Category Archives: Business Agenda Classifieds Columns
Success Wizard: Start Managing Your Money Now
(Originally published on August 7, 2011; reprints previous original material published in this section)
By Jordan Patente
I landed my first job as soon as I graduated college. That was seven years ago. Just like any other Juan, I wanted to plant as many trees that could bear fruits in the near future.
Those were the years I established my career and personal life. I now have my training business and still manage to work in a multi-million company. I live in my own house and drive my own car, all because of my relationship with money.
Growing up was a humbling experience. I only had my mother to raise me. Mom did her best to meet both ends for my two siblings and me. I know that there were times when Mom was in financial turmoil, and it was for this reason that I started managing my finances during college; and it contributed a lot to my accomplishments of seven years.
If you manage your finances early in your life, you will most likely do the same thing when you mature. You only reap what you sow. Below are some of the tips that I used to train myself in money management:
Allocate a weekly budget
If your parents can afford to give you a week’s worth of allowance, ask for it. This is an effective strategy to forecast your expense limit for the week. I still do the same thing now. Every payday, I allocate a daily and weekly allowance. Keeping your expenses within limit will develop self-discipline. Managing money is about self-control. Never let money control you.
Most of my work colleagues are in financial turmoil because they allow money to manage their life. Money is just an object, and without the spender it is nothing. Take full control of your money, and decide on when and how to use it.
Social stature
Today, high tech mobile phones are selling like hot cakes. If you don’t possess the latest popular gadget, you are out of fashion. Part of managing your finances is the people that you surround yourself with. If you choose to group yourself with “rich kids,” you might force yourself to spend like them. I have nothing against people with money, but you need to keep your finances within limits. If you can’t meet their standards, the choice is yours to either stretch it or look for a better crowd to suit your money situation.
Invest early
Your today is your tomorrow. When I was still in school, I sold all types of bags, coffee mugs and even scented candles to help me save for my thesis. Today, I have small businesses that have become earning streams. Selling would’ve been out of my comfort zone if I didn’t try it firsthand.
In my last “Magic to Success” theatrical seminar, I had a participant who was just 17 years old. It was a heartfelt experience, because having a participant his age is a testament that in the near future, another successful man will be born.
Starting early is good training for all of us. The more we expose ourselves to success, the more we become successful.
We are all after our own emotional growth and maturity. Starting young means more opportunity to learn, as well as a bigger chance of becoming the new breeds of success.
I’ll be teaching a financial management seminar dubbed “Magic to Success (Money, Love and Health)” on September 24 in Ortigas Foundation Library at 7:30 a.m. To maintain high quality of training, we will only accommodate 50 participants. This event is not your typical seminar. We will talk about success tips to fast track the accomplishment of your dreams. Participants will be asked to put their learning into action within the seminar. We also have actors to play key parts to fast track your learning. You may contact us at (915) 211- 7878, (2) 380-3180 or e-mail us at dynamicempowermentphilippines@gmail.com.
Jordan Willy Patente is the president of Dynamic Empowerment Philippines and has been a success coach for five years. He has also conducted motivational talks and directed musical and theatrical productions.
(All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)
Business Coach: Answering the Call to Transfer
(Originally published on August 7, 2011; reprints previous original material published in this section)
By Ruben Anlacan Jr.
I received an e-mail from a reader recently. She wanted to know if it was okay to look for another job while still employed. She wanted to transfer to a company in the same industry that offers a higher pay. Compounding her problem is that she is currently in a dispute with her employer.
This is a common scenario in the corporate world. Anyone in the same situation would probably feel aggrieved, but it’s best not to let your emotions rule your decision. Many people planning to look for another employer share the same problem. Many of them have done it well and are now enjoying a better job. However, there are those that made the wrong moves and are presently in a worse position than before.
The situation must be carefully studied before deciding on a course of action, since a wrong move may do enormous damage to your career.
There are many aspects to consider; among these are the legal, ethical and practical consequences.
Think first of your legal standing. The first thing that you must do is to review all the employment related papers you have signed with your company. There might be a non-compete clause in your employment contract. This forbids you from seeking employment from a company in the same type of business.
If there is a non-compete clause, you should consult a lawyer with extensive experience in labor cases if you are still determined to transfer to a company in the same industry. I suggest you try to work out something mutually acceptable.
