Latest / The SmallBizChat with Melinda Emerson / Why Every Small Business Owner Needs a Coach with Michele Phillips

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Why Every Small Business Owner Needs a Coach with Michele Phillips · The SmallBizChat with Melinda Emerson

• 0:00
  It almost always starts with financials.
• 0:02
  Right?
• 0:02
  So they, in some cases, they're managing their business from their checkbook.
• 0:06
  You know, Dee talked about this.
• 0:08
  People are are afraid of money.
• 0:10
  So they they they got in this business sometimes to make money, but then the money
• 0:14
  sort of brightens them.
• 0:15
  And they they don't wanna get in there and really understand You know, what what are your
• 0:19
  financials?
• 0:20
  How do you make money?
• 0:21
  What is your profit and loss?
• 0:23
  You know, they're often under underpriced, undervalued, some and they're not making
• 0:28
  decisions from those financial from that financial data.
• 0:32
  Right?
• 0:32
  So that's really a big one.
• 0:35
  2, 1, 0, ignition,
• 0:40
  liftoff.
• 0:42
  Ending small business failure.
• 0:44
  Welcome to the small biz chat podcast with the number one small business Burt, Melinda
• 0:50
  Emerson.
• 0:51
  Melinda's goal is to end small business failure, and she'll give you the information
• 0:56
  you need to succeed and live the life you dream of.
• 0:59
  Now here's your host, the small biz chat lady herself, Melinda Emerson.
• 1:07
  If you've been trying to figure out how to turn your side hustle into your main hustle, well,
• 1:11
  listen, this summer, I'm gonna be teaching the become your own boss 10 week online course live
• 1:18
  starting June 20th.
• 1:20
  So every Tuesday night, you're gonna be with me, and I'm gonna teach you everything you need
• 1:24
  to know about how to start and how to run a successful small business.
• 1:28
  And I'm America's number 1 small business expert, so that's really saying something.
• 1:32
  Register today.
• 1:38
  Welcome back.
• 1:39
  I'm Melinda Emerson, the small biz lady, your host.
• 1:41
  I am so excited to be talking with my next guest Her name is Michelle Phillips.
• 1:47
  And Michelle is a veteran entrepreneur, a seasoned business adviser with over 20 years of
• 1:53
  experience.
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  He knows the excitement and challenges that come with leading a team and business, both
• 1:59
  large and small.
• 2:00
  Michelle succeeded in an industry where 80% of businesses fail, not only did she grow, but
• 2:07
  successfully exited her company after 8 years.
• 2:10
  She scaled her business to 7 figures with 14 to 17 percent profit year over year.
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  Beyond her experience as an entrepreneur, Michelle also excels in sales and project
• 2:21
  management also excelled in sales and project management in the corporate banking world.
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  For more information about her, she you can go to cultivate advisors dotcom.
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  Michelle, welcome to the small British App podcast.
• 2:35
  My apologies.
• 2:36
  Hello, Melinda.
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  Thank you for having me.
• 2:38
  Oh, we're so happy to have you here, you know, and in the interest of full disclosure, I will
• 2:42
  also say that Michelle is my business coach.
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  So I am a firm believer that every coach needs a coach, but we're gonna have a formal
• 2:50
  conversation about this.
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  Right?
• 2:52
  So, Michelle, tell us how did you become an entrepreneur?
• 2:56
  You know, it all started at the tender age of eight when my sister and I set up our first
• 3:00
  lemonade stand.
• 3:01
  Right?
• 3:02
  So and from there, My aunts and uncles always owned restaurants, and we worked there.
• 3:08
  So we were really exposed to that environment.
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  I found though that I really attracted to the financial world, and I ended up actually
• 3:15
  gravitating into banking mortgage banking.
• 3:18
  So I was there for probably Almost 20 years, obviously, started very young Melinda, as you
• 3:24
  know.
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  And, and then I moved all over the country with with I was with Chase at the time.
• 3:29
  And I enjoyed it, but it was around 2010.
