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Employee Training Improvement Leadership Management Small Business Strategic Notepad strategic planning

Is your New Year planning done?

New Year planning for your business is often a mechanical process involving adding x% to various budgets and reducing others or leaving them the same. While financial planning is important, be sure to invest some time at a deeper level so that next year isn’t simply a repeat of this year with a different calendar.

Even if this year has been your best year to date, there’s always room for improvement. In fact, the year after your best year often requires even more focused effort to maintain your current pace. On the other hand, if this year wasn’t so great or was “simply OK”, then these discussions will be in context to turn things around.

Here are some questions to consider for your New Year planning…

Strength Training and Leverage

Who isn’t getting the training they need? What parts of the company would likely produce improved performance after receiving additional training to leverage their strengths? What sort of training is required? For whom? This review should involve everyone in every department, from the owner to the newest employee.

While training can go a long way toward dealing with strengths that need reinforcement, the real solution is often found by delegating certain work to other people. Fighting someone’s weaknesses is usually a waste of time, talent and money. Can they be overcome? Perhaps. Is it worth it? It depends on experience and whether or not the questioned work is the person’s real gift.

You might be tempted to think “They run the cash register. How is that a gift?

The register isn’t the point. The people at your register, at your receptionist desk, on your support lines, taking inbound calls… they’re the people who make the first impression at your company. They’re great at public facing work, or they aren’t. Some will grow into it. Some never will, but may excel at other things. In the meantime, every new prospect and client interacts with these folks. Wouldn’t you prefer they interacted with someone who rocks that register, receptionist desk, or inbound call?

Ever had a great experience at a hardware store cash register? Ever had a bad one? Ever called in or met a receptionist who was a company’s best asset or worst first impression? How are these things going at your place?

Assess Leadership

Over the last year, you can probably name the high and low points from a leadership perspective. This includes owners, managers and team members. Last week I talked about the comfort you feel when you know someone has your back. A good bit of this is driven by leadership and example setting.

For every leader on your team, consider what would help them grow as a leader in the coming year. What can you do to help? What about everyone else? Have you and your managers taken the time to identify staffers who show potential as leaders? What process will be used to do that?

If you’re a team member and you want to lead, two things: Continue leading by example and be sure to let your manager know that you want help becoming a better leader. Assuming they can read your mind isn’t a great plan for your future.

Communication

As with leadership, you can probably identify the highs and lows communications-wise over the last year, both with your clientele and your team. What’s your plan to learn from them, train based on what you learned, reproduce the wins and address the less than ideal?

Is there anyone on your team who needs communications training? Do you cringe when you read emails from some people? Does anyone on your team struggle to get their point across verbally? What can you do as an owner to help them?

If you’re the one having difficulty communicating, who can you ask for help / suggestions? Again, don’t assume anyone will come to your rescue. Take initiative. The ability to communicate effectively is a big differentiator for you and your company.

New Year planning and individual goals

All of the things we’ve discussed above relate to individual goals. Either you want to improve or you want your direct reports to improve, or both. What have you done to communicate the company’s goals for the coming year? What about your departments? What about your personal ones?

It’s time to have these conversations.

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Business Resources Buy Local Employees Improvement Management Small Business Strategic Notepad strategic planning

Strategic notepad: Small Business Saturday

The Black Friday, Small Business Saturday and Cyber Monday rushes are over. If things are going as planned, your sales are on target with no signs of missing your revenue budget for the holiday season. Unless things are going poorly, you might not have started thinking about what you’ll do differently next year – yet now is the perfect time to plant the seeds for those changes.

Why am I asking this moments after the Black Friday / Small Business Saturday / Cyber Monday trifecta? Because the wounds from the sting of procrastination, “didn’t have time to get it all done”, and “shoulda / woulda / coulda” you suffered through the last few days are still sensitive. While the tenderness remains, and the rushes are behind you, it’s time to take a brief moment to reflect on what you learned the last few days, and continue to make note of what you notice over the next few weeks. How long is brief? Long enough to make a note. This doesn’t need to be an afternoon of deep thought.

In the heat of these rushes, did you notice things you’d forgotten to do, prepare for or setup prior to Thanksgiving? Did you notice things that weren’t organized or communicated as well as you would have liked? Did you notice things that could be improved? Write it down.

