The "Secrets of Success" - My Foot! Research On Mastermind Groups (reprinted)

Due to popular demand I am republishing this article here. Apologies for any cross-posting. It was originally published at The Directors' Centre Online Business Club

The eternal search for the secrets of business success creates wave upon wave of products and services that “unlock the potential” etc etc. However, some evidence of what actually works does already exist.

After a late night brandy and long discussions about exciting people I have worked with in the past, I decided to do some digging around. I followed up a cadre of companies I worked with some ten years ago and decided to see quite what had happened to them.

What we do know is that the ‘successful’ are very different from the ‘less successful’ (see the Magic Million Survey) and one of the key differences is how the successful take control and ownership of their destinies. They do not blame others.

Other characteristics include a “can do”, “take action now” and “get the best help” attitude. All good stuff. And then, of course, there is the obsession with strategy, marketing and teams… but that’s not what I wish to talk about here.

So what became of my 2001 business group (and why)?

I chose to chase up a typical group of entrepreneur and business owners that I had worked with in 2001. The eight businesses had an average turnover of £1.2million; they varied between £50k and £3m turnovers. They worked with me over the year, coming together in what would now be called a Mastermind Group, to explore and develop their businesses. And what became of them?

Well, the results were almost too good to be true (but I think I can explain that). Depending on how you measure “current business activity” (because of acquisitions, mergers etc), the average £1.2m p.a. turnover is now between £3.5m and £13m.

All are still trading in one form or another. They have gone on to achieve:
• Sales in excess of £500 million
• One business sold for in excess of £20million
• One business the subject of a full management buy-out in excess of £10million
• One business owner able to retire aged 42 and hand over the business to a management team.

So, is there some kind of secret formula? Some magic, silver bullet? Well, the answer is ‘yes’ and ‘no’!

But, mainly no.

Let me explain.

The world is currently littered with get-rich-quick, too-good-to-be-true, money-back-guaranteed promises to help you grow your business. Our inner child looking for relief from the stress and pain of our ‘under-performing’ business responds positively to offers.

Sometimes the “ten things to do in the next ten days” type programme can be the red-hot raw ginger we need to sort our businesses. But, more often than not, the real problem is more, shall we say, ‘structural’ and requires a more considered and bespoke solution to create a long-term improvement. Anyhow I digress.

My point is this. You need to think about whether your business will benefit from a quick fix (a quick tune-up, points, plus an oil change) or whether it needs a more significant, real fix (changing or replacing key components to match what is really required). Either way we all know what we think about anything that claims to be a quick-fix or too-good-to-be-true.

So, why did these businesses do so well?

I believe that there were two reasons:-

1. The nature of the programme: A closed group that meets with the sole intention of improving each other’s businesses. All attendees were looking for profound, significant and measurable growth in business performance; they shared ‘insider secrets’ and best practice from ‘been-there-done-it’ experts. The programme also created intense, supportive business relationships and produced the accountability required to make delegates over-deliver on their action plans.

2. The nature of the people who are attracted to such a programme: Only certain people (the truly success-focused) would be attracted to such a programme, people with the “can do”, “take action now” and “get the best help” attitude that I mentioned before.

This combination of the right programme and the right people creates a dynamic and electric atmosphere.

Government Health Warning: While the results of the individual firms concerned are very impressive, one doesn’t really know whether they would have done much, much better or much, much worse had they not attended!!! We will never know the answer but what we do know is that the sort of people who do attend these kind of programmes see truly significant improvements in their business performance.

P.S. I have subsequently looked at other similar groups and they have all got similar leaps in business performance

Robert

The Real Virus That Is Killing Your Business

There seems to be a virulent disease spreading through the business community. Like all viruses it has pervaded its hosts almost unnoticed, and slowly but surely it has spread and got so comfortable with its parasitic existence within the body of its hosts that the hosts seem oblivious of its existence.

This disease, this scourge of the business community, is the recently discovered “five-year-old-itis”.

Symptoms

The symptoms are plain to see:

• Nothing seems to work as well as it used to (sales campaigns, adverts, proposals)
• Everything seems to take longer (commitments, decisions, replies to emails)
• There seems to be less traction and more ambiguity wherever you look
• You’re working harder than ever before and making less progress than in the past.

These are warning signs that you are probably suffering from “five-year-old-itis”!

