The following are statements I've heard companies make as they are going down the tubes. Find out why they can spell disaster for your business.
"Our only problem is traffic."
Slow traffic is a symptom, not a disease. Look for its cause. Why is traffic slow? Is it because the public doesn't know about you, or is it because they do? Is the problem with your advertising, or is there something wrong inside your business?
"That's not our customer."
The businessperson who says, "Our customer doesn't care about price," is usually surprised by how quickly he runs out of prospects. Are there customers out there who don't care about price? Sure there are. But what percentage of the population do you think it is?
"Our advertising is reaching the wrong people."
I've never seen a company fail because they were reaching the wrong people, but I've seen hundreds fail because they were saying the wrong things. Do your ads speak to the felt needs of your customers, or are you answering questions no one is asking?
"I don't worry about what the competition is doing; I only worry about what we're doing."
Is there a game that rewards a player for ignoring the moves of his opponent? If there is, I've never heard of it. Business is competitive, and you're not the only player in the game. Like it or not, you're being compared to competitors by your customers.
"There's enough business out there for all of us."
A limited number of dollars are going to be spent in your business category this year. Are your competitors going to make sure you get your fair share?
"We can't compete with the internet."
The idea that the internet is a low-overhead business environment is a myth. Other than cost of occupancy (rent), the costs of doing business online are the same as for brick-and-mortar businesses. The average brick-and-mortar retail store spends less than 5 percent of its annual sales on rent. If online companies had no offices, no shipping facilities, no warehouses or other physical presence, they could still offer only a 5 percent price advantage to your customer. If you're not competitive with the internet, you need to take a close look at how you're buying. You need to comb through your payroll, your miscellaneous expenses, and your general and administrative expenses. Your problem is inside your own house.
"Our secret is our people. No one provides as warm a customer experience as we do."
There are dozens of business owners who have convinced themselves that having "better people" was their store's primary advantage. In every instance, the store's prices were high, their merchandise was unremarkable and their people were average. Even if your staff is exceptional, the worst thing you can advertise is remarkable customer service. These ads make you sound like your prices are high and you know it, so you're trying to cover it up by talking about how wonderfully you treat your customers. Worse, the expectations of the public will be raised to impossible levels. Promise magical service, and you'll hear endless complaints. I've made this mistake more than once.
CONCLUSION
How Did You Score?
You're average if you've heard yourself say just one or two of these things. Hopefully, you've recovered from your wrong-headed thinking and are on the road to right action.
You've got a problem if you're guilty of saying three of these things. If you want to recover, you need to start associating with people who will smack you when you start talking nonsense.
You're in real trouble if you say and believe four of these things. It's like a drug habit. You say these things to reduce your anxiety and ease the pain of failure, much the same way an addict pops a perspective-altering pill to help him make it through the day. Rehab is going to be tough, but you can survive if you dig deep and awaken the tiger within you.
You're not going to make it if you're saying five of the statements above. Can you hear the fat lady singing? I don't mean to be harsh, but you really ought to take a hard look and decide if this is what you should be doing.
If you're not saying any of these things, then excellent. The world is yours for the taking.
Sunday, December 30, 2007
Saturday, December 29, 2007
FATAL ERRORS OF INTERNET MARKETING
Use large graphics and no navigational aids
Have you ever tried to load a page and were met with a 150KB opening graphic that takes 2 minutes to download? Or have you clicked all around a site unable to find what you are looking for? Don't make the same mistakes and alienate your visitors before they become customers. Make it your goal to have pages load in 30 seconds or less, preferably faster on your main page. Have enticing information on the first screen so that visitors can see it without having to scroll down (of course, you can and should have scrollable pages, but have the material to catch their eye "above the fold"). Bear in mind that although Windows default screen resolution is 640x480 pixels, some will be seeing your page at 800x600, even 1024x768 pixels. If you are unfamiliar with the intricacies of HTML code and scripting, do yourself a favor and hire a professional. You'll be glad you did.
Host your web site on a slow server
There is nothing more frustrating than waiting for a web page to load from a slow server. In fact, many people won't wait - with a single click they're off to somewhere else. Your web site should be hosted on a minimum T1 connection, a T3/DS3 is much preferred. Does the host server have redundant lines (in case one goes down, will your web site still be accessible?). On-site backups are also good to have, although you or your web site designer should maintain your own.
Don't list your web site in search engines, or not correctly
This is the one thing done most often but also most often incorrectly. All search engine submissions should be done manually. The concept of a all-in-one search engine submission service is a nice idea, but the simple fact is it is not reliable. Every search engine is different, and each have their own method of both getting a web site included and performing searches. Web site submissions should be performed to take advantage of both. Again, you may want to have a professional do this (entire companies exist around this concept, but check references and ensure they submit all sites manually).
How many search engines should you submit your site to? Well, there are hundreds if not thousands of search engines, indexes, hot lists, and directories out there. If you ensure that you are placed in the top 12-15 you will be in good shape, as these will provide you with 90-95% "coverage". The remaining 5-10% can be attained with a lot of time, money, or both. Making sure that your web site gets listed on "Billy Bob's Kool Links" page (with 17 hits a month) just may not be worth the trouble.
One caveat: if you are able to find places that are directly related to your web site, you should submit it regardless of their traffic as you will be reaching a more targeted audience that way.
Place your web site online and wait for the phone to ring
Having a web site is not the be-all end-all of marketing on the Internet. Since your web site is considered a virtual storefront, you should do everything in your power (and budget) to direct traffic to your web site. Banner advertising, press releases, appropriate newsgroup postings, links on complementary pages and more can be done. You would not think of opening up a store in the real world without budgeting money to promote it, your web site must be given the same consideration.
Don't respond to visitor inquiries on a timely basis
Make sure all e-mails you receive are responded to within 24 hours, even the same day if at all possible. People want information and they want it fast. The Internet makes it easy for people to quickly find and purchase goods and services - make sure it is from you and not your online competitor!
Likewise, if a potential customer wrote a letter to your company you wouldn't reply with a hastily scribbled missive on a sheet of notebook paper - be sure not to send them the e-mail equivalent! Every e-mail you send out is an advertisement for your company, so make sure it is grammatically correct and doesn't contain misspellings. While this may be a "no-brainer", it is amazing how many e-mails are sent out with typos and other errors. And for Pete's sake, DON'T TYPE IN ALL CAPS!! Besides being difficult to read, it is the e-mail equivalent of yelling and frowned upon in the online community.
Don't update your web site
Web sites look stale if they aren't changed periodically. Worse yet are those that still wish you "Happy Holidays" in March! Make sure any expired information is removed promptly, and keep those pages dynamic while still staying within the theme of the site. Every so often a site may need a general overhaul - as they say "change is good!" As most of the time changes are billed at an hourly rate, these should be budgeted for as well.
SPAM, SPAM, SPAM, SPAM, SPAM.....
"Spam" is the sending of unsolicited e-mail or posting inappropriate messages to newsgroups. Simply put, don't do it. Besides giving your company a negative image, the recipients can retaliate by e-mail bombing you (like sending 10,000 e-mails an hour), your online provider, and your web hosting service. The end result is your e-mail account could be terminated by your provider, and you may even lose your web site. Many online services and hosting companies have a no-spam clause in their service agreement.
Have you ever tried to load a page and were met with a 150KB opening graphic that takes 2 minutes to download? Or have you clicked all around a site unable to find what you are looking for? Don't make the same mistakes and alienate your visitors before they become customers. Make it your goal to have pages load in 30 seconds or less, preferably faster on your main page. Have enticing information on the first screen so that visitors can see it without having to scroll down (of course, you can and should have scrollable pages, but have the material to catch their eye "above the fold"). Bear in mind that although Windows default screen resolution is 640x480 pixels, some will be seeing your page at 800x600, even 1024x768 pixels. If you are unfamiliar with the intricacies of HTML code and scripting, do yourself a favor and hire a professional. You'll be glad you did.
Host your web site on a slow server
There is nothing more frustrating than waiting for a web page to load from a slow server. In fact, many people won't wait - with a single click they're off to somewhere else. Your web site should be hosted on a minimum T1 connection, a T3/DS3 is much preferred. Does the host server have redundant lines (in case one goes down, will your web site still be accessible?). On-site backups are also good to have, although you or your web site designer should maintain your own.
Don't list your web site in search engines, or not correctly
This is the one thing done most often but also most often incorrectly. All search engine submissions should be done manually. The concept of a all-in-one search engine submission service is a nice idea, but the simple fact is it is not reliable. Every search engine is different, and each have their own method of both getting a web site included and performing searches. Web site submissions should be performed to take advantage of both. Again, you may want to have a professional do this (entire companies exist around this concept, but check references and ensure they submit all sites manually).
How many search engines should you submit your site to? Well, there are hundreds if not thousands of search engines, indexes, hot lists, and directories out there. If you ensure that you are placed in the top 12-15 you will be in good shape, as these will provide you with 90-95% "coverage". The remaining 5-10% can be attained with a lot of time, money, or both. Making sure that your web site gets listed on "Billy Bob's Kool Links" page (with 17 hits a month) just may not be worth the trouble.
One caveat: if you are able to find places that are directly related to your web site, you should submit it regardless of their traffic as you will be reaching a more targeted audience that way.
Place your web site online and wait for the phone to ring
Having a web site is not the be-all end-all of marketing on the Internet. Since your web site is considered a virtual storefront, you should do everything in your power (and budget) to direct traffic to your web site. Banner advertising, press releases, appropriate newsgroup postings, links on complementary pages and more can be done. You would not think of opening up a store in the real world without budgeting money to promote it, your web site must be given the same consideration.
Don't respond to visitor inquiries on a timely basis
Make sure all e-mails you receive are responded to within 24 hours, even the same day if at all possible. People want information and they want it fast. The Internet makes it easy for people to quickly find and purchase goods and services - make sure it is from you and not your online competitor!
Likewise, if a potential customer wrote a letter to your company you wouldn't reply with a hastily scribbled missive on a sheet of notebook paper - be sure not to send them the e-mail equivalent! Every e-mail you send out is an advertisement for your company, so make sure it is grammatically correct and doesn't contain misspellings. While this may be a "no-brainer", it is amazing how many e-mails are sent out with typos and other errors. And for Pete's sake, DON'T TYPE IN ALL CAPS!! Besides being difficult to read, it is the e-mail equivalent of yelling and frowned upon in the online community.
Don't update your web site
Web sites look stale if they aren't changed periodically. Worse yet are those that still wish you "Happy Holidays" in March! Make sure any expired information is removed promptly, and keep those pages dynamic while still staying within the theme of the site. Every so often a site may need a general overhaul - as they say "change is good!" As most of the time changes are billed at an hourly rate, these should be budgeted for as well.
SPAM, SPAM, SPAM, SPAM, SPAM.....
"Spam" is the sending of unsolicited e-mail or posting inappropriate messages to newsgroups. Simply put, don't do it. Besides giving your company a negative image, the recipients can retaliate by e-mail bombing you (like sending 10,000 e-mails an hour), your online provider, and your web hosting service. The end result is your e-mail account could be terminated by your provider, and you may even lose your web site. Many online services and hosting companies have a no-spam clause in their service agreement.
