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E-Myth – “Why most small businesses don’t work & what to do about it”

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Edmonton Business Coach | Recruiting Boot Camp 7

Great renewal to the last section here. Um, this is human resource strategy and actually help you know it on the calendar. I’ll help y’all always, always keeping, again, that’s probably just an evaluation form while you’re up there. Right. And I lost my notes doing, I’m going to develop my 10 are you going to channel my inner pedants? Huh? Skills here. So one of the reasons why big companies, small companies up all the time is because they have an HR department and that HR department continually just recruits 100% of, they don’t recruit where they need people that recruit all the time. So they’re always recruiting, they’re all ways, um, interview and they just do this over and over and over. And small business owners, generally what they do is they need someone and then they start looking. So, and really good HR makes mathematical sense. Most people think that HR has like some esoteric thing that won’t make any sense.

But you know, there, there, there are some touchy feely aspects of it, but you know, a lot of HR struck the strategy or just mathematically flight. They’re just non 0.4. So let’s pretend you have this big company here and they have someone to continually interview with people over and over and over again. That’s all they do is they’ve approved, they get, they get resumes in and the [inaudible] now let’s review what happens in the average small business. And I wish I’d have this. Okay. Um, I asked him pulling off. They won’t be good for them, but that’s,

yeah. Yeah.

Well I’ll give you a little story while we’re waiting.

So, um, I do have a personal experience who for someone who would just start, is just starting business and hired an HR agency. Um, there’s nothing wrong with, I’m hiring somebody that’s third party if you can do it personally. But the thing is that as we talked about before, we, we know our own values, but sometimes we cannot communicate it to the other person. So when it happened with this, um, when this business that uh, hired a third HR company, they, they started with a full staff as staff and focused on having full capacity on the first month are sorry for, for the first few years. Now that would be great. If you had some cash that you have lying around to pay employees. And the thing is that if you don’t have to pass, then every time that they come in, the, the employees that are going to come into work are going to expect everything that the age, our agency have problems there that they’re going to get. Which again, it, it sometimes it doesn’t match up with your Edmonton Business Coach values. So an age, uh, on an HR perspective, there is some cost that would go away with it if it’s not done properly.

Yeah. So I’ll just walk through this and what happens in you always be nice to their party, dude, I’ve seen it in spoiler. That’s his goal from marginally acceptable to a complete grenade when they use an HR and small businesses. Um, so, so we’ll business, you know, they’re going to try and do it themselves and you use an HR recruiter, they’re going to charge you 20% of the salary to be 8,000 bucks to get a $40,000 a year person. Good HR recruiter. Um, and you can do it better yourself. So here’s our moneyball HR strategy that actually works for small businesses. That kind of flips the script. So normally what’s going to happen, you’re going to post an APP that’s going to take you an hour. You’re going to review 40 to 80 resumes and social media review. That’s going to take you eight hours, uh, and that’s going to be nine hours.

Now you’re going to phone screen people. That’s going to take you another eight hours to call the people back that you wanted your, now you’re up to 17 hours total. You’re going to call to schedule interviews. You’re going to be four hours on the phone. That’s going to take you. Now you’re up to 21 hours total. You’re going to conduct six interviews because you book eight slots and two didn’t show, and you’re going to do a skills test. Those six interviews, those eight slots of them didn’t feel that’s going to take 24 hours. You’re now up to $45. You’re going to check references. That’s going to take you another two hours, you know, 47 hours. Then you’re going to schedule a second round of interviews. That’s going to take me an hour to schedule it. You’re now 48 hours now or you’re going to conduct second interviews to people for two hours, four hours. You’re now up to 52 hours. So now once you become short handed or someone putting in a half effort, you know, because they are working out there, notice once or twice per year, you now need to carve out 52 hours in your calendar at the worst possible time. So you do this twice a year as 104 hours, $1,000 on ads, and you’re going to see in person 12 people. That’s about how the conventional small business recruiting works. It’s how I used to do it.

