Understanding How Fear Influences Decision Making

Don’t Be Chicken Little

How have you changed the way you are making decisions today compared to when the economy was humming along?

Understanding how business people make decisions is a very complicated topic. There is plenty of subject matter here to write books about, so I am going to narrow our discussion into three areas.

1. Understanding how fear influences decision making.
2. How not to allow complacency to creep in.
3. The Parkinson Principal and how to fight it.

As we have been traveling across the country delivering motivational and functional sales workshops there is a solemn sense of fear in most of the attendee’s faces. There are not too many smiles in the audience these days.

We wish the new seriousness was due to a heightened commitment to running their business right. The reality is that most owners are petrified of the rapidly shrinking construction activity! They are being consumed by – FEAR!

Even if your business is doing well, you can’t ignore the signs that so many others are in distress. Bad news is plastered everywhere! No news outlet has spared us of the gruesome details. Yes, the economy stinks to high heaven.

What is everybody afraid of?

Will they have a job? How they will survive? How they will pay their financial obligations? All legitimate concerns.

But FEAR and its close cousin, panic, will not help you. They hinder sound decision making.

Fear is simply an acronym for False Evidence Appearing Real. Many an intuitive entrepreneurial contractor who have historically made decisions based on facts have now resorted to inferior analysis and panic-driven decisions that produce poor or disastrous results.

How to offset the doomsday fear and minimize its impact on decision making.

Figure out how your company is going to out-do your competition. Figure out which financial actions will create flexibility now and in the immediate future. Figure out which financial steps will protect yourself against a patch of bad luck without going overboard and shutting off your ability to complete jobs.

For an example of a trap to avoid, contractors will be eager to purchasing equipment because there are some really good deals out there. A classic mistake. Do not increase your fleet unless you have the sales today or in the near term to support the addition of more equipment.

Examine where are you with your marketing and sales systems. Do you have a plan? Did you scale back your investment, expectations, and projections? Are you guaranteeing a shrinkage of sales by cutting back on your marketing and selling efforts?

Deal with facts not fear.

Don’t project or hope for situations that probably won’t materialize.Cut out excesses such as unnecessary overtime and shop time. If you must pare down your workforce, keep your very best people no matter what they cost you. You need to be able to gear up and ratchet down your human resource band-width quickly to remain cost competitive and profitable.

In the bestselling book, Who Moved My Cheese, the four characters all handle change differently. It is a quick, insightful story about change. There is one character, Hem, who refuses to leave the “cheese station” once the cheese is gone. Hem decides to stays in the empty “cheese station” and starves to death. Hem is afraid of change.

Be prepared to Move Your Cheese! Change can be good! Go through your customer files to mine golden nuggets from past satisfied clients you haven’t kept in contact with. Look for markets that are still prospering.

Right now, there is a very fine line between being profitable and losing money. A single isolated event could tip your company in the red. In today’s environment you MUST make sound, prudent, timely decisions.

This leads into the second phenomena; which we will call COMPLACENCY.

Complacency is the opposite side of the coin from fear – but it’s probably three times as deadly!

Often, a total lack of action to surrounding circumstances can lead to a venomous painful death. This would be our similar to my old friend “Hem” in the Who Moved My Cheese book.

One of the solutions is a continuous and sustainable sense of urgency.

Don’t mistake panic for a true sense of urgency. Panic is running around doing things hap-hazard that do not fire your bullets at the targets that make a difference.

Urgency focuses efforts on the critical success factors that need to be accomplished, while allowing you to win as a team.

You need to identify these success factors. And you need to act on them. Below I list a few that are universal to most contractors:

• Master accurate job costing.
• Increase lead generation by defining and expanding your marketing plan.
• Maintain or increase sales by pre-qualifying your sales leads.
• Cease chasing unprofitable jobs or ones that don’t fit your capabilities
• Follow-up, follow-up, follow up with all your prospects and customers.
• Curb all unnecessary spending.
• Make sure you have the right people on your bus and drive it to success.

Now you have other success factors that I have not identified. Identify them and implement solutions for them too.