Cause

Most businesses have behaved like frightened rabbits in the headlights of the recession. They have got stuck, unable to decide what to do, petrified of making the wrong decision. And their whole world view will have been based on a pre-recession model of the world. In the past five years everything (and nothing) has changed. Five years ago everyone was doing pretty well. There was virtually no Twitter, FaceBook or Linkedin; we had become familiar with living in a constantly-growing economy where consumer demand and house prices just kept going up. And then the bubble burst.

Most businesses that I currently see are using five-year-old assumptions about:

• Their business and financial model
• Who the customers are and why and when and how they prefer to buy
• Who the competition is
• Current staff, processes and systems, and whether they are the right people for today’s true customer and market needs.

Cure

There is no shortage of hyperventilating, breathless, get-rich-quick, money-back-guaranteed, effusive, testimonial-driven business programmes now on the market. However, I am not convinced that a one-size-fits-all quick fix is necessarily the right answer for your business. None of us believe that quick fixes (hair removal, sun tans, patio doors, weight loss) really work. (As my mother says, if it is too good to be true then it probably is.) So, why would you think that a quick fix would work for your business?

The alternative to the quick fix (despite how seductive and appealing it may look), would be the ‘proper fix’. And this, my friends, may be harder work but may sort you out properly. By this I mean actually stopping and redesigning your business, creating a business for today and tomorrow rather than for five years ago.

Food for thought.

What help should you get for your business?

In an earlier article article, I asked:

“Is it better to work with more businesses (in a relatively shallow way) or is it better to work with fewer but in a more intense way (and therefore more long-term benefit)?”

(The original question arose out of two sessions working out in Africa (Botswana, Zambia, Malawi and Mauritius). My preference (in terms of giving the biggest benefit to the individual clients and to the group) was to work longer and deeper with fewer people.)

Applied to your own business (and specifically to your marketing) I wondered if it is better to narrow your focus and look for deep knowledge in a narrow field (niche) or is it better to go broader and shallower?

As I reflect on my own activities with business owners and directors (spread between keynote speaking through seminars to mastermind groups and one-to-ones) I have been following the progress and successes of clients and delegates.

All the research points to one blindingly obvious fact.

Yes, the choice of intervention is varied from free workshops, seminars and ebooks through paid-for CDs, videos, events and workshops through to mastermind groups, strategy awaydays, coaching and consultancy support. And yes, business owners should choose the style of intervention that suits them best. However, the medium selected is just that, simply a means to an end. And the end is to significantly improve business performance. So, the question that should be asked is, “which medium gives the biggest and best improvement for my business?”

What is emerging is that the simpler, shorter interventions, especially what can be called ‘one-to-many’ activities (one speaker to 150 delegates, one speaker to 150 people on the end of the phone, one person making a CD and selling 150 copies…) is not necessarily the best catalyst to get the business owner to

1. Recognise the business’s key issues
2. Understand the cause and best possible solutions
3. Understand what decision needs to be made
4. Take the decision and put in place a plan to roll-out the necessary actions
5. Make the plan happen
6. Know how to monitor/evaluate/improve on the plan (and do it).

‘One-size-fits-all’ solutions rarely do fit all. If (as a director) you don’t know what you don’t know then how do you know if you are actually doing the right thing…?

Because business owners need to understand what is wrong with their businesses (and because they probably don’t have the diagnostic skills to identify them) so it can be seen that smaller groups working for longer time-periods (not just one-offs) and actually inter-relating in discussions about the specific business should be more effective.

To that end, we find that mastermind groups, strategy awaydays, coaching and consultancy support are the most effective interventions.

In general terms you can see a continuum going from low price/low result through to high price/high result.

However, a high price-point does not guarantee high results. The key seem to be whether the intervention (at whatever price-point and by whatever medium) actually gets the business owners/directors to take the necessary actions to grow their business.

Regrettably too few of the business interventions actually help the owner to do this.

So, as an owner-director what do you do? I think you have to choose the intervention that you think will best help you to make the decisions and take the actions. Making decisions and drawing up plans is good but actually it is the implementation of the right plan that you are looking to accomplish.

So, is the best intervention (from the point of view of giving the individual client, you, the best result) to work with more clients (but in a shallow way) or to work with fewer clients (but more intensively)? If you are talking about the future of your business then the shallow solution (a book, CD or workshop) simply cannot be sufficient. You need the intense solution that gets you to take action.

The Books I Lend Out The Most

From Warren Cass's blog....

Warren Cass has just asked me to write about three books that I think are great (“my favourite business books”) as part of his ‘Big Business Book Month‘.

