Small Business Guru

Big Picture Thinking

I have a big issue with long-term business planning.... actually, I have many.  1. It’s very hard to predict the future; 2. I have enough trouble thinking about next month, let alone the next few years; 3. Most small business owners don’t have the time, resources or industry data to make sound predictions or meaningful plans and 4. I actually find it quite daunting to think of everything that is required of me to make my goals a reality, so setting the goals in the first place becomes a bit overwhelming.
However, I still believe it is very important to have an eye on the bigger picture of my business – I mean, let’s face it, if all I have to look forward to for the next 30-odd years is more of the same.... well, that doesn’t exactly turn me on.

I know many small business owners find business planning just as challenging as I do.... which is why I recommend planning in a ‘general’ sense – clarifying the picture of the general essence of your business in the longer term rather than creating a list of ‘disconnected’ targets.

Answering questions like....

• Who will I be working with?

• How will I fill my days?
• What will my business be known for?
• What kind of lifestyle do I want to have and how will my business support that?

.... give you a sense of the general direction you need to take your business.... and gives you benchmarks against which you can measure new opportunities or strategies. 

Once you have this kind of picture in your mind, then you can create short-term goals or focus points for moving closer to your bigger picture.  Personally, I work well with a 6-month plan... that keeps me focussed on key projects and strategies that move me closer to my bigger picture outcomes.  Once those projects are complete, the next strategies become apparent... and I keep moving forward with flexibility and within the context of the wider economy.... all the while moving closer to my big picture outcomes.

How do you stay focussed on your bigger picture?  Vision boards?  Goals? Traditional business plan?  Other business plan format?  Let me know in the comments below.

Igniting your business performance through strategy and mentoring,

Cat

The right medium for the job

For a marketer, TV is a broadcast medium - that is, I place an ad and it gets 'broadcast' to the viewers.  There is no engagement, no dialogue just a hope that the ad increase the market's affinity with the product.

Social networking, the latest hot topic in marketing circles, on the other hand is an engagement channel... or at least it has the potential to be.  But I am seeing more and more supposed social networkers mistaking platforms like Twitter, Facebook and LinkedIn as another broadcast medium.  That is, they think all they have to do is post links back to their core website and people will follow.

People accept ads on TV because that's what the medium is designed to do.... and we passively watch our favourite TV shows and sometimes we watch the ads.  But people use social networking sites to.... wait for it....

....NETWORK. 

That's right - they use it to connect, engage and be involved in a conversation.

If you're outcome in social networking is collecting friends or followers, you're missing the point (as Steve Woodruff so beautifully describes in his article "Connection Collector".)  To truly benefit from the power of these platforms, you have to actively engage as well - with influencers, your target market and other people of interest.

And while you're doing that - actively engaging with people - if you 'accidently' collect 10s of 1000s of followers - then fantastic.... and kudos to you for building a community that you are actively connecting with.  (Sarah Prout and Darren Rowse are both excellent examples of Tweeters with HUGE followings... followings built by actively engaging... yes, apparently you can 'talk' with 60,000 + people at a time!)

But if all you are doing is broadcasting 'ads' (often disguised as informative links back to your website) in the social networking space, you'll not only not collect followers or friends... but you'll lose them....

So if you're going to use social networking platforms as one of your marketing channels, then clarify your purpose, your intent and your strategies and targets for engagement... reply to people, comment or 'retweet' and thank people for connecting with you.... share elements of you the person as well as your business and have fun....

In other words.... network!  It's just like how you 'network' at a networking function.... only it's in cyberspace, at hyperdrive and can be done from your computer or mobile phone - no travel required!!

How are you engaging with your network using social networks?  Or are you a bit stuck on how to have meaningful conversations with limited words or in such a public domain?  Comment below.

Action always beats inaction

Feeling a bit unmotivated?  Directionless?  Not sure what to do next?

Well, I've just discovered a solution.  Action!

Do something, anything.  That 'anything' in itself creates its own momentum and then you don't need to be 'motivated'... you just have to keep doing 'the next thing'.

So stop looking for the 'right' thing to do, and just do something.

:-)

Have fun!

Cat

Discounting vs Value

In the current economic climate a lot of business owners are discounting their prices in an attempt to get customers.  This strategy is fuelled by the notion that there is ‘no money’ being spent.  Actually, the money is still moving.... it’s just that consumers are being more conscious about how they spend it.

The problem with discounting is that you actually have to get even more work than you did before to make up for the discounted prices.  Further, your customers will likely resist your normal price in the future – so you are either stuck with the discounted price or you potentially lose the customer.

So instead of discounting, how can you increase the value in your service or product packages so that people are more likely to spend their dollar with you instead of your competitor?

A business coach I know is offering a 6-month Mentoring Program.  In essence it is 6 months of coaching, charged at his normal monthly coaching fees.  But he has packaged in a range of ‘additional’ benefits (such as unlimited email contact, discounts off his other programs and products, worksheets and other tools) that cost him very little to deliver, yet offer significant value to his clients. 
How could you use this approach?

