Here is the transcript from Tim’s presentation.
Ryan: Now what I’d like to do is introduce our speaker today coach Tim Campsall who is with TBC Action Coach of Indiana and he is going to share a presentation with us today on how we can build a stronger and more profitable business. So Tim, you have the floor.
Tim: Thanks Ryan, so Kim, you’ve already seen parts of this presentation, so apologies for the repeat here.
Tim: But I appreciate the opportunity to share with you also.
Tim: As Ryan said, the goal here is to teach folks how we help them to build a stronger, more profitable business that can run without them.
Tim: And the way that we do that is through what we call the six steps to building.
Tim: A winning business.
Tim: Just a little bit about myself, a little bit more detail.
Tim: I was born and raised in Canada.
Tim: The reason I shared that is you’re going to hear some pronunciations of words that you don’t think sounds correct, that I assure you in my head, but it sounds the same way that you would all pronounce them.
Tim: I’ve have over 20 years. Tim: Of experience in the corporate world, running businesses for corporations, businesses that I’m sure you all know well like Raid and Off, and Zip Lock and Saran Wrap, Pledge, Fantastic, Scrubbing Bubbles.
Tim: Sargento cheese, Red Gold tomatoes – is what brought me here locally to Indiana.
Tim: And in all of those businesses, not only was I responsible for the the P&L of the business, but also the coaching, training, developing, mentoring the folks that reported into me. I started working at age of 15 running a local gas station, and on the weekends.
Tim: When the owner was sleeping in.
Tim: And then spent the, as I said, the last 28 years working in the corporate world. Those businesses that I mentioned ranged anywhere from a million and a half in revenue up to 500 million. Tim: And they’re all family owned businesses.
Tim: And so I definitely have an appreciation of what it means to work in a family company.
Tim: And to work in companies that are multiple different sizes, multiple layers, multiple generations.
Tim: So from companies have second generation run, up to
5th generation. Tim: Run and I’ve had people that I’ve coached go on to be vice president, presidents and even a CEO both in here are both here in the US as well as Canada.
Tim: Here’s my family.
Tim: That’s weird.
Tim: Here is my family, so on the left side is my eldest stepson [redacted]. He’s [redacted].
Tim: [redacted] lives here in.
Tim: And my youngest stepson [redacted] also lives here.
Tim: He’s 14 and lives with us here, so a little bit about our company.
Tim: Action Coach is a franchise.
Tim: It’s the world number one business coaching firm and the reason that I chose to go with Action Coach is because of the fact that.
Tim: We have proven processes and procedures that have shown to work with business owners over the test of time, so it is a privately owned company so that was very appealing to me as well.
Tim: Having worked with formally or privately owned companies, Brad Sugars is our founder.
Tim: He is an entrepreneur and author.
Tim: And our vision is world abundance through business re-education.
Tim: So business re-education.
Tim: And what’s important about that is the school system teaches us how to become employees.
Tim: It doesn’t teach us how to be business owners, and so the story that I hear often from business owners is, hey, I’m I’m really good at my art or my craft or my trade.
Tim: And then I decided to start my own business and became overwhelmed with.
Tim: All of the.
Tim: Business owner hats that I was responsible for that I didn’t even know that existed.
Tim: And so there is a I need to we educate ourselves on how to become a business owner as opposed to an employee.
Tim: The world abundance piece really talks.
Tim: The idea that when we learn how to run a business well, when we implement the best practices of how great companies are run and we differentiate ourselves versus our competitors, then really, the Sky’s the limit, right? That world.
Tim: Abundance is when we run well compared to our competitors.
Tim: We really have an opportunity to significantly grow versus our competitive set.
Tim: Therefore, that world abundance or Indiana abundance or wherever it is that our our geographic area is that we are.
Tim: We serve our customers or our clients.
Tim: And we coach about 18,000 businesses a week around the world and why that’s important is because if a client comes to me with a very specific problem or challenge in their industry that I don’t have expertise in, I can reach out to my. Tim: Colleagues and chances are we, somewhere in the world, we’ve worked in that industry and we have a solution or another client has come up with a solution that we’re able to share back.
Tim: I mentioned that we’re the the number one coaching firm, so this is just a number of accolades that our franchise has acquired.
