Leadership skills are going to be essential, no matter what you’re attempting as an entrepreneur.

It’s an obvious and necessary skill for entrepreneurs hoping to grow business empires. Whenever staff enter the equation, the entrepreneur with qualities of a true leader is the winner.

Don’t be fooled into thinking that your solopreneur-style internet business is immune either. When you’re building a following of devoted fans (and customers) you become their leader!

So what is leadership and is it possible to learn? Let’s break it down…

What is leadership?

All good leaders must have competency in their field – the knowledge to get the job done and, typically, the experience to say “been there, done that” with integrity.

However, these are not the defining criteria of leadership. What separates a leader (from say, a manager) are the following traits:

1. The ability to create and maintain a cohesive team (or tribe)

This means knowing how to get talented people to work together (harder than it looks).

2. Drive the team to output more than their individual capabilities combined

Teamwork is only worthwhile when the collaborative total output exceeds the results the individuals might produce on their own time. Otherwise, why bother? Leaders know how to make 4+4 equal 9.

Do you have the right genes?

The “nature”, geneticist argument says our potential to be great lies in our genetic make-up.

Cognitive psychology, on the other hand, suggests it is the “imprinting” and “modelling” periods of our early youth that determine our innate leadership skills (or lack of them).

Either way, we don’t have control over our genes OR the environment we’re born into (and subsequently learn from)…. so we’re screwed right?

NOPE!

I believe that leadership, like every other skill, can be deliberately and consciously mastered… if we approach our education in the right way.

Leadership is not something that can be taught at a university, sitting in a classroom. I don’t even believe books have that much to offer… (I’m aware of the irony as I write this article)

The best leadership books are those that encourage the reader to go out and do. It’s real-world activity (not pointless over thinking) that creates leaders.

Nevertheless, we’ve got to get educated somehow. We need a way to learn the specific strategies and techniques great leaders use!

For me, this has to be modeling. The process? It’s simple: Acute observation of specifically selected role models.

What better way to learn than by studying those who are great?

The problem is, these folks are generally too busy leading their people to sit down and write a book – much less teach a MBA class!

Learning from real-world examples is the only secret sauce here. I believe there are a handful of great leadership books – my favorites are Business Stripped Bare by Richard Branson and Tribes (because it’s a call to action) by Seth Godin.

Things I’d like to know from you:

1. Who are the leaders in your life whom you could model?
2. How could you approach them?
3. What great leadership books can you recommend me?

I appreciate your help on one (or all) of these!

If you’ve received this update by email, click the title of the post to visit my site and leave a comment. Everyone else, just scroll down.

I recently stumbled across a rare (and incredible) video interview (watch it below) of two of the most revolutionary, technological magicians of this age: Microsoft’s Bill Gates and Apple’s Steve Jobs.

Right at the end of the interview, an audience member asks for advice and both Gates and Jobs touch on an issue that is central, critical and revolutionary to every one of my clients, blog subscribers and friends.

If you’re going to go into business, you damn well better be passionate about it… because it’s going to be so tough to win big, that you’ll burn out and give up if you’re not in love with what you do.

In fact, without passion, you’d be crazy to even try.

Hear it from the world’s most successful, game-changing entrepreneurs (around 1min 50 seconds in) right here:

What do you think? How are you passionate about what you do?

It doesn’t matter if you’re running a mum & dad startup, an enormous sales team or working for yourself as a basement internet marketer…

Sales Management is critical to your business success.

If you’re one of those people who is passionate about an idea but feeling icky about selling it, then your personal, inner sales management is even more critical.

This article is the 2nd part of a series where I break down a simple psychological formula.

The formula is used by sales and management wizards to lead their teams (and themselves) towards blisteringly hot sales performance… and everything (the reward and impact) that comes with that.

Last time we covered off the 1st step of the formula: “G” (standing for “Great beliefs”)

These were the beliefs that are mandatory for any salesperson dreaming of A-league results.

Today we’re going to look at the second step in the formula:

Reasons to act

It’s 9am, you’ve just arrived at work or your home office. You know, deep in the back of your unconscious, that selling needs to happen today.

We all know that without sales, there is no business.

Nevertheless, you open emails, reorganise your filing system, clean your desk and make a few comfortable calls to friends or suppliers.

You procrastinate.

Why?