If you want to be tough, you may be able to win your case in court but that will entail much time and money if the company decides to give you trouble. Besides, there is always the possibility that you may lose your case.
An other potential legal impediment is if it states in your contract that you are required to be employed a minimum number of years by the company; this is usually the case if you were given special training. This was an issue some time ago when several pilots resigned to work for another airline. Their previous employer sued them because they have not yet completed the required number of years as compensation for their training.
Study all the practical implications of your resignation. What are the benefits that will be foregone? There may be loans that will be immediately deducted from your separation pay. Check the terms of your Pag-ibig and SSS loans, if you have outstanding balances that may automatically be due in full. You may be counting on your separation pay to tide you over while unemployed, without knowing that it may be significantly reduced.
Take note that no matter what your personal opinion is of your present company, now is not the time to burn bridges. It is virtually certain that interviewers will check on your current employer and if you are not in good terms with them, they are unlikely to give a good recommendation. In fact just around a year ago, I was interviewing an applicant who was out of work for two years. She was highly talented, and she did not know that the probable reason why no one was hiring was because one of her references gave her a terrible feedback.
Although you are likely to be interviewed by a fellow employee, sympathetic to your cause. Never badmouth your previous employer. Since there is an abundance of applicants to choose from, it will most likely eliminate you from consideration if there is the slightest possibility that you are a troublemaker.
Regarding the ethical aspects, I do not see any problem applying before filing your resignation—unless you are using company time and resources in your job search. As long as there is no malice in any of your acts, like intentionally filing your resignation at a time when it will cause the most inconvenience, then the thirty days’ notice should be sufficient for both legal and ethical considerations.
The main problem with looking for work before filing your resignation is that prospective employers cannot call on your current employer to check on your performance.
Hopefully your credentials will outweigh this disadvantage.
Finally, be extra nice on your last days in your company. Instead of slacking off, exert more effort and try to make the transition for your successor as easy as possible. Just
as the first impression has a long impact, so are your last actions long remembered; so try to leave on a high note. A cordial exit may reap future benefits later in your career
Business and management consultant Ruben Anlacan, Jr. is the president of BusinessCoach, Inc. and a resource speaker for various business topics. He discusses overviews and tips for business from the point of view of a small- or medium-scale entrepreneur who has started several successful enterprises. Those who wish to ask questions or to make comments may visit http://entrepcoach.blogspot.com or e-mail entrepcoach@gmail.com.
(All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)
Bizmaker: Make Money Run After You
(Originally published on August 3, 2011; reprints previous original material published in this section)
By Mark So
Don’t think for one second that because the world is in financial crisis, there is no money going around. The truth is far from it. The fact is that the world is literally overflowing with money. It may not seem like this applies today, but always remember this: money is never destroyed—only transferred.
Wealth, on a daily basis, is constantly transferred from those who do not know how to manage money to those who do. Even, and most especially, during a financial crisis, this holds true.
Let me take the recent financial crisis, break it down for you, and explain how wealth was transferred. I’ll show you the steps to begin the process of “wealth flow.”
This article will be the first of a series, with each article ending with an activity or task. If you seriously want money to run after you, I strongly recommend that you follow the assignments for every article and give me feedback along the way.
In the recentU.S.financial crisis that started June of 2007 and reached its peak in October of 2008, theU.S.stock market (and consequently the Philippine stock market) lost more than 50 percent of its value. Most people panicked and took out their money, or whatever that was left of it, for fear of losing even more. When they did that, they lost half of their wealth—which took a lifetime to build—in a span of days. As of
September 29, 2008, approximately $1.2 trillion was wiped out in theU.S.alone.
Let me repeat: The money was not lost. It was merely transferred.
During the same crisis, there were a few brave souls who bought those stocks at extremely low prices. They held on to it, and became a whole lot richer overnight. Warning: Do not be overwhelmed by what I am going to share next. Even if my examples are in billions of U.S. dollars, the principles I want you to pick up will and can be applied to your situation. More importantly, do not put in everything you have in any investment vehicle because of this. This is not the point of my example.
In theU.S.the most notable figure to do this was Warren Buffet, who bought a significant chunk of shares at Goldman Sachs in September 2008.
