6
STRUCTURE FOR GROWTH

The most important gift you can give to your business in the early stages is to get great systems in place to manage all the mission critical aspects of your operations. The number of people who tell me they have everything in their head is frightening. You cannot grow unless you create a solid foundation. Very early in the Boost journey, we discovered the value of systems — particularly when we decided to move to a franchise model. Strong systems will save you when the going gets tough because — like military training — they give you something to fall back on when your brain is in a fog and you have a thousand urgent things screaming for your attention at once. I was fortunate that my brain works in systems, and every day I was either tweaking or creating a system so the business could grow. Of course, no system will work unless you have an A-team in place to ensure that, as the business grows, it develops into a relatively sleek and streamlined operation. Without good systems and a winning team, you risk creating a scary ‘Frankenmonster' of a business that will need a lot of pruning and restructuring down the track to get it back into shape.

It's also important to consider what the future shape of your business will be and make sure the important decisions you make in the early days take you closer to that goal and not further away from it. In the case of Boost, franchising was on the cards from the outset but franchising isn't right for every business so consider carefully what the best model will be for you. Another thing that set Boost apart was our marketing, which I talk more about in this chapter.

So spend some time in the beginning to think through what your business will need and set yourself up for success early. Remember — you cannot build a house on cracked foundations; you need to make these foundations as robust as possible. The hours you spend early on will save you weeks, months or even years of pain — and potentially substantial sums of money — in the long run.

To franchise or not to franchise …

What to franchise? When to franchise? It seems that everyone with an idea is trying to franchise it these days. So how do you know if your idea is a good bet? When should you franchise? At Boost, we were very quick to franchise and, for us, it was definitely the right move. The speed of our growth was so rapid in the early days that franchising was the only viable option to maintain this growth momentum, and it worked well for our business model. But franchising isn't for everyone. Before you take that plunge, you should consider whether your business model is appropriate to your business.

The first thing I'd say is if you have a business that is only slightly profitable after royalties, do not franchise, because it will be a world of pain! Franchising only works if you have a proven profitable model that is transferable and has growth potential.

You need at least a year's worth of figures that are profitable. You also need to make sure that you're in possession of a full operations kit (a ‘how-to' guide with tools, forms and information) so that everyone knows exactly what they're doing. And you need to be certain that your intellectual property rights and trademarks are set up and protected. And I'd recommend you hire a solid accountant and lawyer to ensure you get it right — once you know the rules, the process is not difficult.

Next, you need to be sure your business is a good franchise option. Work out if your concept is a profitable model that can be transferred to another location. I have a friend who's a naturopath, and she is so successful that she was considering franchising. Unfortunately, in her situation it's not possible — she is her business. If she could find 100 clones of herself to run the franchises, yes, it would work, but that's not going to happen! In my friend's case, she's now considering creating a product line instead. Remember — franchising may not be for you, but there are always other ways to expand your business.

Assuming your business is making money and is transferable, what are the benefits of franchising? For me, franchising has five enormous benefits:

  1. Market ownership: If you have a good concept that's busting to grow, you need to claim your market — if you do not grow your concept, someone else will! Don't let anyone steal your hard work right out from under you. Franchising allows you to expand your concept into new territories without having to physically be there yourself, because you get like-minded people involved in your business who also have ownership, and you know that they have the care factor to make the business work. You need to be first in the minds of your consumers. Without this advantage, growing a brand is difficult.
  2. People: When you franchise, you expand your operation with passionate, like-minded owners who will work as hard as you do to build their own businesses as part of your network. The good franchises really tap into this great resource to grow their business.
  3. Capital: Franchising allows you to grow your business with limited capital outlay.
  4. Marketing: Franchises pool their resources so that they can market effectively as a group. Franchising is also a great way to get market penetration by opening lots of stores, which in itself is a great marketing tool.
  5. Buying power: With mass orders come great savings. Many businesses need to get to a certain size before they are big enough to make decent money. With a franchise, even though you have one store, you leverage the group and you immediately have better buying power.

So if your business is straining to grow, do the sums. Franchising just might be the perfect solution for you. However, while franchising is often viewed as a golden ticket to retirement, it can be a nightmare.

Franchising comes with four major stings in the tail. These are:

  1. Set-up costs: Legal costs and aspects such as preparing your training manuals and documenting your systems so you set your business up to franchise can cost in excess of $200 000. Of course, if you do it right, it is well worth the investment.
  2. High risk of litigation: Whenever you are dealing with people and large amounts of money, even if you do everything right, you are still at risk of being sued. When all good intentions go wrong, for example, sometimes a franchisee can look for someone to blame. When I first started out, my lawyer said to me that the one thing that was guaranteed was that, sometime down the track, someone would sue me. If you ever go through this process, you will know there are no winners (other than the lawyers) and it is a world of pain.
  3. Systems pressure: If you thought that running a business required you to have good systems and processes in place, well, multiply that pressure by ten to get closer to the requirements once you franchise. The Franchise Code of Conduct needs to be followed, and you need systems for tracking sales, communication, marketing, HR (etcetera, etcetera). So your business needs to be in great shape before you franchise. You will need to continually invest in digital systems to keep your business robust.
  4. People: While getting great people to deal with and share great ideas is a great positive (because nothing is better than being surrounded by dynamic, innovative people), the negative is that, because we are all human, you'll also likely have to deal with negative people who love the blame game. It is also very hard when, for whatever reason, the business does not work for them or perhaps they have a change in life, such as a divorce. You need to ride that path with them, understanding it can be very hard emotionally to run a franchise business.

So before you make the leap, consider carefully what kind of model your business is best suited to.

The Boost franchising method

I never even considered having just one juice bar. I always knew that Boost was going to be big (which shows just how naive I was, and lacking in any true knowledge of what was involved to make this prediction a reality).