Behind every great salesperson is a reason- or five.

These reasons drive the salesperson to get up in the morning early, to make those critical cold calls.

They inspire the salesperson to score another appointment instead of surfing the couch.

Here’s what you need to know:

Every single action we take in our lives is driven by reason.

It’s a simple carrot and stick situation. If we’re contemplating doing something (skydiving, cold calling or asking that pretty girl on a date), we first have to acquire significant reasons why we must do it.

We CAN do a lot of things. We SHOULD do even more things.

How big is your list of things you SHOULD do?

Action only happens when we convince ourselves (via that little voice in our mind) that we MUST do something.

We do this through reasoning… by thinking through all the different carrots and sticks that might motivate us.

Quick tip: It usually takes a bit of stick to get us off the couch and a glimpse of the carrot to keep us going once we’ve started.

But wait, you’ve already got reasons

If you’ve got reasons for making sales but you’re not actually doing it, then you need more reasons. Perhaps you just need reasons that make you feel something.

If you’re in business, you’ve probably got reasons for being there. These are the same reasons for making sales… but if you’ve got a bit of the ol’ cold call reluctance, then you probably need to brainstorm a bunch more.

Here’s what to do:

Ask yourself (or your sales team) the following four questions.

What pain prevents you making sales?

We’re talking emotional or physical pain (or suffering) of any kind. These are the sticks that get in the way of sales… and make the couch look that much more tempting.

Answers would typically include: “Cold calling is scary” and statements like “It’s uncomfortable to ask for an order.”

These are all lame excuses but they’re worth acknowledging all the same.

They are the minor reasons you’re up against as a sales manager – the mental obstacles you must help yourself and others overcome.

The truth is, the discomfort of making a call is enough to stop most people doing it… or at least cause chronic procrastination.

Identify the reasons (the pain) you’re up against and quickly move on to…

What can be gained by making sales?

We’re focusing on the positive stuff with this question. This is the typically easy one that all average sales managers ask… but only the great managers extract super compelling answers.

Have the salesperson focus on their ultimate carrots like financial freedom, tropical holidays, fast cars and rolex watches.

Then, be sure that they have some short term, achievable carrots dangling right in front too.

These could be as simple as a sunday golf game for hitting the week’s target or a five star dinner for winning that big account.

As an entrepreneur, it’s up to you to create your own short and long term carrots.

Many self employed folks make the mistake of skipping short term carrots by waiting for some big payoff in the distant future. While this is exciting, it’s often difficult to maintain consistent motivation and sales activity.

Likewise, most employees require a combination of both carrots – it’s rare to find a sales rep willing to work super hard for a “maybe one-day IPO”.

Vision boards, goal setting and The Secret are all about finding positive reasons (carrots) to take action.

Positivity is seldom all it takes, so move on to the next question…

What will it cost you not to take action?

This is the ultimate stick. This question forces you and your team to look closely at your procrastination habits and think about where they are taking you.

What will procrastination, continued over 5 years, ultimately cost you? Could it cost you your business, your dreams or your self respect?

It’s okay to be negative sometimes (I call it “strategic negativity”) since negative thinking will give you some reasons to get off that couch.

Very often positivity fails… and it’s the fear of failure (or worse; of mediocrity) that causes us to switch from procrastination to action.

So figure it out and make sure all your team know the ultimate mental, physical and financial cost of not taking action.

Go light a fire and then answer question 4…

4. What is to be gained by taking action TODAY?

This final question is very similar to the 2nd one… but with one enormous difference:

It forces you to make today important.

The number one reason behind all sales procrastination is faith in tomorrow. Faith that slacking off today is okay because there is always the day after today.

Sorting out this problem, for you or your team, is as simple as finding a reason why today is more important than tomorrow.

Successful entrepreneurs know that the answer is all about exponential growth. They know that action today creates fantastic results in six months times.

No action for six months creates nothing in six months time – except frustration and regret.

Can you wrap this up?

The four questions you’ve just read provide the starting point for finding all your own reasons. If you want to perform as a sales person, you need reasons why they must.

The second letter in our five step acronym is “R” for “Reasons to Act”

The final question is the most important because all sales happen today (never tomorrow).

Everyone’s reasons are different – since they must be reasons that you personally feel the significance of.

What is your leverage? What can be gained by you taking action today?