• 3:33
  And, those of you who lived through that time, remember it was not really a great time to be
• 3:37
  in mortgage banking, and you just worked really hard, and it was really frustrating.
• 3:42
  And I thought to myself, you kinda landed in mortgage.
• 3:45
  Is this really what you wanna do?
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  Is this where you wanna be?
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  And I realized that, gosh, it wasn't.
• 3:52
  I wanted to create something.
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  I wanted to do something different.
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  Now don't get me wrong.
• 3:57
  There are lots of times I have really tried to question the the logic of leaving that cushy
• 4:02
  lucrative corporate job, but I did.
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  I want I was living in Texas.
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  I wanted to live in San Diego, so I moved.
• 4:09
  And I bought an existing hair salon and day spa.
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  And I realized after doing that, what the reason I bought that is because I was a really
• 4:17
  good client, and I thought that would make me a really good owner.
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  And so your other guests are probably saying no shell that doesn't translate, and you know what
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  it does.
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  So I spent the 1st about 18 months learning all the things that I didn't even know that I
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  didn't know.
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  And in the end, though, we rallied together.
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  I reimagined it.
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  We rebranded it.
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  And I had a business that was really an amazing space for our employees and for our clients,
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  and I was just really super proud of what we built.
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  Wonderful.
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  So You exited your business, then what?
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  Well, you know, I would touch some of it on Berry said.
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  So, you know, you think about exiting your business, and that requires a
• 4:55
  lot of planning.
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  So it
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  was a good 3 years before I ever even sold the business that I started thinking about what do
• 5:02
  I need to do to get there?
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  And in my business in particular, it's a lot of goodwill.
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  Right?
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  It's there's not contracts to sell and there's not a lot of recurring revenue.
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  So I had to really focus on getting that revenue as high as I could, getting that
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  profitability up there.
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  And then focus on those intangibles around processes and systems.
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  So that's where my corporate experience really came into play.
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  I use that to to systemize things down to how we set up our relaxation area on holidays.
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  Right?
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  We were really super focused about training, onboarding, how things were handled from a
• 5:37
  customer perspective.
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  And I was able with that to turn that business into an asset that I was able to sell.
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  So then I I sold that business.
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  I took about 6 months off.
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  My daughter ever so conveniently had a little baby during that time, so I was able to just
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  hang out
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  and play with the precious little baby boy.
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  Love it.
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  Love it.
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  So you are now a business adviser.
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  Tell me what is the key difference between what you would call a business advisory and maybe,
• 6:03
  like, a business coach per se.
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  Sure.
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  I will tell you that we really focus it focus on being more of a partner, a non equity
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  partner.
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  Right?
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  So a lot of times in coaching, it's sometimes it's only mindset.
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  Sometimes it's a plan that they want you to follow very specifically.
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  Whereas what we do at Cultivate and what I in particular do is a very tailored advising
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  session.
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  So we get in first with that business owner Let's talk about what your goals are.
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  Let's get some real clarity around those plans around that vision, and then let's break that
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  down.
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  If we're gonna hit that, what are the things that we really need to look at and measure?
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  How are we gonna do that?
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  And then how do we create some some tracking?
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  Right?
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  Do you talked a lot about tracking?
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  How are we gonna track our success against those metrics?
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  So so that's, to me, it is all about that And then that implementation.
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  Right?
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  So it's really that getting clear clarity, partnering in terms of what actions do we need
• 7:01
  to take, and then holding some tension and moving forward on those items.
• 7:04
  So what would you say are the 3 biggest challenges that you see move often with your
• 7:09
  with your client?
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  It almost always starts with financials.
• 7:12
  Right.
• 7:13
  So they, in some cases, they're managing their business from their checkbook.
• 7:17
  You know, Dee talked about this.
• 7:18
  People are are afraid of money.
• 7:20
  So they they they got in this business sometimes to make money, but then the money
• 7:24
  sort of brightens them.
• 7:25
  And they they don't wanna get in there and really understand You know, what what are your
• 7:30
  financials?