In the very early days, I hadn't considered how exactly I was going to create all these stores. I simply thought I'd have another and another and another … Unfortunately, as the brand expanded, I simply couldn't hire the high-quality people I needed as well as expand. I realised early that if we wanted to grow quickly, people in the company needed to have ownership — and there's nothing like having everything on the line to make a business work well. Enter franchising.

I'd never had anything to do with franchising, and didn't really understand how it worked. We met Rod Young, a franchise industry consultant, through a friend of a friend, and approached him to advise us in setting up the Boost Juice franchise. I always think that if you're going to do something, you should do it right, and getting Rod on board to help us avoid some of the basic mistakes in franchising was a good thing for us in the early days — at the time, he was the best in the business.

Another important factor was getting the right franchise manager. I've always seen our franchise manager as the gatekeeper of the Boost Juice name. I imagine her standing in a knight outfit (with a very sharp sword) on a plank outside the Boost castle, and I know that she will not let the wrong people into my business (or our business, as she would say). We do not tolerate mediocrity. Believe it or not, the best decisions we have made involve the people who are not with us!

For Boost Juice, franchising has been a wonderful way to get amazing people into our business and to create ownership in individual Boost stores. We call our franchisees ‘Boost partners' and in a sense that's what they are. Franchisees pay Boost an ongoing royalty — a percentage of turnover — for the right to use our brand on a single store. They are buying into the brand and the support we give them. The statistics are very straightforward and, overall, you're more likely to run a successful business if it is a franchise business; however, buying a franchise business is not a blanket guarantee.

As the franchisor, we get two major benefits from the relationship. The first is growth of the brand. (We were listed in BRW in early 2005 as Australia's fastest growing franchise network.) The second is the quality of the people you bring into your business to run the individual stores. Both the franchisor and franchisee have the same motivation to be successful, and both parties have everything on the line to make it work; this is a great motivator.

It's not easy to become a Boost franchisee. We are known within the franchising world as being incredibly selective — and we're proud of that. Our existing partners, in particular, love this reputation because they know that any new partner has undergone rigorous assessment. Our selection process for new partners (new franchisees) is one of the most robust and rigorous within our industry. Our dedicated franchising team receives over 400 enquiries a month; of these, one partner is likely to receive keys to their own store. We are fortunate to have an incredibly engaged partner group who have an appetite for further expansion and often snap up new Boost opportunities before they are available to the public.

When selecting a new partner, we are not prepared to settle for mediocrity; our process helps us to get the right people in our business, and ensure our partners are aligned to our values. Our brand is our greatest strength, so we do everything we can to protect it.

Shortly after a new partner has been approved to join our network, they will undertake a three-week intensive training program. This in-depth training program encompasses subjects relating to business management, operational excellence and the customer experience.

Consistency can be a challenge when working with over 200 partners on a global scale, so we have installed strong quality checks (including mystery shoppers and quality assurance audits) to ensure our brand and product is presented consistently.

This means a Mango Magic will taste the same in Melbourne as it will in Noosa (in Queensland). This may seem like a challenge but to us this is second nature.

We select franchisees based on the philosophy, ‘It's not necessarily about where they've been, but where they want to go'. We have some partners whose previous retail experience has made their transition into our stores quite smooth, and also many others with no previous experience who have taken it all in their stride and ended up operating very successful stores. The only common stream among the partners is passion for the brand, following the system and understanding the concept.

I have heard a lot of stories about partners who have cried tears of joy at the news they've been approved as a Boost franchisee and, on the other hand, stories of unsuccessful applicants who have phoned to rant and rave (including one person who sent Boost a doctor's invoice because his wife had to be sedated after hearing the news of their fate).

Boost's recruitment process is transparent. On the Retail Zoo website, we've posted answers to about 90 per cent of the questions we're most frequently asked, including how much it costs to become a franchisee. (You can find these and other resources at www.retailzoo.com.au/franchising-information/.) The application is quite an intense process. After filling out a ‘Quick Expression of Interest' online, applicants have to fill out an eighteen-page questionnaire and send it to us with an application fee. We then call them for a chat. That's the start of the process. There are then more stages to pass before approval is granted.

As mentioned, once franchisees are in the system, they take part in a three-week training program. They work in their store with one of our experienced people for support. They have full access to our team and we do our best to ensure they succeed.

Mixing up your marketing

It is no accident that Boost Juice achieved 94 per cent brand awareness in juice and smoothie drinkers in Australia in just five years. After all, having a terrific product is pointless if nobody has ever heard of it!

Much has been made of Boost's marketing and, the truth is, it should be. We weren't the first juice bar, but we were the first in most people's minds. At one point, there were 47 different juice bar brands vying to be in the top two to survive. Boost was the brand that made it through.

It may be old school but the philosophies of Ries and Trout, covered in their book The 22 Immutable Laws of Marketing, were followed to a T. This is marketing defined simply as ‘find out what customers want and give it to them' — but it's only half the story. The other half of the story for Boost was finding things that customers could talk about and giving them to them. So consumer desire and innovation became our mantra.