Time to introduce you to the Parkinson Principal.

The simple definition of the Parkinson Principal is: “work expands to fill the time available”. Think about the essence of that statement.

If you give an individual a task and a long deadline, how often is the task completed early early? How fast would the task have been performed if it was approached with a true sense of urgency?

If your workers’ attitude is “We are going to get paid for eight hours today, and the work could be accomplished in five, but we’ll take the whole eight hours.” you have fallen prey to the Parkinson trap.
Stop that mindset fast in its tracks!

As a contractor one of you biggest expenses you have is labor. If you build a sense of urgency in everything your team does, you can win big!

The companies that are agile, willing to make changes; even if they are out of your comfort zone, face their fears and operate with a united sense of urgency are going to survive. Many will even be stronger in the future. We Hope You Join Them!

Perhaps you want to have some other business people or trusted confidants to bounce your ideas or important decisions off of.

Especially if you feel fear or complacency are lurking in your mind or organization. I recommend that you carefully choose your counsel. Pick other intelligent people who are not doomsayers. Our consulting business is flourishing because business owners now more than ever realize they need assistance. Don’t be afraid to seek professional advice.

Remember, life is too short to be grinding away at a business
that doesn’t produce the rewards you deserve!

Reprinted with permission from:
Ron Roberts & Guy Gruenberg,

Websites for Dummies?

Hi Everyone

Technology – Gotta love it! (or not), It’s here to stay and we better get used to it. Sometimes it makes all of us feel sort of stupid. Including me. The challenge to keep up with all of the technology out there is enough to make a rouge scholar feel sort of incompetent.

It’s not that any of us are dumb. The real problem is there is just not enough time to figure all of this out. We could hire someone to do it but will they do a good job, will it work like we want and can we afford their services.

We’ve talked a lot about websites lately at ChiefExperts.com and It’s time to take action.

We’re done a a one and a half day online class for current members of ChiefExperts.com. We’re discussed you how to set up and maintain a website from A-Z. And in plain English.

If you don’t already have a website you need to get one. If you have one and want to improve it and take control of it you’ll know what to do. If you’re working with someone on a site you’ll know what to tell them.

This is cool stuff. I’ve been a student of this for years and I show you how to do it.

This is really important – The first thing that a potential client will do when looking for contractors is look for your website. It’s the least expensive and best form of advertising you can do. In fact all of you advertising should lead people to your website. There you can show them how great you are.

Take a look at your site. If you were looking for a contractor would you trust the company represented by your website. That’s the first thing to ask yourself. You’ve got just a few seconds to convey trust.

Our focus was show you everything you need from how to get your web URL to what to put on each page and everything in between. This is going to be fun!

I need to ask you a favor. Could you please leave a comment and let me know if you would be interested in another class like this. If so what sort of things would be helpful to you. You feedback is important and very valuable.

I also want to make you aware of the software that I’ll be using to teach the class. This is world class software and it’s as easy to use as a word processor. I’ve been looking for a platform that is simple enough for anyone to use and this is it. It’s not free but for $197.oo it’s the best value for what it can do that I’ve ever seen. You can download a free 30 day full working demo to check it out. It’s powerful stuff and I’ll show you exactly how to use it as well as the other things you’ll need to know about setting up a great website.

The software is called XSitePro. Here are some links for you to check it out:
XSitePro Home Page
Product Video
Product Training Video
Product Brocure
Order Page

I’ve worked with lots of website software but this company really gets it. They make a great software, back it up with great support and are building an unbelievable community. I’m excited to be part of it.

Check it out and learn as much as you can about the software. That way when we do our class you can focus on creating your website and not so much on the software.

Remember to leave your comments and I’ll keep you informed as we firm up what we’re up to.

To Your Success

Dan Baumann

Thinking Outside the Box!

It’s time to dust off my Blog and give it another shot. Blogs are a great way to communicate with your clients but only if you post new information to them regularly. I’m going to make a commitment to use this blog to keep you informed and educated in 2009. So here goes.