Tim: Around the world and we’ve got about 1000 offices in 80 countries around the world, so again, the reason this is important is what we do has proven the test of time and it’s shown to work. Tim: In all industries and in many countries around.
Tim: The world so.
Tim: When we’re coaching, folks who potentially have different locations are in different countries or want to get into different countries.
Tim: We’ve we again have the ability to reach out to our colleagues and get some of that information to be able to apply to the clients that we’re working with.
Tim: So before I get into the coaching side or the business development side of what we do, we want to talk a little bit here about mindset.
Tim: Right? Tim: So you guys have probably all.
Tim: Heard the idea of.
Tim: If at first you don’t succeed, try, try again. So everyone heard that before.
Tim: Yeah, well, here’s the challenge with that, you can’t try, right? Tim: You either do something or you don’t do something.
Tim: You can’t try to do something, it’s actually a subconscious copout that we give ourselves up so that we can say afterwards if we didn’t.
Tim: You know, if we didn’t succeed, well, at least I tried right, or I’ll try harder next time so.
Tim: We call this.
Tim: The idea of doing or not doing the point of power and you either above the point or you’re below the point.
Tim: So folks who are below the point of power they find themselves in this proverbial bed of life, right? Tim: Blame, excuses and denial.
Tim: Well, and here’s what happens.
Tim: We are all going to have bad days.
Tim: We’re all going to have those times where we get that proverbial punch in the stomach, right? Tim: It knocks the wind out of us.
Tim: We feel deflated.
Tim: We feel discouraged but the point is that we can’t allow ourselves to stay there, right? Tim: Covid is a great example.
Tim: Right where COVID knocked the wind out of many of us, myself included, and we had we have a choice.
Tim: We could have either said, hey, I’m just going to allow this to be.
Tim: Or I’m going to pivot and figure out a way to survive during all this chaos and make sure that the business continues to grow so the opposite then is that pivoting and taking our oar of life and charting our own course.
Tim: So we take ownership.
Tim: We’re accountable and we’re responsible for our business and the
Tim: Decisions that we make in our business so that we don’t stay stuck in that proverbial bed of life.
Tim: And some of us may need people to point this out to us.
Tim: And I don’t know about you guys, but my wife is an incredible.
Tim: person to be able to say.
Tim: Hey Tim, you’re
Tim: Below the point of power, right? Tim: She doesn’t use those words, but that’s what she means, right?
Tim: Hey Tim, you’re blaming others or you’re making excuses or you’re living in denial.
Tim: So if you don’t have someone like that in your life, you want to find somebody who can do that for you.
Tim: Whether it’s in these networking groups.
Tim: Or a mentor or your significant other, because on a daily basis we’ve got the ability to choose whether we’re going to be powerless, right?
Tim: And just let the things that are happening around us take control of us.
Tim: Or if we’re going to choose to be powerful, it is a daily choice.
Tim: So let’s think about businesses and and there’s really two types of businesses out there.
Tim: The first is the one where the business is driving the business owner, right?
Tim: So these folks are working 60, 70, 80 hours a week. They’ve got their hand involved in every aspect of the business. Nobody can make a decision that doesn’t. Tim: Go through them and ultimately what happens here is that you know the the business owner.
Tim: Has to touch.
Tim: Everything in the business and they end up getting extremely overwhelmed by all that activity.
Tim: Or you can have a business where the the owner is driving the business right, and in this case business owners are able to duck out to.
Tim: Go to a.
Tim: Their kids school function or take a four day weekend or go on vacation for two weeks.
Tim: How many of you guys have heard of people who were in business for themselves and ended up the business, went out of business because the owner got burnt out?
Tim: Anyone know folks like that?
Tim: Yeah, so unfortunately, burnout is the number one reason that businesses fail.
Tim: So back to that one where the business is driving the business owner.
Tim: Ultimately right, the business owner can’t keep up to those 60, 70, 80-hour weeks. It’s possible in the beginning, right?
Tim: The first couple years as folks are are growing and developing and and figuring out their business.
Tim: But you know, five years out ten years out, it’s not a sustainable practice.
Tim: And generally what happens is a successful business will be growing like this, but then it will plateau and really it doesn’t plateau, it ends up going up and down like this.