As always, your answers are more important than my questions. Let me know what you think in the comment section below.

Selling is a critical, make-or-break skill for every entrepreneur

If you’re serious about growing your business, hopefully you’ve already got some sales stars helping you achieve the dream.

As a leader, your top objective is to keep those sales people (or yourself) operating at the peak of performance (and profit) with one simple caveat: Never let them burn out.

Many business owners make the mistake of assuming sales management is easy, but without the right skill toolbox, it will always be an uphill struggle.

This article (1st of a series) breaks down a simple psychological formula which you can use to inspire top performance from your sales people and yourself.

In my recent “Leadership Cheat Sheet” post, I revealed the precise (psychological) formula that top leaders use to inspire their teams to the lofty heights of mega-performance.

This article fills in the blanks by breaking down the specifics of that formula when applied to sales.

We’re going to start off with Step 1 of the formula and go through the other steps in the four subsequent posts in this series.

The formula is going to be especially useful for super small businesses – simply because those entrepreneurs have to become their own sales managers. It’s a whole lot more difficult to manage yourself (and kick your own ass from time to time).

For simplicity’s sake, I’ve written this article referring mainly to “the sales rep”… so I may be talking about YOU, or your team, depending on your situation.

Whether you’re a leader of others or still just planning to be one someday, this formula is one you can use right away for an immediate sales boost.

The pre-plan (what we’re after)

We first have to define our reason for using this formula. The goal, in other words.

In this case, we’re really shooting for the basics: High performance and consistency.

The later is the most important. We’ll flesh this out more in part three.

Great beliefs (that are required for effective sales)

There are five basic beliefs that are superbly useful for sales reps to possess, ticking away at the back of the unconscious mind, paving the way for the enormous action and energy that puts dollars in the bank.

It’s worth mentioning that I’m not too concerned with the inherent “truth” of these beliefs… rather, I only care what kind of results we get if we presuppose certain beliefs to be true. (Sort of deep and philosophical for those who care to ponder what this means)

The five beliefs:

The Industry

The sales rep must believe in the industry, what it’s all about and why. Ethical considerations (if any) must be cleared up.

Example:

Most sales reps in Life Insurance struggle with “believing in the industry” – except the ones with a historic family tragedy where cover was much needed, but missing. These folks tend to be big believers and top performers. It’s no coincidence.

 

The Company

It follows naturally that a strong belief in the company is required. The “what it’s all about and why” factor is important. This question is what most lame “corporate values” statements are trying to answer.

Answering the question right simply means having a worthwhile reason and purpose for being in business. Being cheaper isn’t one. Being better is.

Additionally, your sales rep must have a strong belief in your company’s ability to deliver on promises. The bad news (for some) is that this means having an established track record of delivering quality work or product, on time.

The Product

The third belief has to be a faith in the product itself. Many executives tend to (falsely) assume that belief in the company means belief in the product.

Many businesses start out with a product worth believing in.

However, as companies grow and products are revised, phenomena like Feature Creep and changes in competitors products can compromise the integrity of your product.

Many organisations (examples include the big photocopy firms) make another mistake: Using a super-duper, ultimate up-sell.

This is when the sales guys are encouraged to up-sell as many half-useless, secondary products/services as possible.

Typically, sales metrics will reveal very few of these deals get closed (the client picks the cheaper, just-what-is-necessary option) mainly because the reps are never really pushing them very hard.

The sales rep knows the deal is a con and deep down, no sales rep worth her salt wants to turn valued customers (who trust her) into suckers.

The Market

The number one reason (or excuse) for poor performance, which every sales manager hears, is all about the market “being down” or not cooperating in some way.

For a sales rep to really get out there and kick arse, they’ve got to trust (again, at the back of the brain) that the market will afford them the opportunity to hit target and win the vacation.

Good sales people believe “the market” should be ignored (when it’s bad) and that positive thinking and action will win the race.

They’re right, and the best way to convince not-so-good (or inexperienced) sales reps is to put them in the same office as the successful old hands. Incentivising the mentor relationship often helps.

The smartest organisations ensure that there is always someone to go first.

The Self

Finally, predictably, but most importantly: A sales person must believe in themselves and their own abilities.

We all know this.

