The Accidental Entrepreneur

by Allis, Janine;

  Showing respect for others is equally important, and the more you do so the more others will give you respect in return. Being an attentive listener is the first way to do this. Never interrupt or mock people when they have found the courage to speak. They believe in what they are saying and you owe them the space to air their thoughts. Try to learn something from them or something about them. By encouraging people's opinions and ideas, by sharing in their successes and not blaming other people when failure occurs, you will earn their respect. Also, if you value other people's time, they will acknowledge that your time is important too.

  Always put yourself in the place of the people you're dealing with, and treat them as you wish to be treated. If you give them the respect you believe you deserve, you will find that others begin to treat you in the same manner.

  This is particularly important with creditors and debtors. Pay on time and keep the wheels of commerce rolling! You want to be paid quickly, don't you?

  Let me give you an example. We'd worked with a particular supplier from the very start — the relationship was great, we liked the company and its staff went above and beyond to ensure we always had supply. This was until the owners sold the company. After this, the relationship started to sour — the new owners were inflexible and did not return calls. The relationship got to the point that we needed to cancel the contract simply to guarantee supply. A meeting was called and a very tall man came in. My hope was that we could either resolve our problems or part company with respect. His strategy was to threaten and use heavy-handed tactics.

  From the moment he sat down, there was no respect in the room shown by him for me, which in turn ensured that none was shown for him. It inevitably ended with the only winners being the lawyers. The shame of the whole episode was that if both parties had worked together with respect and with a firm commitment to resolve the problems, it would have ended in a win–win.

  If all negotiations are based on respect, even if you think that you got a raw deal, you know that in the future it will all work out. I would much rather be respected than liked. Great leaders are respected. If you are always looking to be liked first, you will find that respect will eventually dwindle.

  Pro tips

  Here are the components for building respect:

  If people respect you, they will believe in you. This is the cornerstone of good leadership.

  Respect is a two-way street. Treat people with respect and they will respond in kind.

  Attentive listening is an important part of showing someone respect. If you are distracted, people can quickly pick up on that fact and it will make them feel unimportant to you.

  Confrontation

  Most of us will go a long way to avoid a confrontation (yes — I'm talking to you!) and I used to be exactly the same. Now, however, I've learned to deal with unpleasant situations. I face up to difficult problems at the beginning of each day and get them out of the way. At Boost we call it ‘eating that frog', a phrase one of my executives picked up from a book by Brian Tracy.

  You won't earn respect for being inactive and pussyfooting around an issue because you don't want to clash with someone. I used to hand some of the more difficult situations at Boost to my husband Jeff (who thrives on confrontation). Now, I see that confronting these issues can be an amazing and cleansing experience. The key is choosing the right way to fight.

  A calm manner gives you the upper hand in any argument — if you show control of yourself, you will be in control of the situation. Keep your voice level, your eyes directed at the person and speak clearly and concisely. It's very difficult for your opponent to speak or act aggressively towards you in the face of such composure.

  Make sure that you have all the facts you need at your fingertips. I will only get into a confrontation if I have right on my side. If that means I need time to prepare, I will avoid having the discussion until I am ready.

  And remember, confrontation does not have to be an argument but rather can be a discussion about different points of view — and it can have a positive outcome! Bully tactics may win a particular battle, but they will lose the respect of all those witnessing or involved in the discussion. There are two sides to every argument. Try to understand the other point of view because, believe it or not, you could be the one in the wrong.

  Avoiding ‘grey'

  As Janine says, in the early years, she sometimes turned to Jeff in times of confrontation because he was simply better at it. Jeff says, ‘Well, we are all different and if you're keen to grow in business you have to adapt to your strengths and find points where you can cut through and stand out. I guess a strength of mine has always been to tackle issues head-on — an approach probably exacerbated by the number one mission I was given when I first arrived in Melbourne radio: “Go in and kick a few doors down”. This mission was given to me by the radio's senior management, who were frustrated at the amount of “grey” they were seeing. (“Grey” includes ineffectualness and wishy-washy actions and leadership, as well as the inability to make a firm call on anything. Grey allows people to say that they were confused and uncertain about what was required. It is a weak person who lives in grey.)

  ‘There really is so much grey in the world and it often seems much more practical to confront a person on an issue and get it sorted then and there. In practice, of course, it very rarely works out that well in the short term, because you catch the person on the hop and they go into massive defensive mode. Very little may get resolved at this point — but don't be fooled into thinking nothing has happened. The confrontation usually has a massive aftershock.

