Selected Coaching Articles

Busyness Investments
by John S. Nagy

I've coached many a business owner over the years. One business was fun to coach since most of the people in the business had no idea what the business was really about. It's not like the people were not told about this up front. It's just that they never really thought about what they were being told. (I'll let you imagine for yourself what that business might be.)

As a business coach, I like getting an opportunity to help open some eyes in this instance. The light that goes on behind the eyes as they "get it" is an absolute thrill for me. Yet even after the light goes on for some, there's an equal amount of people that extinguish it just as quickly. They truly do not want to think too much about it since it would mean that they would have to change their operations drastically.

That bit of information that I share that delights some and frightens others is a tidbit on what their business is all about. It's the basics of their operation and the vehicle that moves them forward into continued success. That information is the premise of what builds their business.

The interesting thing about this is that the situation that I describe is no different for them than for any business that relies on personnel and sales to grow. The basics of any growth require income stream to manifest in some fashion. In this business, three different levels of activity cause that income stream. (Please bare with me as this is going to get really confusing here.)

To be successful in the business, the first level requires a person to move inventory. This means that the person must make sure that they are selling a product to people who are willing to purchase it. I call these people "investors" although most of the people in the business call them "customers, purchasers or buyers." No matter what they're called, they're any persons who invest in the product for end use. From a business stand point, the first level requires you to have a product to sell and than for you to sell it to others.

Success doesn't stop here because the second level requires a person to find others to purchase inventory and be willing to move it by selling it to other investors. Second level people are themselves investors in that they are invested in finding others who will 1) invest in inventory and 2) invest in the process of finding others who will invest in the product for end use - you know, customers. From a business stand point, the second level requires you to both find others to do what you did at the first level while you continue to do it yourself.

The third level requires a person to find others who are willing to invest in finding others who are willing to invest in 1) inventory; 2) finding others who will invest in inventory and 3) invest in the process of finding others who are willing to invest in that product for end use. From a business stand point, the third level is totally focused on finding "finders" while still involved in finding "sellers" and "buyers."

Sound confusing? You bet. That's why many never succeed in the business. They never get the basic commonality of all levels. Let's make it simpler.

No matter what level you're involved in there is a common aspect many don't realize. That common element is the "investor." The term customer is often used but don't get misled by using it. What makes this machine work are investors and they must be present at every level. The first level must be stocked with investors who are called "buyers." The second level is stocked with investors who are called "sellers." The third and last level is stocked with investors who are called "recruiters" or "finders." No matter what you call them, they're all investors.

This is why it makes this so much fun to coach people doing these businesses. If they "get" this simple fact that investors make this business grow, then from that moment on as a serious business professional, they will focus all their activities on dealing with investors. It's just good business sense.

The same thing goes for any other business. Good business goes for the investors every time. This means only dealing with people who are willing to put something of themselves into the mix that they consider valuable. Anything less would be an earmark that the person being dealt with is not an investor and not worth the effort to work with.

How does one determine that a person is an investor or not? Simple. One word to look for here is "commitment." If a person is not willing to commit to investing some aspect of their valuable resources in your direction like time, energy, money, or spirit, then it's a good indication that they're most likely not an investor. To be a success in this type of business, you must have investors.

Still, a more important phrase to consider here is "follow through." Do not confuse a verbal statement to be an investment from the other person. Many people in business confuse a verbal commitment with an investment. You know a true investment by its "action." If nothing is happening, it's a good indication that they are not making an investment.

However, suppose you convince a person to invest. You might think that this is a good investment on your part and you're in store for a good return. Be forewarned that the amount of energy that you expend up front to convince another person to invest can be a good indication of how much energy that you will have to expend to maintain that person on the back-end.

You might say that this has nothing to do with the type of business you're doing. You may be right. Before you dismiss this whole article as not applicable to your situation, ask yourself the following question: What is it that I am offering to others that would be considered valuable enough to them that they would want to invest in my direction? Or how about: Who or what do I invest in that doesn't give me a return on investment? Or one more: On average, am I dealing with a majority of investors or non-investors?

When you understand that all business (and life for that matter) is merely an offering and exchanging of a series of products and services that others are willing to invest in, than you start to do business (and life) in a whole different way. You start to invest at a whole other level. You don't invest in people who are unwilling to invest themselves. Things that give poor returns are no longer invested in. To do so just wouldn't be good business.

To Review:

• Start to view your business (and life) as a series on investments.
• View all your customers, personnel and co-workers as investors.
• Understand when a person is investing and when they are not.
• Invest in investors. Divest from the un-invested.
• Invest for higher returns.

Have a Bodacious Week!

Copyright © 2002 John S. Nagy.

Coach John S. Nagy is CEO and Lead Business Coach for Coaching for Success. Inc., a Business Coaching Service specifically designed for top level decision makers dedicated to peak performance in all facets of their activities. He’s hired to focus them continuously in activities that bring higher returns on their resource use. His programs are for the seriously committed. This means having his clients work "ON" their businesses, not just "IN" it. He’s a published author and a multi-degree professional with a nationwide client base. Coach Nagy can be reached through his E-mail address at his website at http://www.coach.net and by calling 813-949-0718.