• If you’re a plumber or electrician, with any call-out you could offer a ‘free’ check of your customer’s set-up to ensure maximum water/electicity efficiency and safety.
• If you’re in retail you could offer a gift voucher with any purchase over a certain dollar amount.  Not only does this increase the value of the original purchase but it gets the customer back in your shop.
• If you’re in hospitality, you could offer free coffees with a meal (or similar), or a free salad with the main meal.

All of these ‘inclusions’ cost you very little to deliver, yet add significant value to the customer. 
So don’t discount, increase your value to the customer.

(Not sure how to package up value for your business? Email me and I’ll give you some ideas.)

What Fuels You?

I’m preparing a workshop on ‘Personal Effectiveness’ for business owners... and amidst all the ‘obvious’ things like organisation, time management and personal ‘systems’, it got me thinking.... what keeps us going as business owners... where do we get our fuel?

For some, the juice comes from ongoing wins – whether it’s getting another client, the rush of a sale or successfully managing a staffing issue.  For others, it’s the growth and development of the business (and themselves in that process).  Fuelling yourself in this way is great... but what happens if you have a ‘dry’ period of few wins, slowing sales or staff grumblings?

Other people top up their tank knowing they’re ‘in-control’, taking comfort from the knowledge that they are ‘the boss’ – they’re not working to anyone else’s objectives, time-frames or budgets.  That’s all well and good... until of course they realise they are actually now slave to their customers, their staff and that ever-present need for revenue.

The most reliable fuel then has to be independent of business conditions.  For me I fill my tank with good nutrition (most of the time), physical exercise, spiritual practices and mental stimulation and engagement.  If you want help with nutrition or physical exercise, check out one of the many local practitioners who can give you guidance and frameworks that work for your life.

Mentally, consciously choose what you listen to, read and talk about.  It is really easy to get into a mental rut if you’re surrounding yourself with commercial news and talkback radio.    Instead, seek information that supports your goals and interests.  The internet is an amazing source of quality information and blogs in particular are a great way to stay in touch with current information, trends and opinions.  If you prefer your information and engagement more personal, consciously select peers, friends and colleagues who will engage you in robust conversation... and make the time to engage.

Mentally engaging yourself – really thinking about, around and into situations, opportunities or problems – not only fills your tank with premium fuel, it helps you evolve.

Why I Use Twitter

This is adapted from an email I wrote in response to the question, 'why do you Twitter?'

From a business perspective, Twitter enables you to:

1. Gain insights into people’s lives that you wouldn’t (e.g. I follow a number of ‘gurus’ in the states because I look to them as role models. I look at this group as roles models and news providers… I follow them because I get to see what they’re ‘following’ in terms of trends, information, people etc)

2. Direct traffic back to your site by posting links about your latest blog, offer, product, program, service etc.

3. Finally and yet I think most significantly…. To create a network and then maintain regular contact with them…. this builds familiarity, credibility and therefore trust.  The power in Twitter is you can literally maintain multiple conversations at once…. Similar to how you do at a networking event…. except you can do with far more people than you can do face-to-face.  The power comes in as you don’t actually have to leave your computer.

To effectively use Twitter you therefore need to:

1. Post a combination of ‘what I’m doing’ posts as well links to useful and interesting information – be an information provider, be ‘follower-worthy’

2. Engage in meaningful conversation with the people in your Twitter network – i.e. when you see someone’s post that resonates with you or you can help, reply…. Publicly most times (because it helps to build your follower list), but then by Direct Message (DM) as that is private – this is where I share email and phone details for example – for specific follow-up and more personal conversation.

My final tip for the newbies…. Don’t try to manipulate it… just voyeuristically participate for now and you’ll get the hang of how to make it work for you… that’s how I started only a few months ago…. Now I have over 120 followers and an very active 'response' network.

Be warned - it can be addictive - but it's a lot of fun and an extraordianarily powerful social media too.

If you want some more info on how to use Twitter, check out these sites...

http://prevential.com/twitter-tips/

http://www.fourhourworkweek.com/blog/2009/02/25/how-to-use-twitter-without-twitter-owning-you-5-tips/

http://www.briansolis.com/2009/02/finding-tweet-spot-top-tips-for.html

See you in 'Twitter-Land' :-)

Cat

(are you following me?  www.twitter.com/catmatson)

What's the Benefit?

I happened to be watching some daytime TV today, so saw some 'different' ads (you know, the ones targeting mums).  The one that got me thinking was the BrandPower infomercial style ad for Omo laundy powder.

First of all, the BrandPower (and similar) style ads are interesting in themselves - providing third party credibility to an otherwise bland product... providing key information rather than fluff and bubble.

What was of particular interest about the Omo ad was it promoted the new 'concentrate' version - use 1/2 as much to do just as good a job as previously.  Therefore the product is now available in a smaller box.