Simple examples: Did your business run out of coffee, shopping bags, change, receipt paper or rewards plan signup materials? Were all of your shifts covered with enough people, but not too many? Did you have enough inventory on special items? Were shelves restocked/pulled enough? Did a certain group of customers not show up? Did you have the new client traffic you expected? Write it down.

Planning and backdating for Small Business Saturday

You probably have a list that helps you keep things sane for November / December, and that list probably includes tasks that have to be performed months earlier. Are these items already on your calendar with perpetual reminders? Are they backdated to build in sufficient time for completion? Are their prerequisite tasks given sufficient lead time to avoid cascading deadline failure?

For example, to get a mailing / email / Facebook promo (better yet, all three) out prior to Thanksgiving weekend, your marketing calendar needs tasks for promotion planning, email sequence planning, ad / email copywriting, artwork creation, printing, etc. You can’t wait till November 1st to start. If it didn’t happen this year, build it into next year’s calendar so it DOES happen. Write it down.

Write it down now, consider and plan later

While the memory of your “How did we miss / forget that?” moments are fresh, take a moment to make some notes so that when you have some solitude / planning time, you don’t forget the little things you noticed as the rushes occurred. Put a pad next to each register, next to the phone, next to the coffee pot, next to the back door, next to where you keep today’s mail.

Notepads in all of these places allow you and your team to jot down something in the heat of the moment while “that thing” is fresh in your mind. Take a moment at the end of the day to consolidate (and date) the notes for the day. If there’s anything you can take immediate action on, get that done ASAP and review the rest later.

It’s critical that you go back over what went well and can be improved, as well as what didn’t go so well. Don’t wait until you finally relax for a few minutes after January’s inventory and try to remember the little things that happened weeks earlier. You won’t remember them and that will likely mean you’ll encounter them again next year. Keep these notes and your calendar for 2016 updated with the things you notice every day for the next 5-6 weeks.

Include your staff in Small Business Saturday planning

Encourage and remind your staff to write these notes and initial them so they can provide more details when time permits. They probably see different things than you do, and often from a different perspective. Their feedback will likely have a more direct impact on your clients’ experience as well as the ability of your staff to deliver to the best of their ability.

Take advantage of the lessons, gotchas, highs and lows. Write them down.

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Automation E-myth Improvement Management Productivity Small Business strategic planning systems

How fast can your business go?

Is your business ready to face a no-huddle offense?

In case you aren’t a football fan, here’s a quick summary of differences between “regular” and “no-huddle” offenses:

  • A regular offense has 25-30 seconds (depending on the league) to “read” signals (instructions) from coaches on the sideline, swap players in and out from the bench (if desired), huddle (have a brief meeting) and start the next play. In the huddle, the quarterback tells everyone what the play is, communicates the information necessary to run the play, and makes sure everyone knows what signal they’ll use to trigger the hiking of the ball to start the play. The read, swap, huddle process starts as players walk and/or jog back to their teammates at the end of the previous play.
  • A no-huddle offense handles the read signals, swap players and huddle steps as they run back to the line to setup for the next play. As soon as they are set, the ball is usually hiked to start the play. Instead of 25-30 seconds between plays, you might see 8 to 12 seconds (on average) on a well run no-huddle offense.

The big difference between these two setups is that the defense also has the same time to read, meet, swap and setup for the next offensive play – with the regular offense. With the no-huddle offense, the defense has to react much more quickly. While the offense has to move fast to keep the defense “unprepared”, they at least know what’s going to happen next – even if the quarterback makes last minute changes (audibles) before the play starts.

A no-huddle offense quickly exposes defenses that haven’t practiced against no-huddle offenses. More importantly, it exposes a team without a system in place to deal with playing a no-huddle team.

Ok, that was a long-winded setup, but I didn’t want to lose anyone unfamiliar with football in the U.S. The point of comparing the regular offense and the no-huddle offense is that there are parallels between how defenses handle the tempo of a no-huddle game and how your business deals with the increasing tempo of business, much less the pace of change.