Early on, so that we had a flag for our team to point to, we came up with the ‘Boost JAM Factor', which still stands today. JAM stands for Juxtapose, Assimilate and Make your mark, as follows:

  • Juxtapose: If the other guys do it, we don't! What can we do because we are small and don't answer to a marketing committee? Things like the ‘What's ya name?' game (where customers receive a free smoothie if we call their name), or ‘Boost Vibe Challenges' (where customers do crazy stuff for free smoothies). Another promotion that was a huge success for us was the ‘Give away a Boost store' promotion. We ran this in conjunction with a major radio station, and it formed the station's major rating promotion for the year. The concept was a bit like MasterChef — we short-listed 100 people and then worked with these contestants and, eventually, through a series of workshops and interviews, reduced the list to ten people. We then reduced the list even further, until we got to a final three, all of whom were given a key — and the person with the key that opened the door to the store owned it. (We were worried that the winner may end up not being satisfied with the win — after all, not everyone is suited to being a business owner; it's hard work and not everyone understands the reality of running your own business. So we had a fallback — in six months, the person could choose to keep the store or take $50 000.) The exposure from the promotion was incredible — sales in the state in which the promotion was held went up 20 per cent and we received over $1 million in free advertising. These are all things that the big guns of the world couldn't do, and they're innovative and new food retail ideas.
  • Assimilate: Find ideas everywhere and from anyone at any time. Tweak these ideas, twist them and blend them into another ‘by Boost' idea. Never stop searching and assimilating ideas from the Boosties (staff who work in the stores).
  • Make your mark: If you do something, do it big! Don't be included in the ‘and thanks to …' list with eight other sponsors. Do one big thing great, for maximum cut through.

Using this basic formula, we smashed into the minds of Australian youth, and they loved it. These Australians are now in their thirties and still drinking Boost.

Why our marketing strategy worked

Here are some of the reasons our marketing strategy worked (in no particular order):

  • Vision: ‘Love Life' was our soul. If something could make people smile, we had licence to do it.
  • Loyalty: Our Boosties believed in us and were proud to work in our stores. Because of this loyalty, ideas were well executed in store.
  • Saying yes: We told staff to not think too much about an idea, just have a crack, and say yes! Some of our ideas may not have become a reality if we had put them to a vote.
  • Radio: We couldn't afford television advertising, but radio was incredible for building our brand. We still only buy breakfast spots on high rotation.
  • Pillars: We know what supports our brand: taste, the experience, health and me. If even one of our pillars gets a crack in it, we put energy and focus on it and fix it.
  • Brainstorming: We allow for the energy flow of an idea, and let even the craziest idea have its space to grow and develop into something magical. When one of the team suggested doing a kids' cup promo with The Wiggles six years ago, it was so ‘off brand' for our hip little Boost brand that I had to try very hard not to blurt out, ‘No, stop!' The team member worked on it, came up with a vision of how it could all work in harmony, and bingo — we nervously proceeded into one of the best things we still do today.

It's important to push the boundaries philosophically. It's my objective that Boost will have a huge impact on the health of our society — a society that's becoming increasingly overweight. Research indicates that the increase in obesity in children in Australia is in line with the growth in fast-food outlets. I think I'm in a very exciting position to make a difference in the future. If I can create a trend in health and make Boost a phenomenally successful healthy product, perhaps others will see that there's money in health, and they will make more healthy products. I think it's already happening. By promoting our ‘Love Life' idea, we're driving home not only brand extension, but also life expansion!

Getting the edge

In addition to creating strong systems to manage your operations and then marketing your business in an engaging way, you can do several things early on that will make your business run more smoothly and increase your chances of success. Here are the top skills and principles you need to master to lead your team and give yourself that extra edge, and really boost yourself and your business.

Delegation

Do the words ‘control freak' mean anything to you? Okay, I was a huge control freak; I needed to be across everything and needed to know everything — and that is okay if you are running a small team and business. However, if you want to grow a business, you have to learn to hire great people and delegate. Geoff Harris told me once that very few people can take a business from inception to a multimillion-dollar business, and I can see why. You need to change how you think and work as your business grows, as it will have different needs from you — and if you cannot change, you will not be able to be that person who can manage a large business.

For a leader, a lack of delegation shows bad management skills; you cannot grow without trusting people to be able to do a great job, and if you hire well they will be able to do the job better than you.

When Boost first started, I did everything myself. I had to — there was no-one else to do it. There are still days, I admit, when I think, It would be quicker if I did this myself. However, I know that I simply don't have the time to do everything. Who does? If I tried to do everything, I'd succeed at nothing.

Of course, I have high expectations of those to whom I delegate. I never choose someone simply because I feel I should, or because that someone thinks they deserve chance. I always try to hand a task to a person who I believe will do a better job than I could do myself.

I also keep a close eye on how people respond to being given responsibility. Do they deliver? Do they keep me informed? Is the project completed on time? It's all about their actions, not their words. I don't want to be told someone can do it — I just want them to do it!

If you find that you're not getting the desired results when you delegate a task, find another person to do the job. Don't feel bad and don't play along to save someone's feelings. Never reward mediocrity.

Have good systems in place to ensure you, and those you delegate to, stay on track. Much to the horror of all of the people who reported to me at the time (and I had sixteen direct reports), when things were really ramping up at Boost I discovered the Task icon in Outlook. For those people who are like I used to be (and don't know it even exists), how the Task function works is that you click on the icon and you add in the instructions to the person to whom you're delegating your task. You can add in reports, emails — anything really. You then add the date for the task to be completed by and the person receives a copy of the delegated task. The person doing the delegating also keeps a copy of the task. I even colour-code tasks based on the people they're delegated to … but perhaps that's the OCD in me.

The Task function was my lifesaver — prior to discovering it, I would have so many balls in the air that deadlines were often missed, there was often confusion on which tasks had been delegated and to whom, and the not-so-great employees benefitted from the lack of follow-up. I started to use the Task system for all my meetings. The rules were simple: I would send you a task with a date by which it had to be completed; you had 24 hours to come back to me if the task was not achievable; if I heard nothing, I would expect the task to be completed. I met with all my reports weekly and we always started with the task list first.

Great people loved the system because it kept everyone on track and on the same page; average people hated it because there was nowhere to hide. If someone missed a deadline, it was there in black and white (actually, in red, because the task goes red when you miss a deadline).

It was not uncommon for me to have hundreds of tasks active. With everything involved with opening over 70 stores in one year, it was critical that everyone kept on track and knew what everyone else was doing. Okay, my obsession with the Tasks function was the standard joke at Boost, and there was even a Christmas skit on my tasking, but it kept me sane and, more importantly, on track.