Tim: And what’s happening is the business grows to the owners capacity, and it goes slightly above the owners capacity, and then it shrinks below the owners capacity and then above the owners.
Tim: Capacity, but then when you look at that, if you plot it out, it ends up being a a.
Tim: Flat line or
Tim: The business is plateaued and the reason for that is it can only grow to what the owner is allowing.
Tim: The owner becomes the bottleneck in the organization continuing to grow, but they’re just not.
Tim: They don’t know that that’s happening because they got it to that level by being involved in every aspect of the business, and so they assume that’s what they’ve got to continue doing and they.
Tim: And that’s what ultimately leads to.
Tim: This burnout.
Tim: So we define a successful business differently than most small business owners.
Tim: Think about a business.
Tim: So to us it’s a commercial, profitable enterprise that works without the business owner when it can work without the business owner that then overcomes that that hurdle of capacity, right?
Tim: And the business owner being the bottleneck.
Tim: The other thing that it overcomes is, you know the inevitable right?
Tim: Hey, I heard we were talking about life insurance earlier right?
Tim: So my dad was a mechanic growing up.
Tim: He got hurt and was unable to continue working.
Tim: He had surgery and the surgery didn’t fix the problem well enough for him to keep working, and unfortunately he was not unable to work.
Tim: So if we think of.
Tim: Most small business owners.
Tim: If they were not able to come to work for three or six months at a time, their livelihood would be ruined, right?
Tim: Because the business can’t run without them.
Tim: So what we want to do is make sure that that if God forbid, if something was to happen to the business owner that they’re still able to get a paycheck because the business can run without them.
Tim: So how do we get there?
Tim: We call it the six steps to a Better Business or 6 steps to massive results at the foundation level.
Tim: It’s called mastery.
Tim: So just like you know, building a high rise you’ve got to make sure that the foundation is solid.
Tim: The footings are are deep enough and secure so that when you scale the building, it doesn’t topple over.
Tim: Same idea with the business we’ve got to make sure that the the business has a solid footing and we call this mastery, and this.
Tim: This eliminates the.
Tim: Day-to-day chaos in the business.
Tim: Then niche is all about marketing and sales activities to create a predictable cash flow to be able to grow the business right?
Tim: To be able to to hire people to be able to have a great positive cash flow and be able to invest back into the business.
Tim: Step Three is leveraged.
Tim: This is all about systems.
Tim: To make the business run more efficiently and effectively so that we take them, generally speaking about 80% of what we do in our day-to-day business is routine work, and so the focus here is to systematize the routine.
Tim: So that we then free up the organization to focus on business growth as well as humanizing that 20% that’s leftover right, do a really good job of interacting with our customers and in our prospects where it most matters and systematize the other areas.
Tim: Of the business systematizing can be things as simple as how do we answer the phone right?
Tim: If there’s a best way to answer the phone and let’s write it out.
Tim: Into a script and.
Tim: Make sure that everybody who’s answering the phone uses that script or answers the phone in the same way.
Tim: It can also be electronic systems like QuickBooks or a calendar appointment booking app or even an Excel spreadsheet can be a system that helps make them, helps the business run more efficiently and effectively then Step 4 is Team.
Tim: The focus here is let’s make sure we’ve got the right people on the bus, right?
Tim: They’re sitting in the right seat on the bus and we’ve set them up for success.
Tim: So things like recruiting, you know, in our recruiting efforts.
Tim: Let’s make sure that we’re talking about the business and the goals of the business, and make sure that we’re, we’ve identified what our culture is and what it looks like to work at our company so that we’re attracting people that align with our vision and align with our culture.
Tim: Then, through the interview process.
Tim: Let’s make sure we’ve got steps in place where they’re weeding out the bad apples right and only, and making sure that the people that we’re going to offer the job to are the ones who are going to, not only fit our culture, but I’ll also have the skills and experiences that we need.
Tim: And then when we bring them on board, let’s make sure we’ve got a 90 day onboarding plan to set them up for success in terms of training them properly and giving them the tools that they need to be successful and then ongoing.
Tim: Let’s make sure that we’re meeting with our direct reports on a weekly basis to review their key performance indicators.
Tim: And hold them accountable to the things that we expect from them.