Are you feeling the pressure to deliver faster than last year? Did you go faster last year than the year before? Do you expect this need to accelerate every year is going to continue, or do you think that things will go back to normal once you get past this next push?

I think you need to plan on need for speed sticking around for the duration.

Two ways to go fast

With that expectation on your back, the need to increase There are two ways to go fast – with haste, or with a system.

While those who start off with haste might get a lead, it’s pretty typical that they will find themselves assembling the plane while rolling down the runway. Some pull it off. Most don’t, because they aren’t designed for speed. Instead, they simply decided to go fast.

Deciding to go fast is OK. Deciding to do it without a system designed to keep the quality of everything at level your clients are used to (or better) is risky.

Systems are the key

A system of systems is what you’ll need to increase speed without losing the quality and other factors your clients already depend on. Each system can be simple, but you have to be able to replicate it, perhaps automate it and most of all – depend on it to perform a certain job. A system’s job might be to check the quality of one step of a process, or simply to verify its completion. 10 systems might check quality at 10 places, or might make sure you follow up properly, insure that you have the right data recorded, or confirm that you have the right materials and labor scheduled for a particular item. These processes become a system of systems when they work together to help your business work.

When this system of systems is designed to protect the moving parts of your business, then you’re designed for speed and can increase the speed of production and delivery without risking quality and reputation.

Once you have these things in place, you’ll be more difficult to compete with. Not only do competitors have to keep up with your quality, but now they also are forced to deal with the pace you maintain.

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Customer relationships Direct Marketing Email marketing Management planning Public Relations Setting Expectations Small Business strategic planning systems Travel marketing

Communicate when nature threatens

Last week I said “Allowing perceptions to percolate in our guests’ minds without updates is dangerous not only for this year’s success, but for future years as well.

Part of your job is to set guests’ minds at ease by giving them the advice they need to make considered decisions during situations they’re unaccustomed to.

They want to protect their investment, their vacation and their families. It’s safe to say that your local, regional and/or state tourism groups, media and attractions will put effort into this. What isn’t safe to assume is that your guests will see their message and understand it as you do.

You might be the only one in the area with their name and contact info. You might be the only one who develops a relationship with them. Your business is the one that will pay the price if they get off a plane in Minneapolis and see an airport gate “if it bleeds, it leads” style news video with an uninformed announcer from 2500 miles away saying “Glacier Park is on fire“.

They don’t know what you know. You’ve seen all of this before.

Make sure they understand that and that you are giving them time-tested advice based on your knowledge of their visit and their family. YOU need to contact them and make sure they have accurate information, otherwise, their next flight might be toward home.

Details protect your business

Last time, I added a lot to your plate:

Segmenting guests into groups. Collecting emails. Collecting cell numbers. Writing emails. Sending emails. Documenting the various communication processes so anyone can do it, even if you’re tending to a sick parent. Producing templates for the emails you might need to send. Producing templates for the text messages you might need to send. Producing a fill-in-the-blanks script that a staffer can read when calling guests who are in transit or in the area. Documenting the process so that anyone on site knows who is responsible for starting the process, which one to start, who to notify and what to say.

This isn’t about creating more work for the owner/manager. This is about putting a trust-building, by the numbers, automated where necessary system in place so that it can be handled by employees who never dealt with it before.

You won’t have time to do any of this when a fire blows up in the park. You won’t have time to manually send 300 emails or make 100 phone calls while deciding what to say on the fly.

This is about creating time to deal with critical high-season work when you least want to be “messing around with emails”, even if your place isn’t directly threatened. These tasks need to be organized, tested and ready to implement before the season starts.

Fine tuning the message

When you sit down to build this system, you’ll have a lot to think about. For example, the urgency and means of contacting them is as different as the message for each group and situation.

What conditions that merit separate communications and (most likely) separate messages? What groups should be split out of “the entire list of guests”?

A number of situations will expose themselves as you think it through. Go back over prior years and think about the times you handled this well and not so well. What did you learn after the fact that you didn’t consider when things were unfolding? Your own experiences count too – How was this done when you were on vacation and unexpected problems occurred?

