- Hi gang, you've just found the channel
that helps you grow your business.
I'm James Sinclair and if you wanna grow your business,
make sure you subscribe to the channel
and hit that notification bell and one of those
if you like this sort of thing.
So let me get into this.
I really wanna help you grow your business
and one of the fastest ways to grow
your business is getting business management.
I made another video on YouTube
about six months ago going into five key
areas of business management.
I wanna go into six more different key areas.
So if you'd like this video,
make sure you search for that video.
Maybe we can put a link to it Chad,
can be as I'm speaking.
- [Chad] Yeah, it comes up right there at the top.
- Comes up right there. - [Chad] Right there.
- If you click here,
you'll be able to go and see the other one.
- There we go, Chad's our videographer
at the background has made that possey.
I wanna talk about six key areas
of business management that I know
will help grow your business.
I've used it to grow my business
into what is now multimillion pound revenue business.
I wanna really help you so that you
can do the same thing as us.
But rule number one is understanding
that business management is a process
of leadership and management.
There is a key difference between
leadership and management.
The leadership part, the entrepreneurial part
is very different to the micro management management part.
Some businesses, most businesses
in my belief need micromanaging.
There's a few businesses that don't need micromanaging,
that have amazing experts running them.
So you might think, well,
a doctor doesn't need micromanaging.
A solicitor doesn't need micromanaging,
accountant doesn't need micromanaging,
an architect doesn't mean micromanaging.
But those experts that I've mentioned there
have had years and in some case,
more than 10 years of training
to get to that position where they can manage themselves.
In most businesses, in most scenarios,
companies just don't have 10 years
worth of training like a solicitor
or barrister or a doctor or an architect has.
They haven't got that experience.
So therefore most people need micromanaging.
But nearly every successful organization
that you'll come across,
whether it be a business organization,
a charity, the army or a school,
there's a process of fantastic management
and fantastic leadership, both work unison together.
You think about school,
the head teachers doing the leadership role,
the teachers are doing the management role
and that is to me what makes an amazing organization.
Me as an entrepreneur, I'm not very good at managing people.
I can't stand it.
I'm not the best manager that you've ever met,
but I could be the best manager for 20 to 30 seconds
while I G the team up
but then when I leave the organization,
I understand that management
needs to be there to do the followup.
The day to day, the minute to minute,
the hour to hour, and that has been the biggest change
in my career is understanding that you need
entrepreneurship and you need management.
My big phrase is E plus M equals S.
That's entrepreneurship plus management equals success.
That's what great organizations have.
You don't want too many leaders.
What you want is fantastic management.
It's the job of the owner of the business
to go out and find the best management
that they can possibly find.
The entrepreneur, the leadership is doing the vision,
the management's doing the mission.
Let me give you another example,
the entrepreneur, the leadership
is doing the war plan and management
are coming up with the battle plan.
Now what you have in most organizations
is they have too many battle plans
without a war plan or one war plan
but no general and the sergeants and captains
to carry out the battle plans
and actually make stuff happen.
That's what managers do.
They make stuff happen.
They're implementation masters.
Entrepreneurs and leadership
are coming up with this vision
that managers are attracted to and once
you understand that you've got business management.
In a nutshell that is the foundations
is understanding the difference
between leadership and management.
Leadership, vision, management,
day to day, get stuff done.
And then it comes around to understanding
systems and processes.
There's no such thing as bad staff gang.
What there is is a such thing as bad management.
I don't know if you can remember
at school when you're a kid.
You know when you enter secondary school,
you've got 30 kids in a class
and they move from subject to subject throughout the day.
The thing that changes is the teachers,
and I don't know if you can remember,
cast your mind back, flatter through your memories,
shuffle through those memories and go back to school.
And if you remember your same classmates
would go to different teachers
and would behave in a different way.
So the same set of students behave
in a different way because of the teacher.
This is management one-on-one people.
It's because the quality of that teacher
can make the students perform better.
And that is the same for a business.
If a set of staff are being gossipy, unruly,
not getting stuff done, it's not the staff's fault,
it's the poor management's fault,
it's the poor leadership's fault.
That's what's got to change.
I've seen this countless times in my business.
We can get better customer service
with the same set staff depending on who
is managing the shift or managing the section.
The quality of management gets more done,
makes you more profitable.
So you need to invest time in managing your managers
to be the best possible manager for your business.
If you're small now and you haven't got management,
start thinking about what your avatar
of management looks like in the future.
Who's your best possible management?
Start playing fantasy football with yourself
but with your management team,
with your leadership team within your organization.
Because the stronger your management,
the stronger your team members will be.
Yet remember this, there's no such thing as bad staff,
just bad management and leadership.
Here's the next thing, if you're not training
your people then you're not gaining from your people.
This is so important, the more you train your people,
the better that you're gonna get out of them.
How often should you be training them?
This is one of the big questions asked to me.
People private message me on Instagram, on Linkedin.
How often should I be training my people James?
Every single day you should be training them.
What would happen if you invested just 20 minutes,
that's all we need to do.
Just 20 minutes every single day in training your team.
Tell me, you might think, well,
I'm not a natural born trainer.
Well, you've got to get better at training
because the better you train your people,
the more profitable your people are gonna be
and that's going to affect the bottom line of your business.
Great businesses like McDonald's,
they train people so well.
Disney, they train people so well.
Apple, they train people so well.
