering why the TV in the lobby, because we just put a new TV in there, why it has audio. I don't want it to have audio. It shouldn't have audio because it doesn't make sense because we need to have lobby music. So I wrote down on my piece of paper immediately, I need to create a checklist that states what the TV needs to have on it downstairs.
CALEB TAYLOR: Built a system.
-Built a system. I wondered about six months ago, why does our bathroom consistently smell awful, and is the trash not being taken out in the morning? So I looked and I said, is this a system problem? So I look at the system, and I'm like, is this on the checklist? And I realized it was on the checklist, right? We had a great checklist, but we had a horrible person doing it. So I made a switch, and now we have the incredible Renda. And she's bringing some splenda to the job. And now it's going great.
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-I know from working with you, you're great at these systems. Setting them up, implementing them, and keeping people accountable for them. And you've made a list, and I wanted to quickly run through this with you, and you can tell us why we need these lists, and what we need for them. First one is the differentiator for the company. That's a differentiator for the company.
-It's what you do differently. What do you do differently from your competition?
-Bottom line. Explain it to me. And you need to have at least three ways that you're different from the competition. As example, DJ Connection, how are we different from our competition? Well, DJ Connection, we provide professional sound and lights at an affordable price. So one is affordable price. Two, we do unlimited time. Why? Because no else does unlimited time. Three, we customize your party. We help you plan your party. And we have a No Michael Bolton guarantee. We use props no matter what happens. We will not play Michael Bolton, even if it's on your list, we won't play it. And some people like, one out of a hundred people would be like, what if I want Michael Bolton? Sorry, that's just a policy. We stick to it. We cannot change it. It's a tenant. It's in our system.
-That's incorporating the humor that you said you wanted ingrained in your business?
-Example. Another example would be Jimmy Johns. If you go to Jimmy Johns, you know they make the sandwiches fresh. But it says on their sign, free smells. That's hilarious. Free smells. It's a differentiator. It makes them different.
-So the next one here. A vision or goal for the company.
-We talked about that, vision or goal. Point is, if you don't have a vision that's inspiring, if it's covered in poop, you attract flies.
-Don't want flies. Number three, a career path will upside for the employee.
-OK. Here's the deal. Remember, we talked about Roy, Roy's LLC. If you're career-- if I said, hey Caleb, what's awesome is if you work at Thrive for about, I don't know, seven years, you probably will be just a little bit above the poverty level, if you really work hard. And are you going to want to work there. That's stupid. And then furthermore, if I own the company, and I'm in poverty. What if I own the company, and I'm in poverty, and I'm saying, hey, my life currently is terrible in every discernible area. I work 70 hours a week. I make no money. Come join me.
-Nope. Not going to do it.
-Come on, come join me. We could take over--
-No, thank you.
-Not the universe, but maybe we can-- you know what I mean. It just-- we could--
-Number three, pay scale, why do we need this?
-OK. I believe numerically speaking, we're on number four.
-Oh, yeah, you are correct.
-The pay scale--
-Numbers are difficult.
-OK. I'm sorry. The pay scale. The thing about the pay scale is that we have to explain to people clearly how they get paid. Now I'm helping somebody right now. I know I'm helping somebody. Because I know just last week, I'm talking to a business that was going to hire me to do some consulting, and I'm, kind of, in that booked out phase, not available anymore, all I'm doing is thriving on, baby. So I'm talking to this guy, and I said, specifically how many deals do I have to get if I work for you to get a bonus? He could not articulate it. He's like, well I mean, you know, it would be hard, we'd have to meet. We're going to try to make a pay scale. I'm going to try to get my-- so you mean if I work for you right now, you can't tell me what I have to do to get a bonus?
-This guy's been in business for like nine years. Nobody on the staff knows how to get a bonus. Well, why the heck would you work hard? I wouldn't.
-That's why I hated New York so much. I got to be real. New York's a great company. And there's a lot of great managers. But that's what I specifically had a hard time working there is because my manager never gave me any goals. He's like, just show up and treat our guests great. Why? I don't get paid more. And he's standed there looking going-- well the pale, the pale, pale skin Kent Clark guy, he's just the pig headed guy, I would work hard even if I didn't get a bonus. No, you wouldn't, because 70% of people in America do not.
-So I'm just saying, like what is the point of working hard, if there's no upside? So on the Thrive team here, you guys all get paid, based on how much we can help people. So the number of people that we help, determines your paychecks. If there was no incentive, I don't know why you want me to show up to work. I know for me, I just mailed it in every day. I didn't care, which is a big goal in the scale pay, people love it... Small Business Management.