And then who’s ever seen the movie moneyball? That’s how the, this is the how the big players do it. This, this is how they’re doing it. But you’ve got somebody who could just do it all day and you going to think if you play like the Yankees in here, we’re going to get beat like the aes out there. That’s what they’re going to do. Person with the best team wins. So now here’s how we do it. We have an ad, the same ad that’s always running. It only takes me maybe 15 minutes a month to check in on it to make sure it can get kicked out. That’s going to cost me three hours for a year. I’m going to send a template response to all applicants and that takes about 15 minutes a week, 13 hours, three or just copy paste it. It’s the same thing and says we’re too busy to deal with the candidates.

One on one. Our next year comes, you’re going to cringe. Our next group interview section is at this time, this time or this time, we look forward to see you there. Now that’s taking us 13 hours per year. Now we’re going to conduct three group interviews per month with an average attendance of eight people and review only the resumes of the people who stood out. Uh, three wait seven hours per year, 45 hours per year. How many of you people who have ever read a resume and then you’ve met them and you knew instantaneously you wouldn’t hire them five minutes in, you wouldn’t hire. So you’ve read these 60 to 80 resumes and you knew what the first five minutes that you weren’t even higher, the more better yet, the person you thought you were going to hire didn’t even show up to their interview and you’ve spent your time reading that member hungered and 68 hours is all you have. Now we bring them in for one shadow day and skills tests per week. That’s one hour per week, 52 hours per year. We’re now 52 hours per year. Second interviews and check references two hours per year. So now I’m spending the exact same hundred and 15 hours. I’m meeting face to face about 300 people and I’m skills testing about 50 people a year.

Now how am I going to get the gene?

You think if I did some sort of personality assessment on the six people, this is what drives me nuts. People think, well, if you do this assessment on those six, but you’re going to know who to hire, no you won’t because the six of them were all crap anyways. You needed someone else. They’ve, you didn’t see enough people. It’s like if any of you sports fans at all. And do you think if the scouts that in a different spot in the arena that um, I don’t know Blake Wheeler would be better than contradict David. It didn’t matter. That’s cope just sat. You just had to be in the arena to see that person all together. You’re not seeing nearly enough people know. Way I kind of equate it is most business owners that hiring the pond water and the big businesses have a constant river account that goes through there.

You cannot compete as a small business owner with your hundred and 68 hours a week with your limited budget if you do your Ehr the same way they do. If you, if you try to tackle it, it’s just not to say that he’d seen my schedule. Where would, how would I possibly get the best team? And now I have every single Friday. Um, you know, the first Friday, the second Friday and the fourth Friday of every single month. Then we run interviews whether we need someone, whether we don’t need somebody, we know exactly who we would hire rate. Now if we needed somebody, if somebody walked up the door or got six, I’m like, we know exactly who’s next. We had someone leave while I was on break while Emilia was being born. I took an extra week off while Emilia was being born and what happened? Who called me Shit on tonight. Shout out to help me. And what happened? What happened before I got back?

We didn’t even do another interview. We knew exactly who that person, we know exactly who’s negative than any given time. Um, we get the best possible team. If you want the best possible team, you’re going to have to see way more people than you think. It doesn’t matter what questions you ask them in the interview, you’re just not seeing enough. Does that make sense? Your, your questions don’t make that person a better person that you, you just need to see way more people than you think you need to see. And I would challenge you, if you’re a small business, you can see a hundred people before you make a single hire. Um, so who do you think is going to build the best accounting team and the city of Evanston? I have a consistent and I’m seeing 300 potential accounting students coming out. I’m seeing the best of the best and that’s who I want on my team and that’s how I’m going to do it in a way that actually fits on my calendar. It was a couple of other companies that who you’re going to reach. Anybody. No one big one talked about today.

Google. So we think we can’t do this in small businesses, but Google is doing it and we think that we can’t do it. I mean, uh, I think that great that all of the other accounting firms are interviews because they’re just not going to see them as people. And as I’m saying, if you’re looking for a professional sports team, it doesn’t matter where you sit in the arena watching that game, you just have to watch more games to find that that one player that you’re looking for it. You have to see more people play. Um, that’s the way to do it is anybody who here cringe a little bit when they heard her interview, who here was a little bit scared. It is a little less so it’s a little bit uncomfortable just like the videos are a little bit uncomfortable. I didn’t become a CPA to do youtube videos until I realized the math behind them was just so staggering.

