3 Customers to Avoid Whenever Possible

Some customers just aren't worth the time and effort. Here's how to spot the customers who are worth avoiding.

Most of the time, customers are (obviously) a good thing to have, even though some can be difficult. However, there are three types of customers who are always more bother than they're worth:

1. Leeches

Leeches "pick your brains" and let you help them design a solution, and then go out and hire somebody else. In some cases, the competitor can undercut your price because you've already done the legwork for free!

For example, I was once asked by a fairly well-known market research firm to define and propose a series of quarterly reports that would cover the IT services business. I scoped out the entire project, identified information sources, built a list of potential customers for the reports, and created both an outline and a sample report.

Once I'd done all the heavy lifting (costing me around $5,000 of my time), the firm gave the contract to another writer who would do the work on the cheap.

How to spot them: When a prospect asks you to do work for which you would normally charge, demand a quid pro quo. In the above example, for instance, I should have extracted a promise of partial payment if the firm launched the service without my participation. If the customer balks, then it's probably looking for (your) free labor.

2. Players

Players are customers who use you as a straw man to manipulate the vendor from whom they're planning to purchase. They ask you to bid on an opportunity with the promise that the lowest bid will get the business.

In fact, the customer has already decided to hire a particular vendor (for reasons that don't have to do with price), but wants a low bid from you in order to extract price concessions from that vendor.

For example, I was once on a proposal team that was bidding on a massive upgrade to a Fortune 500 company's IT systems. While our proposed solution cost about half as much as the solution IBM was proposing, we found out later that we were never in serious consideration. The customer was going to go with IBM no matter what, but it was able to use our proposal to extract a 10 percent discount from IBM.

How to spot them: Find out which competitors are already talking to that customer and who inside the customer account is sponsoring them or allied with them. If a competitor seems well-entrenched, make a clear decision whether you've got a real chance of winning an uphill battle. Note: Don't get hypnotized by the big money on the table (because it's not really on the table).

3. Exploders

Exploders are customers who attempt to bully you, berate you in public, or otherwise act in an unprofessional manner.

I once got an email from a reader who had a customer who started screaming about some problem that he'd had with her company's product. When she retreated from his office, he followed her all the way to the elevator, still yelling at her.

The problem with exploders is that, if you continue to work with them, you waste mental and emotion energy on their behavior, rather than on selling. Worst case, you entirely lose the desire to help the customer because the customer keeps acting like a jackass.

How to spot them: Exploders don't just explode when you're around; they explode in front of their employees, too. If you sense that everyone at a customer site is walking on eggshells, you're probably dealing with an exploder. Unless you're very thick-skinned, you'll be more effective, and sell more, if you focus your sales attention elsewhere.

From Inc. Magazine

6 Things Entrepreneurs Wish Family, Friends and Employees Understood

Entrepreneurs often feel misunderstood and with good reason. If people around them acknowledge the following six points, everyone can benefit.

I started my first company when I was 25.  I was a reluctant entrepreneur. My sales abilities outgrew three companies, and I couldn't seem to manage the politics necessary to get where I wanted to go at the speed I wanted to get there. So I took a deep breath, opened a company in 1989, and never looked back.

But in my journey of building four businesses and making the Inc. 500 list, I often found I saw the world differently then many in my circle. I would struggle with communication and empathy, as would the people around me. My family and my friends would never quite understand why I took action with such passion and drive. Though they would be continuously fascinated how I could make things happen from what seemed like unrelated connections and events.

Employees appreciated my drive, but still considered me a puzzlement. They couldn't imagine taking the risks and responsibility of building a company, and I couldn't imagine not having control of my own destiny.  I have spent decades in the close company of more than 1000 entrepreneurs in public session like Inc. conferences and in private forums like theEntrepreneur's Organization (EO). I have come to learn that we have similar ways of viewing the world and creating lifestyles. It's not for everyone, but it works for us.

If you are an entrepreneur, you need to articulate the six concepts below so the people in close proximity can comprehend your behavior. And for those of you engaged with an entrepreneur, I hope the tips below shed some light and give you some guidance to enjoy the ride.