Despite the odds and the panic, Buffet bought the shares at basement bargain prices. He invested $5 billion, held on to it during the worst of the crisis (which was October 2008), and turned it into $8.7 billion very recently. Another similar story–although he did not buy stocks but rather bet against them (a.k.a. short trading)—is John Paulson of Paulson and Co., who made a killing by betting against the U.S. subprime mortgage market. He made $4 billion after the worst of the crisis was over. Although Buffet and Paulson were the few covered by the media, there were more who made killings, as well, but the public just didn’t know about it.
Now you might be thinking that those guys are professional investors—how can you ever come close to doing that yourself? Well, first let me explain that this is just one of many examples of “wealth flow transference.” You don’t have to be in stocks or investments to apply what I will be teaching you in the next few articles. For those of you who know me and have been following my column, you know that I will teach you how to do it in a very practical and “anybody-can-do-it” approach, so read on.
While I am not saying that you cannot be a billionaire, I will leave that option wide open for anybody willing to try; but before we think about billions, or even millions, let’s first come back to earth and start with the basics.
How and where do I Begin?
I’m designing this and the succeeding articles as thoroughly as possible so that you will not only understand it, but also experience it by applying it to your life, article by article. Of course you may opt to go faster and I will inform you how to do that in the very near future.
In the meantime, this should be your first “realization” for this particular article: Running after money if you do not know how to manage it will result in you forever chasing after it. Get your house in order first, build a strong foundation for money management, and you will see that the money will start running towards you—and staying with you.
Now to learn and apply this lesson, here is your first assignment:
1. Go to my blog http://www.markso.wordpress.com and subscribe to it.
2. Search for, read and comment on the following articles in the blog’s search box:
a. “The Most Important Advice About Money I can Ever Give You”
b. “Money Management Simplified parts 1 to 3”
Good luck—until the next article!
Mark So is a businessman, investor and educator. He is the chairman and CEO of BusinessmakerAcademy—a business, finance and corporate training center. He is the founder and Chief Forex Trainer of Forex Club Asia, a trading club of Forex Traders across Asia. He is also the founder and chief trainer of the Philippine Franchise Institute, which specializes in training and growing existing Franchise businesses. A sought after speaker for business and investing, you may e-mail your comments and questions to mhso@businessmaker-academy.com or call the office at (2) 687-4445/3416/4645 for a schedule of his seminars.
(All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)
Business Coach: Insights on Retail Location Hunting
(Originally published on July 31, 2011; reprints previous original material published in this section)
By Ruben Anlacan Jr.
I recently wrote an article (archived at http://www.businesscoachphil.com/finding-the-bestlocation-for-your-retail-business) on how to look for a good retail location, but due to space constraints there were many vital considerations that were not discussed.
For the benefit of those who want to know more about choosing a retail location, we will go deeper into the other factors:
• Know what type of goods you are selling. While location is a vital element in any retail establishment, its degree of importance depends on the type of goods sold. Convenience items like groceries need to be very accessible since buyers are unlikely to travel far to buy these type of goods. On the other hand, “shopping” type of goods like clothing and furniture are usually canvassed and compared so people may spend more time and effort looking for the items.
• Pick the far corner lot. We all know that a corner lot is more desirable than an inside lot because it is more visible and has more frontage, but since there are four corners in an intersection you must know which corner is the most desirable. Generally, it is the corner to the right after crossing the intersection that is more attractive. This concept is crucial to apply if your store is relying on vehicular traffic for a significant portion of your sales.
• Know what the past tenant was paying. Even if you know the going rental rate for a location, it is a good idea to find out what the former tenant was paying. If it turns out that the last tenant was paying far below the going rate, you could use that fact in negotiating for your rental. It would not hurt your bargaining position and you may get lucky especially if the landlord is in a hurry to have the place rented.
• Know if the franchisor wants to get the site for himself/herself. If after submitting your proposed site to a franchisor you receive rejection in a couple of days, then you must worry if the franchisor is after your site. It is highly unlikely that the franchisor had already properly assessed your site in the span of two days.
• The role of frontage. All retails stores will benefit from a larger frontage, but a counter type operation will need a bigger frontage than a self-service operation. In a counter type retail store, it is more advantageous to double the frontage than to double the store area.