However, there are a couple of psychological principals here that make all the difference:

Never tear a sales rep’s strategy down to the ground

Even though it’s tempting to “start from scratch” with a new guy, always give them a chance to be themselves and use skills from their previous job.

If the results are less than satisfactory, make sure that you develop a positive coaching relationship from the moment they come to you with questions.

Short term, tangible targets build self belief

Confidence comes from nailing short term milestones and enjoying the success. Twelve month targets are intimidating.

Offer a bonus for a 1 month KPI. Even better, work out a weekly target. Occasionally throw down a crazy challenge to focus on one major sales strategy (“Telesales week” etc). Offer prizes.

I recently offered a sales rep a weekend with a Porsche Boxster – if they successfully booked twenty appointments for the following month. Not only did this tangible, exciting goal tickle their fancy… it also ironed out an annoying too-busy then not-busy-enough cycle from their calendar.

Pay attention to feedback preferences

Humans are conditioned to accept and utilise some feedback formats better than others. It’s strange, but true and everyone is different.

As an effective leader and manager, it’s up to you to spot the preference and utilise it to keep individuals happy, driven and aware of areas for improvement.

These are the two polar opposites to watch out for, but most people sit somewhere in between:

Criticism lover

This guy needs you to tell the bad stuff like it is, but will never need reassurance that they’re doing it right (they’ll figure this out on their own, internally). Will seldom get offended by even the most upfront approach.

Validation seeker

This is someone who needs constant positive recognition of all their wins (even the little ones). They won’t believe they’re doing “good enough” until they get it. If you need them to step up the game, say nothing and watch the flurry of activity unfold.

Mastering the giving of feedback will make your life as a manager enormously easier.

Flexibility is required because even a small team will include folks from both ends of the scale.

Quick conclusion: Integrity and confidence

The two words above are the required abstract ingredients behind any consistently successful sales rep, team or entrepreneur.

The first step is to cultivate these two ideas into your business (if you haven’t already). Then put this formula into action with your sales people.

The following articles in this series will show you how. They’ll be published over the holiday period.

There is a reason for the timing: Sales leaders who want the tools to fast-track their success can digest these lessons over their vacation.

I’ll be wrapping up the series with a quick, step-by-step (free) guide to launching a sales “kick start” workshop for January. You’ll get everything you need to start the new year with some fantastic tools and psycho-savvy tricks… ensuring a record sales year from the get-go.

I’ll also be conducting the workshop in the real world (and commenting on it here) – in a closed door session with two sets of my clients’ staff.

If you’re interested, the best thing to do is to subscribe to my email list by clicking here.

That way, you’ll receive all the rest of the series straight to your inbox – allowing you to happily procrastinate reading them ‘til you’re ready.

Plus, there will be a (yet to be revealed) subscriber-only bonus. Totally free and guaranteed awesomely useful.

It’s super easy to subscribe (and unsubscribe if you want to later on). Just click here. I hate spam and will never sell, rent or share your details.

If you’ve got a question about the series or this article, drop me an email or leave a comment below.

(Click here to read Part 2 of this series)

Things going pear-shaped or “the $#*% hitting the fan” are a reality of being in business.

The way we deal with those crisis situations speaks volumes on our character. It is one of the big psychological differences that widens the gulf between successful and struggling entrepreneurs.

This super short article is guaranteed to give you a powerful,”take away” tool for transforming disaster scenarios.

In a crisis situation, from flooded offices to losing that crucial contract, the business owner and entrepreneur relies on their psychological conditioning (whether they like it or not).

When confronted with an escalating, sticky situation our mind tends to naturally start grinding it’s gears. The direction that our “crisis thinking” takes us is what will ultimately determine our results.

For the entrepreneur, it is thinking alone that dictates if she comes out on top… or fails miserably.

That thinking begins with the questions we ask ourselves.

Ineffective Questions to ask during a crisis

• What has gone wrong?
• Why is it important?
• Whose fault is it?
• Why does this happen to me?

These are ineffective questions simply because of the kind of answers they produce.

Mentally answering the first two questions, for example, is only going to create a greater sense of loss and dread… as you contemplate the magnitude of the screw-up or disaster you’re facing.

The 2nd two questions are used by people trying to come to terms with the loss by pushing the cause of it outside of themselves. This kind of thinking robs you of the power to change your situation – focusing instead on blaming others for your plight.