Tim: But also, you know, give them coaching and feedback to help ensure that they’re getting the support that they need from us so that they can be successful.
Tim: Well, when we have those first four steps in place, we then get to the point where we’ve got synergy within our business, right?
Tim: The whole idea of 1 + 1 equals more than two.
Tim: We’ve got a-
Tim: We’ve built a well oiled machine that can run without us.
Tim: The business owner, which now frees us up to be able to focus.
Tim: On other things.
Tim: That there’s 2 main things that as business owners, we should be focusing on. 1st is the strategic direction of the organization and taking care of the team.
Tim: When we take care of the team, the team will then take care of the rest of the business.
Tim: So now we’ve achieved what, generally speaking I hear people go into business for themselves.
Tim: Say they really do so for three things.
Tim: They want freedom.
Tim: They want flexibility, and they want to acquire wealth.
Tim: So when we have a business that can run without us, we achieve that freedom and flexibility.
Tim: And now we can take the passive income of this business and use it to invest in other wealth creation.
Tim: So whether that’s the stock market or real estate or starting another business or selling or sorry or buying a business.
Tim: Or maybe it’s even selling this business.
Tim: So when we have a business that can run without us.
Tim: The sales price of that business is significantly higher than if the only reason the business works is because we show up every day and do the do.
Tim: So generally speaking, if you’re the only reason the business works, you’re going to get a less than one multiplier when you go to sell the business.
Tim: If you have a business that runs without you, you’re going to have 5 to 12 times multiplier when you go to sell the business.
Tim: So at this stage then you’re moving into.
Tim: Step 6, which is Results which is that’s where you’re investing that money into those other areas that I talked about, you’re reaping the benefits of those investments. Tim: And maybe even people are starting to invest in your business.
Tim: So you’re you’re now at that wealth creation stage where you’ve got multiple streams of passive income.
Tim: And now you can use that passive income to invest in yourself right to grow and develop yourself or go on vacations.
Tim: Or whatever it is that you want out of life.
Tim: You’re now at the ability to do that.
Tim: This is simple, meaning they’re all best practices that have been shown to work over the past 29 years within our franchise. Tim: But also it’s all the best practices of how great companies are run, so it’s simple.
Tim: But then it’s also hard from the standpoint of you know most business owners.
Tim: Don’t have time right to invest in building this type of business and so we become their strategic partner, right?
Tim: Their Business
Tim: Coach in helping them identify of all these areas, which ones are they doing well in versus which ones are huge opportunity areas for them and then we break that down into a 30, 60, 90-day plan of let’s focus on two or three areas per quarter and get those
Tim: Implemented into the business and then each quarter we review that and determine together, right where is the, is the business and where should we be focusing as a business within each of these areas.
Tim: These 6 steps.
Tim: There are multiple subset areas that, that the business will rate themselves on and determine where they’re gonna get the biggest bang for the buck this quarter, and so the whole idea of coaching is build the plan, work the plan, get coaching and training and advice and help along the way and so.
Tim: Back to something we were talking about earlier.
Tim: Is you know, really each business owner,
Tim: Once they’ve determined that coaching is right for them, they’re going to want to make sure that they evaluate the methodology that the coach is using.
Tim: They want to.
Tim: See that there’s a proven track record of getting results, and then they also want to make sure that there’s a personality fit.
Tim: That they can envision themselves working well with their coach.
Tim: ’cause there’s going to be times where their coach has to give him that proverbial kick in the butt right?
Tim: And hold them accountable and so they need to feel comfortable that yes, this, this relationship is going to work for them and that they’re going to feel motivated and encouraged.
Tim: So the other area that we focus on is the business growth side.
Tim: So back to the,
Tim: So back to the niche area of our business, the marketing and sales we have a formula here that we use to help businesses breakdown their business growth objectives and.
Tim: So here’s the formula.
Tim: It’s leads times conversion rate equals number of customers or clients times, number of transactions.
Tim: Times average dollar sale equals revenue.
Tim: Times profit margin equals profit, so I’m just going.
Tim: To quickly walk.
Tim: Through this and show an example.
Tim: So number of leads.
Tim: That is, how many people come through your marketing activities and they’ve, they’re far enough along that they’ve said, hey, I’m ready to have a serious conversation about your services to determine if.
Tim: This is right for me, right?
