'A significant investment' in Ontario manufacturing - here is the quick story about how a Canadian 4th generation business grew beyond the family's wildest dreams.
Hamilton, Ont.-based Bermingham Foundation Solutions Ltd. has secured "a significant investment" says chairman and fourth-generation owner Patrick Bermingham.
Its new strategic partner, Soletanche Freyssinet, is part of the VINCI group, a Paris-based, publicly traded company that employs 180,000 people in about 100 countries.
Bermingham, founded in 1897, is Canada’s oldest foundation and marine specialty contractor, with a focus on the transportation, energy and mining markets. It also manufactures specialty foundation equipment and provides engineering services under the trade name Berminghammer. It currently exports equipment and services to more than 40 countries. Bermingham’s senior management will continue to run the business and remain shareholders.
How did a company with about 150 employees attract such a large foreign investor?
Five years ago, Bermingham met Loewen and Partners who taught them about the benefits of private equity for companies under $100M. As a family business, Bermingham had slowed down its growth by relying purely on the banks. As a client for 110 years, Bermingham's bank gave good loans but not enough to grow the company at a quicker pace. Higher growth is tricky and much higher risk which puts it outside the bank's comfort zone. Private equity may have a poor reputation but so do banks. Yet, smart family business owners who have achieved considerable wealth educate themselves about why these different types of finance do have a good achievement rate. Staples, Facebook, Google and Caterpillar have all achieved their success with private equity underpinning.
Putting aside their fears, Bermingham used Loewen and Partners to build up their valuation case and brought in a private equity investor that allowed the company to recapitalize its balance sheet and build out its strategy. Bermingham subsequently repurchased 100 per cent of the business, returning the company to the family and employee ownership. Toronto-based investment banking firm Loewen & Partners, which advised the company in the private equity transaction and the VINCI one, says strong processes and reporting structure subsequently made it easy for a large firm to do its due diligence.
Backed by Soletanche Freyssinet, Bermingham now has a mandate to grow. It intends to expand its overseas operations with increased equipment sales and rentals, and enter into joint-ventures on large scale projects at home and around the world.
Bermingham's long history of innovation over multiple generations of family ownership, and the fact it has achieved continued success in manufacturing - an industry long considered on the wane in Ontario - makes this announcement significant on a number of fronts.
Consejos de cómo llevar su empresa Familiar al éxito. Libros y artículos sobre temas del mejor manejo de la sucesión, del trato entre familiares y como coordinarse para que la empresa sea exitosa y se mantenga por generaciones.
sábado, 31 de diciembre de 2011
viernes, 30 de diciembre de 2011
Creating a Life of Opportunity
Life without opportunities is dull and unfulfilling. Lost opportunities discourage; lack of opportunities defeat.
We’ve all heard people wishing they had more opportunities. This happens for two reasons.
1. Comparing our opportunities with others makes us want what others have. Envy and greed are, however, partners with emptiness and frustration.
2. Wrong-headed thinking about opportunities. Opportunities are not primarily about getting.
Getting is the result of opportunity
not the opportunity itself.
Definition:
Opportunities are your chance to add value before receiving benefit.
You have more opportunities than you can imagine because opportunities are about giving. The more value you add, the greater the opportunity.
Confession:
Dark, greedy selfishness lurks in my heart, alongside generosity. I worry about giving too much and what I’ll get in return. I have two responses to my darkness.
1. Be generous anyway. I call it acting otherwise.
2. Experience shows the richness of adding value exceeds the narrowness of greed and envy.
Bottom Line:
The simple act of giving results in richness.
Adding value creates opportunity.
2012 Challenge:
Create a life of opportunity by thinking first of what you give rather than what you get. Worry less about getting and more about adding value.
Be generous and see what happens.
Resources:
Books that will help you build a life of opportunity.
Go Givers by Bob Burg
Leadership is Dead by Jeremie Kubicek
We’ve all heard people wishing they had more opportunities. This happens for two reasons.
1. Comparing our opportunities with others makes us want what others have. Envy and greed are, however, partners with emptiness and frustration.
2. Wrong-headed thinking about opportunities. Opportunities are not primarily about getting.
Getting is the result of opportunity
not the opportunity itself.
Definition:
Opportunities are your chance to add value before receiving benefit.
You have more opportunities than you can imagine because opportunities are about giving. The more value you add, the greater the opportunity.
Confession:
Dark, greedy selfishness lurks in my heart, alongside generosity. I worry about giving too much and what I’ll get in return. I have two responses to my darkness.
1. Be generous anyway. I call it acting otherwise.
2. Experience shows the richness of adding value exceeds the narrowness of greed and envy.
Bottom Line:
The simple act of giving results in richness.
Adding value creates opportunity.
2012 Challenge:
Create a life of opportunity by thinking first of what you give rather than what you get. Worry less about getting and more about adding value.
Be generous and see what happens.
Resources:
Books that will help you build a life of opportunity.
Go Givers by Bob Burg
Leadership is Dead by Jeremie Kubicek
Seven Reasons Why Leading With Price Will Kill Your Advertising, Your Branded Offers--and Your Company
Nowhere in marketing today do emotions run hotter than in advertising that highlights the role of (low) prices.
In boardrooms everywhere, one can imagine what's being said: We need to make some money fast, so let's lower our prices and let everybody know. So CEOs and CFOs carry the day while CMOs beat a quick retreat to inform their ad agencies.
But the thing is... it's a bad idea to lead with price in advertising.
First, discounting, especially repeatedly, isn't sustainable. One of the key advantages of a sale is the element of surprise. How does surprise register on people's faces? Their eyes go wide, and their mouths fall open; it's nature's way of saying shut up and notice the world around you.
Surprise aids stopping power in advertising, but surprise fades when you use the reduced-price trick repeatedly.
Second, surprise is really a pre-emotion. It's brief (less than a second long) and it's followed by a verdict: either a positive "Wow!" or a negative "Yikes!" Repetitive low pricing leads to expectations of future low prices, desensitization, and the impossibility of creating a "Wow" response.
Shopper research has shown that seeing any price tag causes disgust. Instinctively, people don't like giving up their money. So creating more delight regarding the offer and generating allure that exceeds feelings of disgust about surrendering cash are what make a positive purchasing experience.
The problem is that a low-price strategy isn't about the offer's intrinsic value: It's merely a desperate attempt to lower people's disgust levels; but ultimately, because of desensitization, it's a losing game.
Third, a focus on prices is about numbers and statistics, and it ushers people from right-brain emotional involvement in advertising to left-brain analysis. That's a bad tradeoff, given that everyone feels before they think.
Results from management consulting company IPA's database of 880 marketing campaigns has found that emotion-oriented campaigns generate twice as much profitability as traditional, hard-sell, reasoning-oriented campaigns.
Fourth, price-leading advertising creates quality problems for the offer. Let's consider the value = quality/price equation. There, price at least gives the illusion of being a benchmark for inferring the quality of the offer.
So what will a lower price do? It might shape perceptions that the floating, undetermined quality of the new offer is quite low or that a previous offer was never worth what people had been paying. Put another way, cheap doesn't feel good.
Fifth, encouraging consumers to take a price-oriented, statistical, rational approach to purchasing decisions can have disastrous unintended consequences.
That's because contrary to popular opinion our emotions provide valuable insight. They steer us: A conservative estimate is that 95% of people's thought activity isn't fully conscious, and hence is intuitive and operating in the realm of emotion.
Sixth, brand loyalty is at risk because pride takes a hit. Loyalty is a feeling, and how are loyal users supposed to feel when they see the price is lower for everyone, not just for them?
Moreover, the company loses twice over. Current customers pay less for goods they were already buying (and may not buy again at full price). As for new customers who bought because of a deal, their loyalty is less real than the profit margin sacrificed.
And seventh, a brand on sale is a brand with an integrity problem. A key way we judge the trustworthiness of others and companies is the degree to which they behave consistently. With price-leading advertising, a company's identity becomes fuzzy. Suddenly, you are either a discount brand or you're signaling a lack of confidence that, in dating as in commerce, is not attractive.
In boardrooms everywhere, one can imagine what's being said: We need to make some money fast, so let's lower our prices and let everybody know. So CEOs and CFOs carry the day while CMOs beat a quick retreat to inform their ad agencies.
But the thing is... it's a bad idea to lead with price in advertising.
First, discounting, especially repeatedly, isn't sustainable. One of the key advantages of a sale is the element of surprise. How does surprise register on people's faces? Their eyes go wide, and their mouths fall open; it's nature's way of saying shut up and notice the world around you.
Surprise aids stopping power in advertising, but surprise fades when you use the reduced-price trick repeatedly.
Second, surprise is really a pre-emotion. It's brief (less than a second long) and it's followed by a verdict: either a positive "Wow!" or a negative "Yikes!" Repetitive low pricing leads to expectations of future low prices, desensitization, and the impossibility of creating a "Wow" response.
Shopper research has shown that seeing any price tag causes disgust. Instinctively, people don't like giving up their money. So creating more delight regarding the offer and generating allure that exceeds feelings of disgust about surrendering cash are what make a positive purchasing experience.
The problem is that a low-price strategy isn't about the offer's intrinsic value: It's merely a desperate attempt to lower people's disgust levels; but ultimately, because of desensitization, it's a losing game.
Third, a focus on prices is about numbers and statistics, and it ushers people from right-brain emotional involvement in advertising to left-brain analysis. That's a bad tradeoff, given that everyone feels before they think.
Results from management consulting company IPA's database of 880 marketing campaigns has found that emotion-oriented campaigns generate twice as much profitability as traditional, hard-sell, reasoning-oriented campaigns.
Fourth, price-leading advertising creates quality problems for the offer. Let's consider the value = quality/price equation. There, price at least gives the illusion of being a benchmark for inferring the quality of the offer.
So what will a lower price do? It might shape perceptions that the floating, undetermined quality of the new offer is quite low or that a previous offer was never worth what people had been paying. Put another way, cheap doesn't feel good.
Fifth, encouraging consumers to take a price-oriented, statistical, rational approach to purchasing decisions can have disastrous unintended consequences.
That's because contrary to popular opinion our emotions provide valuable insight. They steer us: A conservative estimate is that 95% of people's thought activity isn't fully conscious, and hence is intuitive and operating in the realm of emotion.
Sixth, brand loyalty is at risk because pride takes a hit. Loyalty is a feeling, and how are loyal users supposed to feel when they see the price is lower for everyone, not just for them?
Moreover, the company loses twice over. Current customers pay less for goods they were already buying (and may not buy again at full price). As for new customers who bought because of a deal, their loyalty is less real than the profit margin sacrificed.
And seventh, a brand on sale is a brand with an integrity problem. A key way we judge the trustworthiness of others and companies is the degree to which they behave consistently. With price-leading advertising, a company's identity becomes fuzzy. Suddenly, you are either a discount brand or you're signaling a lack of confidence that, in dating as in commerce, is not attractive.
Succession
What is succession planning?
The basic principle of succession within a family business is preparation and training of the potential successor(s). Potential successors can be family business members, usually next-generation family members, or non-family members.
Who's responsible for succession?
Typically, the CEO has the primary responsibility for succession. However, the younger generation members who are potential successors also have the responsibility to be flexible, to apply themselves to learning the business and getting experience in as many areas of the business as possible.
How do you learn if the next generation wants to succeed another family member?
There are many stories of "assuming" that the next generation intended to step in when, in fact, they were not. The conversation needs to occur early, perhaps when they are in school or are working summers. Recognize that the answer could range from "certainly" to "I don't know." Be prepared for the uncertainty and be ready to propose a plan of action which removes the pressure of such a decision.
What are the critical questions for potential successors?
All potential successors should ask themselves two questions: 1) Do I want to run the business at some time in the future? 2) What must I do to prepare myself?
Can a CEO get any help in this important role?
Yes. If there is a board, the CEO should seek the board's advice. If there is a management team, the CEO should also seek their advice. If there has been a policy of setting goals in the company and evaluating employee performance — including family employees — against those goals, the CEO's decision should be easier.
How can a potential successor cooperate?
A potential successor should seize every opportunity to improve his or her knowledge of the business and role as a manager. Many family businesses have used outside coaches to work with potential successors, giving them an objective observer who can evaluate their strengths and weaknesses and provide guidance in overcoming the weaknesses. Coaches are used extensively in non-family businesses as well.
What if the next generation is not ready to take the reins and the CEO/president is ready to retire?
It may be time to consider a trusted member of the management team who understands the situation and who recognizes that one of his or her duties is to lead the project to "ready" the next family leader. If there is no one in the organization who could meet the criteria, go outside and communicate clearly what the expected outcome is and what will happen in the organization when he or she is ready.
What about non-family member successors?
In some cases no one in the next generation is interested in working in the business. In other cases, the simple fact is that there may be no one in the family old enough, experienced enough or capable to take over. In these cases it is necessary for the owner to assess this situation and identify non-family-member employees who might have potential. In cases where the next generation is not yet ready, an outsider might be brought in on a contract basis to serve in the interim. In other cases, an outsider would need to be brought in to begin the transition away from family management.
Does that mean the company will no longer be a family business?
No. Many companies are family owned, but managed by a non-family staff. The family retains ownership, provides oversight for management, and assures that the family objectives and values are maintained.
The basic principle of succession within a family business is preparation and training of the potential successor(s). Potential successors can be family business members, usually next-generation family members, or non-family members.
Who's responsible for succession?
Typically, the CEO has the primary responsibility for succession. However, the younger generation members who are potential successors also have the responsibility to be flexible, to apply themselves to learning the business and getting experience in as many areas of the business as possible.
How do you learn if the next generation wants to succeed another family member?
There are many stories of "assuming" that the next generation intended to step in when, in fact, they were not. The conversation needs to occur early, perhaps when they are in school or are working summers. Recognize that the answer could range from "certainly" to "I don't know." Be prepared for the uncertainty and be ready to propose a plan of action which removes the pressure of such a decision.
What are the critical questions for potential successors?
All potential successors should ask themselves two questions: 1) Do I want to run the business at some time in the future? 2) What must I do to prepare myself?
Can a CEO get any help in this important role?
Yes. If there is a board, the CEO should seek the board's advice. If there is a management team, the CEO should also seek their advice. If there has been a policy of setting goals in the company and evaluating employee performance — including family employees — against those goals, the CEO's decision should be easier.
How can a potential successor cooperate?
A potential successor should seize every opportunity to improve his or her knowledge of the business and role as a manager. Many family businesses have used outside coaches to work with potential successors, giving them an objective observer who can evaluate their strengths and weaknesses and provide guidance in overcoming the weaknesses. Coaches are used extensively in non-family businesses as well.
What if the next generation is not ready to take the reins and the CEO/president is ready to retire?