Should be a doddle I thought as I’ve just put the finishing touches to two chapters for a book on Business Gurus (you’ll have to wait to find out who I wrote about).

To spice things up I have decided that maybe a better title than “my favourite business books” (see this link also) would be “the books I lend out the most” because this reflects the interests of my clients and colleagues.

So, my list of the books I lend out the most is as follows:

Seth Godin: Purple Cow

PC asks the crucial question, “How can you make your business remarkable ie worthy of being talked about?” Godin argues (as I do in Bright Marketing) that the key to success is to find a way to stand out. The book claims that we have now moved into an era where markets are largely satisfied, and that to be noticed a product and its marketing need to be remarkable to be seen at all, let alone to sell. In his language, you need to be the purple cow in a field of monochrome brown cows.

Godin’s blogs and articles always entertain and challenge. For a taster take a look at In Praise of the Purple Cow

He reminds us to keep looking and searching and questioning and to not accept the status quo as being good enough.

Tim Ferriss: The 4-Hour Work Week

4HWW is like Gerber’s E-Myth plus Covey’s Seven Habits but all on steroids – the tagline says it all: “escape 9-5, live anywhere, and join the new rich”. A challenging read and not everyone’s cup of tea. Ferriss explains how to follow a step-by-step process to get yourself a ‘luxury lifestyle’. He advocates using the available tools (that usually tend to actually complicate things) to become more effective and filling your personal time with the things you really want to have.

Ferriss concedes ‘much of what I recommend will seem impossible and even offensive to basic common sense’. Statements such as “everything popular is wrong… be unreasonable… cultivate selective ignorance, interrupt interruptions, management by absence” give you a feel for his approach. The idea of mini-retirements is promoted as an alternative to the ‘deferred life’ career path where many people work their 9-5 until they get to retirement in their 60’s when they are too old to enjoy what the world has to offer.

Bo Burlingham: Small Giants

Again the tagline says it all: “companies that choose to be great instead of big”. 14 companies that choose not to grow just to sell-up. (See more here) There is an alternative to the dream of the big exit strategy; you can choose instead to avoid the pursuit of endless growth deciding to focus on more satisfying business goals, being the best at what they do, creating a stimulating place to work, and pursuing perfect customer service.

Postscript: I’d like to thank Warren for the invitation. On reflection, a couple of points:

• It is curious that all the books come from over the Atlantic – can’t the UK compete or is it just that I like their style and their attitude?
• Godin, Ferriss and Burlingham are by no means flawless. Their work is presented as work-in-progress, warts and all. What I love about them is how they get me to think about my businesses and those of my clients. Interestingly enough, while Burlingham is a safer read, it is the companies he describes that are so stimulating
• All these books kick against the status quo
• Good books (or at least these books) tell you exactly what they talk about on the cover.

High Court rules Bath Planners have a case to answer on controversial Woolley site

High Court Refer On BANES Planning To Judicial Review Hearing

SWVAG Ltd is pleased to announce that at a hearing on Friday, 21st July, in the High Court, by the order of Mr. Justice Ouseley, they were granted permission for a Judicial Review in the High Court in their action against Bath and North East Somerset Council (BANES). The judge heard arguments from SWVAG's counsel, Richard Harwood, and from Lisa Busch representing BANES, and ruled that BANES have a case to answer in two Planning cases regarding the Golden Valley Paddocks Ltd (GVP) intensive farming development in the Woolley/Swainswick Valley.

The first case involves SWVAG's claim that BANES' position that ten chicken sheds, each designed to house 1,000 chickens, does not fall under European Environmental protection directives is unlawful. The second case involves SWVAG's belief that the only Planning Application (one of 8, that GVP have submitted, all retrospectively) so far approved by BANES for a stock pond has been approved unlawfully.

Mr. Justice Ouseley also granted SWVAG a Protective Cost Order so that they can proceed with their action with the comfort of being able to budget their costs. He also agreed with SWVAG's request to expedite the hearing as the case has been proceeding already for some considerable time and has ordered for the case to be heard in the next term ie the next 4 months.

SWVAG Ltd is the legal vehicle for the Save Woolley Valley Action Group who have registered more than 1,000 expressions of support on their website
www.savewoolleyvalley.co.uk

Background

Local developer Golden Valley Paddocks Ltd (GVP Ltd) have continued work on a site in the Woolley Valley despite having 8 retrospective Planning Applications, 5 which were rejected, one granted (which is now to be considered in judicial review) and 2 which BANES are currently considering. BANES Planning Dept. failure so far to enforce the 5 refusals sets a dangerous precedent for rogue development in Green Belt land across the country.