Friday, December 28, 2007
WORKING FROM HOME
In the new era of today’s business, people start looking for new option of doing business such as home-based business. Besides of cost saving, home-based business is growing because of time flexibility and managing business is easier from home due to technology improvement and enhancement such as internet and communication system. In order to ensure that your home based-business run smoothly as you planned, here are some tips about things that you should consider :
Space
Create a physically separate space for your office. A separate room, if possible. If your office must be within a room used for personal purposes, use screens or dividers to separate personal from work space.
Communication
Get a separate number for your business, preferably a business line. This will appear more professional. Keep your personal line for your family and children to use.
Answering call
Answer the telephone with a pleasant greeting that communicates you're delighted to hear every caller and at the same time creates a professional business image. Use a mirror to make sure you smile as you answer the phone. This helps you develop a "smiling voice."
Time management
Set goals for every day and work on those first. Manage time effectively -- don't get bogged down reacting to interruptions and demands. Learn to separate the important from the urgent.
Cost saving
Value your time as you value your money. Don't watch your fax machine send multiple-page documents. Instead of driving back and forth to a store to make photocopies or to hand-deliver documents, equip your home office with technology like a multipurpose office machine (priced at $500 or less) that serves as your fax, copy machine, printer, answering machine, scanner, and more. Also consider using your computer for sending and receiving faxes -- you'll cut down on paper costs.
Documentation
Save time by employing easy-to-use check-writing and accounting software, but keep paper copies of receipts, invoices, and checks. Tax records must be kept for at least six years after you've filed a return.
Filing system
Organize your filing systems so that everything is easy to find. To make them stand out, use color-coded labels on files and computer diskettes.
Furniture
Get furniture sized for home offices instead of standard office furniture. A number of furniture companies are manufacturing special home-office lines. Smaller furniture is better adapted to the entryways and available space in most homes.
Dressing
Dress in a way that helps you work productively. Some people need to dress as though they were meeting clients at an office; others prefer the loose and comfortable fit of sweats and denim.
Work attitude
Have the attitude that you work from home, not at home. Hibernating is fine for bears, but not for people. Go out to make new contacts and keep old ones alive as well. Particularly if you're a naturally reserved person, remember that your home's a base, not a permanent place.
Space
Create a physically separate space for your office. A separate room, if possible. If your office must be within a room used for personal purposes, use screens or dividers to separate personal from work space.
Communication
Get a separate number for your business, preferably a business line. This will appear more professional. Keep your personal line for your family and children to use.
Answering call
Answer the telephone with a pleasant greeting that communicates you're delighted to hear every caller and at the same time creates a professional business image. Use a mirror to make sure you smile as you answer the phone. This helps you develop a "smiling voice."
Time management
Set goals for every day and work on those first. Manage time effectively -- don't get bogged down reacting to interruptions and demands. Learn to separate the important from the urgent.
Cost saving
Value your time as you value your money. Don't watch your fax machine send multiple-page documents. Instead of driving back and forth to a store to make photocopies or to hand-deliver documents, equip your home office with technology like a multipurpose office machine (priced at $500 or less) that serves as your fax, copy machine, printer, answering machine, scanner, and more. Also consider using your computer for sending and receiving faxes -- you'll cut down on paper costs.
Documentation
Save time by employing easy-to-use check-writing and accounting software, but keep paper copies of receipts, invoices, and checks. Tax records must be kept for at least six years after you've filed a return.
Filing system
Organize your filing systems so that everything is easy to find. To make them stand out, use color-coded labels on files and computer diskettes.
Furniture
Get furniture sized for home offices instead of standard office furniture. A number of furniture companies are manufacturing special home-office lines. Smaller furniture is better adapted to the entryways and available space in most homes.
Dressing
Dress in a way that helps you work productively. Some people need to dress as though they were meeting clients at an office; others prefer the loose and comfortable fit of sweats and denim.
Work attitude
Have the attitude that you work from home, not at home. Hibernating is fine for bears, but not for people. Go out to make new contacts and keep old ones alive as well. Particularly if you're a naturally reserved person, remember that your home's a base, not a permanent place.
Thursday, December 27, 2007
GETTING EXPERT ADVICE
Every entrepreneur thinks he has a business idea that will put him on Easy Street. After opening day, reality hits. Merchandise isn't moving. Expenses are too high. Profits are too low. You're not sure what went wrong or how to fix it. Suddenly you're in panic mode.
Many startup crises can be averted by seeking expert guidance in the planning stages, long before leases are signed or business cards are printed. Like a savvy career counselor or financial planner, the right advisor can help you build a solid foundation as well as steer you through choppy waters once you open your doors.
This is particularly true if you're a first-time entrepreneur who has never coped with problems like weak repeat business, poor cash flow, flawed order tracking or fulfillment systems. Getting help from outside experts can mean the difference between smooth sailing and a sinking ship, both at startup and as your business matures.
Where to Look
When you're looking for a shoulder to lean on, there are three types of expert resources available.
1. Seminars, books and other self-help materials are useful and affordable for any business rookie.
2. Business coaches are long-term advisors who can help polish your initial business plan and offer strategic problem-solving skills moving forward.
3. Consultants are short-term advisors hired for their tactical expertise in specific areas such as computer networking or employee recruitment.
These options are not mutually exclusive. Each kind of resource serves a different purpose. Just as it takes a village to raise a child, it takes an assortment of outside specialists to shepherd a small business through the startup phase. A mix of these three types of assistance can not only prevent mistakes at startup, but also provide valuable ideas and tools for shaping and growing the business.
Books and Seminars
Never underestimate the power of a good business book, DVD, CD or seminar to inspire, teach and save you from the kinds of missteps that come from inexperience. The choice is nearly unlimited, from Business 101-type books like Small Business for Dummies to workshops run by Small Business Development Centers, frequently located at community colleges.
These resources are helpful in conveying basic business principles and examples as well as providing general advice in areas such as writing a business plan or marketing by direct mail. Consult your local library, university, chamber of commerce, or retail or online bookstore for options.
Business Coaches
While self-help resources can provide generic advice, a business coach delivers one-on-one mentoring specific to your enterprise and challenges. Coaches usually charge a monthly retainer that includes a defined number of hours and a specific program plan.
A good coach has years of business experience that he or she can use to analyze your business model, pinpoint flaws, suggest improvements, identify and troubleshoot day-to-day problems, and fine-tune areas ranging from sales and marketing to hiring and team management. If sales are slow or customers are complaining, he or she will figure out why and formulate a cure. New business owners are simply too busy minding the store and usually too inexperienced to solve these problems themselves.
In choosing a coach, look for a local person who can see your operation firsthand, provide training assistance and be readily available. Be sure that your personalities mesh and that he or she has specific systems and methodologies to help you run your business properly. Coaching is a long-term relationship that requires good communication and mutual respect.
Also, select a coach with a broad business background rather than someone from your industry. To ensure creative problem-solving, you need an advisor who isn't shackled by preconceived notions of your market. And remember that you're looking for a business coach, not a life coach. There's a big difference.
Consultants
For tactical challenges--like setting up accounting systems or unplugging a manufacturing bottleneck--turn to an outside consultant with specific expertise in the area in question. Consultants typically charge an hourly fee and should be able to tell you upfront what they will charge for the job.
One heating/air conditioning company I know needed a consultant to reorganize the equipment in its service vans. They hired an upfitter to design a shelving and drawer arrangement to squeeze in the maximum amount of gear, as well as ensure that each item was within easy reach. In that case, a business coach identified the need for the upfit and assisted in identifying the best candidate for the task. In other cases, the business owner conducts the hunt himself.
When vetting consultants, get referrals or recommendations from clients with projects similar to yours whenever possible, and get a firm estimate of the time it will take to do the job. Also be sure that the company you hire will supply documentation allowing you to retrace their steps if necessary to solve a problem or duplicate their work at a later date.
High Return on Investment
Getting expert advice at the right time can avoid costly mistakes at startup, from sales forecasts that are too optimistic to ill-advised marketing strategies. It can also facilitate mid-course corrections necessitated by customer feedback, changing market conditions or problems within your organization itself.
Yes, you have to pay to play. But in the long run, the right guidance can save you from months of poor performance and other budget-busting scenarios. With professional advice, you can often dramatically lessen the amount of nail-biting and red ink you have to endure before the business takes hold. Easy Street might be around the corner after all.
Many startup crises can be averted by seeking expert guidance in the planning stages, long before leases are signed or business cards are printed. Like a savvy career counselor or financial planner, the right advisor can help you build a solid foundation as well as steer you through choppy waters once you open your doors.
This is particularly true if you're a first-time entrepreneur who has never coped with problems like weak repeat business, poor cash flow, flawed order tracking or fulfillment systems. Getting help from outside experts can mean the difference between smooth sailing and a sinking ship, both at startup and as your business matures.
Where to Look
When you're looking for a shoulder to lean on, there are three types of expert resources available.
1. Seminars, books and other self-help materials are useful and affordable for any business rookie.
2. Business coaches are long-term advisors who can help polish your initial business plan and offer strategic problem-solving skills moving forward.
3. Consultants are short-term advisors hired for their tactical expertise in specific areas such as computer networking or employee recruitment.
These options are not mutually exclusive. Each kind of resource serves a different purpose. Just as it takes a village to raise a child, it takes an assortment of outside specialists to shepherd a small business through the startup phase. A mix of these three types of assistance can not only prevent mistakes at startup, but also provide valuable ideas and tools for shaping and growing the business.
Books and Seminars
Never underestimate the power of a good business book, DVD, CD or seminar to inspire, teach and save you from the kinds of missteps that come from inexperience. The choice is nearly unlimited, from Business 101-type books like Small Business for Dummies to workshops run by Small Business Development Centers, frequently located at community colleges.
These resources are helpful in conveying basic business principles and examples as well as providing general advice in areas such as writing a business plan or marketing by direct mail. Consult your local library, university, chamber of commerce, or retail or online bookstore for options.
Business Coaches
While self-help resources can provide generic advice, a business coach delivers one-on-one mentoring specific to your enterprise and challenges. Coaches usually charge a monthly retainer that includes a defined number of hours and a specific program plan.
A good coach has years of business experience that he or she can use to analyze your business model, pinpoint flaws, suggest improvements, identify and troubleshoot day-to-day problems, and fine-tune areas ranging from sales and marketing to hiring and team management. If sales are slow or customers are complaining, he or she will figure out why and formulate a cure. New business owners are simply too busy minding the store and usually too inexperienced to solve these problems themselves.
In choosing a coach, look for a local person who can see your operation firsthand, provide training assistance and be readily available. Be sure that your personalities mesh and that he or she has specific systems and methodologies to help you run your business properly. Coaching is a long-term relationship that requires good communication and mutual respect.
Also, select a coach with a broad business background rather than someone from your industry. To ensure creative problem-solving, you need an advisor who isn't shackled by preconceived notions of your market. And remember that you're looking for a business coach, not a life coach. There's a big difference.
Consultants
For tactical challenges--like setting up accounting systems or unplugging a manufacturing bottleneck--turn to an outside consultant with specific expertise in the area in question. Consultants typically charge an hourly fee and should be able to tell you upfront what they will charge for the job.