It may be time to consider a trusted member of the management team who understands the situation and who recognizes that one of his or her duties is to lead the project to "ready" the next family leader. If there is no one in the organization who could meet the criteria, go outside and communicate clearly what the expected outcome is and what will happen in the organization when he or she is ready.
What about non-family member successors?
In some cases no one in the next generation is interested in working in the business. In other cases, the simple fact is that there may be no one in the family old enough, experienced enough or capable to take over. In these cases it is necessary for the owner to assess this situation and identify non-family-member employees who might have potential. In cases where the next generation is not yet ready, an outsider might be brought in on a contract basis to serve in the interim. In other cases, an outsider would need to be brought in to begin the transition away from family management.
Does that mean the company will no longer be a family business?
No. Many companies are family owned, but managed by a non-family staff. The family retains ownership, provides oversight for management, and assures that the family objectives and values are maintained.
Process vs. Luck
Luck can be defined as things that can’t be controlled. Sometimes, the results are good – known as good luck. Sometimes bad – that’s right, it’s called bad luck. Either way, luck can play a major role in our sales results.
When was the last time a customer came in to buy and they were someone you neither knew nor had done business with in the past? After a brief discussion they decide they want to buy. This is good luck. (And how many of us go to our Manager and admit that the order is really just good luck?!). Or, sometimes the deal you’ve been working on for what seems like ages, suddenly falls apart with no explanation given. This is bad luck. Hopefully, the good and the bad luck even out through our long and illustrious Sales career. In talking to Sellers, I’m told that approximately 30% of what they generate is a function of good luck – inheriting a good territory, a competitor's screw-up, etc. Nice work if you can get it, indeed.
The vast majority of Sales Managers emphasize results instead of the process. The danger of this can lead to misjudging a Seller’s skill-set. For you golfers, this is the equivalent of hitting a shot dead-right, have it hit off a house, then a 1958 Chevrolet and plop down eight feet from the pin!
I think that Managers and Sellers put too much emphasis on the results and not enough on the process. When Tom Lehman was appointed to Captain the Ryder Cup Team he sought out the legendary John Wooden for advice on how to build a winning team. Wooden’s advice – focus on the process and the results will follow.
When was the last time a customer came in to buy and they were someone you neither knew nor had done business with in the past? After a brief discussion they decide they want to buy. This is good luck. (And how many of us go to our Manager and admit that the order is really just good luck?!). Or, sometimes the deal you’ve been working on for what seems like ages, suddenly falls apart with no explanation given. This is bad luck. Hopefully, the good and the bad luck even out through our long and illustrious Sales career. In talking to Sellers, I’m told that approximately 30% of what they generate is a function of good luck – inheriting a good territory, a competitor's screw-up, etc. Nice work if you can get it, indeed.
The vast majority of Sales Managers emphasize results instead of the process. The danger of this can lead to misjudging a Seller’s skill-set. For you golfers, this is the equivalent of hitting a shot dead-right, have it hit off a house, then a 1958 Chevrolet and plop down eight feet from the pin!
I think that Managers and Sellers put too much emphasis on the results and not enough on the process. When Tom Lehman was appointed to Captain the Ryder Cup Team he sought out the legendary John Wooden for advice on how to build a winning team. Wooden’s advice – focus on the process and the results will follow.
Listen Well and "FOLLOW THE BUYER”
Every Sales Trainer talks about the need to develop listening skills. Many tips are given to accomplish this – focus on the speaker’s lips, repeat what’s being heard, take notes while conversing, etc.
I’ve found that improving listening skills goes hand-in-hand with asking the right questions. We talked about the importance of using “Protocols” – a prepared set of questions. Protocols enable us to focus on what the Buyer is saying. Asking the right question liberates us to listen better.
Many factors go into conversing and truly comprehending what is being said – physical location, nature of the discourse, relationship with the people involved, whether people are happy, sad, or angry, etc. We need to be able to “mental multi-task.” Every time a Buyer says something, we have to make a split-second decision. Do we continue asking the questions we wanted to ask or do we “follow the Buyer,” and ask questions relevant to where the Buyer is taking the discussion? This has to happen at the speed of sound and needs to be smooth and flawless, which can only be done with practice, preferably through video-tape role-play.
When we use Protocols, we “ask and then listen.” When we follow the Buyer, we “listen and then ask.”
I’ve found that improving listening skills goes hand-in-hand with asking the right questions. We talked about the importance of using “Protocols” – a prepared set of questions. Protocols enable us to focus on what the Buyer is saying. Asking the right question liberates us to listen better.
Many factors go into conversing and truly comprehending what is being said – physical location, nature of the discourse, relationship with the people involved, whether people are happy, sad, or angry, etc. We need to be able to “mental multi-task.” Every time a Buyer says something, we have to make a split-second decision. Do we continue asking the questions we wanted to ask or do we “follow the Buyer,” and ask questions relevant to where the Buyer is taking the discussion? This has to happen at the speed of sound and needs to be smooth and flawless, which can only be done with practice, preferably through video-tape role-play.
When we use Protocols, we “ask and then listen.” When we follow the Buyer, we “listen and then ask.”
Empezar el 2012 INNOVANDO
Para conseguir el éxito comercial en la actualidad se tiene que aprender a integrar la innovación en el conjunto de los procesos de la empresa.
Necesitamos un autentico compromiso de la dirección manifestando una clara voluntad de destacar a través de la innovación, de manera que sea entendida sin ninguna ambigüedad por parte de todas las personas de la organización.
La innovación tiene que constituirse como un elemento muy importante en la definición de la estrategia.
Las empresas innovadoras tienen que ser muy generosas en la comunicación.
Se tiene que realizar a través de las personas, más que a través de sistemas.
La mejor integración de la innovación redunda en la eficacia misma.
Necesitamos un autentico compromiso de la dirección manifestando una clara voluntad de destacar a través de la innovación, de manera que sea entendida sin ninguna ambigüedad por parte de todas las personas de la organización.
La innovación tiene que constituirse como un elemento muy importante en la definición de la estrategia.
Las empresas innovadoras tienen que ser muy generosas en la comunicación.
Se tiene que realizar a través de las personas, más que a través de sistemas.
La mejor integración de la innovación redunda en la eficacia misma.
13 consejos para motivar empleados
Es una regla no escrita del management que empleados talentosos y comprometidos con la empresa tienden a ser más productivos. Mercado ofrece 13 consejos para motivar a un staff desganado y mejorar su rendimiento.
Un estudio reciente de la consultora de Recursos Humanos TowerWatson reveló que menos 21% de los empleados se describe a si mismo como “muy motivado”. Las cifras, que no sorprendieron a nadie, son reveladoras: sólo un quinto de la fuerza laboral de cualquier empresa está motivada para trabajar a su mayor capacidad.
La motivación nace de tres factores: un alineamiento del empleado con la visión y los objetivos de la empresa; fe del personal en los ejecutivos a cargo; y la seguridad de que su supervisor va a apoyarlos a lograr el éxito. Cuando estas características están ausentes, los trabajadores de la empresa pierden las ganas de participar activamente de las operaciones diarias. La realidad es que son pocos los que renuncian, lo normal es el desgano.
Hay, sin embargo, maneras de volver a inyectar entusiasmo en los colaboradores. Cuando el capital humano de la empresa se siente comprometido con su lugar de trabajo, los resultados siempre son mejores. Mercado ofrece, entonces, 13 consejos para sacudirlos del letargo.
1) No se enoje.
Hay una frase de Mark Twain que resume esta primera máxima. “Enojarse es fácil, cualquiera puede hacerlo. Lo realmente difícil es enojarse de la manera posible, en las cantidades adecuadas, en el momento correcto”. Básicamente enojarse no es una opción del buen management.
2) No sea distante
Los empleados están atentos a las reacciones y actitudes de sus supervisores directos en tiempos difíciles. Es importante poder medir esas reacciones tratando de no ser fríos, distantes, groseros o poco amigables. Su equipo de trabajo lo juzgará por sus actitudes, no sus intenciones.
3) No dé mensajes poco coherentes.
Sus ordenes siempre tienen que ser simples, orientados hacia un objetivo, en orden prioritario. Demasiados mensajes pueden confundir y alienar a sus empleados.
4) No engañe a su equipo de trabajo.
Este es un consejo para los negocios y también para la vida: no intente convencer a otros de algo en lo que no cree. No los engañe. Esto incluye esconder información o mentirle a su equipo que, generalmente, está bien entrenado en detectar los intentos de manipulación por parte del management.
5) No se muestre preocupado solo por sí mismo.
Demuestre que el éxito propio nace del éxito de su equipo de trabajo.
6) Asuma la responsabilidad de sus actos.
Como el jefe, es importante dar el ejemplo y asumir la responsabilidad por cualquier equivocación es parte del trabajo. Si quiere que otros también la asuman, empiece por casa.
7) No llegue a conclusiones apresuradas
Es importante conocer toda la historia. El punto uno le advierte que es malo enojarse pero llegar a conclusiones apresuradas, sin preguntar cuál ha sido el error, puede ser fatal para el ánimo de los empleados.
8) Cumpla sus promesas
Si promete hacer algo en un tiempo determinado, cumpla su promesa. El mensaje es que la gerencia es responsable y asume sus compromisos. Enseñe con el ejemplo.
9) Sea atento
Como gerente debe considerar a su equipo como un cliente más. Eso significa que debe devolver sus llamadas y mails de manera correcta y a tiempo.
10) Apoye a sus empleados en público
Nada es peor que llamar la atención de su equipo ante un error en público. Es importante mantener estas conversaciones en privado y declarar el apoyo de la empresa públicamente.
11) Admita sus errores
Hágase responsable y asuma las responsabilidades por sus errores.
12) Haga preguntas. Escuche las respuestas.
Peter Drucker es famoso por una frase: “El gerente del futuro sabrá cómo preguntar en vez de saber cómo hacer”. Es importante hacer preguntas y escuchar atentamente la devolución de los empleados.
13) Sonría.
La realidad es que, al final del día, usted pasará una gran parte de su vida en el trabajo. Entonces diviértase y sea genuino. Reírse de uno mismo es la mejor manera de demostrarle a su staff que el jefe es humano, después de todo.
Un estudio reciente de la consultora de Recursos Humanos TowerWatson reveló que menos 21% de los empleados se describe a si mismo como “muy motivado”. Las cifras, que no sorprendieron a nadie, son reveladoras: sólo un quinto de la fuerza laboral de cualquier empresa está motivada para trabajar a su mayor capacidad.
La motivación nace de tres factores: un alineamiento del empleado con la visión y los objetivos de la empresa; fe del personal en los ejecutivos a cargo; y la seguridad de que su supervisor va a apoyarlos a lograr el éxito. Cuando estas características están ausentes, los trabajadores de la empresa pierden las ganas de participar activamente de las operaciones diarias. La realidad es que son pocos los que renuncian, lo normal es el desgano.
Hay, sin embargo, maneras de volver a inyectar entusiasmo en los colaboradores. Cuando el capital humano de la empresa se siente comprometido con su lugar de trabajo, los resultados siempre son mejores. Mercado ofrece, entonces, 13 consejos para sacudirlos del letargo.
1) No se enoje.
Hay una frase de Mark Twain que resume esta primera máxima. “Enojarse es fácil, cualquiera puede hacerlo. Lo realmente difícil es enojarse de la manera posible, en las cantidades adecuadas, en el momento correcto”. Básicamente enojarse no es una opción del buen management.
2) No sea distante
Los empleados están atentos a las reacciones y actitudes de sus supervisores directos en tiempos difíciles. Es importante poder medir esas reacciones tratando de no ser fríos, distantes, groseros o poco amigables. Su equipo de trabajo lo juzgará por sus actitudes, no sus intenciones.
3) No dé mensajes poco coherentes.
Sus ordenes siempre tienen que ser simples, orientados hacia un objetivo, en orden prioritario. Demasiados mensajes pueden confundir y alienar a sus empleados.
4) No engañe a su equipo de trabajo.
Este es un consejo para los negocios y también para la vida: no intente convencer a otros de algo en lo que no cree. No los engañe. Esto incluye esconder información o mentirle a su equipo que, generalmente, está bien entrenado en detectar los intentos de manipulación por parte del management.
5) No se muestre preocupado solo por sí mismo.
Demuestre que el éxito propio nace del éxito de su equipo de trabajo.
6) Asuma la responsabilidad de sus actos.
Como el jefe, es importante dar el ejemplo y asumir la responsabilidad por cualquier equivocación es parte del trabajo. Si quiere que otros también la asuman, empiece por casa.
7) No llegue a conclusiones apresuradas
Es importante conocer toda la historia. El punto uno le advierte que es malo enojarse pero llegar a conclusiones apresuradas, sin preguntar cuál ha sido el error, puede ser fatal para el ánimo de los empleados.
8) Cumpla sus promesas
Si promete hacer algo en un tiempo determinado, cumpla su promesa. El mensaje es que la gerencia es responsable y asume sus compromisos. Enseñe con el ejemplo.
9) Sea atento
Como gerente debe considerar a su equipo como un cliente más. Eso significa que debe devolver sus llamadas y mails de manera correcta y a tiempo.
10) Apoye a sus empleados en público
Nada es peor que llamar la atención de su equipo ante un error en público. Es importante mantener estas conversaciones en privado y declarar el apoyo de la empresa públicamente.
11) Admita sus errores
Hágase responsable y asuma las responsabilidades por sus errores.
12) Haga preguntas. Escuche las respuestas.
Peter Drucker es famoso por una frase: “El gerente del futuro sabrá cómo preguntar en vez de saber cómo hacer”. Es importante hacer preguntas y escuchar atentamente la devolución de los empleados.
13) Sonría.
La realidad es que, al final del día, usted pasará una gran parte de su vida en el trabajo. Entonces diviértase y sea genuino. Reírse de uno mismo es la mejor manera de demostrarle a su staff que el jefe es humano, después de todo.
Small Business Marketing Ideas for Us All
You’ll probably never get enough small business marketing tips since marketing remains the most important part of what your small business does. Here are some ideas you won’t want to be without to make customers take a second look at who you are and what you do.
