This year, Chad Jones and I had the opportunity to attend the Utah 100 awards ceremony at the Grand America Hotel in Salt Lake City. The room was packed. There were probably around 500 people there. 130 of the companies were there that were winners of some kind, including Five Star Painting. The Utah 100 honors the 100 fastest growing companies in all of Utah. At the ceremony, we learned we placed 33^rd among the top 100 fastest growing businesses. We could not be more pleased and proud.  We have won some awards in the past but have never before placed in the Utah 100. There are many great companies who placed this year and we are so excited to be numbered among them.

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Are you selling a product or an experience?

A cup of coffee is, all things considered, probably worth less than fifty cents. How then does a company like Starbucks get its customers to pay upwards of five dollars for that same cup? The answer is that Starbucks is not simply selling a cup of coffee; they are selling an experience. Starbucks provides an environment and a culture that makes a simple (or not so simple) cup of coffee worth that much more.

This idea is explored in the book The Experience Economy: Work is Theater & Every Business a Stage by B. Joseph Pine II. Alongside Starbucks, The Experience Economy examines the work of Walt Disney who created the world’s first theme parks which provide guests (never “customers” or “clients”) a living, immersive cartoon world with rides that not only entertain but involve guests in an unfolding story. Disneyland and Starbucks both provide more than a simple commodity; they provide an experience.

Businesses that have caught onto this idea of experience economy have learned they can charge more for their product. People want don’t just want to buy stuff anymore, they also want to be entertained. Restaurant theaters have caught on to this, being able to provide a meal and a show, involving the audience in the experience. Movies have become that way with 3D. Some take the stuff out of the equation altogether; owners of corn fields have learned that they can make a much larger profit by creating a corn maze than by simply selling the corn for consumption. Something that has been around forever, like corn, can be turned into an experience for a much greater profit.

It is this same notion of the experience as a commodity that has gotten us so interested in working with Sub Zero. Sub Zero is not your average ice cream shop. On the Sub Zero website, it states, “Our secret is Cryogenics, the science of ultra cold where we use direct contact freezing. Our process takes a matter of seconds. This is the best and fastest ice cream you will ever see or taste.” Sub Zero has turned ordinary ice cream into extraordinary ice cream. “Nothing is frozen before you order.”

Ice cream is a product that has been around forever, but with Sub Zero, they are selling the experience. Couple that experience with an amazing product and that is what will be successful.

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I was on Facebook the other day when I saw a friend’s post about a book by Stephen Covey on the speed of trust. Curious, I did a quick read on the topic. Though I didn’t dig much deeper than that, I have thought about the idea of the book since. How much does trust impact business? How do you build trust quickly?

During the training of our franchisees we often discuss the fact that customers don’t buy from people they like, but from people they trust. If you can build trust quickly it usually leads to improved sales. The thing about trust is that it has to be authentic. In other words, if your only motivation for building trust is to improve sales you won’t be as successful at building trust.

Everyone has a different level at which they are comfortable trusting others. I think we all know people who blindly trust everyone (some may call them gullible). This continues until they get burned, after which they learn to be more cautious about giving their trust so freely. Some become cynical, feeling as though everyone is out to get them, and trust no one. Somewhere in between there is a balance of letting others earn your trust while also awarding that trust and maintaining the belief in the overall good nature of people.

So, in business, how important is trust? Can you even do business if you are not able to earn people’s trust or trust others? Having had a number of business partners to date, I argue that without trust you may as well not even bother starting a business with any partner. Trust forms the foundation of any strong business, partnership, employee or franchisee.

Back to the question of how to build trust quickly. Here is a link to Covey’s book’s synopsis. I think it’s worth giving a read. Having not read this book beyond the abstract and a couple forum discussions, I make the following observation:  Trust is likely the reason so many do business with close friends or family, where trust was earned outside of business and then extended to business dealings.

What do you think? How do you earn trust, and how do you award it to those around you? What is the number one thing that builds trust in your relationships?

I thought I would do a blog post on the motherland. I am a proud Canadian who loves his hockey, Cadbury chocolate bars and health care. I have had the opportunity to be an entrepreneur in both the USA and Canada and have found things to rave about from both experiences. Today I find myself in the USA, specifically in Utah and have to say there is an incredible entrepreneurial spirit that is supported and celebrated here in Utah. It makes doing what I do more enjoyable.

If you are thinking of taking your business from the USA to Canada or from Canada to the USA I thought I would offer a few pointers from personal experience.

