Small Business Guru

Changing the Paradigm

I just watched this great interview from the Martin Lindstrom Brand Blog.... really interesting discussion with a guy who has completely changed the paradigm of re-useable bottles.

I was reminded of our definition of lateral thinking - "looking at what everyone else is looking at and seeing something different".

There is an opportunity for everyone in business to change the paradigm in their industry.... a make-up company that actually educates women how to really use makeup- there's a new idea.... a personal concierge for every-day women (someone who's willing to look after all the odds and ends in your life that you don't have time to do) - wow, what a concept... a business consulting firm that provides all your advice, coaching and accounting needs in one integrated package - wow, there's an idea!!! (OK, OK, that last one is a blatant self-promotion)

My point is, you don't have to invent a new bottle to revolutionise your industry... you just need to see things differently.  Don't accept status quo, ask yourself, what is really needed here, what are people really looking for...? 

People will settle for what currently exists.... so there's no point asking what they want - they will generally answer from a frame of current reality.  You need to read between the lines...

Watch the video again and ask yourself what can you see in your space that could be done differently?

Cat

Strong Foundations

Tuesday 27th January this year signalls the start of the Chinese New Year.  2009 is the year of the Earth Ox and provides a focus on foundations, getting your house in order and themes of patience, relationships and systems.

In the current climate of panic, fear and resultant consumer caution, giving some attention to the foundations of your business is a sound idea.  When the economy bounces back (which it will do, it’s just a matter of when), the businesses that will best positioned to take advantage will be the ones who have rock-solid foundations.... not those built on sand. 

So what foundations do you need to look at?

From a marketing perspective, what is your core marketing message?  What does your brand stand for?  Is your marketing working for you or are you wasting time and money on random, hit-and-miss campaigns?

A solid marketing foundation – an integrated marketing plan based on a consistent message, strong relationships and networks.

In the sales area, do you have a consistent sales process with a high success rate?  Can you track your sales leads and follow-up on customers who are still in ‘decision-mode’?

A solid sales foundation – a strong sales process that works supported by a relationship management system.

From an operations perspective, do you regularly experience ‘drama-free’ days, or are you often “putting out fires”?

A solid operations foundation – systems and processes that support the marketing and sales functions while efficiently managing the administrative, financial and compliance requirements of the business (they don’t have to be documented, but they do need to work).

And lastly but most importantly, YOU (the driver of the business) – are you clear on your direction, your focus and targets for the year.... or are you scrambling to keep up?

A solid owner foundation – clear business and personal goals, how you’re going to achieve them, personal development opportunities and personal wellbeing.

Remember the whole year is about strengthening your foundations... it doesn’t all have to happen overnight.  Just schedule some time each month where you can ‘structurally’ review the business and strengthen as you go.

Thoughts on Leadership

Witnessing the inauguration of President Obama has reminded me about the power of strong leadership.

Strong leadership engages people.  It provides brightness of the future at the same time as grounded realism regarding the current reality.  Strong leadership inspires people to be better and to feel better about themselves... it's not shallow inspiration along the lines of "wow, what an amazing person he/she is", rather it inspires feelings of fullness, greatness and 'big-ness' in the witness's own minds.  It leaves us aspiring to be more than we currently are, individually and collectively.

Strong leadership is enhanced by powerful oratorship.... but it is grounded in integrity, clarity and consistency of message.

It is an exciting day for the planet today... not because a black man is now President of the US... but because today the world formally 'gave power' to a man who has been a powerful leader for quite a while. 

People get the leaders they deserve.... and Obama's inauguration today reflects a dramatic shift in the paradigms, thoughts and beliefs of not only the people of the US, but the people of the free world.  Metaphysically this is a remarkable shift....

Be a strong leader in your own context.  Be a person of integrity, clarity and consistency of message.  Engage with the people in your life, inspire them through your being... not through anything in particular that you 'do'.  Leadership is required everywhere in life.... not just at the White House, in Parliament House or in our Boardrooms, but in our homes, with our children, with our friends, in our societies.

Wow.... what a difference a leader makes!

C

The Subjective Nature of Economic Titles

I just heard on the news that the US National Bureau of Economic Research has declared that the US has actually been in recession since December LAST YEAR (http://tinyurl.com/5lb5uv).

I laughed.... because it just goes to highlight how subjective the definition is of 'recession' (http://en.wikipedia.org/wiki/Recession). 

It also confirms my opinion in my last post and in the presentation I did last week titled 'Tough Times?  No, It's Crunch Time' that Australia is NOT going to go into recession.... our GDP is forecast to actually grow over the next 12 months.  Sure, consumer confidence is down.... but that confidence is based largely on the scare mongering in the media... and a too heavy reliance for want of a better word on what is happening in the states.

We are not in the states.... we are not experiencing a sub-prime housing market collapse and our economy is in good shape.

Still not convinced...?  Just go into any major shopping centre and witness the amount of money being spent in the lead up to Christmas.... don't you worry, there's still money being spent.