1. Entrepreneurs are benevolent narcissists. There is no question that many entrepreneurs act as though they are the center of the universe. Once I get a vision in my head, it stays at the forefront of my mind until I either eliminate it or execute on it. Over time, I have learned that in order to make visions come true, I must constantly sell and recruit people to my mission. That means talking about my ideas and actions... a lot. So yes, my world revolves around my vision and ambition. That is the narcissistic part.

But unlike most self-centered people, most successful entrepreneurs aren't in it just for themselves. They love to bring other people along for the ride. Making others happy, wealthy and successful drives entrepreneurs. They create companies to benefit society with their products and services. They may interpret that benefit differently than most people, but few are motivated by pure exploitation.

Tip: The next time you feel ignored by an entrepreneur, ask them how you can get involved and benefit from their activities. You may be surprised at the opportunity that opens up.

2. Entrepreneurs evaluate risk differently. The term risk-taker is often associated with entrepreneurs. Most entrepreneurs don't believe they are taking risks by opening businesses and growing companies. Gone are the days of institutions that provide steady employment and guaranteed retirement. I personally lost everything in the 2008 collapse of the banking industry. But I have many friends who spent 30 years as employees in that field and also went through great hardship. I was able to rebuild by taking advantage of opportunity and being agile while many of them are still trying to reconstruct their lives.

Entrepreneurs know the only safety net they can bank on is their own ability to leverage knowledge, resources and relationships to build something from nothing. They believe there is greater risk in being boxed in to a structure than to venture out to new horizons. That all being said, many of us have learned to overcome our material desires and put a little away for those rainy days.

Tip: Don't assume that actions taken by entrepreneurs are careless or not well considered. If you have concern, ask about the process or diligence. You might be surprised what you learn.

3.  Once entrepreneurs decide to take action, they commit. There is an incorrect assumption about most entrepreneurs that they are impulsive. The image of people ideating all over the place and randomly straying from project to project is one that is constantly portrayed in media and is most often a mischaracterization. Most of my successful entrepreneurial friends are actually quite disciplined and focused. They have learned to create structure where there is none. They have a set process for evaluating opportunities and are wary about taking on a new project without vetting it carefully.

But once the due diligence is done and action is required seasoned entrepreneurs will commit all necessary time and resources to making the dream a reality. They have no tolerance for doing things halfway. The project may fail, but the entrepreneur will only be satisfied if it does on its own merits. Then it's time to learn and move on to the next entrepreneurial venture.

Tip: Entrepreneurs in motion are a force of nature. Either get out of the way or support the activity whole-heartedly. Dipping your toe into their projects will only create static and dissatisfaction for everyone involved.

4. Entrepreneurs feel angst about time. There are very few new ideas out there. Hardly anything comes up today that hasn't shown up in a science fiction novel or movie from decades ago. The innovation comes from ways to execute those ideas in a manner that can support the market and a profitable business model. For every entrepreneur attempting to find that perfect path to success, there are many competitors nipping at their heels. Some have smarter people, more money or better partners. Some have all of the above. But that's the game. And to the victor goes the spoils.

Once I complete a vision in my head, it's a race against time to see if that dream becomes a reality. The more complexity involved with the vision, the more challenging time becomes as a factor for success. This is where I use my creativity every day, to figure out how to get from point A to Point B the fastest way possible without sacrificing stability or harming anyone along the way. Executing on my need for speed sometimes results in my being less polite, considerate or reverent than people expect. It's not that I don't care. It's that sometimes I am moving so fast I forget to show it.

Tip: Give entrepreneurs the benefit of the doubt when expecting niceties. You don't need to put up with rudeness, but you can gently remind them that not everyone moves at their pace and others need consideration to feel respected.

5. Every day with positive cash flow is a good day. I remember a few years back being at EO event in Hong Kong at the end of the month. My wife at the time and I were laughing because all around the hotel you could hear the same stressed mobile phone conversations going on about whether or not the attendees had made their payroll obligations for the month. Growing a company requires resources, especially cash, and most entrepreneurs will stretch those limits to make progress quickly in the marketplace.

The lack of resources to battle the competition is usually the number 1 stress point for an entrepreneur. The most painful days in my life have been when I could not meet my financial obligations. Those are the days I feel guilty and inadequate. Those are the days I feel the pain of those who depend upon me. As an entrepreneur I understand that family, partners and employees put their trust in me to help them achieve financial stability. I understand that they do not choose my life because they don't want to risk instability. As long as there is money in the bank to continue the path forward, every other challenge is minor.