GVP Ltd appears to be a property developer who is using agricultural schemes to justify the siting of first mobile and then permanent residences. They applied retrospectively for planning to erect an agricultural building supposedly to house alpacas – a known shoo-in for residential planning with some local councils. They then proceeded with further developments (all without permission) to support an intensive chicken farming operation involving the use of 10 bungalow-sized chicken barns, which will allegedly house 10,000 chickens.

The Woolley Valley in which the development is sited is within the Cotswold Area of Outstanding Natural Beauty (AONB) and has the additional protection of an Article 4 Direction which was put in place by the Secretary of State for the Environment on 3 Feb 1993. The Article 4 Direction removes specific permitted development rights:

• Works for the erection, extension or alteration of a building; or
• Any excavation or engineering operations.

BANES Planning Department issued a Planning Contravention Notice in early May and a Temporary Stop Notice forbidding further excavation and engineering work on the 10^th April 2010 (which expired 20^th May 2010). BANES Planning Dept. issued an enforcement order on the 21^st May 2010 to halt any further site earth level changes. It acknowledged in its Enforcement Report of the 18^th May 2010 that it is expedient to enforce the removal of the mobile home but to date has not issued an Enforcement Order for this. It is now over 15 months later .

Peter Gabriel commented:

"This is one of the most beautiful valleys in the west of England, and the development is making a mockery of our planning and environmental policies. I can only think that BANES don't have the resources to fight it, as clearly it would be an issue that you would imagine would be high on their agenda."

Jonathan Dimbleby, who owned the land from 1993 until 2005 stated:

“I am particularly dismayed by the way in which the field nearest the village has been excavated and partially filled with what looks like hundreds of tons of spoil. This was the most ecologically valuable field on the holding with natural streams and it was farmed with great care to avoid poaching the land and to maintain its particular character.”

Jacob Rees Mogg, newly elected MP to the area commented of B&NES:

“It is important that planning laws are applied effectively. There must not be one rule for us and another for aggressive developers. The scar on the landscape is a disgrace and I am urging the Council to act.”

The National Trust have stated:

"It is clear that the landscape is being destroyed with major earthworks and a number of enormous supposedly mobile chicken houses," Wendy Stott, the National Trust's Bath property manager.

"This is an important valley and the National Trust urges the council to take speedy and effective action to prevent unauthorised developments. We are more than willing to lend our support to the local campaigners and will always seek to protect such important countryside areas around Bath. The National Trust is supporting the campaign being run by Save Woolley Valley Action Group.”

Ends

Editor’s Notes

SWVAG Ltd formed in April 2010 to raise public awareness and encourage organisations and influential individuals to apply pressure on BANES Planning Dept. to stop the illegal and destructive development taking place in Woolley Valley. They launched an online petition (www.savewoolleyvalley.co.uk) to demonstrate to the council that the campaign has significant public support and that they must enforce planning regulations against rogue development, if they are to maintain their integrity and support amongst the local public.

For further information please contact:

Kieran Higgins, Public Relations on 07776463859 or higgys356@hotmail.com or visit http://www.savewoolleyvalley.co.uk

The Power of Groups - The Mastermind Experience...

Taken from an article first published in Growing Business...

A Mastermind Group meets for the benefit of its members. It usually focuses on sharing or exchanging business knowledge, experience and ideas with a view to improving business performance. It uses the power of partnerships to create massive productivity gains and prosperity for its members.

Free DIY groups range from the corporate/franchised models through to exclusive guru versions. At its simplest, you get what you pay for.

There are no shortage of players in the ‘corporate’ and franchised models where attendees get a speaker in the morning and some form of coaching or boardroom ‘hot seat’ scenario in the afternoon hosted by the facilitator. The real issue is firstly whether the facilitator has relevant experience (e.g. entrepreneurs need entrepreneurs). Secondly, can they do more than just facilitate? Will they get you to go and do the things you need to do?

This is where the exclusive guru model can come into its own. The guru in question should be an expert in their field (as recognised by others and not by themselves!), have the tools relevant to your particular issues and the technical skills and competence to share, communicate and motivate you to achieve. A large part of this is to do with the personal chemistry between you and the guru. Do they ‘get’ what you are trying to do? Do you believe that they can really help you?

Results: in the long run

To check out the long-run effects, I have traced a series of mastermind clients from some ten years ago. It makes fascinating reading.