Tim: So in some businesses that is an estimate stage, some businesses, that’s a discovery.
Tim: Stage for brick and mortar’s that might be when the customer actually comes into the the location and so we would define we would work together to define you know how.
Tim: How is that business going to attract their leads? So in this example, let’s say the the numbers 4000 conversion rate is how many those leads end up becoming customers.
Tim: So let’s say it’s 25%.
Tim: So 4000 * 25 is 1000 customers. 00:21:31 Right?
Tim: Number of transactions is how many times on average those thousand customers buy from you.
Tim: So some customers may only buy once a year. Some customers may buy 6, 7, 8, 9 times a year, but on average, how many do they? How often do they buy so?
Tim: In this example, let’s say it’s.
Tim: Two. Average dollar sale is how much they spend each time they buy. So again some customers might spend $10.
Tim: Some customers might spend $1000, but on average, how much do they spend? So in this example, let’s say it’s 100, so 1000 * 2 * 100 gets us to 200,000 in revenue and then profit margin.
Tim: This is net profit, so how much is what percentage of that 200,000 is left over at the end of the day, so 200,000 times.
Tim: And let’s say that example is 25%, so 200,000 * 25% = 50,000, so.
Tim: Marcus from the show.
Tim: The Profit said if you don’t know your numbers, you don’t know your business.
Tim: So this is a great formula to use to understand the the numbers of your business and therefore the health of your business and to set objectives for your growth for next year so.
Tim: You’re going to determine where you are today and then in each of those five areas, the areas in blue that I just talked through set yourself objectives for each of those in terms of how do you want to grow your business over the next 12 months?
Tim: So our clients on average just by tracking their business this way, see an average increase of 10%. On top of that, we’ve got, you know, 350 strategies in each of these areas to help them to to grow each of those five areas. So I’m just going to show an example here of what a 10% pricing.
Tim: Or a 10% increase in each of those five areas would look like and I’ll give you an example of each of these as an illustration of what you could be doing to improve their so number of leads.
Tim: That one of the easiest ways to increase your leads is to reach out to your existing customers or your existing clients and ask them to introduce you to somebody like them.
Tim: You know somebody who would also benefit from your services.
Tim: They’re already happy with your services, so they’re going to be more than happy to refer you.
Tim: But generally speaking, they’re not going to think to refer you on their own, so they’re going to need that very specific prod from you to request that.
Tim: So let’s say, uh, you know, we get that 10% increase in leads, so we go from 4000 to 4400.
Tim: Conversion rate 25% is our current. So to improve that by 10% similarly we’re going to reach out to our happy customers or our happy clients and ask them for testimonials.
Tim: And then during the selling process, we’re going to share those testimonials with our prospects.
Tim: And now we’ve got that.
Tim: That proof, right? The proof of all that there’s other people like me who have seen the results that I want by working with, with you, and therefore they’re more likely to say yes during that sales process. So a 10% increase here will go from 25% to 27.5%.
Tim: So notice it’s a. It’s a 10% increase, not a 10 point increase. So 4400 * 27 Five gets us to our new customer count of 1210.
Tim: Number of transactions.
Tim: So that’s how many times do these people buy from us in a given year.
Tim: So one of the easiest ways to improve this is to simply, you know, ask them to come back for another purchase occasion, so that could be through a special promotion that only existing customers.
Tim: Are able to pick up on.
Tim: Hair Salon business is a great example here where you know if most people are like me where they don’t, they don’t necessarily go back and get their hair cut exactly when they’re supposed to.
Tim: So I know I’m supposed to do it every four weeks.
Tim: Sometimes it’s five weeks.
Tim: Right now it’s actually 6 and so I’ve got to get my, so that.
Tim: That salon is missing out on my transactions because I am not, you know, remembering to go back as often as I should.
Tim: So a great thing that they could do is actually book my next appointment before I leave my last appointment, and that’s going to improve the number of transactions.
Tim: So a 10% increase here goes from 2 to 2.2. Average dollar sale. The easiest way to increase average dollar sale is what McDonald’s does, right?
Tim: So you place your order at McDonald’s and the thing that they ask everybody who places an order is what?
Tim: Would you like fries with that or would you like a drink with that, right?
Tim: So think about it in your business.