Tip: Don't assume entrepreneurs are primarily motivated by greed. Certainly they enjoy the rewards that come with success, but they are driven to achieve the security that comes with strong liquidity and cash flow.

6. For entrepreneurs, working means fun and relaxation. Contrary to popular belief, most entrepreneurs are not workaholics. I describe work as the things we have to do in order to do the things we want to do. Some people like to play sports or dance or do woodcraft as a hobby. Entrepreneurs love to build businesses. We get excited about opportunity,  networking and product development. When I sit at a Yankees game, I amuse myself by calculating the per-attendee revenue and cost of services to figure out how much money is being made. When I run a 5K or kayak, my brain lets loose with creative ideas that can either improve my business or create something new from the resources I have.

I feel blessed that the things I love to do are also the things that make money and give me a sense of accomplishment. When I need to rest my brain and body, I do so. But very soon, I go back to doing what I love because I enjoy it and it makes me happy.

Tip: No need to ever tell an entrepreneur to slow down or take time off. It's like trying to teach a pig to sing. It just wastes your time and annoys the pig.

From Inc. Magazine

How to Deal With Self-Doubt

I woke up feeling a little strange this morning. It’s not the first time, but it’s usually associated with having a little too much fun the night before. Sadly, that was not the case. So I did what I usually do – ignored it and hoped it would go away. It didn’t.

As I sat down to work, it was still there, like a cloud inside my head. So I sat quietly and tried to listen to whatever it was that was bugging me. After a while the fog started to coalesce into beads of thought – concern over a project I’m working on. But there was something else, so I dug deeper.

Finally, there it was. A feeling. Fear. And the fear had a name. Self-doubt.

Not to sound melodramatic, but the truth is it’s been a long time since I felt that way. Fear I’m used to. Every time I pick up a chainsaw to drop a 60- or 70-foot tree that can end my life in an instant, I feel fear. Then there was that nasty unidentified infection a few months back. That was a bit scary.

But it’s been a very long time since I felt any kind of self-doubt. After all, I’ve been around for ages. I’m more or less a veteran at the work I do. And back when I was a senior executive in the tech industry, there was simply no time or place for self-doubt.

Don’t get me wrong. There was no shortage of unknowns, tradeoffs and risks. But you made the best call you could and went with it; let the chips fall as they may. That’s how you run a big company. You strategize, capitalize and turn the crank. If it works, you keep doing it. If not, you come up with a different plan.

But when it’s your own business, when you’re committed to doing something you’ve never done before – challenging your own comfort zone and taking risks with your family’s money and the one and only reputation you worked decades to build – that’s a whole different story.

When you’re all alone in your own little office without the hustle and bustle of a crowded workplace, there’s nowhere to hide from self-doubt. And that can be a little scary. So how did I deal with it? How should you deal with your own self-doubt?

The worst thing you can do is give in to the powerful urge to distract yourself. Don’t pick up your phone, write a blog post, read an inspirational quote or get on Twitter to see how many new followers you have. Self-doubt is important. It's not something you want to sweep under the rug. You want to pay attention and see where it takes you.  

Just sit quietly or go for a walk and ask yourself three very pointed questions”

1. Are my goals true?

We do everything for a reason. Our goals are what drive us to challenge our own status quo and risk failure. If it’s something you know you have to do or really want to do, then that’s one aspect of doubt you can put to rest. If not, you probably have some more thinking to do.

2. Am I capable?

Only you know if you’re capable of accomplishing what you set out to do. If you believe you are, then you should be reasonably confident. Some doubt is normal. Some people use coaches, family members or close friends for this sort of thing, but they’re really just reinforcing what, deep down, they already know.

3. What’s the worst that can happen?

Usually the downside risk isn’t as bad as we make it out to be in our heads. If you’re driven to go for it and you’re not risking something critical you can never get back – like financial security or your health – it’s probably OK to throw caution to the wind, especially if you’re particularly risk averse.

The insights you’ll gain by answering those questions will help determine if you’re on the right path or perhaps need pivot or change direction. As you can see, this isn’t rocket science. As long as you’re honest with yourself and deal with it head-on, there’s nothing to fear from self-doubt. It’s actually a good mechanism for keeping you on the right track.