  ‘I once had to confront an executive over a pretty serious matter. During the meeting he was amazingly calm and collected, even ambivalent over some of the issues I was confronting him with. So much so I was almost questioning my facts. However, I then tracked his movements after the meeting — and he went into overdrive, with eight phone calls and six emails on the subject within an hour. So, yes, the point about what needed to be sorted did get across.

  ‘The other great thing about confrontation is that it's often only under pressure that you find out the type of person you are truly dealing or working with. How different people respond to confrontation can be a real eye-opener. Obviously, the best types of people take it on the chin, work out solutions and move on.

  ‘While I'm all for tackling something head-on, if you are going to confront a person, remembering all of Janine's rules in this area is critical. You must be in a position of power with regard to your knowledge of the facts. The initial electric volt that starts the confrontation will give the person a shock but you need to be able to follow up with facts to show you know your detail.

  ‘Confrontation should be seen as cleansing for everyone — it shouldn't be a shouting match but should (hopefully) be a calm (and sometimes awkward) delivery of something that needs to be addressed. Once you've addressed the issue, you can all move on.

  ‘The reason appropriate confrontation is so effective is because so many people avoid it — so issues are allowed to grow and fester through your business. Good confrontation stops or at least diverts the stream of bad practices you are trying to prevent. So start to think about the things and people you need to confront. Obviously, bringing up issues is much easier if you're in a position of power, but the truth is if you confront issues for the improvement of the business with people above you on the chain, you'll likely be looked on with admiration for the courage that you've shown.

  ‘Confrontation is certainly not for everyone, but if you can learn to enjoy it and use it effectively, you will certainly stand out from the pack. And remember — the quicker you tackle something head-on, the better'.

  Pro tips

  Here's how to deal with confrontation:

  Aim to ignite and extinguish an issue in one meeting. Have the confrontation face to face, and keep coming back to the facts to support your point of view.

  Always attack the problem, not the person. If you can avoid in
juring egos during the exchange, the relationship will always recover much more quickly.

  Don't take it personally. I've always found this difficult, as I am a passionate person, but I've learned to follow this advice. You cannot respond in a calm and intelligent manner if you take things to heart.

  Ramping up

  Here's how to take your confrontation skills up a notch:

  Take notes during your business dealings. If a confrontation brews, you can avoid a ‘he said–she said', mudslinging match by showing supporting evidence that backs your position. Remember — you cannot have enough written support.

  Avoid email fights because they can be misread — and they could come back to bite you later.

  Money

  William Shakespeare knew what he was talking about when he said ‘Loan oft loses both itself and friend', and nothing much has changed in 400 years. It's always easier to lend money to a friend than it is to get it back. Don't do it! Learn to say no.

  If you're running your own business, also learn to say no to any unnecessary consumption in the short term. For the first three years of running Boost, I didn't take anything out of the business, not even a salary, and I put everything I could back into the business. During those years, we lived in a rental property with three kids and the business. Everything was on a budget.

  When you start a business, suddenly you have lots of friends who want freebies. Start how you intend to finish. Even to this day, I pay for my smoothies and juices and, if I shout someone, I pay for it. In a cash business, you can be tempted to take money or give a mate a free drink, so the easiest way to stop this is to act in the way you want everyone to act. You may feel like a tight arse for not giving your friends free stuff, but all these ‘freebies' cost money — you pay for them. Do not feel guilty about charging for products and services. Keep your friends, family and business as separate as you can.

  Pro tips

  Here are some things to keep in mind about money:

  If you build a reputation for never lending money, it will be easier to say no to requests. When I invest I make it clear, like Geoff Harris did when he started with me, that I am not a bank. The business needs to run as a business and together we need to solve the money problems of the business.

  Offer your time and advice to those seeking help; those forms of assistance are much more valuable than cash in the long term.

  If running your own business, try to forgo short-term gratification for the long-term success of your business. Ask yourself whether certain personal purchases really need to be made or whether the money would be better invested in the business. Every cent spent should return double. Ask yourself: is this expenditure really necessary right now and will it return me profit?

  Negotiation

  A negotiation is not successful unless both sides feel they've won. In line with this, two elements are vital to a successful negotiation:

  Information: Do not go into a negotiation with only your point of view. Understanding the other party's needs is equally as important as understanding your own. Ask yourself, ‘What do I feel is reasonable?' or ‘What would I want if I were them?' This will allow you to counter the opposition's arguments before they are raised.

  Lack of emotion: The only way to negotiate a great deal is having the ability to walk away. The only way to know if it's a great deal is to listen, listen and listen. Never let your heart rule your head in negotiations. If you are emotionally attached to something, you will give away too much. This holds true whether you're buying a house or making a business deal. Try not to take the proceedings personally. It's difficult, but try to think of yourself as a third party.