Tim: What’s your upside, right?
Tim: What’s your?
Tim: Would you like fries with that?
Tim: And make sure to offer that that upsell or cross sell to every single one of your customers, because some percentage of them are going to say yes.
Tim: Right?
Tim: So 10% increase here would take it from 100 to 110, and that 12110 * 2.2 * 110 is 292,820 profit margin, 25% increase in profit margin. The best way to improve that is with a price increase.
Tim: So our costs go up every year.
Tim: Most businesses I talked to don’t want to take price increase, so we’re just leaving money on the table.
Tim: So if you haven’t got a price increase in the last year, issue that out as soon as possible and a 10% increase here would take it to 20.75 so.
Tim: Revenue times of 292,820 * 20.75 gets us to a profit of 80,525.
Tim: So here’s the magic. With this formula, they’re all multiplication, right? So there’s a multiplier effect, so you can see that customers went up 21%, revenue went up 46%.
Tim: And profit went out 61%.
Tim: So you can see by just making small 10% changes in each of those five areas, you can have a significant impact on the business and what you want to do is track these on a monthly basis to see if you’re actually delivering against those 10% increases, and if not, then want to put some course corrections.
Tim: In place month to month so that by the end of the year you achieve your annual growth assumptions.
Tim: So just ending up here, I’m going to share a couple quotes.
Tim: Jim Rohn says never wish your life were easier.
Tim: Wish that you were better, he says always work harder on yourself than you do on your.
Tim: Job. So the things that I just talked through might mean that you need some training or some education, right?
Tim: You may have some self.
Tim: Limiting beliefs that say, well, you know that’s great.
Tim: That sounds awesome, but I can’t do that or I don’t have the time.
Tim: To do that, and So what Jim saying here is find the time right to figure out how to do those things right.
Tim: Take the time to implement those that five ways tracker in your business and focus on becoming a better version of yourself so that you can do the things that are required.
Tim: To build a Better Business, to build that business that can run without you.
Tim: And then Tiger Woods says that no matter how tough you think you are, you can’t do this on your own.
Tim: And he’s referring to the value of his coach and his support team.
Tim: And so if you think about sports in general, all exceptional athletes have at least one and almost always multiple coaches.
Tim: That they use to.
Tim: Help ensure that they’re at the top of their game.
Tim: And so that’s similar aspect here is you know most business owners have a CPA, or at least they know they should have a CPA, right?
Tim: Most successful people have financial planners or know that they should have financial planners.
Tim: Not many businesses, small businesses.
Tim: Know that coaching even exist.
Tim: And so the the benefit to that business owner of having you know the those three.
Tim: You know folks in their corner helping them to grow and develop their business and their wealth will pay significant dividends to them in the end.
Tim: So coaching is generally something that.
Tim: Folks don’t really understand and don’t necessarily know how is that going to help me, or they may have had a bad experience with a coach in the past, so to help overcome that I offer complimentary coaching sessions. And this is a 2-hour deep dive.
Tim: Into the business to show how what I just talked you through applies specifically to your business, and in that we’ll do a uh, a deep dive.
Tim: We will do those that 6 steps and evaluate where are you in each of those six steps.
Tim: We’ll also build a five ways of where your business is today, and if we were to.
Tim: Implement those strategies over the next 12 months.
Tim: What would be the impact of the business in 12
Tim: Months? so if anyone is interested in taking advantage of that complementary coaching session, reach out to me and be happy to to set that up.
Tim: We also do monthly seminars which I don’t have a slide on here, but there are educational seminars.
Tim: It gives a lot more detail of what I went through today.
Tim: It’s also a great opportunity to network.
Tim: With other business owners, so I’ve actually have 22 people registered for tomorrow evening.
Tim: And so if business owners are your target audience, it’s a great way to come and meet folks who have said, hey, I want to take my business to the next level.
Tim: I want to to grow my business and so folks who want those types of people as your clients.
Tim: You are welcome to attend and and check out that seminar.
Tim: Any questions?
Tim: Alright fantastic well.
Tim: I appreciate the opportunity to share, Ryan.
Tim: Thank you so much for having me on.
Ryan: Hey Tim, thank you everyone.
Ryan: Let’s give Tim a hand for his presentation today.