From Entrepreneur   

This Is How Much Money the Average Entrepreneur Starts With (Infographic)

For most new businesses, getting started means learning how to make do with less.

The majority of entrepreneurs set out to create a company with $10,000 or less. That's according to a recent Intuit survey of 500 small businesses across the country. The survey results also revealed that three quarters of those business owners relied on their own savings to get started. Meanwhile, most of them didn't initially feel like they had enough financial know how to use that money smartly.

Sixty-eight percent said that, looking back on their first year in business, they wish they'd spent more time learning about financial management.

Don't want to make the same mistake? Check out the inforgraphic below from Column Fiveand Intuit for more insights on how U.S. small businesses get started--and how to be smart with your startup capital.

From Inc. Magazine

When You Change, the World Around You Changes

What differentiates the rare few who create an extraordinary life for themselves.

"Give me a lever long enough, and a prop strong enough. I can single-handedly move the world"--Archimedes

Oftentimes, the difference in people's lives is the difference in the standards to which they hold themselves accountable. As Newton's Third Law of Motion dictates: "For every action, there is an equal and opposite reaction." It's that obvious and, equally, that simple, albeit often requiring a Herculean effort to achieve Herculean results.

People who achieve the unachievable are, by definition, naturally unreasonable. It seems as though they make the conscious decision to replace their desires with unreasonable needs. Everything they partake in seemingly requires relentless determination, intensity, and a consistent element of risk to make sure they are constantly operating at a peak performance mode. A quest for a life of uncertainty, combined with a positive belief system, is what they excitedly wake up for each day. A "seize the day" mentality, versus "Oh crap, it's morning already."

In one sentence--the only thing that creates an extraordinary life is an extraordinary mindset. People who have that mindset often are viewed as a little "out-of-balance" by many in their lives.

What differentiates the top 1 percent of the population from the remaining 99 percent is the simple dichotomy of thought process. Those who choose mediocrity do so due to lack of self-belief, or simply a lack of desire to even begin to contemplate their end goals.

One of the most powerful traits of the 1 percent is their acute ability to seek opportunities in and out of every negative situation.

"I took the road less traveled by and that has made all the difference"--Robert Frost

Most people think this poem is about taking the underutilized road. However, if you read the poem, in-depth, the chosen road is moot. It is entirely about the choice of making that first step on whichever road you choose.

Master the trait of taking the first step, and anything is possible. Unreasonable people dominate their future by taking calculated risks and reveling in their own moxie. They live up to their own hype and believe their own vision. They must--otherwise, who will? In short, unreasonableness is defined by taking steps nobody else bothers taking.

Change is not a question of ability; it is a question of will.

The "out-of-balance" people who take the road less traveled are those who simply make a cognitive decision and then execute with little caution.

The more you demand out of yourself and the world you wish to create, the higher your standards become. The rare few who have a clear, compelling, avid understanding about why will inevitably make their move and leave the rest behind.

"He who has a why to live for can bear almost any how"--Friedrich Nietzsche

Those who succeed have a laser focus on their end goals. Our mind reacts to images, snapshots, and short films that we create and file in our memory bank. When envisaging the end goal, those of us with total determination have a tendency to magnify this image, add vibrant color and even animation. Those who never commit are focused solely on the anticipated turbulence of their journey.

Our animated mental pictures "salivate" our soul. The soul is only "satisfied" once the end result is achieved. Thirst … quenched!

"Where success is concerned, people are not measured in inches, pounds, or college degrees, or family background; they are measured by the size of their thinking."--David Schwartz

To ultimately bridge the gap between today and your desired future, you must focus on what you want versus what you don't want.

Imagine for a moment that all the turbulence, uncertainty, and risk paid off, and now your life becomes a smash hit? Soak in that feeling when doubt creeps in. In fact, revel in it.

Many of those in power will agree that their biggest fear is ultimately themselves. Being aware of one's extensive capabilities and unlimited potential can be daunting. Realizing that if they do not take full advantage of these abilities, they will inevitably become a victim of their own demise.

The best way to avoid realizing this fear is to simply take action. Energy flows where attention goes. Therefore, when doubt slips in, change your mindset, get up, get out, and do something!

