Archive for November, 2007

Bad Acting Is Bad For Your Business

I called my stockbroker a couple weeks a go. I had a question. I wasn’t sure who to ask for because it’s been about a year or so since I actually talked to anyone there. Anyway, I finally get “my guy” on the phone. What a phoney!

This guy doesn’t know me from a fence post but acts like he just saw me yesterday. He ACTS like he cares about me, but his act is so bad no matter what he’s saying it sounds like this:

“Haaaaayyyyyyy, how ya do’in? Boy It’s nice to hear from you! I haven’t a clue who you are — but as long as you called — I’ve gotsome really great ideas for you to consider that will suit you perfectly, what-ever-your-name is. We should sit down and talk. I’ll pop some information in the mail to you. You look it over and give me a call. Cause, hey! I don’t remember your name, so there’s no way I know your phone number … as evidenced by the fact that you never, EVER hear from me.”

I got the info in the mail and I’m like, “Whatever!” I didn’t call him. Course, he didn’t call me. Until three days ago … I called him.

“My guy” wasn’t in. Someone took my name and number and said “my guy” would call me back. He hasn’t.

I’m moving my account.

Sure, maybe he wants my account and the fees that go with it, but it’s obvious he doesn’t care about my account or me. And no, sending me a birthday card every year doesn’t make up for treating me like I don’t matter the other 364 days a year.

Here’s My Points:

If the only communication I get from you is a birthday card, then the card simply calls attention to the fact that I never hear from you.

If you make me feel like the small account I am … I will never become a bigger account … at least not your account.

If you really don’t want my business … fine. But if you really do want my business … then genuinely treat me like I matter.

What support do I need?

It can be surprising how much support a business can require. Even if you look at the basics of Marketing, management and operational issues and the sub headings under each, then you would have to be highly skilled to be able to do all of them, so some support can go a long way!

Most males will try to doggedly forge on independently (and don’t say you won’t!) thinking they know best… But when push comes to shove there is a lot of expertise that can be obtained if you ask for support.

In a small business it might be having a partner do the books, working closely with your accountant, working with a business coach to build marketing plans. In the larger business it might be hiring a person or company to look after your an area of the business like marketing or sales, the more time goes on, the more of your business you should be able to hand over to these types of support services.

Support can come in the simplest form and often that can be the most powerful. I was chatting with a tradesman the other day who mentioned his business support. “My teenage kids have been trained to sort a few things out when I get home at the end of a long day. My boy sorts the junk out in the front of my vehicle, clearing the rubbish from a day on the run, he gathers the receipts up in a small folder and takes them into my daughter who we have taught to input the info into the accounting software. It frees me up to unwind at the end of the day, once a month we have a clean out session of the vehicle and I pay the kids for the duties they perform.”

A great way to get things happening I thought, simple straight forward and results driven.

Take a Look at your business and ask, what support do I need and what support would be useful, then start handing over the things that fit to this criteria. Only then will you truly have a business that gives you the lifestyle you have taken risks for.

How vital is your business success?

You do what you do in business because… it pays the bills, it fulfills a lifelong dream, it gives you the lifestyle you want, it gives you something to do where you are the boss. The list can probably go on. and on… but in all of this reasoning is it vital to you that your business succeeds?

Many will say “well its  important to me, but vital? I’m not sure…”

So how will you figure out if it’s vital to you?

Lets try this, can you do without it? If the business was taken from you, would you feel the loss badly? and is the loss likely to be short or long term?

I guess if it’s a long term sense of loss then it is vital to you.

Now let’s think about the success of the business and its link to that vitality. Success in this sense being, “working towards any worthwhile goal” so it would relate to the goals set in the business and the ability for you and your team to achieve them.

Therefore…

  • Make sure your team has the right resources at its disposal to do the job at hand to make the goals come to fruition.
  • Invest in the training of you and your people so you can all grow with the business.
  • Explore lots of creative and innovative ways to make your business and the teams stretch so you can all know you put in a top effort to find more ways to succeed other than the ‘normal range’ of options.