One heating/air conditioning company I know needed a consultant to reorganize the equipment in its service vans. They hired an upfitter to design a shelving and drawer arrangement to squeeze in the maximum amount of gear, as well as ensure that each item was within easy reach. In that case, a business coach identified the need for the upfit and assisted in identifying the best candidate for the task. In other cases, the business owner conducts the hunt himself.
When vetting consultants, get referrals or recommendations from clients with projects similar to yours whenever possible, and get a firm estimate of the time it will take to do the job. Also be sure that the company you hire will supply documentation allowing you to retrace their steps if necessary to solve a problem or duplicate their work at a later date.
High Return on Investment
Getting expert advice at the right time can avoid costly mistakes at startup, from sales forecasts that are too optimistic to ill-advised marketing strategies. It can also facilitate mid-course corrections necessitated by customer feedback, changing market conditions or problems within your organization itself.
Yes, you have to pay to play. But in the long run, the right guidance can save you from months of poor performance and other budget-busting scenarios. With professional advice, you can often dramatically lessen the amount of nail-biting and red ink you have to endure before the business takes hold. Easy Street might be around the corner after all.
Wednesday, December 26, 2007
THE PEOPLE'S MARKETING
Why more marketers are daring to let customers take charge of their advertising.
This idea has lately been taken to its logical extreme.
Why not cut out the middleman and just let target customers make their own ads ?
Examples of what could be thought of as "the people's marketing" have been cropping up all over the place.
Here are the examples :
Mercedes-Benz
Has been running ads featuring photographs of customers with their cars -- the automaker received more than 1,000 snapshots when it solicited submissions earlier this year.
KFC
Held a contest last year asking its customers to devise commercials for the chicken chain and ran the winning spot nationwide during prime time. More recently, Coors Light had a similar contest in Canada.
More companies, it seems, are letting their most loyal customers dabble with creating and defining their brands. And even more surprising, perhaps, is that many companies' loyal consumers are eager to get in on the branding game.
What's driving this ?
As the CEO of ad giant Saatchi & Saatchi, Kevin Roberts is in a position to know a great deal about the relationship between consumers and the brands they choose, and he has recently published a book about where he sees that relationship heading. In Lovemarks: The Future Beyond Brands, Roberts argues that the best brands "are not owned by the manufacturers, the producers, the businesses." Rather, "they are owned by the people who love them." A related website, Lovemarks, is jammed with postings from people evangelizing for the products and services they love, from Lego to Post-it Notes.
Another take on the people's marketing notion is in the forthcoming book Brand Hijack by Alex Wipperfurth, co-founder of San Francisco marketing firm Plan B. Wipperfurth, whose clients have included Napster and Pabst Blue Ribbon, believes that companies need to embrace brand "cocreation." By that, he means that marketers should invite consumer subcultures to help shape a brand's ideology, use, and persona.
"The real hook is to have everybody selling their experience as consumers." The West Coast In-N-Out Burger chain has done this exceptionally well, Wipperfurth says, by developing a "secret menu," designed via customer suggestions, whose offerings are not on the official menu but are on the cash registers at its outlets. The accommodation helps create a kind of insider club, letting its members think about and discuss the brand in their own unique, unfiltered way.
Also extending this concept is Obtainium.tv, a Boston-based start-up that is basically a side project for 34-year-old Owen Mack, who has a graphic design background and runs a family kitchenware store, and his 32-year-old cousin Jesse Buckley, who works for a TV postproduction house and makes documentary films.
Motivated partly by their disgust for overbearing corporate marketing, the pair made a series of half-minute digital videos highlighting some of their favorite products -- Puma sneakers and Schlitz and Pabst beer -- and posted them at www.obtainium.tv. The concept evolved as they came to believe that there were more people like them, who had pent-up desire to promote the brands they love. "The real hook," Buckley says, "is to have this kind of peer-to-peer advertising, where everybody is selling their experience as consumers."
This idea has lately been taken to its logical extreme.
Why not cut out the middleman and just let target customers make their own ads ?
Examples of what could be thought of as "the people's marketing" have been cropping up all over the place.
Here are the examples :
Mercedes-Benz
Has been running ads featuring photographs of customers with their cars -- the automaker received more than 1,000 snapshots when it solicited submissions earlier this year.
KFC
Held a contest last year asking its customers to devise commercials for the chicken chain and ran the winning spot nationwide during prime time. More recently, Coors Light had a similar contest in Canada.
More companies, it seems, are letting their most loyal customers dabble with creating and defining their brands. And even more surprising, perhaps, is that many companies' loyal consumers are eager to get in on the branding game.
What's driving this ?
As the CEO of ad giant Saatchi & Saatchi, Kevin Roberts is in a position to know a great deal about the relationship between consumers and the brands they choose, and he has recently published a book about where he sees that relationship heading. In Lovemarks: The Future Beyond Brands, Roberts argues that the best brands "are not owned by the manufacturers, the producers, the businesses." Rather, "they are owned by the people who love them." A related website, Lovemarks, is jammed with postings from people evangelizing for the products and services they love, from Lego to Post-it Notes.
Another take on the people's marketing notion is in the forthcoming book Brand Hijack by Alex Wipperfurth, co-founder of San Francisco marketing firm Plan B. Wipperfurth, whose clients have included Napster and Pabst Blue Ribbon, believes that companies need to embrace brand "cocreation." By that, he means that marketers should invite consumer subcultures to help shape a brand's ideology, use, and persona.
"The real hook is to have everybody selling their experience as consumers." The West Coast In-N-Out Burger chain has done this exceptionally well, Wipperfurth says, by developing a "secret menu," designed via customer suggestions, whose offerings are not on the official menu but are on the cash registers at its outlets. The accommodation helps create a kind of insider club, letting its members think about and discuss the brand in their own unique, unfiltered way.
Also extending this concept is Obtainium.tv, a Boston-based start-up that is basically a side project for 34-year-old Owen Mack, who has a graphic design background and runs a family kitchenware store, and his 32-year-old cousin Jesse Buckley, who works for a TV postproduction house and makes documentary films.
Motivated partly by their disgust for overbearing corporate marketing, the pair made a series of half-minute digital videos highlighting some of their favorite products -- Puma sneakers and Schlitz and Pabst beer -- and posted them at www.obtainium.tv. The concept evolved as they came to believe that there were more people like them, who had pent-up desire to promote the brands they love. "The real hook," Buckley says, "is to have this kind of peer-to-peer advertising, where everybody is selling their experience as consumers."
Tuesday, December 25, 2007
TIPS TO GROW YOUR HOME BASED BUSINESS
If you can't face the prospect of giving up the convenience and comforts of working from home, but you don't want to miss out on your chance to grow to the next level, here are the solutions.
Rent a professional suite.
If you find you need a place where you can create a serious business image, hold conferences, or get more extensive office services, consider renting a professional suite. Such suites are part of a complex that includes small offices, central conference facilities, and a full range of secretarial services available to anyone subleasing space from the complex.
Rent private office space.
Renting an office doesn't necessarily mean you have to say good-bye to working from home. Some people have rented a second office for certain activities (receiving mail or phone calls, working on large equipment, holding meetings) while still maintaining a home office where they can do creative or detail work. And you need not rent such space full-time. You can rent space part-time or by the day. In renting part-time space, you arrange for the hours you need the space each week and pay a flat monthly fee which can include some additional services like mailing, addressing, answering service, name on building directory, etc. Such rental arrangements are usually advertised in the Yellow Pages as "Business Identity Programs" under Office Rentals.
Contract work with other businesses.
Instead of moving his business to a warehouse, Bob Baxter hired a company to bottle and package his pet health-care products, jobs he once handled in his garage. When developing a large marketing program for a customer, consultant James McClaren subcontracted with several small businesses rather than renting office space and hiring employees for the duration of the contract. Using a free-lance writer, a packager, and an office-services company, he got the program done without leaving home.
Move to a bigger home.
Whether you buy, lease, or build, a new and larger home may provide the added or specialized space you need to continue living and working under one roof. What may have started out as the perfect home office may not meet your needs at another stage in your life.
Hire employees who will work from their homes.
Some home-based companies, like MicroGraphic Images, a software firm, and Escrow Overload, a temporary help agency for escrow personnel, have expanded by adding staff who work from their own homes. Commercial artist Diane Wessling Blake of MicroGraphic Images says, "By having our employees work at home, we can expand as rapidly as we need to and keep our costs to a minimum. In a fast-growing industry like ours, this is very important." The founders and chief executive officers of these companies all still work from home, too.
Rent storage or warehouse space.
When potter June Wright had the chance to fill an order for over two thousand goblets for a special benefit, she knew she'd have to hire helpers. She also knew they wouldn't all fit in her studio behind the house, so she found a warehouse to rent and hired ten students, part-time, for one month. This arrangement worked so well that if she can get more orders on such a grand scale, she wants to keep it up. She will continue running the business and creating pots from her own home but will have a supervisor overseeing operations at the warehouse.
Rent a professional suite.
If you find you need a place where you can create a serious business image, hold conferences, or get more extensive office services, consider renting a professional suite. Such suites are part of a complex that includes small offices, central conference facilities, and a full range of secretarial services available to anyone subleasing space from the complex.
Rent private office space.
Renting an office doesn't necessarily mean you have to say good-bye to working from home. Some people have rented a second office for certain activities (receiving mail or phone calls, working on large equipment, holding meetings) while still maintaining a home office where they can do creative or detail work. And you need not rent such space full-time. You can rent space part-time or by the day. In renting part-time space, you arrange for the hours you need the space each week and pay a flat monthly fee which can include some additional services like mailing, addressing, answering service, name on building directory, etc. Such rental arrangements are usually advertised in the Yellow Pages as "Business Identity Programs" under Office Rentals.
Contract work with other businesses.
Instead of moving his business to a warehouse, Bob Baxter hired a company to bottle and package his pet health-care products, jobs he once handled in his garage. When developing a large marketing program for a customer, consultant James McClaren subcontracted with several small businesses rather than renting office space and hiring employees for the duration of the contract. Using a free-lance writer, a packager, and an office-services company, he got the program done without leaving home.
Move to a bigger home.
Whether you buy, lease, or build, a new and larger home may provide the added or specialized space you need to continue living and working under one roof. What may have started out as the perfect home office may not meet your needs at another stage in your life.
Hire employees who will work from their homes.
Some home-based companies, like MicroGraphic Images, a software firm, and Escrow Overload, a temporary help agency for escrow personnel, have expanded by adding staff who work from their own homes. Commercial artist Diane Wessling Blake of MicroGraphic Images says, "By having our employees work at home, we can expand as rapidly as we need to and keep our costs to a minimum. In a fast-growing industry like ours, this is very important." The founders and chief executive officers of these companies all still work from home, too.
Rent storage or warehouse space.
When potter June Wright had the chance to fill an order for over two thousand goblets for a special benefit, she knew she'd have to hire helpers. She also knew they wouldn't all fit in her studio behind the house, so she found a warehouse to rent and hired ten students, part-time, for one month. This arrangement worked so well that if she can get more orders on such a grand scale, she wants to keep it up. She will continue running the business and creating pots from her own home but will have a supervisor overseeing operations at the warehouse.
Monday, December 24, 2007
TIPS TO GROW YOUR HOME BASED BUSINESS
If you can't face the prospect of giving up the convenience and comforts of working from home, but you don't want to miss out on your chance to grow to the next level, here are the solutions.