• Store size in itself is a traffic magnet. Consumers believe that the larger the store the better assortment it has and the more reliable it is. We learned this the hard way when we drastically reduced the floor area of a drugstore branch to save on rental. However, after one year, while we did not reduce our inventory, sales fell by almost half.
• Study census data. This information can be gathered from the National Statistics Office (NSO). Find out the population, income and other data in your location that may help you have a better idea of your market.
• Use Google Maps. This is a website by Google wherein you can get an actual satellite view of your site. Previously, only large companies could get an aerial view by hiring a helicopter or plane. Much of what they obtained at a prohibitive cost then you can now get for free. There are so many things you can learn from studying your potential location in Google maps. You can see both customer generators, obstacles and other useful data that you may miss on foot.
• Check if there are zoning problems. Do not be complacent just because the previous tenant or owner of the site was able to operate the same business, they may have clout with the local authorities or their operation was tolerated because it has been there for a long time.
• Factor in the cost of renovation. Often you will find a location that seems amazingly cheap, but it is just an unfinished shell. The cost of fixing and furnishing the place may greatly exceed the savings from the lower rent. Furthermore, there may be some specifications (like the need to use tempered glass) that you must comply with that will jack up your projected budget.
• Walk around the property in all the different locations. Allocate several days to walking around your prospective site. This will allow you to have a better feel for the place and you will learn many things that will not show up in a market research report.
• Ask people that may be in position to know about the site. Be resourceful and interview suppliers of the past tenant. Strike a conversation with people who see the place everyday, like the sales clerks in the adjoining store, and ask about the number of people patronizing the place. One very successful food entrepreneur even interviewed a garbage collector of a restaurant to gauge how strong their sales were!
• Make sure you are signing up with the owner of the site or his/her authorized representative. Ask around the neighborhood to verify ownership. You can even check with the register of deeds in city hall to confirm that you are dealing with the right party.
Do not be too shy to ask for the proper identification since you will be giving out a substantial amount of money.
Location is the most important decision in most retails stores because reversing a mistake is extremely costly or impossible. Spending more time and effort to choose the best location must not be considered an expense, but instead view it as an investment with a very high rate of return.
Business and management consultant Ruben Anlacan, Jr. is the president of BusinessCoach, Inc. and a resource speaker for various business topics. He discusses overviews and tips for business from the point of view of a small or medium-scale entrepreneur who has started several successful enterprises. Those who wish to ask questions or to make comments may visit http://entrepcoach.blogspot.com or e-mail entrepcoach@gmail.com.
(All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)
Success Wizard: Lessons in Money Management-Why Lotto Winners are Still Broke
By Jordan Patente
(Originally published on July 27, 2011; reprints previous original material published in this section)
My great grandmother passed away four years ago. She left us with her six-digit combinations of lotto numbers. I still remember stories about her leaving the house without notifying anyone that she was betting on the lotto. That’s how devoted my 96-year-old granny was on getting that jackpot. Just like every Juan, she, too, had plans on spending the millions. Whenever there was an opportunity, Lola would tell me she’d
Lessons in Money Management:
Why Lotto Winners are Still Brokedistribute half of the amount to all her grandchildren to guarantee them a better future, and the other half would go to my account (my relatives claim that I’m the favorite grandson). It sounded like a good plan, but she left us without winning the jackpot.
Once, I tried my hand at fulfilling Lola’s lotto dreams. I gambled on her numbers, hoping that she would guide me in getting the jackpot. A local network’s show about a lotto winner’s life story influenced me to do it. In the show I saw scenes of family members claiming the jackpot from their departed loved one’s lottery ticket. Unfortunately, their fortune was not mine. I never won it.
Who doesn’t want a better future for their family? But I’m sure you have heard of jackpot winners who are now broke. Before winning, they only owed a couple of thousands to their friends and relatives, and several years after winning multimillion jackpots they are indebted to major financial institutions. Just like Lola, they shared their fortune with their family, relatives and friends. Most of them invested their money in buying mansions and luxury vehicles. Some invested their money in businesses.
What Went Wrong?
Winning the lotto is parallel to winning multi-million contests and competitions. Most international boxers before Manny Pacquiao are still broke. Some of the famous celebrities had the same fortune, but are now in financial turmoil. Money is not the answer to our financial problems: it’s how we manage it.