The key to good delegation is clear communication, with everyone understanding who is ultimately responsible. Setting deadlines is also critical. But when you delegate a task, let the person run with it. Being a control freak, I'm sure that I was probably a bit overbearing in the early days because I wanted everything to be just so, which was not necessarily the best way to go. If you hire the right people in the first place, you can empower them to do the job.

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Pro tips

Here are the components of good delegation:

  • If you hoard tasks, you set yourself up for failure. Remember: if you have chosen your employees well, you are not the only person capable of completing that task.
  • Lack of delegation does not show devotion to the job — it showcases bad management skills.
  • Always give deadlines when you delegate tasks. Ask people if they believe the time frame is reasonable and, if they agree, set up an appointment where they will report on the completed job.

Meetings

OMG! Not another meeting. How many times have you had this reaction to a meeting request? Meetings can be powerhouses of ideas and actions, and are great in some ways, because you can get together face to face and you have a great chance to get everyone on the same page. Especially now that our world is so focused on electronic devices, you can find yourself doing much of your job without talking to anyone. But everyone has experienced people misunderstanding the written word, so meeting face to face can reduce these misunderstandings.

But you can overdo meetings and they can be a huge waste of time if done incorrectly. Sometimes, they can just be a group of people sitting around a table putting off decision-making. The difference between good and bad meetings comes down to tactics.

Always ask yourself if you really need to have a meeting. Once you've established that a meeting will indeed be the fastest and clearest way to communicate with staff, follow these guidelines:

  • Set a start and finish time, and keep the process efficient. Allocating time prevents those rambling, open-ended discussions that are time wasters.
  • Set an agenda. This will help keep the meeting on track and on time. Those attending should be given the opportunity to list their own points for discussion.
  • Brainstorm and write up ideas or key points. Flip charts or whiteboards are invaluable for getting everyone involved. Remember: there is never a bad idea. Encourage input from all attendees.
  • Write down clear actions to be achieved, and next to each point write the name of the person chosen to take care of that task, along with a deadline. By the end of the meeting there should be a consensus of what needs to be done. Minutes must be taken at the meeting, and should be typed up and distributed as quickly as possible. Refer to these minutes at the next meeting to ensure all action points have been completed.
  • Send each person the list of action points as a gentle reminder to complete the tasks before the next meeting or approaching deadline.
  • Get to the point. Respect other people's time if you are giving a presentation; make it slick and make it short.
  • Take it offline. If a discussion is between only two members of the meeting group, the two can meet on that issue after the meeting; do not waste everyone's time on issues that do not concern them.

I remember meeting with someone who was selling me something. I cannot for the life of me remember what he was selling, but I do remember he came into the meeting without an agenda but with a 40-slide PowerPoint presentation. He handed me a copy of the presentation and off he went — each slide was like a novel and he was just reading off the slides. I had to stop him. I then flipped to the last page of the presentation and got the point.

The meeting would have taken almost two hours if I'd just sat there politely; however, at the end of the day, time has to be seen as money. He was a lovely young man, but he did not follow the rules of a meeting. When you're presenting you have to be respectful of people's time. He also thought he was prepared, but it was in all the wrong areas. And he shouldn't have handed me a copy of the presentation. (Never do this — people stop listening to you and start reading.) You need to be clear in meetings and ensure they go for no longer than 45 minutes.

Pro tips

Here's how to get the most out of meetings:

  • Before you call a meeting, decide if it's really necessary. There is such a thing as too many meetings. If you're spending more time talking than you are doing, you may need to reassess your work practices.
  • Meetings can be a quick and easy way to disseminate information or they can be a long, drawn-out discussion that goes nowhere. Follow a strategy to keep your meeting fast and effective.

Assumptions

Are your feelings getting in the way of the facts? You've probably heard that to assume makes an ASS out of YOU and ME. Believe it. When you make assumptions, you let emotions colour your view of a situation. Emotions can blind the smartest people. Some of the assumptions you make about others might be wrong.

Check yourself: are you an emotional person? Do you react to situations, or do you respond? If you react, don't!

A reaction is explosive. There have been times when I've been told a story by one person and reacted by ringing another to blast that person. Then, when the second person's side of the story is put forward, I'm left feeling foolish. No doubt you also have to admit that at some point in your life you've jumped to an assumption and, in your mind, have built a situation up to something it is not. And then you discovered that what you'd assumed was not actually quite right.

I had an executive who used to tell me various things that people were saying or doing in the business. As I trusted this colleague at the time, I would often get angry and act on this information — to then find that I had been told a half-truth. People don't necessarily mean to lie; they may only give you their version of events — a filtered view. When you're handed the objective facts of a situation, or told both sides of the story, a knee-jerk reaction is often out of place. A response is more measured. In this case, you wait until both sides of the story are in front of you before choosing how to reply. I learned quickly that you should always wait until you have the whole story before you act. Acting on wrong or twisted information is a fast way to ruin that great reputation that you have worked hard to develop.

There's no doubt about which of these actions is more professional. Be a person who responds, rather than reacts. Learn to sleep on situations. Keep that angry email in a draft folder for a little while before you hit send. You must also ask questions. It comes back to my philosophy that no question is silly. Asking questions means that you are not making assumptions. It also means that you will have all the information you need to make (hopefully) the correct decision.

Pro tips

Here's how to stop yourself jumping to assumptions:

  • Think before you speak. Yes, the story you're hearing may seem outrageous, but you may not be hearing the whole story.
  • Try not to make assumptions of any sort — whether you're assuming that someone else will fill the empty printer tray or that a staff member knows what you're thinking.
  • Try to keep your negative emotions out of the office, particularly if you are the leader. As the boss, my emotions set the daily tone for the entire office, so it's vital that I keep positive.
  • Treat everyone with respect, and respect will be returned

Principles

Frankly, you can't run a business without principles. Set clear principles for your organisation and stick to them. What does your organisation stand for? What is its moral fibre? If every staff member knows the answers to those questions, your company will have a united front. Of course, your mission statement will evolve over time. As your company grows, so too will your perspective; however, your core values should stand firm.

