Business in Action Issue 06

business

ISSUE 06

Compliments of 4xi Global Consulting & Solutions

IN ACTION

THE ART OF CONVERSATION Master your communication skills in business PG. 14

THE BUSINESS OF BLACKSMITHING

Handcraftsmanship meets a modern market PG. 18

INTRINSIC VS. EXTRINSIC MOTIVATION

Discover what motivates you PG. 42

ISSUE 6 COVER PRICE $6.99

4xi Global Consulting & Solutions Email: hello@4xiconsulting.com

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As leaders in business, constant self-reflection is critical to ensure that we and our businesses are always self-aware of where our strengths and our weaknesses lie. It's about staying ahead of the game, optimizing our chances of success, and reducing the headwinds we can sometimes face.

At 4xi, we believe in the importance of this process throughout the business life cycle, from our TRUE NORTH© methodology, to win better, retain better business. Our MarketMatch© approach to identifying Ideal Client profiles and identifying strategic partnership opportunities where we not only survive but thrive is an important formula of success.

There are plenty of businesses that do customer service well, and we all know their names because customer-service-driven businesses quickly rise to the top of their industries.

Through Evolving Experiences© we focus on the Human Experience of customers, consumers, and employees and how we can drive effective attraction strategies, engagement, and elevate all our stakeholders to being advocates, ambassadors, even evangelists of our brands.

In this issue, learn why you need to put customer service at the forefront of everything you do if you want your organization to be the next Disney, Nike, or Apple.

We do hope you enjoy this latest issue of Business in Action, and we look forward to connecting again soon.

Simon Elliot, Barbara Boden Managing Partners and Co-Founders

4xi Global Consulting & Solutions Email: hello@4xiconsulting.com www.4xiconsulting.com

contents 18 The Business of

ISSUE 06

[ SPOTLIGHT ]

Blacksmithing

A craftsman shares his business’s trial-by-fire success.

ENTREPRENEUR

3 | The Benefits of Toastmasters International Learn how this organization can help you become a better leader.

ENTREPRENEUR

4 | The Power of Resilience A pair of professionals share how they overcame serious challenges.

SALES

8 | Avoid These Common Sales Mistakes There are six reasons why a sale may fail and your client list isn’t growing.

business IN ACTION

PUBLISHER

Chief Executive Officer Steven Acree publisher@remindermedia.com EXECUTIVE SALES

SALES

12 | How to Excel at Customer Service

14 | Mastering Communication in Business

You can keep your clients happy and create repeat business with these tips.

Understanding these personality types can help you become a more effective communicator.

President Luke Acree Chief Marketing Officer Joshua Stike Chief Operating Officer Michael Graziola MARKETING

Director of Marketing Dan Acree Director of Creative Services Kristin Sweeney Director of Content Jessica Fitzpatrick marketing@remindermedia.com EDITORIAL

Editorial Manager Alexa Bricker Senior Editor Matthew Brady Senior Layout Designer Elisa Giordano Junior Content Writer Allison Gomes Content Writers Lauren Kim, Bonnie Joffe, Andre Rios editorial@remindermedia.com LEADERSHIP

MARKETING

26 |Why You Need an HR Department

30 | The Ins and Outs of Affiliate Marketing

A human resources department will be critical to your company’s success as it grows.

Learn how this strategy can help generate more leads for your business and increase sales.

SALES AND CLIENT SUCCESS

Vice President of Client Success Ethan Acree Vice President of Operations Nicholas Bianco Vice President of Sales Michael Campanile hello@remindermedia.com OPERATIONS

Vice President of IT Thomas Setliff Director of Projects Kelsie Schmall Director of Business Intelligence Daniel Gallaway Director of Manufacturing Shannon Mosser Vice President of Finance Shana Lebofsky Director of HR John Keogh hr@remindermedia.com

FINANCE

PRODUCTIVITY

36 | Finding Your Competitive Advantage

42 | Discover Your Motivation Style

Here’s how to tap into your skills as a financial services professional to rise above the competition.

Find out what really motivates you and how motivation informs your business style.

Business in Action is published by ReminderMedia.

For more information about Business in Action, please visit us at www.remindermedia.com, email us at info@remindermedia.com, or call us at 866-458-4226.

All rights reserved.

NO PART OF THIS PUBLICATION MAY BE REPRODUCED WITHOUT THE EXPRESSED WRITTEN CONSENT OF THE PUBLISHER. This magazine is for information and entertainment purposes only; it is not an attempt to solicit business.

The contents of Business in Action are for editorial purposes only.

All photos and/or artwork in Business in Action are provided by Getty Images, and icons by Noun Project, unless noted.

ENTREPRENEUR

The Benefits of Toastmasters International

Toastmasters International is a global organization that helps business owners and entrepreneurs develop their communication, public speaking, and leadership skills. BY ALLISON GOMES OMMUNICATION PLAYS

one near them, and they typically have

to effectively express themselves in

a central role in the

around twenty members who meet

any situation. Some of the benefits

success of a company,

once a week for an hour. A prospective

members report include:

and, as a business owner, you must

member can join by simply visiting

communicate with your employees,

one of our more than 14,000 clubs

Improved public-speaking skills

investors, and consumers to help your

worldwide, where they can fill out an

and leadership skills

company grow. But communication is

application form and pay the $45

a skill that needs to be developed to fit

membership dues plus a $20 new

Working on networking in a small

with your business’s vision and mission.

member fee.

and supportive environment

become a more effective communicator

Why should leaders join?

Building self-confidence and

and leader is Toastmasters

Business owners and entrepreneurs

self-awareness

International. The organization’s

join Toastmasters to improve their

2022-2023 international president,

presentation skills and leadership skills

Practicing writing speeches and

Matt Kinsey, explains more about

and to network with other members

presenting in a group setting

Toastmasters and how a membership

who have similar interests and

can benefit you and your business.

backgrounds. In addition, more than

Gaining a competitive advantage

half of the 2021 Fortune 500 companies

in the workplace

One organization that can help you

What is Toastmasters International?

offer in-house Toastmasters clubs to

Toastmasters International is a

help build and improve their employees’

Whether you are a tenured manager,

nonprofit educational organization

communication, leadership, and public-

student, young professional, someone

that teaches public speaking and

speaking skills. Offering a corporate

looking to advance your career, or

leadership skills through a worldwide

club to employees is an attractive

someone hoping to make an impact in

network of clubs. Since 1924, we

and cost-effective way to grow and

your community, Toastmasters is the

have helped millions of people from

develop vital interpersonal skills in the

most efficient, supportive, enjoyable,

diverse backgrounds become more

workplace, such as critical thinking,

and affordable way of gaining great

confident speakers, communicators,

problem solving, and teamwork.

communication skills. n

and leaders.

Joining Toastmasters helps How does one sign up?

people achieve their personal and

Everything in Toastmasters revolves

professional goals by giving members

around the club. Most people can find

the skills and confidence they need

For more information, visit www.toastmasters.org.

businessinaction.com / 3

ENTREPRENEUR

The Power of Resilience A pair of business professionals illustrate how important resilience is to success. BY MATTHEW BRADY

T’S BEEN SAID that true character isn’t revealed in public but in private: in what you do and say when nobody’s watching. The same is true about good times and difficult ones. Anybody can be happy when things are going great, but it’s during tough times—when things are most dire—that strength and resilience are found.