• 7:30
  How do you make money?
• 7:32
  What is your profit and loss?
• 7:33
  You know, they're often under underpriced, undervalued, some and they're not making
• 7:38
  decisions from those financial from that financial data.
• 7:42
  Right?
• 7:42
  So that's really a big one.
• 7:44
  Secondly, they don't have a strong plan.
• 7:46
  Right?
• 7:47
  So understand the clarity of vision and then what are those top 3 to 5 things that you need
• 7:52
  to do?
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  So If you don't have a top, a really clear plan, you tend to spread yourself too thin, and
• 7:59
  they are kind of so busy working in their business.
• 8:03
  Right, that they're not focused on the things that they really need to focus on to achieve
• 8:06
  their goals.
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  And then for the third thing I would say, like, I really thought about this, but I think it's a
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  little bit of loneliness Running a business is hard.
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  And people who are not entrepreneurs don't necessarily realize the pressures of that.
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  And so I think when a business owner comes to us, sometimes they are just so relieved and so
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  thankful to be able to talk about what's happening with them and their business in a way
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  where they're they're not judged and they can and they could just have an a really open
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  honest conversation.
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  So what do you think is the true value of a business adviser?
• 8:43
  Gosh.
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  We have so much to offer Melinda, but I I really think it's back to that being a partner
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  in the business.
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  Right?
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  Getting clarity.
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  I know I've said that a couple times, but so many business owners, when you ask them that
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  question, we do a free advising session.
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  And when I say, Where do you want this business to be?
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  What is it that you're working toward?
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  There's often a really long pause there, right, where they're really trying to put those
• 9:06
  thoughts together.
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  So getting that clarity and putting that plan together and then prioritizing it so that you
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  know what you need to do next to implement, and then we provide accountability and we hold
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  tension.
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  And and I also think that we we have tools that have already been used.
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  Right?
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  We can really help them, focus on whatever their goals are.
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  Is that revenue?
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  Is it profit?
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  Is it work life balance?
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  Is it hiring employees?
• 9:30
  Is it learning leadership?
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  You know, we provide value in the area that they most need it.
• 9:35
  Right.
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  So you don't have a a formulaic kind of, you know, cookie cutter, like, every business you
• 9:41
  come in and you put them through the gauntlet.
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  And this way, this way and this way.
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  You sort of basically, you're saying you tailor, make it to what they what they need or
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  what they're struggling with.
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  So Do you feel like a business adviser is really helpful to improve sort of like the
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  financial planning of the business?
• 10:01
  Absolutely.
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  I think that's one of the first and most critical areas that we focus on for for owners
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  and understanding what that logs term goal is.
• 10:09
  Right?
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  I mean, Barry talked about if you if you wanna sell that business or transition it, you've
• 10:14
  gotta be thinking about that from the beginning or at least 3 to 5 years out.
• 10:18
  So the way we focus on the financials is huge, and sometimes it's just some basic education
• 10:24
  around helping business owners get comfortable with that.
• 10:27
  Yeah.
• 10:27
  I mean, I think it's it's finances is hard.
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  You know, even if you're working with a coach, you know, the first time your coach asks you to
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  show their p and l, it's like, Wait a minute.
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  I can't show you that.
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  You know, I was like, I don't know you well enough yet.
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  Hold on.
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  You know, so I I think that there there has to be a a trust built up.
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  That's before people start sharing numbers.
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  Right?
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  You know, because I know for me, you know, when you you and I can attest to this.
• 10:53
  You know, we worked together for a long time before I was, Alright.
• 10:56
  Now I trust her enough to slide her some of this information, but I but I'm definitely was
• 11:00
  was close to the vest at first.
• 11:03
  And and often too because I think it might be because there might be some shame involved in
• 11:08
  not being super on top of stuff.
• 11:11
  Right, not being on top of accounts receivable or accounts payable or or sales pipeline.
• 11:17
  I mean, because because because once you start working off financials, the next thing you go
• 11:20
  to is sales process.
• 11:22
  Right?