When you change, the world around you changes.

From Inc. Magazine

Grow Your Business a Thousandfold in One Year With Content Marketing

Want to grow business revenue a thousandfold in one year? Commit yoursef to writing more and invest in content marketing. Here's how to do it:

I came up with the idea of starting a blog before blog was even a word. When blogging software came out, I knew exactly what I wanted to do with it and started keeping track of my experiences as an entrepreneur. I wrote because I enjoyed writing. I also hoped to gain some business from blogging. But even though my blog attracted traffic, I could never track any revenue to it. Things went on this way for 10 years.

Then I got the chance to write an article for a major financial publication, which led to another business editor's invitation to contribute articles. As a result of this regular writing, I have since written for scores of publications, including Entrepreneur.

Most of my writing has not focused on what I do for my business. (I’m a partner in a firm that provides SEO and content-marketing services). When I first started writing for publications I purposely stayed away from writing about anything even remotely related to what I do, for fear of appearing self-promotional. I mostly wrote about entrepreneurship and doing business in Hong Kong, where I’m now based. As time went on, I realized I had experience that could benefit readers and started sharing it, being sure to impart valuable, actionable information and not engage in a sales pitch.

No sooner had I started writing about digital marketing, then the phone started ringing off the hook and my email inbox started overflowing with leads. My writing has led to opportunities to appear on TV, radio and give a TEDx talk. Giving away valuable advice for free, staying as far away from selling as I can has turned out be the best sales tool.

Most of my writing still focuses on entrepreneurship and business matters not directly related to the services provided by my company. But now writing or content marketing has become a core strategy of my business. Content marketing can also deliver similarly dramatic results for your business. Here are four easy ways to start producing content.

1. Blog.

Start a company blog and post on it at least once a week, but preferably three to five times a week. This will help you develop your voice and learn the craft.  

2. Become a contributor.

Major business publications use a lot of unpaid contributors for their content. While you won’t be paid for your writing, you will gain a powerful platform that will provide exposure to an audience you couldn’t reach any other way. 

Identify a publication you want to write for and then contact an editor or a contributor and ask how you, too, can become a contributor. Be prepared to show them past work, which could be your blog. Hey, it worked for me. If you get turned down, don’t despair. Start out writing for a local newspaper or regional business publication, then try again in a few months.

3. Speak.

If you're comfortable writing, you could also be speaking. Start by doing presentations for your co-workers. Then approach other groups that might be interested in your content, like chambers of commerce or networking groups. Offer to speak for free on a certain topic. Many organizations are desperate for interesting presenters. There are TEDx and other high profile events all around the world, and sometimes being able to speak at one is as easy as contacting the organizer and asking. 

4. Post your presentations online.

If you’re going to use a presentation for a speaking engagement, you might as well publish that content online. The online exposure will likely be far greater than what you receive at the speaking engagement. In June I gave a presentation to a group of 40 people in Utah about doing business in Hong Kong. My Slideshare presentation has now been visited more than 4,000 times. Links on Slideshare presentations are clickable, so be sure to have a prominent link to your company.

Content is good if people want to read it and  great if people will pay to read it. Look at the content you pay to read, whether it’s a book, a magazine you subscribe to or content behind a paywall. If you can figure out why you're willing to pay for that content, then you’ll know what kind of content you need to create for people read it.

One of my favorite bloggers is Belle Beth Cooper, one of the original bloggers at Buffer. “I knew nothing about content marketing four years ago,” Cooper said on her website. “Since then I've used content to build my own personal brand, [and] increased my salary by over four times.”  Perhaps this will be your story this year as well.

From Entrepreneur

6 of the Best-Kept Secrets of Successful Business People

I won't cover luck, ambition, common sense, and all of that. Here are some things I think very few people know and fewer implement.

1. The worst-to-best scale

You make decisions every day. With every choice, you have lots of options, but you can sum them up like this: worst, bad, not great, good, better, best. If you can avoid the bad, worse, and worst decisions, first by recognizing them, then by eschewing them, you can do well. If you want to be really successful, identify the best option and pursue it.

So many are thrown off the best course by good decisions. Sometimes, you have to say no to a good business opportunity, either because of the time or resources it would take to make it happen. Really successful people learn the best ways to spend $100,000 in capital and one year of time to get the maximum return.