So everything I go back to is, you know, my competition is the 12 candidates a year in person and I’ve seen 300 candidates a year personally. And do you know what happens with a little bit like, I don’t even read the resumes. They come to the interview and we have no, what will happen is they’ll get a response back saying this one, the group interview times are, and what’s going to happen is there’ll be a couple of common questions. You know, those questions you asked like in our businesses, what software do you use? You know, why did you leave your last position? We have three or four other really common questions that we have on there. Let’s just knock them out. They can bring that in writing when they come in. Um, and then the first thing that happens is those interviews or five o’clock on a Friday, what happens at five oh one to close the door. No one gets it locked the door.

My one, this is the, uh, uh, you know the, the first part about it is this is their very first day. If they were late at time, guess what? That’s the best performance you’re ever going to get. They’re going to be late every other time after that. And they’re really serious. They come back next week and they got all the times. It’s something that extraneous happened. They can come back the next week, that’s fine. But if you have that item on your calendar, now that person walks in five minutes late, you’re like, oh I don’t have any points cause anyways, I’m going to, well just do the interview now. But now we have, you know, eight other uh, eager candidates to be in there. Um, and we’re, we’re kind of ready to go. So then what we’re going to do is, the first thing is we’re going to review the act.

We have a really descriptive of what the working hours are like, what the pay is like, Redo that at the first thing you do in that group interviews, review that. Cause if you don’t review that, someone was going to ask a question that’s listed on the job posting and that’s kind of annoying, but it’s kind of a, it should be to be expected. Do you remember the people who are applying for jobs? I probably applied for like a hundred jobs. So it could be a good candidate still because we do indeed. So I’ve resigned to the fact that indeed is $200 of my money every single month for the rest of my life. That’s just what I’m going to do until there’s a better site to do it. Whether we need some of the riffle, whether we need people on where the posted them, you get all the resumes and you need the best people up there. Um, so then they come in and we review that ad and then what we’re going to do is we’re going to um, go through what’s important to us as a firm. So we’re going to go through what’s unique as affirming and all roleplay it here with you guys. You know how we do this as a berm and um, you tell them rails to stop. We’re going to go through what’s unique. We tell them we’re going to let them ask whatever questions that they want to ask about the job.

Well, we want right through on the website and we tell them the problem that we’re trying to solve here is 50% of all small businesses fail in the first five years in vision is to help a thousand places for five years more along. Cause as a firm we got them to expand and they only have the capacity for a hundred clients right now. So I mean I have to work till I’m 90 years old if we don’t get more people in the door. And our mission is to help business beat the odds. Um, the values that we have are somewhat polarizing. Most people, right? Values that are feel good and they’re politically correct for everybody. Affected values should be polarizing. So effective values should some people’s rebreed your Edmonton Business Coach values and say, I don’t want to work there. And some people should read your values and say, this is the exact place for me.

If your values are written in such a way that you don’t encourage some people to work and discourage some people that works, you’re doing yourself a disservice and you’re doing them a disservice to, you can just communicate that. And a lot of the values that we’ve adopted at the same values that makes successful entrepreneurs and bring a positive attitude, integrity, all situations. And we tell people, you know, it’s really, you know, having integrity as accountant should go without saying, having a positive attitude sounds easy, but it’s going to get difficult when we have difficult days and not showing off of the positive as you on difficult days, you know, is not what we want here. We stick to the schedule, we show up early to finish strong and document your progress. And some people are gonna, you know, they’re going to read that and it’s like, well I can’t just have any flex time.

I can’t stay up. You know, I can’t stay a little later. It’s like, no, that doesn’t work. We’re absolutely maniacal our time because our time directly reflects on the feeds. We have to charge our, our clients and the more standardized and can make it more efficient we can be, that’s not going to be okay for some people. And that’s okay. I want to get that up to the front. Um, even when life is hard, we, we show up early. You just use schedule time off for activities worth sharing. And I tell them outright that if you’re the type of person who calls in sick with the sniffles Sunday, please do not work here because I will fire you.