-The next one is, you need a clear task list for each employee.
-Why's that important?
-Well, I mean, this is funny. I went to the business, a doctor's office, about two years ago, and I remember going there and the front desk lady, the boss is just beating her up, saying she never gets her job done. She just never gets her job done. I'm like, does she know her job? Oh, absolutely, it's common sense.
-I talk to her. She has no idea what her job is. She had no idea. And this guy wanted her to be checking voicemails, and keeping a call log, and calling in with appointments, and she had no idea. And he just kept going, it common sense, man, it's common sense. And then what happens is, they eventually fire them, or they just get that animosity built up. But if you tell people specifically what tasks they have to do, they'll do it.
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-And then we got dress code. Is this actually like that important?
-Oh, man. Dress code. Gosh, just dealing with this last week with a business owner. In America today, Europe today, Canada today, Mexico today, any place on the planet today, we all have a different version of common sense. Common sense is not common. So I used to have, if you kind of zoom in, I don't know if you can see this, if we can kind of zoom in, but I still have earring holes. Maybe you can see the earring holes there, but see I used to have earrings, and I thought it was totally, socially acceptable, to wear double hoop earrings to meetings with upper scale clients when I was trying to convince them to buy my services. I thought that was like a normal thing. And I was raised with-- I was around the school system where I was taught, don't judge me. You can't judge me.
-Yeah. This was me being me. YOLO. You can't judge me.
-So what was the wakeup call for you? What changed?
-People didn't buy anything. And so I went to a guy, he told me, Clifton Taulbert. My conversation went something like this. He's a bestselling author, Pulitzer Prize nominated author. He's like, hey, you're going to have to take those earrings out, and start dressing up sharp, if you want to start getting paid, you know. And I was like, whatever, man. YOLO. You know, I don't need to be-- if you guys aren't familiar with YOLO, they'll put what the definition of YOLO on the screen here in just a second. But the whole thing is I thought, you can't judge me, whatever.
-Don't be a sellout.
-Don't be a sellout. And then it was pointed out to me by this wise person, well the thing is, you won't be a sellout, because you won't sell anything. Oh. So that's why I decided I have to be a sellout if I want to sell something. So I had to make a dress code.
-I like it. The next one we've got is the importance of communicating, good communication.
-Yeah, communication. Now here's the deal. At Thrive, as we're growing Thrive, biggest issue for our company, any company, is communication. You have to know, hey, if we're going to record at 6:00 pm, or 7:00 pm, or 4:00 am, whenever, who do I need a call to get in? Who do I need-- we're building a new studio, so we need studio keys. Who do I call? We need to know, who do I call? What's their number? When does the newsletter go out? How do we know what's going on? There has to be a communication system of, when will you talk to your manager? When will you talk to your boss? There's a lot of business owners today where, that Roy example again, this guy comes to work every day, when I went to this moving company, nobody on the staff had any idea who they were supposed to call if there was an emergency.
-It's not clearly communicated who we need to communicate with, or how we communicate.
-That makes sense why that would be important.
-So the next one we've got is the workstation, the computer, phone, internet access.
-Workstation. We have to make sure that the workstation is set up, because again, we have employees all across America right now, who can't do their job, because they don't have the tools they need. I see it all the time. So you see people that cannot get the job done, because they don't have the tools they need. So as an example, we needed the other day to hole punch.
-If I don't have a hole puncher, it's kind of hard. Well then the employee has to leave their job to hole punch. So we built her a new call center. We made a list of all the equipment that we needed for our team, and we want to have that. You don't want your employees to have to spend all their time trying to figure out what tools they need. But this happens all the time in business.
-You have to have all of these set up your saying before you start hiring people.
-Ah, you shouldn't hire anybody, unless you have all this. Yeah.
-Let's keep going. A couple more. Written expectations for the job. We talked about how you need to communicate it, but there's some importance in just writing it down, too... Small Business Management.
-Yeah, written expectations. This is huge. Because if I don't know what the expectations are, that's a problem. But if it's not written down, I don't sign it, that's called an employee handbook. If I don't sign the expectations, then there's a disconnect. I thought you thought this. I thought you thought that. In businesses everywhere, I see right now, especially in the medical industry, there's so many standards you have to adhere to, so many guidelines, that if you think one thing, and I think one thing, I might get sued, because you are doing something different than what I thought I was supposed to do. So expectations are absolutely-- it's super important that you do this. And again, this is called a handbook. You need to have an employee handbook. Boom. Some of you're saying, but that's a waste of time. I only have two employees. You'll never grow from me to we if you don't do these things. Bam.
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