Rent a professional suite.
If you find you need a place where you can create a serious business image, hold conferences, or get more extensive office services, consider renting a professional suite. Such suites are part of a complex that includes small offices, central conference facilities, and a full range of secretarial services available to anyone subleasing space from the complex.
Rent private office space.
Renting an office doesn't necessarily mean you have to say good-bye to working from home. Some people have rented a second office for certain activities (receiving mail or phone calls, working on large equipment, holding meetings) while still maintaining a home office where they can do creative or detail work. And you need not rent such space full-time. You can rent space part-time or by the day. In renting part-time space, you arrange for the hours you need the space each week and pay a flat monthly fee which can include some additional services like mailing, addressing, answering service, name on building directory, etc. Such rental arrangements are usually advertised in the Yellow Pages as "Business Identity Programs" under Office Rentals.
Contract work with other businesses.
Instead of moving his business to a warehouse, Bob Baxter hired a company to bottle and package his pet health-care products, jobs he once handled in his garage. When developing a large marketing program for a customer, consultant James McClaren subcontracted with several small businesses rather than renting office space and hiring employees for the duration of the contract. Using a free-lance writer, a packager, and an office-services company, he got the program done without leaving home.
Move to a bigger home.
Whether you buy, lease, or build, a new and larger home may provide the added or specialized space you need to continue living and working under one roof. What may have started out as the perfect home office may not meet your needs at another stage in your life.
Hire employees who will work from their homes.
Some home-based companies, like MicroGraphic Images, a software firm, and Escrow Overload, a temporary help agency for escrow personnel, have expanded by adding staff who work from their own homes. Commercial artist Diane Wessling Blake of MicroGraphic Images says, "By having our employees work at home, we can expand as rapidly as we need to and keep our costs to a minimum. In a fast-growing industry like ours, this is very important." The founders and chief executive officers of these companies all still work from home, too.
Rent storage or warehouse space.
When potter June Wright had the chance to fill an order for over two thousand goblets for a special benefit, she knew she'd have to hire helpers. She also knew they wouldn't all fit in her studio behind the house, so she found a warehouse to rent and hired ten students, part-time, for one month. This arrangement worked so well that if she can get more orders on such a grand scale, she wants to keep it up. She will continue running the business and creating pots from her own home but will have a supervisor overseeing operations at the warehouse.
Rent a professional suite.
If you find you need a place where you can create a serious business image, hold conferences, or get more extensive office services, consider renting a professional suite. Such suites are part of a complex that includes small offices, central conference facilities, and a full range of secretarial services available to anyone subleasing space from the complex.
Rent private office space.
Renting an office doesn't necessarily mean you have to say good-bye to working from home. Some people have rented a second office for certain activities (receiving mail or phone calls, working on large equipment, holding meetings) while still maintaining a home office where they can do creative or detail work. And you need not rent such space full-time. You can rent space part-time or by the day. In renting part-time space, you arrange for the hours you need the space each week and pay a flat monthly fee which can include some additional services like mailing, addressing, answering service, name on building directory, etc. Such rental arrangements are usually advertised in the Yellow Pages as "Business Identity Programs" under Office Rentals.
Contract work with other businesses.
Instead of moving his business to a warehouse, Bob Baxter hired a company to bottle and package his pet health-care products, jobs he once handled in his garage. When developing a large marketing program for a customer, consultant James McClaren subcontracted with several small businesses rather than renting office space and hiring employees for the duration of the contract. Using a free-lance writer, a packager, and an office-services company, he got the program done without leaving home.
Move to a bigger home.
Whether you buy, lease, or build, a new and larger home may provide the added or specialized space you need to continue living and working under one roof. What may have started out as the perfect home office may not meet your needs at another stage in your life.
Hire employees who will work from their homes.
Some home-based companies, like MicroGraphic Images, a software firm, and Escrow Overload, a temporary help agency for escrow personnel, have expanded by adding staff who work from their own homes. Commercial artist Diane Wessling Blake of MicroGraphic Images says, "By having our employees work at home, we can expand as rapidly as we need to and keep our costs to a minimum. In a fast-growing industry like ours, this is very important." The founders and chief executive officers of these companies all still work from home, too.
Rent storage or warehouse space.
When potter June Wright had the chance to fill an order for over two thousand goblets for a special benefit, she knew she'd have to hire helpers. She also knew they wouldn't all fit in her studio behind the house, so she found a warehouse to rent and hired ten students, part-time, for one month. This arrangement worked so well that if she can get more orders on such a grand scale, she wants to keep it up. She will continue running the business and creating pots from her own home but will have a supervisor overseeing operations at the warehouse.
Friday, December 21, 2007
STOP TOLERATING THINGS THAT HOLD YOU BACK
Many professionals confess that, although their career is moving forward, their time is consumed with or dragged down by unwanted situations, problems, or behaviors. Not overwhelming individually, they have a way of building up until they affect productivity, cause stress, and waste time and energy.
Although you have a handle on your business' operating costs, there may be some hidden expenses that cost you more than money.
You may tolerate business pitfalls -- an incompetent staff, poorly defined goals and strategies, lackluster results, weak relationships, or undesirable customers -- even when they prevent you from enjoying your business the way you envisioned.
So, why do we tolerate these losses?
''I was apprehensive and didn't know how to confront and eliminate certain issues,'' remembers Sean Stredwick, owner of Rockville-based Sanktuary hair salon, music store, and café. ''I simply accepted there were always going to be problems when running a business, especially with personnel. I realize now that by putting up with certain things, I was actually training people that their unacceptable behavior was okay.''
Oddly enough, tolerating imperfections can yield a positive result. Putting up with unwanted situations creates resistance. Similar to striking a match, the friction of two opposing forces generates heat, providing us with energy. It's human nature to get our energy from any available source, even one that causes suffering or difficulties.
However, resistance also justifies a negative attitude and performance. When we tolerate an overbooked schedule or a bad day, it justifies our right to complain, to stress, to underachieve, to stay busy, or to be ''helpless victims.''
This energy charge keeps us busy; often too busy to make necessary changes or decisions. Although putting up with certain things may seem to produce results, they're more costly than we realize. ''I was more apt to tolerate things because it made me feel useful, even though I was letting something happen that I'd rather do without,'' Stredwick claims. "When I understood how these irritations affected me, I noticed the consequences on my business and work environment. Now I confront unwanted situations immediately without feeling guilty. I'm not angry as often because I don't let incidents fester to the point of eruption.''
Having addressed his tolerances, Stredwick reports, ''I make better decisions for myself, which translates into better decisions for the company.''
As you raise your standards and improve your quality of life, you tolerate less. You become unwilling to take on a person or situation that you know will cost more in frustration and time than the resulting profit. ''It's allowed me to become a better leader and a model for my co-workers and others as to what's possible for them,'' Stredwick claims. ''At some point, you just have to trust that your instincts know what's best for you.''
When you stop putting up with the things that hold you back, you begin to notice that your life and career become easier and more fulfilling.
Since we need all the energy we can get, eliminate your allowances with these tips:
List what may be dragging you down.
Search your business, career, environment, home, and relationships for things you no longer want to tolerate.
Analyze your tolerance.
Determine why you put up with certain people, behaviors, and situations. How does tolerating these things actually work for you?
Handle the small irritants first.
Begin by eliminating the least complicated problems, such as a disorganized office or unreliable office equipment. You might be surprised at the change in your attitude and productivity with a functional and reliable copier, for example.
Establish a zero tolerance policy.
Each irritation is going to have some adverse effect until it's either eliminated or you find another way to respond. Create a system to prevent these situations from happening again. For example, set stronger guidelines for the people in your life, informing them what behavior you will not accept. This can be done in a calm and non-threatening, yet firm manner.
Examine your more complex tolerated problems.
Determine what would need to happen to change or eliminate a complex tolerated problem in your life. For example, too much stress, an inadequate salary or training, unsatisfying work, or mediocre job performance. Look at those things which make your job more difficult and think of ways to ease or undo them. Each one can be addressed through conversation and/or action. It's okay if you don't have an immediate solution. Ask yourself: what would need to happen for me to eliminate what I am currently putting up with?
Note: Resolve these situations completely by addressing the source. Otherwise you'll soon find yourself handling the same annoyance in another form. You will know you have eliminated these irritations permanently when they no longer occur to you as a thought, reminder, or feeling.
Once you begin removing these drains from your life, you'll stop wasting time trying to manage situations that shouldn't exist. Investing time to eliminate these trigger points of contention will add greater value to your company and cut out the most costly overhead in your business and career.
Although you have a handle on your business' operating costs, there may be some hidden expenses that cost you more than money.
You may tolerate business pitfalls -- an incompetent staff, poorly defined goals and strategies, lackluster results, weak relationships, or undesirable customers -- even when they prevent you from enjoying your business the way you envisioned.
So, why do we tolerate these losses?
''I was apprehensive and didn't know how to confront and eliminate certain issues,'' remembers Sean Stredwick, owner of Rockville-based Sanktuary hair salon, music store, and café. ''I simply accepted there were always going to be problems when running a business, especially with personnel. I realize now that by putting up with certain things, I was actually training people that their unacceptable behavior was okay.''
Oddly enough, tolerating imperfections can yield a positive result. Putting up with unwanted situations creates resistance. Similar to striking a match, the friction of two opposing forces generates heat, providing us with energy. It's human nature to get our energy from any available source, even one that causes suffering or difficulties.
However, resistance also justifies a negative attitude and performance. When we tolerate an overbooked schedule or a bad day, it justifies our right to complain, to stress, to underachieve, to stay busy, or to be ''helpless victims.''
This energy charge keeps us busy; often too busy to make necessary changes or decisions. Although putting up with certain things may seem to produce results, they're more costly than we realize. ''I was more apt to tolerate things because it made me feel useful, even though I was letting something happen that I'd rather do without,'' Stredwick claims. "When I understood how these irritations affected me, I noticed the consequences on my business and work environment. Now I confront unwanted situations immediately without feeling guilty. I'm not angry as often because I don't let incidents fester to the point of eruption.''
Having addressed his tolerances, Stredwick reports, ''I make better decisions for myself, which translates into better decisions for the company.''
As you raise your standards and improve your quality of life, you tolerate less. You become unwilling to take on a person or situation that you know will cost more in frustration and time than the resulting profit. ''It's allowed me to become a better leader and a model for my co-workers and others as to what's possible for them,'' Stredwick claims. ''At some point, you just have to trust that your instincts know what's best for you.''
When you stop putting up with the things that hold you back, you begin to notice that your life and career become easier and more fulfilling.
Since we need all the energy we can get, eliminate your allowances with these tips:
List what may be dragging you down.
Search your business, career, environment, home, and relationships for things you no longer want to tolerate.
Analyze your tolerance.
Determine why you put up with certain people, behaviors, and situations. How does tolerating these things actually work for you?
Handle the small irritants first.
Begin by eliminating the least complicated problems, such as a disorganized office or unreliable office equipment. You might be surprised at the change in your attitude and productivity with a functional and reliable copier, for example.
Establish a zero tolerance policy.
Each irritation is going to have some adverse effect until it's either eliminated or you find another way to respond. Create a system to prevent these situations from happening again. For example, set stronger guidelines for the people in your life, informing them what behavior you will not accept. This can be done in a calm and non-threatening, yet firm manner.