Two examples:

  • If evacuations or cancellations are necessary, will evacuated / cancelled guests get priority booking for a substitute stay at your property?
  • As the situation unfolds, it will become more clear what to say to your guests with reservations a month or more out – but you need to communicate the plan now so they know what to expect. What will you say?

Your business may not be affected by fire season but nature threatens your business somehow and when it does, “fire season lessons” apply. Your area might be subject to drought, low (or high) water in rivers/lakes, hurricanes, tornadoes, or a damaged bridge instead of a forest fire.

No matter what happens, send the right message to the right guests in a timely manner in the right way. Build trust. Practice, automate, document, delegate.

 

Categories
Automation Competition Manufacturing Small Business strategic planning systems

Half of China’s companies do this

Recently, I was reading a story in the New York Times about a Chinese city’s effort to vastly expand their use of industrial robotics. The story’s video hits home 98 seconds in.

The official being interviewed indicates that the city’s goal is to reduce the number of employees by half and finishes his sentence by saying “many companies are working toward this goal“.

Not one company in one town. Not the company responsible for the birth of Chinese industrial robotics, but “many companies”.

Why expand robotics use?

They’re doing this by working toward the creation and deployment of high-quality “human-like” robotics technology.

A senior manager at one of their leading manufacturers of industrial robots says “China’s demand for industrial robots has been on the rise year after year. Compared to America, Japan and Europe, the increase in demand is enormous.

When I dig a little deeper, I find that there are a number of reasons for this drive to expand the robotization of China – and not all of them are expected:

  • They can’t hire enough people fast enough.
  • Their level of output has stagnated because there are only so many places to put all of these people, which drives…
  • They are encouraging people who have abandoned rural areas to move back to their hometowns – in part to take some of their skills with them.
  • To cut manufacturing costs.
  • To increase safety

What’s this got to do with your small business?

Perhaps nothing. However, a few of the items on China’s list are likely to fit business needs where you are, even though the scale of your project might be dwarfed by a large Chinese manufacturing business.

Can’t hire enough people fast enough.

Not a week goes by without hearing this from someone. Now, to be sure, some of this is driven by salary levels, but most of it is driven by the availability (or lack of it) of trained people in some skill areas. It’s of particular concern in rural areas where you find specialized businesses putting down roots, or simply growing out of local need to create jobs and enterprise.

One of the key things that challenge the expansion of modern businesses in rural areas is the availability of skilled workers with advanced skill sets. Not everyone needs these, but those who do struggle to fill openings when they’re ready to expand.

Abandoned rural areas

China’s encouraging people to move back to their hometowns, in part because some of their urban centers are overwhelmed. Hopefully some of this is also because of a desire to improve urban worker lifestyles. The abandonment of rural hometowns isn’t limited to China, however. In the U.S., rural communities have been shrinking due to “brain drain” as their graduates move away to college and either don’t ever return, or perhaps don’t return for several decades. If they wait several decades, they don’t necessarily come back to town and start families. Instead, they come back as empty nesters.

To lure graduates with newly-gained modern skills, their hometown needs a place to work where they can use those skills. Kids don’t run off to college and get an engineering degree so they can move back to town and manage a franchise restaurant.

To cut manufacturing costs

As I noted above, the graduates we want to keep at home need a place to leverage their skills and that place needs to be competitive in the global market they serve, otherwise the jobs are tenuous as the employer simply cannot compete in the long term.

To increase safety

Safety has been a topic for discussion here in Montana for a while, due to a less than ideal safety record in recent years. While some of this can be addressed through training and safety equipment, there is another way to cut down on dangerous work.

Yes, robotics

These last four items can be addressed in part – not completely – through robotics. Maybe you aren’t ready today. Maybe you don’t manufacture today. Maybe you already have some automation in place. Maybe you and your staff worry that you will be risking your business and its jobs by involving robotics.

Maybe you’ll be risking your business and its jobs if you don’t involve robotics.

While it’s not applicable to every business, it’s worth a look. A safer, more productive workplace creates jobs that more likely to stick around.

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attitude Competition Entrepreneurs Ideas Improvement Positioning Small Business strategic planning

Looking to disrupt a market?

2015 is shaping up to be a big year in Montana for Startup Weekend. With the Billings event already under our belt and three more scheduled this year (Great Falls, Bozeman, Butte), lots of people are looking for startup ideas.