Money Management
Money management is an organized way of protecting your money in aspects like investing, budgeting and banking. You can’t just spend that jackpot money freely without caution. Do so and you will soon end up broke.
Most of us act thirsty and want to consume money whenever we have it in our possession. I call it “payday sickness.” I know a lot of colleagues who spend the bulk of their hard earned money on payday. Payday sickness is a clear indication of not valuing money. For money to stay and be loyal to you, you have to value it. Make it feel important and respected. If this is your habit with regard to payroll money, you will most likely do the same with the Lotto jackpot.
With money management, you have to start with ways to multiply that money before you spend it. Sharing your fortune with your family, relatives and friends is not a bad thing—you just have to do it systematically. Most gratuities are temporary. They, too, will let go of that money easily. Help them invest and spend it wisely.
What I would do in that situation is to share with them a minimal amount and then buy a franchise or open up a business. Stocks will be shared with them. It will not be easy money for everyone. They have to wait for it to bear fruit, before they can enjoy it. Its long-term effect, however, will benefit all of us and teach them proper money management in the process.
Mansions and Luxury Cars
I’ve always envisioned living in a mansion. I want it modern, with glass walls, and I want a huge garage housing my top-down convertibles and high-tech RVs (recreational vehicles). Winning the jackpot can make these visions a reality. But it’s just that those are not my priorities. Instead I will settle for a humble house and a multi-purpose vehicle. The world’s third wealthiest man Warren Buffett (“Forbes” magazine, March 2011 issue) still lives in his 1957 five-bedroom stucco house inOmaha,United States. He remains humble even with his immense.
Jordan Willy Patente is the president of Dynamic Empowerment Philippines and has been a success coach for five years. He has also conducted motivational talks and directed musical and theatrical productions.
(All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)
Business Coach: What Comes After Your Retirement
(Originally published on July 24, 2011; reprints previous original material published in this section)
By Ruben Anlacan Jr.
You may be getting a big sum of money on your retirement and all of your kids would have already finished college by then. What are your plans after retiring? Do you want to travel? Do you want to buy an expensive car? Do you want to renovate your house?
You may dream of several ways to spend your retirement money, but you still want to think carefully about what’s best for your future. Perhaps you would want to keep your “nest egg” in the bank, where it would earn at best two to three percent per annum. But think again, because that percentage is nothing when compared to inflation rate.
If you are about to retire, there are many career options for you. I suggest you leave your retirement money alone for now (you may live longer than you think) as there are opportunities waiting out there. Even if you were able to prepare and have enough savings to last your lifetime, it’s not yet time to buy that rocking chair. You can find so many things to do, and some of the choices may help bring more happiness to your life.
There are people who still want to work after retirement. For reasons like money, socialization, health, or for sanity’s sake, people choose to pursue a new career after their retirement. But before you join the bandwagon, ask yourself these questions: What do I want to do? How much money do I have? How much time can I allocate for work? Do I have the strength and the will to start a new venture? Only then can you decide on your career choices.
In deciding, always think towards what would make you happy. If you prefer to stay at home and be the doting lolo or lola, then do so.
I asked around and found that most retirees prefer to look for something to do after leaving the workforce. They feel that they would just end up weak or sickly when doing nothing. In fact, this is the belief of Malcolm S. Forbes, owner and publisher of “Forbes” magazine. Forbes says, “Retirement kills more people than hard work ever did.”
Here are options you may consider:
• Be a consultant. According to a survey by Merrill Lynch, offering consultancy is the number one choice of retiring employees. You have already mastered your craft from your many years of experience that imparting your expertise can earn you big bucks. If you have just recently retired from work, you are still updated about current trends and events in your previous industry. Whether you’re from accounting, logistics, the academe, sales or marketing, consulting jobs are a good career option.
• Ask a former employer if you can work freelance. If you are a good salesperson, then ask your former boss if you can still bring clients, no longer under payroll, but with sales commissions. This may be smaller than what you were previously receiving, but it is better to be doing what you are already familiar with.
• Submit articles for publication or write a book. Put your knowledge and experiences into writing. Share your wisdom and get paid. Contact publishing houses or website owners, and give them a sample of your work. If you have sufficient capital, you may also opt to put up your own publishing company. This is a good source of money, and a legacy to your family as well.