Examine your more complex tolerated problems.
Determine what would need to happen to change or eliminate a complex tolerated problem in your life. For example, too much stress, an inadequate salary or training, unsatisfying work, or mediocre job performance. Look at those things which make your job more difficult and think of ways to ease or undo them. Each one can be addressed through conversation and/or action. It's okay if you don't have an immediate solution. Ask yourself: what would need to happen for me to eliminate what I am currently putting up with?
Note: Resolve these situations completely by addressing the source. Otherwise you'll soon find yourself handling the same annoyance in another form. You will know you have eliminated these irritations permanently when they no longer occur to you as a thought, reminder, or feeling.
Once you begin removing these drains from your life, you'll stop wasting time trying to manage situations that shouldn't exist. Investing time to eliminate these trigger points of contention will add greater value to your company and cut out the most costly overhead in your business and career.
Saturday, December 15, 2007
STRATEGIC LEADERSHIP
Having a good plan is compulsory, but knowing how and being able to respond to the unknown is the real goal and benefit of strategic leadership.
Many business leaders think being strategic means being the author of the company's plan for the future. No one would argue the value of a sound business plan but given what happens to the best laid plans of mice and men, experienced leaders know that planning is only the beginning.
DETERMINE WHERE YOU ARE
In reality, planning isn't even what you should do first. For any long-term plan to be successful, you must first be realistic about where you are today. This requires an honest assessment of strengths, weaknesses, threats and opportunities , a step many organizations are loathe to do. The reason usually cited : time.
Taking time before jumping in requires patience -- a competency that many quick thinking and fast moving entrepreneurs don't naturally exercise. This isn't necessarily a bad thing, since many entrepreneurs are successful because of their impatience. Their skill is in seeing opportunity and jumping quickly to take advantage of it. Not afraid of risks, they get to their desired result more quickly than their counterparts ; often a critical reason behind market dominance.
Still, leading strategically requires time for reflection and the ability to realistically asses where you are. With this information, you can most accurately define your destination and chart the course that will take you there.
DEFINE YOUR MISSION AND DIRECTION
A clear understanding of where you are must be balanced by a clear picture of where you need or want to go. Where you want to go is your company's mission. An organization's mission includes the company's vision, long-range direction and short-term goals.
An organization without a mission is like a sailboat without a rudder -- it just goes where the wind (or the marketplace) blows. To define your mission and give your company its direction, you must focus externally, which is usually easy for the risk-taking, fast moving entrepreneur.
Leading strategically includes defining your organization's mission. This requires a keen understanding of the marketplace and your reason for being in business. With a clearly defined mission, you give your organization its rudder.
ENGAGE OTHERS AND FOSTER HIGH INVOLVEMENT
While a clear vision is critical, you cannot make it happen by yourself. Once you've set the course, you must focus internally to engage others whose involvement you will need to successfully make the journey. This includes engaging employees, empowering them to do their jobs and insuring that they have the skills and resources they need.
While the tactical side of these characteristics may be delegated to HR, leadership must first realize their importance and create a corporate culture that supports and values engagement from others.
Leading strategically must include engaging others. This requires articulate communication of your company's mission and a corporate culture that fosters ownership with high involvement across departments, divisions and the entire organization.
COORDINATE SYSTEMS AND PROCESSES TO ENSURE CONSISTENCY
Strong commitment without good coordination and integration can lead to chaos. In order to support high involvement across your organization, you need to coordinate the systems and processes that enable people to work together in a consistent manner. Integration and coordination of effort and the core values needed for consistency across the organization.
Leading strategically for consistency requires the effective coordination of internal systems and processes. When these systems are in place, people in disparate departments, facilities and geographic locations can successfully work together to repeatedly recreate the quality products and services that make the company successful.
MANAGING INTERNAL AND EXTERNAL TENSIONS TO CREATE ADAPTABILITY
Even the best of systems can result in inflexibility. Adaptability is the result of successfully managing the internal and external tensions that naturally arise between the need for flexibility in the marketplace and consistency in the organization.
Ensuring adaptability means your organization must be proficient at knowing your customers and market, learning from experience and creating necessary change. To be adaptable, you must have the internal systems and high involvement necessary to be agile enough in the face of change to maintain your customer focus and accomplish your mission.
Leading strategically for adaptability is knowing when and how to deviate from the plan and having an organization that is stable yet flexible enough to successfully maneuver through the change and still reach the desired destination.
THE CHALLENGE ….. DOING IT ALL WELL
Given the range of focus required to lead your company strategically, the biggest challenge for most entrepreneurs is doing it all well. The entrepreneur who is great at reading the marketplace, seizing opportunities and setting good direction is naturally externally focused. They know where they want to be and are comfortable changing course in order to get there. These types of entrepreneurs are very flexible and may think that, like them, their organizations are agile.
Unfortunately, this entrepreneur is probably not as internally focused as he or she needs to be. As a result, they may lack the ability or interest to expose organizational threats and weaknesses. The externally focused leader often underestimates the impact of fostering high involvement or establishing the processes and systems that are necessary to create the stability an organization needs to achieve consistency.
Without stability and consistency a company will not be able to deliver on the opportunities created by an outward focus on the market place. Instead of leading strategically, the externally focused entrepreneur can be perceived as a "fly by the seat of your pants leader," which is definitely not the path to sustainable growth.
On the flipside, the leader who over-focuses on current reality can become too internally focused. They are usually great at fostering involvement and establishing consistent systems but they may be too rigid to be able to respond quickly enough to changes in the market.
The bottom line is that not many of us are good at everything. Be honest about your own strengths and weaknesses. Seek personal development to become better where you can and hire to compensate for areas where you can't.
The ability to lead with a balanced internal and external focus is at the heart of leading strategically. When the resulting opposing tensions are managed successfully, you encourage the adaptability that makes your organization agile. Agile companies have the ability to recognize and respond quickly to market demands without losing the consistency of quality and involvement that made them successful -- the hallmark of sustainable, successful organizations.
Many business leaders think being strategic means being the author of the company's plan for the future. No one would argue the value of a sound business plan but given what happens to the best laid plans of mice and men, experienced leaders know that planning is only the beginning.
DETERMINE WHERE YOU ARE
In reality, planning isn't even what you should do first. For any long-term plan to be successful, you must first be realistic about where you are today. This requires an honest assessment of strengths, weaknesses, threats and opportunities , a step many organizations are loathe to do. The reason usually cited : time.
Taking time before jumping in requires patience -- a competency that many quick thinking and fast moving entrepreneurs don't naturally exercise. This isn't necessarily a bad thing, since many entrepreneurs are successful because of their impatience. Their skill is in seeing opportunity and jumping quickly to take advantage of it. Not afraid of risks, they get to their desired result more quickly than their counterparts ; often a critical reason behind market dominance.
Still, leading strategically requires time for reflection and the ability to realistically asses where you are. With this information, you can most accurately define your destination and chart the course that will take you there.
DEFINE YOUR MISSION AND DIRECTION
A clear understanding of where you are must be balanced by a clear picture of where you need or want to go. Where you want to go is your company's mission. An organization's mission includes the company's vision, long-range direction and short-term goals.
An organization without a mission is like a sailboat without a rudder -- it just goes where the wind (or the marketplace) blows. To define your mission and give your company its direction, you must focus externally, which is usually easy for the risk-taking, fast moving entrepreneur.
Leading strategically includes defining your organization's mission. This requires a keen understanding of the marketplace and your reason for being in business. With a clearly defined mission, you give your organization its rudder.
ENGAGE OTHERS AND FOSTER HIGH INVOLVEMENT
While a clear vision is critical, you cannot make it happen by yourself. Once you've set the course, you must focus internally to engage others whose involvement you will need to successfully make the journey. This includes engaging employees, empowering them to do their jobs and insuring that they have the skills and resources they need.
While the tactical side of these characteristics may be delegated to HR, leadership must first realize their importance and create a corporate culture that supports and values engagement from others.
Leading strategically must include engaging others. This requires articulate communication of your company's mission and a corporate culture that fosters ownership with high involvement across departments, divisions and the entire organization.
COORDINATE SYSTEMS AND PROCESSES TO ENSURE CONSISTENCY
Strong commitment without good coordination and integration can lead to chaos. In order to support high involvement across your organization, you need to coordinate the systems and processes that enable people to work together in a consistent manner. Integration and coordination of effort and the core values needed for consistency across the organization.
Leading strategically for consistency requires the effective coordination of internal systems and processes. When these systems are in place, people in disparate departments, facilities and geographic locations can successfully work together to repeatedly recreate the quality products and services that make the company successful.
MANAGING INTERNAL AND EXTERNAL TENSIONS TO CREATE ADAPTABILITY
Even the best of systems can result in inflexibility. Adaptability is the result of successfully managing the internal and external tensions that naturally arise between the need for flexibility in the marketplace and consistency in the organization.
Ensuring adaptability means your organization must be proficient at knowing your customers and market, learning from experience and creating necessary change. To be adaptable, you must have the internal systems and high involvement necessary to be agile enough in the face of change to maintain your customer focus and accomplish your mission.
Leading strategically for adaptability is knowing when and how to deviate from the plan and having an organization that is stable yet flexible enough to successfully maneuver through the change and still reach the desired destination.
THE CHALLENGE ….. DOING IT ALL WELL
Given the range of focus required to lead your company strategically, the biggest challenge for most entrepreneurs is doing it all well. The entrepreneur who is great at reading the marketplace, seizing opportunities and setting good direction is naturally externally focused. They know where they want to be and are comfortable changing course in order to get there. These types of entrepreneurs are very flexible and may think that, like them, their organizations are agile.
Unfortunately, this entrepreneur is probably not as internally focused as he or she needs to be. As a result, they may lack the ability or interest to expose organizational threats and weaknesses. The externally focused leader often underestimates the impact of fostering high involvement or establishing the processes and systems that are necessary to create the stability an organization needs to achieve consistency.
Without stability and consistency a company will not be able to deliver on the opportunities created by an outward focus on the market place. Instead of leading strategically, the externally focused entrepreneur can be perceived as a "fly by the seat of your pants leader," which is definitely not the path to sustainable growth.
On the flipside, the leader who over-focuses on current reality can become too internally focused. They are usually great at fostering involvement and establishing consistent systems but they may be too rigid to be able to respond quickly enough to changes in the market.
The bottom line is that not many of us are good at everything. Be honest about your own strengths and weaknesses. Seek personal development to become better where you can and hire to compensate for areas where you can't.
The ability to lead with a balanced internal and external focus is at the heart of leading strategically. When the resulting opposing tensions are managed successfully, you encourage the adaptability that makes your organization agile. Agile companies have the ability to recognize and respond quickly to market demands without losing the consistency of quality and involvement that made them successful -- the hallmark of sustainable, successful organizations.
Monday, December 10, 2007
THE REALITIES OF BEING AN ENTREPRENEUR
Being an entrepreneur isn't easy.
Let me start with a few hard truths of being an entrepreneur:
IT’S STRESSFUL
If you think meeting a boss's deadlines or demands is tough, try meeting your own, especially when your personal savings are on the line. Maybe you've already taken out a second mortgage and your credit cards are maxxed out. Or maybe you've borrowed money from family and friends and you're on the hook to pay them back, ASAP. This type of pressure lights a fire under even the most laid-back personalities. Not only will you feel the pressure to get your business off the ground, but you'll also feel the added pressure to do so quickly to regain some semblance of financial security.