One place that gets a lot of interest is “stodgy” established markets that are lucrative but neglected from a modernization and/or innovation perspective.

It’s easy to point out markets whose former leaders felt things were good enough. Those markets now have to compete with Craigslist, Uber, Airbnb, SpaceX, Apple iTunes, Spotify, Netflix, Amazon, Expedia, Kickstarter, Zillow and so on.

Ironically, some of these companies have awakened their markets to the point where they are now being disrupted by startups and in some cases, by the original leader in the market.

Things are as they should be in these markets. We earn the privilege to stay in our market every day. When we don’t, we often expose opportunity we’ve ignored, provoking someone to disrupt a market.

Resting on laurels

It’s easy to look at existing markets for disruption candidate because so many existing businesses invite competition simply by virtue of how they treat their clientele.

For example:

  • Do you work with businesses that take you for granted?
  • Treat you poorly?
  • Treat you with disdain?
  • Treat you like they’re doing you a favor?

dWhen a business leaves you feeling like one or more of those, it’s difficult not to consider what it would take to disrupt them out of the picture.

Want to disrupt a market? Disrupt yourself

Look back at that list. Does your business you make your customers feel that way? If they do, one way to fix it is to disrupt yourself. So where do you start?

Four ways that startups disrupt an existing business (or market) are through speed, improved customer service, decoupling and unbundling. Two of these are forgone conclusions that you simply cannot avoid, speed and improved customer service, while the other two are rapidly becoming assumed competitive angles.

Speed – No one’s resistant to the market’s need for more speed at the same or better level of quality. Conventional wisdom says that it can’t be done – “Pick any two: cheap, fast or good“, but conventional wisdom rarely considers what the startup list at the top of the page not only tried, but accomplished.

Improved customer service – To be sure, there are companies out there that do well both in revenue while treating their clientele poorly, but their days are numbered. One by one, they will be picked off – and I’m happy to help their competition do it.

Unbundling – Unbundling involves separating the sale of an item from the delivery of that item. Expedia is an unbundler. They took services offered by travel service providers and unbundled them from the provider who delivers them, made it easy to buy and search for what travelers needed, sold them and collected their cut. Expedia got substantial market share because they made it easy to find and compare flights without having to deal with each provider’ web site and/or phone tree. Unbundling has somewhat limited scope because it only happens at consumption / purchase time, which is why decoupling businesses started popping up.

Decoupling – A decoupler pulls apart the evaluate-select-purchase process that used to be performed at one established business. Decouplers focus on radical improvement of a single part of the process. For example, retailers face competition from decouplers who might mail samples to someone’s home, allowing them to skip a trip to the mall to decide what they want. Once the mall trip is eliminated, another step in the evaluate, select, purchase process might be removed elsewhere. Any point along the evaluate, select, deliver, purchase process is a candidate for decoupling. While the social aspects of that trip to the mall can’t yet be delivered to your mobile device, there are plenty of other ways to address shoppers’ social needs.

Try Startup Weekend Therapy

Stuck on how to disrupt yourself? Take part in a Startup Weekend. I’d be shocked if a weekend in that environment didn’t provide you with ideas and mindset adjustments to bring back to your business.

Want more? Here are a few links to startup idea resources.

http://ideamarket.com/founders.html

http://www.paulgraham.com/ambitious.html

http://paulgraham.com/startupideas.html

http://www.inc.com/rahul-varshneya/4-places-to-look-for-your-next-startup-idea.html

http://old.ycombinator.com/ideas.html (this list is aging, but they might seed a useful idea)

http://www.ideaswatch.com/

Categories
Business model Competition Entrepreneurs Improvement Small Business strategic planning Technology

The Pace of Change

If things have seemed a bit frenetic in your business lately, you’re not alone.

Many markets are experiencing a rapid rate of change – and in fact, the rate of change is accelerating. As a result, businesses, governments and even National Football League officials are struggling to keep up.

For example, if you watched the Super Bowl Sunday night, you could see it happen on almost every play. The offense would go into a formation, the defense would react before the play started and the offense would react to that, again, before the play started – with the quarterback changing the play or aspects of the play multiple times in the seconds before the ball is hiked.

