Chapter 4
Confidence

That night, Eric emailed Carl Vaughn, letting him know that the first token he'd received was, indeed, opening his eyes and broadening his perspective. He mentioned that he wasn't quite sure where this illumination process would take him, but was excited to see what it would expose and how he could use the information to build his business.

He spent the next day at Carl's cabin, pulling down some ceiling beams and floorboards that were in great shape. He was certain that he could integrate the pieces into his cabin in such a way that they no one would be able to tell they hadn't been there since day one. It was part of the challenge and the beauty of what he did, making each construction project look as if no detail had been overlooked.

As the day wound down, he walked back the narrow lane to his mailbox. Thumbing through his mail at home, he separated the junk mail from his bills, one of which caught his eye. It was a recurring bill for an ad he'd been running in a construction industry newsletter for the last year or so. Without thinking, he automatically reached in his pocket for his checkbook to pay the next installment, but then he hesitated.

Hmm, I wonder if I'm getting any return from this investment.

Eric contemplated the answer to that question. Had he received any business from placing an ad in this publication? And if so, did it justify the cost?

Each question seemed to spur another, and Eric knew precisely what he had to do—illuminate. He had to find out what wasn't working before he could focus solely on what was working. Grabbing a pen and pad of paper, he listed all of the new clients he'd taken on since he'd run the ad.

What he learned was enlightening. He always asked new clients how they got his name, and none of them had mentioned the ad. It was quite telling. For one thing, he was advertising in a construction magazine, a publication homeowners weren't likely to see. And all of his clients had told him that they'd gotten his name from people they knew, who had hired him in the past.

All of his new clients had come from referrals, and any other jobs were from repeat customers who had been happy with his work. He'd had this information all along but had faithfully renewed his ad, hoping that it would attract clientele. And it hadn't.

He wondered what to do with this information—obviously, the advertisement wasn't in his best interest, but what was? If referrals were his most effective method of marketing, how could he get more?

Then it hit him! What if he used the money he'd been spending on the ad to give his clients an incentive to refer him to their friends and relatives? It didn't have to be a lot—maybe $50 for each referral—but it would be a good way to show his appreciation for their loyalty and support, and it just might bring him a few more clients.

Grabbing a pen, he wrote the word “Cancel” across the invoice and inserted it in the prepaid envelope that accompanied it. Then he made a list of all of the clients he'd had in the past several years before sitting down at the computer and writing a letter thanking them for their past business. To express his gratitude, he included an offer of $50 for every referral that became a new client.

It was a new marketing tactic, but Eric felt good about it. There was absolutely no risk, with a probable likelihood of gain, at least more so than running a blind ad that had never produced results.

He printed out his letters, signing each one and hand addressing the envelopes. It was a personal touch he hoped would resonate with his clients. At the very least, they'd be less likely to assume it was junk mail and throw it aside. Admiring his stack of envelopes, he placed them on the table next to the front door so he would remember to take them to the post office.

The next morning, Eric made his coffee and checked his email, surprised to see that Carl had replied.

Eric,

I am pleased that you are shedding light on your first token! I specifically chose Illuminate because it is a process, not just a step, and it can and should be used when you are using the principles addressed in future tokens. You see, in every business strategy or philosophy, we must not only determine what is working, but we must also focus on what isn't working well so it can be fixed. Problems do not go away when they are swept under the rug. Oftentimes, they become larger. By shedding light on them, though, you will be able to address issues before they negatively impact your business.

That said, you will find your next token in a likely spot—under the rug on the front porch!

Your friend,

Carl

After taking his letters to the post office, Eric made the return trip to the cabin, stopping first to get his next token. It was like a scavenger hunt, and Eric was finding that the game was fun. He lifted the mat at the front door, where true to his word, Carl had left one wooden token. Picking it up, Eric rubbed his thumb across it, exposing one word: Confidence.

Confidence? Eric had always felt confident, so he wasn't sure how this token applied to him. He had never doubted his skills or his abilities. As a matter of fact, he took pride in them. Maybe this token was a fluke and didn't relate to him, he thought, sliding it into his pocket.

That afternoon, Eric realized he was running low on supplies, so he made another trip to the hardware store. Even though he wasn't a commercial or industrial contractor, he was a vendor, so he had a running business account at the store and was known by the employees, who were always more than helpful and friendly.

“Hey, Eric. How's it going? The cabin coming along okay?” asked Gene, the assistant manager.

