In the last month, I received a number of questions and comments at thomas.tpaul@gmail.com. Several of the questions were very specific to the business owner. I share this only to say that if you have a question that is specific and you don’t want it shared, I will still try to help.
This month, I will touch on the importance of asking for advice. Several emails have asked questions around employee retention, increasing revenue and getting feedback from clients. A discussion at a recent board of directors meeting sparked a response.
At a board meeting several weeks ago, we had a consultant talk to us. We are considering a fundraising or capital campaign on a non-profit board on which I sit. The consultant told us, “If you ask someone for money, they will give you advice. If you ask them for advice, they will give you money.”
As I thought about that, I started to realize that it is not only true but it also applies to a for-profit business. It works the same with our employees and with our customers.
Employees
No, I’m not saying that you should ask your employees for money or to ask them for advice so that they contribute to my board’s capital campaign. But consider the scenario we have all gone through since the great recession (and we are currently going through at Northern Arizona University, with the state cutting $17M in support).
We are required to find a way to get by on less while still doing more. Business 101 tells us that we can impact profitability in one of two ways: increasing revenue or decreasing expenses. For most of us, employees account for 80 percent of our expenses. So, how should we solve the problem?
In the same way that a fund raiser gets advice if they ask for money, employers will fight you every step of the way if you simply proclaim you need to cut expenses or, worse, people. Instead, you should meet with your employees to explain the situation and ask for advice, ideas and suggestions.
Why does this work? Simply because we all want to be part of the solution. We want to have a say in what happens in our lives and we want our opinions heard and listened to. I’ve always made it a habit to have regular one-on-one meetings with my employees. Not just my direct reports, but every single employee. During those one-on-one meetings, I ask three simple questions:
- If you were me, what three things would you do, change or address?
- How many times have you considered leaving the company and why?
- If your best friend saw we had a job opening that was a perfect fit, would you encourage that person to apply? (Why or why not?)
You will learn everything you need to know about morale, job satisfaction and what needs to change in the company. Remember, you will never have happy clients if your employees aren’t happy. Ask for advice.
Customers
When you think about it, running a business is a lot like a fundraising campaign. You are asking someone to give you money. But, instead of supporting a cause, you are trying to show that you are providing value or meeting a need or wanting an exchange for their hard-earned dollar. Shouldn’t you ask them for advice?
I once owned a Cessna airplane dealership where we sold and serviced private airplanes. It isn’t uncommon to have annual service bills on an airplane that total $5,000 or $10,000. Every customer received a personal thank you letter from me along with a short questionnaire (and a self-addressed stamped envelope to return it). I asked them to rate our service and to give me advice on improving. It proved to be a wonderful tool for creating loyalty, and I received great ideas and feedback.
Finally, just a word of warning. Don’t ask for advice if you aren’t willing to listen to it and take action. Failing to respond and take real action is a bigger mistake than never asking for the advice. FBN
By T Paul Thomas
T Paul Thomas teaches business and entrepreneurship at Northern Arizona University and serves as Chief Entrepreneur at the NACET Accelerator. Prior to joining NAU and NACET in 2013, Paul spent 25 years as a serial CEO and president. He can be reached at thomas.tpaul@gmail.com.
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