Never be satisfied with good decisions. Look to make better decisions until you consistently recognize and pursue the best decisions.

2. Self-investment yields the biggest returns

There is no shortage of financial advisers and no shortage of financial advice. Buy this, sell that, invest here, invest there, etc. A savings account at your bank will get you less than 1 percent interest. That's a pathetic return that doesn't even keep pace with inflation. Stock markets can do well, real estate can do well, hedge funds can do well … there are lots of investment opportunities out there. But none, I repeat, absolutely none comes close to the investment you can make in yourself.

First that means investing in education. You may not learn much information, but that piece of paper that says you are a college graduate will open a whole lot of doors that would otherwise be closed.

In one of my first entrepreneurial efforts, I took $3,000 and started an online store. In eight months, I had $8,000 in inventory in my garage and $20,000 in my business bank account. I've been able to replicate this in other endeavors. Try and find an investment vehicle that comes anywhere close to that kind of return.

You'll notice the most successful business people own a business. Becoming an executive at someone else's business is good and all, but owning a business and investing in it is the best investment you can make. You don't get rich by hoping for the best and guessing what your return will be. You get rich by working hard.

3. Exploit benign manipulation

The definition of manipulation is "a type of social influence that aims to change the perception or behavior of others through underhanded, deceptive, or even abusive tactics."

I would call "benign manipulation"  that which does not utilize underhanded, deceptive, or abusive tactics. You can influence people and change perception or behavior without harming anyone or lying. One way to do this is to become a polymath. Learn everything you can about everything you can. This way, you can relate to just about anybody.

For example, if you work in tech and enjoy video games, you can relate to people like that. If you watch Sports Center on ESPN every night and keep up to date with major sports, teams, and athletes, you can converse with almost any guy. If you check headlines, you can be up to date with current events and always have something to talk about.

The key here is to never feel awkward in any conversation. Ever. If you can comfortably converse with anybody and relate to that person, you can manipulate him or her, that is, influence him or her. Successful people tend to be the smartest ones in the room, but no one in the room ever thinks so. It's because they ask a lot of questions. If you know someone does landscaping, ask about the plants in your yard, how to fertilize your lawn, anything about the person's expertise. He or she will like you. Now you have the opportunity to sell a website, advertising, accounting services, legal services, whatever it is you do, without actually selling yourself.

The law of reciprocity works in the human psyche. If someone asks you about you, don't you feel obligated to ask about that person? Successful people often recognize you have to give to get. They understand people, they listen in conversations, and if you converse with one, you both probably walk away feeling good about the conversation and that you got something out of it. Successful people can manipulate and influence others without their even knowing it.

4. Successful people are never bored

If you find yourself bored and looking for something to do, then you are doing something wrong. Successful people are tireless, almost never satisfied with anything, and always trying to learn more. Warren Buffett says he spends most of his time reading. What does a billionaire need to read? He can pay someone to read for him. He reads for a reason. And it's one reason he is so successful, because you know long before he was a billionaire, he was doing the same thing.

Always read. Always learn. Never let a moment go to waste. Enjoy through recreation or use it to further yourself in some way.

5. Success doesn't change successful people

Like I said about Warren Buffett, he still reads. A lot. It's part of what made him successful. But the most successful people in the world recognize that whatever it took to become successful is what it takes to remain successful. A lot of successful people have lost that success. You can find stories of former professional athletes, millionaires at one point, who go bankrupt. They worked hard to become successful, but it appears after earning their success, the hard work stopped, and with it their success.

The secret to becoming successful is the same secret to remaining successful after you achieve initial success.

6. Success means different things to different people

The last thing I want to say is that success doesn't always mean the same thing for everyone. There are literally millions of successful people around the world whose success goes unnoticed. I am not wealthy or "successful" by the standard definition. But I provide comfortable circumstances for my family, and in my mind that makes me successful. I have a baby girl who is healthy and happy and constantly learning, and to me that makes me successful. I have good friends, a close family, a loving spouse, a modest home, and a healthy lifestyle. All of these things make me a success in my mind.

And therein lies the secret to happiness and success. You have to recognize that whatever makes someone else feel happy and successful won't necessarily do the same for you. Pursue your own personal happiness and success and not someone else's.

From Inc. Magazine