There will be many things you will discover about the vitality of your business when you start to look, so may I suggest  you start looking today.

Who are you supporting?

In the crazy mixed up world of business we can often forget why we are in business… of course it’s to make a profit but what kind? is it just money or are there other profits to be had?

Other profits might include

• People learning more and benefitting society by utilising their new found skills and abilities.
• Suppliers to your business having to grow their business because your business provides them with the need to create more product due to increased sales on your behalf.
• Local community growth due to your business providing increased capacity for the local community to spend and earn.
• More community support due to your business providing executives on loan to not for profit groups.

I am sure there are many more ways you are supporting the community and those near and dear to you, often I find businesses that realise their impact is so vast they start to smile a lot wider, and get a warm feeling in their heart. It’s not just the cash, its the wider community benefits as well.

You may not plan for it or you might want to plan for it… Either way when it happens it makes the whole idea of business take on a fresh new meaning.

Who’s supporting you?

Studies show clearly that many businesses fail in the first 12 months of operation, often due to lack of cash to be able to run the business through the crucial start up phase. But there’s more to the start up phase than just cash, in fact it goes well beyond the start up phase.

Support… Who is supporting you and your business idea? Family, friends, Franchisor… It’s one thing to have a business idea and or take on a franchised business, and another entirely to make it work.

Research is clearly indicating that people in business that do well are those who are supported in their endeavours, sure there will be exceptions but in the main if you do not have support you may as well kiss the business good bye.

Support can come in many forms, positive language, physical involvement or both. The idea being to foster the support whichever way it happens and ensure you are making the best use of it.

Examples, a husband in a trade based business utilises his wife as the phone contact person, the wife offers positive support of the business and is actively interested in marketing, and operational issues. A negative example might be a person who wants to go into business but gets negative feedback right from the start from family and who refuse to have anything to do with the business even though it may provide the income for the family to live on.

Overcoming the negative support model can potentially be very difficult, however if you intervene early and discuss the issue/s you may stand a better chance of altering the situation.

In business life can be tough enough as it is, without the right support things might be tougher than they need to be.

Two steps forward two steps back… or where did the money go?

The accountant chatted about the year that was, big deal it had happened, he mentioned a few down points in the year (a few too many for my liking…) but my trouble was I was focusing on short term here and now, not longer term way back when…

So I was on the up and up and he was on the ‘old stuff’ and there was a big difference. It made me flat for a while and in thinking about it there’s nothing I can do about it, it’s history.

Question… how often do you focus on the past only to miss the present, or the future for that matter?

Perhaps it happens too often.

So what can be done…

1. Keep the review times short – our accountant is talking about things six months ago that we knew about and have moved on from there.

2. Follow the plan – No plan no action – No goals no milestones.

3. Work smarter – The way forward may well need to seem like a backward step sometimes so you can move forward, put some serious effort into thinking things through and testing the various scenarios out BEFORE going head long into things.

4. Know your expectations might provide limitations too – Some times I expect gold medal performances from other people or organisations and am disappointed by the results (or lack of them…) Be clear in what you want and make sure they can match to that.

Until next time, keep your business real…

Strategic Alliances- what are they??

Recently I’ve been helping a few people brand new into business with no advertising or marketing budget whatsoever.

One of my main methods that I tell everyone to do is to develop some strategic alliances. “what is that?” is the general response that I am receiving!!

A strategic alliance is where you develop a win-win situation with another business who targets your same market. For example, a beautician targets stressed corporate women, and so does the hairdresser up the road. Both provide ‘anti stress’ and relaxation devices in their salons. They both decide to work together and offer a package deal for both of their services.

Clients visiting the hairdresser only will be given a complimentary face scrub from the beautician and clients visiting the beautician will receive a complimentary wash and shampoo from the hairdresser. Both of these services do not cost a much to either business, yet they receive a powerful 3rd party recommendation, plus access to the other businesses database.

Think about how it could work with your business? Do you have a database? Do you currently market to it? Then start searching for someone else who targets the same people you do. Ask them to work together with you. This could be in the form of newsletter swapping, referrals, competition prizes etc.