Tough times? Really?

I am so tired of hearing about how tough things are.  People are citing the current economic climate as the reason for not buying, the reason why business is struggling, the reason why they’re ‘cutting back’.

The fact is, for most people, things are no more ‘tough’ than they were two months ago (I know some people have unfortunately lost their jobs but that’s not the majority).  Sure, people’s asset-base has taken a hit (yes, your superannuation fund does not look as good as it did month ago), but your day-to-day discretionary income has not changed one iota.  Grocery prices having been going up for the last 18 months.... petrol prices have been going up for the last 12 months.... so we have already been dealing with those increased cash flow burdens. 

Since the supposed economic crisis hit, petrol prices have actually come down... and so have interest rates!!  So in reality, most people should have more free cash to spend... not less!!

The fact of the matter is mainstream media would have us believe that we are moments away from recession.  This does nothing other than fuel fear... which influences buyer behaviour... which then creates a self-fulfilling prophecy of slowed economic growth.  Readers older than 50 would recall similar ‘slow-downs’... and would recall coming out of them unharmed.  The problem is we’ve had such a long period of growth that most people in business haven’t seen ‘conditions’ like these before – it’s easy to make hay while the sun shines.....

So what does it mean for you, a small-medium business owner?

Normal operations!  Stop thinking ‘doom and gloom’ – be proactive amidst the negativity.

Get smart with your marketing and reconnect with your customers.... demonstrate you are as important (and valuable) to them now as you were last month.  Expand your communications, your programs, your products, your services – resist the temptation to shrink and ‘go small’.

Unless you are selling to retirees or people servicing that market, your customers have the same discretionary income (if not more) they did six months ago.  Don’t fall into the trap of thinking ‘times are tough’.  They’re not.  They’re just different. 

Bringing in the Catch

Last issue I discussed ‘throwing the net’ – the marketing activities we do to get our target market to ‘nibble’ on our bait.  Once they’re nibbling, what should you do with them to ensure you make the catch?

First of all, remember that selling your products or services to a prospective customer is more about helping them get a good solution to their problem than it is about you ‘making a sale’.  If come from this perspective making sales will come easier... and you’ll avoid any of the ‘stuff’ you have about being an ‘undesirable salesperson’ (and that’s another conversation for another time!).

Secondly, define your sales process.

The first step in the sales process is to Establish Rapport & Credibility – essentially, build a relationship with the prospect so they trust you.  Depending on your marketing and your product/service this step may already be largely covered, or you may need to spend quite a bit of time on this stage.  Examples of establishing rapport and credibility are conversation, testimonials, your website and other marketing collateral and references.

The second step is Discovery, that is discovering what the really customer needs.  In my line of work, this involves talking with the prospect and listening to the challenges they’re experiencing in their business.  For a tradesperson, it’s about asking enough questions to discover what the issue really is.

The third step is Presenting the Product/Service – showing the customer how you can solve the problem.  This includes price, time-frame and any other variables.... and should be a natural ‘fit’ for the problems the customer outlined during ‘discovery.

The final step is ‘Closing the Sale’ – which is essentially ‘completing’ the sale – making the appointment, selling the product, asking for the money.  It is different for each business and is the stage that most people have the most problems with.  But really, if you have followed all the previous steps, closing the sale should be a natural completion to the discussions you’ve had with the prospect.

Is having a sales process going to ensure you catch every fish that bites?  No.... but it will improve your odds and ensure that less ‘get away’.

Throwing the Net

Marketing and sales are often confused by business owners, thinking they are one and the same function.  However marketing is like throwing out a fishing line to see what nibbles... sales is reeling those that nibble into the boat.

Unlike a good fisherman however, most business people fail to ‘haul in’ a good percentage of those that nibble... so rather than just casting a line, most small business marketing really needs to be like throwing out a large fishing net... giving you more opportunities to make a catch.

The first component to a strong marketing net is a crystal clear marketing message.  This consists of:

1.       Who are you trying to catch (your ideal customers/clients)

2.       The problem they experience (problem, predicament, issue)

3.       The solution you provide (solution, benefit, result)

4.       Why you are the person to provide to solution over all others (credibility)

5.       A strong call-to-action (what should the buyer do next?)

The next step is using your marketing message to communicate with your target market.  It could be in local press ads, classified ads, direct mail or email, website, brochures, TV or radio advertising or a whole host of communication methods.  The key at this step is to communicate with your target marketing where they are likely to ‘listen’ to your message.  For example, accountants don’t respond well to direct mail, so that isn’t a good method for them.  However they do respond well to articles and presentations by experts and one-on-one conversations.  So if accountants are your target market, you need to be writing, speaking and networking.

Consider what methods work well for you... or for your competitors or similar businesses (e.g. if you’re a plumber, what’s working for the local electrician?).  Then consider how you can improve your message so it’s more effective and generating the nibbles you’re looking for.  It’s not about ‘clever’ or ‘creative’, it’s about ‘does it make the phone ring?’