• Turn your hobbies into a fortune. If you love photography, you can ask friends and relatives to contract you for your services. If you know how to play the guitar, you can want to give guitar lessons to your neighbors. If you love gardening, you can grow plants and sell them for profit.
• Go back to school. You might need this if you want to venture into a different field. This will not only help you gain new knowledge, but also give you opportunity to network with people who might help you land a job or project.
• Train or teach. There are institutions that would acquire your services if you have proven yourself to be an expert in your field.
• Start a business. This need not be big. You may opt to put up a small sari-sari store in your garage, or a food cart in a high-traffic area. If you have sufficient capital, you may also choose to start something bigger. Just make sure you have a business plan and conduct feasibility studies to determine the marketability of your products or services.
Don’t be afraid of retirement. Welcome the idea of finally being able to pursue your unrealized dreams. You can still be active and busy. And for the younger generation, plan your retirement. Start saving, invest wisely, and most of all, stay in the best of health. With sufficient preparation, your retirement years can be the best years of your life.
Business and management consultant Ruben Anlacan, Jr. is the president of BusinessCoach, Inc. and a resource speaker for various business topics. He discusses overviews and tips for business from the point of view of a small- or medium-scale entrepreneur who has started several successful enterprises. Those who wish to ask questions or to make comments may visit http://entrepcoach.blogspot.com or e-mail entrepcoach@gmail.com.
(All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)
Bizmaker: The Tale of the Dancing Beggar
(Originally published on July 20, 2011; reprints previous original material published in this section)
By Mark So
Have you ever encountered a beggar hounding you to no end? On the streets, they walk up to you and stretch out their hands persistently asking for spare change or something to eat. If it’s a street kid, they will look at you with sad eyes and yearning in the hopes that you give them something out of pity; or worse, because they feel that you owe them something.
And they are persistent! They won’t leave until you either give them something or you say “No”. And even after you do say no, they still linger hoping that you’d change your mind.
As Filipinos with sympathetic hearts, we’d probably give in the first time, probably even the second or third; but after one too many times, you would probably not want to be bothered with the same guilt strategies they employ.
What I just described would probably make you think that all beggars are like that. But indulge me, dear reader, as that is not entirely true. You see, there exists a different kind of beggar, a rare breed, if you will.
Have you ever encountered this scenario: You are walking on the street and this “rare” type of beggar approaches you and instead of the usual demeanor and just asking for spare change, he starts off with “Good morning sir! Gwapo natin ngayon ah (You look handsome today).” No one would readily expect that, so you reply with a smile and give him a chance to make you feel even better. The next thing he does is to break-dance in front of you and other bystanders, and suddenly, he executes a blast from the past, when strut and the moonwalk were both in fashion. And he’s quite good!
Then after the show—and without him asking for anything—you find yourself reaching not just for loose change but handing him a crisp R20 bill. And before he leaves, he executes another super dance move to show his appreciation. Money well spent on the deserving—at least that’s what I believe.
If you have experienced this type of beggar, then you have a feel of the vibe of the moment; if not, don’t fret, as this is indeed rare. Personally I’ve only encountered such a person only twice in my entire life. And I am P40 less rich because of it. But it was all worth it and it made me wish that all beggars were more like him.
The point of the story is this: does the first type of beggar remind you of that pesky telemarketing agent who wakes you up at 8 a.m. in the morning to sell you something that you do not even need? And what do you do? Do you feel yourself wanting to buy his products? Chances of doing so will be slim to none because it is downright irritating and does not really add any value to your life.
Now what about the dancing beggar? Does he give you the same harassed feeling or do you find yourself entertained and engaged?
The few times I encountered the dancing beggar, I felt less stressed; and to be honest, happy not just for me, but for the beggar breaking from the norm. More importantly, both times I voluntarily gave more than what was necessary because I felt they deserved it. For in the brief moment that they showed their moves, they relieved me of the stresses and pressures of life. And to me, this is what true salesmanship ought to be.
When it comes to sales, understand the pressure of meeting one’s quotas, as I, too, depend on the skill to put food on the table. But the manner in which you go about doing it will spell the difference between a life of begging versus a life of fulfillment.
For those in sales, especially ones tasked with the tricky role of telemarketing, it is not enough to stick with a spiel of what to say—even if this is the normal practice. It is also very important to make the customer feel good about talking to you.