Most business owners can relate to this. You likely know, either from personal experience or shared experiences, that a company’s struggles can be totally self-inflicted or random. The common thread is having a steely will to overcome them, as these two stories convey.

4 / BUSINESS IN ACTION

Stephen Acree Stephen Acree, a real estate agent

life?” That gave me clarity. Also, in such

solved the problem. In all, it was only

and owner of Acree Brothers Realty in

situations, a victimhood mentality

three months of painful recovery, but at

Lynchburg, Virginia, was riding high

tends to creep in for everyone. What

the time it seemed to last forever.

with his new business when disaster

helped me overcome that was honesty.

struck: four of his agents, including

Instead of blaming the people who left

Today we’re kicking butt. We have

his top three, quit. He reveals how

or my circumstances, I just admitted

sixteen people on our team, and our

that lead to soul-searching and a new

that everything that happened was

vision is to impact as many agents’

business approach.

my fault.

lives and create as many six-figure

I had a great plan, or so I thought.

By doing so, I created the capability

vision statement has also trickled

I was determined to bring on fifty

of fixing the mistake—if I created the

down, as some agents are sending

agents to help change their lives and

problem, then I could find the solution.

referrals for other agents who should

live their dreams. But in 2021, it all

So what was the problem? We had

be on our team. Repeat and referral

blew up in my face.

become way too systems-heavy and

business is stressed; it’s where

producers as possible. This improved

had veered off on the wrong mission.

80 percent of your business is going

By the end of the year, four of our eight

Or, specifically, I had cast the wrong

to come from. Most of all, it’s about a

agents had moved on—and three were

vision for the team. I had gotten so

glass-half-full mindset, especially in

pretty heavy hitters. As a business

hyperfocused on that number—fifty

real estate: you should never look at

owner, there are plenty of times that

agents—that I left the team feeling like

what’s being taken out of your pocket

you just want to cry in the corner. In

it wasn’t about them but all about the

but always look at what’s going into

this case, we had recently purchased

mission of the fifty. So I focused on

your pocket and be open to learning—

our first commercial space, so we were

emphasizing what produces, and that

especially about yourself.

branching out a little bit on our own.

I had just gotten married. My wife kept telling me, “You’re working too much,” and yet my business was falling apart.

Everything pretty much crashed down at once. I can’t tell you how heavy the weight felt at that time; it was crushing.

Honestly, I wondered if it was worth the pain I was going through.

To fix things, I went back and asked

We have sixteen people on our team, and our vision is to impact as many agents’ lives and create as many six-figure producers as possible.”

myself, “What do you actually want in

businessinaction.com / 5

Matthew S. Newman Matthew S. Newman, a senior VP of

If you have brain cancer, you’re going to

financial services, four-time TEDx speaker,

die. I started being retrospective of my life

author, and motivational speaker, had

and thinking of my wife and kids. I started

a far different challenge: a brain cancer

cursing my brains out and was ready to fight!

diagnosis at thirty-nine. Here he discusses

That was it for my pity party. I immediately

what he learned about life and himself and

understood what true strength really was. It’s

how it applies to business relationships.

not how big your arms are or how much you

Take Action

can bench-press. It’s something deep down I got into a car accident in 2013. The police

in your belly, and you can find it, grab it, and

advised me to go to the hospital, but

own it. At that moment, I had no doubt I was

being a type A personality, I chose not to.

going to beat cancer.

However, after having eleven episodes of stroke-like occurrences in the following

As a financial wholesaler, I believe the job

weeks, I finally went to the hospital. At age

of the financial advisor is to be there when

thirty-nine, I was told I had brain cancer.

things are bad, to give people good news during difficult times, and to have a plan

They put me in my bed and hooked me up

in place in advance of the bad. It was time

to countless machines. I just started to cry.

to make sure I had everything in place. I

Brainstorm for ten to fifteen minutes to assess your resilience, and then jot down ideas for strengthening it to help better your company.

checked my will, POA, life insurance, and other financials. Nothing financially would

As a financial wholesaler, I believe the job of the financial advisor is to be there when things are bad, to give people good news during difficult times, and to have a plan in place in advance of the bad.”

6 / BUSINESS IN ACTION

I also learned that the greatest life lessons happen in the deepest and darkest of times. You’re given a gift: a new perspective to see things through. put my family in a difficult situation

darkest of times. You’re given a gift:

Similarly, business is all about

that I couldn’t fix. It’s not about just

a new perspective to see things

relationships. I’m not talking about

the investment; it’s about filling out

through. When we’re young, we all

superficial ones, such as giving out

basic legal documentation so you

have this Teflon feeling, as if nothing

tchotchkes. Through business, we all

can take on the battle in front of

can happen to us. Sometimes we need

have a unique opportunity to inspire

you and not leave behind a horrible

the challenge of life-altering events to

others, grow optimism, and connect

situation for the people you love the

see life through a new set of lenses.

deeply with people.

of would’ve/could’ve/should’ve for

It can also strengthen relationships. I

But as important as business

everyone. After all, cancer doesn’t care

would write emails about my newfound

relationships are, they pale in

about your long-term plans or what

perspective and appreciation of life

comparison to family. My father-

you’re doing tomorrow.

as a catharsis for the fear and anxiety

in-law, who was battling pancreatic

that accompany cancer. The feedback

cancer when I was diagnosed, was

I also learned that the greatest life

was unexpected and humbling, so

an inspiration to me. My wife was

lessons happen in the deepest and

I decided to write a book about my

(and still is) a rock—she took care

experience with brain cancer called

of me with brain cancer, her father

Starting at the Finish Line. I had no

with pancreatic cancer, and three

marketing plan, no ghostwriter, and

children under five. I am honored to

no publisher. I did it for me. And it

be her husband.

most. In short, it removes the angst

became a bestseller. It validates that people who have taken on unasked

Most of all, I appreciate living in

battles find support in knowing they’re

the moment and appreciating the

not alone on their journeys. Within

now. Our most valuable asset is our

weeks of the book coming out, I was

time. Whatever we waste we can’t

connecting with people around the

get back, and we only have a finite

world on social media.

amount of it. n

businessinaction.com / 7

SALES

Avoid These Common Sales Mistakes

Check your sales processes against this list of common pitfalls.

Could these six mistakes get between you and higher sales rates?

BY ANDRE RIOS

A sale is almost always a human-to-human

company’s goals?” Otherwise, you’re

process, even when your client is another

wasting payroll hours chasing dead ends.

business. This means that it can be difficult

2

to reduce sales assessments to mere data points. However, because sales are so personal, they are also prone to human error. Here are six important ways your

Not knowing the value proposition

sales team might be missing out on deals.

A crucial aspect of making a sale is

1

understanding just what you’re selling.

Not qualifying a prospect

products or your company’s history; you

This goes beyond knowing stats about must understand the value proposition

First, it’s important to remember that

behind what you’re selling. In fact, many

not every prospect who approaches

people are willing to overpay for products

your company is qualified. They may be

and services if they are emotionally

undereducated about your service areas,

attached to them or the value exceeds the

what exactly you sell, or even their own

price in their minds.

budgetary constraints.