Tips & Inspiration
20 content marketing ideas. Content marketing is a huge part of online business, but some entrepreneurs may be somewhat intimidated by the idea. If you fall into this category, here are some great ideas to get you started. Small Business Trends
Learning marketing tricks from other businesses. OK, this might not sound like such a revolutionary idea, but, hey, have you ever tried getting some ideas from a business that has little or nothing to do with yours? Maybe you should! Copyblogger
Being Remarkable
The hundred things that make your business special. What makes a Mexican restaurant in Utah so unique it’s worth blogging about? It could be hundreds of little things that make your small business unique. Do you know what they are? Seth Godin’s Blog
Where none have gone before. Sometimes making an impression in your business is as simple as doing something no other business has done before…at least successfully. Check this startup’s stab at unique service. What accomplishment would set your business apart? WSJ
Strategy & Tools
How quality and price impact your market. This round table discussion with entrepreneurs about balancing the right quality with the right price is a great look at how marketing is a part of everything you do. You’re the Boss
There’s a new social media marketing tool in town. While it’s important to choose your battles when it comes to online marketing, new platforms can offer intriguing new possibilities. Here’s a review of one more to explore. E-Marketing Associates
Getting Feedback
Why Twitter’s still a top tool. While you can explore the new and exotic to market your small business, it may also be a good idea not to ignore the old standbys. Here’s a look at why Twitter’s still the best promotional tool for your business. BusinessInfoGuide.com
Marketing to your early adopters. By now, most businesses are aware of the value of early adopters, those people who will try almost anything new, when marketing a new product or service. But there are some things you may want to keep in mind when marketing to this pioneering group. Startup Professionals Musings
More Marketing Ideas
Does your business tell a story? Telling a story may make your product or service more attractive to customers. Here are some simple considerations when it comes to using storytelling in your company’s marketing efforts. Channelship
Tips for better e-mail marketing. E-mail marketing remains a powerful tool and an important method of keeping information about your business in front of potential customers. Here’s another look at doing it right. Sales Tip a Day
Tips & Inspiration
20 content marketing ideas. Content marketing is a huge part of online business, but some entrepreneurs may be somewhat intimidated by the idea. If you fall into this category, here are some great ideas to get you started. Small Business Trends
Learning marketing tricks from other businesses. OK, this might not sound like such a revolutionary idea, but, hey, have you ever tried getting some ideas from a business that has little or nothing to do with yours? Maybe you should! Copyblogger
Being Remarkable
The hundred things that make your business special. What makes a Mexican restaurant in Utah so unique it’s worth blogging about? It could be hundreds of little things that make your small business unique. Do you know what they are? Seth Godin’s Blog
Where none have gone before. Sometimes making an impression in your business is as simple as doing something no other business has done before…at least successfully. Check this startup’s stab at unique service. What accomplishment would set your business apart? WSJ
Strategy & Tools
How quality and price impact your market. This round table discussion with entrepreneurs about balancing the right quality with the right price is a great look at how marketing is a part of everything you do. You’re the Boss
There’s a new social media marketing tool in town. While it’s important to choose your battles when it comes to online marketing, new platforms can offer intriguing new possibilities. Here’s a review of one more to explore. E-Marketing Associates
Getting Feedback
Why Twitter’s still a top tool. While you can explore the new and exotic to market your small business, it may also be a good idea not to ignore the old standbys. Here’s a look at why Twitter’s still the best promotional tool for your business. BusinessInfoGuide.com
Marketing to your early adopters. By now, most businesses are aware of the value of early adopters, those people who will try almost anything new, when marketing a new product or service. But there are some things you may want to keep in mind when marketing to this pioneering group. Startup Professionals Musings
More Marketing Ideas
Does your business tell a story? Telling a story may make your product or service more attractive to customers. Here are some simple considerations when it comes to using storytelling in your company’s marketing efforts. Channelship
Tips for better e-mail marketing. E-mail marketing remains a powerful tool and an important method of keeping information about your business in front of potential customers. Here’s another look at doing it right. Sales Tip a Day
Startups apuestan por diversificar canales de venta
Según se informa en Exame.com, casos como Meu Amigo Pet, ESPM y O Melhor da Vida.
Si bien es común que las grandes empresas diversifiquen sus canales de venta, ahora son las startups que surgen en internet las que están apostando por este sistema.
Según se informa en Exame.com, casos como Meu Amigo Pet, ESPM y O Melhor da Vida, son ejemplos de compañías que están siguiendo esta tendencia. Daniel Nepomuceno, quien comenzó el negocio de Me Amigo Pet, explica que la empresa llevará el concepto de multi-canal para que el cliente pueda tener la misma experiencia online, pero en el ambiente físico.
Jorge Nahas, CEO de O Melhor da Vida dice que la gente notó que el tamaño del mercado de ventas directas llega a ser cinco veces mayor que el online. Actualmente son 250 vendedores directos, en Sao Paulo y en Rio de Janeiro.
Los entendidos aconsejan que es fundamental cuando se quiere explorar otros mercados, preparar el equipo de ventas para conocer y tener contacto personal.
Si bien es común que las grandes empresas diversifiquen sus canales de venta, ahora son las startups que surgen en internet las que están apostando por este sistema.
Según se informa en Exame.com, casos como Meu Amigo Pet, ESPM y O Melhor da Vida, son ejemplos de compañías que están siguiendo esta tendencia. Daniel Nepomuceno, quien comenzó el negocio de Me Amigo Pet, explica que la empresa llevará el concepto de multi-canal para que el cliente pueda tener la misma experiencia online, pero en el ambiente físico.
Jorge Nahas, CEO de O Melhor da Vida dice que la gente notó que el tamaño del mercado de ventas directas llega a ser cinco veces mayor que el online. Actualmente son 250 vendedores directos, en Sao Paulo y en Rio de Janeiro.
Los entendidos aconsejan que es fundamental cuando se quiere explorar otros mercados, preparar el equipo de ventas para conocer y tener contacto personal.
Tres tipos de empleados sin los que la empresa va mejor
La cultura y el ánimo de la empresa dependen mucho del tipo de personalidades que la componen.
Una de las labores de los gerentes y líderes es determinar qué tipos de valores prefieren para su compañía, innovación, efectividad, transparencia. En consecuencia, orientar acciones y personal en pos de estos.
Business Week llama la atención sobre la influencia que tienen los empleados sobre el clima general de la organización, y advierte de determinados tipos de personalidad que pueden desestimular el crecimiento del resto, porque de forma pasivo agresiva bloquean las innovaciones y absorben negativamente la energía creativa. Por tanto se hace mejor al despedirlos.
1. Las víctimas: Es el tipo de persona que ve el trabajo como castigo, y siempre le parece una crueldad del jefe cuando le pide un esfuerzo extra. Es el tipo de empleado que ve un problema insuperable donde alguien más podría ver un reto a vencer. Todos eventualmente asumimos el rol de víctimas, pero para algunos se ha convertido en un estilo de vida. Incluso cuando todos los demás encuentran que las cosas van bien, ellos hallan el motivo para la queja.
2. Los incrédulos: Es el tipo de empleado que desalienta las buenas ideas, porque asume de antemano que el jefe no dejará que se implementen. En general, en temas de innovación y efectividad, se ha visto que la gran diferencia entre los equipos ganadores y los perdedores, es que los ganadores creían que sí podían lograrlo.
3. Los sabelotodo: Son personas parecidas a las incrédulas, pero que basan sus argumentos en un pretendido conocimiento de mecanismos y políticas de la empresa, por las cuales una idea posiblemente no salga adelante. Al igual que los incrédulos, tienen una influencia nociva sobre el proceso creativo.
Una de las labores de los gerentes y líderes es determinar qué tipos de valores prefieren para su compañía, innovación, efectividad, transparencia. En consecuencia, orientar acciones y personal en pos de estos.
Business Week llama la atención sobre la influencia que tienen los empleados sobre el clima general de la organización, y advierte de determinados tipos de personalidad que pueden desestimular el crecimiento del resto, porque de forma pasivo agresiva bloquean las innovaciones y absorben negativamente la energía creativa. Por tanto se hace mejor al despedirlos.
1. Las víctimas: Es el tipo de persona que ve el trabajo como castigo, y siempre le parece una crueldad del jefe cuando le pide un esfuerzo extra. Es el tipo de empleado que ve un problema insuperable donde alguien más podría ver un reto a vencer. Todos eventualmente asumimos el rol de víctimas, pero para algunos se ha convertido en un estilo de vida. Incluso cuando todos los demás encuentran que las cosas van bien, ellos hallan el motivo para la queja.
2. Los incrédulos: Es el tipo de empleado que desalienta las buenas ideas, porque asume de antemano que el jefe no dejará que se implementen. En general, en temas de innovación y efectividad, se ha visto que la gran diferencia entre los equipos ganadores y los perdedores, es que los ganadores creían que sí podían lograrlo.
3. Los sabelotodo: Son personas parecidas a las incrédulas, pero que basan sus argumentos en un pretendido conocimiento de mecanismos y políticas de la empresa, por las cuales una idea posiblemente no salga adelante. Al igual que los incrédulos, tienen una influencia nociva sobre el proceso creativo.
7 Steps to Incredible Personal Productivity
Practical advice to turn an average workday into an incredibly productive day.
Occasionally you need to go the extra mile. Sometimes you need to complete a major project, tackle a task you’ve put off, or just knock out a ton of work in one day.
Here’s the best way to turn a normal workday into an incredibly productive workday:
1. Let everyone know. Interruptions destroy focus and kill productivity. So are the guilt trips your family "sometimes unintentionally" lay on you. Let coworkers and family know you’re planning a “project day.” Tell key customers too. Announce you will be tied up on, say, Tuesday, and that you will respond to calls and emails on Thursday. Let people know who to contact in an emergency. Some will get with you before Tuesday, and the rest will make a mental note you’re not available. In either case, you’re covered.
Plus you get the “peer pressure” benefit: When you tell people you plan to finish a project you will be more likely to see the job through. Peer pressure can be positive motivation harness it.
2. Set a target. Don’t plan your project day based on fuzzy parameters like, “I will stay at it as long as possible,” or, “I won’t leave until I no longer feel productive.” Those approaches give you an easy out. Commit to working for as long as you estimate it will take. Pick a number.
There’s a cool benefit to this approach too: The longer the time frame you set the quicker the early hours seem to go by. When I worked in manufacturing we normally worked eight-hour shifts. The hours before lunch seemed endless; the last two hours of the day were even worse. During busy periods we worked twelve hour shifts and the mornings seemed to fly by something about knowing you will be working for a long time allows you to stop checking the clock. When you know you’re in for a long haul your mind automatically adapts. Try it, it works.
3. Start unusually early or unusually late. When you step outside your norm, your perspective of time shifts as well. Start at 5 a.m. or revisit your college days and start at 6 p.m. and work through the night. Set the stage for an unusually productive day by dramatically changing your normal routine.
4. Delay gratification. Say you like to listen to music while you work. Don’t, at least for the first couple of hours. That way, when your enthusiasm really starts to wane, turning on the music will perk you back up. Hold off on whatever things you use to brighten up your workday, at least for a while. Delayed gratification is always better gratification, and in this case can provide just the spark you need to keep going.
5. Refuel and recharge before you need to. When endurance athletes wait until they are thirsty to drink they’ve waited too long. The same premise applies at work. Have a snack a little earlier than normal. Start drinking water right immediately. If you normally sit, stand up before you start to feel stiff or cramped. If you normally stand, sit before your back stiffens or your legs ache. Be proactive so discomfort can’t dampen your motivation or weaken your resolve.
And make sure you plan meals wisely. Don’t take an hour for lunch. Plan food ahead of time that you can prepare and eat quickly. The goal is to refuel, re-hydrate, and keep on rolling. Remember, this is an unusual day treat it that way.
6. Don’t take rest breaks. Take productivity breaks. Newton’s Law of Productivity states that a productive person in motion tends to stay in motion. Maintaining momentum is everything. Don’t take a TV or Internet break. Take breaks that reinforce your sense of activity and accomplishment. Take a quick walk and think about what you’re tackling next. Then jump back in. Even a few minutes spent in the land of inactivity make it hard to regain momentum.
7. Don’t stop until it’s done. Stopping simply because you’re tired or bored is habit-forming. (Plus you’re always capable of doing more than you think.) If the only barrier to completion is effort or motivation, stay at it and bust through that barrier.
Think about your normal workday; at some point you typically think, “That’s it. That’s all I have in me today.” That limit was set long ago, but it’s an artificial limit based on habit. Pushing through the “pain” is a habit anyone can develop, and when you do, you automatically set your effort limit a little higher making you capable of even more on a regular basis.
Occasionally you need to go the extra mile. Sometimes you need to complete a major project, tackle a task you’ve put off, or just knock out a ton of work in one day.
Here’s the best way to turn a normal workday into an incredibly productive workday:
1. Let everyone know. Interruptions destroy focus and kill productivity. So are the guilt trips your family "sometimes unintentionally" lay on you. Let coworkers and family know you’re planning a “project day.” Tell key customers too. Announce you will be tied up on, say, Tuesday, and that you will respond to calls and emails on Thursday. Let people know who to contact in an emergency. Some will get with you before Tuesday, and the rest will make a mental note you’re not available. In either case, you’re covered.
Plus you get the “peer pressure” benefit: When you tell people you plan to finish a project you will be more likely to see the job through. Peer pressure can be positive motivation harness it.
2. Set a target. Don’t plan your project day based on fuzzy parameters like, “I will stay at it as long as possible,” or, “I won’t leave until I no longer feel productive.” Those approaches give you an easy out. Commit to working for as long as you estimate it will take. Pick a number.
There’s a cool benefit to this approach too: The longer the time frame you set the quicker the early hours seem to go by. When I worked in manufacturing we normally worked eight-hour shifts. The hours before lunch seemed endless; the last two hours of the day were even worse. During busy periods we worked twelve hour shifts and the mornings seemed to fly by something about knowing you will be working for a long time allows you to stop checking the clock. When you know you’re in for a long haul your mind automatically adapts. Try it, it works.
3. Start unusually early or unusually late. When you step outside your norm, your perspective of time shifts as well. Start at 5 a.m. or revisit your college days and start at 6 p.m. and work through the night. Set the stage for an unusually productive day by dramatically changing your normal routine.
4. Delay gratification. Say you like to listen to music while you work. Don’t, at least for the first couple of hours. That way, when your enthusiasm really starts to wane, turning on the music will perk you back up. Hold off on whatever things you use to brighten up your workday, at least for a while. Delayed gratification is always better gratification, and in this case can provide just the spark you need to keep going.
5. Refuel and recharge before you need to. When endurance athletes wait until they are thirsty to drink they’ve waited too long. The same premise applies at work. Have a snack a little earlier than normal. Start drinking water right immediately. If you normally sit, stand up before you start to feel stiff or cramped. If you normally stand, sit before your back stiffens or your legs ache. Be proactive so discomfort can’t dampen your motivation or weaken your resolve.
And make sure you plan meals wisely. Don’t take an hour for lunch. Plan food ahead of time that you can prepare and eat quickly. The goal is to refuel, re-hydrate, and keep on rolling. Remember, this is an unusual day treat it that way.
6. Don’t take rest breaks. Take productivity breaks. Newton’s Law of Productivity states that a productive person in motion tends to stay in motion. Maintaining momentum is everything. Don’t take a TV or Internet break. Take breaks that reinforce your sense of activity and accomplishment. Take a quick walk and think about what you’re tackling next. Then jump back in. Even a few minutes spent in the land of inactivity make it hard to regain momentum.