That’s a polarizing value. Some people don’t want to work here, but that’s okay. But I want to find that. I want to make sure I don’t put them in a bad situation to begin with. Easy. Um, and I tell them what we’re trying to do is that accounting firm is incredibly hard. We’re trying to help get any visits, beat the odds, which is way more difficult than actually filing tax returns and financial statements. So either you’re on board with that mission, but if you’re on board with that mission, if it putting the same effort as they do and other county first, we’re not going to accomplish that mission because other people wanted to do it too. But you know how we’re going to do it. Um, we stick to focus solitary, work in the morning, say collaborate in the afternoon. And I’ll point out the fact that we have Lewis on our desk and if you talk to someone in the morning, you owed them a loony is that as our focus solitary time and our afternoons are for collaboration.

And the reason we have to do that is because if people want to collaborate at different times and no one gets any time for focus, solitary work that might not go over so well. Um, but some people are just completely jacked at this point because they’ve on the soap and you know, they’d gone to 10 other firms and they’ll probably reconsidering if want to be an accountant all together because they think just finally tax returns and financial statements are kind of boring and they know that if they do that, most of the businesses are going to fail anyways. So you can kind of see how we’re, we’re waiting this out here. Um, we want to cry and tries to understand the big picture, execute, review the big picture and repeat, uh, quickly document off the off of objectives refocused. Don’t switch Jassen to completion. I tell them that are from the way we accelerate.

Your learning is you prepare files, is it Denise and shot on and me are going to be abducted by aliens and you’re going to have to present it to the client tomorrow. Now obviously we do review it. We have them complete it to the best of the ability first and not stop at the first step where they get hard because they will learn quicker if they do it that way. Um, we want immediately flows back into the game when they get distracted or discouraged. We tell them that personal cell phones are built or band during working hours. That’s Berlin associates. That’s not going to go over with somebody. I’ll, people aren’t gonna like that. They’re not going to want to work there. Um, that’s okay. Um, I’m going to continually learn, develop, count per roll from within. Now we tell them that, hey, we know that successful companies paroled from within.

We’re not going to hire people from the outside that are going to come in above you in the pecking order. Oh, that’s something that’s exciting. I’m just starting to learn who we are. How are we going to be treated here? Um, when do you use knowledge from prior years, other clients and other proven strategies to help clients are continuing to make incremental improvements by our finding and following processes. We’re gonna tell them we’re very process driven. We’re not looking for cowboys who are going to try to reinvent the wheel at every files and own good because we all the processes and make them better over time. Some people don’t like checklists and you’re not going to want to work there again. Um, we bounced professionalism who are empathy and enthusiasm. You know, we tell them that if you’re only, if you’re super professional all the time, the clients will like you.

If you’re cracking jokes all the time, they won’t take you seriously. And I tell them that you’ve probably got into accounting because you didn’t want to sell anything. And now I tell them that your job successful accounts are now in sales because your Edmonton Business Coach job, whether you like it or not, is even if you never have to bring a client into the program, is you have to sell stubborn business owners. We probably went into business because they never want to listen to another human being or as long as they live to adopt your ideas, which is a very difficult decision to. Empathy is one of the most powerful influence influencing tools that we have at our disposal. Um, we, we want to take calculated risks. Remember, the worst decision is indecision. We’re going to celebrate the wins and learn from the losses, present complete solutions, not eat complete work.

Keep going. When it gets hard, we want to collaborate in person or by phone and they confirm in writing. I tell them we’re not going to have back and forth communications here an email. If we see people doing back and forth communications that are going to get a swift reminder to pick up the phone and call that person, get them in for a meeting because obviously we’re straightening up, going back and forth by email. We’ll wasting everyone’s time. Um, we wanted, have precise, concise, written communication that completely addresses all issues. Be Relentless and maintain any organization and reducing clutter. And we tell them it’s not just about the lack of paper in the office, it’s, you know, we’re absolutely focused on how we do our filing them or digital files in our office because what allows us to get

the information up on the screen

quicker and get information to them, right? Tommy progress updates and keep all relevant parties informed. We’ve wrote the health of our employees and their families and we overdeliver. And when you get knocked down, you get up

equally important.