Why exactly would a client be interested Early in the sales process, be sure that

in—and even need—what you sell? What

your salespeople are asking questions

common pain points does your company

that qualify prospects. For example, ask,

solve? Answering these questions is an

“Why don’t you tell me a bit about your

integral part of a good sales strategy.

8 / BUSINESS IN ACTION

For example, a magazine subscription

follow the same path every single time,

service should speak to health care

no matter what a sales flow chart may

professionals with the knowledge

indicate. Any experienced salesperson

that entertainment is their main value

will agree that few questions receive a

proposition. Patients need entertainment

solid “yes” or “no” answer.

to endure long lobby wait times, which their magazines can help address.

Relying on proven phrases, like a well-written value proposition, isn’t

3

necessarily detrimental. In fact, many

Reading a script

of phrases or points they need to hit

salespeople depend on a bulleted list

Early in the sales process, be sure that your salespeople are asking questions that qualify prospects.

in every call. However, nobody likes Many salespeople over-rely on a process

speaking to a robot. Remember that a

that has led them to success, like a script,

script is best utilized when memorized

and end up losing control of too many

and adapted to the prospect’s perceived

conversations. After all, no sales pitch will

communication style.

businessinaction.com / 9

Be sure to follow up for referrals. Referrals

4 Not following up

are far more likely to convert to clients than cold calls. In fact, a BNI.com survey found that 73 percent of companies polled get most of their business from networking

Almost half of all salespeople give up after

and referrals.

just one attempt at following up with a prospect. However, the sales consulting firm Marketing Donut also found that 80 percent of sales happen after the fifth

5 Not closing the deal

touchpoint. So many salespeople give up early, miss out on deals, and even become

Don’t hold back when it’s time to get a

discouraged. Your best salesperson is

credit card number. Salespeople can

often not the most talented but the

deliver an amazing pitch and still fail

most persistent.

to make a crucial leap: asking for the

10 / BUSINESS IN ACTION

Salespeople can deliver an amazing pitch and still fail to make a crucial leap: asking for the prospect’s business. from people they like, respect, and even find enjoyable to talk to. As sales coach Shiera O’Brien suggests, “If clients feel and believe they have a relationship with you, it’s because prospect’s business. If you have kept

the sales process. Outright declined

of your rapport-building skills. At

a prospect hooked long enough to

offers can also transition into a

that point, the trust begins to build

communicate the price of a product

referral request.

and they will commit time and effort

or service, assume that you have earned the right to request an order.

The worst that will happen is they

to you.”

6 Not communicating to the individual

will say no.

Remember that “no” isn’t the end

Also, stats don’t sell products or services as well as stories do.

Communicating with a compelling voice and even personal experience

of the road. Declined or delayed

Remember that productivity apps

helps prospects visualize themselves

offers give you the opportunity to

and automated phone lines don’t

in possession of your product or

uncover and handle any objections

accept deals; people do. Individuals

service, which is a hook any good

you may have missed throughout

are far more likely to accept deals

salesperson can tug on.

It’s unreasonable to expect every contact to end in a sale. However,

Take Action

Review these six pitfalls with your sales team. Where can you make improvements? Share this list with each salesperson so they can assess their techniques as well.

even if there is no such thing as a foolproof pitch, bear in mind that these six mistakes can terminate winnable deals. n

businessinaction.com / 11

SALES

How to Excel at Customer Service

Customer experience is the lifeblood of every business. Here’s how to ensure yours creates raving fans. BY LAUREN KIM

of Cinderella Castle, a “Disney cast member will come out of nowhere and take the photo for you,” he notes.

Think of ways to improve the experience for your customers.

For instance, if you are a real estate agent, buy pizza for your clients on move-in day or offer referrals for service professionals in the area. After the sale, use your CRM platform to nurture your relationships by sending emails or postcards with useful tips and information. Formica emails his customers a Magic Minute newsletter, in which he includes helpful strategies for his customers. “You just give, give, give, and then out of nowhere, you’ll get a phone call,” he says. “Many businesses put a lot of

OTHING DRIVES SUCCESS LIKE

time, money, and effort into trying to get the sale, but it becomes

a happy client. Customers who enjoy

a waste if they don’t provide an exceptional and memorable

communicating with your company are

customer experience.”

likely to keep doing business with you and buy your products and services, while those who don’t

Boost your company culture

may not return. The good news is that providing

Believe it or not, your business’s culture can have a big impact

exceptional customer service can be easy if you hire

on your customers’ happiness. If you have unhappy employees,

the right people, listen to your clients, and make a

that unhappiness can spill over into your customers’ experience.

consistent effort to make them happy.

You can tap into how your employees are feeling by encouraging

Improve the journey

them to use an anonymous suggestion box or asking them to participate in engagement surveys to gauge their thoughts

If your clients have a bad experience at any point, your relationship could be damaged permanently.

The key to pleasing your clients instead is mapping their customer service journey and investigating where you can improve their experience before, during, and after the sale. Finesse every touchpoint with your customers for a smooth and pleasant experience, and go the extra mile. For instance, at Walt Disney World in Orlando, Florida, every staff member, even a high-level one, is expected to pick up litter to keep the park clean, says John Formica, a former Disney executive and author of the book Making the Customer Experience Magical Now!. And if you stop to take a family photo in front

12 / BUSINESS IN ACTION

Many businesses put a lot of time, money, and effort into trying to get the sale, but it becomes a waste if they don’t provide an exceptional and memorable customer experience.” - JOHN FORMICA

and feelings. Also, when taking on new staff, try to hire personnel that already fit in with your company culture. “Most businesses hire people and then try to mold them to fit the culture during the onboarding process,” Formica explains. “It’s like taking a square peg and putting it in a round hole, and it doesn’t fit. You have to hire for culture.” To identify employees who are likely to embrace its company culture, Disney screens potential hires by showing them a training video that features their highly customer-centric focus, and some people leave before even filling out an application. “If you want your company to be customer-experience

add value to their experiences with

a complaint. So it’s a good idea to

oriented, you have to hire people who

your company, and distinguish you

build the most effective customer-

believe in that,” Formica says. Once

from your competition. Mull over

support infrastructure possible

you get the right employees, you

how you can reward customers for

and offer several ways for your

also must provide the best training

their loyalty—perhaps you can give

customers to reach out, whether it’s

to achieve the results you want.

them extra discounts, provide them

via email, social media, or phone.

You’ll get better results if you model

with exclusive access to new events

You should also willingly listen to

the behavior you want from your

or products, and celebrate their

your customers’ feedback, respond

employees and consistently hammer

birthdays with special perks. Just

to their inquiries promptly, and take

home your culture, vision, and goals.

about anyone would appreciate being

quick and active steps to remedy

an “insider” with a brand or company

mistakes or dissatisfaction. n

Reward loyalty Many companies that have

they love and respect.

Starbucks, and Sephora, have

Provide excellent customer support

customer-loyalty programs that

Even if you do everything you can

reward them with discounts and

to provide your customers with the

perks for repeat business. That’s

best possible experiences, there will

because such programs can make

be times when they will want to get

your customers feel recognized,

in touch for assistance or to voice

extremely loyal fans, such as Disney,

Take Action

Map your customers’ journey, and take steps to make it the best experience possible for them.

businessinaction.com / 13

SALES

Mastering Communication in Business Knowledge is power, and having self-awareness of other personality types can help you communicate better and be more persuasive in your business interactions.

