Profit Wise by Jeff Morill – Book Summary
Jeff Morrill, an entrepreneur himself has written about his experiences in the world of the automobile business and highlights the things that have worked for him in the business. Jeff runs an automobile dealership called Planet Subaru that has yielded about 100 $ million in revenue.
Different chapters in the Profit Wise book Jeff tries to highlight the real-life example and explain that business can be scaled up by following ethically ways. Profit Wise uncovers principles of How to run a business successfully
Jeff Morrill and his brother decided to open an automobile dealership because they wanted to provide the alternate experience to typical high-pressure tactics used by other dealerships.
The first business decision Jeff took when they started their own dealership called planet Subaru then decided to hire the talent that was typically ignored in the field of an Automobile dealership. For example, hiring a woman was not common in those times when Jeff started.
The business principle of Planet Subaru was to focus on growing the profit in the long term. Create value for the people who want to do business with you instead of someone else.
When we start to focus exclusively on our own wealth. Having no regard to collateral effects, we damage the ecological and social system that we depend on to produce profits. Jeff says that business should be able to run even when you retire or you die.
Defining Your Business
Defining reality is telling the story of why your company exists, what you are trying to accomplish, how you are going to accomplish it, and how you are going to do that.
Defining reality is more important than business strategy because it impacts the very decision we are going to make in the business including the business strategy.
The stories we tell ourselves influence our culture and behavior. Mutual understanding allows people to band together and assembles into a force much more powerful than isolated individuals,
Jeff mentions that asking this question to yourself will help develop the reality for your business
1) what’s special about your company?
2) Can your reality rewrite your industry’s rules in your favor
3) What are your company values?
4) What kind of people do you hire?
5) what kind of customer do you want to attract?
Answering this will develop the story and bake it in the work culture and develop the mission and vision. So when you grow the organization, you need to adapt to changing circumstances and continually earn the team’s confidence in your reality.
How to Hire Framework for your Business
Hiring is very important, this is the team that will work towards achieving the company’s goals. If hiring is done right then your organization will have the stronger team
For any business, if they are not able to gather enough people with the inclination and ability to do what you ask them to do, then you run a daycare facility instead of a business.
Jeff Morrill says that many owners & managers neglect to hire a diverse team because they don’t see all the benefits to their own companies.
Having a diverse team e.g. like having women working in sectors where there is no sizable percentage of the workforce. Provide following benefits
1) These hire tend to be more grateful, motivated, and loyal
2) The Organization ourselves from the competition
3) These firms draw customers from a wider range of communities
4) The Team can make a better decision because they have a unique perspective represented at the table
Creating Effective Hiring Process
Over time Planet Subaru has created an effective Hiring Process which has undergone different changes and optimized. The below are the process
- In your recruiting ads ask all applicants to submit and cover letter. Doing this the candidate needs to study about companies vision, mission, and culture and needs to put in the effort to make a cover letter
- Create a list of answers to frequently asked questions, this will ensure the reduced calls that you will receive to answer it. Making you more effective and also attracting the right talent.
- Candidates call, conduct a brief informal phone screen. This will help in filtering out candidates and finding the right talent.
- Conduct 3 interviews before hiring a candidate. These seem like a task but is worth the effort in the first interview to test the potential of the candidate. The second interview with the panel to understand how well the candidate can gel along with the team. The third interview will be a shadow day where candidates observe how to business daily activities are carried out
- Involve several team members in the interviewing process as they can provide valuable insight about the candidate
- Use the same set of questions for all candidates applying for the same position
- Invite the candidate to interview you while you interview them
- Move quickly and don’t keep candidates hanging for their results
- After hiring provide them with the training they need to succeed
Tips for Creating Compensation Plan
While salary plans are simpler to create, administer and understand, they do not reward the worker for doing exceptional work. Performance pay plan rewards the team member output, motivating behavior with financial rewards.
While this performance pay also has disadvantages, this rings in vulnerability to uncomfortable swings from year to year. Pay any bonuses relatively often so your people experience the enjoyment more frequently, reinforcing the desired behavior
Monthly bonuses are better than annual bonuses. Align your pay with the mission your people execute.
How to lead a team in business
What is leadership?
At a fundamental level, it is the ability to organize others in pursuit of a common purpose. In planet Subaru showroom Jeff always believed that they mentor people who have enough motivation and the right kind of intelligence.
Building Trust in Team
Your team has many eyes, they watch you closely. That means that you have to follow your own rules and keep your promises. Alway earn respect based on your actions and reactions.
Sometimes it is better to stop talking keep the context in mind, if you surround yourself with the people who obtain some kind of financial benefits from their relationship with you, they will generally laugh at your dumb jokes and give you encouragement to keep on talking.