Ask Florida State

This sort of pace isn’t unique to the Sunday’s game, it’s a normal part of football these days. If you saw Oregon play Florida State in college football, you saw a similar thing. Rather than using half a minute to stand around and talk about the play, Oregon was averaging a play every 16 seconds – meaning 16 seconds after a tackle was made, they were hiking the ball to start the next play.

For Oregon, this is normal and their conditioning and play calling is designed around it. For most opponents, the pace causes confusion and wears out their defensive players to the point that Oregon often rolls over exhausted defenses in the later stages of the game. The pace of change in the game is not what most opponents’ physical training or play calling training is designed for. As a result, teams often end up reacting on a play by play basis, rather than working their plan. Sometimes, it isn’t pretty, as Florida State found.

This sort of pace isn’t accomplished by simply speeding up the normally slow parts of the game. To execute at this pace requires smarter players, smarter coaches, better technology, as well as training regimens, on-field communication and play calling mechanisms designed to play non-chaotic football that feels chaotic to opponents.

The pace of change in business is no different

Things are no different in business these days and if your market hasn’t experienced it yet, it’s possible that you simply haven’t noticed, or you’ve perceived it as a temporary bump in the road that’s made things feel a bit more chaotic than normal. Be very careful about seeing this as temporary. From what I’m seeing and reading, that bump in the road is a new normal.

The accelerated pace of change has been obvious in the technology space, where there are well-known graphs showing the ever-shrinking time it’s taking for broad market technology adoption to reach a solid level of adoption.

This chart shows the rate of technology adoption accelerating from 1873 to 1991, yet the pace of change during that period is nothing compared to the adoption rate of the last 10 years, where reaching 50 million customers has gone from several decades (telephone, radio) to at most, a few years.

While the adoption time to 50 million users for the iPod (three years) vs. the radio (38 years) may not seem important to your business, the changes hitting your market are accelerating.

Is keeping up…enough?

In the fastest markets, keeping up is incredibly difficult – if not impossible. Yet some are not only keeping up, they’re pushing the changes.

Historically, when the speed of a technology or business function accelerated, it took a while for the level of quality and safety to reach steady state. These days, systems are often built into “the next big thing” (for this quarter) that enable quality and safety to remain stable.

Waiting for things to slow down…isn’t going to happen. If your business is affected by these changes, the methods you use for planning, tracking, finance, execution, supply chain management, manufacturing, hiring, security, business models and many other things have to keep up – and keep keeping up at an accelerating pace.

Keeping up while needing to accelerate your ability to keep up…that’s the trick.

The dangerous thing is thinking that your business isn’t affected by this. Finding a business that isn’t affected by 3D printing, robotics, artificial intelligence, “big data” or cloud computing isn’t easy.

What’s easy is fooling yourself into thinking that it might not affect your business.

Categories
Competition Customer relationships customer retention Direct Marketing Marketing Positioning Public Relations Small Business strategic planning Trade Shows

Exhibiting at trade shows – Why do it?

Should we go to every trade show every year? Some of these shows cost us well over $7000. The one show that we want to skip this year is part of an association. They have about 300 members. We know just about all of them and know what they are using. Of course, a bunch of them use our product.

Anyone who has attended a trade show knows why this question is being asked.

Avoid the knee jerk

Our thoughts first jump to the time, trouble and expense of trade show travel, time away from “real work”, conference center shipping and logistics, being on your feet all day for three to five days, skipping meals and sleep as you work 6:00 am to midnight while your friends, family and co-workers think you are “vacationing” in Orlando or Las Vegas, much less the general aggravation of things like paying $300 to rent a 10′ x 10′ piece of cheaply-made, unpadded carpet.

Trade shows can be a hassle. They require a sizable investment in time, money and people to participate, so the natural response might be “Let’s think of reasons not to go.

Don’t do that.

Why go when you own the market?

If you don’t go to a show or association meeting because you feel you own the market, what message does it send?

Here are a few possibilities:

This vendor doesn’t care enough to show up and talk to us.

This vendor only shows up when they think they can close a bunch of deals.

This vendor takes us for granted.