BY BONNIE JOFFE

S A BUSINESS PROFESSIONAL, understanding your and others’ personality types can be a game changer when it comes to interacting with potential clients, business associates, peers, and management. As you begin to appreciate how communication styles can differ based on someone’s view of the world, it can help you connect with them in more meaningful ways.

Identifying personality types Many personality-assessment tests interpret individual traits based on what motivates people and influences the way they interact with others.

14 / BUSINESS IN ACTION

One such personality-profile model is DISC, an acronym for four primary personality traits: dominance, influence, steadiness, and conscientiousness. Taken by millions worldwide, this tool has helped business professionals, employers, and employees to improve communication and interactions with others, be more productive in the workplace, and maximize teamwork.

Some companies that utilize DISC (or DiSC, as publisher John Wiley and Sons spells it) suggest taking these three steps to help you quickly identify one’s personality type: observe, assess, and recognize (OAR).

1. Observe: Pay attention to how a person expresses themselves, what they enjoy talking about, and their tone of voice. Just as important, observing a person’s body language can tell you a lot about them.

2. Assess: When you have spent enough time in a person’s company, you should be able to assess behavioral patterns.

For example, are they reserved, speak in a quieter voice, and have minimal eye contact, or do they have an outgoing temperament, a louder voice, and hold eye contact?

businessinaction.com / 15

Creating a good impression when meeting someone for the first time can be challenging; being able to identify someone’s personality type to make an immediate connection is rarely easy.

3. Recognize: About 80 percent of people

However, with practice, a critical eye, and

reportedly have a blend of more than

attention to detail, you can start recognizing

one personality type, but one typically

various personality styles effectively.

tends to be stronger than the others.

Once you have a fairly good idea of

D: (Dominance)

someone’s personality, you can begin to

D personality types are very direct in their

identify their specific personality type.

communication style. They often state

Communication styles of different personalities

their opinions as facts and may interrupt a conversation when they’re bored or frustrated or if it’s not going the way they

Creating a good impression when

want it to. Also, when communicating

meeting someone for the first time can

with a D-trait personality, be clear

be challenging; being able to identify

and concise with your messaging—

someone’s personality type to make an

be prepared and organized with

immediate connection is rarely easy.

your objectives for what you want to

16 / BUSINESS IN ACTION

accomplish during your meetings.

so supporting them in the execution

and they think objectively rather

Avoid engaging in unnecessary

of a particular venture will help you

than emotionally.

chatter since they are turned off by

build a positive business relationship

inconsequential conversations.

with them.

D personalities are also task-oriented

S: (Steadiness)

When meeting a C personality for the first time, be mindful that they communicate in a direct, more

and problem solvers who thrive on

The S personality thrives by working

formal manner and are motivated by

seeing concrete results. They value

in a highly collaborative, harmonious

accuracy and deadlines. Therefore,

competency, are goal-driven, and

environment where a win-win

when communicating with a C,

tend to focus on the big picture. It’s

outcome is the ultimate goal. They

be sure to quantify your or your

important to acknowledge their point

value sincerity, cooperation, and

company’s successes with data

of view even if it’s different from

loyalty, so when getting to know an S,

they can verify and measure. In

yours. Stay confident and focused,

show genuine interest by engaging in

addition, they value diplomacy, so

and ask a lot of questions to better

personal conversation rather than just

if you are not in agreement with

understand their motivations and

rushing in with your business agenda.

their assessment of a particular

business goals.

I: (Influence)

business issue, substantiate your To effectively communicate with an

view with facts and testimonials from

S and gain a clear understanding of

trustworthy sources.

People with this personality type

what motivates them, ask specific

flourish most by pursuing and building

questions and listen carefully to what

Understanding how clients,

relationships and are most content

is being said. Be sure to present your

colleagues, and peers prefer to

when they connect with someone on

information logically, allowing them

communicate can positively

an emotional level. They are socially

time to absorb it on their timeline.

impact your relationships in the

driven beings who are talkative,

They like being in control and do not

workplace and lead to better

optimistic, and persuasive with their

want to feel pressured to immediately

business outcomes. With practice

upbeat energy and warm demeanor.

respond or make a business decision

and increased self-awareness,

since they generally like to take their

you’ll more easily identify different

time before giving a definitive answer.

personality types and excel in the art

For best results with this personality type, provide suggestions on how to plan, organize, and execute a project

C: (Conscientiousness)

or task. It’s best to stay focused on

C personality types are analytical

the excitement of a project rather

and investigative by nature.

than presenting them with a lot

Coupled with their superior

of facts and figures. Once an “I”

planning skills, they generally drive

personality is energized by an idea,

high-quality outcomes. They are

they will want to implement it as soon

perfectionists, disciplined, and

as possible. They value collaboration,

diligent in accomplishing tasks,

of interpersonal communication. n

Take Action

Consider taking your own DISC personality test to identify your communication style.

businessinaction.com / 17

SPOTLIGHT

THE

Business Blacksmithing OF

Craftsman NICK WICKS MOREAU discusses how he turned a centuries-old craft into a thriving twenty-first-century business, Wicks Forge.

BY MATTHEW BRADY

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PHOTOS COURTESY OF NICK WICKS MOREAU

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WHAT LED YOU TO BECOME A BLACKSMITH? I’ve always liked working with my hands. When I was younger, I did woodworking with my father, who was a carpenter. Later, I was going to grad school in Scotland for an economics degree but knew I wanted to also have a creative outlet.

I discovered that blacksmithing is still popular in Europe, so I found a blacksmith I wanted to work with named Jim Whitson, who was doing incredible work. I had never done any forging before, so it was great to learn from one of the top blacksmiths in the world about how to run a shop and create pieces.

WHAT HAPPENED WHEN YOU RETURNED HOME? I figured it was a fun experience but that I would get a “real” job. However, my grandfather, great-grandfather, and great-great-grandfather had all been metal workers.

I started cleaning out my grandfather’s garage, and I found his father’s anvil and tools. I knew that if I built a forge, I could be a blacksmith. I used most of my family’s tools and started working out of that garage.

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HOW DID IT BECOME A BUSINESS? I made things to sell, but the business wasn’t profitable. I was broke, saddled with student debt, and had to do

I’m always thinking about the customer. I think the trap sometimes for craftsmen is we get overexcited about the process.

But you must separate what you think is interesting from what a customer does.”

something, so I got that “real” job working in New York City. Right after I did, my business started growing. I was working in New York during the week and then going to Connecticut on weekends to fulfill orders.

My big break came when I was featured in Popular Mechanics. Suddenly, I was getting publicity and people were connecting with what I was doing. A few years after that article ran, I relocated to Maine. That’s when the business started really expanding because my shop was in my home, which helped with overhead costs. For the first three or four years, all the money I made went right back into buying tools and equipment, and I hired my first-ever staff.