Would you like to know how to do that? Stop thinking about you and your quota. All you’ll end up doing is pestering the person into a purchase. Instead, think about how to make the other person feel good about himself and whatever it is you are selling, just like the dancing beggar. If someone without a job can do it, so can you.
The lesson that I will leave you with is this: Sales is not just about being persistent and pesky, it is also about how you “package” yourself in front of the other person. Keep the customer engaged and wanting to hear more from you that by the time you move in on the pitch, they will be more open to whatever it is that you are selling.
Mark So is a businessman, investor and educator. He is the chairman and CEO of BusinessmakerAcademy—a business, finance and corporate training center. He is the founder and Chief Forex Trainer of Forex Club Asia, a trading club of Forex Traders across Asia. He is also the founder and chief trainer of the Philippine Franchise Institute, which specializes in training and growing existing Franchise businesses. A sought after speaker for business and investing, you may e-mail your comments and questions to mhso@businessmaker-academy.com or call the office at (2) 687-4445/3416/4645 for a schedule of his seminars.
(All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)
Work Life: Effective Motivation
The Nice Stuff Works Better
(Originally published on Wednesday, July 10, 2011; reprints previous original material published in this section)
By: Jhoanna O. Gan-So
Bosses have different ways of motivating employees to improve their performance.
Smart ones use several methods of reward and punishment and adjust their approach according to circumstances.
In my experience, I have found that rewards and punishments are equally effective depending on the situation and the type of people you manage. But in general, people respond more to rewards, incentives, promotions, recognition and all the nice stuff. Occasionally, however, punishments or “threats” may be warranted; but using these can become counter-productive and dangerous, too. If you threaten and put people down often enough, they might get paralyzed by fear and begin to lose focus. Instead of finding ways to improve performance, they might get caught up with just fighting the perceived threat.
Such is the case of a reader of mine:
I’ve been connected for two years to a real estate company as an AVP in Marketing. My position gives me a basic living subsidy, over-ride commissions and the use of the company vehicle. In the previous year, I used to be no. 3 among the 15 Marketing Directors. At times, I would even be no. 1 and no. 2. But two months ago, my Marketing Directors were transferred to another group. Hence, I am now in survival mode and currently at no. 3 among four AVPs. My concern is that our EVP has been threatening to dissolve our group if we don’t increase sales. As a result, we have been under tremendous pressure for the past few months. Although I am determined to fight, the threats are becoming worse. What should I do?—Threatened Abe
My response:
From a relational perspective, it would be great if you can talk to your EVP and calmly explain to him that you understand how critical sales is for the company and that you are doing many things to increase sales. However, his approach (or “threat of dissolution”) is becoming counterproductive to your sales team’s morale. Point out gently that you would appreciate it very much if he tries a different approach. You need to do this in such a way that he won’t feel offended or alienated by you.
From an emotional perspective, it would be great if you can find some sort of stress release. I know Sales is highly stressful since you have quotas to reach. Two of our own company’s top sales people actually had a very difficult time getting the numbers the beginning of this year and it almost paralyzed them. To solve the problem, one of them opened up to management and sought support. The other one took a short retreat to reenergize herself. With the help of our Mancomm and some smart changes in their sales routine, things eventually improved and they are back on track.
From an HR perspective, I think it’s wise to revisit the Employment Contract you signed with the company, as well as the company policies for Termination as it pertains to Sales People. Much of your protection will come from what type of employment you have, the provisions in your contract, the HR policies and processes in your company and the Philippine Labor Laws. Since a sales job is highly quantitative, much will be based on your sales results. Normally, verbal warnings are the first steps for disciplinary action. Written warnings carry more weight and these are actually needed for an employer to terminate employees if due process is to be followed.
Meanwhile, I think it’s not too late yet. You still have your job. The real estate industry has been booming for the past few years. You can still focus and concentrate on generating more sales, despite the threat.
Motivating Employees
I wish I could talk to Mr. Abe’s boss and point out that his “threatening” approach is de-motivating his people. But since I do not really know him, allow me to use this column to reach out to similar bosses out there.
Fear is a potent tool. Its powers can motivate people to move, but it could just as easily demoralize people. I personally would only use it as a last resort.