If your competitors are there – these are some of the ways they might position your decision not to attend, or they might simply say “Think about why Company A wouldn’t show up.

Think about the show from the point of view of the attendees who invested in your products and services. Will your absence tell them you’re taking them for granted? Remember, these people helped you gain your dominant market position by investing in what you sell. By attending these events, they’re identifying themselves as the ones who care enough about their business and their industry to step away from the office, learn what’s new, learn what is (and isn’t) working in their industry and brainstorm with peers and vendors about solutions.

Do you prefer to listen to the ones never involve themselves in such things?

Seth calls these people your tribe. Dan calls them your herd. The concepts are different, but their needs are similar. Herds require attention and care. Your clientele does too.

Herds? Really?

I don’t refer to “herd” with the mindset that your clientele is a mindless bunch of cattle. Instead, consider “herd” from the viewpoint of a rancher. How do they attend to their care, oversight and feeding?

Do they let the herd eat what they want? Deal with the weather without concern?  If a predator appears, do they simply let that predator kill off a few of the herd? If someone shows up to rustle part of the herd, do they sit back and let it happen?

Ranchers provide the right forage and plenty of fresh, unfrozen water, while protecting the herd from predators, rustlers and other threats.

They care for the members of the herd because they know each member of the herd is returning a ROI. They know what it costs to lose a head. Do you?

While members of a cattle herd don’t choose to be there, clients can choose to leave, as can tribe members. The care and attention you provide has a great influence on their choices.

What opportunities will exhibiting at a trade show present?

Find out what concerns your market today – from the current perspective of the leaders in your market, rather than from insights and perceptions that may have been formed years ago.

It’s an opportunity to talk with someone who uses another vendor’s product. If they won’t switch to yours – isn’t it important to know why? A face-to-face, eye-to-eye discussion may yield critical insight, or it’ll confirm that those people aren’t your ideal clients. Either way, it’s valuable info.

What will you gain from a stronger relationships with your clients and other vendors in your market?

Trade shows are unique gatherings of the best clients, prospects and vendors. They’re a big opportunity – if you work shows strategically and execute them with a plan.

Categories
Entrepreneurs Improvement Leadership Small Business strategic planning The Slight Edge

Reinvigorate your business on a budget

While I suspect you’ve already done your strategic business planning for 2015, you might still be wondering what else you could do to “turn the knob” on all or part of your business.

It’s a natural thought process at this time of year. In the words of Saturday Night Live… you think your business needs more cowbell.

Here’s a checklist of baby steps you can take that will help you reinvigorate your business without spending a ton of money.

Marketing

The best way to not spend a ton of money on marketing is to track the response you get. You can do this with tools ranging from a yellow pad and a pen, to a spreadsheet, to sophisticated software. The key isn’t the tool you’ve chosen as much as it is that you actually track response and make future marketing decisions based on what those responses tell you.

For example, if you advertise on the radio, on cable TV, in a newspaper, email, web advertising and via direct mail, you need to be able to tell which of those are making the phone ring AND making sales happen. It may not be one of them, it might be all of them or a subset of them.

You need to know which media work for you and which don’t. It doesn’t matter if one works for someone else if it doesn’t work for you.

Likewise, sales copy that works on the radio may not work on one or more of those other media.

You need to know which campaigns work on which media.

Ultimately, you need to know what works so you can stop spending money on what doesn’t.

Accounting

Do whatever it takes to make this as easy as possible. Without a clear view into your numbers, you might be making decisions that are taking your business in the wrong direction.

If this means getting help, find a way – even if you have to use temporary help or an online service. If it means changing the tools you use, do it.

Even though accounting is not particularly sexy or fun, it’s the only scoreboard you have.

Sales

Close the sales prevention department.

The “sales prevention department” includes all of those things that make prospects shrug their shoulders and walk away.

Among other things, it’s the sign that they can’t read, the phone that wasn’t answered, the salesperson who didn’t attend to them, the cashier who barely looked up from the register except to look at their phone, the website they can’t use to do business with you, the process that made buying not worth the trouble, and the inane, repetitious paperwork that wore them out before they could give you their money.