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DO YOU PREFER TO CRAFT A FEW, EXCLUSIVE PRODUCTS FOR LARGER PROFITS OR MANY PRODUCTS FOR THE MASSES? I don’t come from a wealthy background, so I’ve always felt that everyone should have access to nice handmade

HOW DID COVID-19 IMPACT YOUR BUSINESS? COVID hit right after I started hiring in 2020, and this

things. In fact, as we’re talking, I’m using a mug that a friend of mine made; using it daily brings joy to my life. So our approach has always been “How can we make things that are handmade, affordable, and accessible?” In addition, as the business has grown, I’ve been delegating tasks so that designs are not just dependent on me— other people can come in and contribute.

was now my only job—talk about stressful. Plus, about 80 percent of our business for the year was slated to be

We now have a product line that we can produce at a

in-person sales at craft fairs, and that got wiped out.

relatively high volume. We’re still creating each piece one at a time, but we can make dozens or hundreds rather

Up to then, we had sold items on Etsy but not much

than five, so we can scale up production. And working

on our website; it was just supplementary income that

very efficiently and in production runs brings costs down.

I never really gave much attention to. Fortunately, a college friend who had worked in the startup world

We’re positioned within the handmade market.

took a crack at redoing my website to create an online

However, I think our products, from a design

business model, which helped us quickly transition to

perspective, are equally as good, if not slightly better

doing online sales.

than our competitors’ but at a price point that’s often lower. That makes it easier for people who want to

Despite losing all of those in-person sales, pivoting

have a handmade aesthetic to say yes to buying our

not only helped cover the losses from COVID but also

product rather than, say, something similar at

springboarded us to growth. Our revenue doubled the

Pier 1 Imports.

next few years.

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HAVE YOU HAD ANY BUSINESS FAILURES? IF SO, WHAT DID YOU LEARN FROM THEM? Because of our online model, we know how many sales we do each week, and that covers our general operating costs.

But there’s a process for the products.

For instance, 2021 was the first year we started offering barbecue tools such as spatulas and pokers. I had a design that I was excited about, and it did well, but we were always sold out because we couldn’t make them efficiently—they were timeintensive. We all got burned out, and the pieces weren’t very profitable.

That was a big lesson: it’s not just about

IS PROFITABILITY MORE DIFFICULT WITH SMALLER PRODUCTS?

making something that looks cool. From step

I think there’s something to that. On the lower end of the price market,

one, as I’m designing a piece, I must think

we’re competing against everyone who has a backyard forge and has

about how repeatable the process is: can

learned how to make a bottle opener. The competition drives the price

we make something that looks consistent

lower, so I don’t want to spend our time making fancy bottle openers

regardless of who’s making it? And can we

because you can get a bottle opener anywhere. So for our lower-priced

make it efficiently at a high volume?

items, we focus on things that are well made yet that we can do at a high volume and offer them at competitive prices while being profitable.

I had to throw away those original designs.

But in 2022, we came up with a new

I’m always thinking about the customer. I think the trap sometimes for

barbecue tool line that’s much more cost-

craftsmen is we get overexcited about the process. But you must separate

effective to make at a larger volume. It’s a

what you think is interesting from what a customer does. Our few higher-

design we’re still very proud of, and it’s more

end pieces are on the lower end of profitability because there’s no way to

profitable and sustainable on our end.

automate their production—we must bend each piece one at a time, we can’t do high volume, and there’s a production run of ten. businessinaction.com / 23

WHAT DOES HANDCRAFTSMANSHIP MEAN TO YOU AND YOUR CUSTOMERS? A blacksmith used to be a fixture of the community by necessity. Hardware stores didn’t exist, so you got your nails, tools, and garden equipment from a blacksmith shop. Today there are other options, so a town doesn’t need a blacksmith anymore. But there is still a need for the handmade aesthetic.

It’s awesome to use something that’s handmade versus something that you can’t develop a personal relationship with.

That’s something that’s missing to a large extent today. People don’t have a direct connection to their food or their material objects, and, in building this business, I want us to bring back that mindset of the relationship between where things come from and the end user. There’s value in that.

I find that people are always excited to meet a blacksmith, which shows that there’s an interest in these historic trades. It shouldn’t be that big a deal, though. I’m extremely proud of our small business and how we’ve been able to grow. But from a business and market perspective, I want us to be a model for producing inexpensive handmade pieces—and not just survive as a business but thrive.

I hope that, over time, we’ll be a good example of how not just blacksmithing but handmade products overall can be affordable and sustainable and not such an outlier.

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WHERE DO YOU SEE HANDCRAFTED-PRODUCT BUSINESSES LIKE BLACKSMITHING HEADING? I’d like to see this upward trend for quality handmade products continue and small businesses continue to innovate ways to bring affordability into the handmade market.

And I’d to see blacksmithing become relatively normal again; someone shouldn’t have to go on a crazy Scottish journey to get into this profession. In fact, one of the things I’m proud of is opening our business to let folks immediately make a wage doing blacksmithing.

They learn a foundational skillset while contributing to this business, and they can use it here or at another shop or to start their own business. I’ve seen several young people come through the shop and continue their journeys as craftspeople and individuals. It’s been a cool small-business success story in that sense. n

For more info, visit wicksforge.com

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LEADERSHIP

Why You Need an HR Department A human resources department can help your company recruit and retain the best talent and reach its goals. BY LAUREN KIM F YOU OWN A small business, you might not have a human resources department and instead perform your company’s HR functions yourself or delegate these responsibilities. However, despite the associated costs, having an HR generalist and related staff in place can be quite beneficial.

The functions of an HR department You can outsource some HR functions, such as payroll, benefits administration, and legal compliance, to a third party, but your employees may prefer interacting with in-house HR staff more than with an outside company.

Also, your business may be one client of many if you outsource your human resources functions, so you and your employees may not get all the attention you need.

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By providing your employees with a good mix of benefits, explaining them, and managing them smoothly, HR experts can provide peace of mind for your staff and boost retention.

Here are just some of the

compensation structure

important tasks a human

for your employees and

resources department can

ensure that their wages

handle for you.

are competitive within your industry so you can

Talent acquisition and retention Acquiring the best employees,

attract and retain the most talented employees.

Benefits administration

which typically requires activities such as posting

Your staff is one of your best

job openings, screening

resources, and employees

and interviewing applicants,

may value their benefits,

performing background

such as health insurance

checks, and onboarding new

and retirement accounts,

hires, can necessitate a lot

as much as their pay. By

of time and effort. While you

providing your employees

might want your managers

with a good mix of benefits,

to also participate in this

explaining them, and

process, having an HR

managing them smoothly,

team perform these tasks

HR experts can provide peace

won’t unduly overload your

of mind for your staff and

management staff and hinder

boost retention.

their productivity.

Employee development Payroll

and training

Some companies may

Onboarding new employees

relegate the issuing of

may require a lot of

paychecks to a finance

time and expertise. HR

department, but a human

can structure employee

resources department can

orientation, provide

handle other payroll-related

training that can increase

tasks like salary increases,

productivity and reduce

bonuses, and time off. Your

turnover, and ensure that

human resources department

your company is compliant

can also help create a

with EEOC laws.

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Company culture A human resources department can be instrumental in fostering your desired company culture. A supportive company culture, which can consist of a shared set of positive beliefs and attitudes, can enhance retention by helping employees feel like valued members of your team. HR can help build and perpetuate company culture by recruiting candidates who align with your values and by training and nurturing employees to uphold your business’s values. For example, ReminderMedia’s HR department has created paid opportunities for its employees to perform local community service and has created an Engagement and Events Committee to foster inclusion and a sense of belonging among its employees.