IT’S NEVER ENDING
Yes, it can be thankless to work for someone else, knowing your skills and talents are ultimately making someone else a bundle. But in most jobs, you can leave the work behind when you go home to enjoy your family, friends or hobbies. As an entrepreneur, the workload can be intense, especially during the early stages when you are the CEO, CFO, HR person, sales staff, marketing guru, tech guy, office manager, and janitor. With all these roles, there's rarely a moment that you feel your work is "done" for the day. There's always something more you could be doing, like researching new markets, writing press releases, contacting new media, cold calling new sales outlets, developing new products and the list goes on. And that can eat away at time formerly devoted to family, leisure activities, workouts or relaxation. It's a difficult balance to strike.
IT’S FRUSTRATING
Maybe you've partnered with someone who doesn't have your best interests at heart. Or you've received a shipment of damaged products that you need for a trade show the next day. Or the media appearance you spent days preparing for is suddenly cancelled due to a natural disaster. As an entrepreneur, these types of situations happen on a regular basis. (I speak from experience; all of the above happened to me.) The truth is that you never know what's around the corner and it can be extremely frustrating when you've planned to spend a day on product development, only to find out that you have to repair the cases of product packaging that came apart during shipping.
So with this kind of stress, pressure and workload, why, then, would anyone subject themselves to being an entrepreneur ?
The answer is simple….. the positives outweigh the negatives:
IT’S REWARDING
When you're successful, you reap both financial and emotional rewards. There's no better feeling than seeing a product you've worked hard to develop on store shelves, or when you've provided successful service for a grateful client. It's exciting to make a sale or win a new client when you know it's from your own hard work; it's gratifying when customers tell you that your product, service or example has made a difference in their lives. And of course, turning a profit and knowing your business is financially stable are extremely rewarding as well.
IT’S FLEXIBLE
Once you work for yourself, it's common to feel you could never work in a conventional 9-to-5 environment again. I believe it's mostly due to the flexibility. Yes, you may work more hours, but you can do so on your own terms. You can stop work at 3 to pick up the kids from school without asking your boss for permission. You can work from midnight to 4 a.m. if you're a night owl. You can work from home or your own office with daycare on-site. When you're the boss, you call the shots, and the new freedom can be exhilarating.
IT’S THE CHANCE TO CREATE
Many entrepreneurs are driven by the need to build something great, help other people, or leave something behind. Perhaps it's a business that your children can join and grow; maybe it's the legacy of creating something that will be around long after you're gone. No matter what the motivation, creating something from nothing that grows and develops through the years can be almost like raising a child; it's your baby, and you've nurtured it to its current level of success. That type of fulfillment is difficult to duplicate in most other career paths.
Let me start with a few hard truths of being an entrepreneur:
IT’S STRESSFUL
If you think meeting a boss's deadlines or demands is tough, try meeting your own, especially when your personal savings are on the line. Maybe you've already taken out a second mortgage and your credit cards are maxxed out. Or maybe you've borrowed money from family and friends and you're on the hook to pay them back, ASAP. This type of pressure lights a fire under even the most laid-back personalities. Not only will you feel the pressure to get your business off the ground, but you'll also feel the added pressure to do so quickly to regain some semblance of financial security.
IT’S NEVER ENDING
Yes, it can be thankless to work for someone else, knowing your skills and talents are ultimately making someone else a bundle. But in most jobs, you can leave the work behind when you go home to enjoy your family, friends or hobbies. As an entrepreneur, the workload can be intense, especially during the early stages when you are the CEO, CFO, HR person, sales staff, marketing guru, tech guy, office manager, and janitor. With all these roles, there's rarely a moment that you feel your work is "done" for the day. There's always something more you could be doing, like researching new markets, writing press releases, contacting new media, cold calling new sales outlets, developing new products and the list goes on. And that can eat away at time formerly devoted to family, leisure activities, workouts or relaxation. It's a difficult balance to strike.
IT’S FRUSTRATING
Maybe you've partnered with someone who doesn't have your best interests at heart. Or you've received a shipment of damaged products that you need for a trade show the next day. Or the media appearance you spent days preparing for is suddenly cancelled due to a natural disaster. As an entrepreneur, these types of situations happen on a regular basis. (I speak from experience; all of the above happened to me.) The truth is that you never know what's around the corner and it can be extremely frustrating when you've planned to spend a day on product development, only to find out that you have to repair the cases of product packaging that came apart during shipping.
So with this kind of stress, pressure and workload, why, then, would anyone subject themselves to being an entrepreneur ?
The answer is simple….. the positives outweigh the negatives:
IT’S REWARDING
When you're successful, you reap both financial and emotional rewards. There's no better feeling than seeing a product you've worked hard to develop on store shelves, or when you've provided successful service for a grateful client. It's exciting to make a sale or win a new client when you know it's from your own hard work; it's gratifying when customers tell you that your product, service or example has made a difference in their lives. And of course, turning a profit and knowing your business is financially stable are extremely rewarding as well.
IT’S FLEXIBLE
Once you work for yourself, it's common to feel you could never work in a conventional 9-to-5 environment again. I believe it's mostly due to the flexibility. Yes, you may work more hours, but you can do so on your own terms. You can stop work at 3 to pick up the kids from school without asking your boss for permission. You can work from midnight to 4 a.m. if you're a night owl. You can work from home or your own office with daycare on-site. When you're the boss, you call the shots, and the new freedom can be exhilarating.
IT’S THE CHANCE TO CREATE
Many entrepreneurs are driven by the need to build something great, help other people, or leave something behind. Perhaps it's a business that your children can join and grow; maybe it's the legacy of creating something that will be around long after you're gone. No matter what the motivation, creating something from nothing that grows and develops through the years can be almost like raising a child; it's your baby, and you've nurtured it to its current level of success. That type of fulfillment is difficult to duplicate in most other career paths.
Sunday, December 9, 2007
NETWORKING THROUGH THE HOLIDAYS
Use your holiday merry making as an opportunity to connect with people that can help make you a success.
These networking strategies should help get you started.
Bring back the pre-party
Whatever inspiration you want to draw from your crazier college days is up to you, but the idea here is that if someone else is throwing a great party next Saturday, use the evening's festive mood to your advantage! Call five people you know are going to the party and either invite them to meet at your place to go over together or have them meet you for a drink on the way over. Choose your mates wisely, and use this pre-party get-together to ensure you connect with some of your top targets for the night instead of running the risk of not getting to them at the crowded main event.
Hire a ride, or provide the ride
If you're going to drink at a holiday party, it goes without saying that you should call a cab to play it safe. But don't be afraid to supe-up the style. Hiring a chauffer will add a touch of class to the event, enable you to take a larger group of friends for eve-ending drop-offs, and is surprisingly affordable. Or, consider ditching the drinks and being a designated driver. You'll be offering a hugely valuable service, a currency that could definitely get you invited to a lot of parties!
In the season of giving
And what if you don't receive an invitation to that platinum-level party you've had your eye on? This is the time of year when everyone feels their warmest and fuzziest inside, so don't be afraid to call someone who's close to the host and say, "Hey, I'd love to go to that party. Can you get me in?" Sometimes audacity is the only way to get the audience you want.
Sing
Call me old-fashioned, but I think a willingness to sing can be everyone's secret weapon during the holiday season. Show some holiday spirit and belt out the tunes! Don't worry about your voice too much. Instead, focus on how approachable you'll seem to everyone who sees you having a good time. Final Note: If you are the host (or at least have the host's ear), be sure to invite or hire a good pianist! The live ivory works best for group singalongs.
Activate your family connections
You're bound to see a lot of your family in the coming month, so it's no time to take for granted the people who like you, care about you, and will go to great lengths to help you succeed. First, make sure you're prepared to help them help you. Before you see them, schedule some time to reflect upon the one passion that deeply fuels you (your Blue Flame, I like to call it), your goals for the next 90 days, and the kind of people you need to connect with to be successful. Then put your desires out there to your family. After all your efforts to build relationships in the business sphere, you might be shocked by what turns up in your own backyard. Who knows whom your brother-in-law knows until you give him a chance to activate his network for you.
If this season's not in the cards, choose another
With all the parties to attend, end-of-year deadlines to meet, and the rush to gather gifts for everyone on their lists, people absolutely get lost in the clutter of the holiday season. It's no surprise that holiday cards get lost, too, if only in the piles of red and green envelopes everyone receives this time of year. That's why years ago I chose to stop sending out holiday cards, for these holidays at least. I've made it a habit to get in touch with people on their birthdays or anniversaries because people are much more impressed by what others do for them on their very own "special days." However, it's quite a lot of work to do this year-round. So I'll propose an alternative: Skip the cards this holiday season and pick another holiday in the upcoming year for sending celebratory mail. I have friends who send me an annual Halloween card, and since it's an uncommon practice, the gesture really stands out. Thanksgiving's probably not a bad choice, either, just to reach out and say how thankful you are for them and your relationship. There are many more fine days to reach out to your friends, though. Pick the one that works for you.
In your office, give what's really important
This year, try handwriting simple, heartfelt notes to your employees or colleagues as thanks for contributing to the success of your organization or as compliments on the special talents they possess. Your sincere thoughts will be more important and valuable to them, and more cost-effective for you, than standard gifts of 20 bucks each.
These networking strategies should help get you started.
Bring back the pre-party
Whatever inspiration you want to draw from your crazier college days is up to you, but the idea here is that if someone else is throwing a great party next Saturday, use the evening's festive mood to your advantage! Call five people you know are going to the party and either invite them to meet at your place to go over together or have them meet you for a drink on the way over. Choose your mates wisely, and use this pre-party get-together to ensure you connect with some of your top targets for the night instead of running the risk of not getting to them at the crowded main event.
Hire a ride, or provide the ride
If you're going to drink at a holiday party, it goes without saying that you should call a cab to play it safe. But don't be afraid to supe-up the style. Hiring a chauffer will add a touch of class to the event, enable you to take a larger group of friends for eve-ending drop-offs, and is surprisingly affordable. Or, consider ditching the drinks and being a designated driver. You'll be offering a hugely valuable service, a currency that could definitely get you invited to a lot of parties!
In the season of giving
And what if you don't receive an invitation to that platinum-level party you've had your eye on? This is the time of year when everyone feels their warmest and fuzziest inside, so don't be afraid to call someone who's close to the host and say, "Hey, I'd love to go to that party. Can you get me in?" Sometimes audacity is the only way to get the audience you want.
Sing
Call me old-fashioned, but I think a willingness to sing can be everyone's secret weapon during the holiday season. Show some holiday spirit and belt out the tunes! Don't worry about your voice too much. Instead, focus on how approachable you'll seem to everyone who sees you having a good time. Final Note: If you are the host (or at least have the host's ear), be sure to invite or hire a good pianist! The live ivory works best for group singalongs.