This marketing idea is truly a ‘outside the square’ one, so take some time, and your thinking cap and start building your business relationships!!

Pretend Role-Playing Solves Real Problems

“Daddy”, my 11 year old daughter excitedly exclaimed. “All I have to do is sell seven Holiday wreaths and I earn enough money to go on the school trip to the amusement park at the end of the year!”

As I reviewed the info packet with an advertising professional’s eye, I casually asked, “What do the wreaths look like?”

My daughter pointed to a photocopied, black and white line drawing that was totally void of warmth or cheer. I looked at the drawing and immediately became depressed. Then I became irritated.

The ability of a businesses to “think things through” is paramount to launching a successful promotion or for a non-profit to launch a successful fundraiser. Unfortunately, no one thought this wreath fundraising thingy through.

Without a photo, you’ve got 11 year-olds trying to sell warm, Holiday cheer by showing people a crude drawing that evokes about as much warmth as sticking yourself in the eye with an icicle.

One of the best tactics you can employ to help you “think it through” is to role-play the steps of your promotion or fundraiser. Walk it through. Use props. Have fun and actively look for problems or difficulties. If possible, role-play the activity with an outsider, someone who has had nothing to do with the planning of the activity, event or promotion.

I saved a client an embarrassing moment just the other day, because I helped her “think it through”.

Jan asked me to print up some raffle tickets for a fundraiser for the church. She wanted “Need Not Be Present To Win” printed on the ticket. No problem. Then I asked her to explain to me how the raffle would work — verbal role-play.

“Well, we’ll draw the first ticket,” she explained. “The person with that number comes forward and chooses the prize they want. Then we draw the next ticket on down the line.”

“That’s great, Jan,” I replied. “But how does that work with the whole, “Need not be present to win” thing?

A moment of silence was punctuated by a blank stare. We then revised the drawing protocol to facilitate the attendance issue.

As for my daughter’s wreath fundraiser? All I can say is, “Thank God” for grandparents, aunts and family friends who don’t have the heart to say “No”. In two hours of going door to door my daughter managed to sell one wreath. That’s when we invoked the friends and family tactic.

Then my wife asked me how many we were buying. I noted she said, “how many” not “are we”. I then quickly role-played in my head a scenario where I said, “none”.

Boy, that wreath sure looks nice on my front door.

Retail, retail, retail… When will people learn…

I have been doing some work near a newish shopping centre, it was completely revamped in the past few years. It has a supermarket and some other shops to act as a draw cards and so far so good.

I went there for lunch on two occasions, an Asian food shop is near one of the entrances, clean neat and tidy, I took a look at their menu and chose garlic prawns. Okay so far so good, I sat and waited. Of course I checked out the details. Next door is a fashion store JAMMED with stock and while I was there (a good 1/2 hour) only two people wandered in and out again with no purchase.

I noted that the shops on this side of the entrance are set back about 5 metres from the flow of pedestrian traffic, so there was little chance of any browsers wandering in as the menu was on the counter and not out the front.

Lunch arrives, it was a seafood and chicken combination. Whoops it was wrong… I was now very hungry so I took it, tasted ok but not what I had ordered.

In the time I was there only one other person came into the shop, had a glance at the Bain Marie and walked out. So it struck me, here we are at peak lunch time, they sell food but no one was buying… In the mall there were lots of others shopping and not coming this way.

My thinking cap went on…

  • What if they had a super cheap loss leader to get people at least trying their fare? (eg. very small $3 lunch specials)
  • What if they gave out some discount vouchers (by wandering the mall and actively handing them out) so that people could be tempted. Normally I do not advocate discounts but in their case the idea of some customers is better than no customers.
  • What if they had made sure I was given the right food… (that’s another issue!)

Here is a business that will fail due to lack of income, no doubt about it (they can’t sell too late as they have no outside access and people will stay away from the closed shops near by even if the place is open late for the supermarket.)