Compliance In addition to remaining compliant with EEOC laws, your company must follow other applicable laws and regulations, such as antidiscrimination, family, medical leave, and safety laws.

Staying up to date and ensuring that your company is doing everything it’s obligated to do under these regulations can be a complicated task, but your HR department can simplify it by staying abreast of local, state, and federal laws and by implementing related policies.

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Take Action

Evaluate your company’s processes to determine whether it can benefit from an HR department.

When to create an HR department It can be difficult to pinpoint exactly when your company needs an HR department. If your business is growing quickly, it might be a good time to consider establishing one to handle the influx; some experts suggest adding an HR specialist when you have at least ten employees.

Potential savings While bringing in an HR generalist and possibly other human resources staff is an expense, this move can reduce your overall costs, such as those associated with the additional recruitment and training that may be needed if employees aren’t properly screened and introduced into their roles and your company culture.

This is because the cost of hiring a new employee can be much more expensive than retaining an existing one, often equating to several months of an employee’s salary.

As you can see, a human resources department covers many essential functions, and if you move to establish one, you may boost your company’s performance and save time and money in the process. n

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MARKETING

The Ins and Outs of Affiliate Marketing Affiliate marketing can help brands around the world reach a broader audience, generate leads, and increase sales numbers.

BY ALLISON GOMES

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S A BUSINESS OWNER OR

the model—one being Amazon, which

entrepreneur, one of your

launched its Associates Program that

main goals is to use marketing

same year. Amazon was the first major

to reach potential customers. A brand

company to utilize affiliate marketing,

cannot succeed without marketing,

but its program allowed people

and it often requires a lot of time,

anywhere to promote its products,

energy, and money to get your product

which at the time were just books. Those

or service in front of people. But social

in the Associates Program shared links

media has changed the game and has

to the products on their own websites

become a valuable tool for businesses.

and received a kickback from the sales

One highly effective online strategy

made through their unique links.

is affiliate marketing, through which companies allow content creators—the

Amazon’s public marketing model

affiliates—to push their products to their

brought affiliate marketing into the

online followers.

mainstream and paved the way for the

The history of affiliate marketing

creation of more affiliate marketing programs and affiliate networks, sites where small businesses pay a fee to

William J. Tobin, who is known as

join and have their products advertised

the world’s first internet marketer,

to affiliates, who then advertise the

is credited with starting affiliate

products to potential customers.

marketing in 1989. Tobin created an e-commerce site for his business,

This is still the practice of affiliate

PC Flowers and Gifts, and launched the

marketing today—but to a higher

Prodigy Network, a marketing model

degree than even Tobin could have

that allowed those in the network to

imagined. Today, more than 80 percent

receive a small portion of every sale

of brands have an affiliate marketing

generated through it. By 1995, 2,500

program to help generate leads and

affiliates in the Prodigy Network were

increase sales numbers.

generating around $6 million annually for Tobin’s business.

How affiliate marketing works

A year later, Tobin filed for the patent

At its most basic, affiliate marketing

for his marketing strategy, but other

works like this: a business allows

businesses had already started using

affiliates to promote its products or

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services online to their followers

The affiliates are responsible for

via personalized links that potential

getting the product in front of

consumers can then use to purchase

potential customers. Affiliates spread

those products or services. When

brand awareness and increase

a sale is made through the unique

traffic to a business’s product or

link, affiliates receive a commission,

service through various online

which is typically a fixed percentage

platforms. “As an affiliate, you’re

of the final sale. This means that

like the liaison between the product

businesses aren’t paying affiliates

and the consumer,” says Jess Zion,

until after they have made a sale

an affiliate for six companies who

for the company. It’s a win for both

now educates her 165,000 TikTok (@

brands and affiliates since they’re

makemoneywith_jess) and Instagram

making money from the process

(@themarketingmama02) followers

without much upfront cost.

on the marketing strategy.

As an affiliate, you’re like the liaison between the product and the consumer.”

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However, not just anyone

Zion. Similarly, affiliates

can become an affiliate

can promote however many

for any business. Some

companies and products

companies choose their

they are approved for.

affiliates, often via online applications, a process that

There are three main types

allows them to pick who

of affiliate marketing:

they think fits best with

unattached, involved,

their brand and vision. In

and related. Unattached

addition, there’s no cap

affiliate marketing utilizes

on how many affiliates a

affiliates who haven’t used

business can have at one

the product or service

time. “You can have as many

before, meaning they can’t

people as you want putting

make claims about the

your product in front of

quality. In involved affiliate

your target audience,” says

marketing, the affiliate has

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You can have as many people as you want putting your product in front of your target audience.”

Affiliates can work from any social platform, allowing brands to be seen by a relatively large network of potential customers. a close connection to the product or service,

people promoting their products directly in

with the affiliate having used it before and

front of their target consumer,” Zion explains.

now recommending that other consumers use it as well. Related affiliate marketing

With a strategic collection of affiliates

relies upon the expertise of the affiliate to

pushing a product or service online, there’s

promote products to their audience. They

often a greater potential for sales through

don’t necessarily have to have used the

this marketing model than more traditional

product or service but rather have a personal

routes. For example, content may go viral,

or professional connection to it. Businesses

which can translate to more sales for

and affiliates can choose the route that

businesses. If there’s an affiliate with a video

works best for their specific purposes,

that gets thousands of views, the potential

tailoring the strategy to the brand’s products

for sales rises exponentially. “Let’s just

or services.

say, if your affiliate is making content that

Why affiliate marketing is beneficial Ultimately, affiliate marketing has the

converts, that’s a lot of product sales for your business,” says Zion.

As an industry, affiliate marketing was expected

potential to generate more leads for

to reach a worth of $12 billion in 2022, almost

businesses, which, in turn, can increase

triple its worth in 2015. There’s virtually no

sales. Affiliates can work from any social

limit on the potential sales increases that

platform, allowing brands to be seen by

businesses could see when they develop an

a relatively large network of potential

affiliate program that attracts affiliates, who

customers. “With social media having the

then attract more consumers for the business.

presence it does these days and the sheer

“Affiliate marketing is the future of digital

number of hours people spend scrolling

marketing,” Zion states. “It’s just the world we

on platforms like TikTok, Instagram, and

live in, and all businesses should be taking

Pinterest, companies can have numerous

full advantage.” n

Take Action

Examine the success of your current marketing strategies, and determine if your business could benefit from starting an affiliate program or joining an affiliate network.

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FINANCE

Finding Your Competitive Advantage Financial services firms can get a leg up on their competition by focusing on their competitive advantages. Here’s how.

BY WILLIAM KLINE

INANCIAL SERVICE PROVIDERS primarily operate in competitive markets, which contain two general categories of firms: a relatively short list of wellestablished and well-capitalized national/international firms and smaller, more regional firms. In aggregate, these firms offer a wide range of products and services to customers ranging from institutional to retail clients, thus providing an opportunity for firms of any size to carve

some actionable steps

the firms in an industry to

out a niche market aligned

for practitioners looking

sell a product or service

with product attributes

to develop their financial

in the pursuit of profit.

that the firm has an

service ecosystems.

