Revenue Journal®

As consumers, we are encouraged to enjoy life, relax, have fun, hang out with our buddies and laugh, drink, eat, travel, be entertained, look for ways to make things easier, more efficient, faster and more cool. As marketers and salespeople, we make claims that our products and services will help people do these things.

Given that the average consumer is exposed to thousands of these messages a week, consumers are immersed in an endless sea of messages encouraging them to "do your thing," "just do it," and do "whatever turns you on." There's also an overriding theme, that you are really, really important, that it's all about "you."

The problem is, in our society, money is the vehicle we all use to pay for those indulgences. We have to make money before we can spend it on our ever-so-special selves.

You manage others. What do they depend on you for - more than anything else?

The truth.

You sell a product or a service. What do your customers depend on you for, more than anything else?

Yep. The truth.

Nothing is more valued in the business world, nothing matters as much, as the truth.

Employees eat it up when it's given to them, and, when it isn't, conspire amongst themselves to find out what it is.

Customers demand it, and stomp out (warning others to stay away), if they don't get it.

A depression is one of the worst things that can happen to the economy - it affects just about everyone, in every industry, in every country. Recessions, on the other hand, tend to hit a particular group of industries the hardest, with lesser "ripple effects" on others.

What's happening now, as everyone knows, is that lending institutions have stopped lending with wild abandon. The first people to be effected by this are those in the real estate business - real estate agents, lawyers, title companies, and all the others who gain income from real estate activity. Their income - and their spending - decreases. Many decide to leave the business. There is a personnel shift from the real estate industry to other industries, where the money is still flowing. Until they are securely ensconced in their new positions, and have recovered financially, they are still cautious about their spending.

Recessions affect other industries, too, because of the recessionary drumbeat. The news media is always prowling around looking for the latest disaster. As you know, right now they're writing stories about the "subprime lending crisis," profiling people who have been affected. This steady diet of bad economic news affects everyone. Anyone who views their house as their main economic security will be more cautious about their spending. They will take longer to make decisions. They will want more information before making a commitment. They will more carefully compare one option against another, and will be more likely to postpone major spending decisions.

Consumer spending will slow, and so will business-to-business spending. People who run businesses are consumers themselves, and they follow economic news closely. They become more cautious about their spending, too. Their employees see the boss pulling back, and they tell their families, "Things are getting tight at work. Better wait on buying that new car."

This classic, recessionary mass psychology will affect your own outlook, the outlook of your employees, and your revenue stream.

So why am I saying that recessions can be good for you? Because they provide a unique opportunity for improvement.

When someone in business says, "He's a micromanager," it's not a compliment. They say, "He's a control freak," "he doesn't empower people," and "he's obsessed with details." The common wisdom is that micromanagers are not anywhere near as successful as...

It doesn't matter what type of business you run. It doesn't matter how small or large your business is. It doesn't matter what you used to do, before you became the leader of your company. What matters - the only thing that really matters, day after day, year after year - is how well you manage yourself.

Why is it so important? Because true leaders - the kind that other people actually want to follow - have mastered self-management. They instill confidence. They are calm, reasonable, and wise. They can consistently be depended upon to do the right thing. They don't fly off the handle at the smallest thing - or anything, for that matter. They don't obsess about one aspect of their business at the expense of other, just-as-important aspects.

John Smith is a typical customer in the market for a fairly high-end product, one that requires a salesperson to finalize the deal. He has done his research on the web - he's spent hours, in fact, researching. Now he has a couple of questions for the salesperson to answer. Otherwise, he is ready to buy. He decides that the best way to get the answers he needs is to go to an industry tradeshow.

I've been interviewing "John Smiths" for a client, and one of them described what happened next, using these words:

"I had to defend my wallet and my family against The Pitch."

He was there with his wife, and as he was trying to get answers to his questions, the salesperson kept trying to close the sale.

From the customer's perspective, this is irritating. Sleazy. Totally inappropriate. You're just asking someone questions, and the whole time, they keep trying to sneak around to the side of you and grab your wallet out of your back pocket.

There are two types of situations where, in your business life, you are faced with a decision that tests your integrity: the big decision situation, and the little decision situation. We'll look at these one at a time, but before we do, let's look at the root of integrity: our conscience.

Now, there are a lot of people who say that there is no "right" and no "wrong." But I believe that most of us - with rare, pathological exceptions - have a conscience. That conscience is that little ping we get when we are faced with a decision. We intuitively know what the right thing is, and what the wrong thing is. What we decide to do after we get that internal message is the true test of our character.

What does this have to do with revenue? Everything.

It's so easy to rationalize. We are so eager to think of ourselves as successful, to have others think of us in as successful, and to want things to turn out a certain way, that we are willing to ignore all the signposts along the road and keep driving, full-speed, until we realize that we have driven right off the cliff and we are on our way down. Even then, we rationalize.

"Gee, this isn't so bad. I'm sure I'll survive."

When it comes to generating revenue, rationalization is one of your biggest enemies. It's especially common for entrepreneurs to ignore what their own customers are telling them. "Oh, they always say that," is a common response we get from the rationalizing entrepreneur or CEO. In other words, "I don't think this problem is worth worrying about, it's always been that way, and I'm still here."

Many rationalizers manage to limp along for years, in spite of themselves, when they're lucky enough to have a product that people actually need. But when things get tough, or the market shifts, or buyers become more skeptical, those rationalizers start to slide downwards. As they slip, they start to panic, and do all kinds of crazy things. They become deceptive and manipulative, desperately pulling vendors and customers down with them as they start to swirl down the drain.

As you probably already know, the most important aspect of time management is deciding where you will spend your attention.

It's difficult to practice good attention allocation because anyone with a need can interrupt you at any time, using a variety of methods to access you and hijack your attention.

One of the most famous, and still-relevant self-management tools is Stephen Covey's four-quadrant matrix for importance and urgency ("important/not important, urgent/not urgent").

We all know we spend far too much time on the urgent/not important tasks; and, if we are totally honest with ourselves, we also spend too much time in the "not important/not urgent" category.

Why?

There's a certain type of entrepreneur who becomes obsessed with a product idea, and sets up a business to sell it. It's always a guy (yes, for some reason, it's always a guy) who can never understand why "everyone can't see the wisdom of this idea" and why "someone can't give me the money to get this business off the ground."

I hear from these gentlemen because of my blog and book, and my consulting company. The most recent person who contacted me said he had also contacted a famous "marketing guru" company, but that "they won't give me the time of day."

This most recent person says that he lost a great deal of money trying to sell websites for a website creation franchise operation. He is now in debt, and is trying to get out of debt selling a gasoline additive. He tells me that he wants marketing help. But when I make specific suggestions, he responds to my email with more detail about how he got into debt and how he is a nice person who was raised to treat people with respect and courtesy, and how he just needs marketing help. In other words, he asks for advice, advice is given, and then he ignores it and asks for advice or sympathy.

There are countless articles and books on what you should do as you attempt to grow your business. But very little advice focuses on the aspect of your daily business life that has the most effect on your company's success: your character.

For good or ill, your character affects everything you do every day. It affects every decision you make - or fail to make. It determines how your employees perceive your ability to lead the company - and their enthusiasm or discouragement. It affects how much your customers trust you and how much your competitors fear you - or not.

As we go through life, we develop habits of character.