7. Don’t stop until it’s done. Stopping simply because you’re tired or bored is habit-forming. (Plus you’re always capable of doing more than you think.) If the only barrier to completion is effort or motivation, stay at it and bust through that barrier.
Think about your normal workday; at some point you typically think, “That’s it. That’s all I have in me today.” That limit was set long ago, but it’s an artificial limit based on habit. Pushing through the “pain” is a habit anyone can develop, and when you do, you automatically set your effort limit a little higher making you capable of even more on a regular basis.
jueves, 29 de diciembre de 2011
10 Resolute Ideas To Start Your New Year
Put the punch back in your purpose.
There is power in the perspective that comes from revisiting why you exist as a business and exploring the beliefs and operating values you live by. While the bottom line is a non-negotiable, how you get to it is. Make sure your entire organization understands your reason for being and that leading with values is what will make the journey one to be proud of beyond the dollars and cents. Can everyone answer what difference are you making in people's lives, why you exist, and what you believe in as a brand?
Start your own love fest.
Fed up reading stories about Zappos being the best company on the planet for customer service and culture, Southwest for their brilliant simplicity, or TOMS for their generosity? Don't use them as examples. Use them as incredible inspiration to light a fire in your brand's soul. Get under the hood of your brand, dig for where it intersects with the passion points in your consumers’ lives and the reasons people come to work every day. Find your internal and external champions and explore how they are deployed.
Unleash your inner pirates.
Complacency comes from comfort and following all the rules. Every company has their mavericks, non-conformists, and brilliant ones who don't ever agree with the status quo. These people challenge convention and stand out because they think differently from the rest. Instead of treating them with mild curiosity or leaving them on the sidelines, actively seek them out and recruit them into your own renegade army of pirates to tackle the most complex challenges you have as a brand.
Wake up stupid every day.
Get up every morning with the attitude that you don't have any of the answers and that you need to look at every major challenge through a fresh lens. Make sure you surround yourself with a group of people who are smarter than you are, are in-the-know and have the answers in the subject areas that matter to your brand. Be a sponge for knowledge and have your finger on the pulse of, and process for, feeding relevant trends and consumer insights into your teams for action.
Talk to the people who matter.
Get out of your all day internal meetings and get into the lives of your customers. They will inspire and inform you. They can become cocreators and collaborators in helping you unlock the answers to what is next for your brand. Design effective and efficient ways to participate in their lives and observe their behavior. And, more specifically, challenge your research partners to deliver the most illustrative ways to connect with them.
Inspire and challenge your people.
If you operate on the premise that you should work hard and play hard, your team should have very clear, result-oriented goals for the year as well as a calendar of events and inputs that inspire and educate them to think differently.
Share the plan and charge the hill.
Make sure your team has a clear idea of the company's plans for the year, knows where it's going and why. Challenge them to play their part in achieving it, and celebrate the small victories and successes on the way.
The world’s a stage. Tell your story.
Like a great joke that is told poorly, if your brand's story is uninteresting and unclear, people will ignore it. The brand's narrative needs to be clear, compelling, and memorable both internally and externally. Most brands have an external advertising program but often ignore internal storytelling. Step back and look at who you're delivering your brand's story to. Make sure the story is interesting, entertaining, and engaging. It's also worth stepping back and looking at how your own story is being told. Do the people who you work with know what makes you tick?
Say no to boring.
No more boring meetings, no more boring people, no more boring initiatives. Inject energy, education, and a sense of urgency into everything you and your team does.
Cut the crap.
Every company operates with layers of unnecessary waste. Whether it's people, process, projects, costs, or time spent on the unimportant. Look for the unnecessary and superfluous and remove the inefficiencies.
There is power in the perspective that comes from revisiting why you exist as a business and exploring the beliefs and operating values you live by. While the bottom line is a non-negotiable, how you get to it is. Make sure your entire organization understands your reason for being and that leading with values is what will make the journey one to be proud of beyond the dollars and cents. Can everyone answer what difference are you making in people's lives, why you exist, and what you believe in as a brand?
Start your own love fest.
Fed up reading stories about Zappos being the best company on the planet for customer service and culture, Southwest for their brilliant simplicity, or TOMS for their generosity? Don't use them as examples. Use them as incredible inspiration to light a fire in your brand's soul. Get under the hood of your brand, dig for where it intersects with the passion points in your consumers’ lives and the reasons people come to work every day. Find your internal and external champions and explore how they are deployed.
Unleash your inner pirates.
Complacency comes from comfort and following all the rules. Every company has their mavericks, non-conformists, and brilliant ones who don't ever agree with the status quo. These people challenge convention and stand out because they think differently from the rest. Instead of treating them with mild curiosity or leaving them on the sidelines, actively seek them out and recruit them into your own renegade army of pirates to tackle the most complex challenges you have as a brand.
Wake up stupid every day.
Get up every morning with the attitude that you don't have any of the answers and that you need to look at every major challenge through a fresh lens. Make sure you surround yourself with a group of people who are smarter than you are, are in-the-know and have the answers in the subject areas that matter to your brand. Be a sponge for knowledge and have your finger on the pulse of, and process for, feeding relevant trends and consumer insights into your teams for action.
Talk to the people who matter.
Get out of your all day internal meetings and get into the lives of your customers. They will inspire and inform you. They can become cocreators and collaborators in helping you unlock the answers to what is next for your brand. Design effective and efficient ways to participate in their lives and observe their behavior. And, more specifically, challenge your research partners to deliver the most illustrative ways to connect with them.
Inspire and challenge your people.
If you operate on the premise that you should work hard and play hard, your team should have very clear, result-oriented goals for the year as well as a calendar of events and inputs that inspire and educate them to think differently.
Share the plan and charge the hill.
Make sure your team has a clear idea of the company's plans for the year, knows where it's going and why. Challenge them to play their part in achieving it, and celebrate the small victories and successes on the way.
The world’s a stage. Tell your story.
Like a great joke that is told poorly, if your brand's story is uninteresting and unclear, people will ignore it. The brand's narrative needs to be clear, compelling, and memorable both internally and externally. Most brands have an external advertising program but often ignore internal storytelling. Step back and look at who you're delivering your brand's story to. Make sure the story is interesting, entertaining, and engaging. It's also worth stepping back and looking at how your own story is being told. Do the people who you work with know what makes you tick?
Say no to boring.
No more boring meetings, no more boring people, no more boring initiatives. Inject energy, education, and a sense of urgency into everything you and your team does.
Cut the crap.
Every company operates with layers of unnecessary waste. Whether it's people, process, projects, costs, or time spent on the unimportant. Look for the unnecessary and superfluous and remove the inefficiencies.
The Wise and Foolish Business Builders: How to Start a Business Right
Looks good but fragile
Entrepreneurs: Are you the wise or foolish business builders? Will your business be successful in the future? The answer might lies in the Bible verses below:
The Wise and Foolish Builders
“Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on sand. The rain came down, the streams rose, and the winds blew and beat against that house, and it fell with a great crash.” – Matthew 7:24-27 NIV
The verses above actually talks about how Christians should build their life upon; the verses talk about obedience – you should practice the Words of Gods, or else you will be an empty (foolish) Christian who knows the Words but don’t practice them in your daily life.
I’m far from perfect… thus I try to learn about everything – how I live my life and how I do business – based on the Words of Gods. Without Him, I am nothing but a fool, literally.
In term of business, the particular verses – Matthew 7:24-27 – talks about how to start your business.
It’s only make sense: If your foundation is strong, the building above will withstand harsh conditions; if your foundation is weak, the building above – no matter how perfect it is, it will “fell with a great crash.” If you start with the right “foundation” you will likely to achieve success; if not, you will end up having business issues in the future (even if today your business seems to run well…)
I see doing business like a racing or running event. In such event, starting a business requires a good start. You start wrong, you will need to clean up the mess, pick up the pieces, and go on.
Just like a good athlete – especially in running events, you want to prepare in such a way that you can start your business well. Running athletes work hard in practices for years to prepare themselves to be able to start well and run the race well. A couple of milliseconds late, you will end up losing the race.
If you are driving a race car, a perfect start requires you to rev your car engine to certain RPM in such a way that when the light turns green, you can accelerate well and reach your race car’s optimal speed as quickly as possible.
How to start a business on the right foundation
From the examples above, I do have some tips to help you start your business with the right foundation…
1. You need to have the right mindset
Do you trust your God? If so, follow His lead and just trust Him. In general, you need the right mindset to get you where you want to be.
For example, if you want to establish a new franchise unit, you need to know that opening a franchise unit is different with starting a business; franchising requires you to follow your franchisor’s rules (limited freedom, to be honest,) whereas starting your own business depends on your intuition and your past experience.
2. You need to have the right reason to start a business
You also need to know your reason in starting a business; do you want to get rich quick? Do you want to secure your financial future? Do you want to solve a particular social issue?
You need a solid business plan and you need to revise and refine it along the way of your entrepreneurial journey. You and I might start a business with some wrong reasons, but we can fix things along the way.
I started my webpreneurial journey with the wrong reasons, and along the way, the truth reveals and through trials and tribulations, I start to be able to discover the real reasons, and in doing so, my business starts to grow well beyond my expectations.
3. Well-prepare your business startup phase
I started my business without proper preparations – I just go out and do it. This might work for others, but not to many, including me.
I conclude that, somehow, you need to plan your startup well and do your due diligence: Do your research, prepare your business funding, consult with your local city council about licenses, etc. Sure, there are some who stuck at planning stage – so be sure you take action; otherwise, why you prepare a plan in the first place?
4. Start a business with the highest ethical standard
Last but not least: Regardless of your reasons in starting a business, you need to start with the highest ethical standards.
Doing unfair business practices and dirty tricks, that may involves tricking your business partners, doing illegal business activities, or “selling your soul to the devil,” is like building a house on sand; you will eventually fell with a great crash.
Are you a wise or foolish entrepreneur?
I was a foolish entrepreneur; I’m still a fool in some ways, but I keep on learning from my mistakes. I want to be a wise entrepreneur, and I hope you want to be one, too… otherwise, why do you pursue entrepreneurship path, anyway?
So, who are you? Are you a wise or foolish entrepreneur? If you acknowledge that you are somehow a fool (sorry!) – do you want to do what it takes to be a wise entrepreneur? If so, understand this: The price to pay is expensive, but the reward is abundant. Get ready.
Calcar fórmulas de éxito
Cuando un aparatito tecnológico tiene éxito encontramos a “hermanos” suyos hasta en la sopa, cuando en una tienda un determinado producto se vende como rosquillas, las demás tiendas adoptan a parecidos de éste como setas, y cuando en el cine una determinada película triunfa nos pasamos años y años viendo en el cine distintas películas que tienen el mismo común denominador, el mismo patrón, ¿no sería mejor innovar que calcar las fórmulas de éxito de los demás?
Sí y no, esa es la respuesta pragmática (que no en la que yo creo) a la cuestión anterior, es decir, sí que por una parte parece mucho más atractivo, interesante, incentivador e incluso potencialmente rentable el crear cosas distintas, el innovar, que no el calcar o ir a rueda de los demás. Pero evidentemente y por la otra parte, todo ello es mucho más arriesgado que intentar sacar el jugo a lo que otros han realizado.
Entonces y dividiendo el tema entre lo que es y lo que yo pienso. Si por una parte, nos centramos en lo que es realmente rentable y lo que nos dará resultados a más corto plazo, obviamente el intentar extenuar a la vaca lechera que funciona creando más y más clones de ella, será una opción segura. Ahora bien, segura a corto plazo y con poco recorrido, pero segura para un objetivo determinado eso sí.
Pero por la otra parte nos encontramos a la opción arriesgada (que es en la que creo) y posiblemente perdedora, pero que de ganar será la auténticamente ganadora en la máxima extensión de la palabra. Y esta no es otra opción que la de crear nosotros la realidad, el marco y ser nosotros a quien nos sigan. Obviamente eso no será siempre posible, e incluso no será siempre negativo que mientras nosotros creamos la realidad, que sigamos a otras realidades. Pero sí que es necesario que sea cual sea el caso, tengamos la mentalidad de aquel que manda y no de aquel al que le mandan o que se lleva las migajas.
Sí y no, esa es la respuesta pragmática (que no en la que yo creo) a la cuestión anterior, es decir, sí que por una parte parece mucho más atractivo, interesante, incentivador e incluso potencialmente rentable el crear cosas distintas, el innovar, que no el calcar o ir a rueda de los demás. Pero evidentemente y por la otra parte, todo ello es mucho más arriesgado que intentar sacar el jugo a lo que otros han realizado.
Entonces y dividiendo el tema entre lo que es y lo que yo pienso. Si por una parte, nos centramos en lo que es realmente rentable y lo que nos dará resultados a más corto plazo, obviamente el intentar extenuar a la vaca lechera que funciona creando más y más clones de ella, será una opción segura. Ahora bien, segura a corto plazo y con poco recorrido, pero segura para un objetivo determinado eso sí.
Pero por la otra parte nos encontramos a la opción arriesgada (que es en la que creo) y posiblemente perdedora, pero que de ganar será la auténticamente ganadora en la máxima extensión de la palabra. Y esta no es otra opción que la de crear nosotros la realidad, el marco y ser nosotros a quien nos sigan. Obviamente eso no será siempre posible, e incluso no será siempre negativo que mientras nosotros creamos la realidad, que sigamos a otras realidades. Pero sí que es necesario que sea cual sea el caso, tengamos la mentalidad de aquel que manda y no de aquel al que le mandan o que se lleva las migajas.
How Do You Define Customer Value?
Business owners sound off about determining customer value.
Figuring out which customers are valuable in the beginning can save a lot of trouble and cost.
The Atlantic’s Megan McArdle recently discussed our article, “It’s Cheaper to Keep ‘Em”, which generated a number of interesting comments. One reader, “SPQR9,” wrote: With respect to the idea that there are customers that you just don’t want, that can definitely be true in the legal profession. Figuring out who those customers are in the beginning can save a lot of trouble and cost.
We would definitely agree with that statement. Often our clients find that prospective customers give a number of clues (e.g., the products and solutions they buy, their demographic characteristics) as to how valuable they will be over time. By unsentimentally reading those clues, a business can focus its energy on gaining valuable customers. The business can also look for opportunities (e.g., in pricing, product/service bundling or operating model) to make marginal customers more attractive before taking them on-board.
Another reader, “Chris365,” commented: There are some customers that are too costly to serve, and sometimes they can be even frequent or large customers. It’s not uncommon for a large customer to be the least profitable.
In our experience as well, the largest customers may be the least profitable; however they may still be very valuable. Often the large customer may serve as an “anchor” to the business by creating the scale or customer drawing power essential to business value. For instance, the shopping mall’s anchor tenants, often the large department stores, typically pay little or no rent, but drive shopper traffic levels that more than compensate the mall owner, who as a result can charge high rents for the smaller mall shops.