• 11:22
  You know, so I think that these things, like, you know, once somebody starts pointing out,
• 11:27
  the big old gaps in your business, that doesn't feel too good.
• 11:32
  Right?
• 11:32
  It's so true.
• 11:33
  And we really try to remind business owners that that, you
• 11:36
  know, their zone of genius may not have been this financial area, and that's okay.
• 11:41
  That's why you get an advisor or someone to help you.
• 11:43
  Right?
• 11:44
  I can't do the whatever that they do, but this is the skill that I can bring them to help
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  them.
• 11:49
  And so there sometimes is that saying shame or that uncertainty or, gosh, I don't even know.
• 11:54
  I just picked this number.
• 11:55
  Right?
• 11:55
  Sometimes when you ask people how they came with their pricing.
• 11:58
  So, helping them helping them understand that it's that's okay.
• 12:02
  It's okay to start that way.
• 12:04
  It's not okay to end that way.
• 12:05
  Right?
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  Let's let's learn it.
• 12:07
  Yeah.
• 12:07
  Yeah.
• 12:08
  No.
• 12:08
  No.
• 12:09
  I I hear you talking.
• 12:10
  I I can still hear you talking.
• 12:11
  Right?
• 12:11
  So, so, so, I'm gonna turn the tables on you a little bit and be like, if I needed to hire a
• 12:19
  business adviser, what are some of the qualities that I should look for because I
• 12:24
  think part of what my concern is about this is somehow during the pandemic, everybody became a
• 12:29
  business coach.
• 12:30
  Did you notice that?
• 12:31
  Like You really did.
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  All these people all over Instagram and YouTube.
• 12:36
  Everybody is a coach now.
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  And I'm like, you've been in business for 2 minutes and they've never paid payroll.
• 12:42
  Who are you coaching?
• 12:43
  You're right here, but but that's just me.
• 12:45
  But I I mean, but I wanna know if if I'm considering, you know, taking this step, making
• 12:52
  this investment, because it's a significant, you know, it's a five figure, six figure
• 12:56
  investment sometimes.
• 12:57
  What what kinds of things should I be looking for?
• 13:00
  Well, you you nailed the first one.
• 13:01
  Right?
• 13:02
  I really think you should work with somebody that has entrepreneurial experience.
• 13:05
  So I think that that's just critical.
• 13:07
  If they have it, run their own business?
• 13:09
  How are they gonna help you and and understand you?
• 13:11
  So so I'm a little biased, but that is one of the very first things.
• 13:16
  Secondly, You know, do you gel with this person?
• 13:19
  Do you like them?
• 13:20
  Do you communicate well?
• 13:21
  You know, we do a free 2 hour business advising session so that we can both test that.
• 13:26
  Right?
• 13:26
  I'm gonna be spending a lot of time with this person.
• 13:28
  If we don't connect, if we don't kind of align, then that's gonna become tedium, and you're not
• 13:34
  gonna get the best results.
• 13:35
  And I think the same thing goes for the client.
• 13:37
  So do you really gel with that person?
• 13:39
  Are they a good listener?
• 13:41
  Sometimes coaches and and advisors just talk at you.
• 13:44
  So they need to be a good listener.
• 13:46
  They need to understand what's important to you.
• 13:48
  And then they need to be able to convince you that they can help you achieve that.
• 13:53
  Right?
• 13:53
  And then I I also think you know, tools?
• 13:56
  Do they have ready made tools and things that they can share with you, or are they gonna be
• 14:00
  creating everything ad hoc?
• 14:02
  So So I think that's really critical.
• 14:04
  And then lastly, I will say, what's their support system?
• 14:07
  I'm really lucky at Cultivate.
• 14:08
  There are 45 other amazing advisors that I work with.
• 14:12
  So if I come up against a problem or if I'm looking for a specialist in some area or
• 14:16
  sometimes I've just been working with a client for a while, and I want some fresh air in the
• 14:20
  room.
• 14:20
  Right?
• 14:21
  We can we can call on those other advisors.