Taxes – not all states are created equal in the USA, Delaware and Nevada are both done have an income tax BUT Delaware does charge fees based on your assets or your shares outstanding which in some cases can be beyond what you would have paid. Not all province/state are created equal either. If you are going to set up a corporation in Canada, be aware there are some very competitive laws for small business earning under 200k/year that keep your taxes lower than in the USA. I am not a tax accountant, but that is the prevailing message I get from the professional I use. In Canada be prepared to keep track of both provincial sales taxes as well as federal sales tax – GST. Definitely a pain in the butt but I believe that is the definition of taxes isn’t it?

People – For the most part Canadians and Americans think the same, if you are from out East in the USA you are much closer culturally to the east coast of Canada than to Texas. The border of Canada and the USA really should have been divided East West instead of North and South. It would have collected a closer mind set in each country. One thing that I will say that is universal in Canada is Hockey and health care, not to mention beer. If you have ever watched Bob and Doug McKenzie you may be slightly off your typical Canadian, but not too far.

Relationship – The relationship between Canada and the USA is the closest and most extensive in the world. This includes bilateral trades which sum up to $1.5 billion a day in goods, as well as hundreds of thousands crossing the shared border every day. Canada and the USA work closely together on federal and local levels, whether it is about law enforcement, protecting the environment, or fighting terrorism. The USA is Canada’s largest foreign investor and Canada is the USA’s fifth largest investor. They rely on one another for manufacturing, financing, mining, and other services.

Traveling – When traveling back and forth from Canada to the USA, you must have proof of citizenship such as a birth certificate with a photo ID, a valid passport or visa – that is by ground and air. For more information on what is prohibited when crossing the border, click here.

If you have any questions about taking your business from the USA to Canada or from Canada to the USA, please leave me a comment and I will get back to you.

I am across this article which proves a great point. By using “because“, you drastically boost your odds of getting what you want. You can bother people all you want with your best words; but to really influence people, they want the real reasons why you want what you want. Unfortunately, they will see right through you if you’re lying. So why does the word “because” work.

Here are some business examples to get you on the right path:

• “I want to meet with you because I feel I can boost your sales.”
• “I want to interview you because I admire your passion for your business.”
• “I want to negotiate the price further because my business’s sales have hit a quarterly slump.”
• “I want you to finish the work by tomorrow because I’ll need to pitch it to the Boss.”

Here are some dating examples to get what you want:

• “I want to date you because I feel we have a lot of things in common.”
• “I want you to pay for dinner because I have no money.”
• “I want you to drive because I can’t afford gas.”

Target your words for the results that you want. Clear communication requires clarity within yourself before you can be clear with anyone else. Remember to use the word “because” next time you really want something.

Whether you’re just starting out and want to monitor the health of your business, creating a business plan is your first step on the path to success. Once you determine a business plan is a necessary tool for your company, you may wonder, “Where do I start?” The structure and content of a business plan is to provide an understanding of how the parts of the plan fit together. Business planning is about results. You need to make the contents of your plan match your purpose. Don’t accept a standard outline just because it’s there.

A startup plan includes a description of your business, marketing, finances, and management. The following factors are discussed in detail that contribute to most business success and should guide your planning process:

• Summary – The executive summary is the most important section of your business plan. It provides a concise overview of the entire plan along with a history of your company. This section tells your reader where your company is and where you want to take it.
• Statement – The mission statement briefly explains the thrust of your business. It should be as direct and focused as possible, and it should leave the reader with a clear picture of what your business is all about.
• Company Description – Inform the reader of the basic details of your business, such as ownership, products or services, and legal status.
• Market Analysis – The market analysis section should illustrate your knowledge about the particular industry your business is in. It should also present general highlights and conclusions of any marketing research data you have collected; however, the specific details of your marketing research studies should be moved to the appendix section of your business plan.
• Competition – It is better to know what you’re up against than to be surprised when you sales suddenly disappear to an unexpected competitor. A knowledgeable investor needs to know that you have fully examined the realities of your business.
• Organization – a company’s organization and management style act as powerful invisible forces shaping both the daily working atmosphere and the future of the company.

In this competitive and constantly changing business environment, you have to know how to run a business, as well as knowing what business you’re really running. Too many people think strategic planning is something meant only for big businesses, but it is equally applicable to small businesses. Strategic planning is matching the strengths of your business to available opportunities. To do this effectively, you need to collect, screen, and analyze information about the business environment. You also need to have a clear understanding of your business – its strengths and weaknesses – and develop a clear mission, goals, and objectives. Acquiring this understanding often involves more work than expected.