Reader “willallen2” wrote: I once made a [sales] pitch to a bald, tattooed guy, who was about 6 foot 4 inches, 230 pounds, holding a tire iron, and there wasn’t a tire in sight. Yeah, business had been slow.
Willallen2 is much braver than we are! In the movie Jerry Maguire, Dicky Fox declares, “Unless you love everybody, you can’t sell anybody.” Kudos to willallen2 for showing the love!
Here are other articles we have written recently on the value of customer relationships:
In How to Hook a Life-time Customer we discuss how to find a long-term value proposition that works for both you and your customer.
In 4 Steps to Super-size Your Growth we discuss the value of paring back your non-core customers and products as a stepping stone to growth, and ask the questions: If you were forced to eliminate the bottom 20 percent of your customers, what resources would that free up? Where else would you invest in the business to make up the lost revenue?
In a three-part series (The Hidden Costs of Customer Attrition, What’s Driving Your Customers Away?, 5 Ways to Improve Customer Retention), we explore the case of a recent telecom client who faced high attrition rates. We discuss the key attrition drivers in their business and talk about their path forward to better serve and please their valuable customers and to improve retention.
Figuring out which customers are valuable in the beginning can save a lot of trouble and cost.
The Atlantic’s Megan McArdle recently discussed our article, “It’s Cheaper to Keep ‘Em”, which generated a number of interesting comments. One reader, “SPQR9,” wrote: With respect to the idea that there are customers that you just don’t want, that can definitely be true in the legal profession. Figuring out who those customers are in the beginning can save a lot of trouble and cost.
We would definitely agree with that statement. Often our clients find that prospective customers give a number of clues (e.g., the products and solutions they buy, their demographic characteristics) as to how valuable they will be over time. By unsentimentally reading those clues, a business can focus its energy on gaining valuable customers. The business can also look for opportunities (e.g., in pricing, product/service bundling or operating model) to make marginal customers more attractive before taking them on-board.
Another reader, “Chris365,” commented: There are some customers that are too costly to serve, and sometimes they can be even frequent or large customers. It’s not uncommon for a large customer to be the least profitable.
In our experience as well, the largest customers may be the least profitable; however they may still be very valuable. Often the large customer may serve as an “anchor” to the business by creating the scale or customer drawing power essential to business value. For instance, the shopping mall’s anchor tenants, often the large department stores, typically pay little or no rent, but drive shopper traffic levels that more than compensate the mall owner, who as a result can charge high rents for the smaller mall shops.
Reader “willallen2” wrote: I once made a [sales] pitch to a bald, tattooed guy, who was about 6 foot 4 inches, 230 pounds, holding a tire iron, and there wasn’t a tire in sight. Yeah, business had been slow.
Willallen2 is much braver than we are! In the movie Jerry Maguire, Dicky Fox declares, “Unless you love everybody, you can’t sell anybody.” Kudos to willallen2 for showing the love!
Here are other articles we have written recently on the value of customer relationships:
In How to Hook a Life-time Customer we discuss how to find a long-term value proposition that works for both you and your customer.
In 4 Steps to Super-size Your Growth we discuss the value of paring back your non-core customers and products as a stepping stone to growth, and ask the questions: If you were forced to eliminate the bottom 20 percent of your customers, what resources would that free up? Where else would you invest in the business to make up the lost revenue?
In a three-part series (The Hidden Costs of Customer Attrition, What’s Driving Your Customers Away?, 5 Ways to Improve Customer Retention), we explore the case of a recent telecom client who faced high attrition rates. We discuss the key attrition drivers in their business and talk about their path forward to better serve and please their valuable customers and to improve retention.
How to Test Your Marketing: 5 Tips from YouSendIt
YouSendIt shows how testing your marketing, offers, and pricing can radically improve your business results. Five tips on making it work for you.
Freemium company YouSendIt is known for its service that sends files too large to move through email. More recently, it’s pushed into other service areas such as storing and synching files among a user’s different computers and providing digital signatures, to expand its offerings.
But most people don’t realize the amount of effort that YouSendIt puts into testing offers and pricing. Why? Because the results help make the marketing more effective and increase the revenue of the company. What it has learned about testing marketing can help you too.
1. Always test
Telling a company to test its marketing might seem obvious, but many entrepreneurs don’t, or they fail to do the level of testing they should. That’s too bad, because what you learn through testing can radically improve your results and bottom line.
According to vice president of product and business strategy Brian Curry, YouSendIt has learned to improve its business remarkably through testing. The expansion beyond sending large files is a great example. Those who use the additional tools are 75 percent more active on the site than the average customer.
“If we look at last year when we didn’t have [the additional services] in place, the number of engagement events or touches on the service was about an average of 4,” Curry says. For the group trying the new services, the average is about 7. “If I can get them to use the new things other than just send, I get a much higher degree of engagement.”
That’s still access to free services, but look deeper as YouSendIt does and you see that every contact is another chance to potentially interest the customer in a paid subscription. And the conversion rate to paid customer increased by 40 percent.
2. Critical points of interaction
It’s not enough to know that people are experiencing your marketing (for freemium companies, providing the free services is how they market). You also should know how they behave differently over time.
YouSendIt is particularly interested in retention rates—how long customers keep using the site. The longer they use it, the more they use it, and that means additional opportunities to convert free customers into people who pay.
The critical window for the company is 60 days. That’s the point at which there is significant churn in the freemium customers. Lose the customer at that point and you’ve lost a chance to gain a paid subscription. The additional services have increased retention rates by 20 percent.
Even if there wasn’t an immediate lift in customer conversion, for YouSendIt, increasing retention could be enough to cost-justify the additional services. The specifics are probably different for your company, but look enough and you’ll see the critical points and aspects of your customers’ interactions.
3. Find the right discount
To assume that you can only attract customers through discounts is to turn your business into a commodity provider, lowering your margins and increasing your cost of acquiring customers. As YouSendIt did, you might learn that discounting to attract a customer might become less necessary.
“Our other thesis was as we add more value, we have permission to not necessarily raise our price point, but achieve the same growth we were achieving before but without discounting,” Curry says. It turned out that the discount they offered was more than necessary with the new services. “We’re discounting less often and we’re discounting less when we do.” Without testing, the company never would have known.
4. Segment customers
For a similar reason, YouSendIt now offers trials of the premium services to many more users. Part of the marketing process is seeing how to best group these people. The company will see how long someone has used its services at all and examine any possible clues for the vertical industry a given person might be in.
Some segments can have a higher correlation with different marketing programs. Those who have been using YouSendIt for longer often respond most favorably to a higher promotional discounts. Learn to separate people into appropriate groups by experimentation and you can find how to make your marketing more efficient.
5. Don’t over-test
Testing is important, but “just because you can test everything doesn’t mean you should,” Curry says. “It can really slow you down.”
Instead, start with a hypothesis—maybe it’s that customers are more likely to buy product B after they already own product A—and then get data from the offers to come to a conclusion. Also, don’t make wholesale changes across the board. Make tests too complicated, and you might find it difficult to come to conclusions.
The more effectively you begin to test your marketing, the greater success your business will see.
Freemium company YouSendIt is known for its service that sends files too large to move through email. More recently, it’s pushed into other service areas such as storing and synching files among a user’s different computers and providing digital signatures, to expand its offerings.
But most people don’t realize the amount of effort that YouSendIt puts into testing offers and pricing. Why? Because the results help make the marketing more effective and increase the revenue of the company. What it has learned about testing marketing can help you too.
1. Always test
Telling a company to test its marketing might seem obvious, but many entrepreneurs don’t, or they fail to do the level of testing they should. That’s too bad, because what you learn through testing can radically improve your results and bottom line.
According to vice president of product and business strategy Brian Curry, YouSendIt has learned to improve its business remarkably through testing. The expansion beyond sending large files is a great example. Those who use the additional tools are 75 percent more active on the site than the average customer.
“If we look at last year when we didn’t have [the additional services] in place, the number of engagement events or touches on the service was about an average of 4,” Curry says. For the group trying the new services, the average is about 7. “If I can get them to use the new things other than just send, I get a much higher degree of engagement.”
That’s still access to free services, but look deeper as YouSendIt does and you see that every contact is another chance to potentially interest the customer in a paid subscription. And the conversion rate to paid customer increased by 40 percent.
2. Critical points of interaction
It’s not enough to know that people are experiencing your marketing (for freemium companies, providing the free services is how they market). You also should know how they behave differently over time.
YouSendIt is particularly interested in retention rates—how long customers keep using the site. The longer they use it, the more they use it, and that means additional opportunities to convert free customers into people who pay.
The critical window for the company is 60 days. That’s the point at which there is significant churn in the freemium customers. Lose the customer at that point and you’ve lost a chance to gain a paid subscription. The additional services have increased retention rates by 20 percent.
Even if there wasn’t an immediate lift in customer conversion, for YouSendIt, increasing retention could be enough to cost-justify the additional services. The specifics are probably different for your company, but look enough and you’ll see the critical points and aspects of your customers’ interactions.
3. Find the right discount
To assume that you can only attract customers through discounts is to turn your business into a commodity provider, lowering your margins and increasing your cost of acquiring customers. As YouSendIt did, you might learn that discounting to attract a customer might become less necessary.
“Our other thesis was as we add more value, we have permission to not necessarily raise our price point, but achieve the same growth we were achieving before but without discounting,” Curry says. It turned out that the discount they offered was more than necessary with the new services. “We’re discounting less often and we’re discounting less when we do.” Without testing, the company never would have known.
4. Segment customers
For a similar reason, YouSendIt now offers trials of the premium services to many more users. Part of the marketing process is seeing how to best group these people. The company will see how long someone has used its services at all and examine any possible clues for the vertical industry a given person might be in.
Some segments can have a higher correlation with different marketing programs. Those who have been using YouSendIt for longer often respond most favorably to a higher promotional discounts. Learn to separate people into appropriate groups by experimentation and you can find how to make your marketing more efficient.
5. Don’t over-test
Testing is important, but “just because you can test everything doesn’t mean you should,” Curry says. “It can really slow you down.”
Instead, start with a hypothesis—maybe it’s that customers are more likely to buy product B after they already own product A—and then get data from the offers to come to a conclusion. Also, don’t make wholesale changes across the board. Make tests too complicated, and you might find it difficult to come to conclusions.
The more effectively you begin to test your marketing, the greater success your business will see.
Four Rules to Build Your Blog Readership
What role does a blog play in your organization’s web presence? While your website may take the formal, straight-laced, good-foot-forward posture, a blog usually plays it more casual. A website provides a one-way communication link “squawking the corporate line," a blog can draw the reader into the conversation. People can read the blog postings and make their comments. They can also read what others are saying.
Building a company blog requires much planning and many steps. You must decide what blogging platform to use, what type of content to post, who will post it, how often items are posted, and who exactly you are trying to reach. You should develop a clear, concise, compelling, timely, relevant and well-written style. You should decide if calls to action are out of place or not.
And consistency is key. This isn't a project you can abandon after a few months. If you want keep visitors coming back to the well, you must offer new insights, fresh materials, and new announcements. Develop an editorial schedule whereby a small group of people shares in the blogging activity.
Finally, you launch. But now you face the question that has stymied webmasters and blog creators alike since the 1990s: You have built it—now will they come?
Here are four ways you can build your blog readership. Like blogging itself, some will take work and consistency but you'll see results in your traffic.
Email Reminders and Newsletters
One way to encourage return visits is an email reminder. You can add an opt-in form to your site so people can sign up to receive an e-mail every time a new post is published or a weekly email listing all the prior week’s blog posts. This is an unintimidating way to build a readership base. By signing up for the e-mail, people do not have to continuously come back to your blog to see what’s been written. If you send out regular email newsletters, you should also consider linking to popular blog entries from it. It's just one more way to spread the word.
RSS Feed
Another tried-and-true way to help people subscribe to your blog is an RSS feed. RSS (Really Simple Syndication) is just that: A really simple way to syndicate your content. Readers enter the URL of your feed into a feed reader like Google Reader, and every time you update your site, they can access either a headline and short description of the content or the full post. You can even serve ads in a feed. It’s one of the coolest ways to pass information along to your blog subscribers.
Make sure you include an RSS feed icon on your site, preferably close to your other "share" buttons (more on that below). But, this "simple" syndication service has actually gotten very sophisticated. Today, many blog providers like WordPress and Tumblr automatically offer RSS feeds and all users have to do is plug your URL in a reader to subscribe.
The benefit for your readers is that when subscribing to a feed, they receive the information they desire, automatically downloaded to a browser, without having to check each site individually.
Sharing Tools
Sharing tools abound on the internet. Add to Any (www.addtoany.com) and ShareThis (www.sharethis.com) offer buttons you can easily publish on your site (with specific codes for WordPress, Drupal, Tublr, Blogger and other blogging platforms).
They allow you and your visitors to quickly share your posts with a number of social networking sites and community sites where people are trolling for news items. In addition to typical social networks like Twitter and Facebook, you can add crowd-sourced news aggregators like StumbleUpon, Delicious, Reddit, Technorati and Digg, as well as offer an “email this” function.
While you can and should take a few extra seconds to share each of your blog entries each time you publish to communities where people are looking for information on that topic, the ultimate goal is to write such intriguing blog entries that your readers will share them as well. In link-sharing communities like Reddit, it's more legitimate and authenticate for a fan to share than the owner or author of a site.
Updating All Your Communities at Once
There are also sites that you log in to so that you can update several of your social networking communities at once, like Ping.fm and Hootsuite.com. Let’s say you belong to a half dozen social networking communities. These free services allow you to easily update all your networks at once with a link to your latest blog post--which you should do every time. Some allow you to schedule posts in advance, which can be helpful during busy times or when you're out of town. Note that while you can post to all of them at once, you may not always want to post the same message. For example, if you have to truncate your Twitter message to 140 characters, spell out all of your words on Facebook. It's more professional.
Building a company blog requires much planning and many steps. You must decide what blogging platform to use, what type of content to post, who will post it, how often items are posted, and who exactly you are trying to reach. You should develop a clear, concise, compelling, timely, relevant and well-written style. You should decide if calls to action are out of place or not.
And consistency is key. This isn't a project you can abandon after a few months. If you want keep visitors coming back to the well, you must offer new insights, fresh materials, and new announcements. Develop an editorial schedule whereby a small group of people shares in the blogging activity.
Finally, you launch. But now you face the question that has stymied webmasters and blog creators alike since the 1990s: You have built it—now will they come?
Here are four ways you can build your blog readership. Like blogging itself, some will take work and consistency but you'll see results in your traffic.
Email Reminders and Newsletters
One way to encourage return visits is an email reminder. You can add an opt-in form to your site so people can sign up to receive an e-mail every time a new post is published or a weekly email listing all the prior week’s blog posts. This is an unintimidating way to build a readership base. By signing up for the e-mail, people do not have to continuously come back to your blog to see what’s been written. If you send out regular email newsletters, you should also consider linking to popular blog entries from it. It's just one more way to spread the word.