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What do your goals and principles look like? Write them down; the power of doing this is phenomenal. The following outlines how our goals and values look at Boost.

The goals of Boost Juice bars:

  • Make certain everyone operates by the same principles.
  • Have a clear and concise mission statement.
  • Build leaders rather than managers.
  • Hold to the highest possible standard of ethics.
  • Have a clearly defined organisational structure.
  • Encourage the development of character.
  • Develop a broad award program to highlight achievements.
  • Build morale to foster enthusiasm, devotion and esteem.
  • Respect real-world experience; respect the team on the frontline.
  • Have an ongoing formal training program in place.
  • Inspire positive action in suppliers, franchisees, staff and customers.

Boost Juice believes:

  • Decisions must be made by individuals, not committees.
  • Executive staff should present solutions, not just point out problems.
  • We must analyse exactly what the consumer wants.
  • A business plan is a road map from here to there.
  • Creating a strategy is 10 per cent of work; execution is 90 per cent.
  • Having clear standard operating procedures reduces confusion.
  • Any written communication should be kept simple.
  • All briefings should be brief and to the point.

Remember — business is like a living beast: you may think you have the right culture and everyone is living by the right principles and then a number of things go wrong and you realise you are off track. This has happened many times in my business — as it has with raising our children. I find with my kids that all seems to be going great and then one day they are out of control. I've realised that the thing that has usually changed is not my children — they've not suddenly become feral — but me. I had lost focus and hadn't followed through on the principles that I live by as a parent and leader of a business. You quickly find yourself surrounded by chaos when you lose sight of the vision. You need to continue to check yourself to make sure you are consistent with your message and your actions.

Pro tips

Here's how to make sure your principles are consistent and maintained:

  • Every organisation should have clear principles and goals, and these need to be communicated to all staff. These principles and goals ensure that your team members understand what's expected of them.
  • Periodically, you also need to check that your and your staff's behaviour matches up to your core principles and goals. Sometimes everyone can get caught up in the day-to-day chaos, so it pays to step back and assess from time to time.
  • Make your principles and goals clear during the hiring process. Companies often spend a fortune on outside experts on culture, trying to get staff to have the same principles as the company. You're wasting your time and money if you have not hired people with the right principles in the first place.

Ramping up

Here's how to really keep yourself and your staff in line with your core goals and beliefs:

  • Write down your top five goals and put them in the front of your diary. Goals that are written down are more likely to be achieved.
  • Also write down your core beliefs that work in with your goals and are going to help you achieve them. The mind is a powerful thing — you choose your core beliefs, so choose good ones. You also choose whether you're going to follow your goals or not, so simply choose to follow them — it is no more complicated than that.

Respect

Respect is much harder to earn than dollars and it can be more valuable. Respect cannot be bought, sold or traded. You must earn it. In my opinion, having the respect of peers and staff members is the most valuable goal to which a manager can aspire. Your employees don't necessarily have to like you; however, if they respect you, they will listen, understand and cooperate. They will trust in you. If your staff believe what you say, they will follow your instructions. If your customers believe in your product or service, they will buy it.

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Showing respect for others is equally important, and the more you do so the more others will give you respect in return. Being an attentive listener is the first way to do this. Never interrupt or mock people when they have found the courage to speak. They believe in what they are saying and you owe them the space to air their thoughts. Try to learn something from them or something about them. By encouraging people's opinions and ideas, by sharing in their successes and not blaming other people when failure occurs, you will earn their respect. Also, if you value other people's time, they will acknowledge that your time is important too.

Always put yourself in the place of the people you're dealing with, and treat them as you wish to be treated. If you give them the respect you believe you deserve, you will find that others begin to treat you in the same manner.

This is particularly important with creditors and debtors. Pay on time and keep the wheels of commerce rolling! You want to be paid quickly, don't you?

Let me give you an example. We'd worked with a particular supplier from the very start — the relationship was great, we liked the company and its staff went above and beyond to ensure we always had supply. This was until the owners sold the company. After this, the relationship started to sour — the new owners were inflexible and did not return calls. The relationship got to the point that we needed to cancel the contract simply to guarantee supply. A meeting was called and a very tall man came in. My hope was that we could either resolve our problems or part company with respect. His strategy was to threaten and use heavy-handed tactics.

From the moment he sat down, there was no respect in the room shown by him for me, which in turn ensured that none was shown for him. It inevitably ended with the only winners being the lawyers. The shame of the whole episode was that if both parties had worked together with respect and with a firm commitment to resolve the problems, it would have ended in a win–win.

If all negotiations are based on respect, even if you think that you got a raw deal, you know that in the future it will all work out. I would much rather be respected than liked. Great leaders are respected. If you are always looking to be liked first, you will find that respect will eventually dwindle.

Pro tips

Here are the components for building respect:

  • If people respect you, they will believe in you. This is the cornerstone of good leadership.
  • Respect is a two-way street. Treat people with respect and they will respond in kind.
  • Attentive listening is an important part of showing someone respect. If you are distracted, people can quickly pick up on that fact and it will make them feel unimportant to you.

Confrontation

Most of us will go a long way to avoid a confrontation (yes — I'm talking to you!) and I used to be exactly the same. Now, however, I've learned to deal with unpleasant situations. I face up to difficult problems at the beginning of each day and get them out of the way. At Boost we call it ‘eating that frog', a phrase one of my executives picked up from a book by Brian Tracy.