Useful questions to resolve problems

• What (emotional) state would be most useful right now?
• How do I want to remember this in 6 months?
• What can I learn from this?
• What do I have the power to change?
• What resources do I have available?
• What have I got to be grateful for?

These questions demand that you focus on the most destructive part of any crisis: Your personal emotional state.

Secondly, you force yourself to frame the circumstances from a far more useful perspective… Very few disasters have ramifications beyond 6 -12 months.

By focusing on the personal learnings you can make, you reframe any negative situation as a powerful turning point in your entrepreneurial education.

Shouldering the responsibility to make changes forces us to realise the resources that we have – external and financial… or internal and mental.

Use these six questions to avert disaster and transform crisis into something useful.

… mastering this one skill will put you in the same league as the world’s top business leaders.

You can be sure that your business hero didn’t get there by asking “Whose fault is this?” … so neither should you!

My crisis…

Many years ago I lost an enormous corporate consulting contract… at the last minute. Having signed off the deal, I was literally waiting for the first advance payment to appear in the bank.

Like all inexperience entrepreneurs, since I was positive I would get this deal… I had “banked” on it and was relying on the payment to balance my budget.

When a natural disaster (seriously) forced my client to cancel the contract, I experienced a personal crisis of some magnitude. Awake til 4am, I wondered what I would do and where I would find the kind of cash I was relying on.

I personally spent days meditating on the first list of crappy questions. It was an extraordinarily dark time. When a friend (and fellow NLP person) emailed me the list of 6 “useful” questions, it turned things around for me.

The questions gave me the perspective (and necessary change of state) to dig my way out of potential ruin. I lost that particular client, but moved on to others.

In particular, I learnt an enormous lesson about budgeting on dollars that are not in the bank (don’t do it!).

For me, realising that I had so much to be grateful (despite my natural inclination to forget everything good in the world) was the most significant turning point.

Let me know (via the comment section below) when, in your life or business, these questions could have useful for you…

Regular readers of my blog will be familiar with my habit of over-the-top headlines.

Fear not! This article really does deliver. Earlier in the week I published a summary of a leadership strategy I presented at my client’s bootcamp conference (hosted miles from anywhere, in the mountains).

Today’s article reveals the formula for business success that the company as a whole is adopting – including some startling insights for entrepreneurs and business owners of all kinds.

To set the scene:

Store Managers from a large retail chain traveled to an isolated camp at the foot of some seriously rugged mountains. Picture scrubby bush, gravel roads and drinking water piped fresh from icy mountain streams.

In true bootcamp style, the participants would spend time mastering high-ropes courses, raft building exercises and intensive orienteering… all mixed in with lectures on business related stuff from leadership (me) to business critical tutorials (like financials, loss prevention etc).

The critical point: Attitude

The week was designed to encourage one particular principal above all others. Specifically, these Store Managers needed to take ownership of their stores. Mental and practical ownership… in the same way an owner/operator would.

This ownership would force total accountability and a psychological commitment to “Results… not reasons” (which my ranting was designed to emphasise).

Results not reasons

This principal is borrowed from the psychological make-up of super successful entrepreneurs. It is a belief and a commitment, proven time and time again to be present in the “lizard brain” of the world’s top business leaders.

Explaining (and adopting) the principal highlights some confusing issues. The most obvious is the simple logical impossibility of the idea:

When an entrepreneur or store manager commits to “Results not reasons,” they are essentially expecting more from themselves than anyone could possibly ever expect.

The commitment means that every endeavour, no matter how difficult, will always produce a “result” which you will be totally responsible for.

Typically, when things go pear-shaped in business (and life) we justify our less-than-ideal performance with reasoning.

Classic “reasons” include…

“The economy is bad right now”

“The market wasn’t ready”

“My staff couldn’t get it together”

“I didn’t get the right kind of support from my boss/franchiser/government/investors”

These statements (and all others too numerous to list here) are used by under performing folks (we’ve all been there) to help them sleep at night… ultimately, by comfortably shifting the accountability and “ultimate cause” from themselves to others.

The really clever “reasons” blame intangible bogeymen (who never defend themselves) like “the economy”.

However…

What if we do adopt this impossible attitude/belief into our business practices?

First of all, the adoptee must instantly assume a total commitment to learning and flexibility. Because, if you now only ever produce “results”… all failures MUST be transformed into feedback.