RSS Feed
Another tried-and-true way to help people subscribe to your blog is an RSS feed. RSS (Really Simple Syndication) is just that: A really simple way to syndicate your content. Readers enter the URL of your feed into a feed reader like Google Reader, and every time you update your site, they can access either a headline and short description of the content or the full post. You can even serve ads in a feed. It’s one of the coolest ways to pass information along to your blog subscribers.
Make sure you include an RSS feed icon on your site, preferably close to your other "share" buttons (more on that below). But, this "simple" syndication service has actually gotten very sophisticated. Today, many blog providers like WordPress and Tumblr automatically offer RSS feeds and all users have to do is plug your URL in a reader to subscribe.
The benefit for your readers is that when subscribing to a feed, they receive the information they desire, automatically downloaded to a browser, without having to check each site individually.
Sharing Tools
Sharing tools abound on the internet. Add to Any (www.addtoany.com) and ShareThis (www.sharethis.com) offer buttons you can easily publish on your site (with specific codes for WordPress, Drupal, Tublr, Blogger and other blogging platforms).
They allow you and your visitors to quickly share your posts with a number of social networking sites and community sites where people are trolling for news items. In addition to typical social networks like Twitter and Facebook, you can add crowd-sourced news aggregators like StumbleUpon, Delicious, Reddit, Technorati and Digg, as well as offer an “email this” function.
While you can and should take a few extra seconds to share each of your blog entries each time you publish to communities where people are looking for information on that topic, the ultimate goal is to write such intriguing blog entries that your readers will share them as well. In link-sharing communities like Reddit, it's more legitimate and authenticate for a fan to share than the owner or author of a site.
Updating All Your Communities at Once
There are also sites that you log in to so that you can update several of your social networking communities at once, like Ping.fm and Hootsuite.com. Let’s say you belong to a half dozen social networking communities. These free services allow you to easily update all your networks at once with a link to your latest blog post--which you should do every time. Some allow you to schedule posts in advance, which can be helpful during busy times or when you're out of town. Note that while you can post to all of them at once, you may not always want to post the same message. For example, if you have to truncate your Twitter message to 140 characters, spell out all of your words on Facebook. It's more professional.
Crucial Keys to Business Success in 2012
Dave Lavinsky's company has helped its clients raise more than one billion dollars to help start, grow, and exit their businesses. Here's his advice.
Entering into a new year inspires hope and high expectations for positive change in many entrepreneurs. But by the end of first quarter, at best, this optimism typically falls short. The business owner remains overwhelmed with immediate tasks and problems, no different from the preceding years. It's a cycle that holds true for too many aspiring millionaires, but not one that can't be broken. If you've been doing the same things year after year, expecting different results, it's time to try a new business-planning approach. Start this New Year by stepping away from the insanity and into a plan that works.
"Too many business owners focus solely on their profit-and-loss statements," says Dave Lavinsky, co-founder of Growthink. Since 1999 Growthink has helped its clients raise more than one billion dollars in funding to grow their businesses. "It's critical to focus more on the business assets," Lavinsky says. "What's going to allow you to expand your reach and grow your company?" he asks.
To develop and execute a business plan that will work for you in this New Year, Lavinsky, who an internationally renowned expert in the fields of business planning, capital raising, and new venture development, suggests focusing on assets like your client base, new employees, systems, and partnerships. "Putting your attention purely on profits can take you off track. More profits are nice, but more clients can be leveraged for significant future growth," he says. Focusing on deliverables is certainly important, but planning and execution is what will grow your client base, thus your company.
Lavinsky cites the following elements as key points in an effective business plan if that plan is intended as a blueprint to grow your business. He reminds us that if you aim to use your business plan to attract investors, there are many other financial pieces that you need to include. Make sure to visit GrowThink to learn more about those.
Mission Statement: Lavinsky notes that most businesses either don't have a mission statement or they make it so general that it has no meaning. Think about what you're trying to achieve and include that big vision in your mission statement. Take a look at Growthink's mission statement as a great model.
SWOT Analysis: a comprehensive SWOT analysis (assessing company strengths, weaknesses, market opportunities and market threats) is critical to assess your opportunities, generate ideas and focus on which to go after.
Marketing Strategies: Take a good look at your current marketing strategies. In Lavinsky's experience, most entrepreneurs use only one channel to market their business. "Dig deeper and use different strategies," he says. "Do you use only radio advertising? Spread out your marketing dollars and include things like direct mail, pay per click, print advertising, and other marketing resources rather than just one avenue." Lavinsky suggests that you try a new channel each month and by the end of the year you will have another valuable business asset: proven knowledge of which marketing tactics work and those that don't.
Company Goals" Set goals for a five-year target point. What income level do you plan on achieving in that time? Will you sell the company, remain at the helm, or go public? Plot your course, and then break down your goals and strategies into a one-year plan. Which opportunities are best to execute this year in order to achieve your five year goals?
Business Asset Goals: Formulate projections on customer count, employee count, training, new equipment and other expenditures, like a new facility or office expansion. Be prepared for growth.
Key Performance Indicators: Most entrepreneurs don't track things like visitors to their website, customers in the store, the percentage of sales in the store vs. the website, upsell percentages, number of sales, sales closed, proposals issued, etc. It's crucial to keep detailed metrics so that you can analyze problems. Don't simply look at those top line figures in your P&L, study your KPIs as well. For instance, if your team didn't upsell enough, it may be time to create new sales scripts. For example, if your website isn't converting enough sales, it's time to explore a different conversion tactic.
When determining what to include in your KPI details, Lavinsky recommends that you ask yourself these two simple questions: Of my top five direct competitors, which one would I purchase if I could? Then, what would I want to know to determine the best buy? So, for instance, would you purchase the company with the highest sales conversion rate, best Web stats, perhaps the most stable customer base? Now create a tracking method for those key factors, which are apparently very important to you.
Target Audience: Define your customer in detail to maximize your marketing efforts. "Create your customer avatar," says Lavinsky. "Explore what is important to them, the real reasons they do what they do, and their key problems." Also include demographics such as gender, age, race, geographic location.
With your customer avatar well defined, you can find publications, radio shows, blogs and other well-targeted means to reach out to your customer. You can speak to them more effectively and achieve a much higher conversion rate. Be as specific as possible. Remember the 80/20 rule; 20 percent of customers represent 80 percent of profit. Who is your 20 percent?
Getting too niche? Lavinsky would ask you if you'd rather be a sardine in the ocean or a whale in a pond. "Niche down," he says, "and own your market. Once you do this you can grow into other markets." Also remember that you will still be serving people outside of your niche, it isn't as limiting as you may believe. Lavinsky reminds us that it is easier to start small and expand later.
Facebook is a great example of this is. It started at Harvard, and then expanded to other ivy leagues and eventually into the general populace.
Competitive Analysis: Lavinsky stresses the importance of being prepared for the inevitable—competitive challenges. "Take a good look at your competition and define what steps they could take that would really frighten you. Imagine the worst case scenario and ask yourself if you could deal with it or if your business would be massively hampered," he says. The next step is to determine what you could do under your current circumstances to pre-empt it. "Make the assumption that they’re really good at strategy and that they do smart things," suggests Lavinsky. "Then make contingency plans."
If your competition acquires another company as a part of their growth strategy, for instance, what can you do now to control the impact of such a move? Again, selecting a well-defined niche and becoming known as the best provider in that industry would help to mitigate that risk.
Define your team: "Even solopreneurs should have a team," Lavinsky says. "Don't try to do it all on your own." Consider your virtual assistants and other outside contractors, or employees if you have them. Where do you want them to be one year from now? What skills will they have developed? What training or mentoring is necessary to get them there? Is there anyone who’s not working out? Who do need to grow your company? How can you get those resources in place?
Operations Plan: Finally, Lavinsky cites the importance of an operations plan. Looking at your five-year plan and what you want to accomplish, define your marketing strategies, any additional services or products to offer, and all of your key initiatives for the year. Lavinsky suggests creating a Gantt chart, so that you have a visual for each project.
Entering into a new year inspires hope and high expectations for positive change in many entrepreneurs. But by the end of first quarter, at best, this optimism typically falls short. The business owner remains overwhelmed with immediate tasks and problems, no different from the preceding years. It's a cycle that holds true for too many aspiring millionaires, but not one that can't be broken. If you've been doing the same things year after year, expecting different results, it's time to try a new business-planning approach. Start this New Year by stepping away from the insanity and into a plan that works.
"Too many business owners focus solely on their profit-and-loss statements," says Dave Lavinsky, co-founder of Growthink. Since 1999 Growthink has helped its clients raise more than one billion dollars in funding to grow their businesses. "It's critical to focus more on the business assets," Lavinsky says. "What's going to allow you to expand your reach and grow your company?" he asks.
To develop and execute a business plan that will work for you in this New Year, Lavinsky, who an internationally renowned expert in the fields of business planning, capital raising, and new venture development, suggests focusing on assets like your client base, new employees, systems, and partnerships. "Putting your attention purely on profits can take you off track. More profits are nice, but more clients can be leveraged for significant future growth," he says. Focusing on deliverables is certainly important, but planning and execution is what will grow your client base, thus your company.
Lavinsky cites the following elements as key points in an effective business plan if that plan is intended as a blueprint to grow your business. He reminds us that if you aim to use your business plan to attract investors, there are many other financial pieces that you need to include. Make sure to visit GrowThink to learn more about those.
Mission Statement: Lavinsky notes that most businesses either don't have a mission statement or they make it so general that it has no meaning. Think about what you're trying to achieve and include that big vision in your mission statement. Take a look at Growthink's mission statement as a great model.
SWOT Analysis: a comprehensive SWOT analysis (assessing company strengths, weaknesses, market opportunities and market threats) is critical to assess your opportunities, generate ideas and focus on which to go after.
Marketing Strategies: Take a good look at your current marketing strategies. In Lavinsky's experience, most entrepreneurs use only one channel to market their business. "Dig deeper and use different strategies," he says. "Do you use only radio advertising? Spread out your marketing dollars and include things like direct mail, pay per click, print advertising, and other marketing resources rather than just one avenue." Lavinsky suggests that you try a new channel each month and by the end of the year you will have another valuable business asset: proven knowledge of which marketing tactics work and those that don't.
Company Goals" Set goals for a five-year target point. What income level do you plan on achieving in that time? Will you sell the company, remain at the helm, or go public? Plot your course, and then break down your goals and strategies into a one-year plan. Which opportunities are best to execute this year in order to achieve your five year goals?
Business Asset Goals: Formulate projections on customer count, employee count, training, new equipment and other expenditures, like a new facility or office expansion. Be prepared for growth.
Key Performance Indicators: Most entrepreneurs don't track things like visitors to their website, customers in the store, the percentage of sales in the store vs. the website, upsell percentages, number of sales, sales closed, proposals issued, etc. It's crucial to keep detailed metrics so that you can analyze problems. Don't simply look at those top line figures in your P&L, study your KPIs as well. For instance, if your team didn't upsell enough, it may be time to create new sales scripts. For example, if your website isn't converting enough sales, it's time to explore a different conversion tactic.
When determining what to include in your KPI details, Lavinsky recommends that you ask yourself these two simple questions: Of my top five direct competitors, which one would I purchase if I could? Then, what would I want to know to determine the best buy? So, for instance, would you purchase the company with the highest sales conversion rate, best Web stats, perhaps the most stable customer base? Now create a tracking method for those key factors, which are apparently very important to you.
Target Audience: Define your customer in detail to maximize your marketing efforts. "Create your customer avatar," says Lavinsky. "Explore what is important to them, the real reasons they do what they do, and their key problems." Also include demographics such as gender, age, race, geographic location.
With your customer avatar well defined, you can find publications, radio shows, blogs and other well-targeted means to reach out to your customer. You can speak to them more effectively and achieve a much higher conversion rate. Be as specific as possible. Remember the 80/20 rule; 20 percent of customers represent 80 percent of profit. Who is your 20 percent?
Getting too niche? Lavinsky would ask you if you'd rather be a sardine in the ocean or a whale in a pond. "Niche down," he says, "and own your market. Once you do this you can grow into other markets." Also remember that you will still be serving people outside of your niche, it isn't as limiting as you may believe. Lavinsky reminds us that it is easier to start small and expand later.
Facebook is a great example of this is. It started at Harvard, and then expanded to other ivy leagues and eventually into the general populace.
Competitive Analysis: Lavinsky stresses the importance of being prepared for the inevitable—competitive challenges. "Take a good look at your competition and define what steps they could take that would really frighten you. Imagine the worst case scenario and ask yourself if you could deal with it or if your business would be massively hampered," he says. The next step is to determine what you could do under your current circumstances to pre-empt it. "Make the assumption that they’re really good at strategy and that they do smart things," suggests Lavinsky. "Then make contingency plans."
If your competition acquires another company as a part of their growth strategy, for instance, what can you do now to control the impact of such a move? Again, selecting a well-defined niche and becoming known as the best provider in that industry would help to mitigate that risk.
Define your team: "Even solopreneurs should have a team," Lavinsky says. "Don't try to do it all on your own." Consider your virtual assistants and other outside contractors, or employees if you have them. Where do you want them to be one year from now? What skills will they have developed? What training or mentoring is necessary to get them there? Is there anyone who’s not working out? Who do need to grow your company? How can you get those resources in place?
Operations Plan: Finally, Lavinsky cites the importance of an operations plan. Looking at your five-year plan and what you want to accomplish, define your marketing strategies, any additional services or products to offer, and all of your key initiatives for the year. Lavinsky suggests creating a Gantt chart, so that you have a visual for each project.
Three Ways to Keep Your Customers Coming Back
One of the most common mistakes small-business owners make is to focus so much time on attracting new customers that they skimp on the effort it takes to create loyal customers. That's a mistake, of course, because it's more expensive to get new customers than to retain them. To develop and nurture a relationship with your customers, you have to communicate regularly and, above all, provide consistently over-the-top service.
Here's a look at how three small businesses are keeping the customers they worked so hard to attract:
1. Make a personal connection.
The Betty Brigade, an Ann Arbor, Mich.-based design firm founded in 2003, keeps track of important dates in its clients' lives and reaches out to mark each occasion by using Benchmarkemail.com, a low-cost online service. Through the service, company owner Sharon McRill can send automatic emails to some 400 customers at any time, whether it's to wish them a happy birthday, congratulate an anniversary or simply thank them for their loyalty. The service offers templates for the emails, and McRill just provides the email address and the client's name. "This keeps our company in the customers' minds in a positive way," she says.
Why it works: Everyone wants to feel special. "People have a basic human need to be acknowledged and recognized," says Kevin Stirtz, Minneapolis, Minn. based business consultant, who runs a website focused on customer service. He says these specific types of personalized emails show customers you care -- even when you're not trying to sell them something.