As much as the holidays are a wonderful time of year I’m glad they’re almost over so we can get back to business. December was a lousy month for many involved in the construction industry and consulting and education was no exception. We need to take proactive steps to make sure 2009 turns out to be a good year.

To start out in January I’ll be starting a new round of education for Chief Architect users. Here’s the new schedule. There are many new topics in January that we’ll be covering including

• Finishing the Working Drawing series
• Using Spreadsheets
• Advanced Roofs
• Slabs and Moldings

I’m also putting together a new class on creating and maintaining a website. Watch for more information on this soon.

A new monthly membership plan has been added to make it easy for you to access the new classes.

I’ve talked with some of my fellow consultants and many contractors recently and it’s become obvious that with the hard times that we’re experiencing many of you have slashed your education and marketing budgets. Don’t to it.

The successful contractors that are staying busy during this downturn have a common thread as to why they are busy. They continue with their education and increase (not decrease) their marketing budget. If you don’t stay on top of things and don’t get the word out that you’re not a well kept secret how can you expect to get new leads coming in.

These contractors are good at thinking “Outside of the Box” I’m sure many of you have heard this term and it goes with an article I did a few weeks back called “Prime the Pump” I know these are simply clichés but when times are tough sometimes these silly sayings will spark some imaginative thinking.

So when you’re struggling coming up with new ideas that can spur some business think about the  ”9 Dots”  See if you have what it takes. Draw 9 dots on a piece of paper like the illustration. Now connect all 9 dots using 4 lines without raising your pencil off the paper. (Hint – think outside of the box)

Connect the 9 Dots with 4 Lines without raising your pencil

Now go ahead and watch the short video I put together and then come back and make a comment about some of the ways that you are “Thinking Outside of the Box” in your business. Let’s get this thread going with lots of good ideas.

Also try searching “Think Outside the Box” You’ll get some great articles.

Remember to leave your comments!

Easy way to add pictures to your site

I just finished uploading pictures to a web page using the free and easy to use website run by yahoo:  www.flickr.com.  I was able to learn how to use the website quickly and after spending a short amount of time navigating through the site, before I knew it, I had edited and organized several of my photos within just a few minutes.  And, yes I did say “free”.

By uploading your photos onto “flickr,” you can organize your photos, edit them using a variety of sizing and coloring tools, add text, and allow others to view your photos on-line.

Organizing and editing your photos on-line makes it easy to add them to your business website.  Pictures are an essential aspect of your website as they allow potential customers to get to know you.  We also recommend using pictures of your previous customers and their projects, in your testimonials.

In addition to posting photos of yourself, your team, and your testimonials, “flickr’s” photo editing capabilities allow you to create unique before and after photos of your projects.  The “create” tab on the photo editing page allows you to get creative with your photos by changing your photo’s shape and adding special effects and frames to help your photos really standout among your competition.

Don’t be afraid!  Try “flickr” to create a more interesting, personal, photo-filled website!

Caron

Good Question & Good Blog

Someone asked a great question on a recent blog that I thought would make a good topic.  Jim asked about putting your ‘real’ name on blog posts and blog comments.  He wondered if there were any security issues surrounding this.  Here’s my response…

“To answer your question, no it’s not a dumb question at all! You can feel free to use your real name. Getting your name (& website) on the internet is good for business. Google & other search engines like finding you & your company out there & it should help you get noticed more. So, go ahead & I’d encourage you to put your website link in as well, especially if you have a blog to link to….”

The benefit to social marketing on the internet is to get your name and your company out there to potential clients so you can tell your story.  An active website, blog, and blog comments all help.

We have a great example for you of how a contractor can utilize a blog.   Here’s a blog that one of our webinar clients, Advanced Contracting has begun.  Great job Patty! 

http://aciremodel.com/blog/

Let us know if you’ve started blogging, we’d like to see it.