I ask… what is it with people throwing money away by not trying to boost heir business to at least get some sales… The downward spiral has begun.

The message here for other businesses is to be vigilant and open to fresh ideas to ensure your business has every opportunity of succeeding.

My Article Could Have Prevented A $53 Million Dollar Lawsuit

Back in September of 2006 I posted an article here warning business people to only guarantee that over which they have control. I advocated only guaranteeing such things as, “Your Money Back” or “Replacement”. I specifically warned against guaranteeing a customer’s satisfaction because you have no idea what will satisfy a customer.

Better than 9 months after I wrote that article, a Judge in the U.S. took his suit to a dry cleaners that guaranteed satisfaction. They lost his pants. That made him unsatisfied. And even though the dry cleaners offered to buy him a new suit, the judge felt it was more important to make a point and sued the cleaners for $52 million dollars for failing to live up to their “satisfaction” guarantee.

The judge was a judge by appointment. He is no longer a judge because those who had the power to appoint him again, decided that it may be in the best interests of the entire free world that he not sit in judgment of others. That’s great news.

The bad news is, the owners of the dry cleaning business, have lost about everything in an attempt to defend themselves before the lawsuit was dropped.

How much better their life would be today, had they been avid readers of FreeBusinessTips.com.au, had read my article and decided to guarantee “replacement of lost garments” instead of satisfaction?

Warm Regards,
Michael Crooks

The people service continuum

In the service stakes, there are those who connect with the people they need to serve and those that quite frankly wish the customers would go away. There are of course levels within that and as always I would like you to focus for a moment on the top end.

People who serve in those lofty heights, have a few qualities which makes them stand out from the crowd, but don’t let that descriptor fool you, you probably will not see anything different in the way they interact with the customers to give away the fact, that they have this high end skill.

In simple terms what they do is often invisible, it has great depth, it is a level of intimate connectedness. This allows them to encourage, influence, involve, engage, be in alignment with, but above all it allows them to be effective with the customers.

It also means customer loyalty is built in a way that makes it hard to erase, these customers do not fade away, they become advocates of what the service person has provided for them, which is much more than a product or service, it’s that intimate and deep connectedness all great relationships have.

The customers who come into contact with this exceptional sales or service person, will follow them if they leave the company.

For the company to ensure this type of customer service person is attracted and retained, they need to carefully look at their culture and the environment they provide.  In short they need to become employers of choice.

For the employee that has or wants to develop this skill level, they need to make sure they listen actively, find ways to connect genuinely with the customers (and most probably their team mates).

Great service is its own reward, and the return of customers time and time  again due to the intimate connectedness of the service people, is what the sales and service game is all about.

Tags:

My Top 5 Low Cost Marketing Ideas by Emma Rhoades (Guest Blogger)

Whether you are in business by yourself, or employ a couple of people, every business will benefit from low cost marketing. The following are some strategies you can use to expose your business.

1) Article writing. This will not only ensure you become an expert in your chosen field, it gives you great exposure for your business. Once you have chosen a topic to write about, ensure your article includes lots of tips and ideas that readers can take away to put to use.

2) Strategic Alliances. This entails forming partnerships with other businesses that target the same market as you. For example, a baby photographer, a baby clothes shop, a baby bedding business etc. All 3 of those target mothers with newborns, and can work together to ensure referrals are passed on.

3) Newsletter Swaps. Working together with other like minded businesses as above, can also mean swapping spaces in each others newsletters. Ensure you put a good offer that each business can give to their database. This will help you to grow your own. Just approach another business and ask to swap. Be careful that your databases match up in numbers. It’s no good approaching someone who has 2000 on their database if you only have 100. Make it win – win at all times.

4) Press Releases. Extremely valuable tool- only if you have something to offer the media!! Too many times I’ve seen people get a press release written, only to find that the media deem it un-newsworthy! Have an event, or tag onto a special occasion on the calendar.

5) Networking. Online forums, offline events are always extremely effective tools- provided you don’t join up just expecting customers. These are to build your credibility, learn off others, and basically to get your name out and about. Expect to give your time and expertise- and don’t expect a customer every time. Networking is about having fun, meeting new people and developing a reputation.