2. Be transparent.
What better way to ensure you'll be happy with a product than watching the creators build it in real time? KMGI, a New York-based producer of TV-style ads for the Web, almost doubled its business from existing clients in 2011 by allowing them to monitor the ad design work in real time. The 74-employee company allows customers to see which project tasks are completed, and gauge the cost for the day, week, and month. Company owner Alex Konanykhin says the process helps create transparency and trust -- two key ingredients for retaining customers. Clients also stopped calling the company to ask about the status of their projects. "Their calls used to eat much of our time," he says.
Why it works: Customers want to feel involved with the whole project, not just the beginning and end. "One of the big issues a customer has is that there's too much away time — too much time where the customer feels they don't know what's going on," Stirtz says. Allowing customers to offer feedback on your project or product throughout the process enables you to catch and resolve problems early on.
3. Customize mobile deals.
Dan Epstein turned to technology to keep customers coming back to Eppie's, his restaurant in Charlottesville, Va. He uses Cardagin, a mobile loyalty and customer retention program, to send special offers to customers on their smartphones and reward them with loyalty points. The program fee is $100 per month. Say you have customers who are daily visitors to your store, but they haven't been in for a few days? Epstein can send a personalized deal to woo them back, like a special on their favorite product or a free item upon returning. "Smartphones are so powerful these days that we didn't even consider something like a paper punch card," says Epstein, who opened the restaurant in 2006 and now has 15 people on staff. "Going mobile sets us apart, and helps us keep our customers engaged."
Why it works: "What I really like about that is they're not just sending out a blasted, mass message," Stirtz says. "Knowing the customer's order by heart and using that knowledge to your advantage is smart." Sending a customized deal also shows you're invested in the client and that you know what your customer wants.
Here's a look at how three small businesses are keeping the customers they worked so hard to attract:
1. Make a personal connection.
The Betty Brigade, an Ann Arbor, Mich.-based design firm founded in 2003, keeps track of important dates in its clients' lives and reaches out to mark each occasion by using Benchmarkemail.com, a low-cost online service. Through the service, company owner Sharon McRill can send automatic emails to some 400 customers at any time, whether it's to wish them a happy birthday, congratulate an anniversary or simply thank them for their loyalty. The service offers templates for the emails, and McRill just provides the email address and the client's name. "This keeps our company in the customers' minds in a positive way," she says.
Why it works: Everyone wants to feel special. "People have a basic human need to be acknowledged and recognized," says Kevin Stirtz, Minneapolis, Minn. based business consultant, who runs a website focused on customer service. He says these specific types of personalized emails show customers you care -- even when you're not trying to sell them something.
2. Be transparent.
What better way to ensure you'll be happy with a product than watching the creators build it in real time? KMGI, a New York-based producer of TV-style ads for the Web, almost doubled its business from existing clients in 2011 by allowing them to monitor the ad design work in real time. The 74-employee company allows customers to see which project tasks are completed, and gauge the cost for the day, week, and month. Company owner Alex Konanykhin says the process helps create transparency and trust -- two key ingredients for retaining customers. Clients also stopped calling the company to ask about the status of their projects. "Their calls used to eat much of our time," he says.
Why it works: Customers want to feel involved with the whole project, not just the beginning and end. "One of the big issues a customer has is that there's too much away time — too much time where the customer feels they don't know what's going on," Stirtz says. Allowing customers to offer feedback on your project or product throughout the process enables you to catch and resolve problems early on.
3. Customize mobile deals.
Dan Epstein turned to technology to keep customers coming back to Eppie's, his restaurant in Charlottesville, Va. He uses Cardagin, a mobile loyalty and customer retention program, to send special offers to customers on their smartphones and reward them with loyalty points. The program fee is $100 per month. Say you have customers who are daily visitors to your store, but they haven't been in for a few days? Epstein can send a personalized deal to woo them back, like a special on their favorite product or a free item upon returning. "Smartphones are so powerful these days that we didn't even consider something like a paper punch card," says Epstein, who opened the restaurant in 2006 and now has 15 people on staff. "Going mobile sets us apart, and helps us keep our customers engaged."
Why it works: "What I really like about that is they're not just sending out a blasted, mass message," Stirtz says. "Knowing the customer's order by heart and using that knowledge to your advantage is smart." Sending a customized deal also shows you're invested in the client and that you know what your customer wants.
How to Silence Negative Employees
To turn a failing company into a breakout success, you'll need to inspire positive, creative thinking from your team.
When your company is failing you may get only one chance to turn it around. In this five-part series of articles, I’ll show you how to execute a successful turnaround, using a hypothetical company with no specific product or service. Last week, I advised that you provide the employees with a 24-hour deadline to return a view of their job and the organizations top three objectives from their perspective. Employees that fail to complete the survey after 24 hours for no good reason should be fired. This exercise was meant to help you root out dead-weight employees.
Day Two (24 hours)
Assign everyone the same task as day one except ask them to describe what they think their job and the company’s goals should be. Victims of fate have a hard time here and will likely draft a book about what is wrong with the company and not complete the task you assigned. You do not have time for victims and their fate should be the same as their apathetic co-workers.
The results of the second survey are tallied and provide the “gap” between what the employees think they are doing and what they believe they should be doing. You will find some gems in this exercise.
Hold a meeting with everyone. Tell them the rules of the meeting. You have reviewed the results and combined them with your own observations. The meeting is not a historical look or forum to air their grievances but the first step in the company’s recovery. You will facilitate this meeting and insure that time limits are in place but you require full participation. This team and these ideas are the first step in building the new company.
Begin to present the good ideas and objectives from the day two list, include some of your own. Allow for discussion and healthy debate. Do not allow for sniping. If someone says “that won’t work” or something to that affect then ask them why. If they give a lame excuse or just reiterate that it won’t work then ask them to be specific. Do not stop your pursuit until you are satisfied that they are correct or you have made an example. You needn’t send them packing but what you can do is stop the meeting and say; “listen, we do not have time to be victims here. There may be valid reasons why something won’t work. If you have a valid concern, ask yourself if the suggestion can be modified to work?” Then proceed down your list.
Once you have identified good objectives then go back over the list of objectives everyone can support. When doing this add to each one, “great idea” and give credit to the person that presented it in the first place. Do not pat yourself on the back for your ideas and do not point out those that failed to have an idea that survived the cut.
When your company is failing you may get only one chance to turn it around. In this five-part series of articles, I’ll show you how to execute a successful turnaround, using a hypothetical company with no specific product or service. Last week, I advised that you provide the employees with a 24-hour deadline to return a view of their job and the organizations top three objectives from their perspective. Employees that fail to complete the survey after 24 hours for no good reason should be fired. This exercise was meant to help you root out dead-weight employees.
Day Two (24 hours)
Assign everyone the same task as day one except ask them to describe what they think their job and the company’s goals should be. Victims of fate have a hard time here and will likely draft a book about what is wrong with the company and not complete the task you assigned. You do not have time for victims and their fate should be the same as their apathetic co-workers.
The results of the second survey are tallied and provide the “gap” between what the employees think they are doing and what they believe they should be doing. You will find some gems in this exercise.
Hold a meeting with everyone. Tell them the rules of the meeting. You have reviewed the results and combined them with your own observations. The meeting is not a historical look or forum to air their grievances but the first step in the company’s recovery. You will facilitate this meeting and insure that time limits are in place but you require full participation. This team and these ideas are the first step in building the new company.
Begin to present the good ideas and objectives from the day two list, include some of your own. Allow for discussion and healthy debate. Do not allow for sniping. If someone says “that won’t work” or something to that affect then ask them why. If they give a lame excuse or just reiterate that it won’t work then ask them to be specific. Do not stop your pursuit until you are satisfied that they are correct or you have made an example. You needn’t send them packing but what you can do is stop the meeting and say; “listen, we do not have time to be victims here. There may be valid reasons why something won’t work. If you have a valid concern, ask yourself if the suggestion can be modified to work?” Then proceed down your list.
Once you have identified good objectives then go back over the list of objectives everyone can support. When doing this add to each one, “great idea” and give credit to the person that presented it in the first place. Do not pat yourself on the back for your ideas and do not point out those that failed to have an idea that survived the cut.
miércoles, 28 de diciembre de 2011
5 Small Business Lessons to Get you Ready for 2012
As a business owner, I’ve seen the ups and downs of my business this year; nothing special – it’s just business as usual. That being said, I learned a lot – both via first-hand experience and from my mentors.
Learn from 2011, focus on 2012
Here are 5 small business lessons I learned throughout 2011 that can get you and me ready for 2012:
1. Be lean and mean – implement the 80/20 rule
With all the pressure of the lackluster economic situation, us entrepreneurs – both online and off line – need to use all the creativity we have to improve the profitability of our businesses. One of the ways is by being lean and mean.
I run multiple websites, and throughout 2011, I have only managed to add several new web businesses – mostly blogs – and have sold – even simply threw away some websites I have – to keep my costs down and free my time to take on the most important; indeed, I am practicing Pareto’s law (or the infamous 80/20 rule.)
I “remove” 80 percent of my web properties to focus on the top 20 percent, to free 80 percent of resources to take on new, more lucrative business opportunities.
The above results in a much leaner business, focusing on the “cash cows” and high-potential websites, instead of mingling with the never ending work of website management.
I also focus on bringing more business functions to the cloud in 2012. With cloud apps and services available today, I want to stop relying on my on-premise devices and equipment so that I can truly work whenever, wherever I want.
2. Develop win-win partnership
Throughout 2011, I’ve just discovered that forming a mutually beneficial partnership is truly the way to go. I used to outsource only; I never really partner with anyone. That has changed early this year and throughout 2011, such partnership has boosted my business profits by a whopping 100 percent – all thanks to my business partners.
Blogs-wise, partnering with guest authors has proven to be effective and efficient in growing my blog sites as a business; guest authors get exposure, I get quality content – something that is highly valued today (with the Google Panda updates and such…)
I see non-monetary partnership works the best as both have motives beyond money; link exchanges, service exchanges, etc. – ever bartering services (i.e. I build you site, you give me ad spots) are effective in delivering results in the most cost-effective ways.
3. Challenge the “norm”
Best practices are great, but at times, challenges the “normal” ways to do business prove to be game changing. Even more, you need to challenge your own “norms” in doing business. Those are essential in navigating your business to the right direction, instead of insisting on doing what you think is right.
Doing things differently doesn’t mean that you need to reinvent the wheel. Challenging the norms mean that you need to do creative things that can bring the best out of you, instead of following rules, rules and rules – like those preached by Seth Godin, Malcolm Gladwell, Tim Ferriss and other revolutionary people.
4. Do things right – give back
As a business, you need to somehow get involved in non-profit activities. Yes, doing so and let others know will get your business noticed, but that’s just the tip of the iceberg. What’s more important is that as a business owner – either online or off line – you have the responsibility to give back
You see, you are more fortunate than most and although you claim that all the credit should go to your way, you need to realize that your success is not because of you alone; your clients, employees, local chamber of commerce, etc. are the real stakeholders of your business; your business is no good without them, don’t you think?
Somehow, doing so, your entrepreneurial journey would be more meaningful; just ask Bill Gates:
“We can make market forces work better for the poor if we can develop a more creative capitalism.”
We might not have access to resources like Bill Gates, but we can do what we can to make a difference – even in our making money endeavours.
5. Don’t sweat the small stuffs
If you are working at home like I do, here’s one great advice from Business on Main’s article, Business Lessons Learned in 2011:
“I’ve learned this year not to take on too much work. I have an 18-month-old little boy who is taking up a lot of what used to be my ‘work from home’ time. Rather than stressing about all the stuff that’s not getting done, this year I made it a priority to try and ignore the small stuff, understanding that, if left alone, none of these non-actions would cause the company to go down the drain anyway.”
- Adam Koos, Libertas Wealth Management Group
Amen to that – I also have little kids and I work at home… so, that advice is a spot-on! In 2011, I’m always easily bothered by the small stuffs not done right. To me, doing things wrong in those small stuffs would disrupt my business. But as I, again, trying to implement the 80/20 rule I mentioned above on No.1, I start to see that those small stuffs won’t even do anything to my business.
Learn from 2011, focus on 2012
Here are 5 small business lessons I learned throughout 2011 that can get you and me ready for 2012:
1. Be lean and mean – implement the 80/20 rule
With all the pressure of the lackluster economic situation, us entrepreneurs – both online and off line – need to use all the creativity we have to improve the profitability of our businesses. One of the ways is by being lean and mean.
I run multiple websites, and throughout 2011, I have only managed to add several new web businesses – mostly blogs – and have sold – even simply threw away some websites I have – to keep my costs down and free my time to take on the most important; indeed, I am practicing Pareto’s law (or the infamous 80/20 rule.)
I “remove” 80 percent of my web properties to focus on the top 20 percent, to free 80 percent of resources to take on new, more lucrative business opportunities.
The above results in a much leaner business, focusing on the “cash cows” and high-potential websites, instead of mingling with the never ending work of website management.
I also focus on bringing more business functions to the cloud in 2012. With cloud apps and services available today, I want to stop relying on my on-premise devices and equipment so that I can truly work whenever, wherever I want.
2. Develop win-win partnership
Throughout 2011, I’ve just discovered that forming a mutually beneficial partnership is truly the way to go. I used to outsource only; I never really partner with anyone. That has changed early this year and throughout 2011, such partnership has boosted my business profits by a whopping 100 percent – all thanks to my business partners.
Blogs-wise, partnering with guest authors has proven to be effective and efficient in growing my blog sites as a business; guest authors get exposure, I get quality content – something that is highly valued today (with the Google Panda updates and such…)
I see non-monetary partnership works the best as both have motives beyond money; link exchanges, service exchanges, etc. – ever bartering services (i.e. I build you site, you give me ad spots) are effective in delivering results in the most cost-effective ways.
3. Challenge the “norm”
Best practices are great, but at times, challenges the “normal” ways to do business prove to be game changing. Even more, you need to challenge your own “norms” in doing business. Those are essential in navigating your business to the right direction, instead of insisting on doing what you think is right.
Doing things differently doesn’t mean that you need to reinvent the wheel. Challenging the norms mean that you need to do creative things that can bring the best out of you, instead of following rules, rules and rules – like those preached by Seth Godin, Malcolm Gladwell, Tim Ferriss and other revolutionary people.
4. Do things right – give back
As a business, you need to somehow get involved in non-profit activities. Yes, doing so and let others know will get your business noticed, but that’s just the tip of the iceberg. What’s more important is that as a business owner – either online or off line – you have the responsibility to give back
You see, you are more fortunate than most and although you claim that all the credit should go to your way, you need to realize that your success is not because of you alone; your clients, employees, local chamber of commerce, etc. are the real stakeholders of your business; your business is no good without them, don’t you think?