And then we tell them that’s what it’s like to work. That’s from associates. Know How many of you people here have ever gone onto another job interview there? Who’s ever done a job interview at any point in the life or anything?

We’ll see.

How many of you have learned more about sparrow and associates by looking into these values and you learned in most of your other job in it because that’s what it is. And they might not like it, but that’s the goal. They need to be polarizing. It needs the weed out the people that don’t fit the culture. Okay? Uh, we need to find you know who we are, who you’re not, and you’re not doing a disservice to them. You’re actually doing them a favor because you’re making sure that they don’t take a job at some of their life. You know, we’re looking at, they’re super focused. They don’t mind working somewhere hard unless they’re actually doing something that makes a difference. Um, that’s what we do. And then we open up the floor for them to ask any questions they want. And what would happen if we did the questions one by one?

Um, for like a traditional,

yeah. Yeah. How many times we end up answering the same question

so many times

you’re just going to meet with those same six or eight people. They’re all going to ask the same questions. Let’s let them ask the questions as a group and see how it functions. And the other thing is about how are we going to remember how we book even just how you book times with a potential employee. Remember we both times generally we call up and say, hey, when’s good for you? And they say, okay, great. And then you work on at a time, you’re super flexible to work at a tie and then the minute you call up after you say, okay, great, you’re hired, I want you to start 8:00 AM Monday morning. Now you’ve completely changed the dynamic of the relationship. You are over accommodating the first time to get them in at their convenience and now you change it. So you want them to come in on your Edmonton Business Coach schedule and you wonder why it goes poorly. We set the bad expectation for is that right at the beginning, you know, we have group interviews at this time, at that time, hey, if you can’t make it this Friday, we’ll see it in two weeks. Yeah, it makes it then we’ll see you in three weeks. If you can’t make any three of those, you’re not serious about working.

Um, and that’s how we do it at the same ones.

Does that make sense? That’s how every one of you can get the river water of talent employee through your businesses, even though you don’t have this HR person making a hundred grand a year doing this for you.

Interview after an interview, you can just get the best possible talent every single time. Job Shop, job shop. When they come in,

you know, they, they come into our firm, you know, you’ve explained how they work. If we’re interested in, we bring them in and they shadow some for two hours. We take their cell phones away and we let them shadow one person, two hours, another person for two hours, and then we have them eat lunch with the team and then we have them a skills test.

And we do that 50 or a hundred times a year. Um, so, so

now it’s not just me explaining to them what it’s like to work here. They actually get to see what it’s like to work there. Um, you know, when you really can’t explain it as well as you can actually show itself what it’s like to work there. So we’re just finding the best people. We’re doing the best thing for the team and more, you’re actually doing the best thing for the candidate because you’re making sure they don’t get into position. Then, you know, they weren’t, if you didn’t do that, he didn’t bring them in. Maybe you just didn’t describe it. Well, we go back to Kevin’s picture of both the verbal instructions. There’s one with the swing look like only tree. That’s kind of what it looks like when you’re trying to explain what a day looks like working at your office or your, your Edmonton Business Coach business potential employees.

So that’s why, you know, uh, HR strategies, they have to make mathematical sentence. And the other one is in culture. Who has ever said to themselves, now I want to build a good culture in my business. We said that to themselves. And you say, I want to build a good culture in my business. Okay? But then they say they want to build a good culture. They have all these great ideas, but you look at their calendar and they don’t have time to build that culture into their calendar. You want to go back to, we meet every single morning at 8:00 AM in our office, all staff, every single morning at 8:00 AM in our office. And every single one day we have an all staff meeting, not quarterly or monthly, every single week we have a lot of, you know, long form training session when we’re trying to develop the staff you’ve ever everyone on the same page.