They think, they breathe,
they create a set of systems and processes
that the people use and then they train
them around that set of systems
and processes and then document it.
They have an operations bible.
They write everything down.
There are so many hosting websites now
where you can do this no matter how small your business is,
even if you just employ one, two or three people.
Having an operation systems manual
and training that operation systems manual
will absolutely saw your business to success.
If you are not training your people,
you are not gaining from your people
and it needs to be 20 minutes a day.
Every day, there needs to be some sort of training.
See, the way human beings work,
what makes them happy is progress.
That is what makes them happy.
If someone's in a role and you're managing them
and you're not progressing them,
they're gonna lose motivation within the organization.
People want to see progress.
They have to see progress.
So what are you doing to progress your people?
It's not money, it's not money, it's not money at all.
Money is like a self fulfilling feeling.
Maybe you win 100,000 pounds,
you're spend 100,000 pounds
but actually progress is what's gonna happen
to keep you motivated to keep you in a company.
I know loads of people that have left companies
where they were earning more money
and they've moved to another company
because they feel like that's a progression
in their life and this is the big misconception gang.
What are you doing to progress your people?
If you wanna motivate your people,
you've got to educate your people.
Let me say that again.
You wanna motivate people?
You've got to educate them.
Training them could be buying them books
and say, look, hey, read this book.
How can we implement that into this business?
Sending them on seminars, buying them books,
tell them what podcasts to read,
what YouTube videos to watch.
Educate your people and you're gonna
have a much better business that's managed better.
How do we do this?
Well, my next point that you should
always be doing in your business
is audit, review and improve.
You need to get some external auditing in your business.
Why do I like regulated businesses?
I own a chain of day nurseries
and we have a regulator called Ofsted
which is government run and they come
and audit the business
and they give you an Ofsted inspection.
We're a regulated business.
We know we're gonna be audited
and we work to a set of frameworks.
We work to a set of systems and processes.
There's a reason that they now freeze
unregulated businesses and want to be funded
by banks because bank's not regulated business
where they know there's a set systems
and processes in place that's regulated by a regulated body.
Yeah, you need to audit your business
and think of it, how can we turn it
into a regulated business even if it's not?
Even if you own a restaurant,
which is definitely not a regulated business,
you need to create an audit that an external source,
maybe a mystery shopper or a consultancy firm
and you can do this very chaste, not thousands of bounds.
You can get a mystery shopper in for a hundred quid
to come and audit your business.
Then you've got that audit
and you can review it and work at how you can improve it.
You do this on a consistent basis.
Now we have area managers that go in and audit.
We have Ofsted that audit our day nurseries.
Our leisure businesses are audited
by our senior management team.
Auditing, we're reviewing and we're improving.
What process have you got for audit review
and improve in your business?
What external auditing, not what you think,
what external have you got in your business?
Is one of the fastest ways to manage your business better.
Some big chains will have a mystery shoppers.
I mean there's a well known,
I don't wanna say the name of them
but there's a well known fast food chain
that you will definitely have heard
of that has at least three mystery shops a week.
That's three audits a week from an external source
per venue per location that goes in an audit
so the management can review
and they can improve and do you know what people
up their game when they know it's happening?
Number six is you wanna create
a SWOT analysis and a dashboard.
So SWOT stands for strengths, weaknesses,
and opportunities and threats in a business.
If you really wanna manage a business
then that's what you need to do.
Identify your strengths on a monthly basis,
identify your weaknesses on a monthly basis,
identify the opportunities,
what sounds you can bring in what businesses
you can buy and identify your threats
and make sure you create a monthly meeting
and go through the SWOT analysis,
strengths, weaknesses, opportunities and threats.
And lastly, what you need is a really simple dashboard.
Here's mine, I'm just doing it quickly
'cause I don't want you to see the numbers.
I do it again, one, two, three
and this has my labor percentage on it.
It has my average customer value on it,
it has my sales customer numbers
and my monthly profit and loss.
I have this in a dashboard on one piece of paper
so I can see if the each line of the business.
That's called your monthly dashboard.
You wanna have it really simple
so that anyone can understand.
Think about this, KISS, Keep It Simple Stupid.
A nice, simple, stupid dashboard
that you completely go into it to understand
the essential numbers in your business.
Now for me, that's my three KPI.
Rule number one, average customer value.
Number two, it's your labor to turnover ratio,
so what labor you spending compared to your turnover
and you need to have a target percentage for that.
If you own retail, it's 13%,
if you own day nurseries, it's 50%.
Find out what it is for your industry standard
and have that on a dashboard.
And lastly, tracking your monthly profit and loss.
What's the profit loss on a monthly basis?
Never rely on annual set of accounts,
you wanna do management accounts,
profit and loss on a monthly basis.
Okay guys, quite a heavy video
compared to what we usually do
but let me know what you think.
Comment below, is this something that helps you?
Would you like us to make more videos like this
or would you like us to make other types of videos?
Hit in the comments below so that we can review and improve.
You can be at auditors.
This has been a business management video from me,
James Sinclair helping you grow your business.
Make sure you subscribe, like and do all that stuff
'cause that really helps the YouTube algorithm.
Thanks for watching guys.
Don't forget you can get my books
and all that stuff on www.jamessinclair.net.
See you real soon, bye bye.
Hope you enjoyed that video to help grow your business.
It gets better because you can watch
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