Customer service

If your customers bought something in the last 90 days, have you followed up with them simply to check that their purchase did what they wanted? What if it didn’t? What did they do? Was your staff of any help?

Follow up.

Back office and Infrastructure

What costs your business time and money every day? If you asked each staff member what would help them do their work more effectively and efficiently, what would they say?

Ask them. You might learn something.

Cover your assets

If you can’t find instructions that would help someone restore your data if computers were stolen or burned up, your business is at risk. What are you going to do about it?

Do you care if your business outlives you? If you do, ask yourself this: “What would happen to my business over the next month or so if I died in a terrible accident today?

Communications

Can you reach all of your customers with a message personalized to them?

Can you reach all of your customers without placing an ad on TV, radio and in the newspaper?

In both situations above, can you do so by the end of the day today? How about the end of next week?

Website

I could discuss this topic in great detail and suggest lots of changes, but remember, we’re talking about reinvigorating your business website on the cheap.

Does your site have your phone number on it? Does it have a map on it? Does it have your physical address on it, where appropriate? Little, easy to forget things make all the difference.

 

 

Categories
Business model customer retention Leadership Management Small Business strategic planning

Defending your business

Business is not easy and we (business owners) make it harder by making what will later seem like silly mistakes. Hopefully, we learn lessons from those mistakes, much less a bit more often.

That isn’t necessarily the hard part.

Sometimes, business gets tougher because we get the wrong kind of help. The kind of help I’m speaking of includes things that your clientele and staff might do or say, things that get published in the news, or even changes to regulations that don’t affect your business directly, but affect how your clients run theirs.

One of your jobs as owner is to anticipate and build defenses against situations that could threaten or even destroy your business.  You should anticipate these things, defuse them, prepare for them, and work around them.

Anticipating these situations is what allows you the time to defuse, prepare for and work around them – that’s really what defending your business is all about. Most of these situations will present themselves whether you like it or not. The secret is being prepared for them in advance.

Clients and Prospects

Most client and prospect related situations can be avoided with proper sales and service training. A number of these will come to you in the form of sales objections, misinformation, price shopping and other things that your marketing is designed to deal with.

Reacting to these situations in the moment will often produce a solution that hasn’t been well thought out – and usually hits profit first, while setting precedent you don’t want to set. Anticipating and training for these things will prevent the need to react rashly in most cases.

Media, Industry and Gurus

It’s easy to place the blame on the media – particularly today when some news outlets act more like news creators and take part in less than authentic clickbait campaigns to get your attention.

Media includes far more than the local or even national papers. It includes the trade organizations and industry groups that affect your market, and the “guru” types who command attention of your market.

The key is to be monitoring everything you can that relates to your business, your clients, your clients’ business and any external entities that affect them. There are plenty of automated tools out there to make this easy.

Monitoring isn’t enough. You have to lead the market by taking a position on what’s going on. Some will follow, some will not.

Regulatory Changes

There are a couple of angles to consider.

One is for the business that simplifies the act of dealing with government agencies of any kind, at any level. These businesses also live and die by the frequency and volume of changes in those regulations.  It can be a bit of a roller coaster ride.

Ideally, you need to make sure that these regs aren’t the sole reason your clients do business with you. If your model is designed and totally depends on the ability to help those who need to work within the regs and nothing else, you’re at risk. Rather than depend on a single revenue stream, use the knowledge you’ve gained about these client and their business to find ways to help them in addition to the ways you help them deal with regulatory challenges.

Another angle is all about staying on top of the changes that affect your clients and leading them in the direction that keeps them out of harm’s way. Any efforts you make to combat these issues are a different, and perhaps simultaneous, path while the rest of your efforts are still at work.

Equity

One particularly strong way to defend your business is to build equity into your business model.

You might think that you can’t do this because you don’t deal in real estate or stock, but that just isn’t so. If your business model allows you to know that you have sales booked for the next 30, 60 or 90 days (if not beyond) – that’s the sort of equity I’m speaking of.

Having those sales booked in advance, regardless of how you’ve done so, gives you the flexibility and freedom to make better decisions when defending your business, because you aren’t thinking about how you’ll make payroll next week when making those decisions.

Defending your business is one of a business owners’ strategic responsibilities. What are you doing to defend yours?