You won't earn respect for being inactive and pussyfooting around an issue because you don't want to clash with someone. I used to hand some of the more difficult situations at Boost to my husband Jeff (who thrives on confrontation). Now, I see that confronting these issues can be an amazing and cleansing experience. The key is choosing the right way to fight.

A calm manner gives you the upper hand in any argument — if you show control of yourself, you will be in control of the situation. Keep your voice level, your eyes directed at the person and speak clearly and concisely. It's very difficult for your opponent to speak or act aggressively towards you in the face of such composure.

Make sure that you have all the facts you need at your fingertips. I will only get into a confrontation if I have right on my side. If that means I need time to prepare, I will avoid having the discussion until I am ready.

And remember, confrontation does not have to be an argument but rather can be a discussion about different points of view — and it can have a positive outcome! Bully tactics may win a particular battle, but they will lose the respect of all those witnessing or involved in the discussion. There are two sides to every argument. Try to understand the other point of view because, believe it or not, you could be the one in the wrong.

Pro tips

Here's how to deal with confrontation:

  • Aim to ignite and extinguish an issue in one meeting. Have the confrontation face to face, and keep coming back to the facts to support your point of view.
  • Always attack the problem, not the person. If you can avoid injuring egos during the exchange, the relationship will always recover much more quickly.
  • Don't take it personally. I've always found this difficult, as I am a passionate person, but I've learned to follow this advice. You cannot respond in a calm and intelligent manner if you take things to heart.

Ramping up

Here's how to take your confrontation skills up a notch:

  • Take notes during your business dealings. If a confrontation brews, you can avoid a ‘he said–she said', mudslinging match by showing supporting evidence that backs your position. Remember — you cannot have enough written support.
  • Avoid email fights because they can be misread — and they could come back to bite you later.

Money

William Shakespeare knew what he was talking about when he said ‘Loan oft loses both itself and friend', and nothing much has changed in 400 years. It's always easier to lend money to a friend than it is to get it back. Don't do it! Learn to say no.

If you're running your own business, also learn to say no to any unnecessary consumption in the short term. For the first three years of running Boost, I didn't take anything out of the business, not even a salary, and I put everything I could back into the business. During those years, we lived in a rental property with three kids and the business. Everything was on a budget.

When you start a business, suddenly you have lots of friends who want freebies. Start how you intend to finish. Even to this day, I pay for my smoothies and juices and, if I shout someone, I pay for it. In a cash business, you can be tempted to take money or give a mate a free drink, so the easiest way to stop this is to act in the way you want everyone to act. You may feel like a tight arse for not giving your friends free stuff, but all these ‘freebies' cost money — you pay for them. Do not feel guilty about charging for products and services. Keep your friends, family and business as separate as you can.

Pro tips

Here are some things to keep in mind about money:

  • If you build a reputation for never lending money, it will be easier to say no to requests. When I invest I make it clear, like Geoff Harris did when he started with me, that I am not a bank. The business needs to run as a business and together we need to solve the money problems of the business.
  • Offer your time and advice to those seeking help; those forms of assistance are much more valuable than cash in the long term.
  • If running your own business, try to forgo short-term gratification for the long-term success of your business. Ask yourself whether certain personal purchases really need to be made or whether the money would be better invested in the business. Every cent spent should return double. Ask yourself: is this expenditure really necessary right now and will it return me profit?

Negotiation

A negotiation is not successful unless both sides feel they've won. In line with this, two elements are vital to a successful negotiation:

  • Information: Do not go into a negotiation with only your point of view. Understanding the other party's needs is equally as important as understanding your own. Ask yourself, ‘What do I feel is reasonable?' or ‘What would I want if I were them?' This will allow you to counter the opposition's arguments before they are raised.
  • Lack of emotion: The only way to negotiate a great deal is having the ability to walk away. The only way to know if it's a great deal is to listen, listen and listen. Never let your heart rule your head in negotiations. If you are emotionally attached to something, you will give away too much. This holds true whether you're buying a house or making a business deal. Try not to take the proceedings personally. It's difficult, but try to think of yourself as a third party.

Negotiations take an enormous amount of courage and a very clear head. You should always ask for more than you want and then negotiate down. Don't give away your minimum requirements — you may end up with even less. Also, don't favour the same weapon over and over; it will become less effective each time you use it. The more options you have, the more power and control you have.

I remember my first major negotiation — we took on a small juice chain in Queensland that had started up with the name Juice Boost. In the end, we paid for them to change their name and we bought their trademark. It was a win–win situation. We had to pay, but it was worth it to retain the purity of our brand. We had right on our side and got the best out of the deal!

I have negotiated all sorts of things — including bills from lawyers who in my opinion have overcharged me (perhaps not surprisingly, this happens a lot), multimillion-dollar master franchise agreements and sales of businesses — and the biggest thing I have found is that no negotiation is the same. The greatest skills you need in any negotiation, however, are emotional intelligence and the ability to be a really (really) good listener. If you listen more than you talk, you will hear what the other party wants. The other great skill in negotiation is putting yourself in the chair of the person you are doing business with. (Remember — the best negotiation is when everyone wins. If you cannot put yourself in the other person's shoes, you should not be negotiating.)

In 2005 I was in Dubai with Jacinta, negotiating a master franchise agreement with a party we thought would be a great company to open Boost stores in Dubai. We wined and dined with their sheikhs, we listened to their needs and we presented our business with the passion and enthusiasm that we have for the brand. The business spoke for itself — it was a sexy brand, and was in the wellness category from a country that is perceived to ‘love life'. They had the contacts and experience to launch the business in the market and were ready to move into the wellness category. We negotiated the contract while we were there, constantly working on the memorandum of understanding in our hotel room. I remember being with Jacinta in the airport on the way home when it was all over, not quite believing that we had completed an amazing deal to launch Boost in Dubai with a party who had never seen a store.