The job of every boss is not just about pushing people to do what they want. Great bosses take the time to understand what drives their people and figure out what buttons to push to positively impact their subordinates. They also arm their people with the means and tools to let them achieve their goals. They push, encourage, guide and support others to be great at what they do.
Jhoanna O. Gan-So is president of Businessmaker Academy, HR Club Philippines and Teach It Forward Organization. Her company holds corporate skills training programs and HR seminars for various individuals and corporations. To know more about the seminars and services that they offer, you may visit http://www.businessmaker-academy.com orwww.hrclubphilippines.com. You may also call (632)6874645. E-mail your comments and questions to: mbworklife@gmail.com.
All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)
Business Coach: Applying the Broken Windows Effect
Small Things Can Make a Big Difference
(Originally published on Wednesday, July 10, 2011; reprints previous original material published in this section)
By Ruben Anlacan Jr.
We often hear that it takes money to make money. This actually means that it takes big money to make big money! Only when we have unlimited resources do we think it possible to achieve great things; but very few companies or individuals are actually that way. Because of a lack of funds, you may feel helpless to make a significant change.
If you are a manager or an entrepreneur on a shoe string budget and want to hatch a project that would make a big difference, what should you do? Fortunately there are things that accomplish results far beyond the proportion to their cost. One such strategy is an idea I recently discovered that could be applied to this problem: the “broken windows effect.”
Essentially what the “broken windows effect” says is that tolerating minor violations set the stage for committing graver offences. The example cited the case of broken windows caused by vandalism in run-down crime-prone neighborhoods being a precedent to worse crimes. What’s interesting about this idea is that in many studies, it was shown that tamping out the minor violations (like the broken windows) also decreased the major problems.
In the business setting, there are numerous cases where the principle of the broken windows effect can be effectively applied. This positive effect does not only include disciplinary matters but other acts that affect productivity or your company’s image. The possibilities are endless; but here are a few to stimulate your thinking:
• Crack down on personal use of office supplies. This may seem petty to some but small things do add up and those who are lenient may soon find out that larger items are missing. Monitor office supplies usage diligently. This will not make you popular, but better this than creating a culture of dishonesty.
• Fix broken equipment as soon as there is a problem. Promptness in repairing faulty equipment will send a strong signal that you want everything to be in good working order. Performing maintenance on the scheduled time is also part of this task. Allowing the continued use of a machine as long as it can still operate is a dangerous practice. A machine in good condition is capable of more output and at a better quality.
• Repair broken signage, cracked counters, vandalized walls, and other items visible to the customer ASAP. These are urgent concerns because these have an immediate effect on your company’s image. Customers will automatically think that your neglect of how your business looks also applies to the quality of your operations.
• Do not tolerate disrespectfulness toward customers. While customers are not always right, there are ways of handling an unreasonable client civilly within the bounds of proper behavior, and there are actions that cannot be allowed. Consistently impressing upon your frontliners that they cannot treat customers poorly will radically improve customer service.
• Be strict with tardiness, long breaks and other time wasters. The long term effects of a lax policy on lateness are worse than most would think. If left unchecked, there will come a time when hardly anyone would bother to be on time. Long breaks and other similar misuse of working hours also have the same tendency to worsen when unchecked. However, it is sometimes not sufficient to just penalize these time wasters. There may be deeper reasons besides slack implementation since consistent tardiness or time wasting is often a sign of lack of motivation. You must also tackle other causes if this is the case.
• Recycle whenever possible. There are many things you can recycle, especially usable paper. If people see that the company is serious in fighting wastage, then you will help develop a mindset that encourages savings. Besides the profit motive, your company will also be doing its share as a socially responsible enterprise.
Lack of resources must not prevent you from maximizing the means that you already have. Small things can indeed cause large changes. Just like repairing broken windows as soon as possible, the resulting benefits of such small efforts may well exceed your wildest expectations.
Business and management consultant Ruben Anlacan, Jr. is the president of BusinessCoach, Inc. and a resource speaker for various business topics. He discusses overviews and tips for business from the point of view of a small- or medium-scale entrepreneur who has started several successful enterprises. Those who wish to ask questions or to make comments may visit http://entrepcoach.blogspot.com or e-mail entrepcoach@gmail.com.
All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)
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