But what does it mean

advantage in delivering.

Small firms have a clear competitive advantage

A competitiveadvantage refresher

to outcompete your peers, and how do you do it? Academics and practitioners have been

within a financial service ecosystem, particularly

Competitive advantage is

asking these questions for

through referral sources,

a foundational business

decades. The dominant

which ultimately drive new

strategy concept that

logic in competitive-

client growth.

captures the essence of

advantage literature

business—outcompeting

suggests that firms

I’ve spent years consulting and teaching continuingeducation courses for CPAs and attorneys and over a decade teaching business strategy to MBA students. Here I offer

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Competitive advantage is a foundational business strategy concept that captures the essence of business–outcompeting the firms in an industry to sell a product or service in the pursuit of profit.

beat their peers by offering something of worth that uniquely satisfies the needs of a target customer group. In short, you have an advantage when you provide something that competitors cannot copy.

This concept seems easy, but the “how” can be complicated.

Firms should start with a strategic vision. Drawing on work in Michael E. Porter’s book The Competitive Advantage: Creating and Sustaining Superior Performance and research by many others, firms offer products and services as either a differentiator or a low-cost provider. Firms with a differentiation strategy charge premium prices because they offer one or many premium features. Examples of firms with this strategic orientation include Apple and MercedesBenz. Firms with low-cost strategies generally offer more basic features but for a lower cost than peers. Walmart is an obvious example of a low-cost strategy. It is important to note that firms with either strategic orientation can be wildly successful. However, long-term success is driven by competitive advantage produced by the underlying business model.

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Once a strategic orientation

activities at the business

is selected, firms must

model level. For this

decide on the target

analysis, we define a

customer who will consume

business model as the

the premium or low-cost

summation of all business

goods and services. Porter’s

activities that are required

work describes a second

to carry out a business

dimension of strategy,

strategy (i.e., a firm’s plan

which highlights the

to compete).

firm’s decision to sell to a broad or focused group

A business model has two

of customers. A common

sides: the supply side,

approach is to segment

including the resources

potential customer groups

and activities that a firm

based on dimensions such

uses to create a product or

as age, education, income,

service, and the demand

or location. Analysts can

side, including the

also conduct customer

resources and activities

analysis on more nuanced

related to the customers’

dimensions of customer

value proposition. A firm

“jobs” that satisfy social and emotional customer needs.

Individually or collectively, these frameworks refine the emphasis of a firm’s strategy so that investment, focus, and product/service

The ecosystem concept stems from the field of biology and characterizes a network of entities working together for some common purpose.

can develop an advantage over its peers from the business model’s supply side or demand side. For example, supply-side advantages can stem from resources or activities

features are aligned with

within the firm, such

the preferences of one’s

as better software or IT

target market. Firms choose

its target customers are

Understanding a firm’s

infrastructure, inventory

the size of their target

likely older, highly educated,

general strategy gives

control systems, or

market by narrowing or

and high-net-worth

a broad understanding

employee productivity.

widening products and

clients. Therefore, the firm

of the foundation of

Supply-side efficiencies

services that their ideal

has primarily eliminated

competition. To identify

generally lead to a lower

target audience will likely

younger, less-educated, and

sources of competitive

cost structure and,

consume. For example, if

lower-income customers

advantage, we need to

therefore, higher profit

a firm sells custom yachts,

from its target market.

isolate resources and

or more pricing flexibility

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than the competition.

need to create a product

Demand-side advantages

or service that our peers

are customer-facing, often

cannot easily copy. Doing

coming from premium

so will solidify ecosystem

features, customizable

relationships and

solutions, or superior

hopefully create value for

customer service, which

all involved.

commonly accompanies premium pricing.

How to develop your ecosystem

The ecosystem concept stems from the field of biology and characterizes a network of entities working together for some common

Before we begin, I would

purpose. Given this narrow

like to refine our scope

view, we can direct our

by defining our target

attention to how to create

audience. For this exercise,

something unique for our

our target audience is an

target audience.

ecosystem full of other entities with common

Again accountants,

goals. More specifically,

attorneys, financial

this ecosystem includes

advisors, and insurance

accountants, attorneys,

and real estate agents

financial advisors, and

all support one another

insurance and real estate

on complex client

agents, all of whom

engagements and through

support one another

referral arrangements. As

on complex client

a professional in any of

engagements and through

these industries, it’s critical

referral arrangements. It is

to build relationships with

important to note that we

other industry leaders.

are trying to produce value for an “intermediate actor”

Below are five proven

and not the end consumer,

activities for building a

but the same principles

supply-side competitive

apply. In order to create a

advantage in the

competitive advantage, we

financial services space.

businessinaction.com / 39

Note that there is a significant difference between the members of your ecosystem and retail clients, particularly clients without advanced degrees and strong business acumen.

As such, service providers must tailor resources and activities for ecosystem partners in their language, to their level of sophistication, and in communication channels tailored to them. If this is done, you create trust—a necessary ingredient for ecosystem development. If competitors cannot replicate your ecosystem, you can create competitive advantage in the long run.

➊ Network smart Focus on networking with groups that have a specialized emphasis.

For example, avoid groups that cater to the general public and identify and network with groups that are composed of members in the service professions you seek. If you find targeted groups, you will potentially find like-minded individuals, which

engagements. This is important

experienced professionals need

is an essential aspect of establishing

because thought leadership

technical insights.

an ecosystem.

content and delivery should For example, if you complete

➌ Deliver content in the optimal format

tax returns for retail clients, you

Technical content should be

Build branded technical resources,

should avoid technical jargon

delivered in forums that provide

including case studies and examples,

and provide actionable advice

the most credibility. While company

to articulate where your technical

on records retention or tax form

newsletters or firm webinars can

expertise contributes to client

submission guidance. However,

serve this purpose, you will have

➋ Build branded thought leadership content

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differ for each target audience.

even better if the printed materials contain thought leadership content for future reference. Business professionals love reference materials for their offices.

➎ Volunteer for leadership roles in outside organizations Volunteer to be a specialty area expert for an organization like a specialty association. Again, this signals your expertise while giving free exposure to the association members and the public.

Competitive advantage comes in many forms. Here I have provided five activities tailored to develop a firm advantage from the supply side of a financial service business model.

Integrating these activities makes the source of advantage even more unique. While this source of advantage is not as apparent as customer-facing features or attributes, it offers a powerful opportunity for service firms more credibility by having content

that it should allow easy access to

in peer-reviewed magazines,

sponsor organizations’ members

journals, or speaking venues.

and prospects.

This is because the sponsoring organization is providing a signal

➍ Revisit print marketing options

about your technical expertise by

Get tangible products, ideally

giving you a platform. You will be

bounded materials, in the hands of

viewed as more of an authority

your ecosystem. Research shows

figure than a salesperson. An

that people hold on to printed

additional benefit of this avenue is

materials for long periods. This is

to outcompete industry peers. n

Suggestion for further reading: Porter, Michael. E. The Competitive Advantage: Creating and Sustaining Superior Performance. NY: Free Press, 1985.

(Republished with a new introduction, 1998.)

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PRODUCTIVITY

Discover Your Motivation Style

Motivation is about more than your character.

Learning your motivation style can spotlight how you operate your business and where you need to grow.