Um, whether we’re working on high level tax strategy or phone scripts, you know, we’re doing something every single week. You also, people think that I’m going to build culture. I say, okay, you can counter culture. You can count. How many instances did you have to get in front of all your Edmonton Business Coach employees to build that culture? Was it four times per year or like in our office? Is it, you know, two or 300 times per year. You know who’s going to build, no matter what culture you intended to build, you don’t have it blocked out your calendar to actually get you. I know a guy who owns one of the day by Stupor, you yawns all probably an eight salon hair salon and he will pay all of his staff to drive to a central location once a week to me. And that’s why it means, so he gets the best team. Yeah. Always had stylists and, and other, uh, other people, they can’t recruit stylists and he gets him in and he actually pays them to come to a central location. Uh, you know how much that costs, you know, he’s getting 75 stylists and he’s paying them two or three hours to drive to location. So that’s, that’s how important

is there consequences? Yeah, they’re fine.

That’s pretty sick. That’s how they have to think of it. But they would know that when they got hired on like, hey, it’s right in the eye. You have to attend our weekly training session at this time in this day. Huh. Um, so those are the things when it comes to building culture, people think it’s is fluffy, it’s esoteric. But guess what? There’s, there’s some of that, but more importantly, there’s just a lot of math. How many people did you meet? And then when you get them on board, there were no one, the average length of stay from employees these days, 2.3 years is the average length of stay for an employee. Um, so you need to have an ultimate system that you’re can’t get hurt by that when someone actually does leave working for you. And then you need a system in place that you can actually try to increase that. What can we do to get to three years, to four years to five years? It’s not going to happen by ideas in your head. It’s getting those ideas and then putting blocks on your calendar to get in front of the entire team that communicated over and over and over again until everybody’s on the same page. And that’s pretty much how you get the best team you wouldn’t. That’s the moneyball HR strategy for small businesses.

So guys, I think any other questions here? Let’s look at what did we not had you scheduled a to do chores. If you do not your Edmonton Business Coach partner, take care of the home front, I would encourage you to, Yap, you probably would schedule, but as soon as you can afford to pay someone to do those chores, um, that’s probably not your Edmonton Business Coach highest and best value. So if you could make $50 an hour being an electrician to prepay a hospital near $30 an hour, pay to house the $30 an hour, um, might take a while to get there. But yeah, the scheduling is okay. Schedule those times. What does the yours until you can afford and then focus on the things that you’re most valuable.

Is there a franchise guideline and deciding whether to expand the business ies set kit outlet or a branch? There’s no hard fast rule that will be a real specific business mind question. We do a number of moving parts so someone’s looking at that to go from one location to locations. That’s one of those things we always tell people you should be doing in business plan. If you’re making major changes in your business, major changes I going from one locations, two locations. If your Edmonton Business Coach struggling with your business or if you’re flying from my handset, if you’re doing those three things you should do is your business. Most people, I think major changes is we’re trying to grow this business not by 3%, but we’re trying to grow the business by 15% or 20% that’s a major change. Um, if that’s what you want or accomplishes you’d be doing, I’ll find. So you want a formal financial plan on that one. Uh, so you want to go through the exercise and actually have the final assembled on the financial planning is Activia or really catastrophic, right? Actually the state if you move to earlier, too late and unfortunately there’s no real quick um, placement for good formal business.

Any other questions guys? Okay. So what I want is a round of applause for all your Edmonton Business Coach people stuff.


I really appreciate you guys showing up. Again, our goal is to help as many businesses as possible. So we will be doing another one of these on August 10th. The arms will be on the base, but we’re going to focus a lot on the question. So if you want to come back, let this stuff see again again, uh, you don’t come back, ask whatever burning questions that you have in all. We’ll do. The door’s still open up as much time as possible for the Qa to try and get those questions and encourage anyone, you know, come to this thing to starting a business. Remember the one thing we always think, you know, we’re sharing the secret sauce, but probably the one hardest thing that we have to compete against is the overall state of the economy. And if there was more small business success, probably just get easier for, for all of us.

So I thank you very much. If you enjoyed this enough to leave a video testimonial that are really impactful for people because you see there’s so many events on Facebook business events from song called business experts, like Google them to see that you’d have a team where you waste your Edmonton Business Coach time going out to them. Um, but if you’re confident enough to, you know, leave us a visit, a video review and we’ll give you a copy of one of our favorite books. I think we have for the first fault people legal. We’ll give you whatever, whatever books left in the rep before you can see coal oil can and do his expert video work, become a videographer along with the CPA. So thanks very much. Nice.