So the 'new' features are 'concentrated formula', 'use less', 'smaller box'.

So what's the benefit?  Is there a cost saving?  I don't know, it wasn't mentioned in the ad.  Is it important that it takes up less shelf space in the laundry?  Didn't look like it's footprint was any smaller, so that can't be it.  Do I feel better for only using 1 scoop per wash instead of 2?  Honestly, I don't care... and in fact I will generally put in the same amount of scoops regardless of the 'concentration' just out of mindless habit.

Don't leave your potential customers guessing about the benefits of the features of your product.  If I was writing that Omo ad, for every feature I want to mention I would also have at least one 'so that....' statement, often two, to demonstrate the benefit - e.g. it's concentrated so that you use less so (that) you save money.

Feature, function, benefit - if you're going to showcase the feature, showcase not only the function but the benefit.

What are the benefits of your services?

Cat

Brand consistency

I love the schweppes balloon burst TV ad - I love the creativity, the super-slow-mo bubbles... but most of all I love the emotion it evokes.

It has so etched what 'refreshing' is to me in my mind, that I actually described a refreshing customer service experience as schweppervencent... it was so refreshing.

Now, because I needed to check the spelling of schweppervencent I went to the schweppes website... and the brand message, the emotion, the 'refreshment' was all reinforced... the music was there, the bubbles were there, the smiling faces were there.

And then... when I got past the welcome screen, their core brand messages were consistent with the ad - none of this "who we are" and "what we do" - rather "discover", "enjoy", "experience".  Oohh... now I was not only tingling with the emotion of the brand but I was also excited at the execution of the campaign - so congruent!!

As small business owners we can still convey this congruency and consistency... sure, the big budget ad helps... but it isn't necessary if you're not trying to reach the mass market.  The keys are to evoke strong emotion and then consistenly remind people of that emotion everytime they interact with your brand.  To do this, you need to know what you stand for, what your business stands for and therefore what your brand stands for.  Then, when you 'speak', you speak from that stand.... the emotion will be evident.

(as an aside, as an avid fan of The Gruen Transfer, I saw the creator of the ad, Russell Howcroft, talk about this particular campaign.  He said it was one of those fortiuitous moments in advertising where the client was willing to go all the way with a really creative idea... and everything came together - the imagery, the music... what is really impressive to me is that Scweppes have taken it way beyond the campaign and incorporated it into their entire communications strategy)

Cat

Marketing - the foundation for your business

There are really only 4 things you need to 'handle' in business;

1. Marketing
2. Sales
3. Everything else (that is, the systems that support 1 & 2)
4. You

Why?  Because if you are not selling something, you are not making money.... and you can't sell anything until you have marketed it.  Therefore anything you do that does not support your marketing or sales efforts are a waste of time.... your administrative, financial and HR systems should all support your marketing and sales functions.

So, from that position.... I then read this blog post from one of my favourite bloggers - Seth Godin - Which Comes First, the product or the marketing?

Marketing really is the number 1 priority in your business - it's the platform on which everything else is based.

Cat

Great Customer Service - Priceless

(this post is adapted from my regular column Better Business in 'The Westerner', a newspaper servicing the Pine Rivers Region in Brisbane).

I’m taking a different approach this week... I want to tell you a story.

It’s a story of a tech-savvy business owner, who, after much research decided that an iPhone would be a fun new tech-toy AND it would help her improve her personal effectiveness.  Her name was Cat.

Like any time-poor person, Cat had utilised the research of her colleagues and friends, not only on the utility of the phone, but also the best network, plan and place to buy.  And so she did. 

Unfortunately, what Cat had not anticipated was the ‘coverage-hole’ (that’s what the Telco called it) directly over her home-office.

So, facing the disappointment of not having a working iPhone, Cat set about activating the Telco’s ‘coverage guarantee return policy’.

What followed is a typical ‘Telco story’ of being shunted from department to department, ‘Customer Service Operator’ to Operator, trying to action what should have been a very straight-forward process.  Needless to say, being such a typical Telco story, there is not enough space in this entire paper, let alone my little column to give you the details.

The refreshing twist in this story is the service Cat received from the reseller.  Despite now receiving absolutely no commission, no account revenue and losing an ongoing customer they did what few are willing to do – whatever it took to make the customer happy (in this case, returning the customer to her previous network).  It worth noting to do so, they also faced the exhausting game of ‘hot potato’ and the mind-boggling (or was it mind-numbing) experience of countless ‘Customer Service Operators’ not knowing what to do.

My ‘Better Business Tip’ from this sorry tale:

The cost of looking after a customer beyond the call of duty – some time and $$

The price of forever losing a customer because your service systems suck - $ 000’s

The customer loyalty gained from sorting out a mistake (even if it’s not yours) – PRICELESS.

(Thank you to Joel & Luke at AllPhones Brookside for exceeding my service expectations.)

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All it takes is to care about your customers....

Cat

www.twitter.com/catmatson