Activate your family connections
You're bound to see a lot of your family in the coming month, so it's no time to take for granted the people who like you, care about you, and will go to great lengths to help you succeed. First, make sure you're prepared to help them help you. Before you see them, schedule some time to reflect upon the one passion that deeply fuels you (your Blue Flame, I like to call it), your goals for the next 90 days, and the kind of people you need to connect with to be successful. Then put your desires out there to your family. After all your efforts to build relationships in the business sphere, you might be shocked by what turns up in your own backyard. Who knows whom your brother-in-law knows until you give him a chance to activate his network for you.
If this season's not in the cards, choose another
With all the parties to attend, end-of-year deadlines to meet, and the rush to gather gifts for everyone on their lists, people absolutely get lost in the clutter of the holiday season. It's no surprise that holiday cards get lost, too, if only in the piles of red and green envelopes everyone receives this time of year. That's why years ago I chose to stop sending out holiday cards, for these holidays at least. I've made it a habit to get in touch with people on their birthdays or anniversaries because people are much more impressed by what others do for them on their very own "special days." However, it's quite a lot of work to do this year-round. So I'll propose an alternative: Skip the cards this holiday season and pick another holiday in the upcoming year for sending celebratory mail. I have friends who send me an annual Halloween card, and since it's an uncommon practice, the gesture really stands out. Thanksgiving's probably not a bad choice, either, just to reach out and say how thankful you are for them and your relationship. There are many more fine days to reach out to your friends, though. Pick the one that works for you.
In your office, give what's really important
This year, try handwriting simple, heartfelt notes to your employees or colleagues as thanks for contributing to the success of your organization or as compliments on the special talents they possess. Your sincere thoughts will be more important and valuable to them, and more cost-effective for you, than standard gifts of 20 bucks each.
Saturday, December 8, 2007
EXPANDING YOUR BUSINESS
To grow or to steal ?
That's one of the fundamental questions that marketers ask themselves when they look at how best to expand their businesses.
Do I grow a market, and generate more sales and revenue through that strategy , even though my share-of-market may remain the same or actually go down ? Or do I focus my efforts on stealing share from my competitors ?
While there is no single answer, here are some different scenarios and questions to ask yourself , that should help you arrive at the right strategy for your particular situation.
How mature is your market ?
If you're competing in a mature category , one with a high level of penetration and with single-digit growth, then it doesn't make much sense for you to invest in expanding a category that has little runway ahead of it. For example, if you are a tire retailer, you're facing a situation where the number of tires-per-auto puts a natural cap on the category. You're not going to convince people to buy a fifth, so chances are you'll have to grow by taking business from the guy around the corner. (In the fashion business, there are no such limits.)
On the other hand, you might be able to get people to replace their tires faster. So if your tire dealership introduced a check-your-tread promotion during the time of year when college kids are ready to drive up to school and played on parental anxiety about their sons and daughters taking to the road with dangerous tires , you might be able to accelerate purchase, which is back-door way to grow the category.
If you're in a business with low penetration, you might be able to expand the category, but only if you understand the barriers to growth. As an example, let's take the lawn service business. Since under 50% of homeowners pay someone to cut their grass each month, it seems like category expansion is possible. Cost is obviously an obstacle. You could cut your price, but it is always best to look for a marketing solution that doesn't reduce your margin. A better approach would be to learn from the utility companies and their "balanced billing" approach. In other words, help consumers overcome the highly seasonal cost of lawn care by spreading payments over the year. $100/year for six months is more painful than $50/month all year long.
Another approach to category expansion is to target those most likely to take the plunge, who are at the cusp of conversion (In other words, segment your prospects). In this case, the most promising group would be the baby boomers in your neighborhood, who have the discretionary income and whose creaky knees and backs might finally convince them to hire someone else to do the work. Buy a mailing list of boomers, and develop a direct mail piece that targets their needs (without being too heavy-handed about it).
Are you in a position to expand the share ?
Marketers call this "missionary work," and not every company in a category is equally well-positioned to embark upon it. You need the resources to invest in growing the category, and enough of a time-horizon to enable your business to reap the rewards down the road. Keep in mind that any strong competitor could be in a position to benefit from your spadework, so this strategy needs thorough consideration and scenario-building. But if you have a unique product or service that offers a new benefit with category-expansion possibilities, and if you have the ability to maintain this proprietary advantage for a while, this approach can make sound business sense.
What kind of product or service innovations are you contemplating ?
Picking up on the last point, what is currently a "mature" category actually might be a category on the brink of a steep growth curve, driven by new products or services you have in development. If you're in a sleepy category with drowsy competitors, suddenly invigorating an industry with some real innovation is a way to win the Double Double: expand the category and drive market share simultaneously.
How weak are your competitors ?
Even if there is category growth possible, often it makes sense to seize the shorter-term opportunity of capitalizing on a competitor's weakness by grabbing share from them. Weaknesses can come from any number of directions such as management exodus; financial problems; distractions in specific business areas, from sourcing to pricing. Which means that a strategy focused on expanding the category needs to have the flexibility to change, should a competitor suddenly become weakened in a significant way -- predatory as it may sound.
It also means that you need to be constantly monitoring competitive activity. Many entrepreneurs are overly-focused on their own businesses, and display an astounding lack of interest in what the competitors are up to.
What's the "X" factor ?
A host of external, surprise factors can change the dynamics of the grow/steal calculus. A new competitor, either domestic or international, can open up a market. So can regulatory changes; for example, a client of mine once benefited from a law that mandated certain child-proof packaging that his competitors weren't able to adopt quickly. Changes in raw-material pricing -- either technology or access-driven -- can drive down costs and open market-expansion possibilities.
The bottom line is that you need to be constantly assessing your grow/steal strategy as a central component of your marketing framework. If not, somebody might be growing and stealing at your expense.
That's one of the fundamental questions that marketers ask themselves when they look at how best to expand their businesses.
Do I grow a market, and generate more sales and revenue through that strategy , even though my share-of-market may remain the same or actually go down ? Or do I focus my efforts on stealing share from my competitors ?
While there is no single answer, here are some different scenarios and questions to ask yourself , that should help you arrive at the right strategy for your particular situation.
How mature is your market ?
If you're competing in a mature category , one with a high level of penetration and with single-digit growth, then it doesn't make much sense for you to invest in expanding a category that has little runway ahead of it. For example, if you are a tire retailer, you're facing a situation where the number of tires-per-auto puts a natural cap on the category. You're not going to convince people to buy a fifth, so chances are you'll have to grow by taking business from the guy around the corner. (In the fashion business, there are no such limits.)
On the other hand, you might be able to get people to replace their tires faster. So if your tire dealership introduced a check-your-tread promotion during the time of year when college kids are ready to drive up to school and played on parental anxiety about their sons and daughters taking to the road with dangerous tires , you might be able to accelerate purchase, which is back-door way to grow the category.
If you're in a business with low penetration, you might be able to expand the category, but only if you understand the barriers to growth. As an example, let's take the lawn service business. Since under 50% of homeowners pay someone to cut their grass each month, it seems like category expansion is possible. Cost is obviously an obstacle. You could cut your price, but it is always best to look for a marketing solution that doesn't reduce your margin. A better approach would be to learn from the utility companies and their "balanced billing" approach. In other words, help consumers overcome the highly seasonal cost of lawn care by spreading payments over the year. $100/year for six months is more painful than $50/month all year long.
Another approach to category expansion is to target those most likely to take the plunge, who are at the cusp of conversion (In other words, segment your prospects). In this case, the most promising group would be the baby boomers in your neighborhood, who have the discretionary income and whose creaky knees and backs might finally convince them to hire someone else to do the work. Buy a mailing list of boomers, and develop a direct mail piece that targets their needs (without being too heavy-handed about it).
Are you in a position to expand the share ?
Marketers call this "missionary work," and not every company in a category is equally well-positioned to embark upon it. You need the resources to invest in growing the category, and enough of a time-horizon to enable your business to reap the rewards down the road. Keep in mind that any strong competitor could be in a position to benefit from your spadework, so this strategy needs thorough consideration and scenario-building. But if you have a unique product or service that offers a new benefit with category-expansion possibilities, and if you have the ability to maintain this proprietary advantage for a while, this approach can make sound business sense.
What kind of product or service innovations are you contemplating ?
Picking up on the last point, what is currently a "mature" category actually might be a category on the brink of a steep growth curve, driven by new products or services you have in development. If you're in a sleepy category with drowsy competitors, suddenly invigorating an industry with some real innovation is a way to win the Double Double: expand the category and drive market share simultaneously.
How weak are your competitors ?
Even if there is category growth possible, often it makes sense to seize the shorter-term opportunity of capitalizing on a competitor's weakness by grabbing share from them. Weaknesses can come from any number of directions such as management exodus; financial problems; distractions in specific business areas, from sourcing to pricing. Which means that a strategy focused on expanding the category needs to have the flexibility to change, should a competitor suddenly become weakened in a significant way -- predatory as it may sound.
It also means that you need to be constantly monitoring competitive activity. Many entrepreneurs are overly-focused on their own businesses, and display an astounding lack of interest in what the competitors are up to.
What's the "X" factor ?
A host of external, surprise factors can change the dynamics of the grow/steal calculus. A new competitor, either domestic or international, can open up a market. So can regulatory changes; for example, a client of mine once benefited from a law that mandated certain child-proof packaging that his competitors weren't able to adopt quickly. Changes in raw-material pricing -- either technology or access-driven -- can drive down costs and open market-expansion possibilities.
The bottom line is that you need to be constantly assessing your grow/steal strategy as a central component of your marketing framework. If not, somebody might be growing and stealing at your expense.
Monday, December 3, 2007
SIX SIXMA FOR SMALL BUSINESS
In any business, there are crucial decisions to be made about pricing, product, sales, accounting, marketing and hiring.
Larger organizations rely on teams of employees and consultants who pool experience, knowledge and resources to make the business decisions that impact the company's operation and growth.
Small business owners rarely have that luxury. Entrepreneurs are typically the sole decision-makers, wearing many hats and solving problems through trial and error. Their personal investment in the business makes it challenging to base decisions exclusively on facts and data, rather than emotion.
Taking a page from the corporate playbook, however, small business owners can use a proven, problem-solving methodology that results in greater efficiency and profitably.
Six Sigma for Small Business can reduce mistakes and waste, uncover hidden costs, streamline processes, improve overall quality of products and services, and increase customer satisfaction.
Why You Should Care About Six Sigma
Small business owners often discount Six Sigma because they think it isn't applicable to their business. In reality, the methodology can be applied to nearly any chronic problem or "defect."
One example: The owner of a seafood restaurant often advertises an all-you-can-eat special on crab legs. Half the time, however, he runs out of crab legs before the end of the evening. That same owner regularly throws out pounds of spoiled food. Both incidents represent defects that can be eliminated or significantly reduced using Six Sigma to define and measure the problem. The solution is buried in the receipts and sales data over time. We know how many people are coming to eat, we know how much inventory is consumed, but the owner does not numerically associate the inventory input to the output over time.
The list of potential problems is endless and different for each business. What all have in common, however, is the negative impact on a company's bottom line. Every mistake or problem results in waste, a loss in terms of time, customer satisfaction or money and, ultimately, profit. Time is perhaps a small business owner's most precious commodity. Exerting time and energy to address recurring problems is inefficient and compromises profit. Likewise, unhappy customers can cripple or close a business, since small businesses typically lack the variety, resources or volume to overcome a dearth in customer satisfaction.