BY LUKE ACREE

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What Motivates You?

ACHIEVEMENT: The motivation to excel by pursuing lofty goals and seeking self-improvement.

Achievement-motivated people

I’m not talking about your goals for today

gain satisfaction from promotions,

or even the quarter. I mean the inner

meeting challenging deadlines, and

fire that pushes you to learn, grow, and

earning accolades.

succeed every day of your life. Motivation may even be the reason you ended up

POWER: People motivated by power

in the business you’re in now. It can

seek to gain influence, lead teams, and

also affect your company in profound,

guide others to reach their goals. They

unexpected ways.

may choose high-ranking professions over high-paying ones, though these

Before I dive deeper, I want to clear up

overlap in most industries.

some confusion. There are several theories about types of motivation, some of which

AFFILIATION: Collaborative and

conflict with one another. According to

social people aim to build positive

psychologist Abraham Maslow’s hierarchy

relationships with others. They believe

of needs, people act to satisfy one of five

in harmonious team environments

needs, ranging from basic survival to

where everyone gains satisfaction

an overall sense of personal fulfillment.

from the work they do.

Meanwhile, Aristotle believed that there were certain “ends” or goals behind every

SECURITY: People motivated by

action or choice you make.

security build stable, reliable, and financially rewarding lifestyles. They avoid unstable careers that are highly

Leadership IQ

dependent on economic whims or a series of short-term projects (like the arts).

One of my favorite theories on motivation

ADVENTURE: Polar opposite to the

comes from the Leadership IQ quiz.

previous category, adventurous types

I’ve taken the quiz myself, which I

crave high-risk/high-reward pursuits.

discussed on an episode of my podcast,

They love beating the odds, new

Stay Paid. This theory breaks all

ventures, and reattempting challenges

personal sources of motivation into

that they may have failed in the past for

five distinct categories:

another chance at victory.

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All of these theories aim to

satisfaction from their choices and

explain not only what people do

day-to-day activities.

but also why they do it. Overall, though, these different and even

Extrinsic motivation makes a

contradictory theories can still fit

person act to obtain a specific goal,

neatly into two major categories:

achieve a positive result, or avoid a

intrinsic and extrinsic.

negative consequence.

Intrinsic motivation makes a person

You may not quite see yourself in

act for the sake of action itself. They

either category just yet. Here’s a

love what they do, and they gain

closer look at each one.

According to psychologist Abraham Maslow’s hierarchy of needs, people act to satisfy one of five needs, ranging from basic survival to an overall sense of personal fulfillment.

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Intrinsic motivation

Extrinsic motivation

This motivation style comes from

This type of motivation aims to

within. Your personal feelings or

achieve. Whether you’re working

intentions guide you, and you aim to

hard to gain a promotion, earn

satisfy these inner demands. You may

your paycheck, or get to Friday so

work hard for its own sake, for the thrill

you can enjoy your weekend to

of taking on new ventures, or for the

the fullest, those of you who are

sheer passion for the field in which

powered by extrinsic motivation

you operate.

always need a goalpost. What are you working for today, and how

However, intrinsic motivation may be

can you set goals or rewards for

highly dependent on your feelings

yourself to stay motivated?

toward your work. So if you suddenly feel bored or unsatisfied with your

Similarly, those who work with

work—for any reason—you may start to

extrinsic motivation may also do

detach from your responsibilities. At its

their best to avoid punishment.

most potent, intrinsic motivation fuels

Such people may excel in very

an individual to work tirelessly and

tough or demanding work

be fully committed to surpassing any

environments—like in health

challenge they meet.

care, where mistakes can be costly or even dangerous— because they internalize the

Intrinsic motivation makes a person act for the sake of action itself. They love what they do, and they gain satisfaction from their choices and day-to-day activities.

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potential consequences of being imprecise.

Don’t confuse extrinsic motivation with being superficial or shallow.

This motivation type pushes you to reach very respectable goals, like buying your first home, saving up a college fund for your children, or staying on good terms with your clients.

Extrinsic motivation makes a person act to obtain a specific goal, achieve a positive result, or avoid a negative consequence.

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So what?

As leaders in business, constant self-reflection is critical to Why we should the timeare to always look motivated ensure that and you our take businesses self-aware of may need an extra push inward and figure motivation to understand the gravity of external where our strengths and out ouryour weaknesses lie. It's about knowing why you our make staying style? aheadBecause of the game, optimizing chancesgoals, of like meeting quotas and revenue youthe make allows you growth. Those who are extrinsically success,the andchoices reducing headwinds wetocan sometimes motivated may wait on other forces face. reach your full potential. Understanding your motivation style can guide you to

or circumstances to power them up.

positions are best suited toofyou.

At 4xi, we believethat in the importance this processFor example, such employees may For example, thoselife who alignfrom with our TRUEexcel when trying to reach a goal throughout the business cycle, adventurous intrinsic motivation may betterlike a promotion but then may get NORTH© methodology, to win better, retain enjoy thrill and intrigue of being complacent when there isn’t a specific business.

Ourthe MarketMatch© approach to aidentifying venture capitalist.

When you get to knowpartnership goal in their sights. Identify your Ideal Client profiles and identifying strategic your own strengths, can find the style to identify where you opportunities where we notyou only survive but thrivemotivation is an avenues in which you’ll naturally excel. could improve. important formula of success.

About the author: Luke Acree is an authority on leadership, a leadgeneration specialist, and a referral expert who has helped However, yourself can Just as a king or queen needs a counsel There are plenty understanding of businesses that do customer service more than 100,000 also you assess weaknesses. of experts, business leaders who get well, and wehelp all know their your names because 4xi Global Consulting & Solutionsentrepreneurs and small businesses Learning about your weaknesses may rise to to businesses quickly theknow top their motivation style can customer-service-driven grow their companies.

Email:with hello@4xiconsulting.com sound like a ton of fun, but it can surround themselves a team of of their not industries.

He hosts Stay Paid, a www.4xiconsulting.com mean a sea change in your professional collaborators who excel where they do sales and marketing (and maybeExperiences© even personal)we life.focus As Ann not. Are you extrinsically motivated by Through Evolving on the Human podcast, and has Holland, PhD, told Forbes, “The best way signs Experience of customers, consumers, and employees andof success, like financial growth, been featured in getdrive unstuck and get out of your own but not particularly interested in how wetocan effective attraction strategies, Entrepreneur, Forbes, and Foundr.com. way onand theelevate road toall achieving your goals to being harmony with others? Enlist another engagement, our stakeholders is toambassadors, power up youreven self-motivation.” leader in your company who is more advocates, evangelists of our brands. intrinsically motivated by affiliation Wherelearn is your personal motivation style to guide team-building efforts and In this issue, why you need to put customer service lacking? of Those who areyou intrinsically improve company retention. n at the forefront everything do if you want your organization to be the next Disney, Nike, or Apple.

We do hope you enjoy this latest issue of Business in Action, and we look forward to connecting again soon.

Use the list in this article to determine what motivates you, and use that Take motivation style to create new goals. Then use this guide to set goals Simon Elliot, Boden that apply to your style.

Action Barbara

Managing Partners and Co-Founders

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4xi Global Consulting & Solutions 11 Lucy Ln Westhampton Beach, NY 11978