Notice in none of the above steps did I talk about sales... that comes next... once you’ve got the right people nibbling on your line... and what I’ll address next time. 

 Until then... happy fishing!!

Netweaving... not networking

Well, it’s official!  With Melbourne Cup Day now behind us, it really is a downhill slide into the festive season of social engagements and parties – business related and otherwise.

Rather than decline these social invitations citing ‘busy-ness’ as your excuse, consider using these opportunities to expand, enrich and ‘weave’ your networks.

I don’t mean handing out as many business cards as you can, or trying to generate as many new customers or clients you can in the shortest space of time.  What I really mean is what I call ‘netweaving’ – truly connecting with people and connecting them with others.  Netweaving is more about helping others... whereas traditional networking has been about ‘what’s in it for me’ (WIIFM).... which, by the way, is why so many people don’t like traditional networking.

The festive season is a great time to reconnect with your networks (business and personal) and practice the art of netweaving.  Look for ways that you can put people in touch with others where they can create mutually beneficial relationships.  For example, if someone mentions they are experiencing a particular problem, or looking for a particular service provider – pass on those resources that you would personally use if you had the same need.  I recently was talking to a client who mentioned they were having challenges with their electrician.  I gave her the name of mine as someone she could call if hers couldn’t do the job.  I also often promote other peoples services or events out to members of my network purely because I think they would benefit... not because I get any benefit from doing so.

One of the side-effects of this style of netweaving is you will increase your visibility in your networks.  This means, when someone does need your product or service, you’re more likely to me remembered.  It’s not about netweaving to get this result.... but genuine netweaving produces this result.

So, party on.... and enjoy the social aspect of the next few weeks.

Google ranking for social network personalities

Apparently Google has figured out a way to 'rank' people based on the number of friends they have on social networking sites.... and how many friends they're friends have (read the full article here http://tinyurl.com/3m4fsy).

What that means is we can measure someone's 'influence' in the social networking sphere in the same way we measure a website's popularity with tools like PageRank.  This is pretty cool and has some great implications for selling targetted advertising to very targeted communities... I'm looking forward to seeing how that rolls out...

It will also be interesting to see the impact that it has on social networking.  There will be the existing 'big' influencers that will of course gain a high ranking (like Seth Godin or Chris Brogan) because they have, over time, developed a strong online network by engaging with their 'followers'.  However it will be interesting to see how people try to manipulate the ranking tool.... I see it already in some of the networks I belong too.... people 'adding me as a friend' without 'introducing' themselves or engaging with me after that inital 'friend request' - so in other words all they're doing is building they're friends numbers.

As Dennis Howlett says as a guest on Chris's site "I'm betting that of the near 2,000 people that follow me [on Twitter],less than 10% are truly active".

I'm sure, just as Google page rank recognises 'link spamming' as 'illegitimate' when it comes to trying to boost a site's ranking it will also recognise 'friend collecting' and discount it when it comes to ranking influence.... but it will be fun to see how people try to 'game' the system.

My point then for today is to treat online social networking like you would with any other networking - with integriry, follow-through and engagement.  The purpose of building a network (any network) is to build a community of like-minded people with similar interests.  It's not to see how many people you can 'collect' - whether it's business cards or 'online friends' - it's pointless if you're not really connecting with them.

Cat

P.S. thanks to Anne Bartlett Bragg and her Twitter post for the article that prompted all this thinking

Who are you talking to?

There is an ad on TV at the moment for a new range of sanitary products for women.  They depict a woman spending a 'girlie' day with a beaver (yes, an animal beaver), with the 'punchline' suggesting that a girl's beaver is her best friend... and therefore you should take care of her with these new products.

Now, if this ad was selling something to men, it might be effective.  But no self-respecting woman I know uses the word beaver let alone considers 'her beaver' her best friend.... (or am I really getting old and out-of-touch?!?!)  I can only guess it's been designed by a bloke in an ad agency who thinks it's a clever play on modern day colloquialism.  Problem is, that colloquail phrase is used by men... and they're generally not the decision-makers when it comes to sanitary products.

Apart from wanting to highlight the ridiculousness of such an ad, it raises an important point about understanding who you're talking to in your marketing efforts.  There's a lot of beer ads at the moment that I think really hit the mark - because they really speak to their target market - fun loving men who like to have a laugh at themselves (and others around them).  Likewise there was an ad doing the rounds recently for an online dating service, which listed the statistics of finding a single man, utlimately with a punch line suggesting there were a limited number of eligible single men, none of which were in the bar that our single girl was sitting.

The easiest way of understanding the psycographics of your market is to talk to them - in person - to find out what motivates them to buy your product or service.  Better still, sell to people just like you - then you don't need to talk to others - you just know yourself what would have you buy.

And if you're hiring assistance to help in your marketing efforts, hire someone who has proven success in marketing to your market... or is a member of your target market - you eliminate the guesswork and you can talk the language of your market easily.