Pro tips

Here are the core elements of great negotiation:

  • Learn as much as you can about the other party. If you're negotiating with a public company, you'll find that everything you need to know is easily available — from information on the shareholders and senior executives to the company's profit forecasts. Information is your key weapon.
  • Try to stay detached during the negotiation. Emotion has no place when you're making a deal.
  • Put yourself in the opposition's shoes. This will help you to counter their arguments and provide a win–win solution.
  • Know what you are prepared to accept, but never give away your minimum. Aim high and negotiate down — never the other way around.

Success

There is a price to be paid for success. No-one achieves their goals and dreams without giving up something. But can you afford not to try?

What have I given up? A hell of a lot of time — time with my family, husband and friends and also time on myself! Is it worth it? For me, yes. That's because the results are not just financial success — I also love the journey of creating something special, as well as the mental stimulation and the chance to follow creative pursuits. My success has made me a better, more rounded person, and I wouldn't have given up what I did if I didn't want to. Sometimes when I'm torn between work and family, I feel like I'm robbing Peter to pay Paul, but it comes down to what's worthwhile for you. My whole life has been a pendulum, trying to get the balance right, but that is what makes life interesting.

If you want to follow your dreams, you need to be prepared to make sacrifices; you must decide what you're willing to put in. Many people expect luck to deliver them a fortune — well, I've got news for them and it's all bad! Success does not just come about magically — you have to make it happen, and that means giving it everything you've got. With any luck, your hard work will pay off. It has for me and I have no regrets. I have a great life and nothing to complain about. Can you ask for more than that?

Of course, success means different things to different people. My sister Lisa is 21 months older than me, and I remember being in the car with her when she was 17 years old. She said then that what she wanted in life was to find love, get married and have a family.

Lisa has never not got a job she went for, and at every job she gets they love her. However, even now her family is her success — I look at her three girls and her husband, whom she loves, and I really see success. Happiness is success, not dollars. I am sure that Lisa has never looked at me and my business success and wanted my life, because she is already happy and successful. I am successful because I have a husband I adore, and kids who are all individual and amazing — because that is what makes me happy and that is my success.

Pro tips

Here are some things to remember when chasing success:

  • Be prepared to give your all to achieve your dreams.
  • Success is not just monetary (or sometimes not even). Do what you love, and the financial rewards will come.
  • There are no fairytales — there is just damned hard work!

Credibility

Credibility is easy to talk about, but difficult to come by. One thing is certain, however — credibility is vital in today's business landscape. In this electronic age, with the information and awareness that is out there, you can't fake it.

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What is credibility? It is a general opinion held by others that you ‘do the right thing'. Your credibility should be part of your reputation. How does a young entrepreneur or business attain credibility? Well, there are a few operational basics.

First, you must demonstrate that a real organisation is behind your company. Highlight the expertise you offer and the services you provide. Show potential customers or associates that honest and trustworthy people stand behind your brand. Make sure your company is accessible, transparent and easily contactable. Ensure that your business premises have a professional appearance and your employees a professional manner.

The next step seems simple but is often more difficult: follow through on your pledges. In my position, I get promises every day. Initially, I take people's word that they will do what they say — and then I wait and see what happens. Do they get back to me on the day they said they would? Do they deliver the expertise they've presented to me? If not, their trustworthiness immediately starts to wane. Your business will achieve credibility through actions.

I expect a few young guns are reading this book, so here is the best piece of advice I can give anyone who is under 35: you are just playing at business. You cannot hope to understand all the complexities and issues because many of you will be facing them for the first time. You may be thinking, How dare she say that? What would she know? I know because that is what I was doing, learning about it as quickly as I could. In the early years, you are learning every day and the more you are in business the more you know what you do not know.

Don't get me wrong — the older business heads love your energy and enthusiasm to attack the day with vigour and purpose. But don't for a second think your smooth-talking, fast-thinking ways have anyone fooled — unless, of course, you have complete credibility.

I have been in many board meetings (and on Shark Tank) where hot young executives come in to present their big plan that's going to change the world. The old heads listen intently, enjoying the show. They nod approvingly and the young execs leave — and then the old heads tell the truth about their impressions of the performance. And trust me — it can be more scathing than the judges on reality talent shows (including Shark Tank!). The success or failure of the young gun will come down to one word: credibility. Were the person and, more importantly, the information and evidence of success presented credible? Remember: to be incredible you must be credible.

Pro tips

Here are the most important components of building your credibility:

  • Credibility grows from honesty and transparency. If you start with a measure of integrity and throw in some hard work, delivering on your promises, positive results will begin to flourish.
  • Don't overcommit. When you're starting out, it is often difficult to say no to work or to clients. Unfortunately, this can mean you take on so much that you can't deliver the right results to anyone. Your credibility will be shot to pieces before you even begin! Promise only what you can definitely supply — or find a way to make it happen!
  • Credibility must emanate from every level of a business. Once again, it comes down to finding the right people for the job. If you believe that an employee is not delivering and is causing holes to appear in your reliability, be rigorous in fixing the problem.

Communication

Everyone talks about good communication … but how do you go about it? When we think about ‘communicating', most people tend to have talking in mind. However, communication comes in many forms, including verbal, social media, email and other written communication (remember that thing we used to do?). Given that we spend so much time emailing and texting, it can be overwhelming when you're faced with the prospect of speaking to a group of people. You don't have an opportunity to ‘backspace' or ‘delete' if you blush, stutter or stumble through a speech.

Good presentation skills offer you the opportunity to leave a positive and lasting impression on others. You don't want to be remembered for the number of times you flicked your hair or adjusted your tie. If you are, your message is hopelessly lost. Make no mistake — the audience will judge you on your performance.

Do you need some work in this area? Not sure? Try taking a video of yourself in action. Is that the image you want to project or are you cringing at your performance the whole way through? (Don't worry if you're a bit embarrassed by the sound of your own voice at first — most of us are.)