  Negotiations take an enormous amount of courage and a very clear head. You should always ask for more than you want and then negotiate down. Don't give away your minimum requirements — you may end up with even less. Also, don't favour the same weapon over and over; it will become less effective each time you use it. The more options you have, the more power and control you have.

  I remember my first major negotiation — we took on a small juice chain in Queensland that had started up with the name Juice Boost. In the end, we paid for them to change their name and we bought their trademark. It was a win–win situation. We had to pay, but it was worth it to retain the purity of our brand. We had right on our side and got the best out of the deal!

  I have negotiated all sorts of things — including bills from lawyers who in my opinion have overcharged me (perhaps not surprisingly, this happens a lot), multimillion-dollar master franchise agreements and sales of businesses — and the biggest thing I have found is that no negotiation is the same. The greatest skills you need in any negotiation, however, are emotional intelligence and the ability to be a really (really) good listener. If you listen more than you talk, you will hear what the other party wants. The other great skill in negotiation is putting yourself in the chair of the person you are doing business with. (Remember — the best negotiation is when everyone wins. If you cannot put yourself in the other person's shoes, you should not be negotiating.)

  In 2005 I was in Dubai with Jacinta, negotiating a master franchise agreement with a party we thought would be a great company to open Boost stores in Dubai. We wined and dined with their sheikhs, we listened to their needs and we presented our business with the passion and enthusiasm that we have for the brand. The business spoke for itself — it was a sexy brand, and was in the wellness category from a country that is perceived to ‘love life'. They had the contacts and experience to launch the business in the market and were ready to move into the wellness category. We negotiated the contract while we were there, constantly working on the memorandum of understanding in our hotel room. I remember being with Jacinta in the airport on the way home when it was all over, not quite believing that we had completed an amazing deal to launch Boost in Dubai with a party who had never seen a store.

  Pro tips

  Here are the core elements of great negotiation:

  Learn as much as you can about the other party. If you're negotiating with a public company, you'll find that everything you need to know is easily available — from information on the shareholders and senior executives to the company's profit forecasts. Information is your key weapon.

  Try to stay detached during the negotiation. Emotion has no place when you're making a deal.

  Put yourself in the opposition's shoes. This will help you to counter their arguments and provide a win–win solution.

  Know what you are prepared to accept, but never give away your minimum. Aim high and negotiate down — never the other way around.

  Success

  There is a price to be paid for success. No-one achieves their goals and dreams without giving up something. But can you afford not to try?

  What have I given up? A hell of a lot of time — time with my family, husband and friends and also time on myself! Is it worth it? For me, yes. That's because the results are not just financial success — I also love the journey of creating something special, as well as the mental stimulation and the chance to follow creative pursuits. My success has made me a better, more rounded person, and I wouldn't have given up what I did if I didn't want to. Sometimes when I'm torn between work and family, I feel like I'm robbing Peter to pay Paul, but it comes down to what's worthwhile for you. My whole life has been a pendulum, trying to get the balance right, but that is what makes life interesting.

  If you want to follow your dreams, you need to be prepared to make sacrifices; you must decide what you're willing to put in. Many people expect luck to deliver them a fortune — well, I've got news for them and it's all bad! Success does not just come about magically — you have to make it happen, and that means giving it everything you've got. With any luck, your hard work will pay off. It has for me and I have no regrets. I have a great life and nothing to complain about. Can you ask for more than that?

  Of course, success means different things to different people. My sister Lisa is 21 months older tha
n me, and I remember being in the car with her when she was 17 years old. She said then that what she wanted in life was to find love, get married and have a family.

  Lisa has never not got a job she went for, and at every job she gets they love her. However, even now her family is her success — I look at her three girls and her husband, whom she loves, and I really see success. Happiness is success, not dollars. I am sure that Lisa has never looked at me and my business success and wanted my life, because she is already happy and successful. I am successful because I have a husband I adore, and kids who are all individual and amazing — because that is what makes me happy and that is my success.

  Pro tips

  Here are some things to remember when chasing success:

  Be prepared to give your all to achieve your dreams.

  Success is not just monetary (or sometimes not even). Do what you love, and the financial rewards will come.

  There are no fairytales — there is just damned hard work!

  Credibility

  Credibility is easy to talk about, but difficult to come by. One thing is certain, however — credibility is vital in today's business landscape. In this electronic age, with the information and awareness that is out there, you can't fake it.

  What is credibility? It is a general opinion held by others that you ‘do the right thing'. Your credibility should be part of your reputation. How does a young entrepreneur or business attain credibility? Well, there are a few operational basics.