… it becomes your responsibility to utilise any feedback, learn from it and follow up with a fresh, more successful strategy.

In other words, you must constantly seek out solutions and see ALL future problems as opportunities for change and learning only.

The only admission of liability possible is:

“I didn’t expect that, but I’ve learned something and now it won’t happen again”.

Is the gravity of this attitude starting to sink in? People who really “get” the principal really do expect more from themselves than anyone could possibly expect.

Where the magic lies…

The psychological study of the world’s most successful business leaders reveals that ALL the really huge tycoons share this over-blown sense of expectation.

Examples like Buffet, Trump, Branson and Gates (just some of my favourites) have all share the attitude of unreasonable expectation for results… and the implied responsibility and accountability that goes with it.

My clients are in the process of discovering what this attitude will do for the Store Managers of a huge retail network.

I’m curious to know how making the “Results not Reasons” commitment could affect the lives of the corporate executives and business owners who are reading this.

The challenge

(This will be much harder than you think)

For one entire week, commit to producing “Results not Reasons” in your job or business.

When a problem comes up, look for ways you can be responsible and accountable. Forget blame – but take on board the necessary learnings. Work out what you need to do differently in the future.

Do this and I guarantee your week will be one of the hardest and most worthwhile to date.

What do you think? Anyone want to share the reasons why they can’t do this? Speak up in the comment section… if you dare

I was recently invited to give a talk on the basics of leadership – at a closed door corporate event which one of my clients hosted for their retail management staff.

It was out in the mountains – I got to fly back to the city while the managers face three days of leadership/team metaphor… a.k.a. Gruelling physical challenge.

The very cool, diverse group of people helped me figure out (and apply real world examples to) the following psychological criteria for exceptional leadership.

Best of all, it’s a acronym (who needs another numbered list anyway?):

G – for “Great Beliefs”

Before you lead any group of people to do something extraordinary, it pays to equip them with a set of awesome, empowering beliefs that allow them to get the job done.

Inspiration and motivation are irrelevant here – before we start playing with those Jedi mind tricks, you must first instil the beliefs that make the job possible.

Great, useful beliefs include:

“It’s possible to change things”

“My actions can and will make a difference”

“I already have or can find the resources (resourcefulness) I need”

R – “Reasons to Act”

Basic rule of behaviour psychology: No one, not even someone already on salary, will take any action unless they have a sufficient “reason why” providing psychological leverage.

Equip your team with multiple “reasons” why they can, must and want… to take action. Scary asshole bosses traditionally go nuts with threats when it comes to “Reasons to act”… and they may even get results! However, the best (most consistent) results happen when there is healthy balance of carrot (cos positivity is cool) and stick (cos we live in “reality”).

Ask yourself and your team questions like:

“What is the cost of not doing this?” … and…

“What is to be gained by taking action now… as opposed to next month?”

O – Outcome Clarity

This gets included simply because most folks forget the important parts of goal setting. Tangible measurements of success… plus, total certainty of when, where and with whom (more important than you think) are what well-formed “outcomes” are all about.

This is the stuff that makes “The Secret” work.

Practical approaches to turning a lame “goal” into a laser-precise “outcome” include asking:

“What will it look like when I have this?”

“Where will I be/What will I be doing the moment I realise I’ve achieved my goal?”

The more vivid and emotionally compelling the better.

W – Wilful Action

Simultaneously the simplest and the most regularly overlooked “essential ingredient” in the recipe for leadership success. Wilful action is getting up and doing it – once you’ve got all the other stuff.

Many times, people with the right beliefs, reasons, outcomes and even skills (see below) will still sit around waiting for someone to go first!

This is where you, the one who doth utter “Simon says”, stands up and leads! It isn’t called leadership for nothing.

S – Skills

This is where the technical training and real life “school-of-hard-knocks” stuff comes into play. Don’t bother leading folks who are incompetent. Invest time (and money) in first giving your people all the know-how required.

They don’t need to be masters – that comes with the actual “doing” part.

The best leaders are always already masters – they lead with so much more integrity by being able to say:

“Come, follow me down this road… I know the way.”

Got a question? Think something is missing? Want to know how this could apply to your specific leadership situation? Reply in the comment section (just scroll down) and we’ll figure out the answers together…