Emma Rhoades owns advertising business Diva Promotions. She aims to give women with their own micro business highly targeted, cost-effective advertising campaigns. Visit www.divapromotions.com.au today to book into your next campaign and start growing your business! Emma can be contacted via the website, admin@divapromotions.com.au or 1300 76 36 76.

The art business continum

Later this morning I have to go and pick up some paintings I have on consignment at a local art gallery. I suspect things have been a little slow in the sales area, as the gallery is only open now at set times on set days and is about to close down. Ok we live in a mainly working class area so I never did hold my breath for an “arts led recovery”. The two shows I have held in Metro Melbourne to date were nice but did not garner any major earnings either… as a business possibility the visual arts can be a hassle.

Nearly every week the art gallery directors in major areas get fresh faced “wanna be’s” emailing images, sending in portfolio’s and bios, some will look, others send an automatic reply “no thanks”… one gallery told me of up to five artists per day presented themselves and their wares. So during a 5 day week they got 25 new faces in the door (that’s a lot of art!) now imagine for an artist to pluck up the courage and do this they would have to have more than a few images to present, in fact probably enough to have a show. (lots more art than I thought…)

It gets me thinking, (ok this has been brewing for a long while) each year in our state there is an outpouring of young hopefuls… final year graduates of visual arts. Fervent minds challenging convention, grinding a fresh edge on life (probably on the axe handle actually rather than the head of the axe). So let’s see, a bunch of about 10 Technical and Further Education Colleges, and about 6 university level courses… if each only pumped out 8 students each (lets play the average game here) that gives us… 128 grads…

Some of the 128 will go into work… drop right out of the art scene, and keep it as a “dream point” they might grab onto later on. Some just wanted to get the starting point qualification to do graduate studies or higher level than a Cert IV so they go across into more study. Lets rough out a few numbers… further study – 50 – Work – 40 – drop out and move on – maybe 30… (I am guessing here give me a break) so that’s 120 that leaves 8.

Out of the 8 some will want to exhibit and others want to build a bigger portfolio first. So lets say half go forward and exhibit (its not that high but I am an optimist) so that’s 4 to get a show and the rest (4) go on to develop their portfolio.

So over a period of 10 years this would be 80 people, but take into account the ones that come from interstate and overseas and the market can soon be full to the brim of of young (and old) hopefuls., some get snapped up, some have to face the reality that their work might have got them good marks while studying, but in the cold hard light of day rate no where on the gallery directors scale.

It’s a tough world indeed a tough business and it requires a great deal of persistence and determination to make a go of it. Also remember our little end of the world (Australia) has nothing on the big apple, New York with over 250 art galleries (most of the commercial kind)!

I guess for new hopefuls the art scene can offer a glimmer of fame and for some fortune, but in the main its as tough as any business and still requires all the same due diligence of any business.

How to Test and Measure the effectiveness of your advertising by Emma Rhoades (Guest Blogger)

Advertising can be viewed as extremely risky for small businesses that don’t have a massive budget each month. It doesn’t have to be that way- as long as you test and measure all of your advertising. Follow the below steps to ensure you don’t waste your precious cash flow on advertising that doesn’t work.

1) First, ensure you have mapped out your target market, and you’ve found an advertising medium that will get your message right in front of them.

2) Ask everyone the question “Where did you hear about us?” Make it compulsory on a newsletter subscription, or on a booking form, or an order form. If someone rings up to enquire about something, ask “By the way, can you tell me where you found us?” I’ve never had someone say no to that question. Keep it in a spreadsheet, or database, but make sure you’ve recorded it. Get your receptionist or staff members to ask it as well.

3) Ensure you have a good internet statistics system. This will tell you when visitors are coming from another website, and the exact page they came from. If you don’t have any statistics being recorded- start now!!

4) Once you know where a good % of your visitors are coming from, you can start looking into the marketing that works. If after a month of asking everyone where they heard about you and not one came from your yellow pages ad, you can either improve your advert, or put the money into testing something else.