Now that you have a mini understanding why you need a business plan, start gathering the information you need to create one, it’s time to roll up your sleeves and get everything down on paper. Click here for research sources.

Sources:

1. The Successful Business Plan: Secrets & Strategies by Rhonda Abrams
2. Entrepreneur.com

For years I have wondered what makes someone cool. Then, in the most recent issue of Utah Valley Business Q I figured it out. When you read the article on the top 10 coolest people in Utah you will notice that one very notable cool person is on the cover, and he has a beard.

I was intrigued, and starting flipping through the pages to find out if this was maybe a pattern of coolness. And it is. Four out of eight of the coolest people in the Business Q article have beards. Then I realized that there are more cool people that I know that have beards as well. Greg Warnock is a member of our board, and definitely cool. Michael Sikorsky is absolutely cool, and he has a beard as well. So I did what any rational person would do that wanted to be cool as well. I grew a beard.

What do you think? Does the beard do it for me, or should I lose it and against the odds try to be cool without it? If you are wondering if you should grow a beard to help you attain coolness I compiled some information on beards that may help you in your decision.

The study of beards is called pogonology. Men grow a beard for many reasons. They do it out of Religion or culture, or to change their personal style and appearance, change the shape of their face and jaw line, let it grow out of laziness or in some cases to “hide” something. Additionally some men look better with beards, not all beards are unkempt, and some do fit actually certain facial types, in the end it all comes down to subjectivity – who you are dealing with and if you are forced to shave or not due to the job you have. So being part of a man’s appearance, beards can lead people in a certain context to make judgments in one way or the other, positive or negative.

A study from the University of Texas Austin found that men with facial hair were perceived as more aggressive, less appeasing, less attractive, older, and lower on social maturity than clean shaven faces (UTexas.edu). A study on men with facial hair found that 63 percent of them believe it makes them more manly and attractive, whereas 92 percent of women said they preferred a clean-shaven man (Suite101.com).

Billy Mays was a famous pitch man on television, enthusiastically selling a variety of products. Through his work on television and personal appearances, Billy Mays became a celebrity. Just as famous as Billy himself was, so was his dark full beard. Billy demonstrated to the world that a full-bearded man could appear in advertising and achieve great success.

My view is that while beards can definitely bump up the coolness factor, there also can be an itchy factor. I would love to have a study done on what percent of men don’t grow beards because it just is too itchy.

Ten percent of workers feel that their productivity suffers during rainy and cold conditions. Also, employee absenteeism is higher on rainy days with twenty-one percent of workers admitting to calling out sick to avoid facing the elements. Ultimately, it depends on every business. For example, when there is a snow storm a landscaping business can’t complete their jobs, whereas ski resorts are flooded with business.

In the painting industry we see an interesting trend. When the sun shines, people go outside and see what the winter, spring, and fall have done to their home and make a phone call to find out what it will cost to repair. It’s difficult to do an exterior paint job when the temperature is below 40°F. Most customers recognize that cold, wet weather means painting will have to be put off. If we were to compare the number of calls we receive during a sunny week vs. a rainy one Five Star Painting’s phone rings twice as much when the sun is out. Also, interestingly enough, our phone always rings the most on Monday.

Years ago I used to be involved with a winter festival in Winnipeg, Manitoba called Festival du Voyageur. This festival was insane enough to run in the height of winter and provided heated tents with entertainment, ice sculptures, and dog-sled racing. All in all it’s a great time, but I can assure you that this outdoor festival would in some years experience -50°C (-58°F) weather. I acquired some research and did a plot chart of the average temperature to the festival attendance. The correlation was staggering, yet expected. The colder the weather the less tickets sales we would have.

How does bad weather affect your business? A few disadvantages of running a business when the weather is bad can be overwhelming traffic, delayed shipments, tardy employees, and the list can go on. Most businesses have to take risks and try to force through it. Surprisingly, 75% of restaurants report a sales drop of at least 10% due to undesirable changes in the weather. BlueskyLocal.com mentions that if you are in the restaurant industry, this may not surprise you too much since many accept it as a way of doing business. Simply stated, if weather is bad certain businesses suffer. Click here to read my blog post on fishing. It would make sense to avoid direct mail in December to market painting a home and try to do it in the spring as the days get longer, and the sun starts to come out.

When running a business, how can you take advantage when the sun is out? Usually in the springtime, people are more willing to do spring cleaning, clean out everything, and organize. AnnArbor.com states that a Farmer’s Market in Kerrytown, MI decided to take advantage of the sunny skies and warmer temps, and ended up having great success. The mood was festive around the market, shoppers were enjoying the weather and the vendors were happily selling their wares. Many merchants, who said sales were up, credited the boost to the good weather.