Somehow, doing so, your entrepreneurial journey would be more meaningful; just ask Bill Gates:
“We can make market forces work better for the poor if we can develop a more creative capitalism.”
We might not have access to resources like Bill Gates, but we can do what we can to make a difference – even in our making money endeavours.
5. Don’t sweat the small stuffs
If you are working at home like I do, here’s one great advice from Business on Main’s article, Business Lessons Learned in 2011:
“I’ve learned this year not to take on too much work. I have an 18-month-old little boy who is taking up a lot of what used to be my ‘work from home’ time. Rather than stressing about all the stuff that’s not getting done, this year I made it a priority to try and ignore the small stuff, understanding that, if left alone, none of these non-actions would cause the company to go down the drain anyway.”
- Adam Koos, Libertas Wealth Management Group
Amen to that – I also have little kids and I work at home… so, that advice is a spot-on! In 2011, I’m always easily bothered by the small stuffs not done right. To me, doing things wrong in those small stuffs would disrupt my business. But as I, again, trying to implement the 80/20 rule I mentioned above on No.1, I start to see that those small stuffs won’t even do anything to my business.
10 Tips to Kick-start Your Sales Skills
After creating her fashion jewelry line KiraKira in 2006, Suzanne Somersall Allis knew her year of design school and dual degree in English and art history hadn't prepared her to run her own business. What she needed was real-world sales experience. So Allis created her own sales apprenticeship, juggling three part-time retail jobs for a year.
"Working at the stores helped me understand how much money people were willing to spend," says Allis, 28. "I started to learn the psychology of people who buy my product."
Today, KiraKira is sold in 15 stores around the country, and last month, Allis opened her first storefront at the Dekalb Market in Brooklyn, N.Y. With the recent addition of a luxury line called Suz Somersall, her sales rose to $400,000 this year from $150,000 in 2010.
For entrepreneurs like Allis, learning the ins and outs of selling is a major, but manageable, challenge. To start boosting your sales skills, consider these 10 tips:
Find your comfort level. Getting comfortable with selling is a key first step for any entrepreneur, says Matthew Schwartz, author of Fundamentals of Sales Management for the Newly Appointed Sales Manager (AMACOM, 2006). To gain the inside knowledge and confidence you need, you could work temporarily for a similar business as Allis did, seek guidance from a mentor or coach, or enroll in a sales class.
Define your target audience. Identifying a specific customer target will help you refine your selling strategy and be more efficient. Let's say your company sells photocopying machines. Is your target audience small retailers? Corporate offices? Schools? "People fail often times because they try to be all things to all people," Schwartz says. "You have to segment your selling efforts."
Study customer buying habits. Once you've identified your audience, pay close attention to customer behavior. For example, if you're selling a high-priced item, you'll observe that customers often take longer to make a decision. That means you should plan to spend more time closing the deal. When Allis sold jewelry similar to her own at the boutiques where she worked, she soon noticed that her prices were too low. "I initially charged a lot less and realized that customers were starting to question the quality of the product," she says.
Fawn over your first customers. When you start out, Schwartz says, you should do everything possible to please your first customers, even if it means not making as much money from sales as you'd like. Those first customers will help create your company's reputation. "You are going to need testimonials," Schwartz says. "It means so much to have those references early on."
Take time to build relationships. One of the biggest mistakes entrepreneurs make is failing to build relationships with customers, says Rick Segel, author of Retail Business Kit for Dummies (Wiley, 2001). "The first thing you are selling is yourself. If they don't like you, the sale is not going to happen." Allis makes a point of sending personalized emails to buyers rather than a standardized message. She also devotes plenty of face time to customers by hosting trunk shows and working the counter at her Brooklyn storefront.
Stay on the radar. Once you've established rapport with customers, find ways to stay top-of-mind with them, such as through regular newsletters about your business. When Allis is running a sale or hosting events, she updates her blog, her website's events page and her company's Facebook page. "Facebook drives so much traffic to my site," she says.
Don't make assumptions. Too often, small-business owners sabotage their sales by assuming they know what customers need or are willing to pay, says Keith Rosen, author of Coaching Salespeople into Sales Champions (Wiley, 2008). Instead, try to ask customers as many questions as possible to learn what's driving their purchase and what criteria they're using to make their decision.
Establish a daily ritual. It's easy to neglect sales prospecting when you're wearing all the hats in your company. To avoid that pitfall, create a sales routine. That might mean reserving an hour each day for prospecting calls or setting a weekly goal of meeting at least 10 potential clients. "A defined daily routine is non-negotiable," says Rosen.
Showcase your success. Your website is often the first and only contact people will have with your company. Not only should it be clean and professional looking, but it also should help build credibility. Schwartz recommends including testimonials, along with case studies of clients you've worked with. "People love case studies," he says. "They're not buying talk, they are buying [your] actions."
Become an industry expert. Establishing yourself as a leader in your field will strengthen your sales pitch and attract new customers, Rosen says. You can write articles, start a blog or seek media exposure, all of which can build credibility and trust. Earlier this month, for example, Allis talked about jewelry trends on Martha Stewart Living Radio. "People want to see you as someone who understands the industry," Schwartz says.
"Working at the stores helped me understand how much money people were willing to spend," says Allis, 28. "I started to learn the psychology of people who buy my product."
Today, KiraKira is sold in 15 stores around the country, and last month, Allis opened her first storefront at the Dekalb Market in Brooklyn, N.Y. With the recent addition of a luxury line called Suz Somersall, her sales rose to $400,000 this year from $150,000 in 2010.
For entrepreneurs like Allis, learning the ins and outs of selling is a major, but manageable, challenge. To start boosting your sales skills, consider these 10 tips:
Find your comfort level. Getting comfortable with selling is a key first step for any entrepreneur, says Matthew Schwartz, author of Fundamentals of Sales Management for the Newly Appointed Sales Manager (AMACOM, 2006). To gain the inside knowledge and confidence you need, you could work temporarily for a similar business as Allis did, seek guidance from a mentor or coach, or enroll in a sales class.
Define your target audience. Identifying a specific customer target will help you refine your selling strategy and be more efficient. Let's say your company sells photocopying machines. Is your target audience small retailers? Corporate offices? Schools? "People fail often times because they try to be all things to all people," Schwartz says. "You have to segment your selling efforts."
Study customer buying habits. Once you've identified your audience, pay close attention to customer behavior. For example, if you're selling a high-priced item, you'll observe that customers often take longer to make a decision. That means you should plan to spend more time closing the deal. When Allis sold jewelry similar to her own at the boutiques where she worked, she soon noticed that her prices were too low. "I initially charged a lot less and realized that customers were starting to question the quality of the product," she says.
Fawn over your first customers. When you start out, Schwartz says, you should do everything possible to please your first customers, even if it means not making as much money from sales as you'd like. Those first customers will help create your company's reputation. "You are going to need testimonials," Schwartz says. "It means so much to have those references early on."
Take time to build relationships. One of the biggest mistakes entrepreneurs make is failing to build relationships with customers, says Rick Segel, author of Retail Business Kit for Dummies (Wiley, 2001). "The first thing you are selling is yourself. If they don't like you, the sale is not going to happen." Allis makes a point of sending personalized emails to buyers rather than a standardized message. She also devotes plenty of face time to customers by hosting trunk shows and working the counter at her Brooklyn storefront.
Stay on the radar. Once you've established rapport with customers, find ways to stay top-of-mind with them, such as through regular newsletters about your business. When Allis is running a sale or hosting events, she updates her blog, her website's events page and her company's Facebook page. "Facebook drives so much traffic to my site," she says.
Don't make assumptions. Too often, small-business owners sabotage their sales by assuming they know what customers need or are willing to pay, says Keith Rosen, author of Coaching Salespeople into Sales Champions (Wiley, 2008). Instead, try to ask customers as many questions as possible to learn what's driving their purchase and what criteria they're using to make their decision.
Establish a daily ritual. It's easy to neglect sales prospecting when you're wearing all the hats in your company. To avoid that pitfall, create a sales routine. That might mean reserving an hour each day for prospecting calls or setting a weekly goal of meeting at least 10 potential clients. "A defined daily routine is non-negotiable," says Rosen.
Showcase your success. Your website is often the first and only contact people will have with your company. Not only should it be clean and professional looking, but it also should help build credibility. Schwartz recommends including testimonials, along with case studies of clients you've worked with. "People love case studies," he says. "They're not buying talk, they are buying [your] actions."
Become an industry expert. Establishing yourself as a leader in your field will strengthen your sales pitch and attract new customers, Rosen says. You can write articles, start a blog or seek media exposure, all of which can build credibility and trust. Earlier this month, for example, Allis talked about jewelry trends on Martha Stewart Living Radio. "People want to see you as someone who understands the industry," Schwartz says.
Close a Whale of a Deal
So, you've landed a huge enterprise client. Here's how to close the deal without getting stuck in a legal maelstrom over the contract.
It's bound to happen. You close a handful of small deals with other start-ups and medium-sized customers who quickly sign your form contract. Now you've landed the "Whale"--a huge enterprise client. You send your form customer contract over to the Whale's legal team. The contract comes back to you, bleeding with red ink--or worse yet, the Whale insists on throwing out your contract and using "their paper." Is the deal in jeopardy?
Absolutely not. There are, however, a few things that you can do to help the deal close quickly and avoid getting stuck in the legal abyss.
Stay the Course.
The mere fact that the Whale's legal team does not like your form customer agreement should neither offend nor concern you. No matter how much time you spend with your counsel developing and improving your form customer contract, it is quite possible that a Whale's legal team is going to mark it up or tear it apart.
Why? Well, legal review at a large corporation is a lot more intense than at a start-up. There's a significantly lower tolerance for risk and a bigger appetite for using all available resources to minimize that risk to a ridiculously small level. There is also a great deal of internal pressure put on in-house counsel to justify their salaries. Those forces often result in very heavy-handed lawyering, like nit-picky revisions and demanding alternative language that has the exact same meaning as yours. If you accept this reality and temper your response accordingly, you can get your deals closed a lot more quickly.
Don't Drown in a Sea of Legal Details.
In closing these kinds of deals, it is critical that you and your legal counsel stay focused and avoid the temptation to battle over form documents and obscure legal points. A good start-up attorney has a lot of experience in crafting commercial contracts and closing enterprise deals--but they also bring a practical business perspective to the transaction. They know that getting the deal done is the primary goal. They strive to be flexible and help you properly understand both risk and leverage.
In an ideal world--yes--I want mutual indemnification, jurisdiction in our home state and full ownership of every piece of data that flows through our platform. In closing a deal with a multi-billion dollar Whale, however, I can be flexible. I'll settle for one-way indemnification that is less onerous on my client, jurisdiction in the Whale's home state, and a perpetual license to use the subset of data that we'll actually need.
Stay focused on the contract points that are truly important, like ensuring that you own the intellectual property underlying your application, creating certainty around payment terms, and confirming that all deliverables match the parties' expectations.
You also need to recognize that the Whale most likely has all of the leverage here. Your deal for beta integration is a small sea shell in the Whale's ocean. There are some deal points that will be "take it or leave it" for the Whale. If you can live with these points, then accept them and move on. Get this deal closed so that you can bring indispensable value to the Whale and create leverage of your own.
Triangulate. Triangulate. Triangulate.
The Whale is a large organism. You need to make sure that its various body parts are keeping the deal on track. The Whale's legal team is probably not calling the shots--but it can really bog down the process. If it seems like the Whale's lawyers are over-zealous, stubborn, or don't understand the technology, then you need to reach out to your contacts on the business side. Encourage them to help push the deal through and restrain their attorneys. Perhaps send a product description to help get their legal team up to speed, or arrange for an all-hands call so that the Whale's lawyers are pressured by the full deal team to be more reasonable. You'll be amazed at how cooperative the Whale's legal team can be when given a directive from the business principals to get the deal done.
It's bound to happen. You close a handful of small deals with other start-ups and medium-sized customers who quickly sign your form contract. Now you've landed the "Whale"--a huge enterprise client. You send your form customer contract over to the Whale's legal team. The contract comes back to you, bleeding with red ink--or worse yet, the Whale insists on throwing out your contract and using "their paper." Is the deal in jeopardy?
Absolutely not. There are, however, a few things that you can do to help the deal close quickly and avoid getting stuck in the legal abyss.
Stay the Course.
The mere fact that the Whale's legal team does not like your form customer agreement should neither offend nor concern you. No matter how much time you spend with your counsel developing and improving your form customer contract, it is quite possible that a Whale's legal team is going to mark it up or tear it apart.
Why? Well, legal review at a large corporation is a lot more intense than at a start-up. There's a significantly lower tolerance for risk and a bigger appetite for using all available resources to minimize that risk to a ridiculously small level. There is also a great deal of internal pressure put on in-house counsel to justify their salaries. Those forces often result in very heavy-handed lawyering, like nit-picky revisions and demanding alternative language that has the exact same meaning as yours. If you accept this reality and temper your response accordingly, you can get your deals closed a lot more quickly.
Don't Drown in a Sea of Legal Details.
In closing these kinds of deals, it is critical that you and your legal counsel stay focused and avoid the temptation to battle over form documents and obscure legal points. A good start-up attorney has a lot of experience in crafting commercial contracts and closing enterprise deals--but they also bring a practical business perspective to the transaction. They know that getting the deal done is the primary goal. They strive to be flexible and help you properly understand both risk and leverage.
In an ideal world--yes--I want mutual indemnification, jurisdiction in our home state and full ownership of every piece of data that flows through our platform. In closing a deal with a multi-billion dollar Whale, however, I can be flexible. I'll settle for one-way indemnification that is less onerous on my client, jurisdiction in the Whale's home state, and a perpetual license to use the subset of data that we'll actually need.
Stay focused on the contract points that are truly important, like ensuring that you own the intellectual property underlying your application, creating certainty around payment terms, and confirming that all deliverables match the parties' expectations.
You also need to recognize that the Whale most likely has all of the leverage here. Your deal for beta integration is a small sea shell in the Whale's ocean. There are some deal points that will be "take it or leave it" for the Whale. If you can live with these points, then accept them and move on. Get this deal closed so that you can bring indispensable value to the Whale and create leverage of your own.
Triangulate. Triangulate. Triangulate.
The Whale is a large organism. You need to make sure that its various body parts are keeping the deal on track. The Whale's legal team is probably not calling the shots--but it can really bog down the process. If it seems like the Whale's lawyers are over-zealous, stubborn, or don't understand the technology, then you need to reach out to your contacts on the business side. Encourage them to help push the deal through and restrain their attorneys. Perhaps send a product description to help get their legal team up to speed, or arrange for an all-hands call so that the Whale's lawyers are pressured by the full deal team to be more reasonable. You'll be amazed at how cooperative the Whale's legal team can be when given a directive from the business principals to get the deal done.
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