5) Run with the ones that are working. By this I mean you pay $200 for the advert, and it brings in $500 profit. Simply increase this type of advertising. Whether it is dropping flyers- do double the amount. Or a banner advert on a website- look at what other options they have, or run the banner more often.

6) Lastly, check your conversion rate. After you have noted down where everyone is coming from, work out if they are buying?? You may be getting visitors, but are they turning into profitable customers? If not, start looking into increasing your conversion rate.

Remember, advertising should only achieve 1 of 2 things- either the offer you make is so enticing that it turns first time visitors into buyers or getting visitors into your database so that you can sell to them later.

Emma Rhoades owns advertising business Diva Promotions. She aims to give women with their own micro business highly targeted, cost-effective advertising campaigns. Visit www.divapromotions.com.au today to book into your next campaign and start growing your business! Emma can be contacted via the website, admin@divapromotions.com.au or 1300 76 36 76.

Win win marketing

Most of you will have heard of the term win win, meaning a positive outcome for both parties, I thought about it as I was pondering some marketing options for a business.

My thought went like this, what if a marketing Co (lets say a newspaper selling advertising) were to only offer win win advertising so I knew I would get work from that advert that was greater than the cost to place the advert… (yeah I know its not about to happen any time soon.) But what if they did? Would I want to spend more $$ with them in the future… YOU BET!

What would it take… let’s see a measurement device (to see if the advert is working) and a more cooperative approach to working out the marketing “ploys” to make it work. You see often an advert on its own is not enough, it may need to have a deal attached to it, a call to action, a loss leader int he acvert as a solid draw card and so on.

It would take more effort than an artist creating an advert and the sales rep pestering you to place the ad. But would it be worth it.. OF COURSE IT WOULD… after a while the relationship built between the sales rep and the business placing the advert would become rock solid and after the initial process the rest may well become much easier.

So next time a advert sales rep says they want to chat to you about your advertising, ask if they can guarantee it’s a win win advert…

Now if only I can create a win win situation with my wife…hmmmm… :)

Leave the juggling to jugglers…

In business it seems like we juggle a whole bunch of things, from finances, planning, to marketing and operational issues and lots in between. I often say it’s about how well you juggle as to how well you do in business, however lets take some pressure off for a while and imagine if we stopped juggling. What would things be like?

Example if we outsourced the finances to a bookkeeper -  handed the marketing to a marketing company, and so on… It would leave you to focus on one or two things instead of multiple things. Imagine having a clear focus on your plan, aims, objectives, and GOALS… It would free up your time and therefore it suddenly makes sense.

Henry Ford was one of the first to say “If I want to know about marketing I call the marketing people…” He did okay… I am sure there are many others in the same boat, outsourcing these tasks and creating more time for themselves.

So ask yourself, what can I give up or delegate and profit time wise, so I can create better lifestyle options. I hope it entices you to at least think about it.

Excellence is a state of mind…

I don’t mind stating I feel less than excellent. I have some quotes to do, some work to do, some people to chase, some calls to make, bills to pay, $$ to chase and frankly I don’t care if it all gets washed away in a great flood (or any other disaster for that matter.)

We all have our down days, but at the moment I am swamped by all sorts of minor details and they are driving me nuts. My answer, do things one step at a time and let the rest hang for a while.

Okay I am feeling “fluey” sore throat, headache, sore joints and all the rest but that’s not the only thing on my mind (list too numerous to mention here or waste your time with…)

Lets face it it can be too easy to say “I provide excellent customer service”, or “satisfaction is our business” or any one of a thousand other customer service clichés. But if you are feeling lousy the truth is they can all go to Hades…

So after a “Nana” nap late yesterday afternoon and a restless nights sleep, some light work this morning I feel like I am slowly getting back some mind space so I can head back towards excellence.

Your brain can shout excellence all it likes but if the body is unable or not willing then that changes things all together.

  • You are currently browsing the archives for November, 2007