• 14:23
  So I think those kinds of things are really critical when you think about, who you want to
• 14:28
  work with to grow your business.
• 14:30
  Well, how long should you work with a business adviser or coach?
• 14:33
  I mean, sometimes I've ever heard people say, oh, these people sign me to a 2 year coaching
• 14:37
  agreement.
• 14:37
  I'm thinking Yikes.
• 14:39
  Like, that just seem like that makes sense, but it depends on how, you know, complex the
• 14:45
  business is.
• 14:45
  But I'm talking about people with little businesses getting signed to these, like, crazy
• 14:49
  coaching agreements.
• 14:50
  So I'm just wondering about, you know, the typical timeline you see from the client you
• 14:55
  work with?
• 14:55
  Like, how long do you typically work with people?
• 14:57
  So on average, and they're you're right.
• 14:59
  There's no right amount of time.
• 15:01
  Right?
• 15:02
  On average, it's gonna be anywhere from about 9 months minimum to we've had clients that we've
• 15:07
  been with for more than 5 years.
• 15:09
  When we do an initial contract, Melinda, we do ask for 6 months up front and then we moved a
• 15:14
  month to month.
• 15:15
  And we do that because change takes time.
• 15:17
  And so we don't want people to just think just because you hired somebody, you know, boom,
• 15:22
  everything is gonna magically happen the very next day.
• 15:25
  There's a lot of foundational work that needs to be done.
• 15:28
  So minimum, I think you're gonna need 6 to 9 months.
• 15:31
  And then as your business grows, your needs change.
• 15:34
  So if you've picked an advisor that can grow with you, then that relationship could continue
• 15:40
  on 3 5 10 years.
• 15:42
  Alright.
• 15:43
  In Berry's case, 30 years.
• 15:44
  Right?
• 15:45
  30 years plus.
• 15:46
  So so tell me something.
• 15:48
  What is the best business advice that you have ever been given.
• 15:53
  Josh, your, the other two guests just kinda blew me away with there.
• 15:56
  So mine's a little Mine's a little simpler, but when I bought this company, my first business,
• 16:01
  the existing owner said to me, the people who pay the most complained the least.
• 16:06
  So don't be tempted to do discounts or undervalue yourself.
• 16:11
  And at first, I was a little, you know, he's nervous.
• 16:14
  I was a little perplexed by that, but it played out to be so true, especially with my business
• 16:19
  that was a commodity and, you know, massage envies and group ons and all sorts of things
• 16:23
  coming up that that if you're Not careful, put you
• 16:27
  in a position of of trading on on on cash only, not value.
• 16:31
  So, yes, so for me, that was just really it really impacted the way I approached my
• 16:36
  business.
• 16:37
  Well, that sounds like awfully good advice.
• 16:39
  Well, I'm so glad.
• 16:42
  Now The mission of the small bitch tech podcast is to end small business failure, and I will
• 16:47
  leave you with this.
• 16:48
  You never lose in business either you win or you learn.
• 16:53
  God bless everybody.
• 16:54
  Thank you.
• 16:58
  Have you been trying to figure out how to turn your side hustle into your main hustle.
• 17:02
  Well, listen, this summer, I'm gonna be teaching the become your own boss 10 week
• 17:07
  online course live starting June 20th.
• 17:11
  So every Tuesday night, you're gonna be with me, and I'm gonna teach you everything you need
• 17:15
  to know about how to start and how to run a successful small business.
• 17:19
  And I'm America's number 1 small business expert, so that's really saying something.
• 17:23
  Register today.
• 17:34
  Thanks for listening to the Small Biz chat podcast with Melinda Emerson.
• 17:38
  Subscribe to this podcast, wherever you listen to podcasts, and join us next Wednesday for
• 17:43
  more fantastic information and interviews.
• 17:46
  You can find more sources and small business success strategies by visiting Melinda's
• 17:51
  website, 6 seen as your own boss.com.
• 17:54
  Thanks again for listening, and we'll see you next week.