Taking one particular group, the 10 businesses were turning over just under £1.3m (on average) back at the start of the decade. Some ten years later all are still in business and the average turnover is now £15m. More significantly, profit grew a staggering thirtyfold in the time period.

Quoting statistics is always dangerous but those who wanted fast growth got it (e.g. £30m in four years) and those who wanted a new lifestyle choice got it (selling their shares for in excess of £20m).

On average, the long-term performance of these businesses has outperformed the market. However, the stats do not tell the whole story. In the interests of honesty we are not doing what the scientists call a fair test. In reality, the businesses may have blossomed with or without the programme. Maybe the programme just attracts high-performers.

What we can say is that those who choose to attend such programmes achieve above-average performance. Do you want to be part of that crowd?

Results: in the short run

In the short run, attendees often see dramatic results very quickly. This year I have seen one delegate save 51% on a £100k bill (with one simple phone call), one start trading in Australia and the USA, one who has just had his best year in 30 years of trading and one who has sold his business. Dramatic things happen and very quickly.

What works?

I have worked for most of the recognised mastermind franchise/market leaders, business schools and business growth programmes and action-centred learning groups in rious capacities. I have also run my own Mastermind Groups. What I have observed is the following:

• The dynamics of the group, the peer-to-peer support, is almost always underestimated
• The success the role of the group leader is in the title: they are not just a facilitator (i.e. helping delegates ) but they should be a leader (inspiring action)
• The focus on action and delivering results is crucial; this is not a talking shop
• Results and progress needs to be measurable – delegates need ways to measure their progress and development
• Delegate commitment is vital – often a larger financial obligation heightens the passion and determination to make the project a success
• The selection of delegates requires careful consideration – this is not a place for the faint-hearted; the last thing you want in the room is energy-sapping negative people
• Most people want and need frank and honest feedback. This is not the same as bullying and it is not the same as being nice and polite
• Entrepreneurs need to be accountable: it is the role of the leader and the rest of the group to hold the individual’s feet to the fire – the delegate must become accountable to the group for delivering on promises and commitments.

And the BUT

The Mastermind Group carries a massive Government Health Warning. It is not for everyone.

Typically, people join such groups because they want to “achieve their goals faster”, “be part of a club that understands them”, where they can “share their dreams and their fears”, “learn from the expert”, and “work with other people facing similar challenges”. Every person’s reason for signing up is different.

Emotionally, the group provides tough love, safety, security and confidence from a solid, inspiring sounding board. Functionally it fast-tracks results by working with people who have ‘been-there-and-done-it’, by using ‘insider secrets’ and top tips to grow your business. Specifically, powerful contacts, referrals, recommendations and joint ventures are made.

It is not for everyone. But is for the highly motivated who are truly committed to making things happen.

So it’s worth asking, “Do you feel frustrated by your progress?” If so, a Mastermind Group could be for you.

RELEVANT LINKS
The webpage and video for the Mastermind Group can be seen here.

There Is No Such Thing As A Small Business Market

Thoughts after a meeting with a corporate "about to focus on the SME Market".


There’s no such thing as the small business market.

Working with a corporate who doesn’t seem to get the small/growing/independent business thing. The client was looking to target growing small businesses (presumably with budgets to buy Product X systems).

“Wow, four million to shoot at" they said excitedly.

“Wrong", I said. Back to Marketing 101, day 1, hour 1!!!!

First, there is no small business market.
A 'market' is a group of businesses/people who behave in a similar way – a group that can be treated as similar. There is not a small business market.

The whole small business sector is diverse and knowing how to sell to one small business does not mean that you can sell to another.

Yes, there are segments, but you cannot design one strategy to reach the small business market. Or rather you can (see certain banks, accountants and business support agencies) and then it is just one huge shotgun approach, probably wasting more than you win.

Second, the reality is that a majority of this so-called market is not actually part of the market.
Wannabe entrepreneurs claim to be small businesses and end up on your database and at your events but these are people who would never buy. If say 20% of your database are time-wasters then suddenly your target of legitimate potential customers has got significantly smaller.

The tendency to over-estimate the market is the classic corporate mistake.

“Wow, four million to shoot at“ (less 15- 20% who shouldn't be included, less 80% who employ less than 5 employees leaves you with almost nothing to aim at).

What is left over is also pretty difficult to find. Even harder to reach.




RELEVANT LINKS
Marketing to Independent/Growing/Privately-Owned Businesses - blog
SME Update - You're taking the SME - blog
"I am not an SME, you patronising ***!" - article with 10,000+ hits