Don’t lie to anybody, about big things or little things so that you do not deceive people about things. At the time it’s better to leave your office and join the team to show solidarity with your team once in a while.
Have a positive intent towards your team members. Having accountability is always better instead of punishing your team. Accountability lead to individuals taking on responsibility and also along the way developing leadership skills.
Empower your frontline people to solve problems and make their own decisions. If this decision-making power is not given then the problem could have been solved at a smaller level does not get resolved.
Motivating Your Team
Jeff Morrill highlights some of the strategies that can be used by you to motivate your team if you manage any team under you
- Celebrate victories – This provides reinforcement and encouragement for the people to perform at their best.
- Affirm & Recognize – With compliments the more your give away, the richer you get, A little encouragement and attention goes a long way.
- Resit the temptation to micromanage
- Make Changes at a sustainable pace
How to create Quality Customer Service for your Business
Customers expect so much today because some businesses have spoiled them like never before. You will earn new business and future loyalty when your team executes customer service and sales activity with excellence. Excellent customer service motivates the customer to return and buy from you in the future.
Tips to helping dissatisfied customers
- Assign the proper team members to work with upset customers
- Allow the customer to speak first
- Apologize and mend fences
- Assure them that you will help and make a plan for the same
- The customer is not always right
- Stay in touch
To have effective sales experience, we need to focus on operational excellence. The operations excellence will help to gain the competitive edge by delivering a higher quality of work or product.
Always focus on the fundamentals of the core business operation. Customer service always creates an environment where the customer feels comfortable.
Preparing for Business Negotiation Deals
Negotiation is a complex activity; some withdraw and others become too focused on being right and instead of actually solving the problem.
The first thing to understand about negotiation is leverage. Leverage means power. The ability to confer benefits or impose costs on the other party.
Leverage takes form including the ability to walk away from the deal or a relationship. Just because you have leverage doesn’t mean you should always use it.
Things to consider for Negotiation
- Prepare – Something is important enough to negotiate, its big enough to invest the time and the effort to get organized
- Ask lots Questions – Its easier to come to on agreement when your are lear about other parties need and objective
- Practice Empathy – You will achieve more in negotiation when you have an open mind to varying perspectives
- Remain Flexible – This will help in coming up with creative solutions
- Pick your battles carefully – Reserve your disagreements in the issue that really matters to you
- Don’t be desperate to make a deal this can work against you
- Focus on the long term relationships when possible
- Leverage that you have expires when you sign in the deal, hence ask what you need before signing in the deal
How to make decisions and develop problem-solving skills
You cant find the right solutions without thoroughly understanding the problems. Hence it is important to spend time asking the right questions before trying to come up with the solutions.
When you don’t like your options see if you can find a way to get more options
Look at the data and facts, but you don’t get a look in reports. Not deciding to decide is still a decision. But sometimes the right decision is to do nothing. Start-ups routinely outmaneuver established companies because they make decisions faster.
Making most of your time
Commercial real state agents use the term” highest and best use” to describe a property’s greatest financial utility. Even when we start thinking this way we would be able to achieve great success.
Can make effective use of time by asking the following questions to ourselves
- What is the highest and the best use of your time?
- Are you spending hours doing activities that you could delegate to someone at a lower price?
Always plan the hard task to be completed early at the start of your day because as the day passes you get tired and then the task is never completed.
Arrange your day that it aligns to your natural flow of energy eg – opening emails replying at a particular time of the day.
Always know when to quit for the day, as you put in more time the productivity decreases hence it’s important to know when to call it a day.
Always schedule the day in such a manner that you leave some buffer time in your work schedule so that you can accommodate the overscheduling appointment in the day
How to create Success for Long Term Success
Long hours are necessary during the start-up phase, but running a business is a marathon and not a sprint, so one needs to ease off once your business is established.
How to Avoid Burnouts
Your Physical and emotional health are your greatest assets. You need to honor your responsibility so t hat you can work at the optimal level.
Set boundaries with your schedule, Jeff mentions that it’s important to set boundaries. Remember that each person has certain physical and emotional reserves for every day and those get depleted according to the task.
Hence it is important to consider which task needs to be taken up and delegated.
Find at least one thing that you can enjoy at work every day so that it breaks the monotony of the task. Make time for friends spend time with those you admire and you might become more like them.
Profit wise Author and Planet Subaru Owner Jeff has shared his completed experience in this book. He very well explains the systems and the mindset that is required to run a successful business and well as retain the business at the current of success
Using the right frameworks mentioned, one can develop systems for his business and scale it up. A start-up owner can have a successful enterprise by managing the different aspects of life like health, relationships, and also a business.
In fact, this book mentions that if one can manage all this then they will have more success in their career.