Thanks-
Caron

Handout for the 4-26-2008 Webinar about Advertising

Hi Gang

Thanks for attenting the webinar about advertising. As promised, here is the link to download and print the handout from the class.

http://www.chiefexperts.com/cecontent/Markupandprofit-Advertising_4-26-2008.pdf

Let me know your thoughts on the class

Dan

Website Review Webinar

Last Friday was a great day at ChiefExperts.com.   We hosted a webinar addressing the new world of marketing and how critical websites are to your marketing efforts.  We had a very informational session with over 100 people enrolled.  Dan Baumann led the discussion on marketing as it evolves from the traditional 4P’s of - Product, Price, Place and Promotion to the new world of social marketing and the 4R’s – Reveal, Reward, Respect and Retain.  He also discussed all the mental triggers that your marketing efforts, especially your website, should address. 

We also offered to review your websites and offer our advice on areas of improvement.  Wow – we were overwhelmed by your response!  We had over 50 requests to review your websites.  We loved it and have really enjoyed visiting your sites and giving them a critical eye.   We have seen some excellent sites and some not so great sites.  We talked about a few during the webinar, with much more to come.

There is so much contractors and designers can do on your website:

• highlight amazing galleries and portfolios, 
• promote your awards,
• video testimonials from clients, subs, employees,
• photos and bios of your staff,
• private client areas,
• your contracts,
• education for your clients,
• your community involvement,
• & blogs, of course. 

The list keeps growing every day, it’s really exciting.  Your website is a great place to differentiate yourself in the competitive construction industry.   

If you want to hear the whole webinar, current members can check it out at ChiefExperts.com, it’s very interesting and will get you thinking about how you can adopt these new marketing strategies and enhance your website to make it more effective.

Good luck!

What to Blog? – Good Question

One question we get from contractors often is – “What should I blog about?” 
Good question.  Let’s see if I can give you a good answer. 

A blog is a new format to share “news”.  What is “news” is pretty subjective, but that’s the beauty of the internet, if you don’t find a blog or website newsworthy, then you don’t have to read it.  That said, if you think something is newsworthy, great, blog about it.

Some suggestions for contractors or designers -

• Open House – talk about an upcoming Open House you are hosting
• Trade Show – tell people where you’ll be, what contest you’re offering, invite them to come by 
• Community Event – talk about one you’re participating in, even if it’s for a favorite charity
• Post Event – after the event is over, talk about what you did, what was interesting, surprising, or even disappointing
• Green – it’s the new buzz word.  If you’re doing something in this area (a project, your business, your home), talk about it
• Designers – talk about a particularly nice design feature you’ve done, show pictures, talk about how the client loved it, quote them too
• How To – talk about a fairly simple home repair or project that homeowners can do, include pictures or video if you’re ready.  It makes you the expert & if they struggle, maybe they’ll call you to take over.
• You – if nothing else, talk about you & what you’re doing, build a relationship with your future clients.  If they like you, they’ll hire you.

Hopefully these ideas will give you a start.  Go ahead, have fun with it. 
Let us know what you’ve blogged about.  We’d love to hear about it & read it.

My First Blog

This is my first venture into the world of blogging.  It seems to be the way the world is moving, so why not. Plus, ‘my boss’ asked me to do it.  We wanted to see how easy it would be for contractors & designers, with limited internet experience, to start your own & I’m about as inexperienced a user as you could find.

I am amazed at how easy it was.  I tried a couple blogging sites & decided that this one, WordPress is the easiest to get up & going. 

A couple things I learned:

• think about your username – that’s how you’ll be found – use your company name if possible
• there are a lot of options – start simple & just jump in
• play around – it’s easy to delete, change, or start over
• if you don’t like writing – find someone in your company or family that does & use them
• write about something you know – your business, the industry, you

Blogging is a great way to increase your company’s exposure.  It also gives your clients and potential clients a more personal glimpse into you & your business.   They get to know you better & when they have a project to be done, they’ll turn to someone they know & trust – you! 

At least that’s the idea & since it takes just a minimal amount of time & effort, why not?

So, give it a try & let us know how it goes.  I’d love to hear about your experience.  Good luck!!  Let us know if we can help. 

Have Fun!
Caron
www.ChiefExperts.com