Six Sigma shows small business owners how to ask the right questions and uncover and eliminate waste and defects that may be erroneously accepted as part of the processes and considered a normal "cost of doing business."
Implementing Six Sigma
The heart of the Six Sigma methodology is DMAIC: define, measure, analyze, improve and control. The best project is the one that will provide the maximum payback. To find it, business owners must consider the probability of success and the effort required in terms of resources and time in relation to the return on investment. A good rule of thumb is to select a project with a low ratio of effort to impact.
Let's use our seafood restaurant and its spoiled food as an example. (Running out of crab legs during the all-you-can-eat buffet is a different problem, also solvable using Six Sigma.)
Define: During the past six months, the cost of spoiled food was $38,375.67, an average of more than $6,000 per month. The objective of this Six Sigma project is to reduce this "defect" by 50 percent, achieving a cost savings of $3,500 per month.
Measure: Using receipts, stock levels and purchasing records, we ensure that these records accurately represent the continuous level of waste. We perform a "measure system analysis," which compares what was ordered by the owner to what was purchased by the customer, and repeat this comparison for the past two months. You may find that some records were recorded in error, but now we have a measurement system that is repeatable. We have our problem definition, the defect being the cost of food not consumed by the customer that spoiled per week; and we have our business metric: wasted money on inventory.
Analyze: We define a metric by analyzing the data, from which it can be determined that 75 percent of the wasted dollars is coming from two sources: beef and high-end fish products. We further determine that of that 75 percent, the fish products accounted for 80 percent of the problem. We verify that the source of information is repeatable for the past eight weeks, and the receipts confirm that is, in fact, the case.
During the analysis phase, additional defects may be uncovered, such as order delivery times being longer than they should or a short supply of crab legs, thus accounting for the shortage of crab legs during the all-you-can-eat specials.
Improve: We have determined that for three foods--beef, high-end fish and crab legs--the amount ordered doesn't match the consumption rate. Therefore, an 80 percent reduction in the ordering of the slow-consumption foods--the beef and the fish--will yield a savings of $3,800 per month. Increasing the amount of crab legs ordered lowers opportunity costs by having a supply of crab legs that meets demand during all-you-can-eat specials.
Control: To prevent recurrence of defects, we track our shortages and overages and place "threshold spending amounts"--maximum amounts spent based on inventory--on each major food category. A graph of the previous day's orders and shortages or overages is created daily, with results reviewed weekly. Based on end consumption rates, an action plan is put into place, including such components as a more accurate buying guide and menu adjustments. The "test" of the action plan are the customers voting with their wallets.
Key to consistent growth and success for any business is the ability to monitor changes, spot problems and opportunities first, then act accordingly. It's tempting to react impulsively or emotionally when faced with a business decision. However, maintaining long-term, reliable growth requires well-developed methods of tracking business goals related to factual income, expenses, growth and quality.
Just as entrepreneurs don't stop tending to their businesses once they are established, neither does Six Sigma stop with the completion of a project. It is vital that small business owners maintain momentum by picking new projects, creating new deployment teams, committing additional and new resources, and continually improving businesses.
Larger organizations rely on teams of employees and consultants who pool experience, knowledge and resources to make the business decisions that impact the company's operation and growth.
Small business owners rarely have that luxury. Entrepreneurs are typically the sole decision-makers, wearing many hats and solving problems through trial and error. Their personal investment in the business makes it challenging to base decisions exclusively on facts and data, rather than emotion.
Taking a page from the corporate playbook, however, small business owners can use a proven, problem-solving methodology that results in greater efficiency and profitably.
Six Sigma for Small Business can reduce mistakes and waste, uncover hidden costs, streamline processes, improve overall quality of products and services, and increase customer satisfaction.
Why You Should Care About Six Sigma
Small business owners often discount Six Sigma because they think it isn't applicable to their business. In reality, the methodology can be applied to nearly any chronic problem or "defect."
One example: The owner of a seafood restaurant often advertises an all-you-can-eat special on crab legs. Half the time, however, he runs out of crab legs before the end of the evening. That same owner regularly throws out pounds of spoiled food. Both incidents represent defects that can be eliminated or significantly reduced using Six Sigma to define and measure the problem. The solution is buried in the receipts and sales data over time. We know how many people are coming to eat, we know how much inventory is consumed, but the owner does not numerically associate the inventory input to the output over time.
The list of potential problems is endless and different for each business. What all have in common, however, is the negative impact on a company's bottom line. Every mistake or problem results in waste, a loss in terms of time, customer satisfaction or money and, ultimately, profit. Time is perhaps a small business owner's most precious commodity. Exerting time and energy to address recurring problems is inefficient and compromises profit. Likewise, unhappy customers can cripple or close a business, since small businesses typically lack the variety, resources or volume to overcome a dearth in customer satisfaction.
Six Sigma shows small business owners how to ask the right questions and uncover and eliminate waste and defects that may be erroneously accepted as part of the processes and considered a normal "cost of doing business."
Implementing Six Sigma
The heart of the Six Sigma methodology is DMAIC: define, measure, analyze, improve and control. The best project is the one that will provide the maximum payback. To find it, business owners must consider the probability of success and the effort required in terms of resources and time in relation to the return on investment. A good rule of thumb is to select a project with a low ratio of effort to impact.
Let's use our seafood restaurant and its spoiled food as an example. (Running out of crab legs during the all-you-can-eat buffet is a different problem, also solvable using Six Sigma.)
Define: During the past six months, the cost of spoiled food was $38,375.67, an average of more than $6,000 per month. The objective of this Six Sigma project is to reduce this "defect" by 50 percent, achieving a cost savings of $3,500 per month.
Measure: Using receipts, stock levels and purchasing records, we ensure that these records accurately represent the continuous level of waste. We perform a "measure system analysis," which compares what was ordered by the owner to what was purchased by the customer, and repeat this comparison for the past two months. You may find that some records were recorded in error, but now we have a measurement system that is repeatable. We have our problem definition, the defect being the cost of food not consumed by the customer that spoiled per week; and we have our business metric: wasted money on inventory.
Analyze: We define a metric by analyzing the data, from which it can be determined that 75 percent of the wasted dollars is coming from two sources: beef and high-end fish products. We further determine that of that 75 percent, the fish products accounted for 80 percent of the problem. We verify that the source of information is repeatable for the past eight weeks, and the receipts confirm that is, in fact, the case.
During the analysis phase, additional defects may be uncovered, such as order delivery times being longer than they should or a short supply of crab legs, thus accounting for the shortage of crab legs during the all-you-can-eat specials.
Improve: We have determined that for three foods--beef, high-end fish and crab legs--the amount ordered doesn't match the consumption rate. Therefore, an 80 percent reduction in the ordering of the slow-consumption foods--the beef and the fish--will yield a savings of $3,800 per month. Increasing the amount of crab legs ordered lowers opportunity costs by having a supply of crab legs that meets demand during all-you-can-eat specials.
Control: To prevent recurrence of defects, we track our shortages and overages and place "threshold spending amounts"--maximum amounts spent based on inventory--on each major food category. A graph of the previous day's orders and shortages or overages is created daily, with results reviewed weekly. Based on end consumption rates, an action plan is put into place, including such components as a more accurate buying guide and menu adjustments. The "test" of the action plan are the customers voting with their wallets.
Key to consistent growth and success for any business is the ability to monitor changes, spot problems and opportunities first, then act accordingly. It's tempting to react impulsively or emotionally when faced with a business decision. However, maintaining long-term, reliable growth requires well-developed methods of tracking business goals related to factual income, expenses, growth and quality.
Just as entrepreneurs don't stop tending to their businesses once they are established, neither does Six Sigma stop with the completion of a project. It is vital that small business owners maintain momentum by picking new projects, creating new deployment teams, committing additional and new resources, and continually improving businesses.
Saturday, December 1, 2007
NETWORKING TIPS
Stressed out because you can't find time to network?
Don't worry. Let the networking time come to you.
Now that we're past the seasonal rush that seems to make our schedules so crazy from late November to New Year's Day, we should have plenty of time to act on our resolutions to "develop more meaningful relationships" in the new year, right? In our dreams. We're still as busy as ever.
So how can we build more relationships, when we already have so many things competing for our time? We're constantly on the go just to keep up with work, family, friends, and perhaps children. Not to mention all the things that just keep coming up such as taking the car to the mechanic, going to the dentist, or spending an afternoon at the social meeting.
If you're stressed-out because you can't fit in any time for "networking," my advice to you is ….. Don't. That's right. Don't even try to squeeze in extra time. Instead, focus on meeting people more often during the things you already have to do. This way, you can relax and let that "networking time" come to you.
Before each of your daily activities, just ask yourself, "Could this be an opportunity to meet someone new?" That's what my friend did when he used to work out at the Harvard Business School gym. And he got more clients for his coaching practice there than from anywhere else.
Also, don't forget those interruptions I mentioned earlier , such as taking the car to the mechanic, going to the dentist, or spending an afternoon at the social meeting. No matter how miserable those experiences have been for you in the past, they can be great places to make new connections. In the waiting rooms, people are sitting right next to you! You have a built-in conversation starter because you have something obvious in common with everyone there. Okay, so what if you end up talking to a couple of soccer moms or others who might not be on your target contact list? Nothing lost. They might know people who are on your list. Worst case, you struck up a nice conversation that made sitting there a bit less painful, and you practiced your all-important audacity skills that you can use next time at a business conference.
The greatest thing about this little networking plan is that it requires no (extra) time at all. It does, however, require a little bit of guts. And the more guts you have, the more you'll meet success.
Try it and it will pay off!
Don't worry. Let the networking time come to you.
Now that we're past the seasonal rush that seems to make our schedules so crazy from late November to New Year's Day, we should have plenty of time to act on our resolutions to "develop more meaningful relationships" in the new year, right? In our dreams. We're still as busy as ever.
So how can we build more relationships, when we already have so many things competing for our time? We're constantly on the go just to keep up with work, family, friends, and perhaps children. Not to mention all the things that just keep coming up such as taking the car to the mechanic, going to the dentist, or spending an afternoon at the social meeting.
If you're stressed-out because you can't fit in any time for "networking," my advice to you is ….. Don't. That's right. Don't even try to squeeze in extra time. Instead, focus on meeting people more often during the things you already have to do. This way, you can relax and let that "networking time" come to you.
Before each of your daily activities, just ask yourself, "Could this be an opportunity to meet someone new?" That's what my friend did when he used to work out at the Harvard Business School gym. And he got more clients for his coaching practice there than from anywhere else.
Also, don't forget those interruptions I mentioned earlier , such as taking the car to the mechanic, going to the dentist, or spending an afternoon at the social meeting. No matter how miserable those experiences have been for you in the past, they can be great places to make new connections. In the waiting rooms, people are sitting right next to you! You have a built-in conversation starter because you have something obvious in common with everyone there. Okay, so what if you end up talking to a couple of soccer moms or others who might not be on your target contact list? Nothing lost. They might know people who are on your list. Worst case, you struck up a nice conversation that made sitting there a bit less painful, and you practiced your all-important audacity skills that you can use next time at a business conference.
The greatest thing about this little networking plan is that it requires no (extra) time at all. It does, however, require a little bit of guts. And the more guts you have, the more you'll meet success.
Try it and it will pay off!
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