Confidence is the key to a good presentation and you can gain the poise you need by practising and refining your skills. Plenty of courses in public speaking are available. They cover all the essentials — dealing with nerves, projecting your voice, cultivating the right image through your appearance, delivering your key message and the secret of the ‘pause' — as well as other skills you can nurture and adopt.

Most tutors will advise that your natural style should not be changed completely. The best course of action is to refine and improve your inherent ability. If you attempt to adopt a totally foreign persona, you will come across as insincere. This is an important aspect I have learned about communication and developing your communication style — be true to yourself. It's fine to take tips from other people, but still do it in your way.

I have been asked to tell the Boost story a number of times and, in the early days, I could never quite do the story justice — the way I told it just wasn't quite right and I knew I wasn't communicating the ideas clearly enough. Then I saw a presentation by Simon Hammond, who had put us in his top 20 list of wonderful brands. He is one of the few people we have come across who truly understands the power of the brand.

We heard he did a great presentation on brands so we asked him to present at our annual conference. His presentation was wow! It was a show, complete with music and interesting snippets from the internet on marketing ideas. He made us laugh and almost cry with the emotion of his presentation. I was so impressed that I asked him afterwards if he could help me formulate my story into a great presentation. We spent weeks (and weeks) pulling it together and getting to the truth of the story, and also the true essence of what I am naturally like as a presenter.

We found my presentation could vary greatly from day to day, depending on the audience. In essence, I was a confident player if I felt like I had engaged with the audience — if they laughed and nodded, my presentation was pretty good (if I do say so myself). But if I didn't feel like I had connected with the audience, it was normally a disaster. Simon assisted me with understanding who I am and what my natural style is, with the added help of a few videos and props to ensure my communication is consistent. The main point has always stayed with me — whatever you do, be you.

Of course, these days much of our business communication is non-verbal, or at least not face to face. By investing in the latest technology for your office you will speed up the flow of information. Embrace new technology and make it work for you.

Ask your colleagues, associates and contacts how they like to communicate, and work within their preferences. Some people like the effortless speed of an email; others favour the more personal touch of a phone call.

Regarding email, be sure to investigate correct etiquette and read your emails thoroughly before clicking the ‘Send' button. (Be wary of ‘Reply all'!) Be courteous and remember that the ramifications of an email can be with you a long time; email can be subpoenaed in a court of law!

On the subject of phone calls, don't do anything else while talking to someone on the telephone — it degrades the conversation. The sound of your fingers typing on a keyboard is a sure sign to the person on the other end of the line that you place little importance on the person and the conversation.

Pro tips

Here's how to polish your communication skills:

  • A professional speaking or presentation course is an investment in your business future.
  • Be professional in all your business communications, be they typed or spoken.
  • Learn to use technology to your advantage.
  • Give all your attention to the person to whom you're speaking, whether it's face to face or on the phone.
  • Treat email communication with care. It may be an instant medium, but the message can come back to haunt you.
  • Poor communication is the number one reason for conflict.

Customers

As Boost has grown, I've found that I've gotten further away from the ‘on the ground' customer experience. As the manager of a growing company, you ultimately move on to the next level of development in your business, delegating tasks to others. You become more removed from the day-to-day running of the company — and you can miss the simplest problems. Try not to make this mistake and never be a stranger to the frontline. Don't ignore the very hand that feeds you.

I work hard to counter any movement away from the frontline. It's vital to continue to tap into the root of your business, and for me that means going into a random Boost store and queuing up with the other customers. Or when I'm in the office I might answer a ringing phone — any phone. If it's a customer wanting to vent frustrations or even give positive feedback, I talk to that person one on one. I ask questions about the company and the level of service received; I ask for people's opinions. It's a simple task, but an extremely valuable exercise because it allows me to derail potential problems that may be quietly simmering away.

One tool we use to encourage feedback is our Boost Juice guarantee. Every store displays this guarantee, and you can also find it on our website. If you do not have a good experience, let us know and we'll fix the problem. And we absolutely do fix it, every time. What's more, we offer customers a number of easy ways to get in touch with us, and we employ several staff members to take care of customers and respond to customer feedback, including one full-time staff member, a weekend support person and two social media coordinators.

Resolving customer complaints immediately and effectively is critical; our policy at Boost is to respond within 24 hours. Customers are usually so grateful (and surprised) to receive a response, their problems are easily resolved. This is a vital and mostly unseen part of our marketing strategy.

Whole books are dedicated to the subject of creating and keeping loyal customers, so the main thing I am going to stress is this: love your customers; truly love them. And if you are the leader of your company, make sure that every day you find out what your customers are thinking and wanting; this knowledge will flow through to influence all your behaviour.

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Get angry when your customers aren't treated well, and fix every customer problem with vigour — they are your life support system. Hire frontline staff who like people. Every Boost store has a multitude of talented people, specifically chosen for the role they need to play in the customer's experience. We've even given each role names. ‘Eva', who is bright and bubbly, is on the front counter greeting the customer. ‘Ian', introverted but super-diligent and process-orientated, is making the smoothies. And finally ‘Beth', a real extrovert, is on the last station — pour up. This person is the last impression customers get of the brand, so (hopefully) she hands over the finished product with a big smile. We don't always get this process right, but it is indoctrinated into our belief and it is what we strive for.

Make the love of your customer an absolute pillar of your company's beliefs and you're on the way to success.

Pro tips

Here's how to focus on your customers:

  • No matter what your position in a company, never take your customer base for granted. Keep in touch with your market and respond quickly to its needs.
  • Small problems can become large if not dealt with quickly. Put systems in place to ensure customers never feel ignored.
  • Customer liaison is vital, and should be part of your marketing strategy. Word of mouth is your best friend — and can be your worst enemy if you don't address issues.
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