“It's coming along, slowly but surely,” Eric replied. “Actually, I'm about ready to strip and refinish some floorboards. So I'll need to rent your industrial sander and buffer.”

“Well, you are moving along. Let me know when you're finished—I'd like to swing by and see what you've done with it.”

“Will do, Gene. Now, how much is it to rent the sander? I'm guessing I'll need it for two days.”

“It's not cheap. Actually, Eric, you're better off buying a new one outright. As a contractor, you get a discount, and rental fees are pretty high. If you think you'll ever use it again, I suggest you buy it. It'll pay for itself after just two or three jobs.”

“Hmm, I wish I could buy it, Gene. But I think my credit limit is about maxed out, so I'm going to have to pass. But thanks, anyway.”

“Sit down, Eric,” Gene motioned to a chair near the counter. “From what I can see, you've carried the same credit limit since the day you opened your account here.”

“Uh, that's right. I don't think I qualify for an increase—at least not until my business grows a little bit more.”

“Well, that's where you might be wrong, Eric. You're automatically assuming that we will reject a request for a credit increase. That might not be the case. Actually, we want your business and try to work with our vendors every chance we get.”

“I know, and I appreciate it. But I'm pretty sure that I won't qualify for a credit increase. So I think I'll save myself the embarrassment,”

“Eric, you don't have to be embarrassed. First, you have paid your monthly invoice on time every month for three years. That's a great track record and the kind of vendor we want to do business with. Have a little confidence—it can't hurt to try. And who knows? A credit increase could help your cash flow quite a bit—and it can save you money on things like this industrial sander.”

A bell went off in Eric's head—confidence. Maybe confidence was an issue. What if Gene was right and he qualified for a credit increase, but was afraid to ask for it so he didn't have to risk rejection? What if they said no? But what if he applied and they said yes?

“You know what, Gene, I'd like to sleep on it. So I'll just grab the hardware I need and I'll get back to you about the sander, if that's okay,” Eric said.

“Sure—but I'd really like you to think about it, Eric. I believe we can help you.”

* * *

The conversation was still replaying in his head when he went home. Unable to make a decision, he decided to email his friend, Carl.

Carl,

I found the next token, confidence. At first, I didn't think it pertained to me. After all, I'm quite confident with my work. However, an incident at the hardware store today weighs on me. I was asked if I wanted to apply for a credit increase; however, I am struggling to maintain a steady flow of projects. I'm almost maxed out on my credit line as it is. For the first time, it's come to my attention that I might not be as confident about some things as I thought.

What are your thoughts?

Eric

Carl replied that very evening.

Eric,

Every business owner has had their confidence tested at some time. Usually, that confidence relates to something other than products or services. Confidence is a much broader concept, son. You can have the most amazing idea, invention, or skill, but without confidence, you'll never be able to convince others of its worth. Without confidence, you'll never be able to attract investors. Without confidence, you'll never be able to keep up with the competition.

Knowing that, Eric, can you honestly say that you believe you are confident?

Your friend,

Carl

Eric pondered those questions and realized that Carl was right. Eric did lack confidence in those areas, especially when it came to financial matters or competing with bigger contractors. He couldn't imagine himself asking an investor for funding, much less convincing an investor that it would be a good idea. When it came to competition, Eric admitted that he bowed out and avoided competing with bigger contractors to save himself rejection, embarrassment … but most of all, disappointment.

Am I keeping myself small by refusing to grow my business? I'm reluctant to ask for a credit increase, and I avoid big jobs because I'm certain that I won't get them. What could happen if I had the confidence to sell myself and my business?

Before he lost the nerve, he logged onto his computer to find out.

The first order of business was to apply for a credit increase with the building supply store.

His phone rang at 7:00 a.m. the next morning.

“Eric, it's Gene from Builder's Supply Inc. I thought I'd personally call and give you the news. After reviewing your application and your strong payment history, we've doubled your credit limit. I'm so glad you decided to give it a try—maybe you should have done it a long time ago.”

“No, kidding! That's great. But I'm actually surprised,” Eric replied.

“Well, I'm not—I was confident you'd be approved all along. A little belief goes a long way. Now, when do you want to come in and sign the papers?”

“How about this morning when I come in to pick up my new industrial floor sander?” Eric laughed. “And, Gene, I want to thank you for believing in me when I didn't believe in myself.”

“No problem, buddy. Let this win boost your confidence so next time you won't let an opportunity pass you by. If you don't try, you can't win.”

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