Even the best weather professionals get it wrong, so how can an entrepreneur get it right? Before you start marketing take a look into what your environment experiences historically during the months you are going to be marketing, and go with the highest probability plays. You won’t always get it right, but sometimes the stars align and your marketing program will hit the week of sunshine you are looking for.

Matrix is one of my favorite movies. I watched it for the first time in New York while on business with my father. The movie completely blew me away, not only due to the visual effects, but the story line.

This idea that people can break through reality through a paradigm shift from dependence to independence introduces the first three habits of Stephen R. Covey’s, “7 Habits of Highly Effective People”. This shift is based on the character ethic of human beings. We can think of it as the base structure of a building, it has to be strong to be able to withstand the weight of the building, and the author labeled this shift as private victory since the shift is done between you and yourself.

The next three habits shift us to total interdependent. They are based on personality ethic management or what we call modern management. This provides us with the tools needed for managing our lives in a social environment, and the author labeled them as public victory since it involves others.

The seventh habit is introduced to contain all the other six habits in an upward spiral motion to guarantee their effectiveness and stability. It gives a balanced renewal of the four basic dimensions of life (physical, spiritual, mental, emotional).

Now that I have successfully blogged about one of my favorite movies and books I will touch on a few ideas on Perception vs. Reality.

I have learned over and over again that perception is reality. No matter what you may think your brand means, and what your brand does, whatever your customer perceives is reality to them. This is an interesting concept in franchising and a big message on why branding is so critical.

I have been going to Subway for some time, and for the most part have found that Subway has done a great job of creating a consistent brand through each of their stores and food quality. Have you ever been to a subway where for whatever reason the restaurant was a mess, or the bread was stale, or perhaps the people working behind the counter were disheveled? This has happened to me once, and it has always stuck out in my mind as strange, because Subway has done an excellent job of creating brand consistency.

When does our perception begin on a new brand? For a lot of small business it is the sign and building that we see when we drive by. Companies are just like people, we all give a first impression and begin creating the reality that your customers perceive. This is one of the main reasons I got into the painting industry and began franchising. That first impression is often communicated by colors and the quality of the environment that people are operating in. The art of persuasion and influence is a tricky area for entrepreneurs, but it’s not as mysterious as you think.

The overall appearance of your workplace has a huge impact on how your customers and even your current employees perceive your business. Color plays a large psychological factor in how your customers identify your business and respond to your products. Most customers aren’t willing to accept a product if it doesn’t come in their preferred or perceived color combination. That in itself explains how significant colors can be. For example, most popular chain restaurants use the colors red and orange. These colors have been determined to stimulate appetite and encourage diners to eat more quickly. Just what a restaurant wants in a customer!

If you are considering changing colors and would like a quick guide on how to impact the perception of your customers before they even walk in the door I have prepared a short chart below for quick reference.

I have been coaching soccer now for about five years. I started with our oldest boy and have continued on with the program in the spring and fall. I would have to say that I look forward to soccer more than the boys do. There is something about bringing together a team and working towards a goal. Seeing progress at practice and on the field is very rewarding. Regardless of the players, a good team will out play and win a poor team with a few superstars.

What does soccer have to do with running a painting company?

1. Practice. Just today I spent a few hours with one of our newest franchisees as we went through the business, preparing forecasts, and committing to certain tactics that are proven to work in the field. This is an exercise every business owner should engage in regularly. It is the art of visualizing a business on a spreadsheet that gives you the foundation to go out and execute. To keep your COGS (cost of goods sold) in line. To ask for the close and keep your close ratio to projections.
2. Teams win. In the service industry you need your team to work like a well oiled machine. Our sales center offers the backstop support for our strikers. They are confident that if they are working hard at trying to put the ball in the net. Understanding that their back is covered to make sure every call that comes in is serviced, and sent back to them to score. In today’s environment, your team is everyone on the field with you, and off the field cheering for you. Involving your significant-other or advisors in your success and failures gives you perspective and encouragement to get out there and make it happen.
3. Don’t run around like a chicken with your head cut off. In the service industry this is especially relevant. You can waste valuable energy trying to run that ball up and down the field when the pass would have gotten it there twice as fast. In business, you need to be able to delegate, pass the buck, and involve others in your success.

One of the most rewarding parts of business is in the perfect execution of a sale from the moment the opportunity presents itself, all the way through production and payment. It takes practice working like a team and efficient use of your resources to pull it off.